Business Philosophy & Business Strategies used

Coco Chanel's humble beginnings were also a blessing in disguise. Most of us are aware of the rags to riches story of Chanel's life. Born in lowly circumstances and raised in an orphanage, Chanel changed her name from Gabrielle to Coco supposedly in honour of a song she performed in cabarets. In time, she raised the capital to start her own fashion business. Her circumstances forced Chanel to literally create the story and the philosophy of the brand from scratch. She was perhaps the first celebrity designer; the first person to turn herself into a living embodiment of her philosophy in order to highlight her work. She was one of those rare people who understood how and why what appealed to her would also work for others. She drew on her instincts, talent and preferences to create lines that were timeless, intriguing, daring and aspirational. Her personality bestrode her work, and yet it avoided being self-indulgent. That story is still very much part of the way that Chanel conducts its business.

Coco Chanel’s marketing strategy can be summed up in her belief that ‘a girl should always be two things: Classy and fabulous’.

When Chanel began to make her mark in the world of fashion, one of the first things she did was challenge the conventions of the clothing world by cutting her hair short and wearing baggy shapeless clothes, as opposed to the trend of long hair and tight corsets. Chanel was always changing and was also a little different - so too was her marketing strategy.

Chanel wanted to create an image for her brand and did so by using six strategies, ensuring:

1 Excellent quality

2 High prices

3 Scarcity and uniqueness

4 Attractive Aesthetics

5 They had an ancestral heritage and personal history

6 Her garments were superfluous and spectacular.

Chanel has always ensured that its creator’s persona is very evident in the brand and the logo for Chanel has not changed since its inception and so has created a world recognised brand. Chanel’s marketing strategy has always been one of innovation, in spite of her unchanging label; Coco Chanel has regularly re-invented herself to align her fashion with current trends. Upon her first foray of success, Coco Chanel introduced a selection of different items. Her three piece suit, which is still modern today, was the first of its kind. Chanel’s innovation and penchant for re-invention and moving into new markets saw her release perfumes and move into the area of dress jewellery. This expansion into new markets helped the Chanel brand to grow and prosper. Another fine example of Chanel’s marketing strategy and constant determination to keep up can be seen in how she handled her return to limelight after a hiatus during the 1940s.

Upon her return, fashion had seen a new star in its firmament, Christian Dior. Chanel accepted this challenge by one again re-inventing her clothing lines and re-designing her haute couture clothing, three piece suits, and perfume and costume jewellery in line to meet to meet modern to meet wants. In fact she even introduced men’s fragrances and aftershaves, unheard of for a woman designer to do at the time. It is this constant reinvention and fearless ability to change with the times that saw Chanel and her marketing strategy succeed. Chanel’s personal ability to keep up with the times while maintaining an individualism and recognition of her brand along with her drive, have ensured that the Chanel brand is still at the fore today.