Chapter 4. The Marketing Environment

 A target market is a group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges. Chanel is a internationally established company that has been around for over a century, resulting in an extensive range of target markets.
Chanel's merchandise are an arrangement of clothing, accessories, perfumes, and cosmetics that attract people from around the around the world of all ages. Chanel isn't a affordable brand when it comes to retail, the preferable audience is for people of higher income and celebrities.

The clothing mostly attracts and targets generation x. Some also targets younger, like infant wear due to Chanel being a "ageless brand" and any woman of any age would appreciate wearing

  of course.The accessories, and handbags depending on the style 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.

As for Chanel's fragrance line, its also a target market for woman. Chanel No. 5 is one of the top sellers and very popular. The fragrance is said to represent the component lifestyle of a mature strong woman of elegance and sophistication. The scent is known to be very distinct and classy. The perfume is distinguished to be worn for mature chic, refined woman. Chanel has used Brad Pitt in a recent commercial to attract the eye of more women. I believe that was a great target move used as well as environmental management. As far as targeting towards a younger market, the fragrance Coco Mademoiselle is indicated for younger woman. The most recent commercial for Coco Mademoiselle stars Keira Knightley.

Chapter 3: Ethics and Social Responsibility

Ethics refers to the moral principles and values that generally govern the conduct of an individual or group. Ethics can also be viewed as the the standards of behavior by which conduct is judged. In ethics and social responsibility, fashion by far has one of the worst reputations. With issues like eating disorders, body image, use of animal fur, and the message it sends to the young.

Chanel has recently "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 opened the doors and lead the way, for other brands to not use fur. Chanel does not test against animals in their perfume and cosmetics or use any type of animal in the products. Chanel revealed their faux fur look in 2010 as a alternative for real fur used in luxury brand looks.

Chanel had 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 one of the most anticipated events of the year. Chanel is more than just a luxury name, they have saved many Parisian ateliers from going bankrupt thanks to head of Chanel Karl Lagerfeld.

Chapter 2. Strategic Planning for Competitive Advantage

The business mission of Chanel S.A. is "to be the ultimate house of luxury, defining style and creating desire, now and forever." Chanel produces products favored by of both sexes. Chanel's strategic planning for competitive advantage isn't as loud or demanding than other fashion brands today. Chanel has been a very well established company for about a century now, as well as being known world wide. Today Chanel's success is in the hands of Karl Lagerfeld. He is the head designer and creative director for the fashion house Chanel as well as the Italian house Fendi.

SWOT analysis:

Strengths: 

•  Strong Brand Image: The Chanel logo is considered to be an "icon", as well as being highly recognized. The core of Chanel is timeless and classic designs that are globally known.
• High Quality Products: Leather and tweet are most commonly used in classic designs by the house of Chanel. Many of the pieces today are used by high quality and well known fabrics.
• 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.

"Fashion is not something that exists in dresses only. Fashion is in the sky, in the street, fashion has to do with ideas, the way we live, what is happening". -Coco Chanel

Weaknesses:

• Price: For many, myself included, Chanel is overpriced and not for the working class, also known as the "Middle Class". For others Chanel is a reasonable price. But the brand is indeed expensive and a bit of a sacrifice for a "Icon".

•  Limited Production/Discontinuing: Chanel tends to discontinues many of there products after some time, due to being out of season. Limiting what customers can buy.  

       "A girl should be two things: classy & fabulous."-Coco Chanel.

  Opportunities:

  •   Expansion: Chanel has stores located in many places around the world. Including North and South America, Europe, Asia, as well as Australia. 
  • Technology:  Other than the website, Chanel also offers a application on the Apple store. 

    Threats:

    • Counterfeit: Illegal production of interfacing C logo and purse distribution are most commonly counterfeited. As well as quilted chain design.