Comparative Analysis: Chanel's Marketing in UK and Nigeria

This report provides a comprehensive analysis of Chanel's international marketing strategies, focusing on the UK and Nigeria. It begins with an introduction to the fashion market and Chanel's brand profile, highlighting its strong brand portfolio and global presence. The report then delves into a comparative analysis of the two countries, using Hofstede's Cultural Dimension Theory to illustrate the cultural differences influencing Chanel's market approach. Key aspects such as power distance, individualism, masculinity, uncertainty avoidance, and indulgence are compared. The study further explores Chanel's marketing and corporate strategies, including brand portfolio, product differentiation, cost leadership, and growth strategies. The report also examines the marketing mix strategies, covering pricing, distribution, and promotion, tailored for each market. Finally, the report offers insights into the organization's structure, competitor analysis, and customer analysis, providing a holistic view of Chanel's approach to international marketing in the UK and Nigeria, with references to support the analysis.

INTERNATIONAL MARKETING COMMUNICATIONS
1

Table of Contents
Introduction................................................................................................................................3
Difference between the two countries........................................................................................3
Table 1: Difference between the two countries..........................................................................5
Objectives and strategic differences between the countries.......................................................5
Marketing Strategies of Chanel..............................................................................................5
Corporate Strategies of Chanel...............................................................................................6
Marketing Mix Strategies of Chanel......................................................................................6
Organisation analysis..............................................................................................................7
Competitor analysis................................................................................................................8
Customer analysis...................................................................................................................8
Strategies and objectives of a particular country.......................................................................9
Internal Context......................................................................................................................9
External Context.....................................................................................................................9
Political, Economic, Social, and Technological restraints and opportunities..........................10
References................................................................................................................................13
2

Introduction
The study is based on the fashion market and its strategies. The study is going to elaborate
exploration of the industry in the world fashion market. The chosen brand for the current
assignment is namely Chanel that belongs from that fashion industry of UK. It is one of the
very famous brands which have already spread in the world and which is almost 100 years
old and has a strong brand portfolio. In this assignment, the two countries the U.K. and
Nigeria where Chanel has a very strong customer base is being compared and discussed. The
assignment holds the details about the company as well as its strategies and the different
factors that make it different from the other famous brand. Apart from its very high price it
has a very high amount of profit which clearly indicates that it is a very established business.
Difference between the two countries
In the development and spreading of the business worldwide there are different cultures in
that a company comes across while spreading the businesses, Geert Hofstede, who has
developed the Hofstede Cultural Dimension Theory framework discusses the cultural
dimensions a company has to come across while the spreading of the business (Pedersen et
al. 2018, p. 271).
Figure 1: Hofstede Cultural Dimension Theory
(Source: corporatefinanceinstitute.com)
3

Cultural Dimensions United Kingdom Nigeria
Power distance which means
in a society every individual
is not equal and hence this
aspect express attitude of the
culture towards these
inequalities present in society
(Khlif 2016, p.540).
It has been found that in
united kingdom individuals
think these inequalities in a
society should be minimized.
Hence, according to a survey
they have only 35% of power
distance in its country. Hence,
this influences the market
structure of the Chanel
product. Thus, the
organization increased the
sales in the brand and
diminishing the inequalities
among the people (Martinez-
Fiestas et al. 2017, p. 17).
Nigerian people think that this
inequality should be
maintained among individuals
in a society and hence they
consist of 80% of power
distance among individuals.
Hence, it has an effect on the
market structure of the Chanel
product.
Individualism that is how a
society is dependent on its
individual members for
running of society.
According to a survey, it has
been found that 89% of
individualism is in the United
Kingdom for which
individuals can live their lives
according to their wishes.
Therefore, this factor is also
However, only 30% of
individualism is present in
Nigeria and so the market
structure of the Chanel brand
is falling here (Choi Lee
2016, p.65).
4

helping Chanel to capture the
market in this nation.
Masculinity which means
society will be carry
forwarded by achievement,
success, and competition in
all fields. Moreover,
femininity means society will
be driven by value and quality
of life that individual lives
(Akinfotire 2015, p.88).
Here masculinity and
femininity percentage are
sixty-six out of hundred. So
this has changed the ratio of
our buyers in the market of
UK.
Here masculinity and
femininity percentage are
sixty out of hundred.
Developing an increase in the
sales of Chanel.
Uncertainty avoidance is a
dimension which means that
society does not know at
present what will happen in
the future and so always tries
to avoid such things.
The United Kingdom has
uncertainty avoidance of 35
per cent out of a hundred.
Therefore the products of
Chanel are used by customers
of this nation without thinking
of its future circumstances.
Nigeria has uncertainty
avoidance of 55 per cent out
of a hundred. Hence, people
of this nation do not use the
product much; they think
before its future aspect and
then decide to have the
product of Chanel.
5

Long term orientation means
society has always a link with
its past while keeping its link
with the future and also with a
present. This dimension helps
to run the society sustainably.
Long term orientation is of 51
% in the united kingdom that
is helping to improve
conditions of a said nation as
well as due to this dimension
it is increasing the market
structure of brand Chanel.
Here only 13% of long term
orientation is present and this
is having a negative effect on
the market structure of
Channel product (Brown
2016, p.440).
The last cultural dimension is
an indulgence that is a way
how individuals control their
impulses and desires.
Here indulgence is 69% for
which Chanel brand is having
a positive impact on
individuals of said nation.
Here indulgence is 84% for
which Chanel brand is having
a negative impact on
individuals of the said nation
(Presi et al. 2016, p. 1850).
Table 1: Difference between the two countries
(Source: Created by the researcher)
According to the level of Hosted model and dimension it has been seen that making changes
in the particular prospect are being considered. The process of managing the consequence
through the different compressional aspect such as the masculinity and long term orientation
has been constituently managed through different aspects. The power distance and
individualism has been one of the best procedure in which the cognitive reclines of the
organization has been conferred to be maintained (Brown 2016, p.440).
In terms of United Kingdom, it has been seen that making the different types of policies and
the management strategies has been applied to the different types of organizations. The
country Nigeria has been following a particular aspect to get it concentrated through the
aspects. The indulgence of the country UK has neither positive nor negative impact in the
country (Brown 2016, p.440).
6

In terms of the power distance the country UK has lesser dominance rather than Nigeria. The
country has been consisted through the relevant aspects to be consisted through the
perspective of management. The different type of model and culture has been consisted
through the level of managing the significant assumption as per the needed segments.
Objectives and strategic differences between the countries
Marketing Strategies of Chanel
Renowned company: It is a company which is a trendsetter for several companies. It has
been running its business from the last century due to its products that are revolutionary in the
fashion industry. Thus it is a very renowned brand with which it spreads its business and uses
the grand brand name in making market strategies.
Strong brand portfolio: It has several stock keeping units, as well as there, are brands that
are under it which promotes watches, cosmetics and several other products. With the
introduction of these products, there has been a rise in the sales of the company. The
introduction of skin care products by the brand has helped in the development of the brand
(Buccoliero et al. 2018, p. 35).
Promotion through fashion shows: This is a brand which promotes its products through
fashion shows. There have been several fashion shows where Chanel has been leading. It has
even promoted in the Paris Fashion Week. With promotion through fashion show, there is a
benefit of attracting several models, fusionist, actors, and designers and so on.
Corporate Strategies of Chanel
The company has been selling products under one name and thus defective product may lead
to the complete destruction of the brand. Though with one name there is an advantage that it
gives reputation to the product as well as the brand and it becomes famous.
● Product differentiation: The prime motive of Chanel is to produce products that are
of great interest to the customers. It reflects on meeting the demands of the customers
(Andrews et al. 2017, p. 86). Thus its strategy is to develop products of various
designs names and of different types. It also focuses on the packaging of the product.
● Coat leadership: Chanel may be using Porter's value chain model in order to
determine the cost structure of the industry. With this Chanel can easily identify the
factors which have been helping in the growth of Chanel in the past years.
7

Figure 1: Coat leadership
(Source: Created by the Researcher)
● Growth strategy: The Company can look into the growth in the past years and
identifying the reason of downfall or growth will be helpful in the increase in the
growth in the years coming (Eteokleous et al. 2016, p. 98).
Marketing Mix Strategies of Chanel
● Pricing: It is the aim of Chanel not to compromise on the quality of the product and
to provide the customer's products that are exquisite. There are several factors that
have been affecting the pricing of the product of Chanel. It depends on the fineness of
the product along with the time taken for the manufacturing of the product. The
making of the clothing of the brand is done by skilled personnel thus the brand
eagerly waited on the clients as the price of the clothing are expensive and the
customers are too rich enough to afford it.
● Distribution: It plays a very important role in the growth as well as the selling of the
product (Solberg, 2017, p. 34). The customers of Chanel are from wealthy upper class
thus it is very important that the store must be in the areas which are very posh. As for
example, the stores in England are in Manchester and London. Ginza district is the
place in
Japan where the store is located as it is one of the places in Japan where wealthy class
people live in. there are around 300 stores of Chanel worldwide. As the stores are
being located on the areas which are far away from each other and due to the low
number of stores, Chanel has a plan to increase their sale with online business and
8

easily reach to the people who don't have an access to store (Eteokleous et al. 2016, p.
98).
● Promotion: Due to its excessively high price it promotes thought the magazine which
caters only to the influential buyers. It promotes though the "Marie Claire" magazine
which has an influence only on the upper-class wealthy family of England. With the
help of the magazine, it can portray the products and the customers to get to know
about the product in detail. There are several famous models and actors who are the
brand ambassador of this brand such as Anna Moughlalis, Nicole Kidman, Marilyn
Monroe and so on. Chanel also promotes thought several famous and posh fashion
shows in order to make the brand more known to the upper-class people (Husain et al.
2013, p. 120).
Figure 2: Marketing Mix Strategies of Chanel
(Source: Created by the researcher)
The marketing strategies for the different types of market management in the countries
have been considerably different. It has its existence in the product of the particular
industry. The customer service and their need are the main aspect which could be given to
the better provision of the management and its provision to the management. The
assessment of different type of strategically changes such as the process divisibility and
the product apprehension has been comprehended through DRIP sales (Eteokleous et al.
2016, p. 98).
9

The marketing management of DRIP sales is abed on the product channelization in the
different countries and adaptability to be considered. The estimated approach of
configuring segmented alternatives to the product has not been produced as per the
required management. The process of managing the configured approaches and its
adaptability is needed to be contaminated. The aspect of getting the right behaviour to the
customer is the pillar of the product and marketed management (Brown 2016, p.440).
The right supply chain choosing and their implementation are needed to be established for
the biter enhancement to be managed. The different types of comprehensiveness are
based on having the right number of management and their usage in the proper aspect has
been perfectly used under the evolution plodder.
Form the marketing tricks it has been evident that making the several changes over the
consecutive management is very clear to the customers. The customers are not being
convinced to the management and the respected proportion of the companies. The prime
actors of the companies are thus conferred to be helpful after the research of different
counties. The different types of countries and their estimated approaches are the main
concern of these segments (Brown 2016, p.440).
Organisation analysis
From the research of Fiona and Moore, the nine modules create a luxury fashion brand. This
is the prime reason for the success of Chanel. There has been the use of the nine modules
which has been contributing in the cut of the luxury brand. It has a strong presence in the UK
as well as in Nigeria. It is the French brand which has been operating in several markets
worldwide. Chanel is a very well-known and a famous brand in the upper-class markets. It
has been running for around 100 years and has been witnessing growth rapidly. The brand
has dealt with all the generations. It has sponsored many of the actresses and has been a star
in the industry.
The proper expected approach of organisation basis analysis has been done on the marketing
and sales capability of the particular companies. The prospected approaches are getting best
possible management and its comprehensive factors to be contently managed by the different
marketing and management head of organisational executives and the emergency basis of
implementation would be very important for generating the prospected increment and
expansion in the business (Beugelsdijk et al. 2017, p. 65). The proposals of definer investors
have helped their analytical comprehensiveness much easier in terms of the best aspect.
10

Competitor analysis
There are various brands which are the competitors of Chanel. Louis Vinton is a brand whose
value is worth $28.4 billion. It is the brand which has a high reputation in the world-class
market. It displays its products through standalone boutiques, online as well as departmental
store. It creates products for both men and women and has its stores around 50 countries
worldwide. Chanel has a tough competitor with Hermes as well. Hermes is a brand that
produces products such as perfumes, accessories, home furnishing, and jewellery and so on.
It gives dedicated service to its customers. It is a company that operates in the retail supply
chain. It has a high charge for their products (Beugelsdijk et al. 2017, p. 65).
The company do have competitors like Gucci as well. Gucci is a brand that has been selling
exclusive high-end purses and bags. It also designs clothes and accessories but it is known
mostly for its bags. It is a brand that approaches the client directly through the stores. It has
around 278 stores worldwide. It is a multinational brand which has a high influence on the
customers. Apart from all these high-end exclusive brands, the reason that Chanel stands out
is for its finest quality as well as skilled labours. The way Chanel has developed few of its
marketing strategies is also the reason that it stands out in the market and are being attracted
by the people. It has too developed a strong customer’s base that is the reason it can easily
compete with its competitors.
Customer analysis
The main reason for the development of the Chanel brand is due to its strong customer base.
In order to grow it is very important to know the customers' potential. With the knowledge of
the needs, expectations and attitude of the customers it6 becomes easy to achieve the goals.
In order to conduct customer analysis, the following are the steps:
● It is important to identify their customers in order to target their choice and meet their
demands. The customers must also be categorised in order to get the analysis in a
better way
● With the customer analysis information about the need of the customers is being
obtained.
● It is very important to find out which group of customers are the reasons of profit and
how can their demands met.
With the following the company can develop the customers:
● Identification of the market size.
● The observable difference must be there.
11

● There must be a survey depending on the product that is should are bought on the
basis of quality or fineness.
Apart from all this Chanel has a large number of customers who are of the age group of 15-40
years. These are the people who have a great interest in the fashion industry and spend
around 20% of their income on fashion. The most people those who are interested in the
brand are the people of upper classes due to its high pricing (Bakir et al. 2015, p. 85).
Strategies and objectives of Chanel that is being used in the UK
Internal Context
Financial Constraints: There is an inadequate fund allocation, no knowledge of cash flow or
investing.
Organisation Identity: The brand logo:
Figure 3: the Logo of Chanel
(Source: chanel.com, 2018)
Culture, Values, and Beliefs: it has been very loyal and has been maintaining a great
relationship with the customers of UK.
Marketing Expertise: A great and efficient relationship with customers, and there has been
several ways and initiatives in promotion or advertisement.
External Context
Key stakeholders and the reasons for which they are important
12