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Chanel

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by

Katie Kennedy

on 14 April 2016

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Transcript of Chanel

Background
Chanel was founded in 1909 by seamstress, Coco Chanel
Originally selling hats and a limited line of garments it became notable for the 'Little Black Dress'
Evolved as a global, leading luxury brand, that has the means to produce an extended product line.
According to Forbes, Chanel's brand value is worth $6.8 billion (2015) making this move a risk with a highly profitable outcome.

"
It's never too early to care about fashion
"

La Petite CHANEL:
Includes Formal wear, Casual wear, Shoes and limited Accessories
Create a memorable, high-quality product for luxury kids fashion market
12 month campaign for Fall/Winter & Summer/Spring Collections
Campaign Timeline
Segmentation, Targeting & Positioning
Unique Selling Point
Segmentation
Targeting
Positioning
To introduce Chanel Kids Collection to existing and potential consumers
To create awareness of existing brand and expanded product lines
To increase sales by 20% in 12 months
To increase penetration rate of Chanel Kids Collection by 32% in the next 12 months
Presented by:
Iryna Bondaruk
Danielle Bullock
Natalia Kozlova
Olga Litoshenko
Fidan Yusifova
The reflection of heritage and fine craftsmanship in the modern quality pieces
International Marketing Communications
BUSM024
CHANEL
La Petite
LUXURY CHILDREN'S WEAR
Outline
Background
SWOT Analysis
Industry Overview
Chanel in the UK
Analysis of previous Chanel advertising success
Campaign Objectives
Competitors Analysis
Segmentation, Targeting&Positioning
Campaign Timeline
Tactics and Implementation
Budget and Cost Break-Down

References

SWOT Analysis
Opportunities
Threats
Strengths
Weaknesses
independent company with sufficient funds
upper-premium quality products
well-positioned brand with great heritage
original style, uniqueness, timeless design
loyal customers
strong brand equity
low affordability in terms of high prices
growing production costs
lack of online presence
emerging markets
growth of Children's Wear Market
online shopping (new channel of distribution)
increasing demand on luxury goods
influence of political and economical environment
fighting counterfeits
competitors
Industry Overview
Consultancy.Uk, 2015
Chanel in the UK
Source: https://www.duedil.com/company/00203669/chanel-limited
Analysis of previous
Chanel advertising success
Want-Satisfaction (O'Shaughnessy, 2015)
Customers are buying the best as a reminder to repeat purchase
Psychological explanation: Power of association
Ad for Chanel Celebrities Associations: Beauty, Success, Confidence, Elegance, Power
Source: Daily Mail, 2016
Campaign Objectives
Karl Lagerfeld
Key Competitors
References
Tactics & Implementation
July- September 2016
Market Segmentation:
Global Personal Luxury Goods Market - Apparel-Luxury Children's Wear Market (Apparel, Footwear and Accessories)
Distribution Channels - Chanel boutiques, freestanding stores (the accessibility of brand should be low to underline its uniqueness)
Interview with Karl Lagerfeld published in Vogue and Vanity Fair
Creating social media buzz by Facebook, Instagram and Twitter platforms in order to build curiosity and create awareness
Direct marketing

Launching at Chanel Fashion Show in Paris with celebrities appearance

After Party Event

Post-Chanel Fashion Show advertisement
Global Flagship Stores Launch with celebrity family appearances

Printed media (Vogue and Vanity Fair)

Out-of-home advertising

Digital Billboards

LCD Mall Screens

Social events

Tactics & Implementation
October-December 2016
Demographic and Psychographic Segmentation:
Elegant, fashionable and wealthy women of middle age (25 and up), family oriented
Gender: women and men
Profit: high disposable income to buy prestige brands
Behavioural Segmentation:
Occasions - regular occasions (casual clothes), special occasions (special offers related to particular customer's needs), seasonal (W/A, S/S)
Benefits - high quality of products (the price conforms with the quality), affordable in stores, excellent customer service
User status - optimized for regular and potential users
Loyalty status - highly and potentially loyal customers
Tactics &Implementation
January- March 2017
Tactics & Implementation
April- June 2017
Examples
Budgeting and Cost Break-Down
Primary Target: women from higher affluent class, fashion forward with families
Secondary Target: men and women who practice and active lifestyle, interested in high fashion
Targeting Strategy: differentiated
Wealthy, stylish and well-balanced lifestyle. For those who has a versatile attitude
Targeted customers:
influencers - celebrities, important fashion personalities of social media
consumers - regular and potential
Thank You For You Attention
Full transcript