Marketing Fundamentals: Chanel's Strategies and Analysis

This report provides a comprehensive analysis of Chanel's marketing strategies, delving into its marketing mix, including product, price, place, and promotion. It examines Chanel's communication strategies, highlighting its use of social media, advertising, and public relations to promote the brand. The report discusses promotional strategies such as fashion shows, celebrity endorsements, and magazine advertisements, and analyzes the importance of customer feedback in refining marketing approaches. It explores how Chanel builds brand awareness and the effectiveness of its communication methods. Furthermore, the report outlines the steps Chanel takes in its marketing process, from market research to brand development, and concludes with an assessment of Chanel's overall marketing effectiveness. The report is a valuable resource for understanding luxury brand marketing and is available on Desklib.

Marketing fundamentals

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing mix of Chanel ...........................................................................................................3
Communication strategies of Chanel to promote the brand ........................................................4
Promotional strategies-................................................................................................................4
Feedbacks from customers-.........................................................................................................5
Effectiveness of communication in terms of brand awareness-...................................................6
Steps of marketing of Chanel ....................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing refers the plans and strategies which companies uses for the promotion of their brand
and products. Marketing fundamental includes 4 p 's – prise, place, promotion and product.
Marketing helps a company to reach out at its intended customers. Chanel is a UK based
company, established in 1909 by Coco Chanel, which deals in a women's high fashion clothes
along with jewellery, accessories, and perfumes. This report describes the marketing mix for
Chanel, as well as it defines the promotion techniques, stages of marketing customer relation and
communication methods of the company.
MAIN BODY
Marketing mix of Chanel
product
The product strategy of Chanel is that it has targeted women and wealthy customers. It provides,
watches, elegant jewellery, fragrance, make up, skin care and sunglasses.
Chanel focuses on the colours of their clothes, they give more weight age to nude, black, and
beige colour so that it can easily attract the women. Products of Chanel is known for its valuable
raw material and expensive prices. But now they have diverted to men also they have exclusively
launched day and night wear for men. (Ndofirepi, Farinloye, and Mogaji 2020).
Price
The pricing policy of Chanel is that they don't compromise with the quality of the product, as it
is very rare and the final product gives high class quality and elegance to the customer for that
they take premium prices. The major reason behind it that they hire skilled professionals who
are specialist in textiles and designs to design their products. Premium price policy is used to
gain high profit. The target customers are also very rich and they ready to pay for it.
Place
Company has come up with a flawless plan that It has opened most of the stores in posh area and
nearby the airports so that high class customer can easily visit their store. Chanel has set up their
store in the hall of five star hotels so that it can attract the customers. They have opened their
stores in big cities like – Boston, Amsterdam, Paris, Sydney, Bangkok, Dubai, London, even
products are also available on their website (HR, and Aithal, 2020).
Promotion

As it is a well known brand so for promotions they generally give advertisements in fashion
magazines like – vogue, Marie Claire etc. They hire super models and very famous actors to do
promotion of their brand. For getting publicity they offer their products like- clothes and hand
bags to wear to the big and famous personalities on red carpet and award shows film festivals.
Communication strategies of Chanel to promote the brand
Luxury brand Chanel is master in accepting the new trend of the market. For promoting the
product they follow 360 degree communication strategies. They do tones of advertisements in
high class magazines and by advertisement campaigns. The company wants to place their
product directly to the heart of customers for that it hires cool looking models for advertisements
along with it company uses their social media platform like- Instagram, twitter, LinkedIn and
Facebook for communication as it has a million of followers on its social media handle and
blogs. Except this company uses emails, newspaper for promotions. As social media is a key
marketing tool for business, because nowadays every individual have their social media account
so it becomes easy for the company to touch the customer (Finotto and Mauracher, 2020).
Website of the company also provide relevant details of each product if the customer is
unavailable to visit the branch. Companies can use blogs and video contents to promote their
products. Earlier companies had to rely on sales person to for selling and promotion but now in
the digital age people prefer to do their own research via company's profile and by blogs.
Sometimes people get some discount vouchers and offer if they purchase goods and products
from company's site, Along with it provides feedback form to customers if they visit any store of
Chanel. E-mail marketing plays an effective role in promotion if any customer purchase any
product from Chanel it provides them a rating link and form about the company and its product
just to know what customer feels for their products.
Promotional strategies-
Chanel is a luxury brand which provide its products to higher class of the society
therefore company uses mixed promotional strategies by which effectiveness of organizational
marketing can be increased through this company manages to get high sales. Chanel mainly
promote itself through fashion shows and merchandise demonstrations through which it is able
develop a direct high level of positive image in front of its customers (Reyes and et.al, 2018).
With that company also advertises itself through the means of social media and through company
websites by which high level of brand awareness can be achieved through which company

experiences high sales. Chanel also advertise itself through magazines like “Marie Claire” which
is concentrated in such a way that it is able to attract its targetted customers by which it is able to
attract influential buyers as well. The main driving force behind Chanel's product lines are
exclusivity and because of which its advertisements mostly initiate with individual's internal
views by which influential is achieves through uniqueness and rarity. In order to increase the
effectiveness Chanel uses celebrated brand ambassadors as promotional strategies to encapsulate
its high brand image (Kusuma, 2018). Chanel develops effective relationship with its customers
through which company is able to maintain customer engagement with the company. With that
company also uses this relationship to showcase its new product to customer by which customer
engagement is also increased because customers are aware of the type of quality which is
achieved through the company because of which customer engagement is also increased, Thus
effective relationship with customers is also a part of promotion strategy for the organization by
which it can ensure that that developed product is able to achieve high sales and company is able
to achieve high profitability.
Feedbacks from customers-
Organizations like Chanel develop their marketing strategy and business working
strategies in such a way that it is able achieve high sales and for achieving this company has to
make sure that it is able to achieve high sales and for which it has to make sure that it is able to
identify the customer requirements (Naeem, 2019). Through which company can make sure that
it is able to achieve high level of goal achieving capabilities and also with that company also has
to make sure that it is able to develop a organizational structure in such a way that company's
weak areas are being fulfilled because if company is not able to work as per customer
requirements then its customer count will be decreased. Therefore, Chanel has to take feedbacks
from its customer regarding their experience with the company's products and services by which
Chanel will be able to identify the weak areas which are making a negative impact on customer
engagement and also company can use this feedbacks in develop its future products by which
customer engagement can be increased. This is important because if company is not able to
provide products on the basis of customer requirements then chances for having decrement in
sales are high because of which company has to develop product in such a way that customer
requirements are being fulfilled (Gorbunova, 2017). Through these feedbacks company can
maintain customer's engagement with the company by which chances of brand switching can be

reduced. Therefore, company has to take feedbacks from customers by which it can develop
products on the basis of customer requirements and at the same time has to make sure that
product development is done according to the current market trends by which it can attract new
and trendy crowd for high sales.
Effectiveness of communication in terms of brand awareness-
Chanel has to make sure that it is able to develop effective communication with its
customers because through this company will be able to achieve high brand awareness and will
increase the chances of getting high sales. Due to which company has to establish different
communication mediums which will act as customer touch point and due to which customers are
empowered to showcase the issues which they are having with the organization and with this
customer touch points customers can also provide suggestions which they are expecting in the
new developed product (Bilgin, 2018). Through this effective communication company can
increase customer's engagement in organizational activities because through this company is able
to develop a sense in the mind of customers that their feedbacks and suggestions are used by
organization in develop new product by which company can make sure that the developed
product is able to surpass customer expectation level and achieve augmented level. Augmented
level is the level of customer satisfaction which is achieved when the product is able to surpass
customer expectation and due to which high level of customer satisfaction is achieved because
customers are assured that they are having a product which is providing value of money to them.
This motivates existing customers to increase their engagement with the organizational activities,
therefore Chanel has to make sure that maintain relation with existing customers, analyse market
competition working capabilities and develop product as per current market trend in such a way
that the develop product is new and rare (Ahmed, Vveinhardt and Streimikiene, 2017). By this
company can make sure that it is able to achieve its organizational goals and also is able to
develop products in such a way that customers can be attracted towards the organization for
having high sales and increasing the chances of goal achievement.
Steps of marketing of Chanel
Market research
conducting a market research is a valuable part of marketing strategy. Through marketing
research Chanel collect all the insights about the customer like- what they think about the
product, their buying patter, what kind of product they want, do they like the quality of product

or not? By doing market research company keep an eye on their customers (Smaliukiene and
Monni 2019).
Selection of target market
selection of market depends on various factors like – geography, demographics and as per the
reach of the customer. Chanel selects such place where it can target many customers of different
age, gender, income level etc. so that product can reach to a lot of people. Selection of market
also depends on the lifestyle of the customer therefore Chanel operates its store to posh localities.
Recognize unique selling proposition
Unique selling proposition refer to a quality by which your customer buy products from your
company not from the competitors. The USP of Chanel is that they give more preference to
quality over quantity that makes them different from others. The products are highly expensive
but the final product gives elegant and stylish look to customer. Chanel give more weight age to
USP, by unique selling proposition they get to know that what customer like the most about their
product? What bounds the customer to buy from Chanel instead of other competitors? What are
the benefits which customer get after purchasing their products?
Development of business brand
Chanel is already a luxurious fashion brand so it is important for the company to maintain it and
try to reach to the untouched places to develop their brand. For that they are opening their stores
in developing countries.
Selection of marketing route
For a better marketing route Chanel has chosen website, blogging, brochure, social media,
mouth publicity, flyers etc. for the promotion of their product. They take feedback from the
customer when they come to their stores for shopping so that they can make changes in their
marketing route. Mostly their do marketing by exhibitions.
setting up goal and budgets
marketing helps to describe what actually company wants to achieve by marketing activities. By
selecting budgets and setting goal Chanel allocates the budget for making valuable goods and
provides the best quality product which the company is known for. All this happens by planning
and setting goals.
Monitor and review

it is essential to monitor and review the marketing activities to keep an eye whether the company
is attaining the desired result like increased profit and sales. Chanel review the marketing
strategy on very quarter to ensure that the marketing strategies are going as per the plan or not.
How many efforts they put more to attain the targeted profit. All necessary things Chanel can get
by review and monitoring.
CONCLUSION
From the analysis in this report it can be concluded that it is important for Chanel that it is able to
increase its customer count by which it can increase the chances of goal achievement because
high sales will provide company high brand awareness and efficient profit margin. Thus in order
to increase its organizational sales company has to maintain efficient relationship with customers
by which it can concentrate its working in such a way that new customer can be attracted
towards the company by which high sales can be achieved therefore company has to improve its
communication bridge with the customers by which customer loyalty can be increased and
chanced of brand switching can be reduced.

REFERENCES
Books and journals
Ahmed,et.al., 2017. Interactive digital media and impact of customer attitude and technology on
brand awareness: evidence from the South Asian countries. Journal of Business
Economics and Management. 18(6). pp.1115-1134.
Bilgin, Y., 2018. The effect of social media marketing activities on brand awareness, brand
image and brand loyalty. Business & Management Studies: An International
Journal. 6(1). pp.128-148.
Finotto, V. and Mauracher, C., 2020. Digital marketing strategies in the Italian wine
sector. International Journal of Globalisation and Small Business, 11(4). pp.373-390.
Gorbunova, A., 2017. Sensory Marketing in Creating a Clothing Brand: How can a clothing
brand attract customers?.
HR, G. and Aithal, P.S., 2020. Integrated Marketing Mix Framework for Baby Care Retailing in
India. International Journal of Applied Engineering and Management Letters
(IJAEML), 4(1), pp.191-218.
Innanmaa, K., 2020. A strategic marketing plan.
Kusuma, K., 2018. Activities of the Cyber Public Relations of O Chanel TV in Promoting their
Company on the Instagram Social Media. American Journal of Humanities and Social
Sciences Research (AJHSSR. Volume-02. Issue-09. pp-50-56 2018.
Naeem, M., 2019. Role of social networking platforms as tool for enhancing the service quality
and purchase intention of customers in Islamic country. Journal of Islamic Marketing.
Ndofirepi, E., Farinloye, T. and Mogaji, E., 2020. Marketing mix in a heterogenous higher
education market: A case of Africa.
Reyes Junco and et.al, 2018. Estrategias de marketing digital para el posicionamiento de la marca
Chanel en México.
Smaliukiene, R. and Monni, S., 2019. A step-by-step approach to social marketing in energy
transition.

2

1