presentation on Digital strategy and analysis of marketing

1. Chanel's Marketing and
Digital Strategy Analysis
Submitted By:

2. Introduction
Our goal today is to present a comprehensive digital strategy
tailored for Chanel, aiming to enhance its market position and
adapt to the evolving digital landscape.
Overview: We'll explore Chanel's current market stance and the
growing importance of digital presence in the luxury fashion
industry.We'll delve into the company's rich history, analyse its
digital strategy, and propose recommendations for enhancing
Chanel's digital footprint.

3. Background
Chanel's Business Dilemma: The core business problem is
Chanel's hesitancy to fully embrace e-commerce, particularly
for its fashion, watch, and fine jewelry lines. This cautious
approach stands in contrast to the broader industry trend
where luxury brands are increasingly moving towards online
sales platforms.
Impact of Digital Shift: The rise of online shopping,
accelerated by the COVID-19 pandemic, has highlighted the
urgency for traditional luxury brands to adapt. Chanel's
reluctance to sell fashion items online could impact its market
positioning and financial performance.
Balancing Tradition and Innovation: Chanel faces the
challenge of integrating modern e-commerce strategies while
maintaining its brand exclusivity and luxury experience, a
hallmark of its traditional retail approach.

4. Background
• Chanel's current challenge lies in adapting to the growing trend of online
retail, particularly in the luxury fashion sector. Despite the increasing
revenues in e-commerce, Chanel has maintained a cautious approach,
primarily selling only select items like fragrances and cosmetics online.
The literature review highlights the debate between maintaining
traditional luxury shopping experiences and embracing digital
transformation. Key points include Chanel's unique market position, the
impact of the pandemic on sales strategies, and comparative analyses
with competitors who have more aggressively pursued online sales. The
future of Chanel in e-commerce is a central theme, focusing on
balancing brand exclusivity with the inevitable shift towards digital
retail.

5. Solution
Limited E-commerce Presence
Description: Chanel's current digital footprint is minimal in the
e-commerce sector, a critical gap given the rapid growth of
online luxury retail. This limits Chanel's ability to reach a wider,
global audience and hinders its potential to tap into the
lucrative online market.
Recommendation: Develop an exclusive Chanel online store,
intricately designed to reflect the luxury and elegance of the
brand. This platform should offer high-end, personalized
shopping experiences, including virtual showrooms and
exclusive online collections, thereby extending Chanel's reach
and elevating its digital presence.

6. Solution
Revolutionizing Chanel's Social Media Engagement
Description: Despite having a strong brand identity,
Chanel's current use of social media is not leveraging
its full potential for customer engagement and brand
promotion. The brand lacks a cohesive and impactful
social media strategy, which is essential in today's
digital-centric consumer environment.
Recommendation: Craft a dynamic and integrated
social media strategy that aligns with Chanel's brand
ethos. This should include curated content, strategic
influencer collaborations, and interactive campaigns
that engage and grow Chanel’s audience. Emphasis
should be on storytelling and immersive experiences
that resonate with the brand's luxury image.

7. Recommendations
Embrace a Phased E-commerce Approach: Begin with limited online sales of
select products, gradually expanding the range as consumer demand and market
trends dictate.
Enhance Digital Experience: Invest in a high-quality, user-friendly website that
reflects Chanel's luxury brand, incorporating features like 3D product views and
virtual try-on.
Personalized Customer Engagement: Utilize CRM data to offer personalized
recommendations and exclusive online services, enhancing customer loyalty.
Omnichannel Strategy: Seamlessly integrate online and offline experiences,
ensuring consistent brand messaging and customer service.
Sustainable Digital Marketing: Focus on eco-friendly and sustainable practices in
digital operations to align with modern consumer values.

8. Why Chanel Should Adopt Our
Recommendations and Solutions?
• Chanel should adopt our recommendations to stay aligned with
evolving market trends and customer expectations. Embracing e-
commerce and enhanced digital engagement is crucial to expand
Chanel's global reach and attract new, tech-savvy customers. By
implementing advanced CRM systems and data analytics, Chanel
can offer personalized experiences and make informed, data-
driven decisions. This strategic digital transformation will not only
ensure Chanel remains competitive in the luxury market but also
supports sustainable, long-term growth, keeping the brand
relevant and influential in the ever-changing fashion industry.

9. References
1.Colella, G., Amatulli, C., & Martinez-Ruiz, M. P. (2019). Social
Media Marketing and Luxury Consumption: A Literature Review.
International Journal of Marketing Studies, 11, 30-52.
2.Ko, E. (2020). Luxury brand advertising: theory and practice.
International Journal of Advertising, 39, 757–760.
3.MBA Skool Team. (2022, February 18). Chanel Porter Five Forces
Analysis. MBA Skool.
4.Vogue Business. Luxury in the digital age: A multi-actor service
encounter perspective.
5.UKDiss. (2021, July 20). Case Study of Chanel's Brand
Management.