FACULTY OF BUSINESS AND MANAGEMENT

BA242 – BACHELOR OF BUSINESS ADMINISTRATION (HONS.) FINANCE

MKT420 – PRINCIPLES AND PRACTICES OF MARKETING

GROUP ASSIGNMENT 1:
CASE STUDY ON UNIQLO’S MARKET SEGMENTATION, TARGETING, AND
POSITIONING TO MARKET ITS PRODUCT AND SERVICES

PREPARED BY:

NO. STUDENT NAME STUDENT ID

1 MARRIAM BINTI MOHD SHARIFF 2022498638
2 FARAH ANISAH BINTI SUHAIMI 2022616594
3 NUR HAZIRAH FAQIHAH BINTI MOHD FADLI 2022485038
4 ALLYSHA BINTI SAFWAN K. RAJA 2022491272
5 MUHAMMAD DANIAL BIN ZAIFUL AZMAN 2022842242
6 MUHAMMAD FAIZ BIN MOHAMAD JUHARI 2022604148

PREPARED FOR:
MADAM NANI ILYANA BINTI SHAFIE

DATE OF SUBMISSION:
15th DECEMBER 2022
Table of Contents
INTRODUCTION....................................................................................................................1
MAIN CONTENT:...................................................................................................................3
a). Market segmentation (Identify which market segmentation the company focuses on
to market their products or services) .....................................................................................3
b). Market targeting(Identify what market targeting the company focuses on to market
its product or services).............................................................................................................7
c). Positioning (Identify what market positioning the company has done to market their
products or services) ..............................................................................................................12
d). Conclusion and Recommendation ..................................................................................14
REFERENCE .........................................................................................................................15
INTRODUCTION
UNIQLO is a global clothing retailer that was originally founded in Yamaguchi, Japan in
1949 known for creating long-lasting clothing. It has become a global brand with over 1000
stores worldwide. Redefining clothing, with an unwavering focus on quality and textiles since
the company's inception in 1949. Season after season, trend cycle after trend cycle, the
uncomplicated, basics-inspired clothing produced at UNIQLO remains popular. UNIQLO was
founded on a novel business model known as the SPA manufacturer retailer model. A company
controls the entire process of clothing retail product planning and production, as well as
distribution and marketing, under this model. Fast Retailing, based in Japan, owns UNIQLO.
Hirano are two of the company's brand ambassadors, wearing UNIQLO in both daily life and
competition. UNIQLO’s clothing is referred to as LifeWear. LifeWear is inspired by the most
classic clothing designs to provide apparel that truly lasts from the initial purchase to a lifetime
of wear. It is not intended to be thrown away or passed down; rather, it is intended to serve as
affordable, high-quality clothing that can be purchased and worn for many years. Its basics,
such as Supima cotton t-shirts and Ezy Jeans, are affordable, well-made pieces that are simple
staples that anyone can add to their wardrobe. Not only does UNIQLO produce basics like this,
but it also collaborates with companies like Theory to produce high fashion collaborations that
are always on the cutting edge of all things fashion and apparel.
LifeWear is the name given to UNIQLO's clothing. LifeWear is inspired by the most iconic
clothing designs to provide apparel that lasts from the beginning of purchase to an entire
lifetime of wear. It isn’t made to be tossed out or passed along, it's meant to serve as affordable,
quality clothing that can be purchased and worn for years to come. Its basics, like the Supima
cotton t-shirts and Ezy Jeans, are affordable, well-made pieces that are simple staples anyone
can add to their wardrobe. Not only does UNIQLO make basics like this, it partners with
companies like Theory to put out high fashion collaborations that are always on the cutting
edge of all things fashion and apparel. The brand ambassadors at UNIQLO are some of the
world’s most fashionable athletes and icons. Tennis legend Roger Federer and champion
snowboarder and skateboarder Ayumu Hirano are two of the company’s brand ambassadors,
sporting UNIQLO in both daily life and competition. CEO Tadashi Yanai leads UNIQLO in
its vision of providing simple, lifelong basics. In his CEO message, Yanai says that UNIQLO
strives to “bring customers the most joy” from its products. UNIQLO’s business model allows
for major savings that are shared with the consumer, making for basics that are both affordable

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and high quality. LifeWear doesn’t need the flash or trendiness of other clothing brands. It’s
successful because it’s simple.
Some of the world's most fashionable athletes and icons serve as UNIQLO brand ambassadors.
Two of the company's brand ambassadors are tennis legend Roger Federer and Olympic
champion snowboarder and skateboarder Ayumu Hirano, who both wear UNIQLO in both
casual settings and during competition. Tadashi Yanai, CEO of UNIQLO, is driving the
company's vision of providing simple, lifelong basics. Yanai states in his CEO message that
UNIQLO strives to "bring customers the most joy" through its products. UNIQLO's business
model enables significant cost savings that are passed on to their consumers, resulting in basics
that are both affordable and of high quality. LifeWear does not require the flash or trendy
appearance of other clothing brands. It is successful because it is simple and convenient.

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MAIN CONTENT:

a). Market segmentation (Identify which market segmentation the company focuses on to
market their products or services)
When attempting to reach consumers through promotional messages or advertising campaigns,
it is essential to target the appropriate market with the appropriate message. Aiming too broadly
increases the likelihood that message will reach both a sizable audience of people who are not
interested in products or services and a small audience of people who will become customers.
If the advertising is not really targeted to the audience, it will lead to high costs. Utilizing
market segmentation can assist in focusing advertising efforts on the individuals who are most
likely to become loyal clients or voracious readers of the content. A market is segmented when
it is divided into groups based on shared traits. A segment may be built around a single quality
or several. This audience segmentation technique enables more precise targeted marketing and
personalized content.
An organization's target market is the demographic of customers it wants to sell its goods and
services. The target market can be divided into geographic, demographic, psychographic, and
behavioral segments. Segmenting a market is what is meant by market segmentation. To begin,
geographic segmentation is the process of breaking down a market into different geographical
units such as locations, nations, states, municipalities, cities, or communities. In demographic
segmentation, the market is divided into groups based on variables like gender, age, and family
size. Next, the segmentation known as psychographic segmentation is based on psychological
or personality traits, a way of life, or values. Behavioral segmentation divides consumers into
groups focused on their familiarity with attitude toward and response to the product, a lot of
market information, consumer behavior, and customer decision-making trends are used in
behavioral segmentation. Based on their prior interactions with markets and products, this
method categorizes consumers. This strategy makes the assumption that consumers' past
spending patterns predict what they will likely buy in the long term, even though spending
patterns can shift in time or within reaction to external factors.
Both genders and all age groups are targeted by segmentation based on demographics. Uniqlo
has proposed two types of target audience which is primary and secondary. Primary target
audience focused on people who are 18 to 24 years old and for primary people who are 25 and
above. Both target audiences use the same approaches male and female regarding all races and
stay in urban areas. Income ranges for primary are for people with low or middle incomes who
are the most likely to be targeted are searching for reasonably priced, high-quality clothing that

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fits their lifestyles are the target market for Uniqlo. It caters to those looking for trendy clothes
that are casual and laid back. Clothing from Uniqlo is available to people of all income levels.
Good quality and low cost indicate good value for customers. All consumers are seeking high-
quality clothing that is still within their budgets, so this strategy has expanded the target market.

Furthermore, Uniqlo offers psychographic segmentation. Psychographic segmentation

variables include customer perception, learning, personality, and lifestyle. Customers believe
that Uniqlo's product prices are reasonable and that the product quality is excellent. The
customers who buy Uniqlo products have heard about the company from friends and family,
according to Uniqlo, which is another thing the company has discovered. The company has
learned about Uniqlo through social media and promotional events. In addition, Uniqlo sells
its goods to consumers who are young, fashionable, and trendy. It indicates that Uniqlo
segmented the market based on the character of its customers. Customers' lifestyles are also
segmented by Uniqlo, with the customer group preferring easy-going and free style dressing
patterns. The target market for UNIQLO includes both male and female customers who are
between the ages of 15 and 40 and are seeking stylish, well-made clothing that fits into their
budgets. UNIQLO targets customers from all walks of life and from any country, according to
demographic segmentation, making it a one-stop shop for clothing products nearby wherever
they are.
The three main elements of Uniqlo's strategy to maintain differentiation are simplicity, quality
and signature innovations. For simplicity, Their variety of fundamentals is their primary
differentiator from rivals. UNIQLO provides a wide range of essentials while still keeping
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them fashionable by offering a variety of shades (Fast Retailing, 2017). This important feature
can be found throughout their store, where clothes are organized by color. Customers can now
navigate the store more easily, especially if they're looking for a particular color. The way
UNIQLO has built its customer base is unlike any other fast fashion retailer. In quality, this is
demonstrated by the high-quality products they provide, such as SUPIMA Cotton, the world's
finest cotton that they are the first fast-fashion retailer to offer (Larke, 2015). SUPIMA cotton
seems to be twice as fine as regular cotton and feels softer. Additionally, it can absorb dye
more effectively than other types of cotton, resulting in a wider range of products and a longer
shelf life.
Uniqlo also employs geographic segmentation, which divides the market into different
regions. They offer HEATTECH products that are suitable for cold and frozen climates, such
as those found in countries that experience winter. Customers can stay warm and comfortable
by wearing HEATTECH clothing. In addition, the AIRism products, which Uniqlo also sells,
are appropriate for hot and warm climates, which include countries with summers. The AIRism
clothing is completely permeable, allowing the wearer to feel cool and comfortable. The
AIRism fabric can help the body release heat quickly and stay cool.
Signature innovations The AIRISM and HEATTECH series are included. The CUPRO line,
part of the AIRISM line, is made from a cutting-edge fabric that is suited for warm
environments like those found in Malaysia (Larke, 2015). This fabric allows moisture to be
absorbed and released, keeping the body cool and the clothes dry. Currently, they only offer
undergarments, but they are gradually introducing this innovation into other garments as well.
For instance, they also use the same technology in their stretch pants, which have proven to be
quite popular. The AIRISM series has a consumer approval rating of 98.7%. (Fast Retailing,
2017). Their most well-known series is the HEATTECH, which has resulted in a significant
increase in sales as well as recognition. Leggings, tights, and jeans are all part of this line,
which also includes undergarments. They are capable of having their products absorb while
still feeling soft to the touch by carefully selecting hollow fibers and milk protein. This is
appropriate for cold climates because it keeps a person 100 times warmer than regular cotton
does (Fast Retailing, 2017). Three different versions—original, extra warm, and ultra warm—
are available. They actively market this line because it has significantly increased their sales
(Takada & Huang, 2017).

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Uniqlo implements three types of consumer market segmentation geographic, demographic
and psychographic that give consumers more chances to establish enduring relationships with
businesses thanks to marketing segmentation. Customers may respond favorably to more
direct, personable marketing strategies that encourage a sense of acceptance, community, and
belonging. Additionally, market segmentation raises the likelihood that you'll find the right
customer who meets your line of products and culture. Consumers in any market have different
desires, resources, locations, and purchasing habits. With the help of market segmentation,
businesses can determine and create various strategies to better meet the needs of the consumer
profile with products and services that are tailored to their needs.

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b). Market targeting(Identify what market targeting the company focuses on to market
its product or services)
i). Undifferentiated marketing
The UNIQLO brand is one of Asia's fastest-growing clothing companies. With a presence in
nearly all major cities worldwide, the brand has quickly established itself as a famous
manufacturer of high-quality clothing that promotes a comfortable and stylish lifestyle.
Through an undifferentiated marketing strategy, also known as a mass marketing strategy,
Uniqlo was able to achieve the commercial success it had. At UNIQLO, we believe clothes
should be accessible to all people, and we strive to achieve this.
“We don’t chase trends. People mistakenly say that UNIQLO is a fast-fashion brand. We’re
not. We are about clothing that’s made for everyone.” - CEO Tadashi Yanai (Christine,2022)
The designs of this brand may appear plain, even bland, at first glance, but this is simply a
marketing strategy used by the company to attract its target audiences. UNIQLO intentionally
creates non-trendy clothing and is proud of it. Unlike Zara, which imitates runway fashion, this
Japanese company promotes clothing "for everyone." Their stores sell the same clothes, and
their T-shirts do not have prints of "cool" images on them. However, Uniqlo profits
handsomely from this strategy. It is a result of the fact that it appeals to people who don't know
about current fashion trends and do not want to spend hours shopping for clothes. While other
brands are racing to keep up with the latest fashion trends, UNIQLO's strategy has always been
to invest in product development - leveraging technology and advanced materials - even if it
means long iteration cycles. The company views its brand as all-inclusive, with a clear purpose
of creating new and innovative clothing that is affordable to all.

The graph above shows UNIQLO brand mentions over time in the last 6 months of year 2022.

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ii). Differentiated marketing
UNIQLO also markets its products or services through differentiated targeting. Uniqlo caters
to three major segments of customers: women, men, and children and babies. As an
international retailer, Uniqlo consists of five sub-brands, each with its unique style, but housed
within the same Uniqlo store, where Uniqlo displays all of its various collections under one
roof and allows customers to browse them:
1) Outerwear
The outerwear collection at Uniqlo includes jackets, coats, hoodies, and parkas for different
climates and occasions, as well as the famous Ultra-Light Down jacket, which is ultra-
lightweight, comfortable, and warm at the same time.

2) Tops
This category contains a wide range of functional and comfortable women's dresses, shirts,
wrinkle-resistant blouses, t-shirts, and UT (Graphic t-shirts). It includes men's formal and
casual shirts in various fits, t-shirts, UT, sweaters, cardigans, and flannel. It also offers polo t-
shirts in two materials: AIRism and Dry Ex (extra breathable mesh in a seamless construction).

3) Bottoms
This category for women includes shorts and skirts for every occasion, jeans in different cuts,
leggings (including maternity leggings), ankle pants, casual pants, and lounge bottoms. Men's
category includes shorts, jeans, ankle pants, casual pants, lounge bottoms, and the Kando pants,
a breathable, lightweight, stretchable, and quick-drying material with Airdot pockets.

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 4) Inner-wear
Uniqlo's innerwear had designed with comfort in mind. It includes bras, bra tops, inner tops,
shapewear, shorts and underwear, socks and legwear, and HeatTech for women (Regular, Extra
Warm, and Ultra Warm). As for men, it includes inner tops, trunks, boxer briefs and briefs,
socks and legwear, and HeatTech.

5) Home wear and accessories

Uniqlo's homeware and accessories category includes pajamas, lounge pants, drape pants,
room shoes, bed sheets, gloves, hats, caps, scarves, sunglasses, bags, towels, blankets, and the
company's most recent addition, AIRISM face masks.

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iii). Concentrated marketing
UNIQLO occupies a unique niche in the fast fashion industry by emphasizing high-quality
basics via technical clothing such as its HeatTech thermal wear line and AIRism (a stretchy
cooling fabric). Tadashi Yanai's quote, "UNIQLO is not a fashion company; it is a technology
company," appears frequently. And this applies to every new product of UNIQLO. UNIQLO's
unique selling point is its use of technology at all levels, from manufacturing to supply chain
to in-store experience to final consumers. Uniqlo has developed innovative fabrics such as
HeatTech, which keeps people warm and AIRism clothes, which are breathable and soft. It
also has UV Protection, which prevents UV rays from penetrating the skin. LifeWear is on a
mission to reimagine comfort and casual wear. Branding these innovations gives the fashion
retailer a competitive advantage. Each Uniqlo store features a digital customer in mind. The
store is an experiential zone where customers can explore and learn about the technology used
to make fabrics. The large LED screens, inviting interiors, bright lighting, and friendly store
managers combine to create a holistic and immersive customer experience that will keep you
coming back for more! The company has used digital marketing to engage with customers
through campaigns and has heavily invested in E-commerce. Uniqlo hopes to expand its target
market and increase more people on its website through these digital efforts.

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c). Positioning (Identify what market positioning the company has done to market their
products or services)
The main aspect secerning Uniqlo from brands like H&M and Zara is its business model.
Uniqlo isn't a fast fashion retailer, it does not follow the rearmost trends and does not offer a
wide selection of fast-changing products. Even though fast fashion promises profitable returns,
it also will bring bad effects not only towards the brand itself but also the environment and will
affect Uniqlo's good image.
Uniqlo's price positioning is unique, with a 28-multifariousness emphasis on the under $10
price type. That forcefully puts its focus on value – strikingly different to Zara which dominates
the $20-$40 intervals. Just 10 of its men’s and women’s multifariousness is priced over $50 at
Uniqlo, compared to 18 at fashion-driven Zara. H&M also focuses on value but places lower
emphasis on the veritably smallest price point.
Uniqlo has deposited itself as an ultramodern Japanese company and aims to inspire people to
dress casually. The brand has a “ made for all ” positioning strategy and is a brand that sells
vesture that's essential, and simple and helps wear and tear find their individualistic styles.
Principally, if people are looking to find good quality, trendy and affordable clothes, the
destination is Uniqlo.
Mission: “Unlocking the Power of Clothing”.With a focus on products, force chains, workers,
stores and communities, we will change the world for the better through our business.
Vision: OUR VISION. Uniqlo's vision is bold; to become the number 1 clothes retailer in the
world. They truly believe that this dream can be achieved by furnishing a stylish client service
experience on the high street.
Tagline: Simple made better
Quality > Quantity
One of the crucial secerning factors for Uniqlo is its focus on quality apparel. Unlike utmost
mass fashion brands which are trend-grounded and have shorter life cycles, the brand
specializes in season-evidence basics. While Zara tries to compress its vesture-making process
to churn products within a span of 2 weeks, Uniqlo plans its product a time in advance!
We don’t chase trends. People mistakenly say that Uniqlo is a fast-fashion brand. We’re not.
We are about clothing that’s made for everyone -CEO Tadashi Yanai explained.

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 d). Conclusion and Recommendation

The Japanese philosophy of simplicity and essentiality was the cornerstone of the Uniqlo
brand's conception, and it is evident in all aspects of the company's marketing,
communications, and business practices. One of the most outstanding firms from Japan and
Asia today, Uniqlo has managed to grow from a single inherited men's tailoring shop in Tokyo
into a global casual wear juggernaut. Fast Retailing, the parent company of Uniqlo, aims to
surpass all other fast fashion retailers in the globe under Tadashi Yanai's capable and forward-
thinking leadership.
One of the secrets of Uniqlo's success is its solid delivery system, which upholds a distinct
brand promise, also its unwavering dedication to innovation. By outlining its brand promise to
deliver premium, performance-enhanced, all-purpose, more basic casual wear at an affordable
price.
Last but not least, let's look at UNIQLO's sustainability efforts. Fast fashion is notorious for its
numerous scandals and sustainability concerns. UNIQLO needs sustainability and
responsibility to be ingrained in its DNA to differentiate itself from competitors. Back then,
we emphasized that UNIQLO should raise public awareness of its sustainability activities,
empower those who work for the company, and lessen its ecological footprint by introducing
innovative goods and raw materials.
For instance, UNIQLO has long maintained recycling and used clothing donation programs,
but sadly, these initiatives weren't very apparent on their website or in-store. Also ignored were
their corporate social responsibility initiatives. Increasingly conscious of social and
environmental issues, consumers. By encouraging its consumers to take part in recycling used
clothing programs, UNIQLO can somehow build a community that allows people to help each
other and discover the joy of donating and giving a new breath of new life to them. UNIQLO
should offer transparent information about its recycling reports by announcing how much
clothing was recycled annually so that people can be notified about the program.

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REFERENCE
1. Aditya Shastri (2021). Complete Marketing Strategy of Uniqlo. Retrieved September
13, 2021 from https://iide.co/case-studies/marketing-strategy-of-uniqlo/
2. Christine (2022). UNIQLO marketing strategy. Retrieved December 1, 2022 from
https://www.talkwalker.com/blog/uniqlo-marketing-strategy
3. Evan Tarver (2022). Market Segmentation. Retrieved November 21, 2022 from
https://www.investopedia.com/terms/m/marketsegmentation.asp
4. Hitesh Bhasin (2019). Marketing Strategy of Uniqlo – Uniqlo Marketing Strategy.
Retrieved November 26, 2022 from https://www.marketing91.com/marketing-
strategy-of-uniqlo/
5. Mher Darbiyan (2021). Target Market of Uniqlo. Retrieved December 19, 2021 from
https://thesocialgrabber.com/target-market-of-uniqlo/
6. Snotspill (2015). Principles of Marketing, Uniqlo. Retrieved November 26, 2022 from
https://www.platinumessays.com/essays/Principles-of-Marketing-Uniqlo/17348.html
7. UNIQLO (n.d). Our Story. Retrieved December 14, 2022 from
https://www.uniqlo.com/uk/en/info/about-uniqlo.html
8. Yamaguchi (n.d). Company profile. Retrieved December 14, 2022
from https://firsthand.co/company-profiles/retail/uniqlo-co

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 FACULTY OF BUSINESS AND MANAGEMENT
UNIVERSITI TEKNOLOGI MARA, MALAYSIA

CASE STUDY RUBRICS

Course Name: Principles and Practice of Marketing Course Code: MKT420 Lecturer’s Name: NANI ILYANA SHAFIE

Student’s Name & Student’s ID: Group: 2

1. MARRIAM BINTI MOHD SHARIFF (2022498638)
2. FARAH ANISAH BINTI SUHAIMI (2022616594)
3. NUR HAZIRAH FAQIHAH BINTI MOHD FADLI (2022485038)
4. ALLYSHA BINTI SAFWAN K. RAJA (2022491272)
5. MUHAMMAD DANIAL BIN ZAIFUL AZMAN (2022842242)
6. MUHAMMAD FAIZ BIN MOHAMAD JUHARI (2022604148)

Criteria Marks C P A Weighted Marks

Allocated Poor Moderate Satisfactory Good Excellent Obtained (%)

Introduction 10 0 - 2 marks 3 - 4 marks 5 - 6 marks 7 - 8 marks 9 - 10 marks

Unable to identify Able to slightly Able to Able to identify Able to identify
and understand identify and identify and and understand and understand
the issues in the understand the understand most of the all of the main
case study issues in the some of the issues in case issues in the
case study issues in the study case study
case study
Identification 25 0 - 5 marks 6 - 10 marks 11 - 15 marks 16 - 20 marks 21 - 25 marks
of market • No or poor • Moderate • Satisfactory • Good • Excellent
segmentation identification identification of identification of identification identification of
of market market market of market market segmentation.
segmentation. segmentation. segmentation. segmentation. • Key elements of
• Key elements of
• Key elements of market
• Key elements market segmentation
market segmentation are of market are excellently
segmentation are satisfactorily segmentation presented.
moderately presented well
presented presented.
Identification 25 0 - 5 marks 6 - 10 marks 11 - 15 marks 16 - 20 marks 21 - 25 marks
of market • No or poor • Moderate • Satisfactory • Good • Excellent
targeting identification identification of identification of identification identification of
of market market targeting. market targeting. of market market targeting.
• Key elements of • Key elements of
targeting. • Key elements of market targeting
targeting.
market targeting • Key elements market targeting are
are satisfactorily
are moderately of market excellently
presented
presented targeting well presented.
presented.
 Marks Weighted Marks
Criteria
Allocated
Poor Moderate Satisfactory Good Excellent C P A
Obtained (%)
Identification 25 0 - 5 marks 6 - 10 marks 11 - 15 marks 16 - 20 marks 21 - 25 marks
of market No or poor • Moderate • Satisfactory • Good • Excellent
positioning identification of identification of identification of identification identification of
market market market of market market positioning.
positioning. positioning. positioning. positioning. • Key elements of
• Key elements of
• Key elements of • Key elements market positioning
market
market positioning positioning are of market are excellently
are moderately satisfactorily positioning presented.
presented presented well
presented.
Provide 10 0 - 2 marks 3 - 4 marks 5 - 6 marks 7 - 8 marks 9 - 10 marks
suggestions Unclear Moderate suggestions Satisfactory Good Excellent suggestions
on suggestions and and conclusion suggestions and suggestions and and conclusion
appropriate conclusion conclusion conclusion
solutions and
conclusion

Writing style, 5 1 mark 2 marks 3 marks 4 marks 5 marks

spelling & The writing lacks Sentences were Sentences were Sentences were Sentences were well
grammar sentence variety somewhat varied, and correctly correctly written and expressed
and few some were constructed constructed and
grammatical errors inappropriate with well-articulated
minimal grammatical
errors

Total: 100 /100