Company analysis

About your “company” (Your group name, introduce your company)

 Executive Summary:
MUJI, short for Mujirushi (no-brand) Ryohin (quality goods), is a
Japanese retail/manufacture company known for its wide variety of
products from housewares, furniture, lifestyle goods, foods, apparels to
cosmetics. This report analyses primarily MUJI’s branding strategies and
customer-based brand equity, which is divided into sections and
explained in-depth. In order to understand MUJI to a greater extent, the
brand resonance model provides a concise framework in terms of four
underlying dimensions – brand identity, meaning, responses and
relationships. To measure MUJI’s level of awareness, we examine brand
salience and product extension strategy which illustrates how product
lines create harmony and consistency. Moreover, to understand MUJI’s
brand meaning, performance is evaluated based on the marketing
program employed and the use marketing mix strategies. When
determining MUJI’s image, customer profile, secondary association and
positioning are taken into account to generalize customer perceptions
toward the brand. By looking into brand elements such as slogan and its
“no-label” approach, point of parity and point of difference, we gain an
understanding of customers’ response and based on what criteria they
judge MUJI on. Subsequently, we identify what feelings MUJI extracts
from customers through its integrated marketing communication and
what emotional benefits it conveys to create resonation and response
from customer. Lastly, in order to develop relationship with them MUJI
communicates its CSR commitments to build a common ground on
which customers would engage and feel related with MUJI at an
intimate level. Lastly, recommendations will be provided after a
thorough analysis on MUJI: establish a clear brand image boundary
when adapting a new market, reduce overhead and other costs,
embrace celebrity endorsement and provide consistent, Japanese-style
customer service. Overall, the central focus of this report lies on MUJI’s
unprecedented implementation of a “no brand, no logo” approach and
how it triggers robust customer affections and brand equity.
 Introduction:
Background and History - Also known as Ryochin Keikaku Co., Ltd.,
Mujirushi Ryohin was originally a manufacturer started in 1980 serving
as a private product brand of The Seiyu, Ltd., a supermarket chain, with
40 products ranging from ordinary household and consumers goods.
With a clear vision of providing customers with fundamentally essential
products that are functional, high-quality, simple and reasonably priced,
Ryochin Keikaka Co., Ltd. managed to expand to overseas productions
and procurement in 1985, subsequently developing materials globally in
1987. Later, it withdrew from The Seiyu, Ltd. and ran independently as
both a manufacturer and retailer handling all Mujirushi Ryohin products
and operations including planning, development, production,
distribution and sales. With its continual growth and expansion, it has
over 7000 products ranging from stationary, apparels, housewares to
lifestyle items in late 2000’s and more than 200 international retail
stores in 2013 (See Appendix 1). In terms of future plan, riding on an
expansion momentum in Asia with 27.3% revenue growth in 2012 (See
Appendix 2), MUJI aims to expand in the Mainland China region with 100
stores across 29 cities (Ryohin Keikaku Co., Ltd. Annual Report, 2013).
Branding Strategies - The name “MUJI” was derived from Mujirushi
Ryohin, which in translation means “no-brand, quality goods” (Lee,
2007). MUJI can be categorized as a ‘generic brand’ which does not
employ advertising or promotion focusing on the brand itself, but rather
leverage on product features and functionality - a very unique “no-brand
strategy”. Instead of relying on conventional marketing schemes and
approaches, MUJI has gained strong competitive advantages from word-
of-mouth, memorable shopping experience and distinctive product
designs – they are deliberately made aligned to their brand
characteristics of style, simplicity, value and uniformity. MUJI’s product
designs, with elements of ‘Bauhaus style’ (Lange, 2009) and simplicity,
have enhanced its brand value and won five product design awards in
2005 (MUJI History, 2012). Value has been a fundamental focus for MUJI
to inform the company’s design aesthetic, with an array of products that
are bereft of unnecessary ornamentation (Pellegrin, 2012). Uniformity
reflects MUJI’s brand image and identity from its philosophy,
production, design to store layout to deliver a degree of consistency
throughout the globe and a holistic brand experience to which
customers are emotionally attached. This “no-brand” strategy has been
successful under the context of an overcrowding, saturated and
bombarding market where brands are constantly reinforced. An
intriguing aspect about MUJI brand, as some may argue, is the potential
use of “reverse psychology” through its advocacy of “no-brand” to
strengthen its brand equity – the absence of a brand has become a
brand in itself.
 MUJI's Goals
MUJI has been aiming to solve social and global issues by bringing
simplicity and beauty into daily life through its products and services.
We would like to be a collective entity of attentiveness that sees and
thinks from a broad perspective, from the smallest details to the whole
planet's future.Ryohin Keikaku contributes to society by providing MUJI
products and services that take into consideration consumers and
producers. Basic Principle of the Ryohin Keikaku Group is aiming to
become a world-class, highly profitable corporate entity as a group of
independently managed stores that contribute globally toward a simple,
pleasant life and society. Moreover, MUJI, which is formed with
conscience and creativity, will co-create the best and strongest basics for
life that can be used universally going forward with customers who wish
to live a simple and beautiful life.

We are taking on the challenge of making MUJI a company with the

highest level of brand association from customers in the basic areas of
clothing, household goods, and food items for daily life. To work toward
this, we will continue to refine MUJI's quality, price, and meaning and
provide the most necessary basics for daily life through stores, online
businesses, and other means such as MUJI HOTEL and MUJI HOUSE.
Going forward, we will be required to not only sell products but also
create new value while solving social issues and environmental
problems.

We will introduce environmentally friendly production processes at the

production sites in collaboration with our partner factories.
Furthermore, we will provide products that customers can use with a
sense of security by ethically procuring raw materials (considering
animal welfare, environmental impact, lives of cotton farmers, etc.) from
carefully selected business partners.

We collect clothes that customers no longer wear to recycle them into

ReMUJI merchandise or raw materials for clothes. This has the
advantage of circulating the earth's limited resources and making our
store network a collection platform.

The social business implemented in the Kyrgyz Republic provides help in

the developing country to create employment, reinforce industrial
infrastructure, and solve poverty by utilizing consistent know-how in
product planning, production, and sales. Ryohin Keikaku will continue to
contribute to society by creating new value through our business.
 MUJI’s STP Strategy:
MUJI engaged in retailing a wide range of products with their own
merchandise line. These products include apparel, furniture, appliances,
home goods, paint, hardware, toiletries, cosmetics, photographic
equipment, jewelry, toys, and sporting goods. At the meantime, MUJI
design modern and plain products with practical functionality and living
fundamentality in order to have a positive influence and showcase a
simple lifestyle of pursuing the pure and ordinary.
 Market Segmentation: StrategyMarket segmentation is to identify
and distinguish clusters, which has alike characteristics and
consumptions, and behave identically toward marketing
activities.There are three segmentation to divide MUJI in the
department store industry.
 Demographic: Defining who the customers are and where they
normally appear is crucial to department store industry. This is also
profiling the key variables including age, sex, occupation, level of
education, religion, living area, and income characteristics.
 Psychological: MUJI is a brand to promote a lifestyle and widely
spread a core value of simplicity, moderation, humility and self-
restraint. Its philosophy is deliver functional no-brand products
which tells a feeling of fulfillment to human living requirement. Thus,
we should dig out the people who has similar pursuit of lifestyle. To
analyze consumers’ activities, interests, and opinions, we can
understand the pattern of their buying behavior and decision-making
processes.
 Behavioral: Distinguish how and where consumer purchase, getting
information from and ideas about using good/services is to have
better understanding of formulate the consumer profiles.
 Target Market Strategy: With three segments, it shape out basic
consumer profile for MUJI. Consumers who fit in these description
are MUJI’s target customers and they are the focus marketing
strategy objectives.
 Demographic: No gender specific and no marriage indicator, age
between 23 to 40 years old, have well educated, and their
occupations are graduate students, working adults, designers,
businesspersons, art-related business owners and housewives. They
mostly stay in urban area or places easily commuted. Also, they have
more than disposable income to afford living.
 Psychological: People focus either on functionality, maintain
environmental awareness and pursuit thrifty and efficiency. Normally
they have perception on thinking on things happen around and
expect life to be less complicated. Most importantly, they refuse to
buy particular logos to distinguish their own identity but composed
of their own representative elements.
 Behavioral: People tend to purchase more on living necessity,
especially like Japanese goods, and pay more attention on stories or
meaning behind the goods. They would like to experience on the
goods and have feedback on how they feel on the performance.
They like to decorate their house for better living quality to keep
things neat and tight. On the other hand, most people like to share
their goods using experience via social media and read more society-
related, forums about public/international affair, or traveling articles
by smart phones or tablet. Not to mention, they would like to attend
exhibition, gallery tour or hanging out with their family for natural
scenery.In sum, we focus on people, aged from 23 to 40 years old,
well-educated, have awareness of self-identity, environment inter
growth, and pursuit thrifty and efficiency. Their purchase behavior is
focus on essence of goods which are handy, no-brand and multi-
function, focus on experience sharing on the social media, and prefer
Japanese products. They are aware of global and local events, news
and natural activities. Last but not least, they are advocate for world
peace. To be specific, the target customers could be aged 23 to 40
commuters pursuing efficiency, travelers, thrift housewives and
students.
 MUJI’s Positioning Strategy: MUJI has adopted the “no brand
strategy.” The perception of MUJI’s equity is quality, ordinary,
functional and affordable. There are two essential element,
Quality/Price and Design to differentiate MUJI from other brand
either in the same industry or having similar brand identity.From the
chart 1, MUJI has both high quality and price by selling refined-
design products. This is met with their tagline, “ No-brand, low
priced with quality products” so that their customer tends to have a
low price sensitive as long as it remain providing high end and high
quality merchandise. Their refining design is to resolve ordinary issue
on original goods in the daily life with innovation and simplistic
configuration. On the other hand, the experience marketing is one of
their niche strategy in this non-brand market which MUJI
successfully dominate with strong brand image. For instance, MUJI
 displays all their products on the shelves with demonstration at the
average height of eyes reached. Customers are instant sensorial
experience by smelling, touching and trying the goods. MUJI is very
good at building a relax and comfortable shopping environment,
including unified colors in products and decorating in black, white,
khaki, beige, and silver, scent of aromatherapy and cedar, and the
calm peaceful music permeate with the sounds of nature. Customers
pleasured in their stores and willing to share on the social webs,
including Pinterest, Facebook, blogs and Youtube. This is the reason
why MUJI prefer to enforce their design rather than propaganda
since this strong customer-oriented word-of month popularity for
loving MUJI’s simplicity, serenity and nature.

 Market and Competitor

Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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
 Market and Competitor
Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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
 Market and Competitor
Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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
 Market and Competitor
Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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
 Market and Competitor
Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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
 Market and Competitor
Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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
 Market and Competitor
Analysis
 As the corporate mission
of MUJI “Lower price for
a reason”, the brand value
is reflected througho
 ut 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