Segmentation, targeting, positioning,

differentiation and its elements

Contents
Introduction
Segmentation &
Targeting
Positioning
Differentiation
Company`s
elements
Conclusion
01. Introduction
• MUJI is a Japanese retail company which sells clothing,
furniture, general merchandise, foods and so on.

• “Lower priced for a reason.” This phrase encapsulates

how MUJI first began in 1980.

• Mujirushi Ryohin, MUJI in Japanese, translates as "no-

brand quality goods”.

• Its origin was a thorough rationalization of the

manufacturing process with an eye to creating simple,
low-cost, good quality products.

• There are over 700 retail outlets opened in the US, UK,
France, South Korea, China, and Australia and so on.

[Link]
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HOW MUJI MAKES NO-BRAND
As we all know, there are so many brands (e.g. Nike, Apple, Coca Cola etc.)
succeeded through building up and conveying strong brand images, and
ultimately give the company logo of extremely high value. MUJI, however,
does not follow this way.

MUJI adopts no logo and “no-brand” concept, which creates

an authentic beauty of simplicity. The concept of simplicity,
is all about bringing a quiet sense of calm into strenuous
everyday lives.

This is attained by deemphasizing branding, spending much less on

advertising and marketing, reducing expenses on production and
simplifying packaging. Finished goods are directly delivered from factories
to consumers, which ensures high quality and reasonable prices.
02. Segmentation & Targeting

Demographic segment
In line with MUJI’s no-brand concept, the company is targeting several types of segments.
In demographic segment, potential customers are identified at the age of 25-44.

Muji's products is practical, affordable yet stylish. Muji cultivates a niche with its minimalism
design using standard natural colors and clean-cut lines which embody creativity .
Psychographic segment
In psychographic segment, MUJI targets potential
consumers who are sick of identifiable company
logos, or people who are in favor of MUJI’s
environmental-friendly stance and keen on natural
materials, or people who are after design-less
products.

In general, Muji has 3 categories of customers

based on their lifestyles:
1. People who are satisfied with the bare
necessity rather than those who pursue brands for
the sake of vanity and desires.
2. The other segment consists of people who
support Muji’s environmentally friendly stance.
3. Consumers who are thrifty and looking for "frill-
less" products.
03. Positioning
MUJI positions itself by simplicity and functionality through its minimalist designs.
That is summarized in three words: “Simple, Functional and Affordable”.

Simple – the designs of MUJI product are understated, plain and thus able to
blend into the environment;

Functional – MUJI products are versatile, adaptable and useful; and

Affordable – they are of good value. Although MUJI constantly positions itself as
a mundane and banal, it is a paradox – it is precisely their symbolic
production to be part of ordinary life which makes it unique.
Positioning in Danish
market
When considering the Danish retail landscape, and
MUJI’s varied and expansive product offering,
there are a range of key competitors which
become apparent including both domestic and
international, as well as physical and online
retailers. To ensure that MUJI effectively
differentiates itself from potential competitors in
the Danish market, and to gauge each of these
company’s locations in the market, a positioning
map has been formulated.
04. Differentiation
What makes MUJI unique?
o Muji is known for its emphasis on functional, quality design that
depicts Japanese minimalism and aesthetics.
o The brand stands out for its minimalism and focus on products
without giving attention to decorations and ornamentation.
o MUJI focuses on being environmentally friendly by eliminating
waste in all processes to give customers what they need in the
form that they need.
MUJI and IKEA are both big names in
contemporary lifestyle design, and both
brands are known for simplicity,
functionality, and ornament-free tools and
furniture. They may appear to have
similarities, but the brands are very
different. Japanese Zen and minimalistic
lifestyle inspire MUJIs style while IKEAs gets
its inspiration from Scandinavian
minimalism.
05. Company`s elements
Some of the key brand success factors
Design minimalism: The winning formula of Muji and the primary
reason the brand stands out in the market is its unwavering focus
on the product. Muji designs its entire organization’s operations
with the primary focus on the product itself, which leads to waste
reduction and an emphasis on recycling.
It examines products through three lenses, as articulated in its three
product development priorities: material selection, process
streamlining and packaging simplification.
Selection of
materials
The overriding selection criteria is always quality.
With an eye for comfort and functionality, MUJI's basic
wear garments are mainly made of natural materials
such as organic cotton.

1 - OCHIWATA product series: we recycle the cotton

fiber that dropped during combing process (ochiwata)
into fabrics.
2 - Hard pulp: we use recycled paper in our hard
pulp storage goods.
3 - Cut-off pieces of confectionery series: We collect
cut-off pieces generated from the manufacturing
process. The deliciousness does not change.
Leverage on digital
• Another winning formula is Muji’s ability to leverage digital to serve its
customers’ evolving needs. They developed a mobile app named Muji
Passport in May 2013 to build a closer relationship with its customers and
enhance in-store experiences.
• Firstly, the app enables customers a convenient platform to search for store
and product information and availability in stores.
• Secondly, the app enables the company to capture clickstream data
including purchase trends and activity from the app and connect it with
existing point of sale data and other customer data. This in turn allows it to
execute more timely, well-targeted and location-specific in-app push
notifications of personalized coupons to customers. Customers love this
functionality, reflecting a 46% increase in in-store spending post-launch.
• Thirdly, the app also functions as a customer
loyalty card. Customers are rewarded with
redeemable points for checking into stores,
writing product reviews and making purchases,
which they can use on future purchases.
Additionally, the app also helped save Muji
millions of dollars from printing traditional
flyers.
• The app has over 2 million monthly active
users today and has indeed successfully and
substantially enhanced the customer
experience for Muji
Muji Brand
Architecture
Muji retail store:
● This is Muji’s primary brand where it offers all its home products from socks to luggage bags to food
items. This represents Muji’s original offering when it was first founded in 1980.

Muji Outdoor:
● As part of Muji’s sustainability efforts, it operates three campgrounds in Japan across Niigata, Gifu and
Gunma, three scenic areas well known for outdoor recreation, occupying a total of approximately 230
hectares of forest. Muji provides everything from boats, tents to fishing rods.

Muji Home:
● In August 2017, Muji launched the Muji Hut in Japan, its brand-new prefabricated house. It is designed
to be functional in any landscape, including mountains, oceans and gardens. Retailing for USD 27,000
and measuring 100 square feet

Muji Hotels:
Muji has opened hotels in Shenzhen, Beijing, and most recently in Tokyo on the 6th – 10th floors of Ginza in
March 2019. Its hotels to help consumers experience the Muji philosophy through its products and service.
The Muji sustainability approach
Muji also focuses its sustainability efforts on projects with the aim of
reaching out to and impacting local communities. Its corporate website
indicates the firm’s CSR program “100 Good Things”, which are broken
down into 5 pillars:
1. Think Earth
2. Connect with Locals
3. Think as Consumers
4. Prosper with Suppliers
5. Respect Co-Workers
06. Conclusion
• The Muji brand was set up to be all about simple, functional, minimalistic and
quality design, and this is reflected in every aspect of the company’s operations,
from manufacturing to design to communications. From its retail stores to its
hotels and campsites, the brand is one of the fastest growing brands from Japan
and Asia.

• One of the secrets behind Muji’s success is its ability to offer a consistent design
philosophy that consumers can identify with, across its portfolio of brands.

• Brands that withstand economic cycles stay true to their core. Although Muji has
been innovative in the design of its home products and lifestyle experiences, it
needs to continuously invest in innovation to maintain the focus on its superior
design.
Thanks!
Do you have any questions?
ismoilovabduqodir21@[Link]
+998 91 331 77 50
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Resources
● Topic 4 – Segmentation Targeting and Positioning | Marketing Management Blog ([Link])
Gynecologist evaluating pregnancy with patient
● Muji - The Global Strategy Behind The Japanese No-Brand Brand – Martin Roll
Pregnant woman using a medical device
● What's So Special About MUJI, and How is it Different From IKEA? ([Link])
● What is MUJI? | MUJI
● The Differences Between Japandi and Muji - Home Design Institute – Paris
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