The Leading Fashion And Clothing Brand In Paris Marketing Essay

This article is cantered on the research of Chanel, one of the leading fashion and clothing brand in Paris, France. If an industry has made a decision to overcome the other market, there are many choices that'll be exposed. These options may include the price, risk and the amount of control that the company will come across. In entering a global business, it's important that the management Chanel should be able to choose a marketing access strategy and carefully choose the product that the company will market. Since Chanel would like to be known in global market, there are a great many other ways of choose from like global, transnational, international and multidomestic strategies. And because of the business position and fascinating strategy such as brand and branding of Chanel, the company are becoming known for their global consumer.

Since, fashion has invading people style of living the merchandise that is chosen to go international market is the fashion makeup products such as clothes, denims and other beauty makeup products. Hence, this paper offers a brand and branding strategy for the clothing company. The business is a well-known brand of fashion and clothing-Chanel.

It is now a widely performed view that the world economy has got into a more complex phase where individual national economies have grown to be inextricably linked. On this new world economy, resources and marketplaces have ceased to have the indelible national identity of days gone by. Constrained resources and markets that were once legitimately isolated have grown to be a lot more accessible to businesses that have obtained a global tactical vision. Towards the more visionary global businesses, the world is but a borderless environment with homogeneous consumers who have developed an unforgiving tastes for the most advanced and high-quality products. In response to the needs of the global consumers, the companies have developed global products. How such homogenised consumers are served, however, is a question of the strategic orientation of the enterprises and their ability to exploit the ever-evolving global economic environment. With this regard, Chanel, a company in Paris, France employed in clothing and a leader in fashion business shows significant impact with their consumers relating with their brand and branding strategies.

As mentioned in the business website, Chanel is a Parisian fashion house founded by the past due couturier Coco Chanel. Coco Chanel was named one of the very most elegant in the haute couture (Chanel, 2009). Focusing on luxury goods such as ready-to-wear, haute couture, perfumery, handbags, and cosmetic makeup products amongst others, the Chanel brand is becoming one of the very most recognized names in the luxury and haute couture fashion industry (Vernon 1966). As reported in Forbes, the privately organised House of Chanel is jointly possessed by Gerard Wertheimer and Alain Wertheimer who are the grandsons of the first (1924) Chanel partner Pierre Wertheimer.

From the annals of Chanel, a great deal of supermodels and stars became their spokesmodels. These supermodels and celebrities are not merely ordinary, they are believed as high-profile superstars and supermodels. As seen, Catherine Deneuve became their 1970s Chanel No. 5 spokesmodel, Nicole Kidman in early 2000s, and presently Audrey Tautou as their Chanel No. 5. Furthermore, the famous Marilyn Monroe became their 1950s Chanel No. 5 spokesmodel pictured spraying herself with a bottle of Chanel No. 5. The picture is obviously the most famous of all Chanel commercials, and continues to be one of the most popular advertisement photos in the history of marketing and branding, used in countless biographies, and still selling in great number of quantities as an art part and poster using Marilyn Monroe as the model (Chanel, 2009).

Aim and Objectives

Chanel is recognized as one of the world's preferred and preferred developer of apparels and clothing for man and women. Furthermore, Chanel is also known not limited to their fashion but as a result of quality of the clothes designed sturdiness and the funkiness of its clothes (Chanel, 2009). Furthermore, their handbags, shoes and accessories are also creating big sales and positive reactions from consumers. Through the online stores, Chanel provides the US, UK Western european Market and Asian Market exclusive clothing and even bag designs. Chanel also offers perfumes and wristwatches. The main purpose of this company is to provide luxury goods (haute couture, ready-to-wear, handbags, perfumery, and beauty products among others) in various countries all around the globe. The company has been known because of its strategy of providing fashion designs entirely for each country's choices and needs which was favorably accepted and loved by consumers. With this, the main aim of this paper is to evaluate the current brand management strategy of Chanel. Furthermore, this paper also considers the following aims i. e. to make clear the basis which the brand is to be valued, justify Chanel's brand decisions and display the role of marketing blend in helping their development proposals.


Currently, Chanel was glorified in Singapore with great labour and sufficient textile suppliers and garment manufactories. And because of its plan to venture in Vietnam, low priced labour can be possible in competitive value that could cut down Chanel's development cost. Sufficient suppliers could provide Chanel with discount and various textiles while manufactories could assure of lead-time. Due to different amount and weather, Chanel needs to modify the routine for Asian market segments and innovate compact and washable clothes for Asian weather.

It cannot be denied that the entire world is packed with competition which is essential that each individual should have the capability to compete especially those who are assigned to mange people in organisation (Gwee, E. 2002). Perhaps, it can be considered as the best challenge atlanta divorce attorneys organisation particularly to international organisations to possess members who'll contribute to the expansion and development of an organisation. Furthermore good management skills are extremely important in order to attain the objective and reach the eye-sight of a certain organisation. Every organisation has work to do in real life and someway it offers responsibility to measure how well that work has been done.

With relation to the Chanel's business strategies and product life cycle (Vernon 1966), there are factors that needs to be considered. Very much the same, the justifications on the decisions on utilizing these strategies may also be given. The key success factors impacting on the procedures of the Chanel business comprising of the politics, economic, social, technological and environmental aspects, as well as the express of competition and the primary economics within the industry is important because these range of factors would influence the business enterprise organisation's decisions and its own performance, leading to an improved deployment of the firm's resources within its external environment to be able to fulfill its long-term goals. For Chanel, a technique is crucial for his or her success in Vietnam. With this, the company plans to utilize the so-called "International Strategy" as key strategy in venturing in Vietnam. The reason why of choosing this strategy is that because the pressures to both local responsiveness and cost lowering were low. In this plan, Chanel can produce value by transferring valuable primary competencies to Vietnam. Chanel can also still centralize their product development functions in Singapore nevertheless they can also establish making and marketing functions in Vietnam provided the top office in Singapore exercises tight control over it. And since the company are providing fashion designs solely for each and every country's personal preferences and needs are positively accepted and cherished by Asian consumers, Chanel still limits customization of product offering and market strategy. The next PESTLE research shows the applicability of marketing Chanel products in Vietnam.

Political. Based on the current global financial crisis, there is a global monetary slowdown where not only fashion business but also the entire fashion businesses suffers. Since Chanel is in the process of stretching their opportunity of functions in Vietnam, these are naturally subject to international trade legislation, which will make business operations considerably more intricate to perform. Consumer protection also is a major concern, with the increasing range of consumer-protection laws and regulations abound in the Vietnam market that seeks to look after the right of consumers, especially in terms of product and service quality.

Economic. Economic development for the target market segments is positive. As reported in International Fund Organization (IFC) (2009), performing a business in Vietnam is slightly positive. With this, Vietnam is the targeted market segments by Chanel. Actually, this area is good clothing and fashion market on the globe, due to the fact fashion products in this area is rare which makes its market not in saturation level, thus the clothing and fashion industry itself is proven to have a highly optimistic position in the future of the world market, with what the increasing volume of consumers where their fashion sense is evolving.

Social. Income syndication among marketplace of all businesses is uneven, as witnessed by several experts about them (Lipset & Bendix, 1992), although a special focus on the problem would supply the impression that countries did a way better job of keeping income inequality low, which is immediately influenced by the industry's business cycle. The primary consumers of the clothing and fashion market in Vietnam are individuals who love clothes and fashion. The main business is mixed up in provision of clothing and fashion market which is much at the mercy of fashion and fads, similar to the mobile communications industry or the clothing industry, where consumer flavour and personal preferences are relatively not predictable throughout the business cycle.

Technological. In accordance to the development in Chanel in Vietnam, the business enterprise process in which they are engaged in is targeted on it (IT) platform research, instead of product research and development concentrate of other sectors, because almost all of the industry players' main marketing vehicle is the Internet. Large government spending on IT platform research is discovered of the Singapore, as the Vietnam field is on its way to developing more regulations supportive of such research characteristics. Due to the give attention to IT system research, very fast technological copy is quality of the industry. Likewise, a very fast rate of scientific obsolescence is also an attribute.

Legal. Much like any business industry of the world, there are regulations that limit or support the facilitation of the business in the clothing and fashion market in the areas where Chanel works.

Environmental. There are currently no major environmental issues encountered by the Chanel in Vietnam, aside from the ever-present textile and silk creation issue which capture environmentalists' attention pass away to the actual fact that some of its raw materials and from the skin of rare family pets.

Entry Function Choices

As stated by Bennett (1998), whenever a company like Chanel gets into a overseas market, it requires to consider carefully all the available choices, the costs, the distance, firm experience and size, possible loss of control and the potential risks involved. Furthermore, the marketplace entry strategies chosen have to relate to the business's overall strategies. The techniques for going into oversea marketplaces are Bennett (1998)

Exporting- is the marketing and direct deal of domestically produced goods internationally.

Join venture- is a collaborative layout between unrelated celebrations which exchange or combine various resources while remaining separate and indie legal entities.

Licensing/Franchsing- consents an organization in the mark market to utilize the property of the licensor such like trademarks and patents.

Direct investment- is the immediate ownership of facilities in the mark market.

For Chanel enlargement in Vietnam, it was suggested to choose owed-stores, franchising and joint venture. Chanel may need to face strict limitations on the positioning and quantity of outlets they could start. Therefore, having a local spouse will be convenient for Chanel to deal with the bureaucracy in Vietnam. Both franchising and joint venture are co-operative entrance mode. However, considering macro and micro environment, jv will be the most beneficial entrance method for Chanel in Vietnam. Possible advantages of joint venture for Chanel

Higher go back than with franchising

Possibly better romance with Vietnam's authorities because of experiencing local partners

Share resources such as distribution system and suppliers.

Reduce employees expense

Market Segmentation

Here, Chanel will provide its target consumers because of its product. Primarily, the context of the marketplace segmentation because of this company would be the Psychographics. Psychographics includes communal class, lifestyle, and personality factors (Chiagouris & Kahle, 2000). The outcome of using these factors is a emotional profile of every market segment. Issues also evaluated the customers' loyalties, behaviors and self-concept. Social class describes how individuals want their office automation will meet their comfort and satisfaction, what they consider important about their immediate environment, their thoughts on various problems, and their passions.

Pull Strategy

Since the company are providing consumer products such as handbags, clothes, fashion accessories, etc. , then Chanel should use take strategy whereas mass media advertising will be utilized in Vietnam market. In addition, Chanel will be using International Structure because of its product structure to maintain the value of product in International market.

Pricing Strategy

The price of each product will be based upon the type and raw materials used for the merchandise. However, Chanel will be using Multipoint Rates in Vietnam whereas Chanel's costs strategy may influence the rival's costs strategy in another market. The costs would maintain par with those existing Luxury stores in Vietnam, with the business relying on the store ambience and quality of service/products. Using all the available information in this statement, the pricing purpose of Chanel would be to offer the best-luxury products in Vietnam. Knowing that, the rates strategy included the price of providing luxury products to the customer (electricity costs, labour costs, raw materials cost, etc. ). The management team is convinced that Chanel products have unique and defensible characteristics which could support a higher price.

Organizational Structures

The company, which is privately had, strictly handles all design, processing, circulation, and advertising to guarantee the highest quality level (Chanel, 2009). And from this, Chanel may still use the so-called Centralization process within their decision making in venturing in Vietnam. Basically, seventy-seven years on the firm remains strongly under private family control. Thus company is not stated on the currency markets (Chanel, 2009). Unlike its competitors Chanel will not certificate its products.

Chanel's competitive edge in the textile and fashion industry of Singapore is mainly their admirable profile of referrals (Chanel, 2009). With the years of experience and dominance on the market in providing designed textile and silk products, they have got gained an extended list of loyal clients who've impressive business backgrounds by themselves. This promotes the corporate image of Chanel to potential customers as you of trustworthiness and quality. If such companies in Chanel's recommendations were deeply content with the merchandise and services that Chanel provides, much larger chances of attracting possible additional clients in their already long list are sizeable. This profile of clients could be Chanel's most reliable marketing tool yet. On a far more general framework, the competitive advantage of Chanel could be pointed at their good record in having the ability to keep clients satisfied, which is an attribute that not absolutely all rivals in the business can boast of. Another Chanel aspect that can be regarded as a main competency is their tactical business planning. Their planning is about setting a way for the business, a way to which everybody, executives and employees become devoted. It ensures that every part of the company is tranquility, moving towards a business purpose that will give Chanel further competitive gain and improve its performance even more. With the planning of Chanel's business come actions or decisions with high impact, or those decisions that have an impact on the business strategically, rather than the ones that merely concern its normal operating program. Most of those decisions matter for case, changing the business enterprise model, concentrating on new market industries, fundamental advancements in customer support, making critical investment decisions or obtaining an improved go back on research and development expenditure. Such action or decisions impact Chanel's long-term performance and allow it to accomplish its competitive benefits.

Human Resources

Aside from the deviation to the traditional perception advocated by most management experts (Mercury Marketing & Marketing communications 2004), people must be recognised as important assets of the company and fuels of output. A far more appropriate IHRM strategy for Chanel is bounded on the acceptance of the great things about diversity. It is suggested that in order to reply on local HR concerns of subsidiaries, Chanel should combine the idea of variety in Vietnam on its current HR procedures and practices. In the multicultural business setting up, the customs, values, and routines of the Vietnam, where the Chanel has setup its business, are significant contributory factors in the introduction of a stronger corporate and business culture. Actually, the business will be using the Geocentric Strategy in hiring personnel in Vietnam to avoid the issue of racial discrimination. There are lots of ways in which Chanel can communicate and promote variety to a level of benefit within the company's subsidiaries. These are also among the useful justifications of the benefits of suggesting variety as the enhancing factor of today's IHRM strategy.

Since most employees work in teams, the HR Manager must be able to expand and create connection with others who have other cultural backgrounds. Scheduled team-building activities can help. Teamwork must be cultivated among participants of the team no matter cultural origins and orientation.

There is a requirement for top of the management to apply other cross-cultural classes to expatriate managers apart from real foreign language acquisition and learning. Again, it is recognise that HR Managers and Transcultural Market leaders can only meet the challenges of the global business community particularly on the HRM and leadership when they dedicate an amount of concentration on accepting the need to have genuine knowledge in the alternative models of controlling other ethnicities.

Foster communication and employee or human marriage through establishing an agreeable working atmosphere. Being friendly helps. A first friendly move or attempt to establish contact, for example a Singaporean Supervisor toward a Vietnamese Manager or Vietnamese employee, usually lessens and sometimes eliminate social barriers.

HR Professionals and employees must have prior understanding of other's culture and orientation. This is to provide professionals and employees to obtain basic background how or why do these folks take action in such ways. However, all negative social images must be taken out. Being objective in behaviour and worth will support anyone in the knowledge of cultural characteristics and variances.

In basic, IHRM must provide as the normal denominator in understanding staff relationships across geographic and ethnical borders. In the case of Chanel, relativity in HR procedures and tactics and diversity and multiculturalism must be realized by all HR Professionals especially those who works beyond your limitations of the mother company. At these times, the ability of the organisation to perform perfectly in the industry and market it belongs is progressive in pattern.


The above debate has assessed the international business strategy of Chanel as an growing clothing and fashion business in Vietnam. Through this analysis, the company has utilised some marketing concept to have the ability to be competitive in the business world, specifically, the clothing and aesthetic industry. And since the main mission of the company is to provide outfits, clothing and beauty products suitable for the current trend, the company should effectively create a product that would allow your client to buy it and become satisfied regarding it.

It is recommended that the business should become more innovative in making clothing and fashion that would make them known in the marketing market, locally and internationally. To have the ability to be known worldwide, the company must include in their strategy the acquisition and merges, to properly utilise branding strategy. By acquiring, other famous company within the program field, the business can easily enter in the marketing arena in the global competition.

Since Chanel is a fresh market within the Vietnam, the company should utilised a tactical marketing move, including a proper planning in order to make the marketplace be know in the marketing environment. The company should be able to be connected to their marketplace thru the utilization of technological progression like the e-marketing. In addition, this marketing admittance strategy should regarded as effective since the company has included all the factors to be evaluated to make the business lengthen its competitiveness and survive in the intimidating place of the market.

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