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.
      
      
      
      
      
      
      
      Competitive Advantage: 
        The house of Chanel is known for its classic and timeless designs. Thats, what differs them from other designers they stick to what they known rather than being modern like everyone, its what makes them unique. Chanel’s competitive advantage lies in promotion, quality, benefits, and their design features. Advertising in almost every fashion magazine is key to what helps Chanel alive. Chanel has about five ads in Vogue alone, advertising different products. From make-up to this seasons handbag. 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. Furthermore, Chanel has about four fashion shows a year to keep their high-end clientele buzzing a  well as previews of what to expect.
      

      Target Market

      Chanel targets high-income costumers of both genders.
      

      The Four P's

      Product: 
      • Chanel offers its customers its unique and classic design but also high controlled quality products as well. Including serial numbers to authenticate their products. Chanel also accommodates custom made products

        Place:
      

      • Chanel is available worldwide. Chanel operates some 310 Chanel boutiques; 94 in Asia, 70 in Europe, 10 in the Middle East, 128 in North America, 2 in South America, and 6 in Oceania. The shops are located in wealthy communities, usually in department stores, shopping districts, and inside airports. 

       
      Price: 
      •  Chanel is an expensive brand and they don't offer many of sales because they have high standard products that are bought mostly by people with higher incomes. Chanel's prices range from $299 to well over $8,000 for their products. But their price is accompanied with premium quality products and service.  

        
      Promotion: 
      • Chanel has various types of promotion. In store being one, where employees in every division is trained 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 also promotes through social media as well as advertising in many magazines. Chanel has events when they launch new season line or open a new store, they give the guests Chanel products which helps promote.