Subject: Media Planning and Strategy

Roll Nos. Name Roll Nos. Name

18-M-533 Priya Vhangade 18-M-423 Vijay Jha
18-M-404 Blessy Babychan 18-M-424 Vishal Kadam
18-M-429 Lavisha Kitawat 18-M-440 Sumit Naik
Contents
Introduction, Brand Identity and Product offerings
Global Presence and Financials
Marketing & Sales Strategy
Competitors
Chanel Brand Strategy / Positioning
4 Ways Chanel Uses Word of Mouth
Chanel Advertising Campaign
Mergers and acquisitions
SWOT Analysis
 INTRODUCTION
“Fashion is made to become unfashionable”. Gabrielle “Coco” Bonheur Chanel(19 August 1883-10 January 1971) was a French fashion
designer and founder of the Chanel brand.

She was the only fashion designer to appear on Time magazine’s list of the 100 most influential people of the 20th Century. Even after her
death in 1971,she lives on as an icon to many in the fashion industry today.
 BRAND ESTABLISHMENT
-1910:Chanel opened her first boutique called Chanel Modes in Paris and sold
hats.
-Chanel kept clothes simple and comfortable by taking common fabrics and
upgrading them.
-In 1913.Coco Chanel designs were an invention of a whole new style for
outdoor living.
-In 1916 she adopted another innovation :jersey, the material usually
associated with men’s undergarments.
-In 1923 the timeless perfume No.5 was launched
-In 1924 the “La Societe des Perfums Chanel” was established to manufacture
and sell perfumes and beauty products.
-Chanel also introduced a customer jewellery product line. Chanel later
introduced her women’s sportswear line.
-Chanel helped change women’s relationship with their bodies as well their
way of life.
BRAND IDENTITY FRAMEWORK
PRODUCTS
Global Presence
Stores:

• Worldwide, Chanel S.A. operates around 310 Chanel boutiques; 94 in

Asia, 70 in Europe, 10 in the Middle East, 128 in North America, 1 in
Central America, 2 in South America, and 6 in Oceania.
• The shops are located in wealthy communities, usually in department
stores like Harrods and Selfridges, high streets, shopping districts, and
inside airports
• In October 2020, the company bought its flagship Bond
Street boutique in London for £310 million
Chanel Models
Channel has 50 plus models
across world eg. US &France-
Lily Rose, China- Song Qian, UK -
Naiomi Campbell, Italy-Marco-
Castelli,Russia-Natasha Poly,
Germany -Antonia Pettyfer
Financials
Financials
Key 2019 Financial Information:

• 2019 results show strong growth, confirming the strength of the CHANEL Brand and the
company’s commitment to sustainable, long-term value creation
• Revenues of $12.273 billion, up 13.0% compared to 2018 on a comparable basis at
constant currency
• Operating profit of $3,496 million, up 16.6% compared to 2018
• Positive net cash balance at the end of the year, confirming CHANEL’s financial strength
• Investment of $1,770 million in brand support activities to deliver the strategy focused
on creation and innovation
• Capital expenditures reached $771 million, representing 6.3% of sales
• Free cash flow of $2,245 million in 2019, up 84.9% compared
Financial
COVID-19 AND CURRENT TRADING
• Significant impact of COVID-19 after a strong start to the year; the temporary
closure of boutiques in all regions will reduce revenue and earnings for the full
year 2020
• Priority given to supporting our people and our business partners, and to
protecting our suppliers during this time
• Decision taken not to utilize government employment support during the
lockdown
• Measures taken to preserve CHANEL cash flow, strong balance sheet and
desirability as a global brand
• Currently reopening boutiques on a country-by-country basis, in accordance with
government guidance; encouraging initial customer response to reopened
boutiques in Asia.
Marketing & Sales Strategy
Competition
Chanel Brand Strategy / Positioning

Apparel – luxury
apparel, jewelry &
watches
A French haute
FMCG Personal French, luxurious,
couture brand Highest quality,
care & beauty – refined, feminine,
representing heritage, freedom,
fragrances, make- timeless,
Chanel S.A. timeless independence.
up, face pioneering.
modernity.
care, body care
Retail – fashion
store, e-retail
 Building a Legacy: Chanel’s Luxury Marketing
Strategy
Chanel is credited with product innovations that deeply affect modern life and fashion
to this day:

•Popularizing wearing black for occasions other than funerals

•Removing the corset from western women’s attire - Just a hundred years ago, women would suffocate
themselves to cinch their waists
•Using jersey fabric for comfortable clothes - Often considered her single biggest innovation, Chanel brought
jersey fabric from men’s athletic wear to modern high fashion
•Invention of the hands-free bag

Balanced exposure and scarcity marketing strategy of Chanel

Values-based marketing strategy of Chanel through content

Marketing the most for its stars – the BCG Matrix

Innovation in technology for its more ‘mass’ products – Chanel recently launched a free
virtual lipscanner app. The app lets you choose a colour from your surrounding, find a
match from the Chanel catalogue and try it on virtually
How Chanel Created Brand Value
• Integrated Marketing Communication, is where all forms of
promotional tools are integrated to work together in harmony.
It is advertising and ways of communicating with the
consumer.
• Been ranked the 7th most valuable luxury brand by the
Millward Brown ranking published in 2014
• Chanel is still one of the most successful standalone brands,
raking in a revenue of €10 billion in 2019 and armed with the
largest social media presence for any luxury brand.
• Chanel followed an ambitious and meticulously planned
content strategy that outpaced its rival
• Crafting a luxury video strategy
• Multi-platform and multi-purpose content
• Differentiated content and promotion
• Blogs
• E-mail Marketing
• Social share
4 Ways Chanel Uses Word of Mouth: To Remain
a Powerhouse
1) Challenge the status quo: design products that are not afraid to defy
social norms - Create products that challenge the norm
2) Established brand’s high-end reputation with premium
pricing, exclusivity and celebrity endorsement - Nurture a reputation
that encapsulates the brand’s ethos
3) Great content marketing – Iconography and heritage as an integral part
of branding - A strong image will expand the brand’s influence and reach
4) Aesthetics over everything: creating visual spectacles to be talked
about - Chanel has also earned a reputation for its theatrical and over-
the-top runway shows
• Create exciting visual spectacles to flex brand’s aesthetic prowess
• This forward-thinking and innovation has helped Chanel rise to become a
fashion powerhouse worth an estimated $19 billion today
Chanel Advertising Campaign
• Print Media
• TV advertisement
• Focus on Internet Advertisement
• Online shopping

Digital marketing strategy

Inside Chanel’s digital
strategy

• Differentiation in luxury
Included a partnership with
Farfetch, in which it took a minority
stake in 2018, to develop digital
initiatives to improve customer
experiences in stores; a pop-up
shop for fine jewelry line Coco
Crush on Net-a-Porter in 2015
• Fine lines between on and
offline
Chanel - digital distribution must
necessarily damage brand equity
Losses in pandemic because of their strategy of less focus
on digital advertising and online sales
• Assessing Chanel in the pandemic
Chanel was second only to Dior as the most
viewed brand on Vogue Runway between January
and September 2020. The brand had a 30 per
cent reduction in the number of unique views (in
line with the Index average of 29 per cent). But
Dior was down only 16 per cent and close
competitors Gucci and Louis Vuitton held steady.
No doubt Chanel might have sold more fashion
during the pandemic if it had taken the e-
commerce route. Analysts point to how Louis
Vuitton, the world’s largest luxury brand,
generated an estimated 12 per cent of sales
online in 2020, up from 6 per cent in 2019.
Target Market of Chanel

Balancers
1. Lifestyle and Values
2. Attitude to Shopping and Advertising
3. Some facts about Balancers

Interesting facts
1. Chanel No. 5 is the best-selling perfume of all time
2. Suit for women was invented by Coco Chanel.
3. The price of Chanel 2.55 bag increases each year.
4. Chanel used to be a cabaret singer.
Channel Acquisitions & Mergers
• Chanel Acquires Orlebar Brown which is British swim and resort-wear
brand
• Chanel acquires luxury shoemaker Ballin
• Has a minority stake in Italian leather goods makers Renato Corti and
Mabi, and French clothing manufacturer Grandis
SWOT ANALYSIS

STRENGTH :-
• Brand Value: Its brand value is currently valued at $7.2 billion. Well known brand
• Revenue: High Revenue
• Style: It is known for its comfortable and functional clothes with the perfect style
• Pioneer in factory made clothes and has stylish clothes

Weakness
• Stiff competition from other premium brands
• Despite good brand visibility, brand switching is high
SWOT ANALYSIS
Opportunities
• E-commerce: Online sale and E-marketing gaining a lot of importance can be
tapped by Chanel
• Emerging Markets: Emerging markets and various expansions and acquisitions
abroad
• New Acquisitions: Chanel can look forward towards new mergers and acquisitions

Threats
• Competition: Huge competition exists in this category
• Counterfeits: Luxury brands get copied a lot
• Copying: There are many brands that copy the style and elegance of Chanel
Thanks!