Digital and Social Media Marketing Strategy Plan for Chanel Brand

This report presents a comprehensive digital and social media marketing strategy for the Chanel brand, a luxury brand, structured around the SOSTAC (Situation, Objectives, Strategy, Tactics, Action, Control) model. The report begins with an overview of the Chanel brand, its history, and target audience, followed by an explanation of the SOSTAC framework. A detailed situational analysis is conducted using SWOT, competitor analysis, and PEST analysis to understand the brand's current market position. The report then defines specific, measurable, achievable, relevant, and time-bound (SMART) objectives aligned with the brand's goals, including sell, serve, speak, save, and sizzle objectives. The strategy section outlines segmentation, targeting, positioning, and integration tactics to achieve these objectives. The report also details specific marketing tactics, actions, and control mechanisms to ensure the plan's success, offering recommendations and conclusions for effective implementation. This assignment, contributed to Desklib, provides valuable insights into digital marketing strategies for luxury brands.

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Digital and Social Media Marketing Strategy
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Digital and Social Media marketing Strategy Plans for Chanel (Luxury Brand)
The mastery of digital marketing strategies at such a time when the internet, social media
applications, mobile computing, and electronic commerce are rampant requires a mix of
marketing skills. This is because the field is still developing and remains highly unpredictable.
The art of digital marketing provides tools that are used by organizations and sales agents to
facilitate more targeted brand marketing (Koskinen, 2016). Using these technologies and/or
social media applications, sellers and marketing agencies seamless communicate with their
potential customers and share valuable information about their products, irrespective of time and
geographical locations. The objective of this research paper is to strategize and develop digital
and social media marketing road map for the Channel brand- a luxury brand, with close reference
to PR Smith’s SOSTAC marketing model. The objective is to make a sound digital marketing
strategy that will help the organization reach many customers, increase their customer base,
satisfaction rate and consequently customer retention.
It starts by giving a description of the Chanel brand and then the SOSTAC model. In the
third section of the paper is a SOSTAC-based plan model that contains situational analysis,
objectives, strategy tactics, actions, and control. Finally, a summary of the plan,
recommendations and conclusions are then made.
The Channel Brand
The Chanel brand was began in 1909 and was established by a French merchant,
Gabrielle Bonheur Chanel. It is now a successful company that can be recognized through its
restrained considerations that it pays towards multiple consumer sections. It has outstanding
brand audio-visual brand DNA features as well as promotion in luxury journals. The brand

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majorly focuses on high level earning women aged between 23 and 80 years (Nabi, 2018). It uses
digital cameras, online campaigns and advertisements as strategies aimed at reaching the
younger generation. Chanel’s brand image is created in the minds of its potential and existing
customers by its central products and quality of evaluation strategies, as well as quality and
aesthetics.
Channel was born in very poor conditions and brought up in extremely humble
backgrounds. Chanel altered her name commencing Gabrielle to Coco possibly in respect of the
mantra she achieved in shows. In many instances, she used to elevate her wealth towards her
industry and her conditions enforced her to correctly make the division and the attitude of the
brand from abrasion. Doubtlessly, Chanel was the first personality designer and the first
individual to go her own way into an alive personification of personal attitudes. This move
helped her to highpoint her effort in a great way. Her motivation was largely drawn from nature,
aptitude and favorites that made ‘eternal appearances' as well as fascinating, audacious and an
‘ambitious' brand. She remains one of the few personalities who unstated how much, and what
attracted them to work for others. The greater contradiction in her life lies in the fact that
although her efforts defined her character, she avoided being luxurious- while designing and
developing luxurious products.
Essentials of Digital and Social Media Marketing
The 21st century is described by widespread penetration, acceptance, and usage of social
media applications. The vast technologies have revolutionized how people communicate and
seek information as well as how they express themselves. It connects people and professionals
who share ideas, opinions, hobbies and professional knowledge. Simply stated, the digital social
media applications enable seamless communications and faster transmission of information.

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The technology is great opportunities that can be harnessed for commercial purposes.
Both sole entrepreneurs, Small to Medium enterprises, multinational corporations, Business to
Business and to Customer e-commerce applications or enterprises, have golden opportunities to
reach their clients using different social media applications and platforms. That said, digital
marketing and social media strategies should be made a fundamental marketing strategy
component. Social media platforms enable entrepreneurs to reach more customers, communicate
and actively keep them engaged. Strong and outstanding visibility in social media platforms
attracts more customers and leads to organizational revenue growth.
Marketing should be carefully planned irrespective of the approach or model used. Bad
social media marketing can adversely affect the growth of an organization besides threatening to
shake its customer base. Care must be taken because social media is not necessarily the shortcut
to massive profits or increased clientele. Organizations engaging in digital and social media
marketing first start by establishing effective digital communication plans before even selecting
the tools to use for a coherent digital marketing strategy. These plans can be created by walking
through a five-step journey- identify the end goals and objectives for the plan, determine and
identify target customers and their needs, customs and values, study and understand how the
message or social media content is to be delivered/communicated to the clients in a personalized
way, and select effective channels to analyze the results (Cameron-Kitchen, 2015).
Marketing strategies are rapidly and unpredictably changing thanks to the advancements
in technology. Digitization continues to affect the way we communicate and the channels we use.
Organizations and individuals alike are moving from traditional communication and advertising
media to newer ones. Organization and marketing agencies, therefore, try to first understand their
target audience as well as the appropriate social media content to feed them with. Digital

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marketing communication is, therefore, a mixture of three elements- type of messages, categories
of media and/or platforms and the communication tools used in the marketing. The figure below
illustrates the digital marketing strategy elements-mix.
Figure 1: digital marketing communications mix (Fill, 2013)
As indicated in the above diagram, technology has ushered organizations into a new age
of creating content for digital marketing purposes mixe with content, messages and new media
playing the biggest role. Messages shared over different media could be in the form of texts,
graphics, print media, videos, audios or photos. All these could be described as either being
informational, emotional, user-generated, or branded content. With digital marketing, consumers
need to be actively engaged and motivated to create their own content that which they too can
share with their friend and peers. Real-time marketing is all about actively engaging clients while
reaching out for more by using digital social technology.
Digital Marketing Plan: SOSTAC-Base Marketing Plan
SOSTAC refers to a planning model that was originally created in the 1990s and has
since then been widely used as a marketing and business planning tool. The model present
business planning using six key phases- situational analysis, objectives, strategy, tactics, actions,

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and control. This tool is used by many professionals from across the world to strategically plan-
whether in long term or short term basis.
Figure 2: The SOSTAC model
Situation Analysis
Situational analysis is always the first step that is used to create an overall picture of an
organization and the brand in question. Situational analysis answers the question regarding the
organization, its type, line of specialization. It helps the organization to really understand the
position of their brand and service qualities in relation to current and emerging market trends.
Situational analysis can be done using three tools- Strengths, Weaknesses, Opportunities, and
Threats (SWOT) analysis, Key Performance Indicators (KPI), PEST analysis as well as
competitor analysis.

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SWOT analysis
This framework helps Chanel to analyze and understand internal and external factors that
could limit its operations. Such a framework is a great tool that is used when making critical
organizational decisions since it uncovers the strengths, weaknesses, opportunities as well as
threats within and outside an organization.
Strengths
i. Chanel is a well-established brand that is known by millions of people from across the
world. As of March 2019, its brand value was estimated to be about $7.2 billion and
ranked 80th on the list of the world’s most valuable brand. The brand enjoys huge sales
that are estimated to be $5.2 billion monthly.
ii. Style and quality brand- Chanel is famously known for its high quality, comfortable
functional and fashionable clothes that have a perfect style. A major part of the brand's
collection is based on classic and timeless designs.
iii. Employees- the company has a strong diversified workforce pulled from about 13-00
employees. The head designer is a highly experienced personnel whose experience dates
back in 1983.
iv. Revenue- the organization’s quality brand and its value enabled it to poster very high
revenues that it second- after H&M, meaning that the company triumphed over some of
its major competitors like Hermes and Louis Vuitton.
v. The company also enjoys excellent branding and advertising.

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Weaknesses
i. There is still stiff competition from other well-established brands such as H&M, Hermes
and Louis Vuitton.
ii. Rand switching is still high despite the fact there Chanel’s brand visibility is high.
iii. The brand’s price is too high in the local markets
Opportunities
i. Electronic commerce and Electronic marketing techniques are gaining popularity and can
be used Chanel as well.
ii. There are emerging markets, continued expansions and various acquisitions taking place
within Chanel.
iii. Technology continue to support and hasten innovations and takeovers.
iv. Chan can make ties and treaties with leading hotel chains and fashion houses to boost the
brand.
Threats
i. Thre are many competitors in the specializing in the same line of industry and provide
similar types of products and clothes and accessories that can greatly reduce Chanel's
market share
ii. Production is also affected by economic slowdown or downturn.
iii. Counterfeit products and price wars a big blow to the company.
iv. There are other cheaper lower brands in the markets that are trying to copy Chan’s
timeless styles while selling them at highly affordable rates.

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Competitors
i. Christian Dior
ii. Prada
iii. H&M
iv. Burberry
v. Zara
vi. Ralph Lauren, etc.
Objectives
Chanel's objectives and marketing strategy should be guided by the SMART objective
rule meaning that they ought to be specific, measurable, achievable, realistic, timed and targeted.
Chaffey (2013) puts SOSTAC objectives into five main categories- speak, sell, save, sizzle goals
and serve. This digital marketing plan for the Chanel brand is bound to be used for both short
and long-term purposes and may be reviewed to meet the ever dynamic market demands.
Sell goals
These goals describe how social media and digital marketing undertakings are expected
to influence purchasing intention by generating more leads. The speak goals are all about details
such as the balance of the ‘sell, inform and entertain’ communication messages aspects, brand
messages, and the updates about new products and existing offers. Serve goals help determine
the elements of delivering customer-service and achieving customer satisfaction. The save goals,
on the other hand, focuses on the cost-efficiency of the marketing strategy. However, this
remains less significant, yet still a considerable part of the entire planning and strategy. Finally,

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the sizzle goals define the added value to customers given through social media platforms. The
table below summarizes the objectives of the Chanel brand.
Category Goals
Sell Increase social media engagement
Achieve facebook total reach to 500,000
Increase Instagram followers to 800,000
Increase facebook page likes to 1000
Increase twitter followers to about 50000
Serve Actively engage clients by maintaining
interaction and replying to their comments
and queries proactively.
Decrease response time to 10 minutes
Like pictures on Instagram, and Twitter where
Chanel is mentioned
Speak Increase engagement in each social media
application with 100%
At least get 15 comments on each facebook
post
Increase clients’ post engagement activities
from the average of 20% to 300%
Save Reach more clients on Facebook, Instagram,
and Twitter by using promoted
advertisements and posts.

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Sizzle Define the benefits that clients will get by
following Chanel in social media platforms
and by consuming its products
Adding storytelling features to product
descriptions in the online platforms.
Strategy
The SOSTAC tool uses a STOP & SIT (segmentation, targeting, objectives, positioning,
sequence, integration and tactical tools) approach so as to determine and define comprehensively
the strategic components of the entire marketing plan.
Segmentation and target markets
Companies segments markets into manageable segments based on customer needs.
Chanel must start by understanding its consumers' behavior for specified planning since the key
to successful digital marketing lies in the identification of and the satisfaction of all market
segments accordingly. Chanel will segment its markets in order to identify each segment’s needs
and be in a position to profile each the different customer needs in those markets. Demographic,
psychographic and behavioral differences will play a critical role in this analysis. After
successful segmentation, the company will then chose a market that has high prospects. As it
remains, Chanel majors in women dressing and its customer base comprises of women aged
between 24 and 80. Additional marketing could be targeted at celebrities and model from across
the world.

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Objectives
The primary objective of the digital marketing strategy based on new and influential
social media applications are to increase the customer base by use of social media applications
and actively engaging them.
Positioning
Kotler and Keller (2012) defined positioning as the “act of designing a company’s
offering and image to occupy a distinctive place in the minds of the target market.” Chanel will
effectively position itself by exploiting all advances that its competitors have not exploited or
ventured in. the content to be published in all social media platforms will have the label “feel the
difference” as a way of emphasizing on the uniqueness of the products. Additionally, the
company will have promotional offers at different times of the year especially during holidays
and celebrations. Targeted marketing will be achieved by having promotional offers for different
clients from across the world at different times.
Sequence
This is defined as the main strategic plan's focus. It is founded on building awareness and
trying to increase customer base using social media driven sales promotions. The sequence of the
Chanel is to proactively increase awareness of its brand and have improved recognition by
increasing pages likes, posting to reach out to more and actively engaging potential clients over
social media. Successful sequencing will involve building brand credibility.