Chanel Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: August 15, 2021

Marketing Strategy of Chanel analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Chanel marketing mix, help the brand succeed.

Chanel marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Chanel Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Chanel Product Strategy:

The product strategy and mix in Chanel marketing strategy can be explained as follows:

Chanel is one of the world’s leading fashion brand which caters to an elite audience. Being a high-end luxury premium segment brand, Chanel offers a wide range of fashion products. Chanel’s products are mostly targeted at women, but it also has a line of cologne and fragrances for men. The product categories in its marketing mix are as follows:

- Fashion: Haute couture Fashion n, Handbags Ready-to-wear clothes

- Jewellery: Watches & jewellery

- Fragrance: Perfumes & colognes

- Others: Makeup, Skincare & Sunglasses

The products of Chanel are of international fame and followed by high-end customers worldwide including renowned Hollywood celebrities and more. The quality factor of Chanel products is especially important for the company, for any slight shortcoming would lead to severe damage to the high-end luxury brand image and thus has become more of a hygiene factor for its products now given its international reputation. The products are created by many individuals who are highly skilled at their craft. Chanel does not go for mass production and comes up with limited editions of products, especially in the fashion clothes and fine jewellery segment. The company is known for its simple, stylish products made from expensive and valuable raw materials. Its fashion line is exclusively made of pastel shades like nude, beige and black. Some of its iconic products include the Chanel suit, the perfume No. 5 de Chanel and the little black dress. To protect the environment, the company has been committed to not make fur or skin-based products


Image: pixabay


Chanel Price/Pricing Strategy:

Below is the pricing strategy in Chanel marketing strategy:

Chanel is a premium brand for elite customers.

From the time, the first Chanel shop was established, it has been catering to the fashion needs of high-class aristocrats of the society, people who believe in indulgence and gratifying human appetite for the finer things. It’s target segment still remains the same niche and cash rich customer. Therefore, Chanel charges exorbitant amount of money in its marketing mix pricing strategy but the prices are justified most of the time because-

• The quality of raw materials used for Chanel products is exquisite and rare

• The final products are of world class quality and exemplify style and elegance

• The target segment is rich and therefore willing to pay

• Chanel as a brand is so much sought after that even those who are from upper middle class will pay to own a Chanel product as it increases their social status

The product categories within Chanel have different pricing strategies, for example the Haute Couture is priced in the extreme high-end segment, starting from $10,000 to $60,000, with the far end going beyond $100,000, as compared to the normal wear everyday fashion wear which is mostly in the range of $1000 to $50,000.


Chanel Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Chanel SWOT Analysis, STP & Competitors

Chanel Place & Distribution Strategy:

Following is the distribution strategy in the Chanel marketing mix:

Chanel caters to the high class aristocratic segment and its stores are usually located in the high-end posh localities. It also has its stores at airports since that is where most of the potential customers travel. Chanel stores can even be found in the lobbies of five-star luxury hotels which again cater to its targeted customer base. The Chanel boutiques are located around the world including cities like New York, Boston, Amsterdam, Sao Paulo, Sydney, Hamburg, Cannes, Miami, Bangkok, Geneva, Tokyo, Saint Tropez, Moscow, Los Angeles, Paris, Dubai and London- which is the biggest in the world. It has around 300 Chanel boutiques out of which 120 are situated in North America, 90 in Asia and 70 in Europe. Its fragrance and skincare counters are available across high-end luxury malls.

Chanel products are also available online as the stores are not accessible to many customers due to exclusive locations around the world which are restricted to high-end localities.


Chanel Promotion & Advertising Strategy:

The promotional and advertising strategy in the Chanel marketing strategy is as follows:

Chanel is a widely well-known brand which has an extreme brand loyalty factor associated with it. For promotions, it usually places ads for its products in high-end fashion magazines like Marie Claire, Harper’s Bazaar, Vogue, Elle etc. Chanel also does point of sale marketing by employing classy store layouts and creative use of mannequins to lure the customers into their boutiques. It also employs supermodels and Hollywood actors to do modelling for their brand and gets a lot of promotion through the fame of the models, who also in turn benefit from the brand equity of Chanel thus creating a brand synergy between them. Chanel also gets a lot of publicity when renowned celebrities wear its Haute Couture or carry its bag on the red carpets of coveted award shows and film festivals garnering the eyeballs of fashion magazine journalists and critics who then acknowledge the brand and product through various channels like magazines, blogposts, newspapers and television shows as well. The brand has a strong digital marketing & social media strategy, and uses video content to promote its product-line. Hence, this concludes the marketing mix of Chanel.


About Chanel:

Chanel is a luxurious fashion brand from France which is known for its haute couture and ready-to wear clothing line along with other premium products such as watches, perfumes, handbags, sunglasses and designer jewellery. The brand is highly renowned across the world and wore by the high socio-economic class of people as a symbol of luxury and elitism.

It was founded by Gabrielle Chanel, famously known as Coco Chanel in 1909 and was revolutionary in its designs as it freed the women of 20th century from the corseted dresses they were wearing to more comfortable and naturally flattering dresses. Chanel’s major competitors in the high-end fashion industry include Louis Vuitton, Gucci, Burberry, Dior etc. The company has more than 20,000 working professionals in its workforce globally.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to Chanel. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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