Chanel Marketing Strategy – Marketing Strategy of Chanel: France Chanel is headquartered in Paris, France, and has made a significant stride since its 100+-year-old inception. It is now a well-respected player in the luxury goods market. Gabrielle Coco Chanel, the visionary fashion designer, and artist transformed the company’s offerings and created new, fashionable, and elegant designs for women. This helped it become a leader in its sector.
Chanel At A Glance – Marketing Strategy of Chanel
Company : Chanel
CEO: Leena Nair
Founder: Coco Chanel
Year founded: 1910, Paris, France
Headquarters: London, United Kingdom
Annual Revenue: 10.1 billion USD
Profit | Net income: 214 billion EUR
Number of employees : 20,000
Products & Services: Haute couture, Ready-to-wear, Accessories, Jewelry, Perfume
Chanel Fun Facts: Coco Chanel was a fashion designer known for such now-classic innovations as the woman’s suit, the quilted purse, costume jewelry, and the “little black dress.” She also introduced the phenomenally successful perfu
Marketing Strategy of Chanel
Chanel’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Chanel? Let us discuss.
Segmentation, Targeting, Positioning – Chanel Marketing Strategy
Chanel employs a combination of demographic as well as psychographic segmentation techniques to make its offerings available to the target audience.
The company uses select targeting strategies to promote its offerings to selected customer groups.
It has succeeded in positioning its emotional quotient as more luxury product businesses do. Additionally, it uses a value-based positioning strategy.
Chanel Mission Statement
“To be the Ultimate House of Luxury, defining style and creating desire, now and forever.“
Chanel Vision Statement
“Reinventing fashion by transcending conventions, creating an uncomplicated luxury”
“The paradoxes of Chanel”.
Competitive Advantage – Marketing Strategy of Chanel
A well-respected company:
Chanel has been around for over 100 years and is a pioneer in the fashion industry. Its innovative designs and timeless modernity have allowed it to continue its legacy.
Strong brand portfolio and large SKUs :
Chanel is a large stock-keeping unit and has many sub-brands within a particular product category, whether it’s fragrances, watches, or accessories.
Promotion by sponsoring fashion shows:
Chanel promotes its brand through sponsorship of fashion shows such as Paris Fashion Week and other events.
BCG Matrix – Chanel Marketing Strategy
Chanel’s product portfolio includes fragrances, watches, skincare, and makeup accessories. The BCG matrix has the fragrance and watches product categories as Star. However, due to the presence of many well-known companies in the fashion accessories segment, these are question marks.
Distribution Strategy – Marketing Strategy of Chanel
Chanel distributes its products through a variety of channels including exclusive stores, websites, multi-brand stores, and high-end supermarkets to make products accessible worldwide. There are over 300 Chanel boutiques around the world that are Chanel Boutique.
Brand equity – Chanel Marketing Strategy
Chanel has achieved high visibility thanks to its fashion accessories. It is now worth $7.2 billion and has sales of $5.2 billion according to Forbes data in May 2016. It has been ranked 80 on the Forbes List of the most valuable brands.
Competitive Analysis – Chanel Marketing Strategy
There are many local, national, and international companies competing in the clothing and accessories market.
Market Analysis – Marketing Strategy of Chanel
The luxury fashion and accessories market is influenced by many market forces. Counterfeit and copycat brands can create negative word-of-mouth for the brand, especially high-end brands.
Customer Analysis – Chanel Marketing Strategy
Chanel’s customers are women between the ages of 15 and 40 who love fashionable accessories. Chanel customers are upper-income and middle-class social groups.
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