Case Study: The Marketing Strategy Of Daiso

Superior Essays
On this winter break, I had approximately fourteen days of a worthy holiday currently from APU. Since I am a Daiso admirer, during this 14 days I decided to do a slight research about the marketing strategy of Daiso. So I went to take a glance at Daiso which is located in Mochigahama and look at how they do the display, how they do the pricing system and how they can manage the profit from the cheap price, etc. So, what is a Daiso?
Daiso is classified as one of the extreme value-store. This is the place where buyers can experience many innovative ideas which cannot be paralleled with the other ¥100 shops. Daiso has over than 3,000 stores now, not only in Japan, but all over the world. And each month they targeted to open 10 to 20 new shops.
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While looking around Daiso, I have been thinking why they can give a cheap price for such a good quality. Daiso sets it’s plan contrarily compared with the other ¥100 shops. They do not sell closeout or second products or merchandise from the factory like other ¥100 shops do. In contrast, they can keep up selling those products with low prices by purchasing directly from manufacturers in a huge quantity. Although the prices in Daiso are low, if we can find a similar products sold elsewhere than Daiso with cheap price, in many cases the quality of the item will reflects a low price. The stock of the items sold in each Daiso is assorted recurrently in order to increase the amount of the repeat buyers. In 2004, Daiso started to sell few products which priced at multiples of 100 yen, such as 200, 300, 400 or 500 yen. The examples of the products retailed would be stationary, household …show more content…
The availability of the product is highly dependent on the level of backup stock carried. If a product is well received and highly sought after, more stock for that product will be carried. The majority of Daiso’s merchandise are non-perishable. In the event of vendors having a longer lead time, more stocks must be ordered to maintain Daiso’s desired level of product availability. Additionally, the allocation of merchandise to stores is based on demographics and lifestyle trends of its shoppers. For example, in some Daiso, they provide a deeper assortment of beauty products, as they are highly sought after by shoppers there. They also sell seasonal merchandise offerings, which only can be bought during Christmas, Chinese New Year and Valentines Day. Hence, a higher level of seasonal novelty items are brought in to maintain a high product availability. The method of their retail pricing is by using the “Everyday Low Pricing Strategy”. They sell their products with fixed pricing of ¥100 or multiple for all items. Coupled with reassuring the customers of low prices all day and everyday. Moreover, Daiso has a psychological effect that merchandises are cheap, therefore people can buy more items.

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