Chanel's Marketing Activities: A Group Presentation

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Group Presentation of
Marketing Activities of Chanel

Table of Contents
Task 1: Report
Introduction
A brief overview of the luxury clothing market
Macro and micro environment Analysis of the company
Segmentation, Targeting and Positioning of the company
Marketing mix elements of the company
Recommendation
Conclusion
References
Task 2: Group presentation
Poster

INTRODUCTION
• Promotion of a product by means of selling
and telling after doing a proper market
research is termed as marketing.
• This needs advertising, but above all, a
person first need to understand the basic
concept, related theories, principles and
strategies of Marketing.
• Customer’s needs and expectations should
be satisfied
• It is important to make some necessary
business steps so that the customers know
about any product, gets interested about
it, and finally buys it.

A Brief Overview of The Luxury Clothing
Market
• Every country of the world has its own rich cultural heritage, and a passion for
luxury clothing and fashion
• 1st world countries which are economically stable and have established and
accomplished base of customers, have a fan base about luxury clothing.
• In luxury clothing, it has been estimated that approximately 1.1% growth per
year can be seen. It is estimated that the clothing industry of Britain is greater
than the film or television industry of UK and pays more taxes than horse racing
or premier league.
• London is considered as the fashion capital of the country and regularly new
clothing companies are emerging worldwide,
• UK has already big luxury clothing brands such as, Alexander McQueen, Burberry,
Stella McCartney, Lulu Guinness etc.

Micro Environment Analysis Of Chanel
Strengths
•The company has its worldwide name and fame with
a strong brand value.
• It has high revenue and cash flow.
• The designers of the company produce out of the
box designs, with timeless and comfortable clothing
choices pulling customers.
• Their head designer is working exclusively for them
since 1983 producing creative ideas
Weaknesses
•Being a world famous brand, it competes with other
world famous brands like Louis Vuitton, Gucci, Dior,
Versace, Prada, Hermès and H&M. Therefore, they
are also taking its market share.
• As per the brand value, Chanel is ranking at 80th in
the world.
•On being exclusive, Chanel has lost its position to
Hermès
Opportunities
•Chanel has online presence but no online shopping
system. E- commerce can generate more revenue.
•Expansion in emerging and potential markets, such
as UK could be profitable for the company
•New acquisitions could be done to spread wings for
the company
•New products or services could be launched
Threats
•Huge competition from other luxury fashion houses
is the biggest threat.
•Copying of design by local manufactures is a big
dispute.
•Other brands are also copying the styles and selling
the product in a cheaper version, which is taking
customers away and reducing the profit.
SWOT Analysis

Macro Environment Analysis Of Chanel
PESTLE Analysis
POLITICAL  UK has recently levied its tax amount, which will both affect the manufacturers as well as
customers.
 The interest rate of UK is the lowest of all time recently. This may help companies, that are
interested to open their business in UK
 Operating in “EURO ZONE” may help the company to maintain a single transaction mode for its
operation
 The political scenario of UK is relatively stable because of parliamentary democracy , ensuring a
low risk potential for the interested companies
ECONOMIC  The last trends of UK economy are not good following the global financial crisis in 2007. But the
country is expecting a rise in its future days, which will help the consumers to buy any luxury
product.
 As per the latest report, the disposable income of a person is increasing in UK. Therefore, the
choice for luxury brand clothing is increasing in them.
SOCIAL  The fashion industry of UK is considered as a trend setter in international clothing. Therefore
the social acceptance of new fashion is high in UK.
 The ageing population of UK is more inclined towards physical store shopping. New age
generation are brand conscious and therefore and fond of brand clothing.
 Post World War II, the UK has become a culturally diverse country, which can help the fashion
brand to work on different trend setting practice.

Macro Environment Analysis Of Chanel
TECHNICAL  Being a 1st world country, ever update in the world of technology get it sway in UK. Therefore
applying the technical device for any updated implementation ha sit sown scope and positive effect
in the UK market.
 With the increased use of internet and broad band, exponential growth can be seen in the clothing
market.
 Use of online shopping has generated interest among the busy generation, who can now buy their
needs from the company directly.
 Use of social media for its business feedback and awareness about a new product has been
beneficial for any company to make effective public relations.
LEGAL  Being the member of European Union, the interested companies have to follow both the UK law and
EU law.
 UK has minimum wedge legislation, which says that a minimum of £6.19 per hour should be
provided for a worker of above 21 years.
 Law of equality gives same opportunity to male and female at workplace.
 The taxation rule is strict in UK, so tax should be paid within time so that no legal issues have to be
faced by the company
ENVIRONMENTAL  To retain sustainable resources for the future and to protect the nature, the companies of UK have
to produce less carbon emitting products.
 Low CFC generation, purification of the byproducts before releasing them I the nature are the
common practice sin UK.
 Customers are more aware than ever, so they ask for nature friendly products and check for the
environment supporting products for their use.

Segmentation, Targeting and Positioning of
Chanel
•The market can be broadly categorized into four segments, namely, Geographic,
Demographic, Behavioral and Psychographic.
•Chanel mainly focus on demographic and psychographic segmentation. For geographic
segmentation, the company focuses on 1st world countries that are rich and can easily
buy its products. They also uses their customers database to understand their loyal
customers and their choices to help them in their next purchase.
•The company targets women buyers of young age. Being a big luxury clothing brand,
Chanel knows that celebrities, business women, intellectual personalities are the buyers
for their product. The age of this group varies mostly between 25-45 years of age.
•As Chanel has a strong image in customers mind, this is taken as a competitive
advantage. These make the perception of the importance of the brand, how the brand
is distinctive and superior from others, is the price is affordable or worth buying.

Marketing Mix Elements of Chanel
Product: High class fashion house Chanel ensures it’s most
amazing and comforting clothing quality that is well cherished
by its customers.
Price: Chanel serves elite class of people and therefore uses rare
and exquisite products only to make a world class creation. The
company always kept their pricing justified.
Place: These shops are found in high end shopping stations, five-
star luxury hotels, airports.
Promotion: Chanel puts endorsement in high class fashion
magazines such as Vogue, Marie Claire, Elle Saab, Harper’s
Bazaar, etc. In any film festivals, when celebrities walk in their
dresses, makes the endorsement for them.
People: Chanel has different departments that deals with sales,
marketing, customer service and others who deal with suppliers
and help to make the ever work count for the company.
Process: Chanel always make use of good logistic system and
refill their inventory with new fashion, well advanced in time.
Physical Evidence: Chanel has its own logo, a distinct color
packaging which are easily distinguishable from others

Recommendation
•Chanel should do a market
research well in advance to
understand the market trend.
•The company should keep their
quality high and open their shops
and boutiques in posh areas of UK.
• The marketing team has to
analyze the micro and macro
environment of the UK.
•The company should follow the
marketing mix strategy to gain a big
new fan base for the company

Conclusion
•Chanel is a big luxury clothing brand and well
known in the world elite circle.
•Expanding its business in the UK market, will
be a good move keeping in mind the strengths
and weaknesses of the company, while working
with the opportunities and removing the
possible threats.
•The clothing market of UK is a promising one
and by following the marketing mix strategies,
the company can make a difference in the
fashion class of UK as well as make their own
profit.
•The company has so far applied its modern
idea of fashion, which helped them to make a
difference, and in future also, the company
should keep this as their focus.

References
•Agarwal, J. and Wu, T. eds., 2018. Emerging Issues in Global
Marketing: A Shifting Paradigm. Springer.
•Dewi, I.A.P.C. and Suryawardani, I.G.A.O., 2019. Relationship
between Marketing Mix and Cunsomers’ Loyalty of Hatten Wines
Products. E-Journal of Tourism, pp.139-146.
•Ryding, D., Henninger, C.E. and Cano, M.B. eds., 2018. Vintage
Luxury Fashion: Exploring the Rise of the Secondhand Clothing
Trade. Springer.
•Sassen, S., 2018. Cities in a world economy. Sage Publications.
•Taplin, I.M. and Winterton, J. eds., 2020. Rethinking global
production. Routledge.