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4 P Framework For Innovation Of Chanel

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Choose a Company that you are familiar with and map its innovation activities onto the 4P framework.


Company Profile

Chanel is a famous luxury brand of France, which was established by Gabrielle Bonheuer Chanel, who is famously known as Coco Chanel. Chanel is a high fashion brand, “Haute Couture”. The brand was established in the year 1909 and was known as House of Chanel it was after Coco Chanel opened a millinery shop at 160 Boulevard Malesherbes (CHANEL 2017). 

4 p framework for Innovation of Chanel


Chanel is luxury fashion brand that offers a variety of products to premium class clients. The products of the luxury brand includes, fashion garment. In its product line Chanel uses creative ideas in their production. The garments of Chanel are made by keeping in mind the upper wealthy class of the society. The haute couture of Chanel is for people who can afford the expensive garments of Chanel. Chanel in its boutiques present in Paris, designs products that are
House of Chanel uses innovative ideas to design variety of products that include following categories

Daywear and evening clothing for both men and women- Chanel offers beautiful daywear for formal occasions and elegant eveningwear for parties that, the dresses of Chanel fashionable and have designs unique and no other luxury brand offers. The colors palettes used in the dresses  are unique and all sophisticated colors that suits the premium class clients. . The colors include pastels, neutrals, grey and black. The woolen clothing of Chanel includes skirt of knee length, jacket that is a cardigan with golden buttons, and black embroidery. The accessories are complimentary includes pump shoes, a leather purse and pearl necklace (CHANEL 2017).


Jewelries, Products of this category are made of diamonds and white gold of 18 carat/ which include Comete, Camelia, Barouque, Ultra and Brida Watches. The Jewelries were introduced in 1932 but still the customers like them. It also includes bags for male and female of the high class, bags have unique design and are fashionable. There are designer watches in this category. In the year 2000, wristwatches with ceramic material introduced. Make up products are also sold by the brand Chanel. Perfumes like, No.5 de Chanel, Cristalle, Coco Mademoiselle, No. 19 and Les Exclusifs are included in the product line of brand Chanel (CHANEL 2017).


Chanel has boutiques and stores through which it makes high fashion products and reaches the customers throughout the world. House of Chanel’s boutiques have efficient employees, artisans and designers who efficiently work on the designs of Coco Chanel, who has been known for bringing revolution in the fashion industry. Chanel mostly uses tweed fabrics for production of Clothes, the colors used are standard that are made keeping in mind the upper class of the society. Once the production is done, to reach out its Customers, Chanel through its magazines and shows, presents the designs to its premium clients and later those products, dresses, accessories, jewelries are available to the customers on the exclusive stores of Chanel (Sandberg et al. 2016).


There are three hundred stores of Chanel and ten boutiques of Chanel throughout the world. In Oceania region there are 6 stores, 2 stores are operational in south America, 128 stores in North America, 94 in Asia and ten in the Middle east. Since the products are for the rich and wealthy therefore the area of the stores are in the affluent areas, Paris is considered as the epitome for luxury and fashion brands therefore the position of Chanel is one of the main factors that contribute to its popularity (CHANEL 2017). 



The business models used by the Luxury brands are different from that of FMCG and commonly used goods and commodities.  Luxury products are different and even the customers are different, their taste and preference is different. The most important different is that luxury products symbolize the status. Chanel uses a pyramid model that has contributed to its success. In the pyramid model, the centre idea is have a main product line and have other additional lines, which are popular but does not affect the business of main product line. This model is mostly used in luxury brands.  The focus of Chanel is Haute Couture, but the brand has also included a variety of product lines that were also very popular among the premium clients of Chanel but they have never lost their focus from the main high fashion. They have efficiently managed their control over distribution (Luxton, Reid and Mavondo 2015).

The 4P framework of Innovation

Keller 2016

SWOT analysis of Chanel


Chanel has a very strong brand image as it is a well-known name in the luxury fashion industry. The Coco chanel story is timeless and very influencing to the public. The fabric used by Chanel is of fine and tweed fabric is used, embroidery, chains, and buttons are used. The best thing about the design is that the designs of Chanel are refined but the original theme and concept of the design are not changed, the brand maintains the originality. In the shows of brand Chanel always something unique is being depicted. The staff members and the consultants are trained from Paris (Perreault Jr, Cannon and McCarthy 2013).


One of the Weaknesses of the brand is that the website of the brand Chanel does not provide much information about the various products available so the clients have to either call the Chanel stores operators of walk down to the stores in order to get details about the products of Chanel. Chanel has very less boutiques in Asian region for example there are no boutiques of Chanel in India.  One of the most significant weaknesses of Chanel is that the products are highly priced and only a particular segment of society can afford to buy the products of the brand Chanel. The production cost of Chanel is very high (Liu 2014).


There is scope for Chanel in Asian countries like, India, china and Japan where there is huge demand for products of Chanel. Chanel has a scope to expand its business in India and increase their customer base. Chanel needs to improve its website and blogs so that it is appealing to the public and its premium class clients (Keller 2016).



The counterfeit goods are a great threat to Chanel, as it spoils the brand image and makes it difficult to manage and differentiate the products. In Asian region, the designs of Chanel are plagiarized and sold in the markets by the small and local business. There is too much competition in the fashion and luxury segment as there are other famous brands like Gucci, Prada and Loius Vuitton. The customers of this segment are very aware and they always look for new and unique designs so that their clothes and accessories are symbol of their status, these customers are not brand loyal rather they look for what is new in the market (CHANEL 2017).

Marketing Strategies for Chanel

Chanel can develop and innovate its products so that the customers of Chanel get something new, they can use contemporary designs for their cloth line, jewelries, watches and accessories. The old designs will not be changed but slightly modified. Modern patterns will be used like the Geometry pattern and the tribal prints that targets the youth. More causal dresses should be included. The jewelry designs and accessories should be innovated and more new design scan be included in these segment, gems from all around world can be used, rare gems that are not much used should be used in necklines of the dresses of females.

For advertising, the brand must target televisions as well and launch their own fashion Channel that will display all the designs and the fresh arrivals of the house of Chanel. Billboards can be used for advertising especially in the affluent areas. For promotional activities, the brand should organize and sponsor famous fashion shows in other cities of the world. The clients should be given messages and mailed about the new arrivals and if any new product is launched. The website of Chanel needs to be developed and all the necessary information about the products is included in the website of Chanel, so that there are less complaints from customers that they have to either call at the store or visit the store just to get to know basic information regarding the products like price (Ivan?ová 2014).

Products like cosmetics that does not involve touching and seeing for checking the quality can be made available in the online stores of Chanel (Fakkert, Voorveld and van Reijmersdal 2015). For public relation activities there should be press releases and magazines should be given to the regular customers on monthly basis.


A proper research should be done about the market conditions and the competitors so that the brand can implement strategies based on those finding and also become a market leader. Survey should be done and the customer suggestions should be entertained and needed changes should be done so that the brand can establish goodwill in the market (Saadatmand et al. 2015). Chanel needs to take strong actions for protecting its trademark and copy right on its designs so that none of its products or designs are plagiarized in any form. The brand also needs to expand more in the Asian region, they should open stores and boutiques in china, Indian and Japan. The brand can make particular segment for the people of developing and underdeveloped countries so that they can afford some of the products of the company like the Cosmetics and accessories (Hollensen 2015).

Under corporate social responsibility, they should include more social causes, apart from women empowerment. They should carry out activities to empower women in countries where women are less empowered (Armstrong et al. 2015)



Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

CHANEL. (2017). CHANEL Official Website: Fashion, Fragrance, Beauty, Watches, Fine Jewelry. [online] Available at: [Accessed 5 Aug. 2017].

Fakkert, M.M.S., Voorveld, M.H.A. and van Reijmersdal, E.A., 2015. Brand placements in fashion TV series. In Advances in Advertising Research (Vol. V) (pp. 217-228). Springer Fachmedien Wiesbaden.

Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.

Ivan?ová, A., 2014. Is it about money or marketing?: international marketing strategies in the luxury cosmetic industry: exploratory multiple case study of Chanel, Guerlain and La Mer (Master's thesis).

Keller, K.L., 2016. Reflections on customer-based brand equity: perspectives, progress, and priorities. AMS review, 6(1-2), pp.1-16.


Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability and brand performance. Journal of Advertising, 44(1), pp.37-46.

Perreault Jr, W., Cannon, J. and McCarthy, E.J., 2013. Basic marketing. McGraw-Hill Higher Education.

Saadatmand, N., Gaj, S., Proctor, G. and Varma, S., 2015. Integrating Financial Plans into the Planning, Programming, and Budgeting Processes(No. FHWA-HIF-16-001).

Sandberg, A.B., Klementsen, E., Muller, G., de Andres, A. and Maillet, J., 2016. Critical Factors Influencing Viability of Wave Energy Converters in Off-Grid Luxury Resorts and Small Utilities. Sustainability, 8(12), p.1274.


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