Chanel Marketing Plan

Marketing Interim Report By Bilal Rasheed & Hisham Ahmed Executive Summary Chanel’s objective is to provide a sense of luxurious, elegant and fashionable bringing up for women introducing timeless style. If Chanel wants to retain the same kind of brand image then it needs to continue with the same strategies which are currently being applied. However, in order to increase market share, emphasis on mass media and e-commerce would be effective which the competitors are already practicing. Chanel’s vision is’ o be the ultimate house of luxury’.Chanel is an established brand and specializes in haute couture, luxury goods, accessories and ready to wear cloths. With the vast positive change in the global economy, the trends are changing with time like demand for luxury products is on its boom. Company Summary Chanel started back in 1909 and it is operating mainly in europe,asia and most parts of united states. The house of chanel is known for its fashion stores all over the globe. In this new milinoum Chanel stepped up its purchsess in luxury sectors.Chanel offers and is known for fashion apparel ,watches ,eye products and various other fasion able accessories for women. Products and services Product description: Chanel specializes in wide range of products. Famous Perfumes by Chanel include Allure, Chance Eau Tendre and N5, which used to be global perfume leader and is still one the best perfumes in the world. The company offers trendy handbags as well. These emply different leather and locks in order to be adjustable to individuals One of the famous unisex wristwatches line by Chanel is J12.Chanel also has a clothing line for women. Competitive Comparison: Brands like Louis Vuitton, Gucci are strong competitors for Chanel as they have a very strong image amongst the people. Technological needs: Chanel, a luxury goods brand with a long tradition, has evolved into what it is now by constantly adding new innovations to its tradition. Instea d of resting on the business fields where it has proven successful, the company has brought forth new ideas. Technology management refers to business management conducted around sophisticated technological proficiency.Although Chanel was a latecomer to the watch business, Chanel’s commitment to technology is noticeable in the establishment of its own workshop. Chanel’s commitment to technology will be considered through the example of the â€Å"J12,†, Chanel’s first mechanical watch. Market Analysis Target market Target Market Segment Strategy: Chanel customers are women who wants to identify what Chanel represents which is elegance, simplicity, modern and class. Chanel’s cosmetics are targeted to younger consumers but they still retain the classic market which is their strong suit.With the launch of chance perfume, Chanel is targeting women between the age group 18-39. Market Trends: Trends change every now and then and it is important for a busin ess to keep a track of changing trends especially in the target audience. In Chanel’s case changing trends could be more like e. g. ; in accessories, size of pendants or shapes of earrings keep changing with time however, style remains the same and Chanel’s market image is such that what they bring into the market is labeled as fashion. Market Growth:Chanel’s success started from the sale of their famous, world leading perfumes, N5. Later on in 1920’s and 1930’s they decided to launch new perfumes amongst the public to gain more market. Soir De Paris was another fragrance launched after N5. To keep flourishing in the market and to make the business grow, cloths were also being sold under Chanel’s name. In late 1980’s more than 40 boutiques were opened worldwide. This was later followed by other product chains like Shoes, Chanel watches and various other highly priced accessories Industry AnalysisIndustry Participants/Key Players: The key players in the industry same as Chanel would be; * Louise Vuitton * L’Oreal’s Lancome * Calvin Klein * Gucci * Burberry * Alberta Ferretti * Bulgari * Canali Main Competitors/Competitive Analysis: Chanel’s biggest competitors in the market would be L’Oreal’s Lancome who are also focusing mainly on luxury cosmetics along with Chanel creating a very tough competition. Not just this but other renowned brands like Gucci and LV are also equally strong competitors specifically for Handbags and other accessories.Perhaps it’s really hard to dominate in such a market where brand image for competitors is also very strong. Strategy and Implementation Summary Marketing Strategy: Chanel is focusing a lot on developing plans to take an impressive lineage into today’s market. During 1999, Chanel took an initiative to target the age group of people under twenty five which was earlier ignored by the company. It was really important to take some ne w initiatives like this in order to compete with competitive fashion stores like C Pricing Strategy: Chanel is known for its luxurious products around the globe.To Maintain this top quality image products, high prices are being charged for its products. For similar reasons, their products are usually not discounted as it won’t be really consistent for their image at all. Prices for their product are decided and selected entirely by Chanel, France. Promotion Strategy: To grow their market, Chanel focuses more on promoting their new products instead of older ones. For this, their website is updated frequently providing information for all the up to date promotions and also about their new upcoming products, if any.Not just this but to keep up with customers, very clear and easy information is provided for the customers to reach the company and contact them. This would help the company get their feedback and work on it in order to main the relations with customers and satisfy th em. Distribution Patterns: Products by Chanel such as their perfumes are not only sold in their own boutiques but also by other distributers. E. g in Canada, Distributors such as The bay, Luwinna etc are selling their perfumes aswell. Basically chanel uses a comparatively short channel for distribution.Chanel has mostly signed with local distributors in different country along with their own boutiques. This is just to diversify and make the most out of sales. SWOT Analysis Strengths * Very strong brand image * Efficient management with intense training * High quality products Weakness * Poor geographical coverage * Work needs to be done on website as it does not specifies the prices for products Oppertunities * Can look forward to expand more, specifically In asia irorder to gain more market * Keep up with technology Threats * Highly priced and counterfiet productsWeb Plan Summary Website Marketing Strategy: To grow sales and gain a foothold in competitive markets, having so many to ugh competitors, products were sold online directly through their website making it easier for all the customers to get the product. This would definitely enhance their total amount of sales at the end of the day. Development Requirements: * Invest in the emerging markets, open more stores * Increase emphasis on new media technology * Pay more attention to the counterfeit and possible invest in technology to prevent it.