Marketing Mix Of Fast Retailing Group

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for Fast Retailing Group

Fast Retailing Group makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix Fast Retailing Group is presented below:

2.1. Product

Product is one of the most important components of the Fast Retailing Group Marketing mix. The distinctive characteristics of the product by Fast Retailing Group are:

2.1.1. Quality

• Fast Retailing Group maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• Fast Retailing Group procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides Fast Retailing Group with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by Fast Retailing Group are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• Fast Retailing Group has a broad portfolio of products
• The broad portfolio helps Fast Retailing Group in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to Fast Retailing Group
• The broader product portfolio also adds more value for Fast Retailing Group

2.1.4. Benefits of product consumption

• Fast Retailing Group offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of Fast Retailing Group is its delivery of emotional benefits to the consumer
• Products manufactured and sold by Fast Retailing Group promise consumers an ego boost, confidence, and security
• Fast Retailing Group also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by Fast Retailing Group are available in different sizes
• Fast Retailing Group has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, Fast Retailing Group has also increased the trial rate
• Different SKUs have also helped Fast Retailing Group improve its product accessibility

2.2. Price

Fast Retailing Group marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix Fast Retailing Group uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, Fast Retailing Group encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of Fast Retailing Group products amongst consumers
• With premium prices, Fast Retailing Group has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in Fast Retailing Group products
• Using elements of premium prices in other product ranges has also allowed Fast Retailing Group to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since Fast Retailing Group has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, Fast Retailing Group also successfully adds more value to its products from the point of view of customers
• Fast Retailing Group also gains higher sales with psychological pricing
• Consumer purchase a higher amount of Fast Retailing Group products because of its use of psychological pricing
• Fast Retailing Group is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• Fast Retailing Group is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows Fast Retailing Group to cover shipping and customs expenses
• Geographical pricing also allows Fast Retailing Group to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, Fast Retailing Group is also known to use bundle pricing strategy popularly
• Fast Retailing Group also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• Fast Retailing Group experiences higher return on the cost of gaining a new customer
• With bundle pricing, Fast Retailing Group is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of Fast Retailing Group.

2.3. Placement

Fast Retailing Group places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of Fast Retailing Group in all markets
• Company-operated stores give Fast Retailing Group higher control over operations as well as store layout and design
• Fast Retailing Group also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to Fast Retailing Group in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• Fast Retailing Group licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for Fast Retailing Group in unstable markets
• Licensed stores have also given Fast Retailing Group high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, Fast Retailing Group has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by Fast Retailing Group by aligning it with local cultural values
• Licensed stores also help Fast Retailing Group in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• Fast Retailing Group has developed a successfully operational website for online order placement and order tracking
• Fast Retailing Group also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for Fast Retailing Group and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• Fast Retailing Group also places its products in supermarkets and hypermarkets across the country
• A large number of Fast Retailing Group target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for Fast Retailing Group

2.3.5. Partner agents

• In offshore locations, Fast Retailing Group also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• Fast Retailing Group contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for Fast Retailing Group also places high importance on the promotional tactics and strategies used. The promotional strategies allow the Fast Retailing Group to interact with the consumers and influence them directly. Fast Retailing Group uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• Fast Retailing Group has corporate profiles on all social media websites and portals
• Fast Retailing Group uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Fast Retailing Group to understand the customers, their needs and demands
• Fast Retailing Group uses this feedback and incorporates it in its broader marketing and organizational strategy
• Fast Retailing Group also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• Fast Retailing Group has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by Fast Retailing Group and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by Fast Retailing Group on high valued purchases
• Frequent usage and purchase of products by Fast Retailing Group also has rewards against the loyalty card

2.4.3. Community Influencers

• Fast Retailing Group makes use of community influencers as its on-ground promotional efforts
• Fast Retailing Group identifies strong and confident individuals to be brand ambassadors in their communities
• Fast Retailing Group provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, Fast Retailing Group also makes use of out of house hoardings
• Hoardings increase visibility for Fast Retailing Group and also work towards building stronger brand recall
• Fast Retailing Group also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Fast Retailing Group have progressed to include a slice of life elements and characteristics
• TV advertisements by Fast Retailing Group also highlight the functional benefits of the product

2.5. People

The marketing mix of Fast Retailing Group also places an essential focus on people development and people building. This is because Fast Retailing Group realizes the importance of employees in building strong customer relationships. Fast Retailing Group develops its employee and people by focusing on the following aspects:

2.5.1. Training

• Fast Retailing Group makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at Fast Retailing Group are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at Fast Retailing Group also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by Fast Retailing Group take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• Fast Retailing Group, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• Fast Retailing Group works on strengthening the organizational commitment in its employees
• Fast Retailing Group builds employee loyalty so that people can reflect their optimal best at work
• Fast Retailing Group also understands that satisfied employees will lead to happy and satisfied customers
• Fast Retailing Group regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• Fast Retailing Group also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• Fast Retailing Group employees are the face of the organization
• Fast Retailing Group are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that Fast Retailing Group distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• Fast Retailing Group remains one of the leading players in the industry also because of its focus on succession planning
• Fast Retailing Group conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at Fast Retailing Group
• Strategic succession planning has allowed Fast Retailing Group to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

Fast Retailing Group has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at Fast Retailing Group are clearly defined and communicated to the employees
• Fast Retailing Group makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at Fast Retailing Group

2.6.2. People Management

• Fast Retailing Group has also defined clear processes for people management through streamlining its human resource management department
• Fast Retailing Group has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed Fast Retailing Group to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• Fast Retailing Group also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• Fast Retailing Group manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for Fast Retailing Group for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for Fast Retailing Group as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for Fast Retailing Group include:

2.7.1. Store atmosphere

• The store design and management for Fast Retailing Group is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by Fast Retailing Group at ease
• The store design is also important for Fast Retailing Group because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for Fast Retailing Group to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• Fast Retailing Group has unique packaging, which is different from other players in the industry
• Fast Retailing Group also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by Fast Retailing Group
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by Fast Retailing Group

2.7.3. Website design

• The website design is simple and easy to use
• Fast Retailing Group has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of Fast Retailing Group also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings