The business mission statement of the company
Chanel is "To be the Ultimate House of Luxury, defining style and
creating desire, now and forever." The mission of Chanel's
"look" has always portrayed an image of elegance, grace and style
from the beginning of the brand up until to modern times. The visionary of the
company is for fashion to be functional. The
mission of the Chanel Company and Chanel retail stores is designed to ensure
the defining style of its founding designer Coco Chanel far into the future.
SWOT Analysis
Strengths: Chanel is the market leaders in
this segment. Chanel us highly established brand worldwide since many years and
strong brand equity and loyalty. They have about 1300 employees. Chanel S.A.
operates some 310 Chanel boutiques; 90+ shops in Asia, 70+ shops in
Europe, 128 shops in North America, 2 shops in South America, and shops
in Oceania & Middle East. Classic and timeless designs are a major part of
their collection.
Weaknesses: Stiff
competition from other premium brands means market share is limited. Despite
good brand visibility, brand switching is high.
Threats: Competitors in the same business providing
similar kind of clothes and accessories. Economic slowdown and downturn also
has an effect on production. Counterfeits and price wars are also a viable
threat. Other company has cheaper and lower brands trying to copy their
timeless styles and selling at many affordable rates.
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Competitive Advantage
To stay competitive, it is often harder for established brands to
reinvent while they remain true to the vision. As Chanel peers down the barrel
it’s not all boom and bust. Chanel has
the opportunity to potentially use their longevity for a new advantage. However, in order
to increase market share, emphasis on mass media and e-commerce would be
effective which the competitors are already practicing. Chanel has a fashion show four times a year
to show each season's newest looks. Chanel’s
competitive advantage lies in promotion, quality, and benefits of use and
design features. Also, Chanel sells their cosmetic and skin care
line separately in stores from the ready to wear clothing and accessories,
and each consultant working in a Chanel boutique has had previous training
in Paris to
learn the history of the brand.
In 1922 Chanel introduced a perfume, Chanel No. 5, which quickly became
popular, and remains a profitable product of the Chanel organization. In
addition, to supplying Chanel provide their design services and handmade goods
to other design firm and wealthy individuals. Recognized for its elegant style
and superior quality, Chanel has been insuring the reputation of its noteworthy
name through its Parrafection division. The artisans division consists of gold
and silversmith Robert Goossens (which create Coco Chanel’s popular
Byzantine-style crosses), milliner A. Michel, button maker Desrues, fabric
flower artisan Maison Guillet, ornamental feather designer Lemorie, embroiderer
Lesage, and shoemaker Massaro.
Target Market
The target of Chanel, the French fashion and Fragrance Company, is youth
and women.
Product:
Chanel's two brands of
fragrance, the Coco Mademoiselle and Chanel N°5-, are the number one and number
three brand in the U.S.
respectively. Sales of Chanel's skincare
products were down in the specialty stores but doing well in department stores.
Place:
Luxury brand Chanel established
base of wealthy customer sand growing popularity in China ,
Russia , and Japan
and other emerging markets.
Promotion:
The company Chanel invests a lot in promotion through different channels.
It implements a series of advertisements on TV, magazines and posters. Many
famous people advertises product Chanel such as perfume, clothes and so on.
Price:
Chanel’s product prices reflect the opulent image of Chanel. And because
Chanel finds discussion of costs “crude”, high-end prices of products are not
avalible upon requests by calls or inshop.
Effective strategic planning
To prepare for an even brighter future ahead, Chanel can consider
investing into emerging market by opening more stores abroad and tapping onto
media marketing. Chanel’s success is truly a result of the house’s decision to
remain true to Chanel always desiring to be a style, for “Fashion fades, but style
remains’.
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