chanels marketing challenges marketing principles

And now CHANEL is the most popular luxury brand in the French fashionindustry with the fashion having all of value in the previous era.History of Chanel: From a poor beginning, Coco Chan

CHANEL'S MARKETING CHALLENGES

MARKETING PRINCIPLES

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Chanel was established in 1090 in Paris by Coco Chanel The beginning of the high fashionquality that Chanel is managed entirely privately, from the family of the original co-creatorto Mrs Chanel And now CHANEL is the most popular luxury brand in the French fashionindustry with the fashion having all of value in the previous era.

History of Chanel:

From a poor beginning, Coco Chanel went on to build one of the most recognisable fashioncompanies in the world Its 110-year history is a lesson on reading the zeitgeist, reacting tothe mood of the time, and leveraging a designer's own instincts and style Given that it isnow a worldwide powerhouse with a company that includes haute couture, ready-to-wear,accessories, cosmetics, and fragrance Here is how Chanel became the coveted brand thatit is today.

In 1910: In the beginning ,Chanel started out selling hats under the name “Chanel Modes”.The hats have an elegant and simple style, loved by the most famous French actresses ofthe time In 1913: Chanel opened a new boutique in France and introduced a new collectionof sportswear Her line of clothing is revolutionary and changes women's relationship withtheir bodies and their way of life In 1914 to 1929, As Chanel introduced a wide range ofinteresting, lovely, and user-friendly items and models at that time, it was establishing itsown identity and hotness The international economic depression of the 1930s had anegative impact on Chanel's company, but it was the outbreak of World War II that led herto close her business She fired her workers and shut down her shops In early 1950: Chanelmade a glorious return to the fashion world In 1951 to 1962, Chanel was going to launch alot of new products and projects Unfortunately, Chanel finds itself unintentionally wrappedup in a world-changing moment when Jackie Kennedy wears a pink Chanel suit on the dayof President John F Kennedy’s assassination in 1963 January 10th, 1971 CoCo Chanelpassed away From 1972 to now, Due to its wide range of styles and designs, Chanel hasalways been one of the top brands And Chanel keeps getting stronger.

We can see that, Notwithstanding the challenges, Chanel maintains its position as one ofthe trend's top brands.

Luxury Fashion Market was valued at US$ 253.11 Bn in 2021 and is expected to grow at US$332.98 Bn in 2029

A luxury fashion is a brand that is characterized by a high level of quality, exclusivity and highprice tags Luxury fashion is distinguished by its high price points, which are set apart fromeveryday necessities Luxury fashion items should, in theory, be expensive due to high-qualitymaterials, design, and craftsmanship The price point is dependent on the business and brandpositioning point of view, aimed at the affluent consumer group, hence there is no fundamentaldefinition of luxury It's high-quality and long-lasting, but futuristic It's aesthetically pleasingbut unique It's not only rare but also difficult to access Luxury fashion products are made ofhigher-grade materials and last longer than their competition.

Global luxury fashion market

Segmentation of luxury fashion market

Chanel was founded by Gabrielle Chanel, better known as Coco Chanel in 1883, in Saumur,France During her brief career as a singer, Gabrielle Chanel performed in clubs in Vichy andMoulins, where she was known as "Coco" It is said that the name comes from one of thesongs she used to sing, and Chanel herself said it was "a shortened version of cocotte, theFrench word for "woman".

Chanel's starting point was originally a small fashion boutique for women located at 160Avenue Malesherbes, Paris Over the years of development, the brand has expanded itsproducts to all areas: from clothes, shoes, accessories to perfumes and watches, etc.At the same time, Chanel also quickly became the proudest luxury fashion brand of France.However, Chanel's first success only came from a dress she created from an old shirt when itwas cold in Deauville Many people have asked Chanel where she bought the dress andChanel always responded with an offer to make one for them And it was during this timethat the "House of Chanel" brand was born The Chanel brand is better known for designingrevolutionary outfits that liberated 20th-century women from dresses the tight fit they arewearing into more natural and comfortable dresses The company has more than 20,000professionals working in its global workforce.

Company Profile

Overview of the Chanel

Chanel is one of the leading luxury brands that started as a hat boutique.Some years laterit also introduced sportswear The company has expanded its product line a lot since then The brand has become synonymous with ultimate luxury and the highest level ofcraftsmanship.

It has gained fame worldwide for its great quality products, creativity and excellence.The product line offered by Chanel includes Ready-to-Wear, Leather Goods, FashionAccessories, Eyewear, Fragrances, Makeup, Skincare, Jewelry and Watches.

Chanel is also known for its Haute Couture collections that it releases twice every year.Thecompany has also acquired a large number of specialized suppliers that are collectivelyknown as Metiers D’Art.

It also invests heavily in innovation and R&D to maintain excellent quality and customerloyalty.

Chanel's Marketing Strategy

Product Strategy

Chanel is a leading luxury brand that places a heavy focus on product quality, craftsmanshipand excellence.It invests heavily in its people, innovation and research and development.The company follows a premium pricing strategy on all its products.

Brands that adopt a premium pricing strategy are often known for the uniqueness, designand quality of their products.

Despite the premium pricing, the company has a large and loyal customer base from across the globe, which is because of the brand’s popularity and great image.Premium pricing isgenerally followed by all brands that sell high end products.Chanel enjoys solid profitmargins driven by its premium pricing policy.

Its revenues declined in 2020 due to the pandemic, but the company still showed resilience inthe face of manufacturing shutdown and supply chain disruptions.

Chanel's Marketing Strategy

Pricing Strategy

Chanel's Marketing Strategy

Distribution Strategy

Chanel caters to the high-end aristocracy segment and its stores are often located in high-endluxury locales It also has shops at the airports because that's where most of the potentialcustomers travel

Chanel stores are present around the world including cities such as New York, Boston,Amsterdam, Sao Paulo, Sydney, Hamburg, Cannes, Miami, Bangkok, Geneva, Tokyo, SaintTropez, Moscow, Los Angeles, Paris, Dubai and London- which are the largest in the world

Chanel's Marketing Strategy

Advertising strategy

Chanel uses Hollywood supermodels and actors to model their brand and is heavily advertised due tothe fame of the models, who also benefit from Chanel's brand equity, thus create brand synergybetween them.

Chanel also attracts a lot of attention when celebrities wear its clothes or carry bags on the redcarpet of prestigious awards and film festivals, attracting the attention of journalists and critics.fashion magazines, who then recognize brands and products through various channels such asmagazines, blogposts, newspapers and TV shows as well.

The brand has a strong digital marketing & social media strategy, and uses video content to promoteits product-line Hence, this concludes the marketing mix of Chanel.

Chanel's Marketing Strategy

Chanel uses a mixed promotional strategy and advertises its luxury products via different routes.Thebusiness operates through in-store sales, online sales, advertising, billboards, and public relations.Between 5 & 6 fashions shows are held each year in the fashion capitals of the world; Paris, NewYork, and London

Chanel promotes their product range through fashion shows and merchandise demonstrations Chanelchose to advertise in expensive magazines that cater to their target market, influential buyers.Magazines such as “Marie Claire” are influential to their market base, which includes professionals.Publishing advertisements in this type of magazine is purposefully profitable

The driving force behind the Chanel product lines has permanently remained exclusively and so itsadvertisements imitate its individual internal views Celebrated brand ambassadors are selected toencapsulate the brand image Various models and actors have been used to promote products.Marilyn Monroe, Keira Knightley, Vanessa Paradis, Nicole Kidman, Kirsten Stewart, and morerecently Jennie Kim By utilizing high-profile figures in their advertising campaigns they haveimmortalized the brand name that symbolizes the heritage, lineage, and the mastering of providingluxurious products That is the main promotion way of Chanel.

Marketing Challenges

Challenges that chaner faces on the way to develop and maintain its brand.

Initially, when it was first launched, due to the strange style as well as the barriers of traditionalcostumes, chanel had many difficulties in approaching customers.

Another major challenge for Chanel is that competitors in the same business offering similar clothingand accessories could reduce its market share It is also worrying when chanel is a brand but alwaysmaintains a strategy of not discounting.

Less promotion of products on social networks, chaner aims to serve customers with direct productshopping experience, so it is difficult to reach customers at first.

Proposing marketing solutions

In the haute couture world, fashion houses are often the ones who set trends and they often discussthis together, in order to boost sales of all brands.

Chaner builds his own line and doesn't follow anything but his own style When it comes to Chanel,everyone remembers elegance and courtesy Up to now, this strategy is still very effective whenconsumers are still satisfied with Chanel's "obstinacy", while helping the brand stand out.

Not fashion, new style is number 1.

Chaner Say no to discounts

Instead of reducing the price, chaner chose to develop more popular product lines to satisfy thecustomer's need to own an appliance With prices that are said to be affordable that any fashionistacan afford, Chanel's sales have been growing steadily without any discounts, while maintaining itsbrand position.

Say no to selling on social networks ,for chanerSocial Network is just to assert class

The purpose of using social networks is really only to provide the latest information, fashion events ornew Chanel collections to increase brand presence, not to sell row The company focuses onmeticulous customer care and advice, delivering the best experience directly, not just a few shortanswers on Facebook or Instagram

Strong brand identity: Chanel has a strong and recognizable brand identity that is reflected inits advertising campaigns The brand's logo, typography, and color palette are all instantlyrecognizable.

Use of iconic celebrities: Chanel has consistently used iconic celebrities like Marilyn Monroe,Catherine Deneuve, and Keira Knightley in its advertising campaigns This has helped the brandto create an aspirational image and connect with its target audience.

Emphasis on quality and craftsmanship: Chanel has always emphasized the quality andcraftsmanship of its products in its advertising This has helped the brand to position itself as aluxury brand that is worth the investment.

Innovative use of technology: Chanel has been at the forefront of using innovative technologyin its advertising campaigns For example, it was one of the first luxury brands to create avirtual reality experience for its customers.

Consistent messaging: Chanel has always maintained a consistent messaging in its advertisingcampaigns The brand's advertising consistently emphasizes its heritage, elegance, and timelessChanel's advertising strategy has been one of the most successful and iconic in the fashionindustry The company has always maintained a consistent and sophisticated image that reflects itsluxury brand identity Here are some key elements of Chanel's advertising strategy: