Executive summary
Chanel is a French luxury company that focuses on high-end fashion, luxury products, accessories, beauty and personal care products. Chanel published their financial reports for the first time in 2018. The reports shows that the company had a revenue of $9.6 billion in 2017 and profit of $1.7 (Chanel annual report, 2018) and thusly, it has been recognized as one of the most powerful luxury brands. Chanel-de-Boy is the first male makeup collection of Chanel to be launched in South Korean with its introduction being 2018, then in other South East Asian countries later.
Since the firm’s products are designed for men, the firm has the ability to meet and the newly found target market; men. Chanel has 3 product for this collection, which are: foundation, lip balm and eyebrow pencil. According to Chanel’s official tutorial, users can easily use those products to create a natural and daily look. For example, most male are expecting to a comfortable experience and a natural finish, Boy-De-Chanel Foundation comes with an imperceptible lightweight formula for a hydration and natural-looking result, over 91% men interviewed are satisfied with this product(Chanel report, 2018). The midnight blue packing also shows a simple and aesthetics of the products that are the next level. However, compared to the other product provided by different brands, especially in a mature market like South Korea, the high-pricing of Chanel’s product could possibly become one of the most significant weaknesses, customers might chose cheaper alternative.
The marketing budgeting allocation will be based on the perceived importance of the channel as well as the prospective reach to the customers. Such an analysis is important in ensuring that the firm reaches to more customers out there. Currently, more emphasis will be put into three most significant marketing channels which are Television, Magazine and Direct Mail.
2. Situational Analysis
2.1 Brand analysis
Chanel has an outstanding brand image that is a result of the quality of its product. The firm also gets its positive brand image as a socially responsible company. Chanel is categorized as one of the top luxury brands in the world, offering high-quality and expensive products to the customer. The firm is trusted by many professionals and everyday users. Being recognized as a socially responsible company, is forms an important part of Chanel to achieve tremendous growth and success, they committed to eliminating gender inequality, inspire all to find their beauty and style (Foundation Chanel, 2011). Boy-de-Chanel first launched three product, they are high quality and sold at a premium price. Boy-de-Chanel large reliance on the power of brand endorsement and the outstanding quality have been key to their success in their marketing strategies.
2.2 Customer analysis
Overall, for male makeup, Chanel is the brand that offers the most luxurious and unique product and an excellent buying experience. Although the price is much higher than its competitors, the quality of product they provide has a higher level of quality and a better user experience.
Table1 target customer segment for Boy-de-Chanel
| Target Customer Segment for Boy-de-Chanel | ||
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| target segment | Interpretation |
| Geographic | Ø South Korea Ø City, urban citizen | Ø South Korea has the biggest demand of male beauty product in the world with an already matured market (Russon, 2018), therefore, it become the first attempt of Boy-de-Chanel. Apart from that, the product is selling on Chanel website. Ø As luxury brand, Chanel has stores most in urban area, also according to Park et al (2008), city dwellers had more occupations and the ability to make the purchase.
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| Demographic | Ø Men Ø 25-45 years old Ø High-income | Ø Withe collar worker is the main target for Boy-de-Chanel, they have the purchasing power and are overlay willing to improve their living quality. They also a special attention to appearance. Ø The pricing of Chanel is higher compare to its contender products and as a luxury product in makeup category, it specifically target to high-income customers. |
| Psychographic | Ø Males who have positive attitude to makeup Ø Males who seeks understated and elegant aesthetic | Ø Chanel clearly target to those male consumers who have the same values when it comes to product consumption. It is critical to note that their previous advertisement targets men who seeks simple and elegant beauty and personal care products. |
| Behavioral | Ø The sociable Ø The makeup beginners Ø Loyal to Chanel | Ø Customer who has loyalty to Chanel are more likely to purchase their product. Ø Boy-de-Chanel offers the most basic makeup product to their customers. Even new customers can easily use them (Chanel, 2020). Ø People who have a high value for these products and perceive them as high-class are more likely to use the product. |
| Benefit | Ø Functional benefit: easily create a natural-look Ø Emotional benefit: value of brand, luxurious shopping experience | Ø By using Boy-de-Chanel, it helps them to get a natural-look with hydration (Chanel, 2018).
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2.3 Competitor analysis
Boy-de-Chanel competes with the existing brand who also target the male users in the South Korean cosmetics industry. Currently, the firm directly compete with Tom Ford and South Korean local brand Sulwhasoo which is the premium brand owned by the top Korean cosmetics retailer AmorePacific. All of them offer high-quality male cosmetics products with a comparative higher price meaning that they could be categorized in the luxury segment. Although some brand for example innisfree and Etude house are not luxury brands, their products pose a huge competition.
Product perceptual map.
