Marketing and Sales Plan of Tribal Saga

This document discusses the marketing and sales plan of Tribal Saga, a new product by Chanel company. It provides an overview of the product line, competitors, target consumers, and market segments.

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Program Details: Masters Of Business Administration 7023
Module Details: Sales And Marketing Management
Marketing and Sales Plan of Tribal Saga
A new product by Chanel company
Marking Tutor Details:
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Contents
Introduction...................................................................................................................................4
History.......................................................................................................................................4
Chanel Products...........................................................................................................................5
Haute Couture...........................................................................................................................5
High And Fine Jewelry..............................................................................................................5
Watches and Eyewear..............................................................................................................6
Fragrance..................................................................................................................................6
Make up and Skin Care............................................................................................................6
Competitors Overview..................................................................................................................6
New Product Marketing Strategy..................................................................................................7
Introduction...............................................................................................................................7
Marketing Mix of the Product....................................................................................................7
Product..................................................................................................................................8
Price......................................................................................................................................8
Place......................................................................................................................................8
Promotion..............................................................................................................................8
People...................................................................................................................................9
Process..................................................................................................................................9
Physical Evidence.................................................................................................................9
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SWOT Analysis of New Product...................................................................................................9
Strengths.................................................................................................................................10
Weaknesses............................................................................................................................10
Opportunities...........................................................................................................................11
Threats....................................................................................................................................11
Target Consumers......................................................................................................................11
Market Segments....................................................................................................................12
Product Positioning.....................................................................................................................13
Public Relations..........................................................................................................................13
Conclusion..................................................................................................................................13
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Introduction
In fashion industry, Chanel is one of the best brands. It had founded in early 1900’s by a singer
named Coco (Gabrielle) Chanel, whose passion is to provide comfortable and simple cloths for
women. However, this company in today’s world has become a legendary name in today’s
fashion industry in all aspects of life (Chanel, 2019).
Company Chanel deals in various types of product ranges. These products are available at so
many high-end consumer goods stores, departmental stores and the stores of Chanel. The
product line they deal in includes clothing, makeup, eyewear, perfumes, accessories and
skincare products and with the help of these products, the company holds a demandingly high
position in the fashion industry (Atwal & William, 2017).
This company is one of the best manufacturers of perfumes. Its most famous product is also a
perfume named Chanel No. 5. However, as already mentioned in above sentences it deals in
other brilliant products also. The information about Chanel and marketing strategies of its new
product has discussed in upcoming paragraphs.
History
In 1909, a French nightclub singer and fashion designer named Coco (Gabrielle) Chanel
founded a company named Chanel. She was a glass breaker as she has made hourglass
figure dresses instead of custom-made bodices and corsets. These dresses had accepted by
upper class women (Karbo, 2011). They still hold a demanding place in the fashion industry.
Among her famous customers queen of Belgium and Marilyn Monroe were one of them. Coco
created the famous “Little Black Dress” right after the World War I. she also made a style
statement by creating “Suit”. These both are still signature icons of the brand Chanel.
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Chanel Products
Chanel has a wide range of different types of fashion products. Recently it has released
collection of party cloths, which have displayed by Vogue. Apart from them, it also deals in
variety of makeup and skin care products. It is also a good dealer of high end and fine
jewelries. Chanel continuously focuses on developing new and innovative products for its
consumers. Chanel also deals in some accessories like eyewear, watches, bags, etc (Chanel,
2019).
Chanel has a very good brand image in the market and is very expensive. Not everyone can
afford it. This creates increased chances of selling of fake products, which can be duplicate of
Chanel products. These types of products deceived many people, when they want the real
one. Detailed explanations of these products are given below (Fang et al., 2012).
Haute Couture
Chanel offers a range of expensive and fashionable clothes that known as Haute Couture.
They launch the collection of these fashion cloths with the change of season or on special
occasions. Recently they have launched spring- summer collection 2019 and Fall- Winter
collection 2019 by Karl Lagerfeld.
High and Fine Jewelry
Chanel also offers its consumers a wide range of High and Fine Jewelry. In these categories,
they sell rings, necklaces, bracelets, etc. High Jewelry includes the jewelry, which has made
up of precious materials and is very expensive. In this category the brand recently launch three
types of jewelry types that are east meets west, Flora and Fauna. In the fine Jewelry category
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of Chanel brand, they sell the jewelry, which is expensive but not as high jewelry, however
beautiful.
Watches and Eyewear
A watch is not simply something that tells time; instead, it becomes a style statement for
everyone. Same goes with eyewear also, they are not just the necessity now they have
considered as the accessory. Chanel offers a wide variety of watches, which also includes
watches in High Jewelry. It also deals in attracting sunglasses and other type of eyewear.
Fragrance
Chanel is mainly famous for its fragrances. It had made most famous fragrance of all time
known as Chanel No 5. A Coco named women perfume had also created by this company in
1984. Today it deals in wide range of fragrances. Recently it launched the new 1957 fragrance.
Make up and Skin Care
Chanel also deals in wide range of makeup and skincare products. Their products are well
tested and safe to use. Their makeup category includes make up products for eye, face, nails,
lips and useful make up instruments. Skin care products include Exfoliates, Cleansers, Eye &
Lip Care, Serums, Sun Protection, and Moisturizers etc.
Competitors Overview
Chanel is a company, which offers luxurious and fashion cloths to high-end consumers of the
society, as it is a very expensive brand. Its products ranges from cloths, jewelry to fragrance,
make up and skin care products. In market from decades of hard work, Chanel is now able to
hold a very high place in the fashion and lifestyle market (McDonald & Woodburn, 2011).
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However, some companies give Chanel tough competition in holding the high place in the
market. The name of these companies are Gucci, Christian Dior, Burberry, Ralph Lauren,
Prada, Zara, Louis Vuitton, Versace, Hugo Boss, Hermes International, etc (Kim, 2013). With
little variations in their sales turnover and profit margins, they are also the top players of the
fashion market.
New Product Marketing Strategy
Introduction
Chanel Company in 2019- 20 is going to launch a high jewelry range, which is known as
“TRIBAL SAGA”. This range is inspired from the community of people that lives in remote and
isolated parts of the world and protecting their traditions. This jewelry range is going to include
rings, necklaces, bracelets, earrings, etc. Tribal Saga Jewelry Range by Chanel Company is a
tribute to tribal people (Chanel, 2019).
Marketing Mix of the Product
Marketing mix is the combination of 7 P’s named Product, Price, Place, Promotion, people,
process and Physical evidence. This combination of 7 P’s reflecting that the right product is
placed at the right price in the appropriate place. This has done with the help of proper
promotion strategies (Kotler, 1993). For this purpose people, process and physical evidence
have kept in mind. As it already told above that Chanel is going to launch a High jewelry
product line with the name of Tribal Saga, and it will have all kinds of jewelry with a touch of
tribal culture (Chattopadhyay et al., 2010). The marketing mix of this new product of Chanel is
as follows:
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Product
Chanel is a leading brand in fashion industry that deals in a variety of products and it deals in
fashion cloths, Jewelry, Fragrance, Make up and Skin care products. In 2019-2020, the
company is going to launch a jewelry line that will be a high-end jewelry. The line is with the
name “Tribal Saga”. It will have rings, necklaces, bracelets, etc (Chanel, 2019).
Price
This brand, Chanel is one of the giants of fashion industry so as its prices also. It is not easily
affordable to everyone. It mainly focuses on high-end consumers. Similarly, the price of the
new jewelry product range will also be very expensive, as it will going to focus the higher
classes of the society.
Place
Chanel is a brand in fashion industry, which offers products at a very high price. The prices of
the company products are high hence, the target consumers also posses higher status
economically and socially. This brand tries to focus on high-end consumers with its new Tribal
Saga jewelry range. It is going to be launched in upcoming months of 2019 in USA by the
brand.
Promotion
The Chanel has used so many promotional ways for promoting its brand and products. Its
promotional instruments are magazines, TV and radio advertisements, and using celebrity as
brand ambassadors. For this Tribal saga jewelry range, the Chanel is going to use its all-
promotional means. They have contacted Spanish star Penelope Cruz, their 2018 brand
ambassador for promoting this jewelry range (Alex, 2012).
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People
The target market or the people to serve for are the high-class people of the society. The
market has divided based on psychographic, geographical, behavioral and demographic
segments. With the launch of this Tribal Saga jewelry range, Chanel is trying to attract the
people with innovative and creative taste.
Process
Chanel’s marketing strategy is applauding as it is carrying out its business successful among
the cutthroat competition. Chanel focus is on producing best for its consumers that can afford
products, which are costly in nature. The production must be cost effective and efficient in
nature. With this point of view, Chanel has manufactured a range of jewelry, which has
inspired from tribal culture. The company’s main aim is to keep the price of the jewelry high but
maintaining supremacy and commitment of guaranty.
Physical Evidence
The Chanel Company has a very strong brand image in the market. With this strong brand
name in 2019 -2020, the brand is going to launch a new product believing of getting same
appreciation as before from public (Buil et al., 2013).
SWOT Analysis of New Product
It is an analysis that has undertaken by the companies to find out their internal strengths and
weaknesses. It also focuses on finding out threats and opportunities present for the company
externally (Eunha et al., 2016). The great scholar of management called Albert Humphrey
developed this concept.
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Strengths
 Chanel Company brand name is well established and common among everybody. Its
value is more than 7 billion and its ranking is among top fashion brands of the world.
The new Tribal Saga product range will be enjoying the brand image of the company.
 The company is known for its comfortable and elegant products. With this new product,
the company is going to establish a new style statement for other. This type of product
is available in the market but not in precious jewels.
Weaknesses
 Chanel is not a single best brand in the market. It is competing with some other
premium fashion brands. Due to this competition, the growth in the market is good but
to some extent. New product may possess this weakness of not being growing too
much in the market.
Opportunities
 In today’s world e-commerce, channel of business has opened a wide are for
organizations for doing business. With the help of this, many organizations are reaching
to extreme corners of the world. By keeping this in mind, the Chanel Company can use
this source for promoting and selling of this new product of the company.
 Chanel has a wide range of customers mainly in USA and France. However, with this
new product the company can have a chance of expanding its business to new
emerging markets.
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Threats
 As Chanel is a leading brand, it has many competitors and they all are busy in grabbing
the top most position in the market. With this product, Chanel may have a competitive
advantage over its competitors (Eunha et al., 2016).
Target Consumers
Every business should identify its target consumers before manufacturing and delivering the
product. Target consumers are the group of people, which a business identifies in order to
manufacture and deliver product to them. Like every other business Chanel also identified its
target consumers first then made product according to their needs, priced it, promoted it and
sold it to those customers (Fang et al., 2012). In order to identify the target consumers first
there is need to distribute the market into some segments on the basic of factors like
Geography, Psychology, Demographics, etc.
For the purpose of new product, the Tribal Saga the Chanel brand divided its whole market
into following segments and identified its target customers (Chanel, 2019). It has explained in
following lines.
Market Segments
 Geographical Segmentation: Chanel’s geographical stretch is mainly up to USA and
France but with this new jewelry range, it is going to focus to new market regions like
Africa, Egypt, and other countries also.
 Psychographic Segmentation: This type of segmentation focuses on person’s
psychology, personality, character, lifestyle, attitudes, etc. With this point of view Chanel
will be trying make target those people whose lifestyle is luxuries. They should posses
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good earring and spending quality. This is because the Tribal Saga Jewelry range will
be very expensive to afford (Oswald, 2012).
 Demographic Segmentation: Chanel has also divided its market based on demographic
features of the market like age, sex, religion, income, education level etc. For its new
product, Tribal saga jewelry range, the brand divided the market on the basic of female
customers of age of 18 to 45 approximately with high-income level and well educated.
Product Positioning
Positioning means actual launching of product in the market. It refers to placing the product in
the market where the target consumers can reach easily. Before placing the product in the
market, the company needs to identify the target market and target consumers for its product
(Kim & Ko, 2012).
Chanel Company already identified the target market that is USA, France, Africa, Egypt, and
some other parts of the world. Its target consumers are mainly females with excellent income
level (Beth, 2011). The consumers can afford the new range of Tribal saga jewelry for that the
expected income level is high.
Public Relations
The relationship between the company and the public, the government or with other company
is called public relations of the company. Chanel uses various multimedia platforms like
internet, social media, prints, etc to promote its company and make public relations. For
upcoming product named Tribal Saga, company is planning to post promotional
advertisements on these multimedia platforms. It also has a Chanel foundation page which
collects charity for the needy people (Bastien & Kapferer, 2013).
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Conclusion
The company Chanel very well knows that their customers expect perfection from them. They
are continuously working to live up to the expectations of their customers. They have proven
themselves so many times and yet again with this new product, they are going to satisfy their
customers once again.
Chanel is one of the best options if someone is looking for classic and high-end fashion
products. Chanel is going to launch a High jewelry product line with the name of Tribal Saga,
and it will have all kinds of jewelry with a touch of tribal culture. The consumers can afford the
new range of Tribal saga jewelry for that the expected income level is high (Chanel, 2019).
Chanel uses various multimedia platforms like internet, social media, prints, etc to promote its
company and products. It has more than 310 stores all over the world and continuously trying
to open new stores whenever and wherever required.
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