Marketing -Chanel

1407 WordsMay 30, 20086 Pages
CHANEL PERFUME INTRODUCTION The success of Chanel Perfume traces its roots back to 1870, when Ernest Wertheimer moved from Alsace, France to Paris during the Franco Prussian War. Shortly, after his arrival he purchased an interest in a French theatrical makeup company called Bourjois. Bourjois successfully introduced dry rough to the European market in the 1890’s. The company grew rapidly, and by the early 1920’s Bourjois had begun making and distributing skin creams from his Rochester, New York, plant for cosmetic industry giant Helena Rubenstein. Through the Wertheimer family would control the finances of Chanel from its inception, the impetus and creative vision for the company came from Coco Chanel. Theophile Bader, founder of…show more content…
“ A few year ago, it used to be that fragrance would come out, slowly build up sales, and perhaps after three or five years you would start seeing some attrition. Now a fragrance comes out and often by the second year its either off the shelves or posting double-digit declines in sales.” To make things worse, the perfume market is also suffering from slower growth than some other segments of the beauty industry. L’Oreal’s fragrance division was its slowest-growing cosmetics’ business segment in 2005. Comparable perfume sales at the group rose 1.3% to $1.47 billion ($1.93 billion) in 2005, compared to growth of 8.9% for skincare and 5.6% for hair care. In France, the world’s largest perfume market, sales were flat in 2005. At U.S. department stores, sales rose 3% to $2.94 billion, according to market research firm NPD. The Luxury Brand Market Analysis is the only study of wealthy consumer awareness and buying behavior of luxury women’s fragrances. Wealthy consumers mentioned Chanel (in the aggregate) as the most often recalled brand (unaided) when asked which luxury fragrance brands come to mind. It was also the highest ranking brand for market share, purchase consideration and most recent purchase. “With the hundreds of choices wealthy consumers have for luxury fragrances, it’s a tribute to Chanel that their brand remains so dominant within this coveted segment,“ said Milton Pedraza, CEO of the Luxury Institute. “ While

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