Chanel started its business in Paris in 1909 and opened outlets in different countries for example, opened a boutique in 1913 in France, and it becomes one of the largest fashion brands in the world. It has produced clothing, footwear, handbags, cosmetics, fragrances and jewelries1 which are shopping goods. The characteristic of Chanel’s products are audacious, perfectionist, unique, passionate and visionary2. Chanel has won few FiFi awards which is a popular award in fragrance market between 1973 and 2006. Although Chanel is a well-known brand in the fashion market in the world; it still has some strong competitors to compete with it for example, Escada and Anna Sui. Chanel N°5 is the earliest, the most successful and representative product of Chanel. This is because “With its links to Andy Warhol and Marilyn Monroe, its Ylang-Ylang from the Comoros and its Grasse Jasmine, N°5 remains the greatest and best known perfume in the world. This timeless classic, both contemporary and unusual, remains the absolute benchmark of feminine fragrances, entrancing, elegant and always modern. 3” N°5 has different smell at different stages: • Top notes: Neroli from Grasse, Ylang-Ylang from the Comoros, Aldehydes. • Middle notes: Grasse Jasmine, May Rose.
• Base notes: Sandalwood note, Vetiver from Réunion, Vanilla from Réunion. Nowadays, N°5 still very popular in the world because of it stills the top seller in Europe5 and won FiFi award in 2003 and 2005. Competitive analysis
By using the SWOT analysis, we will compare the strength and weaknesses of Chanel with the other two brands (Escada and Anna Sui). Chanel :
Strength: Chanel has long resigned as one of the world’s most prestigious brands. Unlike Escada and Anna Sui, it has never fallen out of style. Inevitably much of the credits go to the Chanel’s personal, ground-breaking originality for more than 87 years. The main factors that leads the brand to success over these years is not its apparel but its fragrance portfolio, and above all, Chanel N°5, is recognize as the world’s most famous perfume, and the most success fragrance ever bottled. Compared with the other two brands, Chanel has the longest history (established in 1921) in the fragrance market. Therefore Chanel generates the most loyal customers; and Chanel has website for each location such as Asia, Europe and America and those websites show where its shops are in different location. Therefore Chanel can service its customers in different countries. Weakness: Although Chanel has good image and its own websites, its products may not as attractive as Escada and Anna Sui. This is because comparing with Escada and Anna Sui, Chanel sets very high price and it does not provide enough service for customers such as online shops and before sale services. The perceptual map showing the positioning of these three brands
In order to know the consumer’s preferences and then target those customers, consumers should be categorized into market segments. Chanel uses two ways to segment the consumer markets, customer characteristic and buying Situations, so as to focus on their core customers needs and direction for creating appropriate products. Customer characteristic for Chanel
1. Geographic segmentation – country
For developed countries like USA and developing countries like China4, Chanel mainly targets those with high income, education attainment and fashion-oriented. It promotes high quality and fashionable image instead of attributes such as price and functionality. But for third world countries like Laos, Chanel has created durable, cost-efficient perfume for them.5 One specifically designed for the rigors of dry, dusty, less glamorous environments in the Southern Hemisphere. 2. Demographic
Chanel divided the market into groups based on occupation — professionals and general white collar. It is because their tastes are different. Their needs and responsibilities are...
Please join StudyMode to read the full document