Chapter 7. Business Marketing

 

  When it comes to business, Chanel is known everywhere for its exclusivity. Chanel is run by the companies shareholder the Wertheimer family whom have been Gabrielle Chanel's early business partner. The company is held together privately differently than other luxury brands like Prada, and Gucci. Chanel never announces their business motives, attend industry conferences, nor do they report their performance figures publicly. Making it impossible for anyone on the outside to know exactly how big Chanel's business really is. As far as business marketing, Chanel is for personal consumption. The company is not a business market, making the brand a consumer market. Being a consumer market the company's buying and purchasing are approached more professionally and in a personal manner. 

 The company had joint ventures with department store where Chanel products are sold. Having these ties there is a level of trust and relationship commitment involved. Chanel shares this with those department stores, Macy's, Saks, Bloomingdales, etc. The company markets to men and women 16-80 that can afford to buy the brand.

 Chanel takes great pride in their customer service as well as goods and services when it comes to business purchasing decisions. Being a consumer market they are very personal when it comes to all aspects buying behavior and their purchasing decisions. They company builds strong relationships with their customers and are more than accommodating  to their needs, personal tailoring being one of them. This is one if the leading factors to why the company is so successful with an estimated $3 billion a year as well as being the leading house of luxury world wide. 

Chapter 8. Segmenting and Targeting Markets

  In 1909 when Chanel started, the company targeted women whom wanted to dress fancier with style and grace. Chanel then started off with hats and modern clothing but also eliminated the corset. The company still targets the same market today of women ages 16-60 but also adding men ages 20-60. Being a luxury brand name, only those more financially endowed tend to pay the price for Chanel since they can afford it. Chanel has a huge selection of different products; haute couture, ready to wear, resort line, men's and children, fragrances, cosmetics etc that cater to its target markets consumer wants and needs. 

  Chanel has over 200 stores world wide with geographic segmentation expanding in the large market in Asia as well as Europe. Chanel retail store and boutiques can be found in busy tourist attractions like New York, Miami, Paris, and Moscow. As far as psychographic segmentation, the company is true to the definition. Chanel targets consumers who's lifestyles can afford the brand, thus  individuals of lower and middle class tend to want the brand more because of its exclusivity, wanting what you can't have in other words. With the use of famous faces and beautiful models the company pulls it's consumers in with advertisements. Helping the house of Chanel to remain the ultimate house of luxury. 

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 10. Product Concepts

 When it comes to Chanel there isn't one specific product concept. Chanel sells a variety of different things, also known as a product mix. Those items such as couture, ready to wear, accessories, fragrances and jewelry. It's also known for its product line, for an example their accessories go hand in hand with their ready to wear clothing. Chanel was originally designed to for the comfort of women, so they'd feel comfortable and fashionable in classic tailored style. Chanel has various signature looks in their ready to wear line, such as tweed suits, the very famous quilted two chain bag, and also well known the little black dress. All these designs are still inspiration to designers today, and are often imitated. 

 Chanel has three main clothing lines that are known and often produced. Ready to wear, haute couture, and cruise/vacation. Ready to wear is what you'll find in retail stores, they come in certain sizes and are the finished product. They aren't customized to your body unless needed. Haute couture is customized and tailored fitted clothing. There's always a limited amount due to no two bodies being the same. Haute couture is more expensive then ready to wear since it's limited are the fabrics cost more. Lastly cruise/vacation wear, which basically clothing that's made for the comfort of vacation. But can also be worn just because it's more comfortable. 

 

 Product modification is no stranger to the company, Chanel is constantly reinventing it's self. Chanel spring 2013 introduced "Chanel Rougue Allure Luminous Intense in Envoutante" a deep shimmery mauve lipstick. Chanel Envoutante has a similar deep, beautiful shimmery quality as the Louis Vuitton monogram vernis. Chanel Envoutante, which roughly translates to “spellbinding” is not as deep as Chanel Rouge Noir, but is deeper than Chanel Rivoli. Chanel provides new product items for their make up line, which can be purchased at department store or chanel retail stores. 

 Chanel's product concept is no different from their mission statement and vision, which the company has stayed true to. The products the company till this day is a reflection of Coco Chanel and he vision to being the leading house of luxury. Chanel clothing underlines seduction and sex appeal of a woman. After all "A woman is closest to being naked when she is well dressed." 

Chapter 18. Sales Promotion and Personal Selling

 At Chanel there isn't numerous sales due to the company being such a expensive and exclusive brand. And almost never offers sales to the public. With the Chanel "Ready to Wear" clothing you'll never get a sale with the clothing being tailored to your exact body type. Being that, most of the sales Chanel consume is from customer whom can afford to pay the price. Sometimes prices for last season items are lowered and sometimes they rise due to the exclusivity of it depending on how popular that item may be. The Chanel items that are sold at department stores like Macy's or Saks have promotional sales on cosmetics and skin care. Chanel advertises in department stores with having customers sample new products by testing the makeup and skin care or fragrance with sale reps. They're four types of sale promotion used for cosmetics for Chanel; gift sets, makeup, new product samples, and complimentary shipping.

 Private sales is another type of sales promotion chanel uses. In specific Chanel retail stores private sales take place for a specific collection. For an example, at the 2010 New York City's "Fashion Night Out" for the Mercedes Benz fashion week, Chanel had a grand opening party for the soho location. Chanel gave many guest complimentary samples that night to promote upcoming products. Chanel often gives away complimentary stuff when they have launches for new product and open new retail stores. Usually at opening head of Chanel Karl Langerfeld attends as well as popular celebs, this always brings a buzz and advertises the company more in the media.

 As far as personal selling goes for Chanel, often times people who own chanel products will sell them online at popular sites like eBay and Amazon. The prices online usually skyrocket and most buyers are skeptical of buying products online due to Chanel's counterfeit problem. In terms of follow-up the company is excellent at making sure customer needs are met to the fullest, and every thing they are promised falls through. All the employees are properly trained and never fall on the way to use products.