“MUJI Roshia” Action plan

The action plan consists of three perspectives: the actions we are planning to perform in short term (less than 1 year period), medium term (1-3 years), and long term (more than 3 years). 

• In the short term we are planning to enter the russiamn market, open the stores there, and perform the promotion strategy. 

• In the medium term we will continue our promotion strategy, interact with consumers and evaluate the first steps of our strategy.  

• In the long term we consider extension of our product line, expansion geographically, and creation of new campaigns.

Short term (< 1year)	Medium term (1-3 years)	Long term (> 3 years)
Opening of retail stores in Moscow., St. Petersburg. Creation of online store, website in Russian Communicate brand value and philosophy to consumers Press release announcement, promotional events Social media and networks involvement	Promotion strategy (word-of-mouth, publicity) Interaction with local consumers Survey of customer responses to the customer service, in store experience, product lining, price, etc. Evaluation (track facebook and twitter likes/followers - who/how many people are talking about us?, etc.)	Product line extension Geographical expansion (opening of new stores) Environmental campaign

“MUJI” Potential Consumers' Questionnaire

With the very launch of the blog it was decided to study the potential Russian consumers' attitude to the new brand establishment on the Russian market, thus several question were asket via social networking.

As a result, 425 people has kindly agreed to participate that allows us to come up with several conclusions, believed to be of a certain importance for the current research.

 

The survey in Rusian was conducted via ianketa service in the social network to identify the initial bases for further marketing analysis. Eighteen questions to consider the consumer behavior, brand awareness, market perceptions were asked, while the main conclusion may be drawn on the following topics:

 

•Japanese product perceptions; 

•Acquaintance with MUJI Brand; 

•Preferences in shop appearance; 

•Potential desire to purchase MUJI products; 

•Ecological awareness.

 

 The first question relevant in our case was to identify if in general consumers are willing to buy not so "lame" products and whether they consider themselves to be "into fashion"? The results prove that about 80% of people answered pay attention to trends that benefits MUJI for a certain degree, while the very brand awareness in Russia is extremely low at the moment, as about 87% have never even heard the name.

The phenomenon of COO may important in case of MUJI in Russia, as, ut is indicated below, Japanese product enjoy quite a good reputation in the country for their quality an minimalism - the features MUJI would like to provide first of all.

While knowing almost nothing about the brand potential Russian consumers appeared to be quite positive about the product range MUJI provides, thus about two thirds of the total number of people answered like the design of the goods and may think of buying some items - which is certainly a good sign for MUJI from the very beginning.

This point is proved with the design perception and stores' interior. As was indicated during the survey consumers may prefer the minimalistic interiors by MUJI and are ready to pay attention to the place where they buy products.

As we may realize from the table above - MUJI meets the requirments of potential Russian consumers almost for all the products we would like to recommend them to start with in Russia.

At the same time, prominent ecological approach the company pay much attention in different countries shouldn't prevail in imopratnce in the case of Russia, as people and the country on the whole are not ready yet to pay much only for the eco-friendly goods.

 

The questionnaire proved to be very useful in understanding the existing perceptions of Russian consumers. Based on the results got - we may proceed with some main conclusions. According to the analysis, if we consider no-brand, design, eco-care and quality as main merits of MUJI, then we should outline:

• Brand is completely unknown in Russia;
• At the same time Japanese product enjoy quite a good ratings among Russian customers;
• Almost for all the products MUJI may distribute in Russia clients need the features MUJI provides first;
• Customers are willing to buy the design goods;
• Customers are positive about MUJI’s store interior and product line’s appearance.

Financial analysis

In this section we would like to provide you with some financial information about the company, and the approximate budget for the promotion of Muji in Russia.

 

 Most of the company's sales are in the category of household goods (55.4%), then goes apparel (33.3%), food (9.8%), and other items (1.5%). 

 

The graphs and the table above show the financial highlights of Muji company for the period 2009 – 2013. The company is expanding its business and each year opens new shores in the home country and worldwide. In 2013 it has 585 stores, 206 of which are overseas stores. There is an increase of revenues from operations during the last five years, and the increase of return on equity and assets. The analysis of some financial highlights shows that Muji successfully performs on the global market and has the necessary finances for further internationalization in Russia. 


Communication budget
Online promotion and social networks promo will cost Muji at about 10 mln rubles for short term perspective (about a year)

Activity* 2nd weeks 4-12th week 40-48th week Total Online Advertising 2,8 mln rub 3,2 mln rub 3,2 mln rub 9,2 mln rub

This will include promo articles and advertising in Afisha, Look at Me, The Village and Esquire websites. Their target audience perfectly fit Muji ptime target audience, which will result in the efficient advertising.

Online promo & advertising:	Social networks:	Stores location:
The Village Look at Me Esquire Afisha	Facebook Twitter Vkontakte  Instagram	Stand-alone store City center Shopping Place