香奈儿5号的营销策略.ppt

Chanel No.5,Introduction to Chanel No.5,Created by Ernest Beaux the product was first launched in 1921and was only avaliable in Chanel boutiqies.Expresses liberated spirit of 1920s In 1924 the perfume introduced to the world market beginning from the USA.The next target was Europe. During the World War II the sales increased tenfold as a result of genius marketing strategy.Pocket flacons were sold on military PXs. In 1950s ad campaign with participation of Merlyn Monroe called great success. During 1980s allure of the product tended to disappear.Brand name was re-vitalized. Ad campaign with” Share The Fantasy slogan was held. In the 1990s, more money was reportedly spent advertising Chanel No. 5 than was spent for the promotion of any other fragrance brand,Marketing Process,Understanding Marketplace,Needs-love and belonging,self esteem Wants-Brand Marketing-creating desire for things that no one really needs and charge premium price for them. Offerings-product+emotional experince which is hard to be delivered by compatible products Value and satisfaction-the company sets high level of expectation as of representing scarcity and luxury and satisfies this expectation. As a result company have good number of loyal customers.,Designing strategy,The company successfully employs Marketing Concept: Learning demand- Legendary designer of brand-Gabrielle Coco Chanel was a learning innovator.For Chanel 5 -she spotted gap in perfume industry. Two perfume types were available by that time-perfume for sexy women , perfume for classy women. Chanel No.5 merges these qualities and reflects liberal spirit of 1920s.In addition by the time perfume was launched only floral based perfumes were popular but Coco changed this trendI want artificial flowers smell natural on women, not natural flowers smell artificial. Distinctive ad campaigns-mini-film formatted ads with participation of celebrities Attempts to build profitable relationship with right customers by delivering satisfaction,Marketing Mix,Product- Fashion and Clothing, Fine Jewellery, Watches and Accessories,Perfumes and Cosmetics Place-South America, North America,Asia,Europe,Africa,Australia Price 300$-8000$ Promotion-Fashion Shows, celebrities,launching events,TV,magazines(Elle,Vogue), exhibition(mobile art,little black jacket) Public Relations-special events,blogs,forum,website,media relations Publicity-celebrities,cartoons(The Simpsons),movies(Womenhistory),books(Shophacolic,Undomestic Goddess Sophie Cinsella) Advertising-mini film formatted ads with celebrity participation,printed ad(magazines),Chanel-Building Customer Relationships,Like many other luxury brands Chanel invest attention to customer relationships For high-margin customers attempts to create “membership ”atmosphere. Parties like the Chanel Dinner are held in an attempt to endorse “Chanel Club ”image by participation of celebrities like movie stars or top models. For its low-margin mass market users creates innovative ads with celebrity endorsements-the only company that designs ads in mini film format. Chanels target is women who dream to become famous or to live that sort of exciting story with a beautiful young man. Cinema with famous people represents the dream world for young generation and compatible with characteristics of target customer group. Exclusive Invitations-private sales, boutique openings,Chanel No.5-Value capturing tool,Chanel changes its historical attitude which represented scarcity and luxury and aims to reach younger customer group by its youth strategy which was first commenced in 1999. Treats perfume & cosmetics product line as a way of introducing youth to Chanel family and targets getting potential customer lifetime value by gaining more customer equity. Chanel No.5 is crucial as its bestseller for decades but need some contemporary appeal Re-formulation- despite the fact that denied by Chanel for its possible effect on loyal customers Celebrity participated ads as of to attract more youth attention Customer loyalty groups-true friends and butterflies,Chanel in Digital Era,Re-designed websiteIn France has received the top honors in a study by Keynote Systems that lauds the fashion label for its simple, sleek site that showed its design elegance while remaining completely available to customers. Mobile applications-available for purchase on itunes. These applications can be uploaded to the iphone or to ipods. Expanding presence in social networks. On Facebook alone there are also over 500 groups that are based upon Chanel.Users are treated as a part of brand and their vision for company are evaluated. Fan-first marketing-Coco Shine lipstick was first sold through Facebook before its introduced to market.Experiences of users then shared on fan page. Viral marketing-2012 Brad Chanel campaign wasnt consistent with previous ads for the for the same product. Criticized parodied and became popular on social media .Chanel did it intentionally in order to become “talkable”,Marketing Strategy,Company Profile,Chanel expresses its mission as-To be the Ultimate House of Luxury, defining style and creating desire, now and forever. The objective of company is consisted of paths lead to aforementioned mission. In order to be style defining they should invest on R&D and it should be financed through retained earnings.Creating desire require learning underlying customer need. To retain sustainability company should make profits. Making profit require to keep costs on reasonable level.But reducing costs too much may result in poor quality which is contradicts with being luxury. So all these choices set objectives which lead through company mission.,B.P Analysis-BCG Matrix,Chanels Business Portfolio is consisted of fashion & clothing, watches & accessories, cosmetics and perfumery. Each of them constitutes different SBUs. 5.We will also Chanel No.5 as distinct SBU. The fragrance and beauty business alone has been estimated to turn over more than $1 billion a year, powered by the worlds first and most famous modern fragrance, Chanel No.5.As a Rule perfume industry represent cash Cow for most luxury brands. So Chanel No.5 Eu De perfume spray will be placed in Cash Cow Section.,Product Market Expansion Grid,Established product within the market already. Certain promotional tools are used to re-enforce brand and product awareness Market Penetration Strategy. Offering product in different sizes-For normal users bottle ranges 1,2-3,4 ounce (74-130$).For more affluent users Grand Extrait was released in limited number(2100-4200$) Special offers-Duo set-bath gel of No.5 series +Chanel No.5 30 ml perfume at lower price. Effective distribution- available more than 100 countries over the world,the use of online shopping options effectively -Sephora.com,Ebay,Chanel.com,Chanel Boutigie.com etc. note that due to strong brand image Chanel can distribute limited retailers. Updating image of -2005 Chanel ad starred by Nicole Kidman was an attempt to re-position product in US market to younger generation. Most modern consumers associated the fragrance with the romantic lifestyle of mid-century France. In an effort to stay relevant and up-to-date, avoiding the classic undertones, the commercial is set in NYC instead of Paris, and all dialogue is in English Innovative ad campaign-Brad Pitt starring Chanel No.5 ad in 2012 First time a male was spokesman for Chanel perfume Reemphasizing legendary and timeless image of product-2012 two videos was launched in Inside Chanel.com.The first one was about innovative characteristics of product. The second one was revealing the voice recording and photos which contained materials about Merlyn Monroe s confess her actually using of Chanel No5.In this way they merged timeless image of Merlyn and Chanel No5.,SWOT Analysis,Strength Production Quality) Leading Brand Distribution Channels Loyal Customers High R&D Strong brand equity Opportunities Economic welfare improvement New distribution channels and online shopping New untouched markets and segments Increased interest in luxury goods formulation,Weaknesses Availability of similar products Lower price by competitors Possible out-of fashion perception Threats Chanel counterfeits especially in Asia Competition&lower cost specially The risk of banning ingredients and re-formulation,Marketing Environment,Microenvironment,The Company-strong organizational culture, flexibility and non-bureaucratic approach help departments to work efficiently; Suppliers-heavily depends on Amazonian resources for ingredients of product and cooperates local suppliers especially from Brazil. Marketing Intermediaries-. Sells selectively to number of retailers worldwide, including among others Harrods,Jenners,The Boots and The Perfume Shop.The company has stores in more than 100 countries of the world and plenty of online retailers. Competitors-Loreal,Dior,Guerlain Publics- Media publics- Regular merchandise demonstrations for publishing new products invite media to report. This kind of meetings can also function as a means of building relationship with media; Local publics-the locals of Brazil accuse company for enormous margin between their wages and price of products consisted of materials they assemble. General public being luxury,trust in quality.extravagant, overpriced, exploiting third world suppliers, and wasteful Customers- consumer and international markets,Macroenvironment,Political- Consumer protecting laws-EU require to re-formulate Chanel No.5 and Miss Dior for the reason of containing allergic ingredients; Piracy regulation laws-preventing fake products especially in Asia Technological-the product was first containing synthetic chemicals. Due to the increased concern for the environmentally safe products during the 1990s technological improvements centered on “reformulating products to move away from synthetic chemicals and to rely on natural products. Natural-sustainable packaging, protecting green resources of Amazon,banning of civet and musk etc; Economic-globalization and entering into markets like Asia and Latin America. Carefully spending pattern caused decrease only 0,7% growth between 2007-2010. Social-sustainable packaging,recuparetion waste packages Demographic-change in family structure makes more funds available for “nuclear families and it leads to more spending on luxury products. With the education level rising young generation has more opportunity to spend on this type of product. Cultural-in modern world boosts self-indulgent of people and luxury brands offer different tools for this,Consumer Buyer Behaviour,Chanel No.5-Customers are affected,Cultural factors Culture-Hollywood culture helps to boost the popularity of the products of luxury brands. In addition movie stars like Nicole Kidman, Audrey Tatou,Brad Pitt took part in ad campaigns. Social class-appeals to upper and middle class. Social factors Membership groups- If one hang around a social group of well off upper class individuals, by wearing Chanel No.5 she is identifying herself as part of a social group that she wishs to belong Reference group- Celebrities, older generation Roles and status-belonging high social class,young,elegant educated women,Chanel No.5-Customers are affected(cont),Personal factors Age and life-cycle-single women under the age of 30 Socioeconomic status-wealthy or young professional women Lifestyle-Classic but adventurous at the same time Personality-sophisticated-upper class and charming Psychological factors Motivation-love and belonging,social and self-esteem status Perception-subliminal messages in movies, books,tv shows etc. Learning-providing high quality reinforces repurchases Beliefs-Chanel No.5 was favorite of grandmas.2005 ad campaign changed that belief Attitude-expensive but provied high quality,Chanel No5.-Buying Behaviour,Two distinct types of Buying Behavior; Habitual Buying Behavior-the perfume has long history so large loyal customer basis for whom its always the first choice .In addition its legendary perfume of Chanel and perhaps among the first choices of Chanel loyal customers for perfume. Complex Buying Behavior-not yet loyal young customer group .Perfume represents personality to some extent and choice require high involvement. Chanel is trying to get retention from these consumers by ad campaigns,Chanel No.5-Decision process,Need recognition-external stimuli Information search-personal,public,commercial,experiential; Evaluation of alternatives-lasting longer,high quality,brand image,stylish,famous; Purchase decision-poor service by salespeople,inconvenient store location, discounted similar products; Post-purchase Behaviour-satisfaction level,Chanel No.5 from a New Product Perspective,Consumer group in respect to innovativeness-early and late adopters Product characteristics in respect to rate of adoption; Relative Advantage- not floral based, longer lasting as synthetic ingredients were used; Divisibility-as product appeals high and middle income class and price is quite affordable for them Communicability-after launching the product for long years no active ad campaign was held but anyway product sales was high as result of word-of mouth influence,Creating Value For Target Customers,Segmentation,Demographic Segmentation Age and life-cycle-18-30 years old, working singles or young men; Gender-woman; Income-high disposable income to buy high brands Psychographic Segmentation Lifestyle-classic but yet adventurous; Personality-charming and elegant;,Segmentation(cont.),Behavioral segmentation Occasion Segmentation-men buying perfume as a gift; User status-ex-users ,potential users, and regular users; Loyalty status-highly and potentially loyal customers Lady G-use normal perfume daily but Chanel No5 on occasions Business market segmentation Sector-right place to sell is cosmetics shop; Profitability-the main partners- Boots and The Perfume Shop rules 33% and 20% od market respectively; Organizational size-Boots has 168 stores across the UK,Segmentation(cont.),Effective Segmentation Dimensions,Measurable-information about age,gender and social class is highly attainable; Accessible-it is again easy to target the chosen segments as they are all exposed to different but specific mediums; Substantial- high price and large market share; Differentiable-men and women respondi differently,socioeconomic groups have different disposable income; Actionable-there are multiple marketing tools than can be used to reach the chosen segments, but there are not too many segments to make this unattainable.,Targeting,Characteristics of Market Segment High current market share; High possible growth rate; Profitability through new segments(potential users etc.,) Primary target-18-30 years old,single women; Secondary target-young men buying perfume as a gift on occasion; Targeting strategy-differentiated marketing strategy as