Innovation Strategy Based on Intrinsic Personality

is immutable, so if a brand wants to develop continuously, it must follow the trend, in accordance with the development of society. The brand must keep up with the trend of social development, that is, it is mandatory to strictly prevent the aging of the brand and carry out brand innovation. Brand image innovation is the most important component in the brand innovation strategy, that is, just constantly creating new brand images, adapting to changes in consumer psychology and it is the process of forming new impressions in the eyes of consumers.

Normally, businesses often focus on changing the packaging of their products. Packaging plays an important role in the success of marketing strategies. Packaging not only represents the product's positioning, but also creates consumer sentiment, creates an impression on consumers, and helps consumers associate with the brand. Packaging is associated with the brand through a combination of materials, styles, graphic designs, etc. For example, in the case of Levi's jeans. In the new era where environmental issues are emphasized, the outer packaging is made from recycled paper and printed with ink whose main ingredient is soybeans, instead of the packaging made from plastic paper as before.

b. Advantages

Brands can adapt to a certain stage, "refreshing" the brand to suit the business's development process and social awareness.

A new brand identity can provide greater new values: consumers feel that their brand is always updated, renewed to meet the trends and tastes of society. Thus, rebranding is to create new perceived values ​​for consumers.

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Branding is a long-term research process: having a new idea and expressing it in an impressive way will help the brand affirm its position and thereby penetrate deeply into the minds of customers.

Branding: making the brand stand out, attracting customer attention and helping customers escape the clutter of products on the market.

c. Disadvantages

In the short term, when implementing a brand renewal, a business will have to incur quite a lot of costs due to having to create and completely change the brand identity system, such as costs for companies to design brand elements, replacement costs, and costs to promote this new brand identity system from scratch.

In fact, very few businesses dare to innovate in appearance like that because to have a logo, a symbol that consumers remember, businesses have to work hard to build for a long time, the cost of "renewal" is very expensive. In addition, not all brand identity systems are good when renewed, some are even more confusing and complicated than the old one. Once a brand has been shaped in the hearts of customers, renewing it is always a huge pressure for businesses. For example, the case of Compaq renewing its logo


Figure 1.1: Compag's old and new logos



Source: http://lantabrand.com/cat2news5234.html (March 25, 2009)

The new logo is a complete failure. Compaq had better things to worry about than changing the logo, because the old one was pretty good. One thing to keep in mind here: it may not be great, but people are used to it. Replacing something that everyone recognizes, unless there’s a specific reason, is never a good idea. In this case, the square font was too risky.

2.2.2.2. Innovation strategy based on internal personality

a. Content

It is about bringing spiritual values ​​to customers. Brands are like people, need to convince consumers to accept the brand as a friend, not just a "one-time" meeting. Brands can renew their image or personality. And in the policy of renewing the brand's internal personality, reforming products to suit new needs is an important and easier part to implement.

Levi's is a prime example of this strategy. Last fall, the 150-year-old brand announced a new line of jeans with a distinctive red label. The introduction of a new style of jeans is not unusual, but the Levi's "Eco" jeans are made entirely from organic cotton. As consumers become more aware of the environmental impact of their products, the use of organic materials has become increasingly popular, stimulating the growth of the organic fashion industry. Levi Strauss & Co. believes that there is already a growing interest in its cotton jeans. Starting this year, the organic treatment used in Levi's Eco jeans will be applied to all of its red-label lines.

b. Advantages

Changing the internal brand personality has the same advantages as changing the external personality. However, changing the internal brand personality will make customers feel more deeply about the brand's innovation. The quality factor is always more important than the design factor.

c. Disadvantages

Changing a brand based on its internal personality is often difficult because once a brand has a personality, it will be deeply imprinted in the minds of customers and it is very difficult to change. Besides, the image of the brand in the minds of customers must be built over a long period of time, so changing that image will waste the company's efforts and resources for a long time.

In summary, Chapter I of the thesis has studied some theoretical issues about branding and some brand development issues as a basis for the thesis to specifically research the brand development strategy of Chanel fashion brand in the period 2000-2010.

CHAPTER II

CHANEL'S BRAND DEVELOPMENT STRATEGY IN THE PERIOD 2000 - 2010


I. General introduction to Chanel fashion brand

1. History of formation and development

Chanel SA, commonly known as Chanel, is a privately held French fashion company. When people mention Chanel, they immediately think of a high-end, luxurious and noble fashion label. Chanel was founded in 1909 with its headquarters in Paris. The founder of this brand is the legendary woman Gabrielle "Coco" Chanel. Currently, the Chanel company is owned by Alain Wertheimer and Gerard Wertheimer, who are the grandchildren of Chanel's original partner - Pierre Wertheimer.

Chanel's history of formation and development goes through 6 stages with 2 main timelines.

1.1. The Era of Coco Chanel

1.1.1. From 1909 to the early 1920s :

The Chanel brand was established and recognized

In 1909, Gabrielle Chanel opened a fashion house in Paris - the beginning of what would become one of the world's largest fashion empires. Initially, Coco introduced and sold fancy hats for women. Then, with the financial help of her friend Arthur Capel, she opened the first "House of Chanel" on Rue Cambon in 1921. After World War I, she opened another shop selling her own designs. Chanel fashion became famous throughout France for its simplicity, elegance and luxury. 1921 saw the launch of Chanel No.5 perfume. The launch of Chanel No.5 was a major turning point for Chanel. Today, this perfume, although very expensive, is the most consumed perfume in the world. Chanel truly created a great revolution in the world of high fashion.

1.1.2. Late 1920s : Chanel Parfum

Parfum Chanel was founded by Pierre Wertheimer in 1924 to introduce and sell perfumes and other fashion products. Wertheimer owned 70% of the company's shares while Coco owned only 10%. In 1924, Coco introduced her first haute couture collection, consisting of a pair of pearl earrings, one black and one white. In 1925, she introduced the world to the knitted sweater, and the following year she introduced the "Little Black Dress" collection. From then on, Coco Chanel truly became the most powerful woman in the fashion industry, not just in Paris.

As Chanel haute couture and Chanel Parfums gained success, the business relationship between Coco and Wertheimer deteriorated.

1.1.3. From 1930 to 1950:

Chanel and the Nazis

In 1932, Chanel launched a collection of expensive diamond jewelry. When World War II broke out in 1939, Coco Chanel retired and moved to the Hôtel Ritz Paris with her new lover, a Nazi officer Hans Dincklage.

When France fell under the control of Adolf Hitler in 1940, Pierre Wertheimer and his family fled to America, so Coco took over the Parfums Chanel. When peace returned to France, Coco was immediately arrested on charges of aiding the Germans. But British Prime Minister Churchill bailed her out and she was released. But with the discrimination of the people, Coco had to flee to Switzerland. At this time, Pierre Wertheimer returned and took over the company.

1.1.4. From 1950 to 1970:

Chanel is back

Chanel returned to Paris in 1953 and again partnered with Pierre for financial support. Their renewed partnership ended with Chanel once again becoming a leading fashion house. Chanel and her spring collection received a Fashion Oscar at the Dallas Fashion Awards in 1957.

In 1965, Pierre's son Jacques Wertheimer took over his father's business.

Gabrielle "Coco" Chanel died in October 1971 at the age of 87. Jacques Wetheimer bought the House of Chanel outright.

Alain Wetheimer, Jacques' son, took over the leadership in 1974. Back in the US, Chanel No. 5 was considered an outdated perfume. Alain invested millions of dollars in a brand marketing campaign, which gradually restored Chanel's position. At the same time, Alain successfully convinced Karl Lagerfeld to become the brand's head designer.

1.2. Post-Coco period to present

1.2.1. From 1970 to 1990

Karl Lagerfeld officially took over as head designer of Chanel in 1983. This talented designer satisfied the expectations of Chanel fashion lovers with designs that still had the style of Coco Chanel but were modernized to suit the reality. During the 1980s, more than 40 new Chanel stores were opened around the world. In 1986, the House of Chanel began to move into the field of watch production and in 1987, the first Chanel watch appeared and created a buzz.

1.2.2. The 90s

The company established itself as a leading fashion house in the field of perfume production and marketing in the 1990s. Strong and extensive marketing investments helped the company increase its revenue sharply.

In 1996, Chanel bought the gun manufacturing company Holland & Holland. The company tried to expand into gun manufacturing but was unsuccessful.

And 1996 also saw the launch of the Allure fragrance and its popularity, a fragrance for men.

In 1999, the House of Chanel launched its first skincare line, PRÉCISION.

1.2.3. From 2000 to present

Alain Wertheimer continued to hold the position of chairman of the board of directors of Chanel. The year 2000 saw the launch of the first unisex watch under the Chanel brand, the J12.

In the 21st century, to keep up with the younger generation, Chanel introduced the Coco Mademoiselle brand in 2003. In addition, the brand continued to expand to Asia with representative stores opened in Hong Kong and in Ginza in Tokyo, Japan.

2. Business field

After nearly a century of formation and development, Chanel has consolidated its brand in the fashion industry with the following main high-end product lines: Clothing, shoes, handbags, cosmetics and accessories.

2.1. Costumes

People still wonder what women would wear without Chanel. When Coco Chanel launched her eponymous fashion label in the 1920s, she introduced a way of dressing that was completely different from the general formula of women at that time: simple, unfussy and always accented by wearing jewelry.

A high-end fashion brand known all over the world. A typical Chanel outfit consists of a knee-length dress with neat embroidery, a blazer with gold buttons and black embroidery. This is a traditional design that has stood the test of time and is still as popular today as it was then.

In addition, small and meticulous patterns on the clothes are always emphasized by Chanel, creating unique features for the designs.

Coco Chanel's clothes have always been highly appreciated for their bold and powerful innovations. All the clothing designs were designed for the middle and upper classes. The innovative but seemingly eternal beauty of Coco Chanel's fashion has shown a magical innate talent of the designer Coco Chanel. And now that beauty has been perfectly inherited by the talent of Karl Lagerfel.

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