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.