Chanel\'s Online and Offline Brand Management


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This was a 5-minute presentation given in my Sales class. The purpose was to present a problem to a group of Chanel representatives, talk briefly about a solution, and end with a call to action that would necessitate a more detailed (and longer) discussion of the problem and solution. The problem that I presented in this presentation was Chanel\'s use of the internet as an information channel, while not taking full advantage of its e-commerce and community aspects. I present a 3-pronged approach that should drive both their online and offline brand management.

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  • Essentially people make more money, can buy whatever they want due to accessibility of goods. A large part of this is due to international travel and the growth of the internet. The global luxury fashion sector is estimated to be worth US$130 billion. The sector is one of the few industrial segments that have remained a constant world economy contributor with an annual growth rate of approximately 20 per cent although we’ve seen some decline in the past few years.
  • Luxury brand managers must engage in a delicate balancing act.
  • Recent market segmentations have generally identified the following consumer segments in the online channel. Many luxury customers tend to be experimental and convenience shoppers
  • This is critical for luxury brands because any conversations online are conversations you should take part of and affect if possible
  • On the topic of luxury and the online channel, Chanel captures the essense of the brand
  • This is a missed opportunity
  • The A/O Test helps to analyze the type of luxury brand you are, your customer types, and determines whether you are doing well in current offline brand strategy. The online brand management process first looks at the type of products you sell to determine if they are conducive to e-retail, then goes through the strategic options to build a strong online channel. The final step helps put together a strategy for social media and the web as a whole
  • I would like to discuss the last point in greater detail and speak with you about the value I will bring as a consultant to solve your e-retail strategy.
  • Chanel\'s Online and Offline Brand Management

    1. 1. CHANEL<br />Online and Offline Brand Management<br />Glodine Jourdan, MBA Candidate 2010<br />
    2. 2.
    3. 3. Agenda<br />My Background and Interest<br />Industry Trends<br /><br />The Framework<br />Important Points<br />Final Thoughts<br />
    4. 4. My Background and Experience<br />MBA Candidate 2010, Haas School of Business<br />Work Experience (IvelichStone, Sephora)<br /><ul><li>Brand Consultancy</li></ul>Research (The Luxury Fashion Brand’s Internet Dilemma)<br />Brand Management<br />Retailing<br />Luxury Brand<br /><ul><li>E-Commerce</li></ul>Bought first Chanel product at 13<br />
    5. 5. Industry Trends: Drivers to Growth<br />Increase in Standard of Living<br />Democratization<br />Globalization<br />Accessibility<br />New Markets<br />International Travel<br />Global Mass Media<br />The Internet as a multi-dimensional sales channel<br />
    6. 6. Industry Trends: Luxury’s Balancing Act<br />
    7. 7. Industry Trends: The Online Customer<br />Who are they?<br />Social shopper: associate shopping with pleasure and social meetings<br />Habit shopper: only visit the same stores and shop through the same medium<br />Ethical shopper: are more concerned with ethical associations of shopping like material sources and employee working conditions, than with shopping medium<br />Value shopper: seek value from an overall combination of product and service quality and cost<br /><ul><li>Experimental shopper: are not afraid to try new stores and shopping media
    8. 8. Convenience shopper: appreciate shopping without time delays</li></li></ul><li>Industry Trends: The Luxury Customer<br />What are they like?<br />Restless<br />Empowered<br />Fashion-savvy<br />Highly demanding<br />Disposable nature<br />Convenience-driven<br />Cash-rich/Time-poor<br />Media and brand saturated<br />Informed, knowledgeable and educated<br />Financially, socially and environmentally aware<br />
    9. 9. Industry Trends: The Internet<br />An increasingly important sales channel<br />27% of consumers purchase luxury apparel online<br />18-24 year olds more likely to purchase luxury apparel online at 42%<br />72% of High Net Worth Individuals (HNWI) bought online in 2008, higher than any other income level<br />HNWIs report that the internet has changed how they shop at 52%, higher than any other income level<br />
    10. 10. Industry Trends: The Internet<br />An increasingly profitable channel<br />Sale of luxury fashion goods online increased almost fourfold from ’01-’06; trend is expected to continue beyond 2009<br />
    11. 11. Industry Trends: The Internet<br />Those are conversations you should monitor, and also aim to influence <br />
    12. 12.<br />Captures the essence of the brand…<br />
    13. 13., Cont’d<br />…But is missing the e-retail component<br />
    14. 14. The Framework<br /><ul><li>Offline Strategy Drives Online Strategy
    15. 15. Offline Brand Management Strategy
    16. 16. The Aesthetics/Ontology Test
    17. 17. Online Brand Management
    18. 18. Web Management</li></li></ul><li>Important Points<br /><ul><li>Opportunities exist in e-retail for Chanel
    19. 19. The Customer expects you to be online. You need to be where your customers are
    20. 20. Brand managers need both online and offline expertise in order to manage the brand holistically
    21. 21. Important to manage online conversations on social networking sites
    22. 22. Offline Brand management should drive online brand management
    23. 23. The framework presented today help enhance the value of the brand </li></li></ul><li>What we’ve accomplished<br /><ul><li>Highlighted Chanel’s e-retail problem
    24. 24. Identified challenges and opportunities
    25. 25. Briefly proposed a solution</li></ul>I would like to discuss the last point in greater detail<br />Glodine Jourdan<br />Haas MBA Candidate 2010<br />Glodine_jourdan@mba.berkeley<br />
    26. 26. Thank you!<br />Glodine Jourdan<br />Haas MBA Candidate 2010<br />Glodine_jourdan@mba.berkeley<br />
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