Chanel Brand Strategies Analysis

A I YUDHAKUSUMA 135030200111118

Chanel

Timeless elegance

Woman of her times

History

Founded by Coco Chanel in 1909, France

House of Chanel owned by Alain Wertheimer and Gerard Wertheimer

Over 200 boutiques worldwide.

PEST

Political 1. Regulations to reduce piracy

Economic 1. Increasing purchasing power of the developing world

2. Worldwide economic crisis rebound

Social 1. Asians value prestige brand

Technology

1. Growth of broadband 2. Emergence of mobile internet

SWOT Analysis

Strength

Production Quality

Leading Brand

Distribution Channels

Loyal Customers

High R&D

Strong brand image

Opportunities

Economic welfare improvement

New distribution channels and online shopping

New untouched markets and segments

Increased interest in luxury goods formulation

Weaknesses

Availability of similar products

Lower price by competitors

Possible ‘out-of fashion’ perception

Threats

Chanel counterfeits especially in Asia

Competition&lower cost specially

The risk of banning ingredients and re-formulation

Porter’s 5 Forces

Threat of New Entrance

High

Power of BuyersRelatively High

Threat of SubstitutesHigh

Power of Suppliers Low

Competitive RivalryHigh

Target Audience

Elegant, modern, and classy

Women between the age 18 – 39

Merchandise Info: Classic

Opulent image, no second line

Merchandise Info: Trendy

Trendy products each fashion season

Merchandise Info: Beauty, Skincare & Accessories

Make up, Skincare, Fine jewelry and Watches.

Brand Identity and Core Values

Classic, elegance, timeless, exclusivity

Interlacing of masculine and feminine

Chanel suit, Quilted fabric, Little black dress, Camelia, Chain with leather

Material

The material for chanel bags are silk, caviar scale, sheep scale etc. Which the bags are can’t be destroyed easily

Justification for New Product Line

Making a plate collection enables the consumer to enter the Chanel “lifestyle”

Enables people to use Chanel in a more everyday way

To extend the brand name in plate collection in a luxurious way

To make Chanel products something the whole family can enjoy

Decorative purposes for the home

Packaging

Shape: Round/Square/Rectangular

Colour: Black

Classical textile: Symbolic logo

New line name: la maison

La Maison

Innovation Scales (Product&Packaging)

Packaging: Low innovation

Product: High innovation

La Maison

Advertisement

Chanel's Mademoiselle Handbag Commercial – YouTube

http://www.youtube.com/watch?v=0eYJ_2_Uoog

Conclusion

1. Invest in the emerging markets

2. Pay more attention to the counterfeit and possible invest in technology to prevent it

3. Increase emphasize on new media technology

“Fashion fades, style remains.” – Coco Chanel

References

Coco Chanel – Gerda Buxbaum, Icons of Fashion The 20th Century, 1999

Chanel S.A. Profile - http://companies.jrank.org/pages/886/Chanel-Sa.html#ixzz14CjtJOnJ

Chanel S.A Profile - http://www.linkedin.com/company/chanel?trk=null

Brand longevity: No. 5 is alive! - http://www.allaboutbranding.com/index.lasso?article=421

Botte, D.,2007. Chanel, Collections and Creations

 

Chanel FAQ on Karl Lagerfeld - http://www.chanel.com/en_US/fragrance-beauty/FAQ-28105

The Man Every Woman Wants To Meet - http://joongangdaily.joins.com/article/view.asp?aid=2873865

Chanel Case Study: WorldEvent.com - http://www.worldevents.com/ourevents/ChanelCaseStudy.shtml

Chanel’s Website - http://www.chanel.com/

Chanel’s Day of Disgrace or Power of Market? - http://www.koreatimes.co.kr/www/news/biz/2010/08/123_38917.html

Chanel’s luxury dream is turning to dusthttp://www.marketingweek.co.uk/opinion/chanels-luxury-dream-is-turning-to-dust/3016913.article

China’s Luxury Market Sees Rapid Growth - http://www.just-style.com/comment/chinas-luxury-market-sees-rapid-growth_id106031.aspx

References

Chanel and BMW Gen Y's preferred luxury brands, study finds

- http://www.retailinasia.com/article/sectors/luxury/2010/05/study-finds-chanel-and-bmw-gen-ys-preferred-luxury-brands

Fake Luxury Items Targeted In New York City Crackdown - http://www.brandchannel.com/home/post/2009/12/10/Fake-Luxury-Items-Targeted-In-New-York-City-Crackdown.aspx#continue

China’s Luxury Market Booms - http://english.cntv.cn/program/bizasia/20100818/101544.shtml

Developing World Leading Economic Rebound - http://ipsnews.net/news.asp?idnews=51147

Prestige Brands - Market research best practice: 30 visions for the future : a compilation of discussion papers, case studies and methodologies from ESOMAR 

 

Mobile Internet Services Marketing Set to Boom - http://www.clickthrough-marketing.com/mobile-internet-marketing-services-set-to-boom-19677185/

The Allure of Chanel - http://www.parisvoice.com/index.php?option=com_content&task=view&id=242&Itemid=56

Perfume aimed at youngest women, its toughest market -http://www.nytimes.com/2002/08/15/business/media-business-advertising-chanel-makes-big-pitch-for-new-perfume-aimed-young.html

The Allure of Chanel - http://www.parisvoice.com/index.php?option=com_content&task=view&id=242&Itemid=56

Chanel’s Website - http://www.chanel.com/

 

Coach, Gucci, Burberry have lion share of website visits. - http://red-luxury.com/2010/10/27/coach-gucci-juicy-burberry-have-lion-share-of-luxury-web-visits/