Marketing and Branding Coco Chanel

1.0 IntroductionThe survival of loadeds in the global merchandise is related to their authority to identify spots that put up respond to consumers needs. In this context, a successful put up is able to secure organisational growth even in periods of strong mart turbulences (Doyle, 2009). However, the popularity of a place in markets worldwide is non guaranteed for example, it is possible for a vane to face low popularity in a market even if in close to markets the response of consumers to the particular flaw is impressive (Doyle, 2009). In separate words, certain particularors such as culture and social ethics can affect the operation of brands in the international market (Davis, 2010). This study focuses on the performance of a well-known brand coconut Chanel. The special brand appe ard in earlyish 1900s and was ab initio related to clothing accessories, such as hats (Siddiqui, 2014). Through the years the brand incorporated clothes and jewellery, becoming a symbol of proud quality and funny style (Siddiqui, 2014). The characteristics of the particular brand and its performance, as part of the path industry, are analysed below. Emphasis is given to the brands environment but overly to the strategies through which the brand has secured its market position. It is revealed that the brands success resulted from the combination of a series of strategic approaches. The economic and social conditions in markets worldwide during the 20th carbon had also a key role in the brands rapid expansion internationally. Under these terms, the brand has contributed in the increase of attractiveness of the fashion industry and the transformation of lavishness convergences to elements of daily life style.2.0 coco palm Chanel as a brand 2.1 Overview of coco ChanelIn order to identify the performance of the brand as part of the fashion industry it is necessary to refer primarily to the brands history, i.e. to the events that stir led to the establishment of the brand and the strategies on which the caution of the brand has been based through the decades. coconut tree Chanel is a brand closely related to the life of its author Gabrielle Chanel has been the child of a poor family in her early years Gabrielle had to face the death of her m other(a), an event that led Gabrielle to work as a singer in a cabaret in Paris (Siddiqui, 2014). There, Gabrielle, having give-up the ghost known with the make out Coco, met her setoff husband who assisted her in opening in 1909 a shop that specialised in hats (Siddiqui, 2014). In a fewer years, after the end of the World War 1, Coco Channel entered the fashion industry by developing clothes of high quality. These clothes were characterised by straightforward lines and persistence in colour black and white were extensively used creating a rum identity for the particular brand (Siddiqui, 2014). Through the years, the brand was expand incorporated jewellery and inwardnesss, such as the Chan el No5, the brands more or less successful product ever (Siddiqui, 2014). The success of the brand has been related to the ability of Coco Channel to pay attention to the needs of people and to understand the changes in social and cultural trends, as positive globally (Graj, 2013). In any case, the brand has been characterised by its strong dependency on the personal views and beliefs of Coco Chanel, a accompaniment which is make clear through the brands logotype the initials of Coco Chanel have been combined for creating a logo that gives the sense of a signature of its creator (Figure 1, Appendices).2.2 Key competitors of Coco ChanelAs already noted, Coco Chanel is whiz of the most powerful competitors in the global fashion industry. The brand is part of the luxury fashion sector, a sector which is characterized by the dominance of 10 brands. Different views have been developed in date to the position of these brands in the relevant hierarchy. In the table included in Figure 2 (Appendices) two of these views are presented the number 1 view refers to 12 dominant brands of the specific sector while the second view focuses on 10 of these brands as the most powerful ones. Particular furiousness should be made to the spare-time activity fact the first inclination of an orbit, the one included 12 brands refers only to the luxury clothing sector while the second list presents the give 10 fashion brands worldwide. From this view, the brand under examination would be considered as more relevant to the first list. However, the second list is important for thought the competitive environment in the fashion industry in general. In addition, the two lists reveal an important fact Chanel has managed to secure an important position not only as a fashion brand but also as a luxury clothing brand, being categorized at the twenty-five percent and the fifth position accordingly (Figure 2, Appendices). The lists presented in Figure 2 also reveal the significant pow er of certain brands that are included in both(prenominal) lists brands such as Louis Vuitton, Prada, Dior and Gucci seem to be the most critical competitors for Coco Chanel since they have managed to be popular both as fashion brands and as luxury clothing brands (Figure 2, Appendices). According to a report published by the Luxury Institute Chanel is one of the top luxury brands worldwide. In fact, in the survey developed by the above Institute most participants seemed to prefer Chanel in the particular survey Louis Vuitton ranked second while Prada ranked third (Carr, 2012).2.3 Brand performance2.3.1 apply trade mix (4ps)The performance of the brand in its industry could be made clear after reviewing the key elements of the market outline employed for the progress of the particular brand. In practice, emphasis is given to four of these elements, which as also known as 4Ps (Burrow, 2008). The particular elements constitute a quite known good example, the marketing mix (Burr ow, 2008). The 4Ps included in the marketing mix refer to specific aspects of a marketing strategy. At the first level, reference is made to Product. The term Product, as part of the marketing mix, reflects not only an object, as a materialised element, but also the various characteristics of the object/ product, such as value, packaging methods and materials and brand name (Lamb and McDaniel, 2011 47). Place is the second element of marketing mix the specific term denotes the geographical area in which the product is available or in which the product is planned to entry (Lamb and McDaniel, 2011). The term Place also reflects the means used by a firm for distributing its products internationally or locally (Fifield, 2008). The success of a product in a particular market is depended on the Promotion strategy used, i.e. on the means and the approaches employed for making the stone pit consumers aware of the specific product (Satit et al., 2012). Finally, the Price of a product has to be decided taking into precondition various factors, such as the GDP in the designate market, the markets demographic characteristics/ average income and the status of the local economy (Lee, Cheng and Chen, 2008). If the marketing mix used in regard to a product is not suitably planned, then target consumers would not be expect to buy the product. The relationship between the marketing mix and the consumer preferences is presented in Figure 3 (Appendices). On the other hand, marketing mix should be structured in such way so that it can respond to actual consumer needs, as these needs are reflected in the 4Cs framework the relationship between the two frameworks is presented in Figure 4 (Appendices).The issues highlighted above should be used when describing the marketing mix of Coco Channel. At the first level, in terms of its Product, the particular brand is characterised by exceptional quality (Ma, 2014). In fact, quality involves in all aspects of the brands product, meaning not only the materials of the products but also the materials used in the products packaging (Ma, 2014). For example, in the case of Chanel No.5 the uniqueness of the product was secured by employing an innovative name and by exploitation a unique synthesis of aromas (Sicard, 2013). Also, the specific brand is related to a country well known for the quality of its cosmetics and clothing France (Ma, 2014). The emfs of the brand to be grow worldwide have been limited because of the following need many of the brands products had to be supported by appropriate customer services schemes. Therefore, the merchandising points of the brands products are selected on the basis whether they can have a direct and close reference to France, as the source of these products (Ma, 2014). In regard to its Promotion strategy the specific brand can be characterised as unique common marketing options are combined with less popular marketing approaches for attracting the consumers come to. For exampl e, in its initial phase the marketing of Chanel No.5 has been based mostly on word of mouth marketing (Sicard, 2013 159). In addition, the advertisements related to the specific brand are likely to be included in media and press that are quite popular in the fashion industry, as for example Elite and Vogue (Ma, 2014 48). However, the high quality of the brands product has been secured by adopting high Prices, an approach which is considered as expected by which has set limits to the increase of the brands popularity (Ma, 2014).2.3.2 Segmentation, targeting and situation (STP)For ensuring the effectiveness of a marketing strategy used for promoting a brand marketers need to develop three, key, activities naval division, targeting and positioning (STP). As part of marketing, Segmentation reflects the ride of marketers to watershed a market into parts/ segments each of these segments would refer to consumers with common characteristics, such as age, marital status and so on (Cant e t al., 2009). By segmenting a market marketers are able to develop marketing strategies that would be welcomed by the target consumers (Cant et al., 2009). However, in order to respond to the expectations of marketers, segmentation needs to be following by targeting. In the context of marketing the term targeting is used for showing the identification of the market segments that will be addressed by a marketing strategy (Boone and Kurtz, 2013). For example, the decision to address only teenagers among the people living in the target market is an example of targeting. As for positioning, the specific term is used for showing the effort of marketers to place a product in the mind of consumers (Boone and Kurtz, 2013 98). Different approaches are likely to be used by marketers to grasp positioning, as this activity can secure consumer loyalty (Boone and Kurtz, 2013).In the case of Chanel, STP could be achieved by using various approaches. For example, in regard to the particular brand market segmentation could be based on the views of consumers in regard to luxury products. This means that global market would be divided into parts based on the expected perceptions of consumers on luxury products the evaluation of these perceptions could be based on luxury value as of its various dimensions (Figure 5, Appendices). The market segmentation for Coco Chanel could be also based, alternatively, on the frequency of use of luxury products (Ciornea, Pop and Bacila, 2012, Figure 6, Appendices). Targeting and positioning for the particular brand could be developed using similar criteria. More specifically, in regard to targeting the marketers of Coco Chanel should take into consideration the following fact due to the high prices of its products the particular brand could not target all social groups, as could be developed using targeting. For example, teenagers would not be an appropriate target group for the brands products. As of positioning also there are certain issues t hat should be addressed so far the brand has become synonym of quality also, since its appearance in the market the brand has been among the top brands in its industry. Therefore, the best approach for positioning this brand would emphasise on products class and on price/ quality (Boone and Kurtz, 2013 298).2.3.3 Brand caseWhen referring to brand illustration reference is made to the graphical elements used for presenting the brand to the worldly concern. For example, intensive colours could be used in a brands logo for attracting the attention of consumers (Shimp and Andrews, 2013). In addition, symbols that denote a particular characteristic of a brand could be employed for making the brand more attractive to the public (Kumar, 2009). In order for a brands illustration to be successful it should not follow common patterns, especially those related to the industry complex (Kumar, 2009). In any case, the logo of the brand has not necessarily to reflect the role of the brand in th e industry but it needs to offer a view on the brands culture, as this culture would show to the public the values and ethics on which the creation of the brand has been based. The logo of Coco Channel is based entirely on the name of its creator. The design and the elements of the specific logo aim to show the close relationship between the brand and its creators values simplicity is also another issue highlighted through the logo of the above brand (Figure 1, Appendices). From this point of view, it could be supported that the brand illustration used in the case of Coco Channel can be characterized as quite successful, promoting simplicity and showing the critical role of the brands creator in brands success.2.3.4 Detail evaluation, critical perspective SWOT analysisAs with most business strategies the effectiveness of a firms branding decisions is usually decided after checking the characteristics of the brand involved the performance of the brand in its market has also to be ta ken into consideration for deciding whether a brand has been successful or not (Davis, 2010). In the case of Coco Chanel the SWOT framework could be used for evaluating the brands performance. The Strengths of the particular brand are mostly related to its brand name and its relationship to quality (Carr, 2012). In fact, the specific brand has managed to establish a unique culture, a culture based on the spirit of its creator (Kapferer, 2008 252). In the context of this culture, high quality in clothing would be considered not as an exceptional condition but rather as part of daily life (Kapferer, 2008). The high expansion of the brand in the global market, as compared to other luxury brands, is another important strength of the brand (Carr, 2012). However, the brand has an important Weakness the price of its product is quite high, not allowing a high ploughshare of consumers to buy the brands products (Carr, 2012). On the other hand, the particular brand meets all the requirements of a luxury brand (Figure 7, Figure 8, Appendices). This means that the specific brand has important Opportunities for future growth. Still, there is the problem of continuous recession. Economic turbulences in the global market could result to the limitation of profitability of luxury brands, a fact that would be a severe Threat for the particular brand (JWT, 2009).2.4 Brand valueThe achievement of profit, at a pre-specified level, is the key target of a brand, at least for brands used in businesses (Larson, 2012). In this context, a business can significantly enhance its value using one or more brands (Larson, 2012). When having to number the value of the brand several issues can appear the exact profit achieved by using a brand cannot be measured since the gain from employing a brand can result either in the short term or the long term. Also, this gain may not be always fiscal the improvement of a firms image in the market is an example (Davis, 2010). Therefore, for measuring the value of Coco Chanel, as a brand, a intricate model would be employed the valuation framework used by BrandFinance, an organisation based in UK (Davis, 2010 44). The particular framework is based on the following method a firm estimates the level of the sales it should achieve in the future, for securing profit then a royalty rate is set for achieving the above target (Davis, 2010 44). This royalty rate can be used for estimating the current value of the brand, which is the actual brand value (Davis, 2010). The measurement of the brand value using the BrandFinance framework is made clear through the diagram in Figure 9 (Appendices).2.5 Importance of Coco Channel for the industrySince its introduction, the specific brand has achieved the following target it has made luxury products more attractive to consumers. More specifically, in the 1920s, when the brand first appeared, women had to face the severe consequences of the World War I widows were increased and the interest for hi gh quality clothing was quite low (Siddiqui, 2014). The appearance in the market of the products of the particular brand, such as the short black dress and the perfume Channel No.5 (Siddiqui, 2014), introduced a new era for the relationship between consumers and the fashion industry. Since then, fashion products and luxury products have become quite attractive as this fact has been reflected to the radical expansion of luxury brands worldwide (Figure 2, Appendices). In addition, the particular brand managed to cover the gap between fashion and the other industries. Indeed, up to the appearance of the brands products in the market the hierarchy of importance as of the industrial activities worldwide had a standard format manufacturing and transport industries were mostly valued, as of their potential to cover peoples needs (Kapferer, 2008). Since the introduction of the brands products in the market the perspectives for growth in regard to fashion and luxury products were made clear. Entrepreneurs worldwide were initiated to invest in the particular sectors, a fact that enhanced competition and kept quality standards high (Kapferer, 2008).3.0 ConclusionThe performance of Coco Chanel as a brand can be characterised as high. In fact, as proved through the analysis made above the particular brand is one of the most powerful in the global fashion industry. The position of the brand in the luxury sector is also significant, an achievement that denotes the brands potentials to achieve further growth. The establishment of a unique culture has been proved to be the approach through which the particular brand secured its success. Indeed, the creator of the brand, Coco Chanel, managed to convince the women in her era that style and quality should be parts of their life style. At the same time, through the particular brand the independency of style from complex forms was achieved sooner of emphasising on heavy and multi-coloured clothing Coco Chanel preferred to use simp le lines and just two colours white and black. This approach made the brand Coco Chanel to distinguish in consumers minds. A similar approach was followed in regard to the other products of the brand simplicity and innovation have been the key elements of the brands products up today. In this context, the success of the brand as revealed through the examination of all its aspects could be considered as expected. In the future, further growth could be achieved on the basis that brands culture would remain at the centre of the brands strategies.4.0 References Boone, L. and Kurtz, D. (2013) Contemporary market. Belmont Cengage Learning.Burrow, J. (2008) Marketing. Belmont Cengage Learning.Cant, M., Strydom, J., Jooste, C. and du Plessis, P. (2009) Marketing Management. 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