Developing a Marketing Plan for Unique Clothing Warehouse - Case Study Example

DЕVЕLОРING А MАRKЕTING РLАN FОR UNIQLО by Student’s name Code+ course name Professor’s name University name City, State Date Executive Summary One of the fastest growing sectors in Japan is clothing and accessories sector. The clothing and accessories industry produce various garments and accessories such as industrial wear, protective clothing and jeans trousers. This study sought to analyze marketing strategy for UNIQLO Co. Ltd. In so doing, it defined three main objectives namely; to be the market leader in fast fashion across Japan and beyond, to be a pace setter in style and color and, to achieve sustainable growth in clothing and accessories sector. UNIQLO Co. Ltd will select a market niche, and attain a dominant leadership position in clothing and accessories industry. The company will realize its market dominance objectives through value creation, adoption of information technology in creating superior brands, and conducting advertising campaigns. The company’s target market for its clothing and accessories shall include both domestic and global markets. As a result of changing customer preferences and attitudes, the company will adopt the specialty product decisions whereby, it will segment the domestic market into young transitional individuals, adults and industrial market segments. The rival firms established in this study included the domestic and international firms. Local competitors include local garment manufacturing firms which adheres to South- American culture while the international competitors include duty-free entry of textiles into Brazil from other countries such as USA, United Kingdom, China, Korea and India. The study will wrap up by developing a contingency marketing plan to overcome the company’s competitive challenges. TABLE OF CONTENTS 1.0 INTRODUCTION 5 1.1 Background Information 5 2.0 Marketing Objectives 7 2.1 UNIQLO Specific Objectives 7 2.2. Target Market 7 2.3 Growth projections 8 2.4 Market penetration and coverage 10 2.4.1 Direct exports from Japan 10 2.4.2. Licensing 11 2.4.3 Wholly owned subsidiaries 12 3.0 Product Adaptation, or Modification 13 3.1 The core component 14 3.2 Supporting services component 15 3.3 Packaging components 15 4.0 Promotion Mix 16 4.1 Advertising 16 4.1.1 Setting advertising budget for UNIQLO 17 4.1.2. Media Mix and Message 18 4.2 Sales promotion 20 4.3 Personal Selling 20 5.0 Distribution 21 5.1 Mode Selection 21 5.2 Packing 22 5.3 Documents Required 22 5.4 Insurance 23 5.5 Channels of distribution 23 5.6 Middlemen and retailers 24 7.0 Terms of sales 26 Conclusion 28 References 29 Appendices 31 1.0 INTRODUCTION 1.1 Background Information The history of Japan’s textile industry could be dated from the 710 AD during the Nara era. Though several studies about garment firms in Japan exist, little is known of Japanese clothing and accessories industry before the eighteenth century. According to researchers, the Japanese clothing and accessories industry were influenced by Asian clothing companies specifically; Chinese and Korean firms. Today, garment enterprises in Japan play a prominent role in enhancing the Japanese economy. The textile firms form the seedbed for Japanese economy because they provide employment opportunities to a large mass of people, and also provide the country with foreign exchange. That notwithstanding, the clothing and accessories industry in Japan faced numerous challenges, which hinder the realization of its full potential. One of the main challenges is the import invasion by international firms, and low quality-textiles due to unreliable climate conditions in Japan (Farrell, 2008). To address these challenges, many garment manufacturing firms have adopted ICT with a view of enhancing their performance. With this regard, the textile industry in Japan that was traditionally labor intensive have been mechanized. Also, textile experts are constantly researching on cost effective methods of farming to counter harsh climatic conditions. As a result, the Japanese textile industry has witnessed the growth and expansion. UNIQLO Co. Ltd has for long dominated the clothing and accessories market in Japan. The company looks forward to expand its operations to other regions. Brazil provides the ideal destination for expansion due to its location, high population and growing market. UNIQLO shall base itself in such major cities as Rio de Janeiro, Sao Paulo, Brasilia and Salvador. These cities are vibrant with high population growth. Brazil is a major tourist destination with over 30 million tourists annually. Therefore, the cities can provide an ideal clientele base for UNIQLO products. To shed more light on UNIQLO’s investment plans in the region, this report shall study the following; marketing objectives, product adaptation, or modification, promotion mix, distribution, price determination, terms of sale, and, methods of payment. 2.0 Marketing Objectives 2.1 UNIQLO Specific Objectives Organizations’ marketing objectives could be continued existence, profit maximization and market dominance. UNIQLO Co. Ltd aims at becoming the market leader in the clothing and accessories across Brazil through value creation, adoption of information technology in creating superior brands, and conducting advertising campaigns. In so doing, the company will take into consideration environmentally, as well as, economic practices. 2.2. Target Market The target market for UNIQLO Co. Ltd will be largely based on demographic and purchase power variables. The company intends to increase the selling more clothing and accessories, in order to achieve growth. UNIQLO Co. Ltd understands that different age groups have diverse needs and interests. As such, the company will classify its target market into three that is, young people, adults and industrial market segments. UNIQLO Co. Ltd will develop new brands to appeal to young people between the age of 14 and 29. According to Palmer (1996), young individual provides the greatest opportunity for markets because of their explorative nature, influence and minimal resistance to new products. Notably, the youth has a strong association with fashion styles, and wooing them will enhance the company’s competitiveness in the market. The fashion cognizant young individuals are usually early adaptors, and buy clothing and accessories regularly. Therefore, the company intends at strengthening the brand image through promotion. To tap this market, the company has adequate plans of utilizing TV and the social media, as the strategic advertising tools. Adults also provide a wider audience because of their immense purchasing powers. Unlike young transitional individuals, adults have additional buying power and influence to other adults. In addition, this market segment influences the family purchasing decisions. As such, they are expected to provide the basic needs including clothing. The industrial segment is composed of manufacturing firms. Brazilian industrial protective clothing is growing at a higher rate because of the country’s high economic growth prospects. This growth has also been boosted by the frequent revisions in industry standards. The industrial protective clothing segment purchases protective clothing at large scale, and therefore; it would be ideal to increase production to satisfy the clients’ demands. UNIQLO Co. Ltd will make sure a constant supply of quality and trendy protective clothing. 2.3 Growth projections The growth project is divided into three distinct phases; initial phase, growth phase and maintenance phase. In the initial phase, the company will introduce the new products in the market and create the market position and niche. The second phase, growth phase, will involve setting out of the company goal to be the pacesetter in terms of quality and best practices. The final phase is the maintenance phase where the company will conduct continuous researches to ensure a constant supply and profitability across the year. PHASE OBJECTIVES TIME FRAME TONNAGE Initial phase Entry into the Brazilian market Creation of market niche and market position 1 year 100 Tonnes Growth phase - Setting out to be the market leader in the Brazilian market 1 year 200 Tonnes Maintenance phase To maintain a constant supply and profitability of clothing and accessories throughout the year. 1 year 300 Tonnes Total tonnage in three years 600 Tonnes 2.4 Market penetration and coverage Various factors influence the company’s market penetration strategy. The penetration and coverage strategy is largely influenced by such factors as political, legal, socioeconomic and trade barriers. The main objective of investing in global markets is to achieve sustainable profits in the long run (Doole & Lowe, 2008). In its penetration and coverage process, UNIQLO shall consider the following three options; a) export from Japan; b) to set up a wholly owned subsidiary and c) Licensing. 2.4.1 Direct exports from Japan In direct exporting, UNIQLO Co. Ltd shall set up centralized positions in major cities such as Rio de Janeiro, Brasilia, Salvador and Sao Paulo. These cities shall facilitate coordinating, contracting, pricing as well as distribution of clothing and accessories in Brazil. This can be attained by sending UNIQLO representatives to Brazil, creating a UNIQLO subsidiary in Japan to oversee all UNIQLO’s activities. The following are some of the main benefits that the company will realize by directly exporting; the company will get better feedback regarding the quality of clothing and accessories offered by UNIQLO and suggestions for improvement. Secondly, this mode of entry is profitable in the long run especially when local traders are involved. In addition, direct exporting shall play a crucial role in protecting UNIQLO’s intangible assets such as goodwill and trademarks in the global market. However, this mode of entry is quite expensive and risky. UNIQLO will therefore, carry out an extensive market research on how to execute the plan. Among the aspects that should be considered include; the pricing methodology, distribution costs, the staff to be involved among others. In addition, this mode of entry is time-consuming compared to other approaches such as setting up a wholly owned subsidiary. 2.4.2. Licensing With regards to licensing, UNIQLO Co. Ltd will provide impart its technical know- how and rights to a local clothing and accessories company. The local firm will produce and market UNIQLO’s products for a certain period of time, and in turn, pay commission and royalty to UNIQLO for the clothing and accessories produced. This mode of entry is far much welcome in Brazil because it facilitates knowledge transfer to the locals. The advantage of licensing includes the following; the approach is quite cheaper, as UNIQLO can use the already existing infrastructure to create a competitive advantage that eventually results in greater value creation. This approach has some limitations which include; the revenues generated from licensing another firm are relatively lower as opposed to direct exporting. In addition, UNIQLO may lose control of manufacturing the clothing and accessories, and this may result in poor quality. Thus, an inept firm may ruin the UNIQLO’s competition in Brazil. In addition, this approach may result in conflict of interest whereby, the local company may promote its product at the expense of UNIQLO’s clothing and accessories. 2.4.3 Wholly owned subsidiaries UNIQLO Company Limited may adopt the wholly owned subsidiary to penetrate the Brazil clothing and accessories market. This mode of entry entails setting operations, as well as, distribution premises abroad. UNIQLO will therefore conduct extensive market surveys, in order to determine the prudence in forming foreign destinations. There are numerous costs associated with setting up a wholly owned subsidiary. For instance, UNIQLO will incur huge losses in setting and registering a new business in Brazil. The above findings have revealed the advantages and disadvantages of various entry modes for UNIQLO. From the above study, it is evident that licensing is the most beneficial approach that UNIQLO will adopt in penetrating the Brazil market. Thus, UNIQLO shall carry out a thorough training and knowledge transfer to the local firms, in order to protect its brand image. 3.0 Product Adaptation, or Modification UNIQLO Co. Ltd shall conduct a series of activities known as product adaptation, or modification, in order to meet the needs of the Brazilian target market. Due to the dynamic business environment, UNIQLO shall conduct a market research investigation, in order to determine the product strategy to follow. A company may decide to sell a similar product, modify the product or develop new products. UNIQLO Co. Ltd aims at introducing its clothing and accessories brand in the Brazilian market. In order to remain competitive, UNIQLO will adopt a unique way of competing. The company shall adopt a multidimensional approach, in order to deliver value to the client. In the face of globalization, it is imperative for marketers to not that the clients will react to a certain brand even before it is launched (Francis, 2010). As such, companies should conduct a thorough marketing research, and also predict the emerging trends. UNIQLO will use the product component model, in identifying the possible modes of entry into the Brazilian market. The product component model identifies the impacts of such aspects as cultural, geographic, economic and legal factors on the export market. The product component model focuses on the core, supporting services and packaging aspects that influences the acceptance of a product in the market. 3.1 The core component A research, which was done by Mentzer, (2001) stated that organizations are often faced with external pressures such as a new customer demand. During turbulent times, the core competencies of a firm usually influence the organizational culture. The core competencies such as innovation play a key role in enhancing value and thus, satisfying customer needs. A sustainable competitive advantage allows the maintenance and improvement of an organization’s competitive position in the market. In order to achieve a competitive advantage in the Brazilian market, UNIQLO shall add product variations. Major product modifications may be expensive and hence requiring extra capital investment. UNIQLO can therefore, modify such aspects as the clothing and accessories design, color and functional features, in order to capture the attention of local consumers. UNIQLO Co. Ltd will thus, add or delete functional features depending on the Brazilian market. For instance, the company shall consider the Brazilian culture, which is mostly influenced by the weather changes, when designing clothing. Thus, the UNIQLO marketing team shall examine the physical product, as well as, functional features when launching the product in Brazil. To become successful, UNIQLO shall anchor its business strategies on the technology platform. As such, it will employ the state of the art design to create innovative products and acquire customers. The company will continuously create new products, in order to gain a larger share of the market. UNIQLO designs will be driven by the desire to create a modernized and successful organization, which is result oriented. In the face of global competition, UNIQLO Co. Ltd shall strive to adapt to the Brazil by streamlining its processes, systems and structures. The company shall therefore, give a high priority to innovative programs. 3.2 Supporting services component This component ensures that the organization is performing effectively. Some of the main activities within this component include repair and maintenance, instructions, installation among others. To achieve a competitive advantage, UNIQLO will perform the above activities in a way that generates more overall value than do rival firms. The company shall create superior value through differentiation. 3.3 Packaging components It is imperative for marketers to understand that customers will view a company’s product negatively, if the design is not appropriate. Consumers judge an organization based on how it how designs its product. Customers are sensitive to a product’s packaging, and thus, UNIQLO shall strive to create new packaging ideas. The role of packaging concept is to protect, promote and enhance the products’ quality. Among the strategies that the company shall adopt in order enhance its competitiveness include branding, quality and styling (Keillor, 2011). In the modern business world, branding concept has become an essential for promoting products. Recent research indicates that consumers prefer to purchase commodities from renowned companies. According to Boone & Kurtz (2011), the brand is a label that distinguishes a firm’s product from that of the rivals. A strong brand therefore, has the ability of capturing clients’ attention. UNIQLO shall introduce a strong brand in order to win key competitions. The company will offer unique and innovative clothing and accessories that connect with clients. A trademark is a word, symbol or logo that UNIQLO Co. Ltd could use to identify its products in the market. The company will overwhelmingly institutionalize the culture of innovation to create unique clothing and accessories. Therefore, the new brands will be well differentiated from the already existing ones in the market. This will make it easier for clients distinguish UNIQLO’s brands as they stand out from the rest. In addition, the trademark will play a crucial role in protecting UNIQLO’s products since no clothing and accessories will be produced under similar trade mark. UNIQLO Co. Ltd shall strive to understand client’s needs and deliver value for money. The company shall aim at building deeper and longer lasting relationships with the client. 4.0 Promotion Mix After companies have developed the products, they must inform potential customers about the products, in order to cut a niche in the market. UNIQLO will advertise its clothing and accessory products using the following tools; advertising, sales promotion, personal selling among others. 4.1 Advertising Recent research reveals that advertising is the most often used tools of promotion. According to Hansen & Christensen (2003), advertising is any paid, form of non- personal presentation and promotion of ideas and products by a well-known sponsor. Marketers use this means, in order to seize consumer’s attention. A promoter has to pay advertising agency experts in the field of advertising. Advertising is a mass communication which is aimed at persuading a large number of potential buyers. UNIQLO Co. Ltd will achieve numerous benefits by maintaining a strict contact with the clients. The following are the main objectives of advertising; information and persuasive advertising. Information advertising enlightens the market about new products and also, proposes new uses for a product. This form of advertising also, notifies the consumers about price changes and hence, enabling them to make informed purchase decisions. Persuasive advertising, on the other hand, involves creating selective demand for a given product. In the face of global competition, UNIQLO Co. Ltd may convince consumers to always buy their clothing and accessories. UNIQLO may also conduct advertising with a view of reminding consumers that they require the product in future. 4.1.1 Setting advertising budget for UNIQLO Normally, advertising costs vary from one organization to another. For instance, the major pharmaceutical firms across the globe spend around 15 % of their income on advertising, whilst organizations such as GM and Ford spend around 2 %. Clothing and accessories can be classified as fast moving consumer goods, and thus, the advertising budget for UNIQLO Co. Ltd will be around 7-10 % of sales. There are many competitors in the clothing and accessories industry, and therefore, UNIQLO needs aggressive advertising to build awareness, and persuade enthusiasts to try their products. UNIQLO company Ltd will adopt the ‘same level as competitors approach’ while setting the advertising budget. UNIQLO will thus examine the competitors’ activities before setting an advertising budget. However, this approach has several shortcomings, and UNIQLO needs to be careful. For instance, it is not easy to gain correct information on rival firms’ spending. Also, there is no rationale to believe that competitors spent their advertising money wisely. Therefore, UNIQLO Co. Ltd shall determine the right advertising budget. As such, the marketing leaders should not set the budget too high, as it will give rise to lavishness, and lesser profits. In addition, they should not set the budget too low because it will be extremely difficult to grasp consumer attention. 4.1.2. Media Mix and Message UNIQLO Co. Ltd shall consider the following two factors when developing advertising strategy that is, advertising media and advertising message. With respect to the advertising message, UNIQLO must rate the messages on exclusiveness, believability and desirability. The message must state something interesting about the clothing and accessories. It must state something special that does not apply to every clothing or accessory. Also, the message must be credible for clothing and accessories consumers to think about it, and react. Advertising media are a channel that conveys the promoters’ message to the intended audience (Murthy, 2009). It is a vehicle through which a marketer passes on his message to potential clients. UNIQLO Co. Ltd needs to advertise extensively in order to spur growth. The company may use E-mail marketing in order to reach a wider client base within the shortest time possible. With the advancement in information technology, most marketers across Brazil have switched to E-mail communication. Therefore, UNIQLO Co. Ltd shall own a website that is branded with dark-rich colors, in order to attract prospective customers. The company will also have adequate plans of utilizing the social media advertising tool. In the era of information technology, internet access in Brazil has become less expensive. Marketers are taking this advantage to advertise their products electronically. Recent research indicates that marketers across Brazil have overwhelmingly embraced the aspect of social media advertising (Alozie, 2012). UNIQLO shall therefore, advertise its clothing and accessories through social media such as twitter and Facebook. Hopkins, Zeller and & Roberts (2012), in their studies, argued that advertising through social media provides a firm with a competitive edge, due to its ability to influence consumers to purchase a product. Advertising using social media persuades the client from the time he is assessing the available brands to the period after procuring the product. Therefore, UNIQLO Co. Ltd shall embark on social media advertising in order to strengthen advocacy of existing clients, increase the likelihood of acquiring new clients, enhance the brand visibility and also, respond swiftly to clients’ complaints and feedback. UNIQLO Co. Ltd will also, make use of Television (TV) when advertising its products. Watching TV is a common leisure activity among Brazilians. According to recent surveys, most Brazilians spend as high as four to five hours of their leisure time, viewing TV (Meade, 2004). Television commercials normally create an impulse purchase whereby, consumers view the presentation, and then purchase the product instantaneously. TV usually describes, display and frequently demonstrates the brand, as well as, its features. In addition, TV has the ability to appeal both the eyes and ears simultaneously. Thus, TV will work well for UNIQLO Co. Ltd because it offers the greatest possibility for creative advertising. After developing an advertising strategy, the sales and marketing department of UNIQLO shall proceed to determine the effectiveness of advertising. The management team at UNIQLO can show the advert to the consumer before placing it, in order to get their opinions. This will enable them to know the attitudes of the buyers, and also, determine whether it meets the advertisement objectives. Marketers can determine the advertisement success prior to, during or after the promotion. 4.2 Sales promotion Sales promotion is a temporary enticement, which is aimed at encouraging buyers to purchase a product. The UNIQLO sales department must set their sales promotion objectives before settling on a particular sales promotion tool. These objectives include; consumer promotions, trade promotions and sales force. UNIQLO’s promotion objectives are consumer promotion and trade promotions. Thus, the company aims at enhancing short term sales, as well as, increasing its market share in the long-run. In this regard, the company may use the following sales promotion tools; coupons, price of, patronage rewards, cash refunds and samples. In addition, the organization may discounts and allowances to traders who agree to take part in an advert. 4.3 Personal Selling Personal selling could be defined as the face to face contact between the marketer and prospective client (Gitman & McDaniel, 2008). Unlike other promotional approaches, this method is concerned with looking for potential purchasers, presenting the product, and obtaining an order from the client. This approach is ideal for UNIQLO Co. Ltd because it has the ability to command a much larger share of total sales revenue. The company will use salespersons from the home country. Salespersons from the host country are already familiar with the market, and hence an invaluable resource. 5.0 Distribution Palmer (2012) defined distribution as the physical movement of products from the origin to destination. Thus, distribution management involves shipping, warehousing, inventory, and amortization. In the past few years, the concept of physical distribution has emerged as a distinct, identifiable function of management. In terms of transport, Brazil is one of the country’s that have poor transport access across the globe. Transport challenges in Brazil can largely be attributed to remoteness. Therefore, UNIQLO will commence its operations in key cities such as Salvador, Brasilia, Rio de Janeiro and Sao Paulo. UNIQLO Co. Ltd intends to intend to form wholly owned subsidiary in Brazil, and also franchise in some towns due to resource inadequacies, that is time and money. In addition, the company will have licensees in Brazil in order to minimize the risks of entry into the foreign market. 5.1 Mode Selection Most of the roads in Brazil are impassable due to remoteness, and therefore, air travel is suitable for linking the major cities i.e. Salvador, Brasilia, Rio de Janeiro and Sao Paulo (Louis & Chandler, 2010). The following are the main benefits that UNIQLO will gain by using this mode of transport; the company will be able to move goods faster from origin to destination. With the advancement in information technology, purchasing a plane ticket has become easier. A freight ticket can be purchased via internet or telephone, and UNIQLO doesn’t have to waste much time. This will, in turn, provide UNIQLO with a competitive edge. Air transport is quite expensive, and therefore, UNIQLO will seek alternative means of transport, in order to reduce expenses. Where possible, UNIQLO will also use vehicles to move goods from the factory to their destinations. UNIQLO Co. Ltd will also be distributing its products via Sao Paulo port. The railway network in Brazil is rudimentary, and therefore, the company shall not rely on this mode of transport. 5.2 Packing UNIQLO Co. Ltd shall comply with the Textile Fiber Products Identifications Act of 1958.The main aim of product labeling and packaging is to provide the clients with pertinent information regarding the product. Brazil regulations on clothing involve such aspects as name and address of importer, country of origin, manufacturing date, net weight among others. In this regard, UNIQLO Co. Ltd shall comply with the country’s requirements for labeling and packaging. 5.3 Documents Required UNIQLO Co. Ltd will hire a third party logistics transport company in order to facilitate storage, packaging and transport of clothing and accessories. The third party will also handle the necessary documentations. Normally, the following documents are required during exporting and importing products; air freight shipments, Ocean Bill of lading, Commercial invoice, Consular invoice, Certificate of Origin, Inspection Certification, Dock Receipt and Warehouse Receipt, Packing list, Transportation Labels among others. 5.4 Insurance UNIQLO Co. Ltd will enter into a legal contract with an insurance company in order to cover losses that may result from physical damage. The contract period will be longer than a year. 5.5 Channels of distribution UNIQLO Co. Ltd will use the various channels available to sell clothing and accessories to consumers. The company will use the direct channel, whereby it will sell directly to the ultimate users. With this regard, the company will sell industrial clothing directly to large organizations. Also, it will sell directly to the Brazilian government. The second channel that the company will use to sell its products is indirect channel. This involves selling the products to a distributor, who in turn sells them to consumers. The company will also appoint a local agent to promote clothing and accessories to the distributors in Brazil. 5.6 Middlemen and retailers UNIQLO Co. Ltd intends to engage wholesalers and retailers to provide the business-to-business service. They will act as a link between the company and the consumers. As such, the company will license apparel companies to design market and advertise items at a mark up. Labor costs in Brazil are relatively cheaper compared to those of Japan, and therefore, UNIQLO will outsource production of apparel. The company will establish retail outlets in order to have control over branding, as well as, merchandising. Thus, UNIQLO Co. Ltd shall find ideal locations, in order to avoid huge markdowns. In the era of communications technology, the company will also sell directly to consumers via the internet. Clients have become Web-Savvy over the past few years, and therefore, the company shall take advantage of the internet (Botha, Bothma & Geldenhuys, 2008). 6.0 Price Determination In this case, UNIQLO Co. Ltd will determine price based on such aspects as the costs of production, cost of distribution, custom duties, and targeted profit margins among others. To become a market leader, UNIQLO Co. Ltd will consider importing some of items from international markets where they can be sourced at lower cost while, at the same time, buying from the local manufactures quality products that can be obtained at lower costs. This could help in setting prices which are not far below or too high from what the market is willing to pay (Fleisher & Bensoussan, 2007). UNIQLO will also study the prices at which the rival firms are offering, and in turn, set competitive prices. The major competitors of UNIQLO Co. Ltd are Lagos Renner and Marisa. UNIQLO shall sell superior products at a lower price than that of competitors, in order to gain a larger market share. 7.0 Terms of sales The terms of trade are laid down in the contract of sale of goods (Bridge, 1997). The common law provides remedies for a seller who suffers loss due to defective goods. UNIQLO Co. Ltd will therefore, enter into a binding contract in order to create legal obligations. Among the convenient trade terms that the company will be involved in include; Ex works and CIF Contracts. With regards to Ex works, the company will undertake to have the items available for collection by the consumer at the company’s premises. Therefore, UNIQLO will not be responsible for delivering the goods unless otherwise agreed. UNIQLO will enter into a cost, insurance, freight (CIF) contract whereby, it will agree to supply goods that meet the terms of sale The Company will charge extra costs, in order to account for the insurance and shipping he provides. 8.0 Methods of Payment UNIQLO understands that, in order to succeed in a highly competitive global environment, it must offer its clients attractive terms of sales (Bergh & Camesasca, 2001). As such, the company shall use the following methods of payments; cash-in advance, documentary collections, open account and letters of credit (OECD, 2010). Conclusion Today’s market has become extremely competitive, and businesses must be customer centered if they are to succeed. This means winning customers from competitors and then retaining and growing them by delivering greater value. A business must identify their customers’ needs in order to satisfy them. Product success in the market is dependent on the marketing plan and strategy used. Marketing research helps the business in identifying consumer needs .Understanding the market well gives the business the opportunity to tackle competitors. A proper marketing strategy steers changes and development. The clothing and accessories market in Brazil presents an ideal area for investment. In order to tap this market, UNIQLO has established three objectives to guide in the process; to be the market leader, to be the pacesetter in quality, health and environment and to main constant supply of the clothing and accessories. References Alozie, E. C. 2012. Advertising in Developing and Emerging Countries: The Economic, Political and Social Context: Farnham: Gower Publishing, Ltd. Bergh, R. J. & Camesasca, P.D. 2001. European Competition Law and Economics: A Comparative Perspective. New York: Intersentia NY. Boone, L. E. & Kurtz, D. L. 2011. Contemporary Business. Ed. 14. Hoboken: John Wiley & Sons. Botha, J; Bothma, C.H. & Geldenhuys, P. 2008. Managing E-commerce in Business. Ed: 2. South Africa: Juta and Company Ltd. Bridge, M. G. 1997. The Sale of Goods. Ed: 2.Oxford: Oxford University Press. Doole, I & Lowe, R. 2008. International Marketing Strategy: Analysis, Development and Implementation. Ed: 5. London: Cengage Learning EMEA. Farrell, R. 2008. Japanese Investment in the World Economy: A Study of Strategic: Themes in the Internationalization of Japanese Industry: New Horizons in International Business Series. Cheltenham and Camberley: Edward Elgar Publishing. Fleisher, C. S. & Bensoussan, B. E. 2007. Business and Competitive Analysis Methods: Effective Application of New and Classic Methods. New Jersey: FT Press. Francis, C. 2010. International Business: Text and Cases. Ed: 5. New Delhi: PHI Learning Pvt. Ltd. Gitman, L. J. & McDaniel, C. D. 2008. The Future of Business: The Essentials. Ed: 4. London: Cengage Learning. Hansen F & Christensen, L.B. 2003. Branding and Advertising. Copenhagen: Copenhagen Business School Press DK. Hopkins, T; Zeller, D & Roberts, R. R. 2012. Selling All-in-One For Dummies: For Dummies. Hoboken: John Wiley & Sons. Keillor, B. D. 2011. Winning in the Global Market: A Practical Guide to International Business Success: A Practical Guide to International Business Success. California: ABC-CLIO. Louis, R & Chandler, G. 2010. Brazil 8.Ed: 8.Melbourne: Lonely Planet. Meade, T. A. 2004. A Brief History of Brazil. New York: InfoBase Publishing. Mentzer, J. T. 2001. Supply Chain Management. Ed: 2.New York: SAGE. Murthy. 2009. Advertising. India: Excel Books India, 2009. OECD.2010. OECD Trade Policy Studies Trade and Economic Effects of Responses to the Economic Crisis. Washington D.C: OECD Publishing. Palmer, A. 2012. Introduction to Marketing: Theory and Practice. Ed: 3. Oxford: Oxford University Press. Palmer, J .1996. Design and Aesthetics: A Reader. London: Routledge. Appendices Appendix One: Contingency plan Phase Objectives Strategy Budget Phase 1 (year 1) - To enter into the Brazilian Clothing and Accessories market. - to create a position and a niche in the market - Product branding, selection of name, slogan and logo that will be used throughout the marketing process. - Launching of the clothing and accessories marketing campaign and promotion in different locations. -Setting a market position, exploring the diverse apparel products and uses that can fit different audiences as well as sales merchandizing in a different location to assess market suitability -Selection of the right communication channels and procedures with regards to reorder levels and quantities as well as whole sale and retail pricing will be identified in this stage. - Establish the best practices, quality, health, safety and environmental consideration in the production and manufacturing processes. $ 45,000 Phase 2 (Year 2) - To be the market leader in the Brazilian market - Brand promotion to the target market comprised of the young transitional, established couples and manufacturers. - strengthen consumer awareness of the product and its superiority over the other brands. - strengthen the collaboration across the chain supply to enhance efficiency in terms of reducing the barriers, time management, quality and value addition, as well as price stability across the year. $ 40,000. Phase 3 (Year 3) To maintain a constant supply and profitability of apparel throughout the year. - building stronger collaboration and communication across the supply chain. -constant promotion and campaigns across the market, rebranding and other strategies to ensure that the product remains at the top in the market. - boosting the sales, production and profitability in line with the company’s goals. $ 40,000. Read More