MUJI Stationery Line to UWEC BookstoreMKTG 337 Written Project

Yen Lyn Goh10/29/2017

About the Seller: Muji

Historical perspective

Established in 1980 by a Japanese retail company named The Seiyu,Ltd., Muji was first a private

brand that started with 9 household and 31 food products. Muji, simply translated as “no-brand”

or “no-logo” in Japanese, has been known for its distinguishing minimalist design as well as

emphasis on environmental sustainability with which they avoid excessive waste of packaging in

their manufacturing process. The company commenced by selling a range of household and

lifestyle products including men and women clothing, furniture, kitchen appliances, and healthy

food items. The minimization of packaging and streamlining of manufacturing processes are

great attributes to MUJI’s market position as a “reasonably-priced” brand, with its retail prices of

products “lower than usual” by the materials it selects.

It is almost impossible to see MUJI’s advertisements via traditional platforms, but the company’s

public recognition and success are accredited to word of mouth, a hassle-free shopping

experience, and no-brand movement. A marketing research suggests that Muji could be applying

Blue Ocean Strategy by constructing its own “brandless” brand that challenges conventional

marketing strategy in which many firms compete against each other in manifesting their brand

style and the image of “my brand is the best”. Despite adopting the idea of “anti-brand”, Muji

has become an identifiable brand itself due to its distinctive designs and product palette.

Brand Image

The four key components to Muji’s philosophy comprise “reasonable price; simple, moderate,

and functional design; basic, understated colors; essential parts for people to design their

lifestyles at their discretion.” The company has a consistent brand image, and is discernible in

terms of product design that reflects natural earth color - black, white, khaki, beige, brown, and

silver. In addition, their package that wraps up its products is made of clear cellophane material

that provides transparency of content to the consumers. Their goal is to release products that

create an ideal sense of satisfaction in their customers, and help them understand the beauty of

living in elegant simplicity.

Distribution Channels

Muji merchandise are mainly manufactured in three factories in Japan, and distributed to its 418

retail outlets worldwide. Muji also supplies products to a design store at the Museum of Modern

Art and maintains a flagship store in New York City. Other than retail stores, Muji had started its

online stores since 2000 for the UK, US, Europe and Japan markets. Recently in September this

year, the company opens its first store in Brooklyn, located in one of New York City’s most

prominent arts and culture districts - Williamsburg. In total, Muji currently owns 14 stores in the

United States. As for its manufacturer, Muji company has not disclosed any information

regarding where it sources the materials from.

Types of Customers They Serve

There are three major market segments of Muji that can be categorized into marketing-weary yet

design-savvy customers, environmentally-conscious customers, and finally thrifty customers

who prefer frill-free products. Muji aims to attract consumers who are generally satisfied with

items of basic appeals, instead of chasing after brands for the purpose of vanity and prevalent

trends. This company is especially well-known with a younger demographic ranging between

the 20s and 30s.

Financial Information

Muji’s 2014 Annual Financial Report shows a gradual increase over four years in many aspects,

including revenue from operations, operating profit, net income and return on equity (ROE).

Based on a more recent financial report, the company obtained a revenue of 333,281 million

Japanese Yen (approximately $2 billion) from all operations in 2016 alone. All the figures from

2014 are shown in the infographic after the table below. However, there is a -2.6% change of

overall gross profit margin for Muji in 2014, as shown below.

About Muji Stationery Line

Summary of Product Line

The products from Muji Stationery Line that will be featured for sale include pens & pencils,

highlighters, notebooks & memos, and planners & calendars. The pens and pencils can come in

many packaged forms, whether in a container of 6 or a container of 10. This is the same case for

highlighters. While pens can also be sold individually and do vary in colors, refillable inks are

available for different types of pens. There are several nibs and grips of pens, such as 0.25mm,

0.38mm, 0.5mm, and 0.7mm for the needle size; hexagonal, round or rubber for the grip types.

The retail price for this category ranges from $0.75 to $14.00.

The notebooks can be found in hardcover or paperback editions, and their materials are either

recycled paper or plantation paper. On the other hand, sticky memos, memo pads, and word

cards will be great options to target at university students. The notebooks offer daily, weekly,

and monthly layouts and the planners cover the span of either the full academic or calendar year.

Some plain Muji planners also allow people to fill in the dates and year by themselves, and some

may contain monthly planning boxes. The retail price for notebooks and memos can be

somewhere between $1.25 and $11.50, depending on the size as well as thickness of cover and

book.

Features, Advantages, and Benefits

A unique shelf layout that encompasses all the above stationery items is the primary competitive

advantage for Muji. It keeps all the merchandise organized and centralized at one place, so it

does not get scattered around every corner of a store. The next competitive advantage Muji has

over its stationery-emphasized competitors is personalization. Customers like to be able to

personalize their own belongings with their names or favorite graphics on it. All Muji stores are

designated with a stamp station where customers can choose rubber stamps with graphics to

customize their notebook cover design. This little act of creativity would bring in more fun to a

customer’s shopping experience. For instance, many who are not good in crafts but are interested

in getting a thoughtful gift for friends can consider personalizing Muji notebooks or birthday

cards/envelopes with these rubber stamps.

Most of the time, people discard their pens once they run out of ink.

However, this will not be the case if they start using Muji pens. Muji’s

core principle in manufacturing its products is sustaining the

environment. Adhering to their firm philosophy, they produce a wide

variety of refillable inks for pens, so that not only people would be aware of not throwing inkless

pens away, but also be money savvy in getting these refillables at a cheaper price. The final and

most important competitive advantage that Muji never fails at being consistent in is its high-

quality materials. Muji ballpoint and gel pens are smooth to write, and their ink does not leave

smears on any surface. This would be an all-time favorite for every left-handed person who

dislikes leaving smudge on their hands. Not only that, Muji papers can rarely be seen with inks

that bleed through them as they are of great quality that Muji can offer at an affordable price. In

other words, the quality of all the stationery items is worth the price.

Following the “BuJo” trend, which is a shortened phrase for

Bullet Journal, many individuals like college students and

business professionals seek a practical planner that can be

used for organizational planning for all events or schedules.

Muji’s spiral-bound dot grid notebooks, which are priced

between $4.00 and $9.50 depending on the size, are popular

among the bullet journal users. The dot grid pages provide

structure and uniformity, but also allow for free rein for the

more creative types. Bullet journal users usually find these

planners aesthetically appealing as they can fit in with any occasion, whether it be a business

meeting or a brainstorming session in a writing workshop. By creating distinctive covers of their

bullet journals or planners, it forms a sense of belonging between the owner and the notebook.

For visual learners who like to code their notes with

colors, they may prefer to have a set of colorful pens and

highlighters for notetaking. Muji is highly favored by

students who learn facts and knowledge visually. It is also

proven by some scientific research that color-coding helps

us to retain our memory better and makes us a more

efficient thinker. As mentioned, these Muji pens and

highlighters will be displayed on a designated shelf

whereby shoppers get to test the colors of pens and

highlighters on a notepad to see if they appeal to them or not. They may have different

preference for special shades of colors. There are also some shoppers who do not mind buying a

whole case of 12 or 24 colored pens, which is versatile because once the pens are all completely

used up, the case can be used to store other things. Furthermore, Muji also produces highlighters

that come with two different tips; one for underlining words, and another for highlighting

sentences.

More on Retail Price

Products clockwise from left upper corner: High quality smooth paper notebook ($4.50), refill for selectable ballpoint pen ($1.25), retractable smooth ballpoint gel ink pens ($2.00 each), high quality smooth paper double ring notebook grid ($5), glue tape ($4), correction tape ($4), white plastic eraser ($1), black plastic eraser ($1), recycled paper stickies index ($3), ABS ruler ($1.50), schedule notebook ($7-

$15), PP pen case ($2), highlighter with window ($2), PP double pen case ($3). 

Return and Warranty Policy

If a customer is not satisfied with their purchase of stationery for any valid reasons, he or she

may return the merchandise within 30 days of delivery along with an original packing invoice.

The downside of their return policy is that any purchase from Muji Online Store cannot be

returned to the retail store locations. The items are to be shipped back to a specific location if a

customer wishes to return their product or request an exchange of the specific item. Most refunds

and exchanges will take about two to three weeks of processing time. No warranty or guarantee

is provided by Muji as to the accuracy, timeliness, performance, completeness or suitability of

the information and materials found or offered on their website for any particular purpose.

About the Competitor: Pilot

Summary Description of Pilot Pen Line

Pilot Pen could be an indirect competitor to Muji Pen as it is one of the brands that is currently

sold in the university bookstore. The company has established a well-known reputation in North

America, and is the third largest writing instrument company in the States. The corporation

offers a great variety of pens suitable for any occasion, including fountain pen, ballpoint, rolling

point, retractable tip, erasable ink pen, gel ink, calligraphy pen, highlighter, and permanent or

whiteboard marker. Among all these pens, the top-selling models are G2, Precise V5/V7, Dr.

Grip and Easy Touch.

Features, Advantages, Benefits

Pilot Pen encompasses similar features, advantages and benefits to what Muji Pen

has, and may be situated at a higher advantage over them due to several reasons.

Both are Japanese brands that ensure premium quality for their products. There

are relatively more types of writing instruments produced by Pilot that are not

only limited to ballpoint or gel ink pens. Their pens usually come with rubber

grips, which are very comfortable in our hands as we use them for a long period.

They also use recycled items to create pen holders, which can particularly be seen

on B2P Bottle-2-Pen Gel Roller. This model is made from 89% post-consumer

recycled water bottles, and just like any other Pilot pens, it is 100% refillable. The

company hopes to reduce unwanted pens in landfills, thus they keep working on

releasing pens that are sustainable and recyclable. The different colors and types

of refills can be found on the website, which are easily accessible without having a user go to

stationery stores to purchase them. Pilot pens provide a smooth, effortless, and smear-free

writing experience overall. Besides offering affordable pens, they also place their focus on

luxurious fine pens that businesspeople usually carry in their briefcase.

One benefit that is found in Pilot Frixion is the eraser at the top of pen that helps clear away the

pen ink without damaging a paper. The reason this works is because of the thermo-sensitive gel-

ink formula that can disappear on a paper with erasing friction. Not only do pens come with this

unique eraser, Pilot Frixion highlighters also share a similar feature. This comes in handy for

people who like to keep their paper neatly written or highlighted. They are available in many

types of colors as usual. Customers who support Pilot pens are also indirectly supporting a good

cause with which Pilot is having a 2-year partnership. Through Back-to-School 2017, Pilot will

be donating $125,000 to Stomp Out Bullying that works on “erasing” bullying issues in US

schools. Pilot also incorporates Breast Cancer Awareness and Research campaign in some of

their pens, specifically pink gel ink pens and highlighters with a pink ribbon imprinted on them.

Pilot will donate 10% of gross profit from each pink ribbon product up to $130,000 to the

National Breast Cancer Foundation. This form of corporate social responsibility is not seen with

Muji pens, however.

The trend of personalization is becoming more prevalent these days, which prompts Pilot to offer

this service to online shoppers. Buyers will be able to choose their preferred font and text to

appear on the pen, or even customize a logo or an icon on the pen itself. This also comes with a

bulk discount, so that the more a customer orders, the cheaper the price would be for each unit of

pen. Here is an example of bulk discount for Dr Grip Ballpoint Pen.

Quantity Price

6 - 24 $10.74/ea

25 - 49 $10.29/ea

50 - 1,900 $9.85/ea

Retail Prices and Order Requirement

There is a product catalog on Pilot’s website that contains all the descriptive information and

prices of the products they offer. Pilot pens are mostly available in Mass Market Retailers or

Office Supplies Retailers such as Walmart, Target, Amazon; and Office Depot & Office Max

and Staples. There is no minimum order requirement for Pilot pens. Buyers can get free ground

shipping with an order over $4.99, and the items are shipped nationwide and to other US

territories. A company can also personalize Pilot products with their logo that does not violate

any copyright laws.

Guarantees

Pilot guarantees all of its product except for Fine Writing and Namiki product purchases. Hence,

if a customer is unsatisfied with the performance of any Pilot product, he or she can return the

product and pay for the postage. Then, Pilot will replace it free of charge with a comparable

product. Here is a list of products that come with a warranty:

Lifetime: Emperor, Yukari Royale, Yukari, Nippon Art 3 Years: Sterling, Justus 95, Falcon, Fermo, Vanishing Point 1 Year: Custom 823, Custom 912, Custom 74, Heritage, Stargazer, Stanza, Ageless, Prera,

Knight, Axiom

Return and Repair Policy

All Pilot items must be returned within 30 days of purchase for a refund or replacement. They

must be in “as new” condition or in original packaging when returned. Like Muji, Pilot requires

customers to include the original packing invoice, the reason for return, and a statement of

whether they prefer a refund or a replacement. This return policy only applies to items purchased

directly from the Pilot Pen website. Customers will be able to receive credit within 7 to 10

business days, but shipping charges are non-refundable.

What is unique about Pilot’s repair policy is that customers can send their fountain pens in for

repair if they malfunction or if the ink does not come out. Though, there are some instructions on

the FAQ page of how fountain pen users can resolve the issue with the fountain pen by

themselves before sending in for repair.

About the Buyer: UWEC Bookstore

Background Information

The university bookstore sells a wide range of course textbooks and

general interest reading materials; university merchandise such as

mugs, water bottles, backpacks, hats, and clothing; as well as computer

and school supplies. It has operated under Barnes & Noble College

Bookstores since 2001. This bookstore allows undergraduates to rent

textbooks and other course materials from University Bookstore's

Instructional Resource Rental Department, which is funded by a portion of college tuition. The

textbook rental inventory currently amounts to 80,000 books and is valued at $12,600,000.

Types of Products/Service

Their service alongside that also includes customizing clothing and gifts for organization or

events. The clothing is of well-known brands, such as JanSport, Nike, and Champion. In store,

there are gift cards for Barnes and Noble and restaurants, phone accessories, comics and

magazines, candy, lip balms, and other miscellaneous products. Besides selling fiction and

nonfiction that are always 20% off, they also offer a special-order service for books that helps

students save shipping fee through Barnes and Noble website. On certain occasions, book events

for visiting authors, campus authors, and general book groups are also organized by the

bookstore.

Image of the company

UWEC bookstore has always been known to promote the university’s ‘Blugold’ spirit by

releasing different types of daily items that are imprinted with the school emblem. The bookstore

is strongly advocated by many UWEC campus ambassadors to parents and prospective students

due to its high importance and visibility on campus. It leaves a favorable impression on outsiders

with their full display of UWEC merchandise that receive great reviews regarding the quality and

comfort of clothing.

Types of Customers

Being located in a student center, the bookstore mostly attracts students who are in need of

textbooks, course materials, and stationery. Their second market segment would be the

university alumni who are loyal supporters of the school and interested in buying UWEC

merchandise as a gift for friends or visitors.

Return and Purchasing Policies

Students are able to return their rented textbooks by due date and sell their used books to the

bookstore through a buyback program. They will also be required to return the book of the class

they drop, and can only checkout textbooks for courses they are enrolled. As for the clothes,

there is no specific period within which customers must return them, and they are always

welcome to return if the size does not fit, as long as they bring along their receipts and keep the

price tag on.

Individual Buyer Information

Position

The potential buyer of the UWEC bookstore would be Kevin Everard, who is a

General Merchandise Manager of the store. He oversees all the merchandise

sales at bookstore which includes clothing, gifts, school supplies, and orders. So, he will be the

person who makes the crucial decision regarding adding Muji stationery into the store.

Personality

I would assume that the General Merchandise Manager of UWEC bookstore is a mix of driven

and amiable person. He is capable in concentrating on obtaining the best sales for the bookstore,

but at the same time being considerate of others’ opinions and perspectives. Buyers who possess

the traits of a driver would be very decisive, practical, and direct on what they want and what

they aim for. Working for the bookstore since 2009, the manager has shown loyalty to what he is

doing in his job, which is one of the important traits of an amiable person. He is also responsible

for hiring and training the bookstore’s student support staff, which requires him to be supportive

and easygoing, so that the staff would feel comfortable communicating with him. It would be a

pleasant sales process if I were to sell Muji product to him with his great decision-making ability

and friendly character involved in it. One of the challenges of selling to him as a highly-driven

individual could be intimidation from his over-assertiveness or his needs of direct actions.

Other Individuals Involved

Another individual who would be involved in this buying decision is the Store

Manager of the bookstore, whose name is Joseph Picconatto. He is responsible

for all bookstore operations, donations, training, and development. Being in this

critical position, he observes the daily sales of bookstore and monitors the

displays and inventory in store to ensure everything is in place and in the right category.

ReferencesPilot Corporation of America . (2017). About . From Pilot: http://pilotpen.us/about

Ryohin Keikaku. (2017). Corporate Information. From Ryohin Keikaku: http://ryohin-keikaku.jp/eng/corporate/

Ryohin Keikaku Co., Ltd. (2014 ). Annual Report 2014. From Ryohin Keikaku: https://ryohin-keikaku.jp/eng/balance/pdf/annualreport_2014_e.pdf

Stationery Trends . (2017, July 26). Find the perfect back-to-school stationery collection at MUJI Square One in Mississauga. From Stationery Trends: https://stationerytrends.com/news/find-perfect-back-school-stationery-collection-muji-square-one-mississauga/

University of Wisconsin-Eau Claire. (2017). University Bookstore: About Us. From University of Wisconsin-Eau Claire: http://www.uwec.edu/Bookstore/about/index.htm