Chapter 4: The Marketing Enviroment

       The House of Chanel is globally established company that has been around for over a century, resulting in an extensive range of target markets. Chanel products are an assortment of clothing, accessories, perfumes, and cosmetics that attract people from around the around the world of all ages. Chanel isn't the most affordable brand when it comes to retail, consequently the preferable audience is for people of higher income and celebrities. 

       The ready to wear clothing depending on the collection, mostly targets men and woman of today's generation (generation x). Some not all collections are targeted towards the younger generation because Chanel is a ageless brand which, a woman of any generation would appreciate wearing. The accessories, and handbags are also the alike depending on the style of the product can be wearable for any generation. As for cosmetics and skin care depending on the product, may be used for woman ages 16 and above.  The skin care line offers many different products for the type of skin a woman may have. For example the ultra correction line repair cream is a product developed for anti-wrinkle maybe be used for woman in their mid 30's and older.  For younger woman, the mousse exfoliante pureté is a rinse-off exfoliating cleansing foam purity cleanser may seem more appealing to use. 

       In terms of perfume there are also directed target markets for woman. The most well known perfume and best seller, Chanel No. 5 is said to represent a mature strong woman of elegance and sophistication. The scent is captured to be very distinct and classy. The perfume is distinguished to be worn for mature chic, refined woman. The commercial used for Chanel No. 5 is represented by the very elegant Nicole Kidman. In the commercial Nicole is portrayed as the most famous woman in the world, with whom an anonymous writer becomes infatuated with. Afterwards, a fragrant memory is all he has of her, "her kiss, her smile, her perfume."  The newest Chanel No. 5 commercial has made recent history because for the first time a male actor, Brad Pitt is the spokesperson. The commercial had received many mixed reviews, but as news reports have said numbers don't lie, resulting in another hit ad for the reinvention of Chanel No. 5. 

 

       In terms of targeting towards a younger market, the perfume Coco Mademoiselle is indicated for young woman. The most recent commercial for Coco Mademoiselle stars Keira Knightley.Three years after the first commercial film, Knightley reprises her role as Coco Mademoiselle, a modern day Coco Chanel whose mysterious, daring and rebellious. The commercial takes on a urban feel, with Knightley appearing on the streets of Paris in a chic, beige motorcycle jumpsuit. The commercial shows the relationship between the photographer and the model, reflecting of sense independence.The fragrance represents the spirit of Coco Chanel in this feminine, sexy, young and exciting fragrance.

  

Chapter 3: Ethics and Social Responsibility

      In terms of ethics and social responsibility fashion has never had the best reputation.  Regarding issues about eating disorders, body image, and also the use of animal fur. Though luxury goods that Chanel sell may be see to be extravagant, lavishness, or even wasteful, this might appear to be a contradiction. Head designer Karl Lagerfeld has caused much positive and negative controversy through the Chanel brand. 
     Recently Chanel has "gone green" reported using eco-friendly materials and craftsmanship in many of the newer clothing pieces. Chanel's spring/summer 2013 show at Paris' Grand Palais had gave fashion a whole new meaning to the idea of eco-friendly clothing. Showcasing the new designs, models strutted the catwalk along with giant wind turbines and titled solar panels.  

   Chanel has paved the way for many other brands to not use real fur. Chanel deputed their faux fur look in 2010 as alternative for real fur used in many luxury brand's looks. Karl has stated “I can hardly eat meat because it has to look like something what it was not when it was alive.” In terms of the perfume and cosmetics field,Chanel does not test against animals or use any type of animal in the products.

Karl Lagerfeld has sparked much attention when it comes to fashion models, whether the models he has used in any of his campaigns/shows have been too thin.  In one interview when he was asked if he feels responsible for the the health of the models he works with, he responded with "I can tell you all kinds of moral tales, but fashion and reality are vaguely different." Controversy had struck when plus size model Crystal Renn was used for a Chanel campaign. Crystal was shot from the neck up not showing her figure in the photograph. Many critics had their opinions whether Chanel, or rather Karl Lagerfeld was discriminating against plus size model figure. I beg to differ because Crystal Renn was then used Chanel's 2010 resort show. Having a plus size model walk in a Chanel show was declared as "groundbreaking" for the fashion world. 

Chanel has reported to have saved a number of Parisian haute couture ateliers, from going bankrupt thanks to morally concerned head designer Karl Lagerfeld. Chanel also has many charity events, and fashion shows that support a cause each year,which the proceeds go to. The Chanel Pour le Temps Charity Fashion Show is one of the most anticipated events of the year. Chanel is more than just a luxury name, and more than a fashionable handbag. 

http://nymag.com/thecut/2010/05/andr_leon_talley_on_calls_crys.html , http://chanelpourletemps.weebly.com/home.html, newyorktimes.com, chanel.com, 

Chapter 2 - Strategic Planning for Competitive Advantage

    
    Chanel S.A., also known as The House of Chanel, is a privately owned company. Chanel is known world wide as a luxury brand. Through the luxury brand, the products sold are produced of high quality. Chanel is a global leader in fashion the fashion world and also the top innovator in the fragrance industry for decades. The mission of Chanel is "to be the ultimate house of luxury, defining style and creating desire, now and forever." Chanel illustrates products desirable of both sexes.  Chanel's strategic planning for competitive advantage isn't as loud or demanding than other fashion brands today. Chanel is a well established brand for nearly a century, and globally known. Chanel's growing success today lies mostly on Karl Lagerfeld, who never fails to interest consumers. Chanel is also extremely effective in preserving the brand image, in agreement to buyer’s wants and market trends. 

SWOT analysis of Chanel S.A

Strengths:  

-- Strong brand image: The brand focuses on timeless and classic designs that is highly recognized. The Chanel logo is also an icon.

-- High quality products: Most clothing pieces and accessories made are used with high quality materials and fabrics. Leather and tweet are the most infamous materials used in classic Chanel looks. 

-- Designer Karl Lagerfeld: Fashion icon Karl Lagerfeld is always reinventing Chanel and is known to have changed everything, yet nothing about Chanel. 

-- Strong Management: Chanel INC. is an Equal Employment Opportunity (EEO) employer, which has highly trained individuals who are technically skilled and knowledgeable about their qualified area of expertise.

Weakness:  

-- Price: For some the price of Chanel maybe reasonable but for most working class people the brand is rather expensive, which comes with sacrifice.

--Limited Production: Chanel discontinues many products after a period of time, especially in beauty production. Chanel may discontinue a certain item if it is from an older season.

Opportunities:  

-- Expansion: There are Chanel stores located in North and South America, Europe, Asia, and Australia. The company continues to expand sales production in the booming Asian market today.

-- Technology: Including the Chanel website and among other social networking sites. Chanel also offers an application on apple products.

Threats: 

-- Counterfeit: Illegal production of interfacing C logo and purse distribution are most commonly counterfeited. 

--Imitating Designs:  Many other designers and brand names mimic classic Chanel looks and often sell for more affordable prices to the consumer. The classic quilted chain purse, and "little black dress" are among many of the classic looks often replicated.  

Competitive Advantage: 

           The top three competitors of Chanel S.A are Louis Vuitton Moet Hennessy (LVMH), Gucci, and Prada. All luxury brands may seem similar to some but each of these brands differs completely to origin. Chanel differs from other designers because it is a classic and ageless brand rather than very modern or contemporary. Chanel’s competitive advantage lies in promotion, quality, benefits of use and design features. Chanel has advertisements in most fashion magazines, including Vogue. Chanel sells their cosmetic and skin care line separately in stores from the ready to wear clothing and accessories. The cosmetic and skin care line can be found in Macy's or Bloomingdales department stores. Each trained employee in every division is training accordingly to the area whether it maybe a makeup artist or consultant. Each consultant working in a Chanel boutique has had previous training in Paris to learn the history of the brand.

      Chanel has a fashion show four times a year to show each season's newest looks. The four types of fashion shows include, ready to wear, resort, pre-fall, and couture. These fashion shows include some of the most famous models strutting down the catwalk in the most luxurious of destinations. These fashion shows draw much attention and many prestigious individuals of the fashion world attend and also, celebrities.

chanel.com , wikipedia.com, newyorktimes.com, forbes.com