Business Philosophy & Business Strategies used

The key to Chanel business philosophy was construction and producing traditional classics outliving each season's new fashion trends and apparel.

Chanel, as a brand, has proved its consistency and ability to remain at the top of the fashion market.  In order to do so, the company implements a business strategy to keep its products and name on top.  Chanel focuses on promoting new products instead of dwelling on past products.  They in essence employ a push strategy.  Let’s take a look at Chanel perfume for an example of how the brand does this.
Chanel’s push strategy is carried out in four separate business to consumer promotions.  First, Chanel consistently and quickly updates its official website to include the most up-to-date information about new products and promotions. The website also contains a direct channel and information for customers to contact the company as well as a place for customers to subscribe to get information or updates about Chanel products and areas of interest.  It is this direct contact opportunity that improves Chanel’s relationship with its customers.
Furthermore, Chanel advertises in the most famous fashion magazines around the world.  Although most other high end fashion brands are also in these publications, these magazines are the best place for Chanel to spread its latest fashion message to the correct customers. It is Chanel’s continued presence in these publications that confirms its continued presence on top of the fashion world.
Likewise, Chanel also promotes its products through television commercials starring famous figures.  For example, Chanel No5 perfume was promoted in a commercial with Nicole Kidman.  Using celebrities and famous figures to promote its products, causes consumers to view the products as having the same status as those celebrities who promote the product.  These commercials have a great impact on consumers worldwide and thus push the product on consumers.
Lastly, Chanel attracts audiences and potential customers by holding fashion shows in the most modern and fashion-forward cities throughout the world.  Chanel always has  a place at the most important fashion week shows around the world, and the company never fails to deliver an outstanding and professional show.  The elite status of these shows and those invited to them further reminds consumers about the status of the brand which translates from old to new products.
Through its use of a push strategy, Chanel takes the consistency of its brand image and translates that to its new products. The continual reminder of Chanel’s high status in the fashion industry keeps its brand at the top of the market. This helps the company compete with other high-fashion designers and acts as a barrier of entry to other brands trying to enter the market.