Chapter 7: Business Marketing

       Chanel is known to be a very exclusive brand when it comes to business. Even inside the fashion industry, very few have heard of Chanel’s only shareholders, the Wertheimer family, grandchildren of Pierre Wertheimer, Coco Chanel’s early business partner. Privately held Chanel is different, from other luxury brands. Chanel doesn’t announce their business strategies, appear in industry conferences, or report their performance figures publicly. Nobody outside the company knows exactly how big the Chanel business is. The fragrance and beauty business single-handedly has been estimated to turn over more than $1 billion a year, powered by the world’s first and most famous modern fragrance, Chanel No. 5. In terms of business marketing, which is the marketing of good and services to individuals and organizations for purposes other than personal consumption. Chanel is clearly for personal consumption, the company is not a business market, making the brand a consumer market. As being a consumer market the company's buying and  purchasing is approached in a more professional and personal manner. 

      Chanel may have joint ventures with other brands, but the company does interact with other department stores, where Chanel products are sold. There is a level of "trust" and "relationship commitment" involved in this interaction, that Chanel shares with allowing certain places to carry product items. In most department stores, such as Macy's, Bloomingdales,  Harrods, etc. Chanel markets to those who can afford the brand but preferably to women ages 16-80 years old.

 

    In terms of business purchase decisions, Chanel takes great pride in their customer service and goods and services.  As being said since the company is a consumer's market they are very personal when it comes to all aspects of buying behavior and purchase decisions. Chanel builds strong relationships with consumers, and are extremly accommodating to the needs of customer's by keeping up with their personal requests. This may be another factor in why the company has been so successful for over a century with, a estimated amount of $3 billion yearly.

Chapter 8 - Segmenting and Targeting Markets

       When Chanel first arrived into the fashion world in 1909, the small brand was targeted towards the new age woman who wanted to be dressed in style and class. Which started off mostly in hats and simple clothing. As for today, I have stated previously in other chapters, the House of Chanel caters to a target market of mostly women from as young as 16 years old to 80 years old. Chanel does also target to men, mostly mid twenties to middle aged. Chanel is a high quality brand, meaning that those who can afford it, purchase it. Customer's can choose from an array of products. There is something available for everyone.  Chanel offers, haute Couture Line, ready to wear, resort line, men's and children's collection, fragrances, accessories, footwear, skin care, and cosmetics.

   Chanel's geographic segmentation is expansive with a large market in Asia and Europe. Chanel has over 200 stores world wide, mainly in metropolitan cities such as, New York, Miami, Paris, Moscow, etc.  In terms of psychographic segmentation Chanel, holds much value to those who can’t afford the brand. Lower class and middle class working people crave the brand because of its high status and features all over magazines, and billboards. Chanel presents advertisements with infamous supermodels and actors, which reaches out to the this target market. Chanel is not just a luxury brand it is an iconic brand.