The major intention of this report is to gain an understanding of how the two companies achieve their marketing corporate objectives through a comparison of two different companies based on their marketing mix.
The two companies that will be based on this report are Christian Dior and its competitor Chanel. Both companies are in the fashion industry. They are the top fashion brands to be known throughout the world.
The marketing mix includes 7 P’s. The basic ones are, Product, Price, Place, Promotion, the extra ones are People, Processes, and Physical Evidence.
Each role of the individual mix will be clarified in each section.
Marketing mix stands in a very important position, and it achieves marketing goals. The reason marketing mix is used is because it sets the position of a company’s product. If a company wants to be successful, it will need to blend all the elements of the marketing mix to match customer’s needs, the marketplace, and the competitor’s activities. If there is one element of the marketing mix is incorrect, it will lead to a failure of the business. Due to different geographic areas, the marketing mix will need to be altered to adapt different markets. Marketing mix achieves marketing goals by meeting the standards of the market it is positioned, each of the mix will blend in with the standards of a company making it successful to market their product or service. The marketing mix of different companies differs from each other, due to the reason that each company will have its own goals.
The roles of the P’s are stated in the following:
Product: It can be a physical product or a service which an organization sells. Price: It is the cost of the product or service that customers need to pay if they wish to receive it. It is also the main financial resource of the company, and it can generate the company’s turnover, or lead to a loss of profit, if the pricing strategy the company use is incorrect.
Place: It is the setting where the organization chooses to sell their products.
Promotion: It is the communication between the company and the customers. This will provide the information that is able to determine the decisions of the customer to purchase the product or service. It creates awareness and perception of the product. People: They are responsible for carrying out important information about the product to the customers. They must be skilled and motivated. Processes: It is the way how customers get their products or services. For illustration; The way how the product can be ordered, by phone, in person, or by internet. Physical Evidence: It is the physical thing customers can see. It gives a perception of the product and the service to the customers.
The term product in the marketing mix can be either physical goods, or services. When a product is a physical good, it will be mass produced or manufactured. On the other hand, when a product is a service, it is often centered around tourism and customer service and so on
The main distribution of both Christian Dior and Chanel are Handbags, Accessories, Cosmetics, and Shoes. The only difference of products among the two companies is the Phone. Christian Dior had released 2 phones so far, and Chanel is still working on their concept phone which is still not confirmed to be released as an actual product. For product map, please see appendix.
Products from the product maps of both companies are existing products. Christian Dior's latest products are Escaleà Pondichéry, and Dior Addict Lip Polish; Diorskin Nude; and Fall Look 2009. Christian Dior’s latest handbags are known as the Granville collection. Chanel’s latest handbags are “Chanel Vinyl cabas with stretch pipping inspired by CHANEL ballerina shoe”, and “Quilted tweed pouch with leather strap and Mademoiselle turn lock” collections. Their latest make up are “The Vitalumiere Complexion”,...
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