One of the most important events of Chanel was in 1910 when Gabrielle “Coco” Chanel opened her first shop under the sign “Chanel Modes” in Paris. The headquartered in Neuilly Sur Seine, France. Recently, it has grown in that time to be over 200 boutiques in the world wide. The first Chanel boutique opened in UAE was in Burjuman center in 1997. Chanel has many lines of products which are fashion , perfumes, handbags, accessories, sandals and shoes.
I will target in the existing segments for Chanel handbag by using product development strategy which is a growth strategy through offering new or modified products to current market segments. Also, I will discuss the marketing mix which is 4 major: ProductPricing Place (Distribution)Promotion.
A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. I found from the questionnaire that the customer needs and want, it depend on usage and budgets.
* That Chanel handbags should be different from their competitors, so I suggest offer new handbags that has a nice color attracts the small girls from 5 to 15 year age. * Also, Chanel can develop the classic handbags by make party handbags and work handbags on one product.
(Chanel handbag Proposed Price):
AED 15, 000 to AED 4,000.
The original prices of Chanel handbags is between 17,000 to 20,000. According to the survey I found that many ladies want to reduce the price for Chanel handbags. Louis Vuitton and Gucci are strong competitors because like Chanel. Louis Vutton : AED 14,000 to AED 3,000.
Gucci: AED 9,000 to AED 3,500.
* Depending on questionnaire, I found that not much ladies can bought the Chanel handbags because their high price ,so I suggest to Chanel to offer new handbags that have a normal fabric and sell in 4000 to 2000, to target the middle class ladies and then will cause high demand on Chanel...