QUESTION 3
Segmentation, Target and Position process would enable Uniqlo to identify who will be their potential consumers to target at and where Uniqlo stands in Vietnam clothing market.
Segmentation
Doole & Lowe (2012, p.104) stated that market segmentation helps “identify the markets on which a company can concentrate its resources and efforts so that they can achieve maximum penetration of that market”. Market segmentation divides customers having similar behaviours and needs into smaller groups (Wood, 2013). Segmentation of Uniqo will be based mainly on demographic, geographic and psychographic variables.
• Demographic segmentation:
Based on Schiffman, Kanuk & Hansen (2012), demographics variables are common and easily identified consumer …show more content…
[Online] Available from: http://marketingmix.co.uk/. [Accessed: 18th November 2015]
Product:
Based on Ghauri & Cateora (2010), quality products are ones which satisfy customers’ needs, have competitive price and minimize defects.
Uniqlo should globalize their products in Vietnam with their current product categories, it is not necessary to localize products. Vietnamese consumers prefer shopping international products in an international style, “many urban Vietnamese consumers showed a strong preference for foreign products, and generally did not much appreciate the local ones” (Nguyen & Smith, 2012, p. 57). Specifically, Uniqlo should focus on Heattech and Ultralight product lines in Northern Vietnam market in the winter and light cotton clothing lines for the whole Vietnam market throughout the year.
Price:
Price is confirmed by Doyle & Stern (2006) to be the key in company’s profitability in short and long term.
Price strategy Uniqlo should follow is target costs. It is an effective price setting approach used by Japanese firms. Firms consider the costs they have to achieve in advance to make sure the price provides them a dominance in the market (Búrca, Fletcher & Brown, …show more content…
At that price, targeted Vietnamese consumers are more willing to buy Uniqlo products for higher quality compared to domestic brands and lower price compared to other foreign brands.
Place:
Perreault, Cannon & McCarthy (2010) regarded place as offering right products from producer to final customer through distribution channels. These channels need to remove physical obstacles between consumers and providers (Zikmund & Babin, 2010).
Two potential distribution channels for Uniqlo are: in-store shopping and on-line shopping. Two big retail stores should be opened in downtown areas in Hanoi and HCMC. These stores should not be in shopping malls because it is difficult to differentiate themselves from other brands, this problems had happened in USA before (Forbes, 2015). Good online shopping service enables consumers who are not in Hanoi or HCMC to purchase Uniqlo products easily.
Promotion:
Stated by Peter & Olson (2010), promotions are developed by marketers for communication about products to persuade customers to purchase. Promotion mix for Uniqlo
Segmentation, Target and Position process would enable Uniqlo to identify who will be their potential consumers to target at and where Uniqlo stands in Vietnam clothing market.
Segmentation
Doole & Lowe (2012, p.104) stated that market segmentation helps “identify the markets on which a company can concentrate its resources and efforts so that they can achieve maximum penetration of that market”. Market segmentation divides customers having similar behaviours and needs into smaller groups (Wood, 2013). Segmentation of Uniqo will be based mainly on demographic, geographic and psychographic variables.
• Demographic segmentation:
Based on Schiffman, Kanuk & Hansen (2012), demographics variables are common and easily identified consumer …show more content…
[Online] Available from: http://marketingmix.co.uk/. [Accessed: 18th November 2015]
Product:
Based on Ghauri & Cateora (2010), quality products are ones which satisfy customers’ needs, have competitive price and minimize defects.
Uniqlo should globalize their products in Vietnam with their current product categories, it is not necessary to localize products. Vietnamese consumers prefer shopping international products in an international style, “many urban Vietnamese consumers showed a strong preference for foreign products, and generally did not much appreciate the local ones” (Nguyen & Smith, 2012, p. 57). Specifically, Uniqlo should focus on Heattech and Ultralight product lines in Northern Vietnam market in the winter and light cotton clothing lines for the whole Vietnam market throughout the year.
Price:
Price is confirmed by Doyle & Stern (2006) to be the key in company’s profitability in short and long term.
Price strategy Uniqlo should follow is target costs. It is an effective price setting approach used by Japanese firms. Firms consider the costs they have to achieve in advance to make sure the price provides them a dominance in the market (Búrca, Fletcher & Brown, …show more content…
At that price, targeted Vietnamese consumers are more willing to buy Uniqlo products for higher quality compared to domestic brands and lower price compared to other foreign brands.
Place:
Perreault, Cannon & McCarthy (2010) regarded place as offering right products from producer to final customer through distribution channels. These channels need to remove physical obstacles between consumers and providers (Zikmund & Babin, 2010).
Two potential distribution channels for Uniqlo are: in-store shopping and on-line shopping. Two big retail stores should be opened in downtown areas in Hanoi and HCMC. These stores should not be in shopping malls because it is difficult to differentiate themselves from other brands, this problems had happened in USA before (Forbes, 2015). Good online shopping service enables consumers who are not in Hanoi or HCMC to purchase Uniqlo products easily.
Promotion:
Stated by Peter & Olson (2010), promotions are developed by marketers for communication about products to persuade customers to purchase. Promotion mix for Uniqlo