Company Profile
Marketing communication is an important element for a company as it helps to communicate the information of products and service of the brand through different mediums. With the changing business environment and context, the companies have evolved with innovative and creative marketing strategies in order to develop long term relationship with the customers and instill loyalty within them. The elite brands use brand ambassadors to associate their products with a figure who is appreciated and admired by the target audience. Digital marketing is another evolved marketing strategy that is being extensively deployed by the companies. Social media marketing, email marketing, search engine marketing and mobile marketing are some of the techniques of digital marketing. Social media marketing is used by the companies to connect with the consumers directly through different approaches.
Chanel is a French company that offers highly fashionable products and accessories to the elite class consumers (Chanel, 2017). The brand specializes in haute couture, luxurious products and accessories and luxurious clothing. The brand offers elegant and simple products to the customers and was able to replace over designed accessories item with its elite design dresses, blouses, suits, trousers and jewelry (Chanel, 2017). The brand is personified by fashion models and actresses. The core products of the brand are little black dress, perfume No. de Chanel and Chanel suit. The target audience of the brand is elite and high class people who are not price sensitive and buy the product because they want to maintain their status in the society.
Integrated marketing plan aims to develop long term relationship with the customers by instilling trust, affection and loyalty within them towards the brand (Yeshin, 2012). Public relations is one of the strategies that elite brands use to connect to their customers and position their brands in the market. An integrated marketing plan blends all the concepts of marketing including advertising, sales promotion, public relations, direct marketing and social media marketing. The report would prepare an integrated plan for Chanel brand to market its one of the product through a marketing strategy and build long term relationship with the customers. The product considered for integrated marketing plan is Coco Chanel that is a forward-looking brand that targets classy and free spirited members of upper class market segment.
Market segmentation is the process of dividing the complete target market into smaller segments based on people’s demography, geography, psychology and behavior (Egan, 2007). This helps to gain an understanding of the different segments of the market based on their interests, needs, desire, paying capacity and their lifestyle. After evaluating the attributes of different market segment, one or two potential target market is selected based on the pricing and positioning strategy of the brand.
Integrated Marketing Plan
Demographic segmentation is done on the basis of age, religion, gender, income, ethnicity, race, family size and education of the consumers (Shimp, 2008). The target market of Chanel includes customers who have adequate money to spend on luxury items before they start their family. Thus, the target audience includes the women between the age group of 25-40. The target audience has good amount of disposable income to spend on their lifestyle.
The other market segment could be young people who are below the age of 25 and belong to the upper class segment and have proclivity towards branded products to maintain their status. Another market segment of Chanel is men of upper class segment who are inclined towards the luxurious products.
Geographical segmentation is based on the location of the customers. It is because the customers of different country tend to have different taste of products and fashion (Percy, 2008). The most selling market of Chanel is Europe because of awareness of the brand across the continent and inclination of the people towards luxurious brands. The product would be made available in the European region in the beginning and then would be taken across the sea after it receives a great response. The potential market for the product is USA, Australia, South East Asia and the developing economies could also be targeted. The product would be made available through the exclusive stores of Chanel outlets.
Psychographic segmentation is done on the basis of lifestyle and attributes of the customers (Egan, 2007). The customers show their loyalty to a brand when they have had a unique experience with the brand and are able to connect with the brand. The customers of Chanel are very loyal and can afford high prices products. Thus, the customers must have a very high and luxurious lifestyle and must not be price sensitive so that they are ready to pay the premium price for the product.
The customers of Chanel are generally loyal and purchase the product instantly because of their high paying capacity. The customers are influenced by the outstanding services and products of the company and tend to develop a long term relationship with the brand. Thus, they stay loyal to the brand so that they can associate themselves with a luxurious brand and can uplift their status.
Targeting strategy is a marketing concept used by businesses to sell their products or services to the target audience (McDonald, 2007). There are several market segments for any firm in the market, but the firm selects one or few market segments as per the product specification and the attributes and behavior of the market segments (Lamb, Hair & McDaniel, 2008). Chanel has identified the niche market segment of upper class segment for its luxurious products. The upper market segment can afford the expensive and premium range products of Chanel and are thus, not price sensitive. They buy these luxurious products in order to maintain their status in the society by associating themselves with premium brands. Further, they have also attuned themselves with a particular lifestyle and try to maintain it by using premium brands.
Market Segmentation
Since Chanel is a luxurious brand, therefore it offers premium brand to the customers. Another aspect that needs to be considered is the brand positioning in the minds of the customers of Chanel is that of a premium brand. Thus, Chanel needs to consider this before identifying the target market of the product Coco Chanel. The target market must belong to upper class segment so that they are able to afford the product.
Chanel Coco Mademoiselle Eau De Parfum Spray has been designed as an elegant luxurious spray that has a sexy and fresh oriental fragrance. The sexy fragrance of perfume has been bottled inside a sleek bottle and can be used for dressing table and can be used by the consumer during travelling. The flavors available are bergamot, orange, rose, white musk, vanilla, patchouli, jasmine and vetiver.
The product has been especially created for the younger target audience, who is free minded and has a proclivity towards luxurious brands (Tatcheva, 2014). The flavor of the perfume has been selected in a way that would be adored by the young generation. Further the sleek design of the bottle would enable them to carry the bottle anywhere. Thus, the identified target segment is young audience who belongs to the upper class segment and is not price sensitive.
Positioning strategy helps a brand to differentiate its products from the competitors and influencing the minds of consumers (Lamb, Hair & McDaniel, 2008). The strategy is widely used to create an identity of the product in the minds of consumers. Positioning strategy helps to establish a unique image of the product or brand in the minds of customers through which they are able to associate the brand with something specific that attracts their attention (Lamb, Hair & McDaniel, 2008). Chanel brand has positioned itself as a luxurious brand that offers its products to the elite class consumers. Now care must be taken while positioning the Coco Chanel product in the market and should be positioned as an elite product to maintain its existing image in the market. Chanel has personified its products through actresses and model so that the customers are able to connect themselves with the brand. Kristen Stewart is an actress who is admired by the young generation because of her iconic image in the market. She would be able to create a unique impression in the minds of consumers and the target audience would be easily associate the product with the actress. Another unique feature of brand is that it has a great command over its content through which it has been able to influence its customers. Chanel provides deep insight of its brand and products to stimulate the consumers to buy their products. The consumers can easily read about the history of brand and get an access to some interesting information. Similarly Coco Chanel would also be marketed in the same manner and the customers would be given an option to gain an access to the inside story of Coco Chanel. Thus, the strategy would aim to educate the customers about the artistic life of Coco Chanel and its brand values.
Demographic
Creative strategy aims to target the identified market segment through a unique marketing strategy (Ang, 2014). A creative strategy is created after identifying the needs and requirements of the customers and gain an insight of customer’s buying behavior (Sokolowski, 2013). With the changing business context, the companies have evolved with new marketing concepts that excite the customers and propel them towards the brand.
Every customer tries to associate himself/herself with something elite to maintain the status within society and become a recognized iconic figure. The upper class consumers do this by using the most elite brands in order to maintain their social status. Thus, the consumers of Chanel brand are always looking more from the brand. In order to satisfy this market segment, a creative strategy needs to be prepared to attract the audience towards the brand. Storytelling is one of the strategies and has been constantly used by the brand to stimulate interest among the consumers (Busetto, 2017). ‘Inside Chanel’ is the creative strategy that would compel the consumers to get connected with the company.
A brand adopts various communication tools to reach the potential customers. Media acts as an medium through which the information about the product or service is communicated to the customers in a convincing and attractive manner (Egan, 2007).
With the changing business environment and context, many forms of media have evolved including digital marketing, though traditional means of marketing always facilitates to reach the potential customer. Public relations is one of the most effective method of influencing the minds of consumers. Storytelling strategy would be used to develop a strong bond with the customers and instill loyalty within them. Since around 30% of the users use internet, therefore, digital marketing would be emphasized (Internet World Stats, 2017).
The story would be published in the newspaper in order to reach a large number of people. The story would aim to educate about the Coco Chanel brand so that they can connect with the consumers.
Internet is the most widely used technology and would be used to reach a large number of people. The story would be published on the website so that almost any consumer living in any part of the globe can access it.
Digital medium has become one of the most profound media that helps to connect with the customers directly (Ryan, 2014). Most of the young audience uses facebook, twitter, Instagram and many other social networks to stay connected to their friends, families and colleagues. Now the story could be published on these social media networks to increase its visibility and attract the attention of the user.
Geographic
The story would be first published through newspaper and then the complete story would be made access through the website of the company. Now in order to promote the story, social media marketing would be used so that a large number of youngsters could gain an insight of the brand’s story (Zarrella, 2009).
A budget would have to be formed for the creation of the story that would involve a creative team, designers, story writer and marketing team. A huge cost would be incurred in story development and its script preparation.
In order to evaluate the marketing plan, following steps could be considered:
- Track Sales: The sales would be analyzed in order to measure the success of the plan. If the estimated figures have been achieved and the sale is growing then the plan has been successful, otherwise it needs attention (Blakeman, 2014).
- Customer Feedback
Feedbacks from the customers would be taken in order to consider their opinions about the product and their experience with the sales (East at al, 2016). This would help in next marketing plan development.
- Analyze the competitor
The competitors tend to imitate a successful project. Thus, in order to measure the success of the plan, the competitors steps could be analyzed. If they are adopting the same model then the plan is successful.
Conclusion
The report has successfully created a marketing plan for the brand Chanel Coco. The product has been developed for the young audience who is independent and free minded. The brand targets the elite class who are conscious of the brand they use to maintain their social status in the society. The target audience would belong to the age group of 18-24. The targeting strategy has been clearly defined in the report by identifying the young target audience. The positioning strategy has also been strategically developed by maintaining the brand value of Chanel. Story telling was the suggested creative strategy for the product as it excites the customers and propels them towards the brand. Social media marketing was identified as an approach to target the audience.
References
Ang, L. (2014). Integrated Marketing Communications: A focus on new technologies and advanced theories. Melbourne: Cambridge University Press.
Blakeman, R. (2014). Integrated Marketing Communication: Creative Strategy from Idea to Implementation. US: Rowman & Littlefield.
Busetto, S. (2017). Storytelling in Luxury branding: Inside Chanel. Retrieveddd from: https://www.arsenalecreativo.com/storytelling-brand-strategy-inside-chanel/
Chanel. (2017). About Us. Retrieved from: https://www.chanel.com/en_AU/fragrance-beauty/c/mothers-day.html
East, R., Singh, J., Wright, M., & Vanhuele, M. (2016). Consumer Behaviour: Applications in Marketing. California: SAGE.
Egan, J. (2007). Marketing Communication. UK: Cengage Learning EMEA.
Fashion BI. (2014). The Key Elements of Chanel’s Luxury Marketing. Retrieved from: https://fashionbi.com/insights/marketing-analysis/the-key-elements-of-chanel-s-luxury-marketing
Internet World Stats. (2017). INTERNET USAGE STATISTICS: The Internet Big Picture. Internet World Stats. Available at: https://www.internetworldstats.com/stats.htm [Accessed Online 25 March 2017].
Lamb, C.W., Hair, J.F., & McDaniel, C. (2008). Essential of Marketing. Cengage Learning.
McDonald, M. (2007). Marketing Plans: How to Prepare Them, how to Use Them. US: Butterworth-Heinemann.
News Cred. (2014). How Chanel Wins Social With Stylish Content Marketing and Storytelling. Retrieved from: https://insights.newscred.com/chanel-social-media-content-marketing/
Percy, L. (2008). Strategic Integrated Marketing Communication: Theory and Practice. US: Routledge.
Ryan, D. (2014). Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation. London: Kogan Page Publishers.
Shimp, T.A. (2008). Advertising Promotion and Other Aspects of Integrated Marketing Communications. US: Cengage Learning.
Sokolowski, O. (2013). Influences and Attitudes Within Consumer Behaviour Process. Germany: GRIN Verlag.
Tatcheva, A. (2014). Is Coco Chanel Enough?. Retrieved from: https://www.theydontloveyou.com/coco-chanel-enough/
Yeshin, T. (2012). Integrated Marketing Communications. US: Routledge.
Zarrella, D. (2009). The Social Media Marketing. Canada: O’Reilly Media, Inc.
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