Chapter 11 - Developing and Managing Products

        

    
          Chanel is a established luxury fashion brand and beauty company, which is well known to the world and the fashion industry. Chanel is most famous for revolutionizing fashion for women and presenting a timeless style of elegance for all ages. Apart from founder Coco Chanel, the company's success in developing products remains on Karl Lagerfeld. Karl Lagerfeld has never failed in giving the consumer's what they desire in a luxury brand. Chanel is able to strike a strong balance between the past and the present which something that eludes many luxury competitors. The House of Chanel works with punky, of-the-moment models like Cara Delevingne while always upholding a timeless, prim and proper image.

       In recent years Chanel has undergone an industrial revolution. The old-fashioned fabrication has been replaced with state of the art production methods carried out in factories in Compiegne, Pantin, and Saint- Chamant. All manufacturers’ procedures are regulated down to the smallest detail. Chanel offers the classic product items in their boutiques throughout the year while, introducing new products with each fashion season. Chanel is most famous for The suit, The Cameilia, The Little Black Dress, jewelry, and fragrance & beauty.  

        For Chanel the development of new products and clothing is all about creativity. The foundation of creativity is the codes of the brand. These codes are iconic because eight times a year, for two haute couture and six ready-to-wear collections , Karl Lagerfeld and his studio to come up with new interpretations. The team of innovators create, collection after collection, inventing the Chanel story again. The company's strong to devotion to fine materials, technology, and to the brand's philosophy have contributed to number of product lines that have excelled. Currently, Chanel is one of the most successful business models founded on creativity.

Chapter 16 -Integrated Marketing Communications

       Chanel is a world wide iconic brand, that has been around for a century.  Chanel itself is fashion, and the brand represents everything fashion stands for. Chanel continues to reinforce the concept of ageless clothing that has inspired many contemporary designer's for their ready-to-wear collections today. The house of Chanel has numerous successes that have changed the fashion industry especially through the company's promotional strategy and competitive advantage's.
          In terms of attention and promotion, Chanel has a very strong advertising campaign that draws a target market of ages between 16- 80 years old. In most of Chanel's advertisements in magazines or billboards the brand usually has one or double pages with very simple design.  Chanel pushes product articles in magazines for consumer's to desire the products compared to the competitor's other options. Chanel encourages fashion magazines to publicize about their products, whether it be about a recent fashion show or a description about a new fragrance. In most fashion magazines such as Vogue, Chanel products are often featured on models. This is another form of Chanel's marketing concept without being featured as a typical advertisement. Chanel has t.v advertisements and other variations of videos on YouTube, Chanel.com, and the Chanel blog. Mostly the advertisements shown on television or on the internet is for Chanel's fragrance and cosmetics line. These short films express what Chanel is conveying to the buyer about the product and why they must need it. Chanel's advertisements for sample products are another factor in their sales promotion. Chanel offers samples to consumers for cosmetics and fragrances, which can be offered in department stores or Chanel boutiques. This strategy is offered to communicate to a different target which is referred to as masstige, for those who cannot afford Chanel products.

       Chanel's communication department is very important to the company as a whole. They use communications to perform as a tool to the public audience and to fashion industry. Chanel corresponds to the public through fashion shows. These fashions show are usually highly anticipated and draw much attention. Many famous celebrities, fashionistas, bloggers, magazine editors, and other prestigious people of the fashion world attend the Chanel fashion shows. Head fashion designer, Karl Lagerfeld has always had strong public relations with media and famous clients which draws more and more interest to the brand. Karl Lagerfeld has influenced much of the fashion industry today and has effectively transformed the entire marketing strategy for the greater of Chanel. As Coco Chanel was once famously quoted "Fashion is not something that exists in dresses only. Fashion is in the sky, in the streets, fashion has to do with ideas, the way we live, and what is happening."

Chapter 10: Product Concepts

 

         Today, Chanel stands out in just about every category of fashion including, couture, ready-to-wear, accessories, jewelry, shoes, and fragrances. Chanel has their own specific way of marketing according to strategy, advertising, retailing, and products. In general, there is no one specific product concept for Chanel because the company sells a variety of products from different categories.  What began in the early 19^th century, Chanel was designed to let women be comfortable while looking fashionably dignified, has evolved into classic, tailored style. In ready-to-wear clothing there are many signature Chanel product designs, such as the traditional tweed Chanel suit, quilted two-chain purse, and little black dress. These items remain fashion icons for designers and labels today.                             
         Chanel designs many clothing lines such as, ready to wear, haute couture and cruise wear.  Ready-to-wear clothing means that these items are mass produced in standardized sizes and sold at Chanel retail stores in finished condition. Ready-to-wear clothing is in contrast to clothing that is made-to-order, custom designed, personally fitted or one-of-a-kind, which is sometimes referred to as haute couture. Haute couture is custom fitted, limited amount, expensive fabrics, and hand-sewn by seamstresses The price of a haute couture gown cost ranges from $25,000 to $10,000,000.  Chanel also offers, cruise wear which is clothing made for mostly comfort and a vacation feel look. Chanel produces many clothing lines each year for ready-t0-wear items for each incoming fashion season. 

     

       An example of product modification is Chanel’s reinvention of the sister perfume to No.5 named, No.19.  This perfume is named after Gabrielle Coco Chanel’s birthday, which is August 19th. Created in 1970 by Chanel’s in house perfumer Henri Robert, the perfume is one of Chanel’s most stimulating iris fragrance. The bottle used to look identical to Chanel No. 5 but now newly reinvented fragrance has a light green color too it and a slightly different bottle. Chanel provides new product items for there product line of fragrances which are carried world wide in department stores and Chanel boutiques.

           Chanel's product concept is much like the company's mission statement and global vision as a whole. The brand has stayed true to the early vision of Chanel, to be timeless and sophisticated. The products that Chanel sells are a reflection of Coco Chanel herself, and what the brand has impacted on the world today. Chanel items tend to have underlining sex appeal and appear in lavish fabrics with many embellishments. Which always applies to one of Coco Chanel’s famous quotes “ A girl should be two things: classy and fabulous.”  Consequently is very appropriate seeing that is the total quintessence of the label today even a century later.

Chapter 18: Sales Promotion and Personal Selling

         

           Chanel is a very expensive and exclusive brand, in which doesn’t offer many sales for the public. They don’t offer many sales for clothing because of the high quality material in most of the products. Mostly all the products are consumed by buyers who can afford Chanel so, sales are not frequent. Ready-to-wear clothing from previous seasons may have higher or sometimes lower prices. The article of clothing maybe valued at more money because of its exclusivity or lower because it is 'out' of season.  The price of clothing usually is lowered after one or two seasons later. Since Chanel products are also sold in certain department stores, there are also promotional sales for cosmetics and skin care items. Many advertisements for department stores and Chanel may be shown to try and new product, sample, or test new makeup. The four different types of Chanel cosmetic sales promotion are 1.) adding value (gift set)  2.) makeup  3.)new product samples  4.)complimentary shipping.   

        
      

            Another way of sales promotion is privates sales in certain boutiques which are held occasionally for certain collections. One of the most recent promotional sales in New York City was when the Chanel boutique in Soho had first opened in 2010 on Fashion's Night Out. Chanel has many events when they launch their line or open a new store, they give the guests Chanel product. This allows the guests to test the products and take samples home.  At the opening celebrities attended as well as Karl Lagerfeld, which always brings in a crowd.                  

          In terms of personal selling, Chanel products are often sold on the internet. Usually previous owner's will sell their used products on websites such as amazon, ebay, etc. Buyers are usually more cautious when purchasing items online because buying a counterfeit product is always at risk. Buyers who do purchase previously owned Chanel products, fall in the target market who aren't wealthy and can't easily afford Chanel products.

Chapter 17: Advertising and Public Relations

        

             Chanel has a wide variety of advertising campaigns that are featured in fashion magazines, billboards, department stores, and occasionally on television commercials that can be seen all over the world, as well in different languages. Chanel spends millions each year on advertising, using various famous models and celebrities for these advertisements. For example, Chanel has used Kate Moss and Keira Knightley to be its spokespeople for the fragrance Coco Mademoiselle, and Marilyn Monroe for Chanel No.5. Today, Karl Lagerfeld hand picks the models used for the newest Chanel campaigns and takes the photographs for the Ready-to-Wear national ad campaigns. Much thought and detail go into making advertisements for Chanel, which goes hand in hand with the clothing. Chanel offers advertisements for all areas of productions which they sell. The most common advertisements seen would be clothing, cosmetics, and fragrances. These advertisements aren't as frequent or pushy as other brands because Chanel is already a well-known exclusive brand. These advertisements usually target towards people who can afford the brand from as young as a teenager to a stylish senior citizen.                                      
         Chanel is a global leader in the fragrance industry and a top innovator in fragrance advertising and marketing. Chanel continued to spend more on advertising than almost any other perfume company and, as a result, was earning the richest profit margins in the industry. In addition, the company had continued to expand into new product lines, including Chanel watches retailing for as much as $7,000, additions to its popular shoe line, and other high-priced clothes, cosmetics, and accessories. Chanel uses advertising appeal mostly when it comes to cosmetics and skin care line, showing the consumer with buying certain products it will improve their skin or denounce flaws in facial features. 

 

     In terms of Public Relations Chanel has many different techniques. Chanel has regular merchandise demonstrations for publishing new products that invite media to report. These kind of meetings can also function as a means of product placement. Chanel often has dinner parties for celebrities like movie stars or top models who are invited to join as to enhance Chanel’s popularity. Cooperating with websites is another way of promotion, such as style.com, or vogue. Chanel also has their own website with an FAQ and also a fashion blog. Chanel also offers exhibitions for media and the public. One of the most recent exhibitions was titled "The Little Black Dress" clearly after Chanel's iconic little black dress which has influenced today's fashion. This exhibition was seen all over the world, including New York Paris, Berlin, Dubai, and Milan.