Principles in Fashion Marketing: Chanel and Zara.
1. Introduction
Nowadays, Zara and Chanel are known worldwide as two successful brands. The former is a mass clothing retailer whose production takes only weeks whereas the latter is perceived as one of the most established retailers in haute couture, specialising in luxury goods whose production takes months. Zara has more than 800 stores worldwide, in sharp contrast to Chanel which has about 160 boutiques (wilkepedia).
Coco Chanel founded her brand 106 years ago while Amancio Ortega created the Zara label 35 years ago (www.misslopezplane.wordpress.com). At first glance these two companies seem alien in their market outlooks, however in many aspects, such as pricing, quality, and market strategy they are competitors. This is an unexpected outcome and one that will be investigated in this report.
The distinct similarities coupled with the obvious differences between these two brands make them useful and relevant for a comparative analysis. Thus, these brands are the focus of this investigation into the importance of market research and consumer segmentation in identifying and defining target groups and the application of basic marketing principles to ensure customer needs are met.
2. The Marketing mix of the stores investigated
The marketing mix is focused on 4 elements - product, price, place, and promotion - used by business in marketing products or services (Daniels et al., 2007).
2.1. Product and price: What are they selling and for how much
Zara and Chanel have always been perceived as two strong brands which offer clothing to men and women .The former also offers a children’s wear and a Home department. The latter has developed a strength “maroquinerie” (bags, purses etc) and a jewellery offering.
Zara occupies an unusual niche in that it targets and appeals to a mid-market segment in its different operating territories. However, it also appeals to high and low end customer who enjoy the fashionable and easy to wear orientation of
Nowadays, Zara and Chanel are known worldwide as two successful brands. The former is a mass clothing retailer whose production takes only weeks whereas the latter is perceived as one of the most established retailers in haute couture, specialising in luxury goods whose production takes months. Zara has more than 800 stores worldwide, in sharp contrast to Chanel which has about 160 boutiques (wilkepedia).
Coco Chanel founded her brand 106 years ago while Amancio Ortega created the Zara label 35 years ago (www.misslopezplane.wordpress.com). At first glance these two companies seem alien in their market outlooks, however in many aspects, such as pricing, quality, and market strategy they are competitors. This is an unexpected outcome and one that will be investigated in this report.
The distinct similarities coupled with the obvious differences between these two brands make them useful and relevant for a comparative analysis. Thus, these brands are the focus of this investigation into the importance of market research and consumer segmentation in identifying and defining target groups and the application of basic marketing principles to ensure customer needs are met.
2. The Marketing mix of the stores investigated
The marketing mix is focused on 4 elements - product, price, place, and promotion - used by business in marketing products or services (Daniels et al., 2007).
2.1. Product and price: What are they selling and for how much
Zara and Chanel have always been perceived as two strong brands which offer clothing to men and women .The former also offers a children’s wear and a Home department. The latter has developed a strength “maroquinerie” (bags, purses etc) and a jewellery offering.
Zara occupies an unusual niche in that it targets and appeals to a mid-market segment in its different operating territories. However, it also appeals to high and low end customer who enjoy the fashionable and easy to wear orientation of