Chanel Marketing Mix

Chanel was founded by Gabrielle Chanel, also known popularly as Coco Chanel.

Coco Chanel started with a hat boutique in 1910 but gained reputation fast as her hats were worn by famous French actresses.

In 1913, she started selling a line of sportswear made of jersey, which became an instant success.

Chanel is now a leading name in the world of luxury and high end fashion.

The company is headquartered in London, United Kingdom.

The brand is known for offering the ultimate level of luxury and world class craftsmanship.

Chanel revolutionized fashion at the dawn of the 20th century.

The company has demonstrated resilient performance  even in the face of the Covid19 pandemic.

Its revenues declined compared to the previous year.

However, considering the challenges posed by the pandemic, its performance remained better than expectations.

The company generated $10.1 billion in net revenues.

It employed 27,018 people as of 2020.

Over time, the brand has expanded its product line a lot and has grown into one of the leading luxury brands sold around the globe.

Chanel is a privately held company owned by Alan and Gerard Wertheimer.

Actress and House ambassador Penélope Cruz wearing looks from the CHANEL Cruise 2021/22 collection on the cover and in the pages of Vogue Arabia, photographed by Luigi and Iango.

Marketing Mix of Luxury Brand Chanel :

In this marketing mix, you will learn about the four Ps of Chanel including product, price, place and promotion.

These four Ps will help you understand how Chanel has established itself as a leading luxury brand and found worldwide growth and fame.


Chanel is one of the leading luxury brands that started as a hat boutique. 

Some years later it also introduced sportswear. 

The company has expanded its product line a lot since then. 

The brand has become synonymous with ultimate luxury and the highest level of craftsmanship.

It has gained fame worldwide for its great quality products, creativity and excellence.

The product line offered by Chanel includes Ready-to-Wear, Leather Goods, Fashion Accessories, Eyewear, Fragrances, Makeup, Skincare, Jewelry and Watches.

Chanel is also known for its Haute Couture collections that it releases twice every year.

The company has also acquired a large number of specialized suppliers that are collectively known as Metiers D’Art.

It also invests heavily in innovation and R&D to maintain excellent quality and customer loyalty.


Chanel is a french brand that has its headquarters in London, United Kingdom.

The company uses branded stores as well as ecommerce channels to sell its products to customers worldwide.

There are 310 Chanel stores operational worldwide.

In 2020, the company also experienced solid growth in sales through online channels which partially offset the decline caused by the pandemic.

Chanel has fragrance and beauty boutiques in the US in California, Texas and New Jersey.

China is the second biggest market after the US for Chanel’s beauty business.

Together, the US, China and France represent one third of the company’s sales.


Chanel is a leading luxury brand that places a heavy focus on product quality, craftsmanship and excellence.

It invests heavily in its people, innovation and research and development.

The company follows a premium pricing strategy on all its products.

Brands that adopt a premium pricing strategy are often known for the uniqueness, design and quality of their products.

Despite the premium pricing, the company has a large and loyal customer base from across  the globe, which is because of the brand’s popularity and great image.

Premium pricing is generally followed by all brands that sell high end products.

Chanel enjoys solid profit margins driven by its premium pricing policy.

Its revenues declined in 2020 due to the pandemic, but the company still showed resilience in the face of manufacturing shutdown and supply chain disruptions.


As a leading luxury brand, Chanel enjoys strong popularity worldwide.

The company enjoys a strong brand image and has been able to establish itself as a brand dedicated to luxury and excellent craftsmanship.

The company uses both traditional and digital channels to promote its brand and products.

Apart from fashion events and other methods like magazines, sponsorships, brand ambassadors, the company also uses social media and other digital channels for promotions and customer engagement.

The company has its stores located in leading fashion destinations across the world.

The excellent layout of its stores and customer experience are also among key drivers of brand loyalty and customer satisfaction.

The brand has also been made famous by Hollywood stars and celebrities from other walks of life who wear or carry Chanel products on the red carpet.

Hollywood Actress Penelope Cruz is currently a brand ambassador for Chanel products.

Many other famous faces from Hollywood like Nicole Kidman, Kiera Nightley, and Marilyn Monroe have also remained associated with Chanel.

As a leading luxury brand, Chanel needs no introduction.

The brand faces strong competition from the other leading luxury brands like Gucci, Christian Dior, Giorgio Armani, Prada, Louis Vuitton and Versace.

Its strong brand equity and focus on innovation are important sources of competitive advantage for the brand.

Its investment in marketing has also bolstered its brand image worldwide.

Chanel has cemented its position in the luxury industry through its focus on excellence and customer satisfaction.

Social media channels are now a preferred marketing channel for luxury brands.

They use Facebook, Instagram and YouTube for promotions, education and customer engagement.

Chanel has 23.6 million followers on Facebook and 47.5 million followers on Instagram.