CHANEL

Chanel Founded: 1909 Founder: Coco Chanel Headquarter: Paris, France Spirit: elegance and freedom

Market Segmentation When identifying target markets, Chanel look at some variables, the most common being geographic, gender and age, level of education and occupation, and psychographic variables

Geographic variables In recent years, luxury consumption has developed rapidly in large cities in China. Considering this, Chanel set such cities as Beijing, Shanghai, Shenzhen, Guangzhou as its target markets. Hopefully, Chanel can further enlarge its market share in China

Gender and age variables Chanel was designed for women, but its high price kept the young ladies, who have a lower income, far from the products. So Chanel mainly aimed at women aged 35~45, who can afford the price.

Level of education and occupation variables Chanel was born with a sense of elegance, which makes it become the first choice of those ladies with high education level, high quality and high taste. As for the occupation variables, Chanel regard white-collar and successful women as the potential buyers.

Psychographic variables Nowadays, modern women emphasize self importance, they care about themselves and want to pursuit the life quality and taste. And Chanel has just perfectly satisfied their needs for social reputation and status.

Target Market : ❁. dependent office worker ❁. the rich ❁. people who are addicted to luxury goods

Marketing Mix Product, price, promotion and place, usually summarized “the 4 P’s” of marketing.

Product: noble, elegant, simple- designed but beautiful, high quality, wide range Makeup series Skincare series Nail polish …….

Price: high price price decides the customers. The high price positioning helps Chanel to meet the target customer group, which shows its product’s high- end characteristic. Customers will gain the satisfaction from the buying process, because they own the expensive product of this big famous brand.

Promotion ❁ Differentiated marketing : has different product and series for different markets ❁ Experiential Marketing ❁ Hunger marketing : launch limited edition ❁ promote brand awareness （ As the high-end product, Chanel seldom lower its price for promotion in its real store. ）

Place ❁ Only sale in Chanel shops or counters which are located in wealthy communities, usually in department stores, shopping districts, high- grade mall, inside airports. ❁ Chanel invests large sum of money to the ads, magazines, video websites, poster, Chanel shows up everywhere.