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Market Segmentation Of Chanel And Ports

Paper Type: Free Essay Subject: Marketing
Wordcount: 1809 words Published: 18th Apr 2017

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Chanel, one of the most premier luxury product company (Thorogood, ND) that is from France, was established by Gabrielle Chanel who was “the most influential designer of the twentieth century” (Chanelworld, 2006) in 1910. The design style of Chanel inclines toward unadorned to instead of gorgeous (Yournewfragrance, 2010). The first design of Gabrielle was hats which were sold to fashionable mistresses in a meeting. It was an opportunity that making numerous fashionable noblewomen know her products. Except for hats, costume, jewelry, perfume and textile were devised for women (Womenshistory, 2010).

1.1.2 Ports

“I make clothes for a woman who is intelligent: a woman who is doesn’t want to wear things that will distract from her” —– Luke Tanabe (PORTS founder)

Ports was founded by Luke Tanabe in Canada in 1961. He dreamed of establishing company about luxury clothes in virtue of the social reform which led to the design style of clothes to be transformed radically (Ports-intl, 2010a). His first design was the NO.10 blouse which inaugurated the new fashion epoch. The blouse was popular in Canada, the UK, and Australia because of plain and exquisite tailoring (Ports-intl, 2010a).

1.2 Theory

1.2.1 Market Mix

Marketing Mix is “that element of a firm’s marketing strategies which are designed to meet the needs of its customers”, including product, price, place and promotion (Hall et all, 2008:p75). It means that companies must use reasonable prices and complete promotions to sell correct products in the right places (Hall et all, 2008:p75)

1.2.2 Market Segmentation

Market segmentation means that companies stand on marketing research to confirm and classify the purchasers which have parallel needs, embracing geographically, demographically, psychographically, and behaviourally. (Hall et all, 2008:p66)

1.3 Aims

According to Cnga.org (2009), China will become the third biggest market of luxury during 5 years. Therefore, in this report, Chanel and Ports are analysed about the Market Mix and the demographics of Market segmentation in China. Furthermore, aspects of these two companies are compared and contrasted. Finally, there are the conclusion and recommendations to Chanel and Ports.


2.1 Market Mix

2.1.1 Product Chanel

Product is one of factors in Marketing Mix. Chanel offers fashionable, luxurious and stylish products (935.ibm, 2002); and further, the materials of Chanel’s apparels and leathers are admired by consumers on account of retaining the stuff stronger (Yournewfragrance, 2010). What is more, Chanel sternly restrains the design, manufacture, consignment, and commercial to promise the best criterion of the product (935.ibm, 2002). Ports

The attires of Ports, which are use the best fabric from Italy, are celebrated because of shirts (Ftchinese, 2007), such as the plain and exquisite NO.10 blouse. Moreover, the packaging is one of the best methods to show the products for companies. The colour of Ports’s shopping paper bag was changed black into brown which is Ports’s symbol.

2.1.2 Price Chanel

Price is another aspect for Market Mix. The price of Chanel must far higher than other ordinary similar companies owing to two premier causes. For one thing, Chanel is an international luxury brand so that its material is quality and the careful tailoring which is second reason. For example, According to Ib100 (2008), a shirt of Chanel is sold approximately RMB 2,600 in China; however the shirt of Ports is sold RMB 1,799 (Ports-intl, 2010b). Ports

The prices of Ports’s merchandises are reasonable when compared to other luxury brands. According to (Ports-intl, 2010c), the prices of shirts are between RMB 1,100 and 2,000 in China, however, the prices are 30%-50% lower than other luxury companies for similar quality and style, which can encourage consumers to spend. (Blog.sina, 2009)

2.1.3 Place Chanel

The place is the third part in the Marketing Mix. Cn.chanel (nd) shows that there are 17 Chanel boutiques to be managed in China, and most of them are located in upscale shopping centers or in stores that have numerous purchasers. Major airports also have Chanel boutiques. In addition, Chanel plans to sell its products on the Internet. Ports

Ftchinese (2007) report that Ports has 370 stores all over the world; nevertheless, approximately 82% of its stores are built in major cities of China because the Chinese are its favorite customers, such as Beijing, Shanghai and Xiamen ( Portsdesign, 2005:

P4). Furthermore, these stores are located in large shopping centers with a heavy flow of consumer traffic. Finally, products of Ports also are sold on the Internet (Ports-intl, 2010d).

2.1.4 Promotion Chanel

The last element is promotion, which can help companies sell their products. There are two different promotional measures of Chanel. First of all, the attire of Chanel is demonstrated in movies (Womenshistory, 2010). Apart from movies, famous actors are invited to occupy spokesmodels, such as Nicole Kidman who can make the products become classical (Yournewfragrance, 2010). Ports

There are three different manners to be used by Ports. To begin with, Ports is “one of the largest advertisers in the PRC” that is a fashion magazine(Portsdesign, 2005:p9). Secondly, the clothes were worn in movies, such as The Devil Wears Prada. Thirdly, it is the best manner that Ports contribute RMB500, 000 to Chinese Red Cross because of Wenchuan earthquake in 2008. It not only helps victims, but can also increase the image of Ports.

2.2 Market Segmentation

The primary aspect of Marketing Segmentation is demographics which will be introduced, comprising six parts, such as age, income, gender, social class, religion and ethnic grouping (Hall et all, 2008:p67-69)

2.2.1 Chanel

Chanel stands on gender, income and lifestyle to segment its market. To start with, the feminine products are the most important orientation for Chanel, although Karl Lagerfeld, the head designer of Chanel after Gabrielle Chanel, began to design the merchandise for males in 1981 (Yournewfragrance, 2010). Besides, most of consumers are gentlewomen who do not need to possess vocations and always attend different banquets which are their lifestyles; hence Chanel has no misgivings about the social class of its consumers, and it barely attaches importance to the income because the cost of Chanel is high. Luxuryinstitute (2007) shows, consumers of Chanel have an income above RMB 2,002,000.

2.2.2 Ports

Market segmentations, such as age, income, lifestyle and social class, are used by Ports to decide the scope of purchasers. Above all, the audiences of ports aged between 25 and 45 (Portsdesign, 2005:p5), thus Ports does not produce the apparels of children or elderly humans, and it merely designs for adults which are its orientation. The income, lifestyle and social class are, moreover, the main aspects to classify the consumers. It is a chance for Ports that increasingly women have their own occupations in China because Ports identifies the consumers who have high income over RMB 100,000 every year, living and working in large modern cities, such as manager, lawyer which occupation request well education (blog.sina, 2009).


3.1 Compare and contract Market Mix of two companies

3.1.1 Product

Both Chanel and Ports use the quality fabric to design the luxury products for females; nevertheless, Chanel severely dominates designs and manufactures to ensure the barely flawless products, hence consumers are inclined to treasure its products which are symbol of purchasers’ status. Ports is different from Chanel, it tends to design the attires for career women.

3.1.2 Price

Furthermore, the cost of Ports is lower than Chanel’s because of two reasons. For a start, Chanel is more celebrated than Ports; moreover, the cost of Ports are lower than other luxury brands because the products of Ports are made in China so that barely deliver the minimum importing tax to Chinese government and there has a low labor cost in China (blog.sina 2009). As a result, the productions cost are lower, the prices are lower too.

3.1.3 Place

The largest difference between Chanel and Ports of Sale Place is that only 17 Chanel boutiques are managed in China; in contrast, the Ports’s main marketing is in China. However, Chanel is similar to Ports because they sell their merchandises in the large shopping centers or on the Internet.

3.1.4 Promotion

The similar promotions of Chanel and ports are that their apparels were used in the movies, and invited famous actors to occupy their spokesmodels. Whereas, it is the large different that Ports donates money to humans who encounter disaster, such as Whenchuan earthquake.

3.2 Compare and contract Market Segmentation of two companies.

After Market segmentations of Chanel and Ports were analyzed. Income and lifestyle, which are element of segmentation, are the similar for those two companies because both them are international luxury goods so that the prices are higher than other common clothes companies. However, some factors of segmentation are different between Chanel and Ports. The biggest dissimilarity is that Ports produces the goods for females and males who aged 25-45; on the contrary, the women are main consumers for Chanel which company do not worried about the age, therefore the elderly women, such as Queen Elizabeth II, also can wear the attire of Chanel. Consequently, Ports segments the marketing though age; in comparison, the gender is the main segmentation for Chanel.


All in all, even though Chanel is more famous than Ports, Chanel is luxury brands with Ports; they have different or similar manners to operate their companies, such as promotion. While Ports and Chanel showed the clothes in the movies, Ports also use other significance ways to promote which is a large different for Chanel.


Chanel depends on movies and actors to promote their products; however, Chanel can study Ports, using money to help impoverished humans which is one of the best ways. It can increase image of Chanel, making human consider that Chanel has the common aspects too, and assist others. In addition, ports still need to use more advertising to increase the celebrity rating because it is not extremely well-know in worldwide.


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