Chanel global strategy: Mix marketing

Thèmes abordés

Mix marketing of Chanel - Strategy of Chanel about the perfume division - unique business model - brand strategy - global reputation of chanel -

Résumé du document

The Chanel fashion house, more commonly known as Chanel, is a French fashion house founded by Gabrielle Chanel (1883-1971) called "Coco Chanel". At a time when many famous and luxury fashion houses were created, Chanel has maintained its independence. Since 1924, Chanel has belonged to Wertheimer Brothers, a family business.

Between private capital and continuous innovation, Chanel has created a unique business model. Since 1983, Karl Lagerfeld has held the position of artistic director of Chanel Fashion House. Chanel follows a global brand strategy, since it sells all its products under one name. The advantage of this strategy is to give the reputation of a brand to all its products.

Nowadays, Chanel is a worldwide reference in the domain of perfumes. The company originally introduced its range in developed countries with populations enjoying high purchasing power, which is only logical regarding the brand's luxury reputation and its prestigious history. Chanel now has to face the growing globalization phenomenon, which forces the company to settle in new markets and expand its reputation towards tough competitors.

Extraits

[...] Any figure seems to be secret-defense and even the professionals working for Chanel are held by contracts. This secret is also real for the distributor who cannot give the distribution of their sales by mark or by perfume. It was really hard to get information about the brand. Tasks repartition: each of us have decided to work on each part of the project to have a global view, that is why it would be difficult to say who did what part of the mix-marketing study. [...]

[...] Indeed Chanel has made research a priority. Moreover, Chanel has always succeeded with its promotional campaigns. In 1956, the No is the first fragrance to be demonstrated on an American advertising TV show. But the key to the mystification of Chanel products is based primarily on one man: Jacques HELLEU, the artistic director. Upon his arrival in 1965, this art-passionate man knows how to make Chanel's products become incontrovertible, linking them to a particular muse. Some of the famous stars of this time would join Chanel's fashion house, such as Catherine DENEUVE, Carol Bouquet, Vanessa PARADIS or Nicole KIDMAN. [...]

[...] Chanel does not try to reduce the costs, Chanel try to develop loyalty of a clientele. Chanel sells quality and the communication feels the effects of it: purity, lightness, sexuality, and French-style dandy spirit. Creating Global Advertising Chanel's message is to give the feeling to people that they acquired a unique and quality good because of its price, and of its manufacturing. The message belongs to few loan the same for luxury brands. For Chanel fragrances' the advertising takes place in a very particular way. [...]

[...] In France, Chanel has three divisions: Perfumes Fashion (Haute Couture, Cosmetics Ready-to-wear and accessories) Jewellery and Watch However, these entities are very close to each other, it allows the company to keep its durability. Our group choose the Perfumes divisions Chanel controls its entire production chain: from design models to its distribution. The fashion designs are developed at Rue Cambon, cosmetics and perfumes in the premises of Neuilly. Production is also conducted in Chanel's private workshops. Manufacturers are selected and strictly controlled. The distribution policy of the house is also checked: the exceptional nature of the products is matched by an exclusive selection of outlets. [...]

[...] It is clearly a question of selling dream. And it passes by TV advertising, or magazines. The used words are often relative to the dreams, to the imagination, to the purity, to the good to be. We can say that Chanel try to find and emotional approach to the consumer. Furthermore, by using stars world-famous and by spreading the same spotlights advertising executive in the world we can say that the communication of Chanel on it fragrance is standardized. Public relations Communications tools: - Conferences of press - Article in magazines (essentially for women) - Media kits and TV spots Personal Selling Purpose of Chanel: develop loyalty of the clientele with quality products for left a brand image top of the range. [...]