The Marketing Strategy Behind the Success of Chanel’s N˚5 Fragrance
INTRODUCTION
Gabriell (Coco) Chanel founded her company in 1913 in Paris, France. The main profile of the company at the beginnings was fashion design by Chanel herself from 1910 to 1971. She was a real innovator on the market. After her death Karl Lagerfeld became his successor, currently he is the mastermind behind the world-famous, top-selling luxury brand. Chanel soon expanded the product range and started to design luxury hats, clothes, fragrances, accessories and cosmetics. The ideology behind the brand is elegancy, beauty and self-respect of women; Chanel has a parallelism with personal identity embedded into luxury. This is illustrated by the current slogan of N˚5
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Since pricing was strategic from the very beginning the fragrance soon became a symbol of status quo and a privilege of the upper class elite. Thus Chanel - for its aim was and is to be the brand of the most exclusive –has always used the high-price staregy . The high price strategy is maintained in accordance with the quality of the product: if something is pricey we tend to really believe that it is the best of quality available whether it’s true or false. Presently, the N˚5 fragrance is distributed in a still high but more available price as its revision of target audience includes the upper middle class. In Hungary, 100 ml of the fragrance is about 30 000 HUF what is about 100 Euro or 120 Dollars (Chanel, 2014).
THE PLACE
In distribution Chanel has always focused on the prosperous areas visited by the rich. Presently, Chanel is available in all the continents. Chanel has more than 300 boutiques all around the world the most significant figures are 70 in Europe, 94 in Asia and 128 shops in North America . Plus by the expansion of the target market to include the upper middle class many airlines distribute the fragrance.
THE
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They employ the most popular models and celebrities. They are also in constant partnership with the most popular fashion magazines like Vogue, Prestige, Glamour, Elle and Elit. The marketing strategy of the N˚5 Fragrance is unchanged and was kept simple in the past 90 years. Celebrity culture proved to be successful in advertising this product: they started off in the 1950’s with Marylin Monroe with the statement: "What do I wear in bed? Why, Chanel No. 5..." (Vogue, 2011). In most of the ads featuring Monroe no text was added to the image, just the perfume placed somewhere on the site. This minimalism was kept in the decades which passed. Celebrities like Brad Pitt, Nicole Kidman and Audrey Tautu contributed to the promotion of the fragrance in the past few years – no slogans, no additional text just the idol and the perfume and its name “N˚5” (See pictures included in the
Chanel was a french fashion designer who most often consider the creator of the “flapper look”. She took inspiration from men clothing and she strived for the same thing they did. Chanel's goal was to make clothing for women comfortable while stilling being fashionable, she freed women from corsets and heavy dressed and invented the loose-fitting little black dress (Spivack, The History of the Flapper, Part 5: Who Was Behind the Fashion?) .
Coles has a total more than 2,300 stores and reaches out to customers as a part of its marketing mix distribution strategy. There is strive to build a better store network and has an objective to target supermarket net space growth of 2-3% per year. In 2015 Coles opened a new state-of-the-art Coles supermarket which offers the latest supermarket features. The supermarket has an open market-style fresh produce section and an in-store bakery, butcher and deli. Coles opened 20 new supermarkets in 2015.
What is Henri Bendel? Henri Bendel is an upscale New York-based specialty shop that sells luxury handbags, jewelry, cosmetics, fragrances, fashion accessories and gift items. The store was established in 1895, and is named after its founder who first brought the designs of Coco Chanel to the US from Paris. The company is currently owned by Limited Brands, which is the parent company of Victoria’s Secret and Bath & Body Works.
Christian Dior and Chanel were one of the most famous fashionista during 1950s. As they were very famous, they gave a vast effect on the fashion history. Coco Chanel, started working again at the
Coco Chanel Intro Gabrielle Bonheur Chanel known as Coco Chanel is a famous fashion designer who foundered her own company at the age of 27 in 1910. She died in 1971 but her company is still one of the leading high end fashion labels in the world. It is very prestigious and her name will continue to go down in history.
Question I took a trip of I-Star which is a departmental store. It comprises of different sections which includes eatables, beverages and cosmetics. Its way of marketing is very attractive. Different sections are highlighted through relevant posters and background pictures. All sections in this departmental store are designed in way that they attract every new comer to it but cosmetics section is designed in a way that it is prominent and visible from every side.
For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.
This particular powerhouse of luxury operates around 3385 stores crosswise over North America, Europe and Asia which incorporates Japan and China as well. However, Europe has 33% of its stores, Asia is Louis Vuitton 's single biggest market that
5, the phenomenally successful perfume she introduced in 1922 with the help of Ernest Beaux, one of the most talented perfume creators in France” (“Coco Chanel In Full Gabrielle Bonheur Chanel” 1). Coco Chanel seemed to always find success in regardless of what she was doing, and Chanel No. 5 was just one example. This was also a turning point for Chanel, because she could now finance her own business, without the help of wealthy men. The people of the time took to her designs and “She [… became] a pioneering French couturier whose modern philosophy, menswear- inspired fashion and pursuit of expensive simplicity made her arguably the most important figure in the history of 20th- century fashion design” (“Gabrielle Chanel Born In Paris France” 3).
In order to discuss the current life cycle stage of Chanel N '5, we now look on the Product life cycle (PLC) theory, which is a concept that provides the steps for a product acceptance, from its birth stage of introduction, growth, maturity to its decline. (3) Chanel No.5 perfume series fall in the growth stage of the product life cycle, where they face more competitors. (3)
After his time at Chloé, Lagerfeld career began to pick up speed. He began to work for the fashions house Fendi where he designed furs, accessories, and clothing lines. He soon began working with the fashion house of Chanel in 1983. Then in 1984, he created his own line known as “KARL LAGERFELD”. He now resides as creative director for both fashion houses and his own personal line.
a. L’Oreal Paris symbolizes a luxurious and aspirational beauty conscious customer. The brand ambassadors for the same have been people renowned for their beauty conscious self. The noun ‘Paris’ in the name brings in the fact that the product has an apparent elegance that the ‘fashion capital’ of the world possesses. The value for this line of products would cater to a customer who seeks an apparent elegance in their commodity of interest. For the niche customer of a L’Oreal Paris product, price would come secondary to the quality and status symbol it would attribute.
These elements have helped Chanel to maintain their position in the luxury market. For example, Chanel’s jewelry is made from diamonds and white gold of 18 carat. Its bags are high class, fashionable and ready-to-wear. Its makeup line and fragrances are only sold in the most elegant and luxurious stores around the world. Chanel will never look as something cheap that anyone could wear, this makes the brand much more