Marketing assignment

I choose two bags, one is from Chanel, and the other is from H&M. Although they are in the same category, they have different competitive advantages.

Different competitive advantagesCHANEL BAG H&M BAG

Promotion Quality Benefits of use Design features

Placement price

Chanel bag--- promotion Chanel is a very famous brand and pretty popular. It has

designed lots of wonderful products and some of them have been kept as the classical products. The bag that I choose is one of them. When the product is designed, the Chanel will hold a collection to promote the products. It also puts the advertisement on the internet, TV, billboard and the magazines that about the fashion. Another important way to promote this classical bag is words of mouth. The bag can be the classical, because the reputation and the good reply from the consumers. The chanel is a very effective brand. On this bag, it has the brand of Chanel. When people see it, they probably think it is perfect and want to buy one. Some of the super stars also have that bag. It is also a good promotion. So it is a strong competitive advantage.

H&M---promotion Although H&M is well-known in the

world, the influnce is not effective as Chanel. For this bag, it probably only put on the shelf of the H&M store, maybe put the advertisement on the magazines. The brand of H&M is not obvious on the bag, even if people see others own it, but they don’t know where to buy it.

Chanel---quality The bag from Chanel is pretty good.

It is made by people. The worker pay attention to all the details. The material is chosen carefull by worker. The quality is ensured. It has been a luxury for such long time, it’s quality is also proved.

H&M---quality The reply from the customers for the

H&M bag is not very good. Lots of them reflect the bag is not durable, it is very easy to be broken. So we see the quality of it is not very good. H&M doesn’t gain the competitive advantage about the quality.

Chanel---benefit of use Chanel is a famous brand for the

luxury. It can show the identity and the level from the owner. People wear it to attend the pary, thay can get the envy from others, and make they feel good. This bag is a classical one, it can also show the owners’ insight. This is also a very good competitive advantage.

H&M---benefit of use We know that the bag from H&M is

not very durable. It can only use as the decoration. It can show the some fashion. In my opinion, it’s benefit of use it less than Chanel’s.

Chanel---design feature This bag is the classical one. One of

the reason for it can be kept for such a long time, because people like this style very much. It is designed by famous designer. The classial probably won’t out off the fashion. This is one of the competitive advantage.

H&M---design feature The bag from the H&M is show the

fashion, but the fashion is always changing. Maybe the feature is at the top of the vogue, but it will be replaced soon. There is no classical bag in H&M. So it will be washed out when new style arrives.

Chanel---placement Chanel is a luxury brand, it is only

placed in high level department store. In big city it is easy to find the shoppe of it, but the number of it is not very much. In middle or small city, it is very hard to buy the Chanel bag. People who live in those kind of city, they need to go to big city to buy. It is not convenient. This is not a advantage.

H&M---placement The shoppe of H&M is easy to find in lots

of city. Even if in a same city, there are plenty of shoppes. It is easy for people to buy them. Or people are doing the window shopping, they see the bags from the shoppe, maybe they buy it. Having a lot of stores is easy to do the push strategy . So it is a very good competitive advantage for the H&M bag.

Chanel---price The target market of the chanel is the

people who have high imcome. It is a smaller market. The normal people can’t afford it or don’t want to buy it because they think it is not very useful.

H&M---price The price of H&M is much cheaper

than Chanel. Normal people can afford it. For this bag, the people who have a low income can also afford it. The target market is big.

Conclusion The bag from the Chanel and H&M, both of them have

competitive advantages, but i think the bag from Chanel is better, because it have the good promotion. The brand of it is a powerful advertisement, it also have other strategies to promote. It’s quality is so good that gains lots of reputation from the costumers. It has lots of benefit of uses. People think it is worth to buy it although the price is high. The last competive advantage is design feature. It is design by famous designer, and it is as the classical one, it won’t be out of the fashion.

So the Chanel bag has the stronger competitive advantages.