MUJI Project Report Group 10 - Brand Managenment | Đại học Hoa Sen

MUJI PROJECT REPORT Summary
This report was created in response to a requirement for research the MUJI brand.The MUJI market
chosen for this report is the MUJI UK. This report marketing strategies and tactics of MUJI brand and
provides recommendations for MUJI campaign "MUJI to go" . The methods used for research include
finding valid online sources and applying personal knowledge in the process of studying Media Strategy & Tactics.
MUJI is a company that is marketed as an all-inclusive brand that appeals to consumption market in
UK, and the media, marketing strategies and tactics must meet the exact needs of the UK market.
This means we must careful research, appropriateness, and reasonable evaluation for each contents that show in the report. Submitted by Phạm Thị Lan Anh Trần Võ Minh Thông Thảo Linh Huyền Nhi Contents I.
Introduction...........................................................................................2
1. Mission.............................................................................................2
2. Logo and Slogan..............................................................................3
3. Achievement....................................................................................3
4. Product/ Category............................................................................4
II. Company and market analysis..............................................................4
1. Company history..............................................................................4
2. Market overview..............................................................................5
3. Target location.................................................................................5
4. Market and Competitor Analysis......................................................6
5. Competitive Analysis (5 forces of M. Porter)....................................6 III.
Marketing Analysis..............................................................................7
1. SWOT Analysis.................................................................................7
2. 4Ps of IMC........................................................................................8
3. Brand Positioning.............................................................................9
4. Competitors.....................................................................................9
5. Media Strategy...............................................................................10 IV.
Media Classes/ Tools (Objective, Activities, schedule, budget)........12
1. Introduction...................................................................................12
2. Tools and Tactics...........................................................................13
3. Proposing promotional ideas for the "Muji To go" campaign.........16
 Street Furniture.............................................................................17
 Billboard.........................................................................................17 I. Introduction
"No brand quality items" is what MUJI (full name: Mujirusho Ryohin) stands
for. MUJI was first introduced as a product brand within the Japanese
supermarket chain The Seiyu in 1980, with just 9 homes and 31 food items.
The brand's simple logo, packaging, and retail design all embody the
phrase "Less is More." By eliminating any extraneous ornamentation or
embellishment, the brand draws attention to the product.
The "Marie Kondo" trend of decluttering and maintaining organization was first popularized by MUJI. 1. Mission
MUJI’s corporate philosophy consists of pillars: 
Quest value: Identify and deliver MUJI value and appeal from the
perspective of the people who use MUJI products 
Positive Spiral: Work toward global growth and development by
operating a fair and transparent MUJI business 
Best Partnership: Deliver the abundance inherent in good products
by respecting associates and building relationships of trust with business partners 2. Logo and Slogan
Logo: The epitome of modest design done right is Muji. Making successful
simple images requires careful thought and consideration. It can make a
tiny difference in whether minimalist art and design come out as stodgy,
lackluster, or graceful and successful.
Slogan: “Lower priced for a reason.” This phrase encapsulates how MUJI first began in 1980.G 3. Achievement
MUJI's items received widespread acclaim and sent shockwaves not only
throughout Japan but the entire world, in marked contrast to the
predominating overly ornamented products in the market.
More than 7,000 products, including apparel, furniture, food, and even
houses, are sold in more than 1,000 MUJI stores worldwide.
The underlying principles of our ideology, however, have not altered since
the day we were born; like a compass pointing north, we continue to
center ourselves on the fundamentals and universality of daily life.
The first MUJI store outside of Japan debuted in London in 1991. MUJI has
206 locations outside of Japan and 379 stores within of Japan as of 2014.
In recent years, China has seen a sharp increase in the number of stores.
In the Europe, 59 stores are running now and 12 of them are in the UK. There are 8 MUJI stores in London. 4. Product/ Category
In order to produce products that better meet consumer need, lower
costs, and respond to consumer demand rapidly, MUJI employs an
integrated approach from product planning, design, production, and retail
sales by the Corporation. Furniture, luggage, Ultrasonic Aroma Diffusers,
lamps, and background music albums are just a few of the products that
MUJI carries in addition to everyday items like snacks, cosmetics,
cookware, and paper. In addition to the goods sold in the store, they also
offer consulting, delivery, and experience. II. Company and market analysis 1. Company history
Companies have tried to differentiate themselves from their competitors
through branding and identity creation since the 1950s, when brands
were born in the age of modern marketing. Today, it is not only necessary
for businesses to offer high-quality products in order to succeed in the
marketplace. Furthermore, a strong brand management practice must be
in place. Today, it is nearly impossible to find a category leader who does
not also represent a specific personality in the marketplace. Muji, the Japanese antithesis, appears.
Japan was very brand conscious when the company launched in 1980.
Japanese consumers were willing to pay high prices for branded products,
resulting in the emergence of a mass-luxury market in which owning
expensive, exclusive products became necessary rather than aspirational.
Muji's generic, brand-free, and anonymous products were a reaction to the
excessive labeling and high price tags associated with luxury goods. While
it was fashionable to buy a brand-name product regardless of its utility at
the time, Muji anticipated that a growing segment of the population would
value functionality, affordability, and quality over marketing hype, inflated price tags, and status symbols. 2. Market overview Demographic
All ages, clear emphasis on values more than demographics Income Low to middle-high class Education All, usually the eco-conscious Family status
small to medium sized families, catered for families in households with small to middle house space Gender
Unisex, no strong genderization in products: bland, mostly white or beige and never bright
Unisex products and furniture at MUJI Paris 3. Target location
To target Urbanites, mostly metropolitan or areas with high human traffic
such as major train stations and popular shopping locations close to these
stations. Eg. MUJI in Cologne (Germany) inner-city near main train station,
MUJI To-Go at Gare Saint Lazare and Chatelet flagship store (Paris)
MUJI-to-go at Gare Saint Lazare, Paris, France 4.
Market and Competitor Analysis
As the corporate mission of MUJI “Lower price for a reason”, the brand
value is reflected through out the company’s beliefs, operation, marketing
and business model. The key components of MUJI’s philosophy can be summarized: - Reasonable price;
- Simple, moderate, and functional design; - Basic, understated colors;
- Essential parts for people to design their lifestyles at their discretion.
To have a more vivid view of market and competitors, we use the analysis methods as below 5.
Competitive Analysis (5 forces of M. Porter) Bargaining power of suppliers
We can easily see from the product range that all of the raw materials
MUJI requires for production are basic and common, and suppliers of the
materials have a large number of buyers as well, so each buyer cannot be
the supplier's only client. Because MUJI's core value is design rather than
production, there are no switching costs for MUJI, and it is also possible for
them to realize forward or backward integration, so MUJI's supplier
bargaining power is insignificant. Bargaining power of buyers
When it comes to meeting the functional needs of products, switching
costs are very low in the grocery or clothing industries because
competition is quite intense and customers have a wide range of
alternatives. However, because it is less price competitive, MUJI
emphasizes the product added value for customers. Rather than
purchasing a single product, many customers find that purchasing sets of
MUJI's products provides them with a uniform style of design and a unique
feeling of use. Through an understanding of customer demand, the
company expands their product offerings, designs special usage based on
various scenarios from daily life, with the goal of providing a complete
solution to improve the efficiency and quality of customers' everyday lives, thereby reducing buyer bargaining power. Threat of new entrants
There are no entry barriers in this industry when policy and capital
requirements are considered. However, due to the wide range of products
available, including groceries and clothing, as well as the current market
saturation, while there may be many new entrants, only a few of them will
be large enough to threaten MUJI's position.. Threat of substitutes
Buyers are more likely to accept product prices if other alternatives are
not readily available or if the existing qualities of substitutes are not
satisfactory, according to a substitutes study. In the case of MUJI, there
are few alternatives that offer the same product ranges, high quality, and
low prices as MUJI, so the threat of substitute is low.
The intensity of rivalry among competitors in this industry
Even with a saturated market and a low threat of new entrants, market
rivalry is still considered intense. Companies like IKEA and Uniqlo share
the same value as MUJI; they all offer large product ranges at relatively
lower prices, and their brand awareness and market presence are also
competitive. The most obvious strength of MUJI is its strong brand
identity. When one thinks of MUJI, messages like recycling, simplicity,
long-lasting quality, no brand, and respect for nature come to mind, and
this is what makes the company unique and irreplaceable. While price and
less customization based on local markets may be the most significant
weaknesses and threats when compared to competitors.
Based on these brands' prices, MUJI is less competitive, and customers
have almost no switching costs in similar products. Also, consider the
design; most products are essentially the same as in Japan, making it
difficult to create effective emotional ties with local customers. III. Marketing Analysis 1. SWOT Analysis 2. 4Ps of IMC Product
MUJI provides high-quality products. Those products are made from high-
quality raw materials, such as wood. They are sustainable products made
of sustainable materials and bio materials because they are made of wood.
Muji's products are known for being "NO BRAND." When you look at the
product, there is no logo or label... MUJI takes an integrated approach
from product planning, design, production, and retail sales by the
Corporation, so that products can better meet consumer demand, reduce
costs, and respond to consumer demand in a very short period of time.
MUJI sells not only appeal, snacks, cosmetics, cookware, and stationary,
but also furniture, luggage, Ultrasonic Aroma Diffuser, lights, and
background music albums. Aside from what is available in the store, they
also offer consulting, delivery, and experience..
The products are straightforward; for example, in the image, we can see
that a chair is a chair. These products are intended for use on a daily basis by anyone. Price
MUJI sells products at mid-to-low prices. They provide high-quality products at a low cost.
They are offering this price because it is a no logo brand, which means the
customer is only paying for the product and not the brand.
Furthermore, because MUJI products have no extra functions and no
waste, they are less expensive. Place
There are stores in densely populated areas, such as big cities. In France,
for example, there are stores in Paris, three in a nearby Parisian suburb, and only one in Lyon.
There are over 255 stores worldwide, with 385 in Japan. Promotion
Muji advertised heavily on the internet and social networks such as Facebook...
The brand is also cited by "green" individuals on blogs, Pinterest, and
Facebook. There are numerous blog critiques of Muji.
We can see some video advertisements, but none of them are on television.
It is not massive due to the lack of a brand image, and it is not impressive due to the "zen" image.
Muji has a catalogue, but you have to ask for it. It is built on simplicity.
Muji's preferred form of advertising is word of mouth. 3. Brand Positioning
MUJI has implemented a "no brand strategy." Quality, ordinary, functional,
and affordable are the perceptions of MUJI's equity. To differentiate MUJI
from other brands in the same industry or with similar brand identities,
two essential elements must be present: quality/price and design.
According to the first chart, MUJI has both high quality and low prices by
selling refined-design products. This is met with their tagline, "No-brand,
low priced with quality products," implying that their customers are price
sensitive as long as they continue to provide high end and high quality
merchandise. Their refining design goal is to solve everyday problems
with original goods through innovation and simplicity.On the other hand,
one of their niche strategies in this non-brand market that MUJI
successfully dominates with a strong brand image is experience marketing. For Instance
MUJI displays all of their products on the shelves with demonstrations at
the average eye height reached. Customers get an immediate sensory
experience by smelling, touching, and trying the products. MUJI excels at
creating a relaxing and comfortable shopping environment, with unified
colors in products and decorating in black, white, khaki, beige, and silver,
aromatherapy and cedar scents, and calm peaceful music permeating
with nature sounds. Customers are pleased with their stores and eager to
share their experiences on social media platforms such as Pinterest,
Facebook, blogs, and YouTube. Because of this strong customer-oriented
word-of-month popularity for loving MUJI's simplicity, serenity, and nature,
MUJI prefers to enforce their design rather than propaganda. 4. Competitors
MUJI's top competitors include Uniqlo, Gap, Wal Mart, Gordmans Stores,
QKL Stores, Maus Freres and Menards,Miniso, IKEA,... 
Ikea and Uniqlo were the closest competitors for simple aesthetics 
Ikea, Bed/Bath/Beyond, were the closest competitors for number of product categorie 5. Media Strategy
Muji's no-brand strategy appeals to a distinct market segment of
consumers who are sick of consumerism and prefer a refreshing
alternative to traditional branded products. With minimal packaging and
limited natural colors, its products are aesthetically appealing to
customers who prefer unbranded products. This is reflected in its
corporate vision, which is to "be natural without a name, simple, and earthly."
The following are some of Muji's key brand success factors:
Design minimalism: Muji's winning formula and primary reason for the
brand's market dominance is its unwavering focus on the product. Muji's
entire organization is designed with the primary focus on the product
itself, resulting in waste reduction and an emphasis on recycling.
It looks at products through three lenses, which are articulated in its three
product development priorities: material selection, process streamlining,
and packaging simplification. Muji searches the world for the highest
quality raw materials, including materials that are typically discarded by
other manufacturers. Processes that have no bearing on the quality of a
product are eliminated. For example, if the pulp bleaching process is
skipped, the resulting paper is light beige in color. Muji realized that there
is no added value in bleaching the paper to make it white, so it can be
used for packaging and labels. When combined with its products, the
resulting paper is remarkably pure, natural, and refreshing, in stark
contrast to the over-embellished products on the market.
Muji uses bulk, standardized packaging to highlight the natural colors and
shapes of its products while also conserving resources and reducing
waste. Muji's refillable shampoo, soap, and lotion dispensers have been a
huge design success. Muji discovered that a common problem faced by
consumers was messy bathrooms filled with visual clutter from various
product packagings through ethnographic research. The refillable
dispensers were created by combining these discoveries and its design capabilities.
To discourage unnecessary detail, the Muji design process resists
technology for its own sake, and prototype designs are produced on paper
rather than computers. Muji's top design priority is always how the
customer will use the product, which influences the manufacturing
process. Finishes, lines, and forms are minimized for ease of manufacture.
Muji's products became highly sought-after very quickly after their launch
as a result of this emphasis on product design rather than branding, and
sent shock waves not only throughout Japan but throughout the entire world.
Personalization through universality: With simplicity and universality
at the forefront of its design principles, personalization of its products is
simple. Customers can express their creativity by personalizing notebooks
and gift bags at the free stamp station available in every store, or by
customizing embroidery on fabric tote bags.
Each product is a blank canvas, allowing the consumer to interpret and
bring out his or her individual style in using and designing the final
product, thereby expressing their personalities, feelings, and thoughts
through the use of Muji's products. This simple and clever design strategy
has not only helped Muji's brand identity in the market, but it has also
allowed it to strengthen its equity in various market and product segments.
Leverage on digital: Another winning formula is Muji's ability to
leverage digital in order to meet the changing needs of its customers.
When it discovered that customers frequently browsed for products on its
website before going down to purchase the products in-store, it created
the Muji Passport mobile app in May 2013 to build a closer relationship
with its customers and improve in-store experiences. According to Muji's
Chief Marketing Technology Officer, Kosuke Hamano, the primary goal of
the mobile app is to promote brand communications and drive in-store
traffic, rather than simply using it as another platform to push sales.
Firstly, the app provides customers with a convenient platform for
searching for store and product information, as well as store availability.
Second, the app allows the company to capture clickstream data from the
app, such as purchase trends and activity, and connect it with existing
point of sale data and other customer data. This enables it to send
customers more timely, well-targeted, and location-specific in-app push
notifications with personalized coupons. Customers adore this feature, as
evidenced by a 46% increase in in-store spending following the launch.
Finally, the app can be used as a customer loyalty card. Customers are
given redeemable points for visiting stores, writing product reviews, and
making purchases, which they can use to make future purchases.
Furthermore, the app saved Muji millions of dollars in printing costs from traditional flyers.
The app now has over 2 million monthly active users and has significantly
improved Muji's customer experience by connecting the digital and offline customer journeys. IV.
Media Classes/ Tools (Objective, Activities, schedule, budget) 1. Introduction