Segmenting and Targeting Markets

Chanel's perfumes are targeted to different markets and they are all particular and irreplaceable.  Although this brand's perfume is mostly known for the collections. They have different line to offer to various markets. 

These lines are targeted to different markets.  Chanel's product mix have made them successful  because they are specially targeted to women who can afford it as a luxury brand.  The market segments for Chanel perfume are mostly the women who during 20 to 45 years old, and have higher income, they are young, rich, have received higher education, belongs to the highly educated high-quality community, and in the context of professional classes, by the majority of white-collar class, they attach importance to brand and brand culture.  Chanel's geographic segmentation is limited of the price.  Their store only located in the developed cities like New York, Paris, Hong Kong, Shanghai.  And some one the products don't sell in the online store.  Even that, the women still fascinated this brand and its products which no matter can they afford.

Developing and Managing Products

Mention Chanel no. 5, people is associated with the general, mysterious and sexy which keeping around for almost a century.  Continuous never fading aroma, constant attitude, become a century classic.  Market competition is brutal, any brand or product to in the fierce market even do better must have their own strong advantage.  The production process, from the natural scent of the flower is the essential "advanced selling point" in the eyes of outer perfume maker.  When a product has a good core competition points, you will need to use quality to support it, to maintain it, and will only be for a long time to promote product sales. Chanel capable of that, of course. CHANEL no.5 perfume bottle has a shape like gem cutting form of square bottle cap, transparent crystal shape, lines and agile, "CHANEL" and "N ° 5" black font rendering on white background, CHANEL no.5 perfume bottles of modern aesthetic feeling that it was elected in 1959 for outstanding contemporary art among the exhibits of the Metropolitan Museum in New York.  Ads for Chanel no. 5, has been pegged to the sexy beauty.  In 1930, Chanel invited the famous photographer Horst picture for 5 bottle;  In 1953, Chanel no. 5 become the first product to use television advertising; The new face of 1986 was young Carole Bo uquet.  Carole is the model as the French girl, and she filming ads for  Chanel until today.  Carole represents Chanel No. 5's luxury, beautiful, and the temptation, feelings, youth, modern...  In 2004, Chanel company signed Hollywood actress Nicole Kidman as the spokesperson of Chanel No.5.  Chanel company formulate a huge publicity plan, multi-level three-dimensional ads.  Including TV episodes, print ads, outdoor advertising and Internet advertising, etc.  The propaganda plan marked the first global online advertising for Chanel since 1986.  In 2007, Chanel to keep pace with the times, signed the famous actress Keira Knightley of "Pirates o f Caribbean".

Product Concepts

As a luxury brand, Chanel's perfume is a specialty product.  Chanel has their own specific way of marketing according to strategy, advertising, retailing, and products.  There are variety product line of Chanel perfume for different target consumer, most of consumers buy the perfume for the branding.    Chanel perfumer list the ingredients on the packing of Chanel products.    All Chanel makeup and skincare products are tested by dermatologists and ophthalmologists to ensure that they're hypoallergenic, and safe for people who have sensitive skin or wear contacts.  Women buy the Chanel because it's creditable.

Marketing Research

Marketing research is important for every business,  it can enable the company to identify target consumer, find out what they think about company's ideas, products or brand and gather insights to help company target the right market.

The marketing research problem is information oriented.  It involves determining what information is needed and how that information can be obtained efficiently and effectively.  Secondary data previously collected for any purpose other than the on at hand.  After collecting the data, the marketing researcher proceeds to the next step in the research process: data analysis.  The purpose of this analysis is to interpret and draw conclusions from the mass of collected data.  After data analysis has been completed,the researcher must prepare the report and communicate the conclusions and recommendations to management.  This id a key step in the process.  The final step in the marketing research process id to follow up.  The researcher should determine why management did or did not carry out the recommendations in the report.

Advertising, Public Relations and Sales Promotion

Chanel advertising at magazines, television commercials billboards which can see all around the world.  Chanel spends millions of dollars in advertising every year.  They invite stars to their fashion show and wear their collections.  The advertisement usually advertised in higher consumption place which only target toward people who can afford their product.  In order to keep the value of products, Chanel never do the sales.  The only promotion is some samples from the store.  

Service and Nonprofit Organization

A nonprofit organization is an organization that uses surplus revenues to archive its goals rather year distributing them as profit.

As a big company, Chanel make billions dollar each year.  However, they also providing million dollars in philanthropic work. Coco Chanel once said, “In order to be irreplaceable, one must always be different.” Indeed, for better than any show produced during Fashion Week, the Chanel Pour le Temps Charity Fashion Show is one of the most anticipated events of the year.

The Global Vision

Chanel is an international group corporation consisting of the original French-based company Les Parfums Chanel founded by Gabrielle Coco . Global CEO is the chief operating officer of the Chanel Group consisting of multiple companies and is based in New York. The President is the person in charge of Chanel company which is the operational company, and is based in Paris.
 Chanel must be the only company in the world whose business is so extensive but remains privately held and unlisted. The style of its existence itself is one-of-a-kind.  Chanel employees all share Chanel’s global vision in mind.  Not every year, but Chanel presents a vision whenever the company aims at achieving a big change.  “The Ultimate House of Luxury, defining style and creating desire, now and forever”was the vision Chanel announced at the beginning of 2008.  The expression “now and forever"suggests the timelessness of the brand. Reflected in the word “style" is the founder Coco Chanel's philosophy to stress her belief that fashion changes but style endures. The phrase "the ultimate house of luxury"shows Chanel’s commitment to producing luxurious and high-quality products as a label being at the opposite end of mass production and the company’s dedication to skilled 55 craftsmanship. At the foundation of Chanel’s global vision is Coco Chanel’s philosophy and values that have been passed on to the workers. The vision compels workers to constantly change with the times and the environment, which was another value stressed by Coco Chanel. The mission and vision are implemented throughout the operation. As President Richard Collasse of Chanel Japan puts it, "Chanel itself is the world's top brand of absolute luxury".

Consumer Decision Making of Luxury Goods

Consumer behavior is a processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.  There are five steps processes used by consumers when buying goods or services:

The consumption of luxury goods can be considered as a high involvement buying behavior as the products are highly priced. Further the involvement deepens because the consumption of luxury products has a prestige value attached to it and the consumers use this to display their status in the society. Since luxury goods are products that are considered as symbolic goods, they are subjected to social risk which makes the consumer involvement stronger. Moving ahead with the buying behavior, it’s important to understand the purchase decision process which eventually a consumer goes through to make the final purchase. The motivation to purchase a luxury product is the individual need for sociability and self expression.Therefore reference groups are the key for individuals’ to make purchase decision for luxury products.

The Marketing Environment

As an luxury good, Chanel is relatively high to the requirement of consumers.  As the global consumers by the general improvement of education degree, consumers will also  pursue more quality of life, the extravagant and esteemed buying trends of luxury goods will also be improved.  The heating up of urbanization also makes consumers know more luxury goods market, provide consumers a platform of consumption.

As the improvement of the status of the residents income, per capita GDP growth, the consumption amount of residents for luxury goods also will continue to grow, China's luxury consumer market has more than 50% is import consumption, consumption of the products are mainly for the wrist watch, cosmetics, clothing and package, etc., perfume occupies a pivotal position in the cosmetics, and the Chanel No.5 ranks the first in recent years of perfume sale.  From the point of long-term trend, the improvement in China's economic conditions and rising GDP per capita improve Chanel no5 sales with considerable positive function.

The Four Ps

Produce: Chanel products with highly costly to appeal more, ling plaid Kang Peng series, with the words on behalf of the double C, the distinctive flavor of jasmine, both for its products unique style, distinctive and do not break vogue elegant lasting appeal.  bring heir lovers brings a feeling of fashion and vanity, add a double benefit for using Chanel products.

Price: Chanel is the international famous brand, its pricing strategy is based solely on its high quality and high quality image is made, the high price is also the strategy.

For example, the price of two countries of Chanel No.5 are:

USA: 130 usd/3.4oz

China: 1000 yuan/3.4oz

In USA, Chanel perfume belongs to intermediate consumption; But in China belongs to the luxury goods.

Place: In terms of the choice of site,  to comply with its positioning，Chanel only  on the place which are upscale department stores and the commercial center.

Promotion: Chanel is the international famous brand with a history of decades, basically do not do sales promotion. Occasionally do the billboards in fashion magazines such as Elle, Vogue.  

Advertising Strategy

Advertising is the main carrier of the independent brand image and promote the product sales.  Any company would focus on advertising, advertising communication,  The degree of the effect of advertising design, advertising media choice appropriate or not, the number of ads and the cycle would effect the product is good or bad.

Chanel perfume focus on the visual of terminal, the goal is to let feminine know the perfume is not used to shade the body odor, show their own fashion, but rather becomes a tool reflect their own unique taste, people can even with Chanel perfume to distinguish between individual and individual. Chanel perfume's sales don't use the general sales way like pursue the easy way to consumers to purchase, in contrast to the appropriate control of its sale, consciously control the consumer groups in sales promotion, let the consumers to produce a "daughter is hard to find" eager shopping psychology.

Chanel perfume media plan is to make consumers from never learned to learn, and finally have some loyalty.   Perfume publicity should choose a specialized media, such as higher circulation magazines which upscale consumer groups contact.  Chanel perfume's inherent noble feeling make it not suitable for the bombing of advertising strategy and a wide variety of stores sales promotion methods as close to the consumer the best too in the brand communication， but grasp the detailed images of the terminal visual to be the brand's connotation, which realize the communication with the customers and drive sales.

Chanel No.5

Chanel Company has different products, perfume is one of the most famous product,  As a luxury brand, its market target consumption group is elegant, fashionable women, which have consumption ability,  Because of customer focus, In marketing, Chanel if more focus on leading the fashion, with the fashion crowd to lead the public praise.

Products have a  good core competitive points, also need to use quality to support it, will promote the the sale of products for a long time.  In 20th century, the famous American actress Marilyn Monroe reveals the secrets of her unique sexy charm when she said:"I only wear Chanel No.5."  A seemingly ordinary words, but says the Chanel perfume's exquisite modulation techniques and the unique appeal.  

In Chanel Company, all the perfume id not step-by-step follow the production routine, but to fully mobilize the deployment's the smell of perfume coordinator, see, touch, hear, taste to feel the and experience the products, to create products with all the mind.  In 1986, Chanel No.5 EAU was created by the Jacques Polge.  To deduce the feminine's elegant and beauty with a new method.  It also laid a solid foundation of Chanel Perfume's  high quality.