Download - Chanel project
• 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
• 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?
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
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
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
• 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 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