Market Research

Research Proposal Chanel

Gwendoline MommejaInstructor: Jeannette GuignardFall 2011

Content● I – Introduction ● II – Research question● III – Purpose of the study ● IV – Research methods ● V – Data Collection Plan ● VI- Data Analysis ● VII – Conclusion

Introduction: Chanel

● French Luxurious brand ● Found in 1909● By French couturier Gabrielle Coco● Headquarters is located in Paris, France

● Offerings: Design clothes, Cosmetics, Fragrances, Accessories, Jewelery

K

Research statement

Brand Re – Position :

How can Chanel capture a younger target market?

Purpose of the StudyOpportunities:

● Attractive demographic● Growing purchasing power● Increase sales & profits● More competitive ● Shape future customers preferences● Build up a brand loyalty in an early age stage

2 million of women between 25 – 35

(census 2010 in USA)

Research MethodsSecondary Data

Internal External ● Products / Sales reports

● Customers infos

● Interview with the personnel

● Define the purchase's type● Frequency / amount of cosmetics purchase ● Understand expectations / behaviors

● American census 2010

● Hoover

● Business Source Complete

● Importance of the market

+Low cost

Fast

-French company Old information

Research Methods

Primary DataQualitative

● Depth Interview

Macy's / Perfumery Women : 25 – 35High education Good income

12 Participants

● Focus Group

5/6 Participants

Women : 25 – 35High education Good incomeUsing cosmeticsInterested in Fashion

+ - + -Details TopicsComfortableHonest

ExpensiveTime consuming Interpretation Compare

Details TopicsSpontaneityStimulationNew ideas

Validity Accuracy Time consumingInterpretation

20 % off on all Chanel Purchase

Research MethodsPrimary Data

QuantitativePersonal Survey Email Survey

● Face to face interview ● Cosmetics department store /

perfumery● 100 women between 25 – 35 years

old● High educated / income ● Interested in fashion / cosmetics

+ -● Direct contact● Increase the response rate● Build a relationship

● Bias● Influenced● Time consuming● Expensive

● Written questions sent by regular email● 100 or more women 25 – 35 years

old ● High educated / Income● Database / Customers

+ -● Young market using Internet ● Cost effective● Better quality ● Comfortable / honest

● Low responses● Junk mails● Missed / misunderstood

Research Methods

Help us to collect information:

● Attitudes

● Intention of purchasing new fragrances

● Behaviors

● Motivation to the trends / brands

Survey 2011

Participants will receive a gift including samples of Chanel best products

Data Collection Plan

Generation Y

Average of 100 women 25 - 35

Well educated

High income

Using cosmetics

Non probability sampling method

Cosmetics department store / Perfumery

Data Analysis

Edit: Computer programsCode: Code book personal to Chanel Entering data:

● Simple tabulation (criterion variable ex: amount spent in perfume per year)● Cross tabulation (predictor variable ex: age & income)● Correlation analysis (measure the degree of closeness between 2 variables)● Cluster analysis (identify our target market)

Conclusion

● Conduct regularly market research to understand our new market and be competitive

● Future research: capture a new market / middle market & teenagers on the upper class

Create a strong brand loyalty with its customers by influencing them in an early stage and during their

different life cycles.

Thank you for your attention