Chanel Brand Analysis

CHANEL OVERVIEW

Chanel is one of the most luxurious designer brand in the world, which was founded in 1909 by Coco Chanel in France. The full name of the brand is 'The house of Chanel', but it is more commonly called Chanel. It was founded by Gabrielle Chanel. Chanel has a very good fashion designer Karl Lagerferld as its head designer and also creative director which is why Chanel is amongst top leading designer brand. Chanel is a premium French fashion brand which does not compromise on quality of products to cut down the prices of products, a very good history of brand is the biggest strength for the functioning of the brand. Therefore, the products of Chanel be it designer ready to wear clothes, watches, perfumes are set to target the upper class section of high profile society or high earning families. Chanel brand's main product categories are perfumes, designer clothing, jeweler, accessories. Chanel is more commonly used by ladies because of its exquisite products such as perfumes and handbags for ladies ( Herlihy, J 2005),.

Here in this report we will discuss the category of cosmetics of Chanel brand and a sub category of perfume, ie No 5 perfume manufactured by Chanel. We will discuss the concept of consumer personality and self-concept used by Chanel for the marketing of their cosmetic products such as perfumes.

MARKETING STRATEGY OF CHANEL

Consumer personality and self-concept

Consumer personality is the characteristic of an individual about what he thinks about his surrounding environment and how he responds to it (Loudon and Bitta 2002). So, Chanel uses this concept of marketing very cleverly to market its perfumes in the market. As Chanel is a luxurious brand and therefore the customers of the brand are very rich (higher class customers). So, we have seen that the perfumes of Chanel are very expensive. Freudian theory of personality states that the human drives are very unconscious in nature and they can also motivate many consumer actions. One action among these actions can be the motivation of a consumer to buy luxurious perfume. For example: In a corporate office an employee of the office is very much influenced by his boss, influenced by the dressing style of his boss and he also thinks or tries to dress like him. One day the fragrance of the perfume his boss is wearing seems very attractive to him that he is not able to resist himself from asking his boss that which perfume he is wearing. Finally, he makes courage and asks his boss that, sir which perfume you are wearing? His boss feels very good that his employee is appreciating his clothing style and the boss very confidently tells him that he is wearing Chanel No5 perfume. Here we see that the employee is influenced and also motivated to buy Chanel No5 perfume, At this Chanel uses the results of Freudian theory, that people get motivated by other people to use or buy the product which others are buying. But, the problem arises for that worker who is willing to buy Chanel no5 perfume that the bigger sized bottle of the perfume is very expensive. Even here Chanel catches the consumer's decision making policy and therefore Chanel has also manufactured small and less expensive packaging (bottles of perfume) that can be in reach of middle class customer. Also, Chanel comes up with new offers or other convenient offers for middle class customer’s offers like duo set bath gel of No5 series Chanel No5 30ml perfume at lower price.