0 Participants: ★ Wei Miao ★ Manyu Wu ★ Yuanyuan Sun ★ Aashish Bhagavatula ★ Joseph Kim May 4, 2011 BRAND STUDIED: BUS 371 MARKETING PLAN.

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Participants:

★ Wei Miao

★ Manyu Wu

★ Yuanyuan Sun

★ Aashish Bhagavatula

★ Joseph Kim

May 4, 2011

BRAND STUDIED:BUS 371

MARKETING PLAN

CHANEL

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Situation analysis of external factors

Social

Economic

Technological

Competitive

Regulatory

TRENDS IDENTIFIED

•A Wider gap of wealth•B Personalized demand for luxury•C More people prefer online shopping•A Rich’s luxury spending increase(2011)•B Other consumers concerned about jobs and• income due to the recession in 2008

•A Better mechanized technology, less reliance on • crafters•B Better online shopping experience•C Better security for online shopping due to PayPal

•A Higher expectation to luxury from the customers•B LVMH expands its varieties of products quickly•C Participation of new brands

•A Luxury tax increase

ENVIRONMENTAL FORCE

OPPOR-TUNITY

YYN

Y

N

Y

N

NY

N

N

N

THREAT

NYY

N

Y

N

YY

NYY

Y

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Situation analysis of competitors

★ Total Market estimate: $ 1.2 Billion

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Situation analysis of competitors

LV

Hermes

Gucci

★ High quality leather products

★ Has its own store

★ High quality leather products

★ Has its own store

★ High quality leather products

★ Has its own store

SIMILARITIES DIFFERENCES

★ Appeals to the businessman and woman’s need for luxury especially regarding suitcases and other travel goods.

★ Lowest Price

★ Has the reputation of the highest quality

★ Hard to find in the U.S. for consumers if not in large cities

★ Most expensive items of all

★ Relatively low promotion, makes sales more on reputation

★ Adding a children’s line

★ More favorable view among wealthy women

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Customer analysis and target market

• Primary target market ★ Demographics: Upper class, Urban area

★ Other: classic style; black and white color; fashion

• Needs that our brand is fulfilling ★ A: basic demand of handbag and wallet with good quality

★ B: show good taste of fashion

★ C: show high social class

• Our brand is different for this group because unique history and top designer from Coco Chanel to Karl Largerfeld

• Sources of influence on the consumer purchase decision ★ Marketing mix influences

★ Psychological influences

★ Sociocultural influences

★ Situational influences

Customer analysis and target market

★ Sources of influence on the consumer purchase decision

★ Psychological influences

Personality: a person’s consistent behaviors and personal taste.

personality characteristics = self-concept / self -image

★ Psychological influences Lifestyle: An attitude is build by a person’s core value as well

as belief and shapes a person’s lifestyle.

is a kind of lifestyle !!!

Lifestyle can be depends on income and self-confidence, etc

Customer analysis and target market

★ Situational influences ★ The purchase task: depends on social visibility or for own use.

★ Social surrounding: purchase decision may be influenced by

other peoples.

★ Physical surroundings: Location, indoor environment,

Decorator Pattern

★ Antecedent states: Paying by credit cards or cash can

influence purchase behavior and choice.

Customer analysis and target market

Customer analysis and target market

★ Sociaculture Influences ★ Personal Influence a. Opinion Leadership: Spokesperson – Blake Lively b. Word of month: conversation / online

★ Reference Group a. Membership group: A group of membership must have some same habits or attitudes.

b. Aspiration group: Support their idols or wish to be a member of group.

c. Dissociative group: Wish to maintain a distance from the differences in values or behaviors

Customer analysis and target market

★ Sociaculture influences

★ Social class People share similar values, interests and behavior in the same social class.

★ Culture and Subculture ★ make up a person’s buying behaviors. ★ different values, ideas, brief and attitudes. ★ Asian’s buying behavior .

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Brand positioning and differentiation

★ Perceptual map

High craft Technique /QualityHigh craft Technique /Quality

Low Price Low Price High Price High Price

Low craft Technique /QualityLow craft Technique /Quality

LV

Gucci

Chanel

Hermes

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Brand positioning and differentiation

Chanel has a unique Brand identity that takes advantage of the enigmatic personality of the firm’s founder, the famous Coco Chanel. She has added significant value to the company since its founding by captivating the fashion world with her unique and elegant designs, such as the “little black dress” which is a must have in any women’s closet. Although she has since passed away her legacy lives on in new Chanel designs that appeal to high income women who demand luxury goods. The new chief designer Karl Lagerfeld has also added to the brand’s value by creating unique designs that have also since captivated the fashion world with his attention to elegance that would make Coco Chanel herself proud.

To a target group of : - Women from different ages with wealth - who needs classic and elegant style products

Brand Chanel offers: - Different luxury products with high quality and good taste The reason why is: - Unique history and design - Current world-famous designer Karl Lagerfeld - Top luxury manufacture Tech. in the world. Thus, brand Chanel is unique  - Design, history and luxury manufacture Tech. 

Flap Bag

Market-Product Focus

Large Shopping Bag

Clutch

Bowling bag

Drawstring bag

Market-Product Focus

Financial Report

Marketing program: 4 Ps - Product

• Main products

★ Bag

★ Belt

★ Wallet

Marketing program: 4 Ps - Product

★ Overall benefits versus competition

Focus on Women Leather products of Channel ---

HANDBAG

For Example: THE FLAP BAGS OF CHANEL

1. Soft LeatherThe materials they used are more soft than most of the products of Hermes, which brings the soft tactility to consumers.

Marketing program: 4 Ps - Product

★ Overall benefits versus competition

2. Unique bag strap One obvious character of the Flap bags is that The strap is combined the metal chain and leather together, which makes the bag strap more gorgeous, durable and flexible.

3. Ingenious buttonThe ingenious design for the button is a special point, which can guarantee the safety of bag and highlight the logo of Chanel.

★ Compare overall image Compare images with some classic handbags of Hermes,

Chanel, LV and Gucci

Marketing program: 4 Ps - Product

Mighty feeling with the harder lines

More suit for a successful career woman

Fashionable & Elegant

It’s suitable for party or gorgeous occasions

Leisurely & Casual

Be more suitable for daily activities

Marketing program: 4 Ps - Product

★ Consistency with positioning statement

According to the positioning statement : It aimed a target group of women from different ages with wealth, who needs classic and elegant style products. Brand Chanel offers different luxury products with high quality and good taste.

– hole in the product offer (Compare Hermes, Chanel, LV & Gucci )

★ Complete kinds

★ Various categories handbags with all sizes

★ Almost no hole in the product

★ Hole--the soft leather used in products is easy to be worn.

Marketing program: 4 Ps - Product

★ hole in the product offer versus the brand positioning statement

Product

Fashionable

Young women Elderly women

lack ofsuit for

Marketing program: 4 Ps - Price

★ Prices versus competition

Use the similar design of handbag to compare the prices of the four brands.

★ Price of Clutch

Marketing program: 4 Ps - Price

Marketing program: 4 Ps - Price

★ Consistency with positioning statement

According to the positioning statement of Chanel, the price of it is consistent with its positioning.

Medium

Expensive

Less expensive

LV & Gucci

Chanel

Hermes

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Marketing program: 4 Ps - Place

★ Three types of retailers where your brand is making most sales

★ Place versus competition Place can be bought: Off-line own brand store VS. Department store

★The greatest difference among Chanel and competitors Launched on-line store: skincare, makeup, fragrance items Not launched on-line store: Leather goods => Handbag/purse

★ Shopping experience ★ boutiques all over the US, but limited location.

★ For example: Chanel store in Michigan Ave

eleven employees assistant Selected based on gender, age, and cultural interested IF - Target: young women age from 20 to 32?

Promotional activity 1:

Who (is the target audience)

Females - interested in fashion,

- fashionistar”

What (are the promotion’s) objectives

-very dark on sides,

-white on center with the logo

What (are the) kinds of promotion used

- Public Relation

Where (is the promotion run)

Paris Fashion Week Fall/Winter 2011/2012

at the Grand Palais in Paris

When (is the promotion run)

Paris fashion week - 10thof March

Marketing program: 4 Ps - Promotion

• Promotional activity 2 : direct email

Women -different ages(20-49) with wealth

Keep their focus on Chanel as person to person

Advertisement, - put Ad. on direct email

- sale

Special items – new arrivals – limited items

-offer new arrivals on both on-line, and off-line

- inform the selective customers before posts

★ List of all the promotional elements in the USA Public relation, Advertising, and Direct marketing.

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Marketing program: 4 Ps - Promotion

★ Advertising

★ What form of ad is it Competitive (of persuasive) Ad.

★ Who is its target audience 23~49(young to mid-aged) year old selective women a rich father /a rich husband - love luxury and enjoyable lifestyle.

★ What is the message content content of Chanel: “elegant, fashionable, but not necessarily follow all the trends”,

more focused on - young to mid-aged women, not old women.

★ On which media does it appear Media - luxurious magazines: Vogue, GQ, and Esquire.

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Estimated P&L

P&L expressed as % of Sales

Net Sales 100

COGS (Including Labor)18

Gross Margin 82

Marketing 15

Sales 10

Contribution Margin 57

Comments

All figures are based on estimates gathered from information on total market size and share

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Thank you!

BUS 371

MARKETING PLAN