CH 7- Purchasing Roles

Business Marketing- is the marketing of goods and services to individuals and organizations for purposes other than personal consumption.
However, Chanel is for personal consumption therefore Chanel is is not a business market but a consumer market.  But the basic philosophy and practice of marketing are the same whether the customer is a business organization or a consumer.

For example the buying behavior is quite similar.I will use my visit to the boutique to explain the roles.

Purchasing Roles:
1.) Initator: the person who first suggests making a purchase. ( that would be me- Stef)
2.) Influencers/evaluators: people who influence the buying decision  (celebrities)
 

3.) Gatekeeper: group members who regulate the flow of information (Public Relations- they maintain a public image)
4.) Decider: the person who has the formal or informal power to choose or approve the selection of the supplier or brand. ( Stef- I have the control of choosing to buy)
5.) Purchaser: the person who actually negotiates the purchase. ( In a consumer market there is no negotiation regarding price, the purchaser would be the initator or it can be the decider, whoever has the money).
6.) Users: members of the organization who will actually use the product.  ( Me & Mom)

Wk 4 cont.- Chanel Mobile Art at the Arab World Institute

Karl Lagerfeld donated the mobile art to the Arab World Institute (AWI) in Paris, which was created by Zaha Hadid. The mobile structure weighs 80 tons, 45 meters in length and 700 meter square of floor space.

Metropolitan Museum of Art 2011 Costume Institute Benefit

Blake Lively wore a tulle embroidered Chanel Haute Couture dress from the 2009/10 Fall-Winter Collection

Freida Pinto wore a white silk Chanel Haute Couture dress from the 2010 Spring-Summer Collection.

Janelle Monae wore a white and black Chanel Haute Couture outfit from the 2010 Spring-Summer Collection

Kirsten Dunst wore an embroidered Chanel Haute Couture dress from the 2009/10 Fall-Winter Collection

CH 18 cont.- JLO @ Macy's

Jennifer Lopez was seen at the Macy’s Fashion Night Out event wearing Chanel Les Khaki’s Nail Color collection in Khaki Brun. The polishes are $25 each.

CH 8- Keeping up with the Target Market

Not only are consumers keeping up with technology but also fashion companies as well. The latest Chanel Fashion application is found on iTunes App Store. The application features the video and looks of the Fall-Winter 2011/12 Ready-to-Wear show, all Chanel News articles and contact information for Chanel boutiques and it is available in French, English and Chinese language.

Chanel's target market would be females of:
Generation Y or millennial generation)- 1979-1994- (32-17)
Generation X- 1965-1978   (46-33)
Baby Boomers- 1946-1964 (65-47)

The positioning that Chanel wants to protray through the perception from the target market is a unique palate of females who give value and meaning to classical and beauty products.
Also to change the usage rate from the middle users to strong and heavy users.

The customer profile are those who identify themselves with the Chanel brand, have a strong personality and like to buy luxury products. These females are also elegant, fashionable, and who like to take risks.

CH 2 cont.- Karl Lagerfeld Inspiration for the Spring/Summer 2011 campaign

Karl Lagerfeld inspiration came from the artist Pierre Bonnard who is known for his vibrant and luminous colors and his perception of life in interior and exterior settings.
Karl Lagerfeld uses Bonnard techniques by putting the models in a bold environment, in which black and white enchances the appearance of color and to capture the essence of nature with a splash of color.

Painting by Pierre Bonnard, La terrasse à Vernonnet (1939)

CH 2 cont.- Fall-Winter 2011/12 Ready-to-Wear

2011 Oscars Night in Los Angeles

Michelle Willams in Spring-Summer 2011 Haute Couture, make-up by Chanel

CH 2 cont.- Ines De La Fressange- Spring/Summer 2011 Campaign

Not only has Ines De La Fressange walk the runway for Chanel Spring/Summer 2011 fashion show, she also is in the campaign as well.

CH 3 cont.- Ines De La Fressange Ends 20-Year Feud With Karl Lagerfeld

I got a email from my professor regarding Karl Lagerfeld and Ines De La Fressange settled their 20 year feud (thanks prof). I didn't know who was Ines, but I did my research and found out she was a model and the face of Chanel  in the 80s. Karl Lagerfeld cast the 53-year old Ines De La Fressange on Tuesday in Paris for the spring/summer 2011 fashion show. Lagerfeld describes Ines as " beyond stunning".

I found a youtube video on Ines promoting the Coco fragnance. I wanted to add this video because just few days ago the new commercial with Keira released and it was very interesting to see how the Chanel commercial was back then from how it modernize today.

      

CH 17 cont. Coco Mademoiselle Keira Knightley

I saw the commercial last night for Chanel's fragnance Coco Mademoiselle.

CH 11- New Product Item: Sublimage La Creme

New Product= a product new to the world, the market, the producer, the seller or some combination of these.
Chanel's new product would be Sublimage La Creme, and it will fall under the category of additions to existing product line because the product line would be Sublimage skincare, and the product items would be  essential regenerating eye cream, essential revitalizing concentrate, essential regenerating cream-texture universelle, essential regenerating fluid, and most recently the la creme texture supreme.

Below is a description the company saids about Sublimage La Creme:

"La Creme unlocks the key to a woman's beauty and self-confidence with a single key ingredient, Vanilla Planifolia, a rare botanical found in the farthest reaches of Madagascar. The ultimate skincare indulgence, La Creme creates a glowing, luminous and even-toned complexion. Facial contours become visibly firmer and signs of aging seem to disappear. A delicate, refined fragrance and sumptuously rich feel enhances the experience".

 

Just reading the description do you actually think this product works? By the way did you ever heard of Vanilla Planifolia. The company saids it is found in Madagascar, I never knew Madagascar actually exists, I thought it was a made up place the Lions came up with for the disney movie.

La Creme is priced for $390. ( i know right, I guess I'll have to stick with my drug store creme)

 

Below I have a you tube video about sublimage eye cream review. ALthough it is not a review about new creme, it is amazing how a review about one of the product that falls into the same product line can influence your perception on the entire skincare line. The video is about 15mintues long, but the first 7 mintues convince me what I already knew that this cream may not have the desired effects it says it will achieved. But at the end he says some good things about the product ( let's be for real no one really wants to talk bad about Chanel).  The guy in the video can be called a innovator. 

Innovators= are the first 2.5% of all those who adopt the product, innovators are eager to try new ideas and products.

 

 

 

 

CH 16- Blake Lively Chanel Mademoiselle 2011 Campaign

Chanel extensively uses advertising to inform, persuade and remind customers of the superior quality of their handbags. Advertising itself is only one aspect of the promotional mix.
Promotional Mix- is the combination of promotional tools including advertising, public relations, personal selling and sales promotion used to reach the target market and fulfill the organizations overall goals.(mktg)

The new face of Chanel is Blake Lively, who many know her from the hit show "Gossip Girl". Blake Lively or commonly refer as Serena Van Der Woodsen is one of the main characters in Gossip Girl who is very fashionable on the show and comes from a family with class and luxury. The target market for this specific ad would be woman and teenagers from Generation Y. I think it is a great strategic plan to choose Blake Lively because lots of her fans look up to her and teenagers are inspire by her taste in fashion. Blake Lively can have a major impact on her fans and possible influence them of getting their first mademoiselle Chanel handbag.   

CH 10 cont.= Sigrid Agren For Rouge Coco Shine Chanel S/S 11

Product Line Extension= occurs when a company's management decides to add products to an existing product line in order to compete more broadly in the industry.

Chanel's existing product line would be lipstick and the product line extension do this particular category would be Coco Shine.

                   

CH 10- Chanel Product Concepts

Chanel can be defined as a consumer product more specifically a specialty product.

Consumer Product= a product bought to satisfy an individualds personal wants.
Specialty Products= a particular item that consumers search extensively for and are very reluctant to accept substitues.

Chanel sells a variety of items such as watches, handbags, fragnances, makeup, jewels, eyewear, clothing, sport, and much more.

Fragnances                            Watches            Eye Wear                                    Lipstick

N’5                                                       J 12 Marine                      Sunglasses                  Rouge Coco Hydrating Creme Lip Colour

Chance                                                  J 12 GMT                         Optical                      Rouge Allure laque Luminous Satin Lip lacquer              

Chance Eau Fraiche                         J 12 Superleggera                                                    Rouge Allure Luminous Satin Lip Colour

Chnace Eau Tendre                          J 12 Calibre 3125                                                   Rouge Double intensite ultrawear lip colour      

Allure                                                J 12 retrograde mysterieuse                                    Aqualumiere Sheer Colour Lipshine SPF 15

Coco                                                   J 12 haute joaillerie                        

Coco Mademoiselle                         J 12 Joaillerie

N’19                                                     Premiere

Cristalle Eau Verte                             Camelia

Bleu de Chanel                                  Mademoiselle

Allure Homme                                        1932

Allure Homme Sport                          Matelassee

Allure Homme Edition Blanche                Chocolat

I made a short chart above to show Chanel's product lines and product mix. Of course there is much more items but I just got lazy and didn't want to add any more.
A product item is a specific version of a product that can be designated as a distinct offering among an organziations product. For example; n'5 is a product item.
A product line is a group of closely related product items. For example, Fragnance is a product line.
The product mix is all the products that Chanel sells. Therefore it will be everything it my chart above plus much more I didn't add.
Now a product mix width would be the number of product lines an organization offers, so watches, fragnances, eyewear,  and lipstick would be the product mix width. At last the product line depth is the number of product items in a product line. So, Chanel Watches product line has 13 product items.

I hope I didn't confuse you with all these definitions, but it is a marketing class and there is alot of definitions.

 

( source: MKTG)

CH 18- Sales

Chanel does not use sales promotion, the company does use advertising to expose the brand.
Sales Promotion= is short term incentive  that motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price or by adding value. (MKTG)

Chanel is a high end luxury brand that does not give coupons, rebates, or premiums. However you can find sample testers of Chanel fragnances at Macys.

Sampling= a promotional program that allows the consumer the opportunity to try a product or service for free

What I like about Macys is that you don't really have to buy the fragnance just spray the samples all over you and walk out. (yes i did this) The good thing about Chanel fragnance is it last long, so when people are familiar with this unique scent they think you actually bought it. And when the scent is gone, go back to Macys and do it all over again ( maybe this time move on to a different fragance).

CH 17- Advertising and PR- Chanel new Ad

Every season, Chanel provides a new campaign. The company promotes international through ads in magazines, on the web, commercials and the media. In fact my professor email me the new Chanel ad with Keira Knightley (thanks professor).

Chanel is one of those high end brands that don't need to try as hard in advertising because of the exposure it gets from Hollywood and woman just want something from Chanel because of the history behind it. Coco Chanel was the first to break out of the corsets and make suits and the "little black dress". Also her fragnance Chanel No. 5  is sold every 30 seconds and sales generates of $100 million dollars a year reported by the French government.

CH 15- Retailing- My visit to the Chanel boutique

I went to the Chanel store on Saturday, unfortunately there were no other consumers there just me and my mom. There was two salespeople and the security guard (he was hot!). I felt a little akward and uncomfortable because the salepeople just stare at us didn't approach us or even greeted us. Anyways I saw these cute black long boots, checked under the heel and it said $3,016. In my mind I am thinking OMG ! Then I went to check the handbags out, well let's just say Keep on dreaming. Afterthat me and my mom walked out sadly, but the security guard winked at me and then I ate icecream and went back on the train.

CH 6- Consumer Decision Making- Chanel's influence

Chanel has a sustainable competitive advantage. There ad campaigns not only influence consumers but also the media. Celebrities are a main part of the company sales. Kim Kardashian, Blake Lively, Paris Hilton, and much others are infactuated by Chanel. They expose the brand to the public when the parapazzi has a snapshot of them shopping at Chanel or even caught wearing the company's products. Some people look up to these celebrities, and want to be just like them this also persuades consumers in their decision. Other consumers look at the quality, texture, and even appearance of what there are purchasing. Buying a Chanel item you know you will be a satisify consumer with there products because of the elegance and sophiscation protray in these  handbags.                                                                                                              

Week 4 contin. - Chanel Handbag Made from Paperbag w/ Sharpie

I wanted to share this picture because I thought it was funny that the young man is making fun of those people who won't accept anything less than a Chanel handbag. I think it is good press for the company because the person is promoting the brand, although maybe not it a postive way, it can possible result in exposure to new consumers.

CH 5- Global Vision- Chanel Worldwide

Chanel stores can be found in six regions, Asia, Europe, Middle East, North American, Oceania and South America. The company has over 200 boutiques world wide. Chanel is also available at airports.
(Suvannabhumi Airport, Bangkok)

I think it is a great idea to have Chanel items be available at airports because it is convient for the last minute shoppers and passengers. Majority of Chanel sales are from international resources. I think it is  great idea to have Chanel available almost everywhere, it is a great strategic plan because it promotes the brand to all diverse cultures of people and it exposes the people to fashion.

Week 4: The Marketing Environment- Chanel cuts down

    Chanel has been deeply effected by the economic crisis.The company had a upcoming new project to tour their global art installation to 86 cities around the world throughout 2010. However they had to cancel the operation because the company could not afford it. A Chanel spokeswoman told WWD "Considering the current economic crisis, we decided it was best to stop the project, We will be concentrating on strategic growth investments." (http://sheerevents.blogspot.com). I think it is a good idea for Chanel to postpone the project because it would be a waste to put so much effort into it during a recession where no funds would not come in because consumers are affected by the economy.
   Chanel also cut 200 jobs because sales have decline. Commentators described the job losses as the "label’s worst crisis since founder Coco Chanel fired all her staff at the outbreak of war in 1939"(http://jcrewaholics.com/behind-the-scenes/jcrew-chanel-both-affected-by-this-economy/).
 Many high brands are affected by the reccession, however I am confident that Chanel will recover because it is one of those brand that a woman can't resist. The celebrities especially are satisify with Chanel and continue buying the company's handbags, although the economy has no or little effect on them. 

  

Week 3: Ethics & Social Responsibility- Crystal Renn Chanel Ad

    Chanel experienced controversy over the campaign with plus size model Crystal Renn. Critics question Karl Lagerfeld for shooting Crystal Renn from the neck up, cropping the rest of her body out of the photograph. As a result Karl Lagerfeld reply "Chanel is not ready to use plus sized women in their campaigns."  But on the other hand; Crystal Renn was delighted that she got the the booking she says "working with Chanel has been my dream forever”.
      I believe that Karl Lagerfeld didn't intent to cropped Renn out because he knew she was a plus size model from the beginning and he booked her, I think he had a vision of the look he was going for this particular ad and Crystal Renn capture that essence of what he wanted.  





source:http://style.popcrunch.com/crystal-renn-chanel-ad/

Week 2: Strategic Planning: Spring 2011 Campaign

As Spring is approaching, Karl Lagerfeld shows his first look at the 2011 campaign with a punk rock style. This campaign is way different than the usual Chanel ad. I think it is a great idea for Lagerfeld to change it up becuase it invites a new audience of woman whose style is more edgey. What makes Chanel a desirable brand is its quality and diverse style. The advantage of this company is it doesn't have to try so hard to make customers want to buy there item. Some customers are influenced by the media, almost every female celebrity owns a Chanel bag such as Paris Hilton, Victoria Beckham and the Olsen twins. Others just want to own something from Chanel because of its elegnance and quality. 





(Baptiste Giabiconi, Freja Beha Erichsen, Stella Tennant)

Week 1: The Mission Statement

The "classic" Chanel handbag is not any ordinary bag, it captures a woman feminity and independence. Chanel strives to maintain there high status brand and they love to challenge the company to modernize and recreate a handbag that is unique and sosphicated. The strength of Chanel is there consumers because it consists of a wide range of diverse people such as celebrities and even a New Yorker on the street. There motive is to preserve the quality and the elegnance of the brand.

Week 1: The Story Behind Chanel

Gabrielle Chanel is one of the most influential designer, her designs haven't changed much but her dominating palette today inspires and captivates the fashion trend for the 20th century.
Gabrielle career didn't start out as a designer, she was a concert singer in 1905 and became known as "Coco" becuase she was always singing "Ko Ko Ri Ko" and "Qui qua vu Coco". The starting point of her career was with her relationship with Arthur Capel who encourage her to open her first hat boutique, fashion boutique and fashion house.  In 1922, Coco created her first signature perfume called "Chanel No. 5", in fact her fragnace today is still one of the most profitable item. In 1925, Coco designed her first cardigan jacket and the "little black dress" in 1926. However, Chanel's business in Paris was on hold for a few years because she served as a nurse in World War one. But in 1954, Coco Chanel came back with a more casual type of clothing such as the pea jackets, suits,bell bottom pants and the classic purse. In 1971, Coco Chanel past away and the chief designer Karl Lagerfeld is now the person behind it all who is recapturing Coco Chanel vision of design.

source: http://womenshistory.about.com/od/chanelcoco/a/coco_chanel.htm