Marketing essay on Chanel

Topics: LVMH, Luxury good, Luxury vehicle Pages: 18 (4297 words) Published: November 19, 2013
January 2013

Markets, Marketing and Strategy Report

MMS Report,

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January 2013

Markets Marketing and Strategy Report

Executiv summary :
This report provides an analysis and evaluation of Chanel’s marketing strategies and of its place in the Luxury market today.
Methods of analysis include three theorical models that help to understand the complexity of Chanel business environment and its main resources. Those three models are: PESTEL, SWOT and 5 Porter’s forces.

In this Report we find out that in period of economic crisis, luxury was seen as unnecessary and even selfish, Luxury Brands might have a bad reputation lately. It is extremely because of their manufactures in China or India and other countries like those, and also because of counterfeit that destroy brands image. But then if we look at the marketing power of chanel through it opportunities, but also through its strengths and its lack of weaknesses we can easily understand that it is not a common luxury brands.

We can conclude that Chanel is actually a company with a huge marketing power and almost a genius for selling products with outstanding quality and a real shining image.
Recommendations discussed include Technological, social, economical and political environment of Chanel but also an analysis of the strengths and weaknesses of its product, distribution, image, communication and prizes.

Chanel Brand strategies

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January 2013

Markets Marketing and Strategy Report

Table of contents :
I-) Analysis of Chanel’s Business environment
I.1 : PEST model
I.1.1 Political environment of Chanel
I.1.2 Economical environment of Chanel
I.1.3 Social environment of Chanel
I.1.4 Technological environment of Chanel
II-) Analysis of Chanel’s ressources
II.1 : strenghts and weaknesses
II.1.1 : Chanel’s product
II.1.1.1:Strengths of Chanel’s products
II.1.1.2 Weaknesses of Chanel’s product :
II.1.2 : Chanel’s prices
II.1.2.1:Strengh of Chanel’s products’ prices.
II.1.2.2 :Weakness of Chanel’s products’ prices
II. 1.3 :Chanel’s distribution
II.1.3.1 : Strenghts of Chanel’s distribution
II.1.3.2 : Weakness of Chanel’s distribution
II.1.4 : Chanel’s communication
II.1.4.1 : Strenghts of Chanel’s communication
II.1.4.2 : Weaknesses of Chanel’s communication
II.2 : Opportunities and threats
II.2.1 : Opportunities in the luxury market
II.2.2 : threats in the luxury market
III-) Segmentation and discussion about the business performance Chanel Brand strategies

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January 2013

Markets Marketing and Strategy Report

Introduction :
We can designated Luxury by everything that exeeds all the barriers of necessities. It covers everything that is commonly considered as superfluous and unnecessary. In the usual sens luxury means splendor and refinement and a certain way of living. Luxury is acquired by very large expenses. Previously reserved for small circles of very rich people, luxury goods have gradually opened up to wider circles. The meeting of luxury and marketing has created an imperativ : oppen more luxury goods to middle classes and make the inaccessible accessible. For over a decade the luxury sector is experiencing a real change. We can see an economic boom in the luxury market.

Chanel is the most famous french brand in the luxury market and it is representative of changes in this market. It has in deed been diversifying into many areas and has been increasing its innovation policy. Therefore the brand hopes to keep a step ahead of its competitors who also have worldwide reputations such as LVMH or Hermes. But like other large luxury houses, Chanel is subject to many threats. This is why it is important for it to have a marketing strategy in line with its image in order to allow it to to differenciate itself in this highly competitive market.

So is for Chanel the time of disgrace or the time for Power ?

Chanel Brand strategies

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January 2013

Markets Marketing and Strategy Report

I-) Analysis of...

References: 2)Bott, D. Chanel : Collections and creations, 2007.Thames and Hudson
3)Mouncey,P &Wimmer,F.2007, MArkets research best practice : 30
4)Vincent, I. 2002 National post .com : what makes a Chanel girl available
at : http://www.nationalpost.com/search/story.html?f=/stories/
7)Kent,J. 2010.CNN.comCHina models luxury brands. Available at : http://
edition.cnn.com/2010/BUSINESS/10/21/china.models.luxury.brands/ind
8)Lobe, J. 2010 IPS news.com.Developing world economic rebound.
9)Han,J. 2009, The Korea times. Chanel’s day of disgrace or Power of
market
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