25
“In order to be irreplaceable one must always be different”

Chanel project

Embed Size (px)

Citation preview

“In order to be irreplaceable one must always be different”

 •  Founded:  1909  by  Gabrielle  “Coco”  Chanel  •  Country:  France    •  Industry:  Luxury    •  Brand  value:  $7  B  •  Sales:  $4.7  B    Main  Compe+tors:            

BRAND OVERVIEW

                                                                                                                             

Strengths  -­‐  Pioneers  of  prêt-­‐a-­‐porter  clothing  -­‐  Strong  brand  equity  and  loyalty  

-­‐  Strong  brand  image  -­‐High  quality  

     

Weaknesses    -­‐High  price  

-­‐  Limited  producMon    -­‐  Website    

Opportuni+es  -­‐  Online  sale  and  E-­‐markeMng  gaining  more  

importance  -­‐  Tap  on  technology  

-­‐  Expand  deeper  into  Asian  market    

Threats  -­‐  CompeMtors  in  the  same  business  providing  

similar  kind  of  clothes  and  accessories  -­‐  Counterfeits  goods    -­‐ImitaMng  designs    

   

SWOT ANALYSIS

•  Market  is  growing    despite  turbulence  

•  7%  growth  in  2014  

OPPORTUNITY LUXURY MARKET. KEY TRENDS

•  Internet  is  the  fastest  growing  channel  of  retailing.              Impact  mostly  felt  in  developed  countries:              Online  sales  account  for  14%  of  luxury  sales  in  UK,  10%  Germany.  •  Key  challenge  for  Luxury  Brands:  find  balance  between  

“availability  and  scarcity”

OPPORTUNITY ONLINE PERSONAL LUXURY GOODS MARKET TREND (2003-2013 €B)

RESEARCH OBJECTIVES

Key  steps:    

1.  Analyze  shopping  behavior  of  luxury  shoppers  

2.  IdenMfy  the  customers  that  are  buying  luxury  online  

3.  Understand  the  demographics  of  online  luxury  shoppers  

 

IS  THERE  AN  OPPORTUNITY  IN  ONLINE  RETAILING,  IN  EUROPE,  FOR  CHANEL?  

Underlying idea: Focusing on understanding what motivates the Chanel consumer.

RESEARCH METHODOLOGY

THEORETICAL FRAMEWORK

Merchant Model – These online business models are simply retail (or wholesale) sellers of services and goods. A successful online store requires doing a lot of preliminary target market research, and having an in-depth understanding of the online consumer.

AdverMsing  Model  

Brokerage  Model  

Community  Model  

Infomediary  Model  

Merchant  Model  

Affiliate  Model  

SuscripMon  Model  

IS  THERE  AN  OPPORTUNITY  IN  ONLINE  RETAILING,  IN  EUROPE,  FOR  CHANEL?  

BENCHMARK

Potential Competitor Articles Carried: •  Women’s Fashion •  Men’s Fashion •  Babies Fashion •  Shoes •  Accessories

BENCHMARK

Same industry, but other type of luxury goods Articles Carried: •  Items up to $10,000 •  Online: 40% Sales •  Great source for Holiday Gifts

SAMPLING

Population: UK

Luxury Market

Sample: UK Luxury

Market online

Channel Online Consumers

MIXED METHODS

QUANTITATIVE  •  QuesMonnaires  •  Online  Surveys  •  Social  AnalyMcs  •  Web  AnalyMcs  

QUALITATIVE  •  Semi-­‐structured  Interviews  

RESOURCING & CONSTRAINTS

Social  Media  AnalyMcs  Online  Surveys  QuesMonnaires  Web  AnalyMcs    QUALITATIVE    Focus  Groups,  Interviews    BENCHMARK    2  Other  Companies  (Dior  +  Mont  Blanc)      

QUANTITATIVE  

TIME   BUDGET  

2  months    3  months      TIME    >  4-­‐6  months      TIME    >  2  months      

Low    Medium      BUDGET    High      BUDGET    Medium    

                                                               

     

ONLINE STORE

• Great  design  • Memorable  logos  • Recognisability  • Up-­‐to-­‐date  appearance  • Building  credibility  and  trust  

• Brand  Loyalty  • Ease  of  accessibility  • Incen+ves  for  customers  

• Physical  infrastructure  • Human  resource  • Remote  access  to  process      

BRAND VALUE

PART II: BRANDING AND THE CREATION OF VALUE

BRAND POSITION AND DIFFERENTIATION

ProvocaMon    &  

SophisMcaMon  

Couture  &  Accessories  

TradiMon  &  Individualism  

•  LUXURY  GOODS  SECTOR    

•  LOCAL  BRAND  EXPANDED  INTERNATIONALLY    

•  ELEGANCE,  SIMPLICITY,  MODERN,  CLASSY  

•  DIFFERENT  PRODUCTS  FOR  DIFFERENT  MARKET  SEGMENTS  

 

IMAGE  

PRODUCT  

SOCIAL  VALUES  

COMPETITION

•  PRIVATELY  HELD  COMPANY    

•  PRODUCT  DEVELOPMENT  &  COLLECTIONS    

•  SYMBOLS-­‐  CAMELIA,  BLACK  DRESS    

•  CHANEL  GIRLS    

•  TIMELINE  OF  PRODUCTS  

•  MYTH  OF  BEING  MYSTIQUE  

DIFFERENTIATION

Physique  

-­‐  Long-­‐las+ng  -­‐  FlaTering    -­‐  RespecUul        

RelaMonship   Culture  

Personality  

ReflecMon   Self-­‐Image  

-­‐  Elegance  -­‐  Independent  sensual  woman    -­‐  Complete  look  for  women    

-­‐  Modern  elegant  women    -­‐  Elegant  with  a  social  posi+on  -­‐  High  income  

-­‐  Liberated  lifestyle    -­‐  I  am  sophis+cated  and  elegant    

 

-­‐  Sophis+ca+on  -­‐  Libera+on    -­‐  Classicism  

-­‐  Crea+ve  -­‐  Perfec+onist  -­‐  Understated    -­‐  Sophis+cated    -­‐  High  self-­‐esteem    

SENDER  

RECIPIENT  

EXTERN

AL   IN

TERNAL  

BRAND DEFINITION & IDENTITY PRISM

BRAND ARCHITECTURE

   

CORPORATE  BRANDING  

BRAND VALUATION

•  33%  of  average  contribu+on  to  overall  company  value.  

 •  Useful  in  terms  of  acquisi+ons  &  

mergers,  brand  investment  decisions,  license  costs  and  ge[ng  funds      

         

"..  customer  equity  is  the  preamble  of  financial  equity.  brands  have  financial  value  because  they  have  created  assets  in  the  minds  and  heart  of  customers.“  

           -­‐  Kapferer  

BRAND VALUATION

CRITERIA WEIGHING

Market 10%

Well  established  in  Europe  and  USA,  biggest  markets  for  beauty  and  fragrances.      Overtook  LV  in  China,  the  top  and  faster  growing  market  for  luxury.  

Stability 15%

Strong  brand  heritage.      Focus  on  the  personality  of  the  founder  in  its  worldwide  markeMng.    

Leadership 25%

3rd    worldwide  in  premium  woman  fragrances.  17th    in  beauty  and  personal  care.    1st  in  haute-­‐couture  

INTERBRAND MODEL

BRAND VALUATION

CRITERIA WEIGHING

Profit  Trend 10% €2  billion  (2014),  growing

Support 10% All  retail  stores  are  privately  owned  by  Wertheimer  Brothers

Geographic  Spread 25% 310  stores  worldwide,  ongoing  expansion  plan  in  emerging  mkts.

ProtecMon 5% Trademark  is  protected  but  IP  protecMon  for  perfumes  and  designs  is  weak.

INTERBRAND MODEL

“Fashion fades, style remains”

Rebecca  Teboul,  Julia  Treppte,  Elena  Berrone,  Gaston  Arcuri,  Vikas  Mu