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Natalia Bujnowska

on 29 January 2014

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Transcript of Chanel

House of Chanel was founded in 1909 by Gabrielle Bonheur Chanel who was a french fashion designer

The logo: Interlocking ‘C’s as it represents the name of Coco Chanel
As of now Chanel is a french privately held company owned by Alain and Gerar Wertheimer,grandsons of Pierre Wertheimer,who was an early business partner of Gabrielle Chanel

The brand is most famous for its ‘’Little black dress” and Chanel no 5
Headquaters of Chanel is in Paris,France

Worldwide Chanel operates 310 Chanel boutique stores

Ready to wear
Haute couture wedding dresses
Haute couture(Eternal, Classic and modern)

Marketing Mix
Product – fashion and clothing, fine jewelery, watches, accessories, Perfumes and Cosmetics

Place – South America, North America, Asia, Europe, Africa, Australia

Price - £200 - £40000

Promotion – Magazines (Vogue, Elle, Bazaar) Fashion Shows , Celebrities , Launching Events , TV , Exhibitions

Public Relations – special events, blogs, forums, websites

Publicity – Movies, books, cartoons, celebrities

Advertising – film ads with celebrities, printed ads in magazines

Chanel in XXI
Brand identity and core values

classic, elegance, timeless, exclusivity, little black dress
interlacing of masculine and feminine
As the 4th biggest brand in the world, Chanel has kept its place in the market and are continuing to expand in many countries such as in Asia and in India.

Chanel has kept its luxury brand image by offering the best to its clients and also using effective marketing methods which enable them to still be creative and meeting its clients needs.

Chanel has higher turnover in developing countries than it has in the west, however the exact numbers were not available due to Chanel being a private firm.

Their expansion into new market has enabled Chanel to overcome the recession and remain profitable.



High competition

Availability of similar products

Rising cost of production


Expansion abroad


Online shopping and new distribution channels



Economic crisis

Chanel counterfeit

Strong brand image


High quality products

Worldwide known designer Karl Lagerfeld


Mobile applications – available on iTunes, can be used on iphones and ipads. This create new possibility for customers as they are always updated on the newest trends and items.

Social networking – Facebook , Twitter , Instagram (around 600 groups on Facebook - based upon Chanel )

Fan-first marketing – Coco Shine lipstick was first sold through Facebook and then introduced to the marked.

Viral marketing – in 2012 controversial Brad Chanel campaign became extremely popular on social media. Brand is suspected to did it intentionally in order to gain more attention.

Chanel uses a number of strategies to strengthen expansion into Saudi Arabia :

Distinctive ad campaigns. Ravish adverts are broadcasted starring famous celebrities, such as movie stars or models, where they spread messages to customers and promote products through TV.

Brand work to build profitable relations with wealthy customers by providing a one to one service, which matches their luxury high end image. This is where customers are taken to private areas of stores and are assisted with both their shopping and personal needs.

Chanel provides affluent customers with unrivaled customer service, including quick delivery, long or short distance, whatever the time.

Chanel are couscous with their advertising and do not include any sexually inappropriate material or disrespectful language in their adverts. This is forbidden in an Islamic state such as Saudi Arabia, where women are still not allowed to drive a car, or show skin or hair in public.
Building Customer Relationships

As a luxury brand Chanel invest in customer relationships. For exclusive customers, Chanel strives to create a premium membership atmosphere. Parties, such as the Chanel Dinner are held to endorse the 'Chanel Club' image by inviting influential celebrities, such as movie stars and prestigious models to enhance the luxury lifestyle effect Chanel can provide for its customers.
Regulation to reduce piracy – implementation of strong regulation to reduce piracy rates, particularly crucial in Asia region
Growth of broadband – high-speed broadband internet connections had redefined advertising possibilities.
Worldwide economic crisis rebound- crisis recovering, positive outlook in consumer behaviour and hence possible increased sales of Chanel

Increasing purchasing power – increased in income for the customers leads to more desiring luxury goods

Brand value – especially in Asia customer believes that brand like Chanel increases the value of the one who uses it.
Macro environment
Key changes implemented for better performance
Chanel moving to Saudi Arabia was a challenging experience and an opportunity for the expansion of company within a new market. In order to improve their performances within this new market, Chanel had to be willing to first understand the market and connect with the locals/ consumers.

Chanel had to approach the Saudi’s population with different techniques which required adaptation of the brand to meet the local’s expectations and also demonstrates how the brand is very flexible to adapting to different states to reach out to their clients needs.

The key changes to implement better performances in Saudi are to adapt with the Kingdom culture (language), religion and tastes.

Beyond adapting to the Saudi’s culture (language), religion and taste, the level of customer service within the Chanel stores is also required to be impeccable to meet the client’s expectation and represent the brand.

The vendors are required to be warm and be able to fully support the clients, furthermore the service is required to go above helping them with their shopping experience.

In order to also improve their performances the staff are required to speak more languages than just Arabic to enable the company to reach out to their international clients in visit.

Zydrune Petraviciute

Natalia Bujnowska

Jonathan Dineka

Ashkan Vanaki
MGT 3140







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