Subject Code: MKTG10001 Subject Name: Principles of Marketing

Student ID Number: 376308 Student Name: Stella Senajaya Tanaja

Tutorial Day/Time: Monday 11:00am Tutor Name: Dan Waters

Assignment Name or Number: Assignment 1 Article Response

Many companies are plummeting down their business due to stagnant economic condition

and worldwide recession. However, this problem was tackled smoothly in the case study of

Uniqlo- Japan’s leading apparel retailer. This essay would identify one of Uniqlo’s marketing

strategies, how Uniqlo implementing this particular marketing strategy in terms of Price, Product,

Place, and Promotions and its impact on the business.

One of the marketing strategies that is being implemented by Uniqlo is customer

orientation. Customer orientation defined as focusing on customer’s perspectives when designing

the marketing strategies to achieve both customer satisfaction and loyalty (Kotler, 2010). The

company needs to put its view and perspective in customer shoes and question themselves

hypothetically of how the customers will approach a certain problem, thus better understanding of

the possible solutions (Sharpe, 1996). Soon we would learn how this behavior helps Uniqlo to

boost in markets.

Fast Retailing-Uniqlo’s head company had successfully earned its success especially

throughout Asia. It mostly sells basic item with a touch of style that is essential in every wardrobe.

Uniqlo officially starts its expansion by opening flagship in prime urban areas of countries like

China, Singapore, Hong Kong, Taiwan, and even countries outside Asian continent like US, UK,

France, and Russia (Fast Retailing, 2012). Furthermore, Uniqlo first seized this opportunity of

being customer oriented towards the market during 1990 when Nikkei 225 stock index fell and the

brand successfully stood up as a ‘symbol’ for Japanese cheap apparel due to its reasonable price

and outstanding quality (The Economic Times, 2012).

Firstly, Uniqlo point out the priorities of cheap pricing for its product to attract the market.

Worldwide recession has impact greatly on decreasing customer purchase power, thus resulted

in customer preference shifting from high priced luxury brand to cheap goods with high quality

that is affordable to wider range of customer (The Economic times, 2012). Here Uniqlo has

implemented its position in customer’s perspective and successfully capture customer interest by

providing their staple clothing needs.

Besides the price, Uniqlo also implement customer orientation strategy in terms of their

products. Uniqlo received approximately 70,000 customer feedback annually and refined them to

come up with new innovative ideas such as HEATTECH (Fast retailing, 2012). HEATTECH is a

collaboration between Uniqlo and Toray industries that is producing innerwear product with heat

retention, anti-perspiration function that is smooth, soft, thin and comfortable (UNIQLO,2012).

This product is highly in demand and thus brings up Uniqlo popularity even more in markets.

Moreover, Uniqlo being highly innovative came up with another new product for Spring 2012

namely an ‘ultra-functional weatherproof’. It is a zip-up weatherproof jacket and parkas in bright

colors that is highly functional (UNIQLO, 2012). Uniqlo being a customer oriented wants to

prioritize their product’s functionality to satisfy customer needs.

Thirdly, Uniqlo opening their flagship stores in 14 countries that is mostly located in high

street and central district for their customer convenience and easy access. Here we can deduce

that Uniqlo is being customer oriented in terms of choosing the ‘Place’(Fast Retailing, 2012).

Lastly, Uniqlo being customer oriented in terms of promotions had shifted its customer

services to more of international basis. Uniqlo’s varies their workforce to foreigners that is able to

speak in several languages and use English as their official language in order to handle and

communicate with their international customer effectively (Cheng, H.N, 2012).

Without doubt Uniqlo are having risks of competition with other clothing retailers such as

Inditex, GAP,and H&M. However, Uniqlo being customer oriented is able to tackle this problem

by choosing to focus on basic necessities clothing that is believed to give benefit of wider

exposure of customers compared with fashion-based apparel that keeps changing its style from

time to time (The Economist, 2010).

Customer orientation would bring about positive outcomes for Uniqlo’s business

performance such as increasing product sales, created customer value and customer loyalty.

According to The Economist (2010), sales gradually grew by 17% from the previous year despite

of the recession. Uniqlo’s annual sales are far lesser when it’s compared with the competitors

sales such as Zara, H&M, and GAP. However it’s has a denser volume deal with better operating

profit and thus higher annual sales growth (The Economist, 2010)

In addition, Customer orientation is highly correlated with other marketing aspects such

as market oriented. Customer oriented behavior alone wouldn’t be enough to flourish one’s

business. According to Wiley (2003), company that is focusing solely on customer is stuck in the

development of the new product. Thus it is suggested that one’s company need to implement

other marketing orientation such as market oriented behavior to keep it up to date with the market

and technology (Wiley, 2003). Here we can deduce that customer orientation with market

orientation works well together and need to be implemented at the same time.

In conclusion, marketing orientation such as customer orientation is one of the major key

aspects in one’s business. Better understanding for customer needs in terms of 4Ps (price,

product, place, promotions) would bring about customer value and loyalties. It is also believed

that implementing customer orientation with market orientation at the same time would benefit

one’s company in new innovation and hence successful business.

REFERENCES:

Cheng, H.N. (2012). Japan’s Richest Man Remakes Once-Drab Uniqlo in Manhattan’s Image: Retail. Available: http://www.bloomberg.com/news/2012-03-08/japan-s-richest-man-remakes-once-drab-uniqlo-in-manhattan-s-image-retail.html. Last accessed 25 March 2012.

Fast Retailing. (2012). UNIQLO Business Strategy. Available: http://www.fastretailing.com/eng/group/strategy/tactics.html. Last accessed 23rd March 2012.

Kotler, P et al. (2010). Marketing. 8th ed. NSW: Pearson Australia.

Sharpe, M.E, Inc.. (1996). Customer Orientation. International Journal of Electronic Commerce . Vols. 1-11 (1), p95-118.

The Economic Times. (2012). Cheap chic brand Uniqdlo booms in deflationary Japan. Available: http://economictimes.indiatimes.com/news/international-business/cheap-chic-brand-uniqlo-booms-in-deflationary-japan/articleshow/12321120.cms. Last accessed 23th March 2012.

The Economist. (2010). Uniquely positioned. Available: http://www.economist.com/node/16436304. Last accessed 22 March 2012. UNIQLO. (2012). The UNIQLO INNOVATION PROJECT. Available: http://www.uniqlo.com/uk/corp/pressrelease/2012/01/the_uniqlo_innovation_project.html. Last accessed 25 March 2012.

Wiley, J. (2003). The Enactment of Customer Orientation. Strategic Management Journal. 24 (1), p559 - 576.