BUSI 745: COURSE PROJECT
MARKETING CREATIVE BUSINESS VENTURES
PROFESSOR JEREMY KOBUS
SUMMER 2021
Kudzayi Lorraine Kanyama
Megan Kirby
Skyler Slone
Project Overview
The Brand
Target Audience
Personas and Customer Journey Maps
Empathy Map
Research Findings
Proposal: Primary Research
The aim is to develop an innovative marketing strategy for Chanel’s Resort 2022 collection, to be delivered through an integrated marketing mix with relevant touchpoints that will drive awareness with Millennial and Gen Z consumers. With a digitally-led execution strategy, the marketing plan will outline how culturally relevant content and experiences will be deployed to pique interest with the target consumer, both online and offline. Overall, the business rationale is to develop a unique approach that supports Chanel’s long-term growth plan by engaging a younger, new generation luxury consumer. The proposed marketing plan will ultimately bring to life the inspiration behind the looks from the collection and establish desire/appeal with Millennials and Gen Z.
Leading luxury brand on social media since 2017 Drivers for highly engaged social communities:
# commitment to posting engaging video content
# mastered crafting content unique to the platform
Chanel has an opportunity to appeal to Generation Z and Millennials. This requires a strategy that will allow them to reach these specific age demographics. In addition to strategically planning what delivery methods to use, it is vital that they expand their approach to diversity, equity, and inclusion efforts. This is a social justice movement that is important to the intended target audience. The marketing campaign will emphasize the importance of these topics by including a more diverse group of models and members from the LGBTQIA community.
Millennial
Chloe is a style-conscious shopper who appreciates modern and timeless pieces but also likes to be experimental, fusing elegance with subtle cues of edginess. While she stays informed on the latest trends, she values her individuality and is an adopter of luxury brands that reflect her desire for self-expression. As a new luxury shopper that is relatively price-conscious, Chloe occasionally likes to mix up her repertoire between traditional luxury brands and premium brands, keeping her look practical and playful. Chloe is a pleasure seeker and tends to be loyal to brands that create moments of delight and interactive product experience IRL.
Recently she visited the Atelier Beauté Chanel studio in Soho where she fell in love with the fantasy and playfulness of the brand and has since become a highly engaged Chanel beauty consumer. While she appreciates Chanel’s heritage, uniqueness, and “mystique”, Chloe wishes it would offer her similar newness in experiences with the brand’s fashion collections and wants more innovative ways to explore and engage with Chanel fashion outside of the traditional store format.
Location: New York City
Wants newness in interacting with Chanel’s collections
Seeks new luxury through experiences & personalization
Aspires to build collection of limited edition Chanel items
Limited access to Chanel’s fashion collections online
Limited points for inspiration/discovery with the brand IRL
Perceives Chanel’s “exclusivity” as barrier to brand adoption
Discovery
Pleasure
Experiences
Self-expression
Personalization
Taylor is a new generation luxury consumer and opts for entry-to luxury brands that fit within his finances, but aspires to grow into the luxury brands he avidly follows on social media which include Gucci, Dior, and Balenciaga. His genderless style preferences continue to evolve and allow him the freedom to be experimental with his aesthetic, which makes it hard for him to stay loyal to specific brands. As a digital native, Taylor prefers to shop online and his shopping decisions are influenced by celebrities like Harry Styles and style influencers like Bryan Boy.
Although Taylor appreciates quick and convenient shopping experiences, he still prefers to pop in-store to get the full brand experience, interacting with the items he’s interested in prior to making a purchase online. With his entry into luxury, Taylor has been very discerning about the brands he shops, opting for socially responsible brands that champion the causes he values, from racial equality to LGBTQ+ rights. Chanel has been part of his aspirational consideration set over the years but feels the brand is not inclusive enough to accommodate his needs as a future consumer.
Location: Los Angeles
To develop authentic, values-driven affinity for Chanel
Entry into Chanel through inclusive brand experiences
To connect with the brand’s collections in-person
No access to shop Chanel fashion and accessories online
Limited points of memorable brand discovery in stores Limited visibility around Chanel’s social impact efforts
Explore fashion week updates on new seasons shows
a live Chanel show
Visits blogger @bryanboy's IG profile for pre-show teasers, spots the Chanel Cruise unboxing post
Watches IGTV and web recaps of the Chanel FW'21 show
Navigates chanel.com and @chanelofficial on IG to discover options to add to his Chanel wishlist
Engages with accessories and ready-to-wear pieces in Chanel boutique
Experiences Chanel boutique as discovery, transactionless
future purchases
Researches Chanel's social responsibility efforts and reviews to confirm brand consideration
Limited points of memorable brand discovery in stores
Limited visibility around Chanel’s social impact efforts
Millennial and Gen Z consumers.
Seeking authentic luxury brand experiences.
New generation of luxury shoppers.
Digital pioneers and digital natives.
Purchasing from socially responsible brands.
Values-driven, focus on inclusivity.
Aligning with purpose-driven luxury brands.
Engaging in memorable brand experiences.
Positive and negative reviews. Brand recommendations. Which influencers to follow.
The rise and significance of circularity.
Exclusivity as barrier
Limited online access
Limited brand discovery IRL
Inclusivity
Digital innovation
Elevated brand interactions
Experience = moments of fantasy
Active brand participation
Value creation
Brand activists.
Hyper-engaged on social media.
Digitally savvy, online shoppers.
Connect with innovative luxury brands online and offline.
Mix of luxury and premium brands.
Pop culture, social, environmental & political wokeness.
Shift to secondhand / pre-owned luxury.
Blogs, vlogs, social media, fashion magazines, livestreams.
Want authentic brand interactions and storytelling.
Want to be affiliated with brands that share their values. Identity, uniqueness and individuality important.
by generation (2016)
In 2016, Millennials (Gen Y) and Gen Z accounted for a combined 30% of the luxury growth markets, with analysts anticipating rapid growth rates of nearly 50% over the next decade.
by generation (2025)
Compared to 2016, Millennials (Gen Y) and Gen Z are estimated to account for a combined 60% of the luxury goods market, with Millennials alone accounting for nearly half.
Millennials are expected to become the largest spending generation by 2035.
The most important part of this proposal is appealing to the target audience. Chanel has an exceptional social media presence which is an asset that can be easily leveraged to achieve the reach for Gen Z and Millenials who are heavily active on social media platforms. The consumer experience is the main focus of this campaign as we have concluded that within the new demographic population, there may not be a purchase intent due to a lack of financial resources. However, we will leverage the consumer experience for the customer journey to keep the target audience engaged with the brand. Additionally, accessories such as jewelry will be featured in the campaign in order to highlight items that are at a more affordable price point.
The purpose of conducting our secondary research was to better understand the roles, behaviors, and identities of Millennial and Gen Z consumers within the luxury goods market. What, where, why, and how do they use their time or money to interface with luxury brands? By better understanding these dynamics, it is possible for our team to craft a tailored marketing strategy that can successfully meet the needs, wants, and values of both Millennial and Gen Z consumers. By 2025, analysts expect that Millennials and Gen Z will account for over half of the luxury goods consumer market, with Millennials becoming the most spending generation in history by 2035. Currently, however, those percentages are much lower (hovering around a combined total of 30% – which is unsurprising due to these generations’ average current financial position. So our question becomes: how do we reach these consumers now in order to build lifelong relationships that are more financially beneficial in the future?
Our secondary research has revealed the most promising answer: to raise awareness, promote engagement, and drive satisfaction through a robust marketing strategy focused on the experience economy. It must be noted, however, that Millennials and Gen Z are unique and as such our strategy must be uniquely tailored to them. To supplement our secondary research findings concerning the general identities of Millennial and Gen Z consumers within the luxury goods market, we must now turn our focus toward conducting primary research from consumers.
To conduct primary research, our team will use a combination of surveys and interviews. We will create a simple survey for our peers to participate in to gather insights pertaining to brand awareness, desirable experiences, affordability, and purchase intent. We will utilize this data to draw conclusions about consumer needs and the audience. Since most of our peers and friends fall into the Gen Z and/or Millennial population, we can feel fident that the sample groups align with our intended target audience. This market research will direct the ary focus of the campaign. While it is our intention to highlight both on experience and accessories, it will be t to determine which of these should take precedence. Also, this research will help us cater the consumer xperience to the needs of our target audience.The question we will pose will offer options for the type of experience that is most desirable to the target audience.
3 Ways Millennials And Gen-Z Consumers Are Radically Transforming The Luxury Market. https://www.forbes.com/sites/pamdanziger/2019/05/29/3-ways-millennials-and-gen-zconsumers-are-radically-transforming-the-luxury-market/?sh=5509d10a479f. Accessed 4 July 2021.
Arunitocifu, Fatula B. “Our Impact - CHANEL Foundation.” Fondation Chanel, https://www.fondationchanel.org/en/our-impact/. Accessed 4 July 2021.
Chanel’s Latest Collection Is Millennial-Friendly. https://www.refinery29.com/en-us/2019/12/8970948/chanel-pre-fall-2020-collection. Accessed 4 July 2021.
How Can Luxury Brands Engage Gen Z? Chanel Has a New Idea – International Luxury Management. https://luxurymanagement24.wordpress.com/2019/03/11/16104/. Accessed 4 July 2021.
How Chanel Became the Most Social Luxury Brand. 25 Aug. 2017, https://luxurysociety.com/en/articles/2017/08/how-chanel-became-most-social-luxury-brand.
Inside Chanel’s Digital Strategy | Vogue Business. https://www.voguebusiness.com/companies/inside-chanels-digital-strategy. Accessed 4 July 2021.
“Millennials vs Gen Z: 4 Differences in What They Care About.” Criteo, 20 June 2018, https://www.criteo.com/blog/millennials-vs-gen-z/.