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NEW TYPE OF PRODUCT

New product line for Chanel

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Proposition of new product line for Chanel made up within group of 4 participants of "Luxury brand management and product design" by London College of Fashion, 2011

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Page 1: New product line for Chanel

NEW TYPE OF PRODUCT

Page 2: New product line for Chanel

STUDY OF THE BRAND

Page 3: New product line for Chanel

CHANEL HISTORY

GABRIELLE CHANEL

Fashion designer. Born on August 19, 1883

The trademark are suits and little black dresses

.

Page 4: New product line for Chanel

1916 Chanel Launch the first Jersey Haut Couture,

Chanel’s little black dress

1920 Chanel created the first pair of trousers for woman

1924 First perfume, Chanel No. 5 and the first jewelry

collection

1926 Introduction of the legendary Chanel suit collarless

jacket and well-fitted skirt. Last days of corsets and other confining garments

1955 the matelassé and the chaine handle collection of

bags 2.55

1983 Karl Lagerfeld joined Chanel

BRAND HISTORY

Page 5: New product line for Chanel

PRODUCTS SEGMENTATION

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LEATHER GOODS

Classic, iconic, eternal

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SMALL LEATHER GOODS

Sofisticaded but pratical

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SHOES

Byzance Collection Exuberant, Luxury, Riches.

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ACCESSORIES

Precius Luxury

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READY TO WEAR

Classy Fabulous

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READY TO WEAR

Modern Elegante

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HAUTE COUTURE WEEDDING DRESS

Purity Classic high hand made

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HAUTE COUTURE

Eternal Classic Modern

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PERFUMES

High quality luxury

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MAKE UP

Dramatic intense

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LICENSED PRODUCTS

Lifestyle

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CHANEL`S NEW PRODUCT CATEGORY

Table Sets Porcelain Collection

Page 18: New product line for Chanel

JUSTIFICATION OF THE NEW TYPE OF PRODUCT

1. To increase the loyalty of existing customers

2. To contribute to the “total look” of the brand

3. To reinforce the trust on the high quality of the brand

4. To be a requiring brand

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ANALYSIS OF THE EXISTING

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Contemporary

Ethinic Japonese Casual

Floral Theme

Modern

SAMPLE OF DISHES

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COMPETITIVE ANALYSIS

1. Rosenthal, since 1885, France

2. Versace by Rosenthal

3. Bernardaud, since 1863, France (Rue Royale)

4. Haviland, since 1842, France (Rue Royale)

5. Meissen, since 1708, Germany (Europe`s first porcelain)

6. Faïencerie de Niderviller since 1735, France

7. The Royal Crown Derby Porcelain Company, since 1878, UK

8. Hermes, since 1837, France

9. Merdinger, Switzerland, 3 gen.back

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Rosenthal, since 1885, France

Versace by Rosenthal

100 €

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since 1863, France (Rue Royale)

since 1708, Germany (Europe`s first porcelain producers)

400 €

100 €

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since 1837, FranceFaïencerie de Niderviller since 1735, France

since 1878, UK

300€

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Swiss brand, 3 generation back, using gold finishing in dishes

700 EU

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TRENDBOOKSource of inspiration

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CHANEL Essentiel

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CHRISTMAS LIMITED COLLECTION

Byzance style

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JEWELLERY COLLECTION

Camelia Baroque

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PACKAGING

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Page 32: New product line for Chanel

SEMIOTICS

Chanel brings the richness of Byzance to your Christmas table

CHANEL

SYMBOLS MEANINGS

ROUND SHAPE A classical shape for a dish

PORCELAIN Classic. Elegance.

  traditional. High class

GOLD

Precious. Luxurious. Richness symbol. Sophistication + classicism.Christmas decoration.

ANCIENT THEMES (BYZANCE)

Past values: tradition, elegance. Homogeneity with Byzance collection 2010-2011.

CHANEL (NAME)Loyalty to the brand

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NEW PRODUCT POSITIONING

Unaccessible

Accessible

Classic Modern

Page 34: New product line for Chanel

INNOVATION VALUE SCALE

0

• The product remains absolutely faithful to the

brand

• Traditional Chanel symbols are found in every table

set collection

• It follows the style already created for other

categories

LOW INNOVATION

MEDIUM INNOVATION

HIGH INNOVATION

15

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NAMING OF THE PRODUCT

JEWELLERY COLLECTION

Created following the Chanel jewellery collection launched by the brand in 2010-11

CHANEL EssentielDesigned based on iconic Chanel signs and symbols

CHRISTMAS LIMITED COLLECTION

Christmas as a spirit of religious celebration. Byzantine art as based on religious symbols.

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CLIENTS SEGMENTATION

SEGMENTATION TARGET

GEOGRAPHICAL Worldwide

DEMOGRAPHICAL Upper class, Middle and Older Age

PSYCHOLOGICALLooking for recognition, Status seekers

USE-RELATED Brand Loyalty

USE-SITUATIONEvents, Christmas, Marriage, and Anniversaries

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POPS & PODS

POPS PODS

FINE BONE CHINA Best Quality Porcelain

HISTORICAL Chanel Spirit of unique designs

LUXURY Totally new product in Chanel

LIMIT EDITION Antique Collectors

FABULOUS DESIGNAttached to a unique Charismas Event

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Coco Chanel Stores & Boutiques Worldwide

Website

Window Show in Prestigious Superstores

Promotional Gifts for Celebrities

Promotional Campaign

Launching time before the Charismas

Special Offer for Dealers and Agents Worldwide

DISTRIBUTION CHANNELS

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FIX COST

UNITS 5,000 10,000 20,000

MOULDS Production cost

500 Euro 500 Euro 500 Euro

MOULDS Production Time

24h 24h 24h

Plan Cost/Unit

10 Euro 10 Euro 10 Euro

Total Cost 50,000 Euro 100,000 Euro 200,000 Euro

The calculation are based on 2 months production time

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VARIABLE COST

UNITS 5,000 10,000 20,000

Porcelain 8 Euro 7 Euro 6 Euro

Coloring 7 Euro 6 Euro 5 Euro

Gold Plated 35 Euro 30 Euro 25 Euro

Packaging 30 Euro 25 Euro 20 Euro

Labor/ Unit 120 Euro 120 Euro 120 Euro

Total Variable Cost/Unit

200 Euro 188 Euro 176 Euro

The calculation are based on 2 months production time

Page 41: New product line for Chanel

RETAIL PRICE

UNITS 5,000 10,000 20,000

Fix Cost 10 10 10

Variable Cost 200 188 176

Total Production Cost

210 198 186

Retail Price/Unit 810 Euro 792 Euro 744 Euro

Capital Investment

1,100,000 Euro

2,080,000 Euro

3,720,000 Euro

The calculation are based on 400% basis

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CONCLUSION

New product is expected to successful and be well

accepted in the market due to unique type of product by Chanel

Also it stands up the high quality and values of the brand

Loyal customer are supposed to embrace the new product

since it is love brand & lifestyle

Our recommendation is to start up with 5000 pcs limited edition and subsequently expand selection of dinnerware

Page 43: New product line for Chanel

PROJECT SUBMITTED BY:

Monica Soares

Ana Domingo

Mazin Balilah

Narmina Agayeva