Evaluation of the Marketing Strategies Free-Samples â€Myassignment

Question: Evaluate the Marketing Strategies and Focus on the Market Segmenting, Positioning and Targeting. Answer: Introduction Chanel is a French high fashion brand, it offers a variety of luxury products for its customers that ranges from, clothes, watches, accessories, jewelries, shoes, bags and perfumes. House of Chanel was the name given to the brand when it was founded in the year 1909. The founder of the brand was Gabrille Benheur most popularly known as Coco Chanel. The first of the stores of the company was in Paris, later the brand expanded and spread throughout the world. Chanel is one of the most famous fashion brands in the world. Stores of Chanel are in Europe, North America, Central America, South America and Asia. The target customer of the band Chanel is both Men and women, who love fashion and have the ability to understand fashion. People who can carry the high fashion clothing of Chanel are the mostly the customers of the company (CHANEL. 2017). Aims Marketing strategies need a lot of research; companies invest a lot of money in market research so that they can make efficient marketing strategies. One of the most important strategies of the companies are segmenting, targeting and positioning. These strategies help the marketers a lot, in determining who their target customers are where they should locate their stores, how the market will be classified and what will be the aligning strategies for each of the market classification. These strategies help them gain competitive advantage. The report aims to focus on the market segmenting, targeting and positioning strategies. The customers of Chanel belong to the behavioral segment of Market. The targeting and positioning strategies are mentioned below. Segmentation Segmentation is the process by which the large market units are divided into smaller markets; all these smaller markets have more or less features that are similar in nature. The idea behind the market segmentation is to to make the subsets of the whole target market of any company. These target markets are divided on the various factors or can be defined as characteristics like, taste, preference and demand of the customers. It is a small unit that exists within a large market which have customers with similar thinking. Any particular market segment have individuals who have similar interests and think on same lines. The response of the customers of the same line is same influenced by the fluctuations in the market (Schlegelmilch, 2016). The basis of the segmentation are Gender Gender is one of the most common bases of segmentation for the marketers, the marketing strategies for men are different from that of women, because the taste and preferences of the two segments are entirely different, their needs are different. Any male would not buy products that are designed for a female. This particular segmentation a plays a very important role in manufacturing of jewelries, watches and clothes because fashion of men and women are not similar. Age Group Age group is also one of the most important determinants for market segmentation. Many products of the small kids are different from the products of the teenagers, all the age groups have different tastes and preferences and there are also different, therefore the marketers target these groups separately. The strategies are differently made for the different age groups. There are certain products that are unique to different age groups, some of the products are mentioned below Age group (0 to 10 years) Toys, Nappies, Baby food, Pram Age group (10-20 years) - Toys, clothes, books, school bags Age group (20 years and above)- Cosmetics, anti-ageing products, magazines, clothes and many more. Income Incomes of the customers determine which type of products they will buy. Low income customers will buy products that will satisfy his or her basic needs, he will not buy luxury products. The preferences of different income groups are different so the marketers make strategies separately for the different income groups. There are three categories of the different income groups they are, High Income Group Mid Income Group Low Income Group Stores that serve the high income group usually have different range of products from the stores that serve for the low income group holders. For example, Pantaloons, Carefour, Shoppers stop target mostly the high income group holders. The small retails they are mean for the medium and low Income groups. Marital Status The segmentation of the market can also be done on the basis of marital status of the customers. Tour operators have separate package for people who are single and they have special honeymoon packages for the couples. In many hotels for married couples there are special suites. So it can be said the marital status at times becomes a factor on the basis of which the services for the customers are often decided (Schlegelmilch, 2016). Occupation The occupation of the customers also is a determinant for the marketers for the segmentation. There are different types of equipments, accessories and costumes required in the different occupation. Stethoscope is equipment that is needed by the medical staffs mostly therefore the marketers will segment their customers based on their profession. Similarly, there are other products that are used by the different people in different occupations (Venter, Wright Dibb, 2015). Types of market segmentation Demographic Segmentation It is a very simple market segmentation and one of the most widely used market segmentation. In this segmentation, which is based on various variables, all the customers are divided. The companies to increase their market base use it. The determinants of demographic market segment are, age, gender, income religion, nationality, race and many more. The automobile companies have different ranges of cars that is for the people of different age groups. Companies like Audi and BMW only target people with high-income group, whereas the Maruti is for people who are medium income levels (Schlegelmilch, 2016). Psychographic segmentation This segmentation is based on the lifestyle of the target customers. The attitudes of individuals towards the various products become a determinant in deciding which product is to be bought. It is the interest of the individuals; lifestyle and values that make the marketers segment these customers and have separate strategies for targeting these customers. Luxury product customers fall under this market segmentation. Similarly gender also classifies the market; there are separate range of products that are offered to Men and Women. Behavioral Segmentation This segmentation is done on the basis of the behavior of the consumers, use of the products and the decision making of the customers. The preference of people who are active in sports will be different; if they will have to buy shoes they will mostly prefer sports shoes where as people who like casual clothing will pick a simple casual shoes. This type of segmentation can be applied in the area of smart phones. The Apple I phone is preferred by people who like spending money in luxury items; where as the smart phones of Samsung are bought by the people who like android OS. The buying behavior of the customers is one of the major factors that determine which of the market segment they fall (Sperber, 2016). Geographic segmentation The market segmentation based on various geographical areas can be defined as geographical market segmentation. This is a major factor to be considered, it is not possible for the marketers to make same strategies for people living in two different countries. The values, attitudes, tastes and sometimes even the needs of people living in two different geographical regions. The people of Western countries are very different from the people living in Asian countries. Woolen garments are promoted throughout the year in colder areas where as in hotter regions the woolen garments would be sold all through the years. McDonalds does not serve beef products in India because of cultural values, otherwise it is served in all around the world (Sperber, 2016). Customer Segmentation of Chanel Chanel is a luxury fashion brand, the customers of Chanel are the premium class customers, they are not sensitive to the price of the product, and it is income, the behavior and psychographic factors that contribute in segmenting its customers. The customers of Chanel come under the behavioral market segment. The premium clients are behaviorally very different from the other customers. For them the price of the products shows the class of people, it is a symbol of status for them and so they buy products that are of higher prices. They do not buy products their basic needs rather these kinds of products are bough to fulfill esteem needs (Ko et al., 2017). Targeting Targeting means focusing on a particular market segment, the chosen company is Chanel that is a French luxury fashion brand. The products of Chanel are basically luxury fashion garments, these products are for the segment of the society that belong to upper class and are very rich. The people of this particular market segment buy products for enhancing their status, they are not meant for satisfying any basic needs of the customers, these products fulfill the esteem needs of the consumers. Using the products of Chanel is a status symbol for the consumers. The buying behavior of the consumers who belong to this segment is different, the customers of this particular segment are not price sensitive, and rather the customers of luxury segment prefer to buy the high cost products (Shani Chalasani, 2012). Targeting the customers is a very important strategy that marketers have to make. A proper decision making is only possible when the marketers have ample amount of information about the target market for which their products are designed. That is the reason the marketers do a lot of research before planning which market segment are they going to target. Setting the target depends on various aspects, based on the type of product, price of the product, accessibility and availability of the product. If the distribution channel is not good in any particular area, the people residing in that area usually do not become the target of the markets. Target is basically the potential customers that any organization is planning to focusing on. Customers have different taste and all the customers are not same. Many factors play a very significant role in determining which product is suited of which type of customers. Companies produce and sell the goods to the customers whose needs can be fulfill ed by those products. All the other strategies are made according to the target, like the pricing strategy. Usually if the product is targeted towards the middle class they opt for penetration marketing strategy (Liao, Chung Lin, 2015). Targeting strategies of Chanel Chanel mostly target women who love fashion and does not care about the high price of luxury fashion garments. Chanel have clothe lines for men as well but most of the items are women centric. The cloth lines, accessories, watches, jewelries, shoes and leather bags are all designed keeping in mind the upper class of the society who have sufficient money so that they can buy the products of Chanel. Advertisements and promotional events are exclusively carried out in the areas where people of upper class visit on regular basis. The high price and of Chanel does not attract the middle class people that are mostly price sensitive therefore the brand does not focus in making their target customers. Items like jewelries that are made of gold, diamonds and other gems are especially made for the women. In the mens accessories items like cufflink are included. Chanel is one of the most famous fashion luxury brand that conducts its show and events where the design of the haute couture are show cased to the premium clients. Chanel is mostly operational in Europe, North America, south America and in Asia it has stores in China and in Shanghai region (Green Keegan, 2015). Advertisements of the products of Chanel are done through high class fashion magazine, which has a glossy appearance. Chanel is one of the top fashion brand in France, its competitors are Gucci, Prada and Louis Vuitton that are also quite famous luxury brands that are famous all around the world (Han, Nunes, Drze, 2015). Positioning Positioning refers to the location or market where the brand is placed. Positioning is done as per the demand of the product in that particular place. A lot of factors help in determination of the most appropriate location. Factors like distribution channel play a very significant role in positioning of any product, though Chanel has exclusive stores in all the places. These stores have almost all latest design and products of latest trends (Dibb Simkin, 2017). Positioning strategies of Chanel The stores of Chanel are available in France, London, other parts of Europe, in USA, other parts of North America and South America; in Asia they have stores in China, Japan and India. The boutiques of Chanel are present in Paris. The first Chanel was opened in France. All the stores are present in the most affluent parts of the Cities, because they are meant for the upper class of the society. The stores of Chanel are available in almost all the parts of the world because it is one of the most popular brands in luxury fashion. The locations of the brand is in the affluent areas, since the customers of Chanel are only the premium customers therefore opening stores at any part will be a waste of resources (Hollensen, 2015). Chanel has also effectively positioned itself in the minds of the customers; they are a well known brand. The brand has created goodwill in the market that by providing the best products to its customers. The customers for the uniqueness it provides like Chanel. The striking thing about Chanel is that they stick to their core values, the fashion designs of Coco Chanel are still used by the brand, it has not been changed. This brand is very famous among the female (Armstrong et al., 2015). Perceptual and positioning map of Luxury fashion brands Han, Nunes Drze, 2015 Evaluation of Perceptual map and recommendation Chanel has been positioned so because the customers of Chanel live in the affluent areas of the cities and that is the reason the positioning has been done according to the convenience of the upper class of the society who are the customers of Chanel. The major cities of the world are selected for positioning of the brand according to the demand of the customers. Chanel has been represented as high status brand as per the perceptual map because customers of Chanel belong to a rich and affluent societies. The price of Chanel is the symbol of prestige for its customers as per the perceptual map, marketers knowing this fact has been positioning the company the company in Paris, London, developed cities of South America, north America, Asia and other developed parts of the world. Chanel can open its stores in Asia where there is huge demand, like in India the stores of Chanel are only in two cities; it can open more stores in India, China and Japan. Conclusion Segmentation, targeting and positioning of any product in any market is a very important market strategy that all the organizations have to take. If the decision is not taken wisely then the brand might incur loss. Making appropriate market strategies for the right market are important because the sales and profit of companies depend largely on the strategies they make for the different segments of the market. The marketers are needed to smartly target their customers, they cannot make mistake, and targeting wrong customers will not be profitable rather it will incur lot of cost. Positioning of the stores is very crucial; they should stores in the location that will attract lot of customers. In crowded market places a lot of customers can be attracted. The Marketers are therefore required to do a market research before they plan to target any particular market. The strategies of Chanel for segmenting, targeting of its customers is very effective. The companys location is in the most affluent parts of the cities, this is also a very effective marketing strategy because the target customers of Chanel are upper class of the society that has high income, so the location should be in those areas where the customers live. References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015).Marketing: an introduction. Pearson Education. CHANEL. (2017).CHANEL Official Website: Fashion, Fragrance, Beauty, Watches, Fine Jewelry. [online] Available at: https://www.chanel.com/en_US/ [Accessed 5 Aug. 2017]. Dibb, S., Simkin, L. (2017). Market segmentation: diagnosing and treating the barriers.Industrial Marketing Management,30(8), 609-625. Green, M. C., Keegan, W. J. (2015).Global marketing. Prentice-Hall. Han, Y. J., Nunes, J. C., Drze, X. 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