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Chanel Media Plan

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Kaede Luna

on 13 July 2016

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Transcript of Chanel Media Plan

Media Budget
and Strategy

Advertising Period
From September 1, 2013, to March 1, 2014, Chanel No. 5 will be promoted throughout the United States. Advertising for the product will be especially heavy during the 2013 holiday season and around Valentine’s Day in February 2014.
CHANEL: Company Overview
The Fragrance Market
Segmentation and Media Target Audience
CHANEL No. 5: Product Class & Size of Markets
Environment & Competitive Strategies
The global fragrance market consists of both men and women's fragrance
Global market is approximately $8-10 billion
Consists of household fragrances (49% of sales), personal care fragrances (25%), and fine fragrances (21%)
The US market accounts for 17.2% of all fragrances
Fragrances for women are the largest category of perfume sales (66.2% of all sales)
Department stores sell the most perfumes and fragrances (47%)
Expected New Product Introductions and Improvements
4 Ps
Dior J'adore:
Guerlain, Shalimar:
Hermès, 24 Faubourg:
SWOT Analysis
Perceptual Map
Purchase Patterns & Seasonality
Founded by Gabrielle "Coco" Chanel in 1883
Privately-held company
Opened first boutique in Paris and designed fashionable clothing for French actresses
Chanel No. 5 is classified as a premium women's fragrance.

The perfume industry globally accumulates annual sales ranging from $25 to $30 billion

Last year, the U.S fragrance industry’s sales revenue amounted to $5.2 billion

The French government has reported that a bottle of Chanel N°5 is sold somewhere in the world every 30 seconds, with retail sales estimated at more than $100 million a year
Trade and Consumer Promotions
Strategies include the point-of-sale displays, samples, and perfumed magazine ad inserts.
The 2013 holiday season turned out to be very lucrative for Chanel. Traditionally, a massive 54% of the total annual consumer expenditures on perfume are on purchases during the holiday season.
Marketing Objectives/Strategies
Marketing Objectives/Strategies
Advertising Strategy
Media Objective
Price range: $25-$4200 respective to its line extensions
0.25 fluid ounce costs $120.00
Attributed to perceived luxury value and designer appeal
• Product: Hermès, 24 Faubourg
• Price: $100-230
• Promotion: magazines, newspapers, online commercials and others.
• Place: Malls, department stores, Hermes stores, duty free stores in airport, cosmetics stores (likes Sephora), online shops, and other perfumes stores.
• Target Market:
o Adult women who have quite high incomes.
o Men who want to buy gifts for their girlfriend or wife.
•Product: Guerlain, Shalimar
•Price: $135
•Promotion: TV commercials, posters, magazines, newspapers, online commercials and others.
•Place: Malls, department stores, Guerlain stores, duty free stores in airport, cosmetics stores, online shops and other perfumes stores.
•Target Market:
oAdult women who have quite high incomes.
oMen who want to buy gifts for their girlfriend or wife.
Film and Media Production:
National and international distribution
Department store sections and boutiques
Online stores and auctions
No promotions planned other than media campaign
One Side Message- mentioning only positive attributes and benefits.
Emotional appeals- customers’ social and/or psychological needs for purchasing a product or service.
Do not need to be rational, information-based appeals because fragrances are not physiological needs.
CHANEL No. 5 "LEGENDS" Campaign Storyboard
• Product: Dior: J’ adore
• Price: $70-115
• Promotion: MTV commercials, posters, magazines, newspapers, online commercials and others. J’ adore had a campaign with Charlize Theron.
• Place: Malls, department stores, Dior stores, duty free stores in airport, cosmetics stores, online shops and other perfumes stores.
• Target Market:
o Adult women who have quite high incomes.
o Men who want to buy gifts for their girlfriend or wife.
CHANEL No. 5 "LEGENDS" Campaign Print Ad
Total Projected Cost of Ad
Media Production
Film Ad Previews
CHANEL No. 5 "LEGENDS" Campaign Billboard
Increase market share by 5% in premium fragrance market by 2015
Maintain image as luxurious, classic perfume and continue to stay relevant in the minds of more mature users
Also want to attract a slightly younger audience who are beginning to discover their own identities as affluent, established women
Total Budget: $41 million
Media Schedule

Maintain market share
Appeal to and raise product awareness among a younger audience
Reaffirm Chanel N°5's timeless qualities
Fragrances achieved 8% growth in 2011, after declining in 2009 in during the economic downturn
By 2010, consumers began purchasing perfumes again, resulting in $5.8 billion of new revenue for the fragrance market
Retail sales of fragrances are expected to increase by 6% over the next period to reach $6.1 billion
With more than one hundred new launches of fragrances a year, it is challenging to make a brand stand out and Marketers must address a loss of “uniqueness” within the realm of fine fragrances

Sold in a simple rectangular glass flacon with a spray top for application.
Label is a clean square of white with a black border and lettering
Increasing awareness of Chanel N°5 among a younger audience of fashionable women

Reinforce N°5's timeless, classic attributes to the established, mature users
Middle-aged women whose net household income exceeds $100,000

Younger women (ages 25-35) who may have lower disposable incomes but still regard Chanel N°5 as a desirable premium fragrance.
Chanel N°5 will be advertised throughout the year on a pulsing basis
Full transcript