Business Marketing Report: Chanel N° 5 in the Chinese Market

This report provides a comprehensive marketing analysis of Chanel N° 5, focusing on its potential for expansion in the Chinese market. The report begins with an introduction to Chanel N° 5's history and background, followed by an overview of the SWOT and 4Ps marketing mix theories. Chapter 2 delves into the Chinese perfume market, conducting a detailed SWOT analysis to identify the brand's strengths, weaknesses, opportunities, and threats. The report then examines the marketing mix, including product, price, place, and promotion strategies tailored for the Chinese market. Finally, the report explores brand building effects, consumer psychology, and the importance of sales personnel quality. The report concludes by summarizing the key findings and insights, providing a strategic perspective for Chanel N° 5's growth and market share in China.

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Abstract
The purpose of this report is to understand the various strengths, opportunities, weaknesses and
threats of Chanel N° 5 and also the market mix comprising product, promotion, price and place
to have successful business and sales in China. Chanel N° 5 is a well-known and global brand in
the perfume industry and has made several successful global business expansions. The key
factors behind these successful ventures are its strengths, the strategies to take use of the
opportunities and powerful marketing mix strategies. All these factors successfully help the
brand to grow and develop across the world. The report will present the history of Chanel N° 5,
the SWOT theory, the Marketing mix theory in chapter 1. The second chapter will highlight the
strengths, weaknesses, threats and opportunities of Chanel N° 5, the marketing mix comprising
of 4Ps and the last or the third chapter will present the brand building effects, the importance of
consumer psychology and the need of improvement of the quality of the sales personnel. The
report will end with a brief conclusion by taking insights of all the segments of the report.

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Contents
Introduction......................................................................................................................................3
Chapter I Introduction to Chanel’s Background and Marketing Theory.........................................3
1.1 Chanel NO.5’s background...............................................................................................3
1.2 Introduction to SWOT theory...........................................................................................4
1.3 Introduction to 4Ps theory.................................................................................................6
Chapter Ⅱ Marketing Analysis on Chanel NO.5..............................................................................7
2.1Marketing environment of perfume sales in China................................................................7
2.2 SWOT analysis......................................................................................................................8
2.2.1 Strengths.........................................................................................................................8
2.2.2 Weakness........................................................................................................................9
2.2.3 Opportunities................................................................................................................10
2.2.4 Threats..........................................................................................................................11
2.3 Marketing mix analysis........................................................................................................11
2.3.1 Product..........................................................................................................................11
2.3.2 Price..............................................................................................................................12
2.3.3 Place..............................................................................................................................12
2.3.4 Promotion.....................................................................................................................13
Chapter Ⅲ Inspiration for the Development of Perfume Industry in China...................................13
3.1 Brand effect building...........................................................................................................13
3.2 Improvement of sales personnel quality..............................................................................14
3.3 The importance of consumer psychology............................................................................15
Conclusion.....................................................................................................................................16
Bibliography..................................................................................................................................17

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Introduction
In the contemporary world where there are several classic and luxurious products available in the
market, there is one of the most renowned and unique product in the fragrance industry named
Chanel N° 5. It is one of the scents which have such a remarkable history and had always
remained at top of the list of perfumes in the fragrance industry (Idacavagenov, 2016). There are
several developing markets which still do not have much access to these products. The market of
China is developing as well as there are opportunities for Chanel N° 5 to grow and have a
sustainable market share in China. The Chinese perfume industry presently has less number of
customers as well as sellers, therefore, Chanel N° 5 can grab the opportunity to present itself and
have a sound customer base in the markets of China. Chanel N° 5 has several strengths which are
the key factors for the successful global expansion of the product (KAPFERER, 2014). There are
several countries where Chanel N° 5 have already expanded its roots and have gained huge
recognition and market share. There is also vital significance of the marketing mix and the 4Ps in
enhancing the visibility of the brand. To have successful marketing of Chanel N° 5 in China, the
company will take use of product mix strategies, pricing mix strategies, place mix strategies and
promotion mix strategies. Chanel N° 5 will also have its focus on the brand building as it is one
of the major needs to have higher sales and customer base in China. The more brand equity
Chanel N° 5 will gain, the maximum will be the chances to develop and attain higher revenues.
Chapter I Introduction to Chanel’s Background and Marketing Theory
1.1 Chanel NO.5’s background
“N°5: The now and forever fragrance”, N°5 is one of the most favored and recognized perfume
brand which has its strong and dominant presence in the perfume or fragrance industry. It is been
announced that somewhere across the globe, there is a purchase of a bottle of Chanel N°5 each
and every minute. Chanel N°5 perfume always remain at the top of the global best-selling
perfume lists since almost a century when it was created by Ernest Beaux in 1921 (BBC, 2011).
It was one of the desires of Mlle Chanel to offer something contemporary and stylish to the
women and aimed at revolutionized perfumery. Earlier there were perfumes which were over-

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decorated, single-note floral packaged and heavy but Chanel N°5 was unique and different.
There are used natural raw materials in the perfume which reflects the elusive nature and the
revolutionary thing about the scent (Young, 2014).The Chanel N°5 perfume is the first fragrance
which was launched by the French couturier Gabrielle "Coco" Chanel. There were huge efforts
of perfumer Ernest Beaux in the composition of the chemical formula of the perfume. Earlier,
there were basically two types of fragrances which were worn by the women that include first the
respectable woman and second the women of the demi-monde or courtesans. The respectable
women were used to won the pure essence of a single garden flower whereas the second one
used perfumes which are heavy with jasmine or animal musk (Anothermag, 2016). Chanel
realized that it is the time when to offer a scent which would stand for the liberated spirit of the
1920s. ]There are several new topes of perfumes which were launched by Chanel in its N°5 brand
and the latest one which was launched by the company is the one which describes a vibrant, fresh
and modern embodiment of the present and the future scent. There has been employed a
seventeen year old actress Lily-Rose Depp for they marketing campaign with a tagline of "the
scent of all paradoxes” (Idacavagenov, 2016). Such a campaign reflects the modern paradoxes
such as pure/artificial, unique/multiple, masculine/feminine, and disorder/order and their closing
stages. The tagline is accompanied with a slogan i.e. “You know me and you don’t” which
reflects thedichotomous character of women (Chanel, 2018).
1.2 Introduction to SWOT theory
A SWOT analysis is an evaluation and planning tool which is used for understanding the threats,
opportunities, weaknesses and the strengths which are associated with any business, project or an
organisation. It comprises of specifying the key objective of the project of the business and
performs identification of the various external and the internal factors which are unfavorable or
supportive in the attainment of the objective. SWOT is majorly used as a significant part of the
strategic planning process which is also well known as TOWS (Gregory, 2017).The SWOT
analysis has a benefit of being used as one of the most fast and easy tool or can be called as a
comprehensive management tool which offers the info that help the businesses to take decisions
and lead others.

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(Source: Morrison, 2016)
There are primarily four key components of the SWOT analysis tool which have their respective
significance in the tool.
Strengths
Strengths are the characteristics or features of any business or any project which offers high
benefits and advantages over others. These are those pillars of a business or project with the help
of which the business gain higher competitive benefits and lead the market (Techtarget, 2017).
Weaknesses
Weaknesses are the characteristics or features of any business or any project which places the
business at that particular point which is disadvantageous for the business in comparison with
others (Agarwal, et al., 2012).The weaknesses are those which weaken or deteriorate the success
of the business and are required to be managed in a strategic way so that they can be overcome
and turn into strengths (Leigh and Pershing, 2006).
Opportunities

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Opportunities are those specific elements present in the business environment which can be
exploited by the project or the business to acquire higher success and growth. If the businesses
identify the opportunities present in the environment then there are relatively high chances of
remaining competitive and attaining higher competitive benefits (Cadle, Paul and Turner, 2010).
Threats
Threats are those specific elements present in the business environment which may cause trouble
and challenges for the business. These are those risks or uncertainties that may result into
business failure or loss of competitive benefits (Hay and Castilla, 2006). The businesses who
identify these threats can prepare themselves by planning and having adequate strategies to cope
up with the aftermaths of these threats (Morris, 2005).
1.3 Introduction to 4Ps theory
Marketing mix is a business tool which is a set of tactics which is used by the businesses for
selling and promoting the products in the consumer markets. The marketing mix theory
comprises of development of the products, deciding the places and the prices for the products
that where it will be sold at what particular price and deciding the various promotional
approaches to be take use by the business.
Product: Product can be explained as an item produced or a tangible object or a service which is
intangible in nature which is marketed by the businesses for satisfying the needs of the
consumers. The tangible objects may include the consumer goods or the consumer durable
products (Goi, 2009). The product mix of marketing mix theory helps in deciding a number of
product related factor such as what does the consumer demands from the product, what all
features must be there in the product for satisfying the needs of the consumers, what will be the
name, color and size of the product and what will be the unique feature of the product which help
the business in attaining competitive benefit (Ivy, 2008). There are several attributes of product
which are required to be decided in the product mix such as product designing, product quality
and product extension. The services are also included in the product as the intangible products
that comprises of things like information technology, tourism, etc. (Anitsal, Girard and Anitsal,
2012). For retaining competitive in the market and to gain a larger market share, there is a need
that the companies must work on the product under product mix.

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Price: The amount which is agreed to pay by the customer for any product is known as price.
The price should always be according to the value of product. If the product costs higher than the
value, it will be less demanded by the customers. On the other hand, more quantity of good is
demanded when the price and level of satisfaction is equivalent to each other. Therefore it is very
necessary to maintain the balance between price of any product and the amount of satisfaction it
gives to the customers (Zineldinand Philipson, 2007).
Place: Place plays a very key role in the demand of the product as it is the location from where a
consumer can purchase what he wants. Channel of distribution is also a part of place because it
includes physical as well as virtual stores. One thing should be kept in mind that location must be
easy to reach by the consumers so that more of quantity can be demanded (Khan, 2014).
Promotion: The process by which more product relevant information can be provided to the
customers is known as promotion of the product. During promotions marketers make the
customers aware about the benefits and the uses of the product. This facilitates the customers to
make better choice of products. It is comprised of four elements: public relations, personal
selling, advertising and sales promotion. Each of the elements plays a significant role in the
demand of the product (Ke and Li, 2015).
Chapter Ⅱ Marketing Analysis on Chanel NO.5
2.1Marketing environment of perfume sales in China
In China, there have been no historical roots or any kind of cultural roots for the purchase of
perfumes. Due to less or being the lowest segment of luxury in the markets of China, there is a
less demand for luxurious perfumes less demand which is one of the major factor behind the
expansion of Chanel N° 5 in China. The market of China is developing as well as there are
opportunities for Chanel N° 5 to grow and have a sustainable market share in China. The
Chinese perfume industry presently has less number of customers as well as sellers, therefore,
Chanel N° 5 can grab the opportunity to present itself and have a sound customer base in the
markets of China. In respect with the political and legal factors affecting the business, it has been
analyzed that there are supportive laws and regulations for foreign direct investments and foreign
companies who wants to perform business in China. In respect with the economic environment,

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the country is developing and also there can be gained low cost labor, easy distribution and
higher population base to have effective growth of Chanel N° 5. In respect with the technological
factors, China is recognized for its innovative technologies and continuous technological
innovations (Lu, 2011). Thus, in that manner also, Chanel N° 5 can have good business
operations. In respect with the social and the environmental factors, it has been realized that
there can be a risk to the success of Chanel N° 5 as the higher number of people of China does
not possess the buying power to purchase such expensive product so Chanel N° 5 is required to
done the pricing in an adequate manner and in respect with environmental concerns, Chanel N° 5
take use of natural raw materials which is one of the strengths of the company to have successful
business venture in China.
2.2 SWOT analysis
2.2.1 Strengths
Celebrity to advertise
It is one of the biggest strengths of Chanel N°5 that the company always take use of a celebrity
and a well know personality for the advertisements and promotion of the perfume. In present, the
celebrity who promotes Chanel N°5 is Lily-Rose Depp whose personality completely matches
the luxurious and unique status of the perfume. People are highly fascinated with the product
when they see that there is a well-known personality associate themselves with the brand. It
develops a sense of trust and reliability among the consumers to trust the brand and purchase it
as a symbol of high class status and luxury (KAPFERER, 2014).
Good use of adverts
Another major strength of Chanel N°5 is that there are robust advertisements use for the
promotion and publicity of the perfume. There are several channels on which promotions are
made such as newspaper, fashion magazine, online sites, social media pages, television
advertisements, posters, and various other channels. Such a strong and powerful promotion helps
the company to have increased sales and strong brand visibility across the globe (GRADE,n.d.).
Good timing as no competition

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the another major and key strength of Chanel N°5 is that when the company first launched the
perfume in 1921 there was no such other perfumes which can give a competition to the brand
and still the in context with the materials, the brand history, the strong global recognition and the
floral fragrance there is no other perfume which can give a tough competition and thus the timing
of launch and the market share of the Chanel N°5 are the key strengths of the perfume
(Roudnitska, 1980).
Suitability to customers
The brand Chanel N°5 has offered a sense of sustainability to the consumer which is the biggest
strength in terms of fascinating the customers and having a strong and reliable customer base.
The company is offering a sustainable product to its customers who helped in improving the
sustainability and thus the market share kept on increasing with the existing customers plus the
new customers (Kumar, 2005).
Brand History
The renowned, well established and robust brand history is the most influencing strength of
Chanel N°5 which offers high benefits and advantages to Chanel N°5 over others. It is that pillar
the company with the help of which the business had gained higher competitive benefits and also
supporting Chanel N°5 in leading the market (Bruce and Kratz, 2007).
2.2.2 Weakness
Overrating the product
It would not be incorrect saying that the Chanel N ° 5’s biggest weakness is the overrating of the
product. Due to strong presence and higher brand recognition, Chanel N°5 has overrated itself as
in present time there are other companies also who are offering the natural scented and floral
based fragrances and thus overrating Chanel N° 5 is one of the weakness for the company
(Kapferer, 2014).
Millionsof investment
The next key weakness of Chanel N° 5 is that the company has invested a huge amount of capital
or millions of investment in the advertisements and promotion of the perfume which is

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considered as a big weaknesses and it not only impact the revenues but also regarded as improper
of the resources of the company (Grade, n.d.).
Expensive perfume
In the comparison of various other perfumes and a number of other big and renowned brands,
Chanel N° 5 is comparatively very expensive and it is not a unique feature but a weakness which
impact the sale and profit of the company. Due to the high prices, there are number of potential
buyers who switch to other brands as they cannot afford to buy such expensive perfumes. Thus,
the price or highly expensive nature of the product is a big weakness for Chanel N° 5
(KAPFERER, 2014).
2.2.3 Opportunities
Customers’ awareness of the product
It is a great opportunity for the brand Chanel N° 5 to enhance the profitability and revenues by
increasing the awareness among the customers for the product. There are still several regions and
individuals who can become the potential customers of the product as they are unaware of
Chanel N° 5 and its uniqueness. Thus, by increasing the awareness among the customers for
Chanel N° 5 can result in better sales and upsurge market share (KAPFERER, 2014).
Distributed widely
The next opportunity from which Chanel N° 5 can benefit itself is by widening the distribution.
Because of the high prices and a luxurious category product, Chanel N° 5 is not easily available
due to limited distribution channels. Thus, it restricts the sales of the company and also not more
number ofcustomers can develop their willingness to buy the same. It is a good opportunity for
Chanel N° 5 to widen the distribution and enhances the profits of the company (Grade, n.d.).
Product comes in different volumes
Another fruitful opportunity for Chanel N° 5 is that the company can successfully increase its
market share, sales, brand visibility and profits if it starts offering the perfume in different
volumes. It is analyzed that not all the customers can buy such large bottles of Chanel N° 5 as
they are extremely costly. Thus, if the company will offer the perfume in various bottle sizes

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with different volumes then it may effectively snowball the market share of Chanel N° 5 in the
perfume industry (KAPFERER, 2014).
2.2.4 Threats
Loss of customers to competitors
Earlier there was less competition in the perfume industry but in present time, there are several
big and renowned brands which offer classic as well as unique fragrances which could be a big
threat for Chanel N° 5. Thus, the continuously intensifying market competition is a threat to the
growth and sales of Chanel N° 5 (Kapferer, 2014).
Accused of breaking the rules of the EU
There is a big threat to Chanel N° 5 from the EU regulations branded ‘absurd’ by the
manufacturers (Marsden, 2014). There are several other perfume brands also which can face the
issue and can be accused as there are some ingredients which have been banned and are required
to be labeled so that the customers can be protected against the ingredients for the consumers
who are allergic to them. And thus Chanel N° 5 can also be forced to reformulate the scent and
change the labeling and packaging of the product which may also lead to additional costs
(Stocks, 2012).
Negative responses by the media
There is also a great threat to Chanel N° 5 and its reputation and brand value as there are several
negative responses given by the media in respect with the advertising, labeling and promotion of
the product. In today’s time there is a vital role of media in growing or deteriorating a brand or a
product and thus the negative responses may result in decrease of sale of Chanel N° 5 (Grade,
n.d.).
2.3 Marketing mix analysis
2.3.1 Product
The term product of the marketing mix is characterized by exceptional quality which comprises
of various aspects of the product of the brand that comprises of materials used both in packaging
as well as in meaning. The product i.e. Chanel N° 5 is of global fame and is followed by high-

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end customers across the globe comprising of renowned Hollywood celebrities and famous
personalities. The quality factor of Chanel N° 5 is particularly important for the company as any
kind of shortcoming may lead to loss of brand image and could also lead to a severe damage of
the high-end luxury brand image (Kapferer and Bastien, 2012). Therefore, it has become more of
a factor of hygiene for Chanel N° 5 now given its global reputation. Chanel N° 5 is unique in
nature as the company does not go for mass production and thus there comes only limited
editions. Chanel N° 5 is well famous for its luxurious and unique status made from valuable and
highly expensive raw materials. The perfume is exclusively made up of natural flowers which
are rare in nature. Chanel N° 5 is one of the iconic products of Chanel which is primarily for the
high-end and rich class customers as it is quite expensive. The uniqueness of Chanel N° 5 is
secured by using a unique synthesis of aromas and by employing an innovative name (Bruce and
Kratz, 2007).
2.3.2 Price
The price of Chanel N° 5 has to be decided in respect with the various factors such as the GDP of
the target market i.e. China, the status of the economy and the demographic characteristics of the
market of China. Chanel N° 5 is a premium brand which is for the elite customers. The people
who have high believe in purchasing luxurious products and to cater the needs of the high-end
aristocrats of the society, the company offer Chanel N° 5 at premium prices. The target segment
based upon the price is the cash rich customer. Thus, Chanel N° 5 charges excessive amount of
money in its marketing mix pricing strategy (Arora, 2011). The company kept the prices high
such as in the bracket of $80 to $150 due to a number of reasons which are also justified such as
the quality of the raw materials which have been used in Chanel N° 5 are rare and exquisite. The
product stands for elegance, exemplify style and world class quality thus the target customer is
the rich class people who are willing to pay the amount for the product. Chanel N° 5 is also
regarded as a social symbol thus to showcase a luxurious status the company kept the prices of
Chanel N° 5 always very high. There are a various categories and the pricing strategy is used
accordingly ranging from $80 to $150 (Spry, Pappu and Bettina Cornwell, 2011).
2.3.3 Place
place is the third key element in the marketing mix which specifically stands for the geographical
location in which Chanel N° 5 will be made available or an area where the product has planned

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to entry. It also reflects the means which will be used by Chanel N° 5 for its distribution in the
foreign market of China. Chanel N° 5 caters to the needs of rich class aristocratic segment and so
the stores of Chanel are mainly located in the most posh regions of the country (Arora,
2011).The company has also placed its few stores at airports because of the fact that there are
high chances of coming of potential customers i.e. the travellers. The company also has its stores
in the lobbies of the five-star and seven-star luxury hotels so that there can be more target
customers. Other than the malls and stores, the Chanel N° 5 is also available at online as there
are number of customers who cannot have access to the product through stores so they can
purchase it through online (Spry, Pappu and Bettina Cornwell, 2011).
2.3.4 Promotion
The success of Chanel N° 5 in the market is highly depended upon it’s a strategy i.e. upon the
approaches and the means which have been employed for making the customers aware of the
product and influence them to make a purchase (Okonkwo, 2016). Chanel N° 5 can be regarded
as a unique brand and well-known brand which possess a huge brand loyalty factor. For the
effective promotions of Chanel N°5, the company places advertisements for the product in the
high-end fashion magazines like Elle, Vogue, etc. Chanel N° 5 also does point of sale marketing
through creative and classy store layouts so that the customers can be attracted (Spry, Pappu and
Bettina Cornwell, 2011). To have high-end promotions, Chanel N° 5 employs Hollywood actors
and supermodels to promote the product through the huge fame of the celebrities. This also helps
in enhancing the brand equity of Chanel N° 5 (Arora, 2011).
Chapter Ⅲ Inspiration for the Development of Perfume Industry in China
3.1 Brand effect building
In China, there have been no historical roots or any kind of cultural roots for the purchase of
perfumes. Due to less or being the lowest segment of luxury in the markets of China, there is a
less demand for luxurious perfumes less demand which is one of the major factor which can
threaten the sales of Chanel N° 5 in Chinese markets. Thus, to manage this situation, there is a
need to have strong brand building. Brand building can be understand as an approach for
generating awareness for the product and promoting and establishing the brand in the market
with the help of tactics and various strategies (Balmer and Wang, 2016). In other words, with the

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help of brand building Chanel N° 5 will develop the brand equity. Following will be the brand
building effects of brand building of Chanel N° 5 to attract the customers in China:
 Chanel N° 5 will define itself as a brand where the uniqueness, the luxury and the status
associated with the brand will be defined to the consumers so that they can associate
themselves with the brand. Thecompany will also define itself with its uniqueness in term
of the selection of the raw materials as Chanel N° 5 offers pure and rare raw materials for
developing the scents. Andthus the global brand visibility of Chanel is another major
factor which can help Chanel N° 5 to grow and establish in the markets of China and
have increased number of potential customers (Bellaiche, Mei-Pochtler, and Hanisch,
2010).
 Chanel N° 5 will differentiate and position the brand in China for fetching the attention of
the masses and standing out from the competition. By differentiating Chanel N° 5 on the
basis of several afctors such as social status, price, style, brand, etc. Chanel N° 5 can
differentiate itself from the alreadyexisting brand of perfumes and also position itself to
be one of the best perfumes in the market. This will result in offering several
competitivebenefits to Chanel N° 5 in establishing the market of China (Balmer and
Wang, 2016).
 To have positive brand building effects, it is also necessary that Chanel N° 5 must expose
the brand over a number of platforms so that more brand building takes place and higher
number of customers can associated with the brand, for this it is necessary that Chanel N°
5 must enhance its visibility on several social media platforms as well as have huge
publicity in the markets of China through advertisements and promotions (Keller,
Parameswaran and Jacob, 2011).
3.2 Improvement of sales personnel quality
Improvement of the sales personnel quality is a key factor in the development of the perfume
industry in China as the one of the most vital and significant factor for fetching the attention of
the masses and persuading them to make a pour chase is the competence and ability of the sales
personnel. Therefore, it is highly essential that there must be improvement in the quality of the
sales personnel (Kapfererand Bastien, 2012).To increase the sales and customer base of Chanel
N° 5 in China, the company will offer adequate training to the sales personnel so that they can

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fetch the customers’ attention and initiate a purchase by the customer. Chanel N° 5 always have
sophisticated, well trained, appealing and competent sales personnel so that they can help the
company in increasing the sale through influencing the individuals (Chevalier and Gutsatz,
2012). As the Chinese market have a low demand for perfumes thus it becomes essential to have
good sales personnel who can not only aware the people about the uniqueness of Chanel N° 5 but
also help in developing the attention of the customers so that the perfume industry can grow and
develop (Arnett and Wittmann, 2014).
3.3 The importance of consumer psychology
Consumer psychology
The most typical task while launching a new product is the response of customers towards the
product which can either be positive or negative. Studying consumer behaviour is very necessary
as every customer has different taste preferences, it is not necessary that every new product will
give positive results. Sometimes a company may also suffer losses after launching a new product
in the market. Simply, consumer psychology is the study of the consumer behaviour, human
brain and his reaction regarding to the product which is going to be launched in the market.
Through this study, marketers understand the necessity of the product and decide whether the
product is required to be launched or not (Schmitt, 2012).
Importance of Consumer Behaviour and consumer psychology to business in context with
Chanel N° 5
Each and every product is designed to satisfy human needs and study of consumer behaviour
helps the organisations to achieve this goal. Consumer behaviour tells the marketers about the
requirements of customers. With the help of this study, marketers will be able to provide
information which can help the producers developing product with more innovations and
advancement according to the recent demands of the market. Marketers, producers and sales
person get knowledge regarding the product by studying the minds of people. Information related
to the design of product, price of product, place for the selling of good, best promotional tools,
etc. are some points which become clear after studying consumer behaviour. It is very important
to design the product according to the needs of customers (Haugtvedt, Herr and Kardes, 2012).
Besides all these things, choosing the accurate promotional method is very much necessary for

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the image of product and reputation of the company. In context with Chanel N° 5 and its launch
in the markets of China, it is necessary that the company must analyze the consumer psychology
in respect with the perfumes (Lu, 2011). In China, it has been analyzed that the perfume industry
holds smallest segment and there is also not demanded much expensive perfumes. Therefore,
according to the needs of the customers and their psychology, it is essential that the company
must offer Chanel N° 5 at somewhat low prices so that it can grab the market. As well as it is
also essential that first there must be developed awareness for the perfumes so that the
individuals can develop a willingness to buy the perfume (Dion and Arnould, 2011).
Conclusion
Chanel N° 5 is expanding its market share and brand visibility with an upsurge and continuous
rate. There is a dominance of the perfume in the fragrance industry due to its uniqueness, high
prices, and strong brand recognition and value generation. Chanel N° 5 is one of the top most
brands of perfumes which is leading the perfume industry since decades and now have turned out
to be a status symbol for the buyers and the customers. From this above report, it can be
concluded that the company is planning to have its business in China and can gain strong market
share as the strengths of Chanel N° 5 supports in attaining high benefits and advantages over
others. These are those pillars of Chanel N° 5 with the help of which the business could gain
higher competitive benefits and lead the market of China. From the weaknesses, it can conclude
the brand must work upon reducing the huge investments and must also develop strategies to
face the market completion. From the marketing mix of Chanel N° 5, it has been analyzed an
concluded that the brand have successful and appropriate marketing mix strategies and have
placed the product mix, pricing mix, place and promotion mix in an adequate manner which can
help the brand in having successful business ventures and string customer base. From the overall
insights of the report, it can be concluded that there must also be paid high emphasis on the
improvement of the sales personnel, effective brand building and understanding of the consumer
psychology so thatthere can be development of the perfume industry of China and the sales of
Chanel N° 5.

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