Chanel

Chanel

Microenvironment

Microenvironments are those forces or factors that affect the organization internally hence making it difficult for the organization to serve the customers. Chanel is affected by some of the microenvironments, which makes it difficult for it to deliver to some of the customers (Kotler, Burton, Deans, Brown & Armstrong, 2013).  Some of the factors include:

Competitors

Chanel is affected by the fact that it has some of the competitors who come with the same product. Chanel perfumes and handbags are mostly sold all over the world. But the company faces threats from some of the companies such as Versace, Dior perfume and Guerlain. In this case, the company ought to come up with some of the strategies that will help it compete with the rest of the competitors (Kotler, Burton, Deans, Brown & Armstrong, 2013).  The first thing that needs to be cosnidr4d by the company is to ensure that they come up with products that satisfy the customers. Once they come with products that are of quality, unlike those offered by their competitors, then it will be easier to gain a better market advantage by being ahead of their competitors.

Suppliers

Suppliers are the people who manufacture the products sold by Chanel. They affect the organization in a way that in case they stop supplying the manufactured products, then it will be difficult for the organization to continue with its activities. The suppliers, in this case, are like the partners of the company (Kotler, Burton, Deans, Brown & Armstrong, 2013).   One of the leading suppliers of the company is a nature tech trading company which is based in Malaysia. It is one of the largest companies which considers every customer as part of their partners. The company supplies 1000 different bottles of non-alcoholic to the company moreover. The other key supplier to the company is the ink tell Sdn Bhd, who are the major suppliers and manufacturers of cosmetic and acrylic cosmetics. The third supplier is Hunka trading, which manufactures and supplies with different flavour perfumes.

Intermediaries

In Malaysia, some of the groups, such as the Vliram group, have high fashion as well as luxury boutiques. The company had previously commenced by distributing Chanel perfume. We also have different marketing services. One of the companies in Kuala Lumpur, which has always ensure that the company becomes successful. It also ensures that the company can reach its target audience and promote its products (Kotler, Burton, Deans, Brown & Armstrong, 2013).

Customers

The other key people that are directly involved in the business are the customers. Without the customers, then it is easy for the company to make any sales. The company has got different customers who purchase its products. The major consumers are women and men. The company sells products for men and those for women. But the most significant consumers are women since they are the ones who mostly use the products. The company also focuses on other international markets (Kotler, Burton, Deans, Brown & Armstrong, 2013).   They have a more extensive market base not only in the country but also in other countries. The company, therefore, has managed to sell its products to countries in Europe and south maraca.

Public

The company also ensures it markets its products to the public. Some of the key platforms that they use in marketing are social media and televisions. They use these channels because they have a higher number of users (Kotler, Burton, Deans, Brown & Armstrong, 2013).

Macro-environment

The macro environments are the most significant forces which affect external forces. They influence the company’s marketing strategy (Kotler, Burton, Deans, Brown & Armstrong, 2013).    The factor includes technological, demographics, cultural, economic and political forces.

Technology change

According to the news, it is evident that many people in Malaysian engage in buying products online. In this case, they engage in buying perfumes through the use of their mobile phones. In this era, we all depend on technology. Technology has advanced to the extent that it has made the world a global village. Through technology, we can travel, purchase products and communicate without having difficulties. The growing technology has impacted the people towards buying smartphones that can support the internet (Kotler, Burton, Deans, Brown & Armstrong, 2013).  Mobile is easier to use, and they provide one with an easy time as they can conduct various activities without having to struggle much. Mobile phones have also impacted the way business is conducted. The people today do not have to go to shops to purchase for the perfumes. They do purchase the products from the comfort of their house. The company, in this case, can restock the products online, as they get numerous orders, and they replace what they do not have. The growing and advancement in technology has made it easier and created a better opportunity for the company (Kotler, Burton, Deans, Brown & Armstrong, 2013).

Economic change

The spending pattern of the people in Malaysia has changed over the years. Looking at Nielsen’s global survey, where he researched the confidence of the consumers and their spending habits, according to the findings, it is evident that the people had changed their spending habits.  It was for their benefit to handle any tough times ahead. According to the people that participated in the research, 85% of the 500 people interviewed stated that their spending habits changed because of the rising budget in their households. The impact is a threat to the perfume industry. The people, in this case, are spending less on purchasing the product, which means that the sales will drop (Kotler, Burton, Deans, Brown & Armstrong, 2013).   However, it is evident to note that one of the factors that will make the customers come for the products. The company, in this case, needs to produce quality services and quality products. The company’s most users of the company are women, and the changing patterns will not affect the company that much.

Natural changes

The company may face a challenge in these prices. The prices are likely to increase at any time. The reason for this is that the availability of raw materials is less, which makes the manufacturing of the product become expensive (Kotler, Burton, Deans, Brown & Armstrong, 2013).   And in this case, when the customers notice the change in prices, they are likely to look for other companies. In this case, the company is coming up with ways of getting raw material for its products.

Cultural change

Many people in society use brands, products and services for self-expression. The study, in this case, shows the relations between materialism and purchasing behaviour of customers in Malaysia. The purchasing power of the people in Malaysia is increasing as they are getting more materialistic and are in the process of getting more physical products. It is a way of showing the way they live. It, therefore, means that materialism and consumer purchasing behaviour has a significant effect on the company (Kotler, Burton, Deans, Brown & Armstrong, 2013).

Positioning Strategy of the Brand: Target Customer (Pen Portrait) 

The company has focused much on how it delivers its products. The first that the company has focused on is the quality of the product and customer preference. In this case, the company has come up with the best of attracting customers as well as competing with their competitors.  One of the key things is that the company has focused more on creating a quality product. The customers are women. And the company knows clearly that women are choosy, and they want the best products (Kotler, Burton, Deans, Brown & Armstrong, 2013).  They have gone steps ahead to ensure that they create the best product, which will attract many customers. The other thing that they have considered is the price of the product. They chare relatively lower than the rest of the companies to help attract more customers as well as maintain their current customers (Foong, 2012, February 10). The other thing is that the company has ensured that the company is efficient. The company ensures that they deliver products on time. One thing that customers like is the company that makes their delivery on time.

Competitor Analysis. 

 A lot of investors have gained interest in the fashion industry. It is one of the lucrative sectors. The company, in this case, is very as many are striving to enter the industry. International companies have also been set up to compete with the company. Some of the foreign companies, such as Versace is well developed since they have enough resources to fund their services (Chan,  Yeoh, Osman, 2011).  The completion, in this case, has taken a different level. Companies can adopt various competitive strategies. The price, in this case, is not a significant factor, but the companies have come up with different approaches such as home delivery. They deliver the products for free, which makes most customers purchase the products. Chanel has come up with a way of managing its competition (Kotler, Burton, Deans, Brown & Armstrong, 2013).   The company mainly focuses on expanding its market share. The company cannot consider maintaining its market because of the increased competition. Some other companies have come up with better strategies for competition with Chanel. The strategies are a major threat to Chanel’s market share. The company is this case focuses on expanding its current market share (Petronas, 2012). Some companies, such as vintage, have market shares all over the countries, which makes it difficult for the company to compete with others. The company, in this case, needs to come up with a reliable and robust strategy that will help it compete with others globally. It needs to come up with some of the marketing strategies that will help compete with the rest of the companies globally.

Critical evaluation of the marketing communications strategy of the brand

The company has got a unique marketing strategy. The approach is all about exposure to the public, and it is more appealing. The communication strategy makes viewers look at the lifestyle that is portrayed in the marketing strategy. The other thing with the company is that it uses celebrities for its advertisements (Singh, 2013, December 23). Using stars is a unique and added advantage as many people will look after the celebrity and want to buy the products. The other thing is that the company social media, televisions, radios and newspapers to market their products. They also pay for an ad on which pop on people’s screens while using the internet. They are the best strategies that make it easier for the company to sell products. The company also ensures that it engages customers through mobile phones. They send messages to the customers, alerting them of the new products in town. The customers can view the products from home and make an order.

References

Kotler, P., Burton, S., Deans, K., Brown, L., & Armstrong, G. (2013). Marketing. Understanding the market.

Singh, H. (2013, December 23). More Malaysians are buying and selling used goods online, from their mobile devices. Marketing Magazine. Retrieved from http://www.marketingmagazine.com.my/index.php/categories/digital/9859-more-malaysians-are-buying-and-selling-used-goods-online-from-their-mobile-devices

Petronas’ US$20 billion rapid project to meet burgeoning demand for energy and petrochemicals. (2012). Retrieved May 11, 2012, from http://www.theborneopost.com/2012/05/11/petronas-us20-bln-rapid-project-to-meet-burgeoning-demand-for-energy-and-petrochemicals/

Chan, B, Y, F., Yeoh, S, F., Osman, S. (2011). An Exploratary Study of the Relationships between advertising appeals, spending tendency, perceived social status and materialism on perfume purchasing behavior, 2(10), 1-7. Retrieved from http://www.ijbssnet.com/journals/Vol.%202_No._10%3B_June_2011/21.pdf

Foong, A. (2012, February 10). Malaysian spending less. Venus. Retrieved from http://www.venusbuzz.com/archives/7969/malaysians-spending-less/