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.