SWOT analysis
What concerns the strengths in the SWOT analysis, for many years, Chanel has been thought to be a well-known business worldwide. They have a variety of classic, elegant, and timeless styles in their inventory. The Chanel corporation employs approximately 1,300 people throughout its headquarters and retail locations. The company’s clothing is comfortable and stylish, and it caters to wealthy metropolitan clientele. Chanel is among the luxury apparel segment’s market leaders, with great brand value and loyalty. Considering the weaknesses, despite significant brand awareness, there is a high rate of customer preferences changes. Moreover, Chanel’s market dominance growth is constrained due to strong competition from other luxury brands.
Based on the opportunities, it can be stated that Chanel can receive benefit from the growing impact of online sales and the E-commerce sector. Furthermore, the organization is possible to establish collaborations with well-known hotel franchises and fashion firms in order to help the brand expand. Considering the potential threats, Chanel’s market share can be eroded by rival companies that sell identical clothing and accessories. In addition, other less expensive and lower-end businesses are attempting to imitate Chanel’s classic designs and offer products at far reduced prices. Finally, the influence of economic recession and crisis, including the consequences of COVID-19, is also significant.
SMART Objective
Chanel aims to give women a sense of luxury, elegance, and fashion by introducing timeless and expensive designs. Considering the SMART Objective concept, the goal is specific since the company emphasizes luxurious style and preservation of customer loyalty. What concerns the measurability, will be able to evaluate the level of achievement of a particular task using the analysis of income statistics. Based on the attainability factor, the goal is achievable due to the current high popularity of the brand and its rich history of success. Chanel adheres to a unified brand development strategy and will work in the same direction in the long term, which means that the objective is relevant. Finally, the aim is time-based since the organization operates tactically in order to prioritize the achievements in the framework of five years.
Marketing Objective
The marketing objective of the Chanel company is the need to convey positive emotions and create a sense of elite to demonstrate specific elements and emphasize the advantages of a person. The organization is not an overly active player in marketing activities since it has a fairly rich history and excellent brand image. An almost impeccable reputation allows Chanel to develop customer loyalty by multiplying its fan base with the help of spreading its unique culture and worldview of a wealthy and aesthetic life. Globalization of world business allows the business to adapt its goals to different nations and states.
Segmentation
Since Chanel is completely focused on the apparel sector for a certain gender, the market segmentation for the business is largely dominated by girls and women. People familiar with the organization, its history and know that Chanel produces high-quality items are included in this segment. Women in the segmentation range in age from 10 to 80 years old, are believed to be rich and purchase expensive goods. Chanel is not the only company represented in this market segment since competing brands are also forced to share with it various spheres in a specific market sector.
Persona
To reach the target market and elaborate an ideal persona, Chanel employs a combination of demographic and psychographic categorization tactics. The firm employs selective targeting tactics to advertise its service to certain consumer segments. It has used a value-based positioning approach and has effectively placed itself on emotional stability, as do many luxury goods firms. In addition to the profile of the main customer, which is a woman, the company also considers men of various ages as potential customers. This is due to the idea that wealthy men may prefer Chanel products as a possible gift for their beloved or close relative.