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Transcript of Product Management
fast growth and international expansion
unique and innovative products
high quality at reasonable prices The tables below show an increment on the company's sales and operating income and an increase of the net assets of the Fast Retailing Group: Felipe BATISTA
Olivier MENART 1.Choose your own line of products
2.Internal Analysis of the company
Actual target and positioning Determine through analysis target market, behavior, and external factors:
Is the New market targeted favorable or not?
Is there a place for you?
Can there be any facility or opportunity to seize? Swot Analysis
Distribution For Whom:
Winter Strengths and Weaknesses Strong in Asia
Seen as Fresher than Zara, Gap, and H&M on the western market
Rapidly expanding worldwide
Good financial Health
Known as cheaper but higher quality than Gap, H&M, and Zara
Recognized as a modern brand
Simple Designs made to suit everyone Stores often over-crowded (at least the ones in Paris)
Collections are a bit messy and not the same in every country
Pretty weak on social media STRATEGIES SINCE THE BEGINNING ACTUAL TARGET We could segment Uniqlo's target into two categories:
18-24 year-old men and women students from urban areas - affordable brand / wide-range of good quality products
- want to look trendy and attractive.
25-35 year-old working men and women from urban areas
- top casual-wear / simple and high value for money clothes
- sensitive to trends and to quality POSITIONING SWOT Has to respect commercial and financial objectives.
Financial: optimizing volumes to increase gross net margins. Sell more at more competitive prices.
Commercial: increase market shares on the garment market.
Therefore, penetrating strategy : prices will be lower than those of the competition.
Respect the demand’s considerations : prices it is willing to pay. The study of the demand has shown us that the French woman is willing to buy more products, but at more affordable prices . Pricing strategy The competitors :
Actual Competitors: H&M, Gap, Zara
They propose shoes as a complement to their clothes collection, just like Uniqlo plans to do
The shoe retailers : same target, similar positioning
André : trendy, affordable prices, diversified collection
Aldo: fashionable, very large collection, variety of choice for an « authentic style ». Analysis of the future competition Directly Operated Stores : H&M, Uniqlo
Department stores : Galeries Lafayette, Printemps. Important considering their geographic proximity with Uniqlo’s store at Opera
Super Specialized Stores : different kinds exist for shoe retailing. They sell various brands.
ex : Courir, for sports shoes
Online distributors : Independant websites such as Sarenza, Zappos… The existing channels of distribution Final consumer constitutes the demand : the user is the buyer
Decrease of the purchasing power = Decrease of the demand on the French market
In 2010 : slight increase in the demand : +2,6%
France : most shoe consuming country in EU (5,5 pairs/woman/year in 2009)
Despite the harsh economic crisis, French women are active shoe consumers.
> The French market : appears like a coherent choice for the launching of the shoe collection The demand on the target market The target market : women winter shoes
Target consumer :
Uniqlo’s actual target : young and trendy urban woman, low budget, fashion-savvy
Looking for products which are of good value for money : low budget put into clothing The target market Lessons for Uniqlo Typology of the product offer on the French women winter shoes market:
Boots and booties : flat shoes, high heels or wedges.
Rain boots and booties. Most of the time flat models.
Flats. They include oxfords, ballerinas, loafers and moccasins.
Sneakers : leather and synthetic water resistant materials. Few models proposed in canvas, more characteristic of spring and summer collections.
Heels : mostly present in women shoe collections considering the Holiday time of year. High heal pumps, wedges shoes.
The offer on the French market is composed of
French manufactured shoes
Imported shoes, mainly Chinese manufactured (58%) Offer on the target market Purchasing Attitudes Urban women : often in a rush.
Need to find all at once as they are shopping.
Shopping for clothes and finding shoes in the same store : a time-saver ! French woman : high frequency of purchase
French customers : most shoe consuming customers in Europe : 5,5 pairs per year in 2009
Average price for the shoes purchased : 23,11€ (all women shoes considered)
French consumer : willing to buy more pairs of shoes, at low prices. USES AND BEHAVIORS Pricing definition Pricing definition Positioning Map : future competition We will consider the competition’s offer regarding the products Uniqlo intends to launch :
Flat boots and booties, rain boots and booties, open flat shoes (loafers and moccasins) and sneakers.
Here are examples of our competitors loafers and flat casual booties offer.
The same analysis is developed for all the products. The competitors’ offer Analysis of the target market Note: Competitors change according to the products considered The selling prices for the shoe collection are defined by the competion’s price for the same products, which constitute the market prices.
Pricing methodology :
Penetrating pricing strategy, so the prices will be 10% less than the market prices to remain coherent with Uniqlo’s objectives and actual pricing strategy.
Selling prices &
Retailers prices Product Strategy Line and Range Quality Simple designs
Continue the no-logo trend
Heattech flats will have the same packaging as the warmers, bag with heattech logo and aluminum-like insde and transparent front. Design and Packaging Lower prices.
Basic, simple, comfortable shoes for winter.
Wide variety of colors per model. Differentiation Innovation Flexible return policy
Qualified sales personnel to give the customers what they need Service Keep in mind their input for quality
Follow their SPA model
Owning the materials and working with outsourced companies they already have close relations with Shoes will have the Heattech lining.
The models proposed will integrate their warming technologies and a wide variety of colors New Product Addition of shoes to their winter collection.
In order to keep up with the competition and continue their global expansion they should diversify by adding shoes to their portfolio Traffic Builder Oil-cotton Canvas Loafers:
-Trendy product which with an attractive price will attract customers and make them want to discover the other products of the collection Leader Product Tennis Shoes:
-Oil Canvas and synthetic materials, they will be in a wide array of colors.
-not very present in the competitors' collections for winter Uniqlo will keep its distribution strategy:
Covering strategy : Exclusive distribution
Shoes will be sold in the 3 Directly Operated Stores in Paris.
Being such and innovative an modern brand, we propose that they launch the online shopping feature to their French website, together with the shoe collection’s launch.
Growing strategy : could open more DOS in other main French cities. Distribution From the analysis of our competitors, some lessons appear clearly to Uniqlo to manage the competition and differentiate.
Materials used : leather and synthetic used for winter collection. Little cotton canvas and rubber.
Innovative materials for basic shoes : a means to differentiate.
Prices : More fashionable brands seem to be more pricy : Zara, Aldo, André. Basic products could be sold at a more affordable price.
Models’ style :
Few models of rain boots and booties. Declining them in many colors (Uniqlo’s identity) will be a competitive advantage.
Few colored winter shoes
Models declinations : our competitors mostly have large collections. Many models proposed, but few declinations.
Uniqlo will propose fewer models but declined into many materials/colors: enable the customer to make his own style. After defining the market prices for every product Uniqlo will propose, definition of the Selling Prices :
Traffic builder: -25%
Leader Uniqlo's positioning : innovative shoes, basic but trendy and colorful Based on SPA Model
UNIQLO Inside Development
Manufactoring process planning
Outsourced in China’s partners factories
Supervision by UNIQLO specialists team Barries to Entry
Asian countries seeking DFI
No specific regulation
WTO sets the rules for the industry global trade
Subjected to local laws
Lower in eatern asian countries
7.3% of profit margin overall
Level of Capital and Labor
Mix of manual and machinery Sector Conditions to Production and UNIQLO Process Economic
5th larger economy of the world
High purchasing power parity
Increasing inflation rate – 2.3%
China as an important commercial partner
Strong in high technology
Excellence in textile machinery
Member of major organizations – WTO, EU, UM
Actively political groups of interest - CGT Demographics
Highly urban population
Four regions with more than 1 million habitants
63.% of population between 15-64 years old
Paris as a leading center
Higher consumption of shoes
Unemployment rate of 9.2%
Diversified Country France Macro Conditions Analysis Thank you for your attention