Value proposition and segmentation

The Muji Brand: No Frills, Simple Design

Muji actually is more focusing on psychographic segmentation because they try to advocate certain lifestyle. 

Traits of Muji Market intended audience:

- Demographic: Consumers are in age 20-s and 30-s 

- Psychographic: 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 environmental friendly stance .

3.  Consumers who are thrifty and looking for "frill-less" products.

In today’s Experiential Economy, Muji is successful at targeting its first and second segment of customers; they are demanding authenticity.

Muji's products is practical, affordable yet stylish. 

Muji’s products are made from natural materials, possess originality in their designs, exceptional pursuit of its brand values for excellence, make referential to the Zen minimalist, and exerts influential authority to pursue environmental sustainability.

 Muji’s “no-brand” is accomplished because the customer pride themselves as being sophisticated to recognise quality choice which is encoded in the item.

In Japan, “Muji is staggering cheap as it achieves cost leadership through production efficiency and saves on  building efforts .” This allows them to be popular among the price sensitive customers – the thrifty target market. 

Muji is distinguished by emphasis on recycling, avoidance of waste in production and packaging, and conservation of natural resources.

Aside from this, simplicity in design is Muji’s forte. Muji cultivates a niche with its minimalism design using standard nutural colours and clean cut lines which embody creativity .

Value proposition

Human Traits

- Caring; responsibility they show in recycling; eliminating waste, streamlining manufacture and refusing to use raw materials.
- Honesty; transparency of the brand and company which they had when Muji started, and they still have today.

- Creativity; taking an everyday product and simplifying it, making it desirable and interesting.

Values

- Packaging is minimal; packing literature is information only. 
- Materials are chosen for their natural fibres and quality. 
- The manufacturing process is also streamlined for efficiency to eliminate waste and reduce costs. 
- Products that don’t sell one season are recycled and resold.

Codes/ Principals of Coexistence with the Earth

- Complying with Japanese and Overseas laws. 
- Restriction of the use of substances that have a significant impact on people or the environment. 
- They endeavor to make natural materials traceable. 
- Reduce waste by standardizing modules, facilitating disassembly and reducing packaging. 
- Communicating with all of the people involved in Ryohin Keikaku/ Muji.

Benchmarking/ Promises Muji Works To

- No logo, high quality goods. 
- New simple products at reasonable prices. 
- Simple, functional and affordable.