N05 LEAU as a Product of the Chanel Company Analysis - Paper Example

Paper Type:  Report
Pages:  7
Wordcount:  1868 Words
Date:  2021-06-01

Introduction: Company, Brand, and Product

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N05 LEAU is a product of the Chanel Company. The Chanel Company began way back in 1921. The company has produced approximately fifty-nine perfumes in its fragrance base. The earliest edition of the companys perfume was done in 1920 while the newest is from 2014. Chanel No.5 was launched by Couturier Gabrielle Chanel. French-Russian perfumer and chemist Ernest Beaux compounded the chemical formula for the fragrance. Chanel n 0 5 l'eau is a fresh, modern as well as vibrant embodiment of an everlasting scent (Chanel.com, 2014). It is audacious and timeless, sophisticated and simple. It is regarded as N05 of today.

N05 LEAU was composed by Olivier Polge who is a perfumer at the Chanel Company. The product is characterized by dynamic, crisp top notes of lemon, orange that exhibits transparency and lightheartedness and also Mandarin. The symbolic heart of the spray unfolds with jasmine, rose as well as a new fraction of ylang-ylang which is considered more modern than ever before. Furthermore, behind the floral whirlwind, there lies a sense of liveliness: in particular the vibrant echo of the cedar integrated by cottony and soft must notes. The perfume comes in a spray for diverse use with simplicity in the application on clothing or the skin.

The design of the product features a classic bottle with a new continuous misting spray. The beveled glass is crystal clear just like water. This design signifies or is rather an expression of elegance and simplicity.

Internal (Micro) Analysis: Customer, Competitor, and the company


Just like any other product being produced in the market, the producers must always have a clear and distinct target market that they are aiming at satisfying (Goldman, 1987). For the case of Chanel n 0 5 l'eau, the main target market is the females. In specific women aged between the 18 and 30 years of age. However, for this product, the company aims at the upper-class women since they are not only sophisticated but also love to be associated with luxury products that make them identifiable with a particularly high-end class. Furthermore, women with high disposable income are the potential customers of this product. Traditionally, fragrance worn by women had focused on two primary categories which are respectable women favored the actual essence of a single garden flower as well as sexually provocative fragrances which are often heavy with jasmine or animal musk which were mainly associated with females of the courtesans, demi-monde or prostitutes (Atwal, 2009). The Chanel Company felt that it was the high time it debuted a scent that could epitomize the flapper. Therefore, the development and creation of this perfume were mainly to target the high-end women in the society, since they all want to have a scent that brings about respect and elegance.


The company faces stiff competition from other fragrance companies that are giving them a ran for their money. The direct competitors of the N05 LEAU product include Dior, LOreal, Gucci, and Guerlain. The indirect competitors to the company are the Aromatherapy scents and Body sprays. Despite the stiff competition in the market, the company thrives on maintaining and growing its market niche by offering a product that meets and exceeds the needs of its target market (Atwal, 2009). It engages in fair market competition with its competitors. Some of its marketing strategies that it uses to remain at the top of other competitors are through its pricing strategy where it targets the high-end market by producing a relatively expensive product but of top notch quality which is commensurate with the price.


The adage that joining hands makes an operation simply is well understood by the Chanel Company. It has partnered by some collaborators so as to ease or rather gain assistance from other firms. The companys collaborators range from its suppliers, retailers, and its intermediaries. Its supplier collaborator is the Amazonian Resources in Brazil; the retailer is the Chanel Stores and online while the intermediaries are the Upscale Department Stores. By collaborating with these agencies, the company has been run its operations with much ease as opposed to when it could be on its own.

External (Macro) Analysis: PESTEL

This section will look into the external environment that affects the company which they have limited control over. The political economic, social, technological, environmental and legal issues will be examined.

Political analysis

There are various policies and regulations put in place in by the government that affects the production of the N05 LEAU product. In particular, consumer protecting laws have a great influence on the production of the product. The new EU policies and regulations threaten N05 LEAU with labeling regulations and ingredient bans. They are regulating its production since it is believed to contain allergic ingredients that might have side effects on its users. They thus have a keen interest to certify the ingredients used in the production of the product.

Piracy regulations laws: this is another law that is affecting the production of N05 LEAU. These regulations are aimed at establishing a strong code of conduct to curb acts of piracy from taking place. It aims at completely eradicating piracy, however, if this cannot be totally eradicated at least it is reduced to significant levels. This is a positive policy on the side of the company since acts of counterfeiting will be at a minimum. It is a positive policy that must be fostered by governments so as to protect local production.

Economic analysis

There is a general increment in the purchasing power of customers: statistics indicate that there is a general increase in the middle-class population. With the increase in this population, means an increased salary. Consequently, increased salary results into the power to spend in luxurious products and services (Atwal, 2009). This is a positive sign for N05 LEAU as more consumers will have the willingness and the ability to purchase it.

Recovering economic crises: over the past few years, there has been an improvement in the economic crises making us have a positive vibe in the consumer behavior. With improved economy, there is a general increase in peoples purchasing power and this way it is almost guaranteed that sales of the N05 LEAU are most likely to increase too.

Globalization: with globalization, companies have been able to expand their operations and market to neighboring countries. Just as these companies Chanel Company has not only been able to penetrate the market of its neighboring nations such as France, Netherlands, and the EU but also sold the N05 LEAU product to the farthest corner of the globe including Latin America and Asia.

Social analysis

Changes in the family structure: significant studies show that changes in the family structure have fostered the sale of N05 LEAU. Furthermore, in the recent days, a lot of Asian people do live in nuclear families, and consequently, this has made their spending on luxury products such as N05 LEAU to increase.

Appealing: the design of N05 LEAU is attractive and appeals not only to the higher class of customers but also to the middle and lower class people. Furthermore, it has an outstanding packaging. It's renewable packaging has helped reinvigoration of the once used package or the discarded package.

Cultural: in this modern era, N05 LEAU has been able to motivate people to self-engage in diverse activities that the luxurious N05 LEAU product has to offer. Furthermore, movie stars such as Nichole Kidman, Brad Pitt among other well-renowned celebrities have played an active role in the ad campaigns of this product.

Technological analysis

Technological developments: previously, the ingredients used were not purely natural in their natures, however, today with the improvements in technology, there is a possibility of formulating raw materials that are used in the production of fragrances, due to which people can depend on the N05 LEAU product.

Generation X: this generation simply denotes the era in which everything has revolutionized thanks to the development of information technology, and broadband has utilized all around the globe with the highest internet connection. With this high-speed internet, people have been able to view services and products they need more quickly with just a click of a button (Slideshare.net, 2014). Through these technologies, marketing of N05 LEAU has been much easier, efficient and very convenient.

Environmental analysis

Going green: organizations are going green in a bid to conserve the environment, a good example of such an organization is the Amazon Company. Another element is packaging, the Chanel company, in specific the packaging of N05 LEAU is renewable thus has reduced the waste, therefore, helping in environmental conservation. Furthermore, through the animal right protection, there is a strong regulation in the killing of animals such as musk and civet for raw materials which are used in the production of perfumes. Through this ban, the ecological cycle has been greatly conserved.



1. There are many competitors that have the same business. In addition to that, they are also strong

2. The production also suffers a downturn and slowdown in economic

3. Another possible threat is the price wars and also counterfeits

4. There are also some brands that are less costly and lower compared to them that are trying to sell at cheaper rates while imitating their styles that are timeless


They can trade in the market of Asia because of the huge development in the Asian economy, mainly in China and India. It may also put into consideration the idea of bringing in additional flagship outlets to be able to counteract the demand which is increasing at an unprecedented pace (Hill & Westbrook, 1997).

There are a lot of expansions that are in progress abroad.

E-marketing an online sale has fostered the awareness of this product.

Create competitive benefits in different sectors of business.

The company has the opportunity of targeting the youth as they are more energetic to styles.


There is a risk of brand dilution due to the diversity in the range of products.

A lot of investment in campaigns to promote the product while at the same time meeting the need to protect its image requires a lot of capital.


The product has a strong brand equity.

It has a good boding value with its retailers and suppliers.

The management of the company under which the product falls is excellent

The product is quality, and even the Chanel Company won the 2013 luxury marketer of the year.

Marketing Strategy

Marketing strategy entails the current segmentation, positioning, targeting and differentiation of the market (Baker, 2014). They are essential for pushing the sale of the product. Channel Company has done a lot to ensure that all these are taken into consideration.


Most of the customers using N05 LEAU perceive our market as a product that is conducive to both men and women. N05 LEsAU is also associated with direct marketing having individual consultancy as well as providing diverse qualities in one product.

Current segmentation

Most of the people using this product are people aged between 20 and 40 years. They want to smell good whenever they are in public places. However, most of the clients do not like chemical ingredients, and that is why N05 LEAU has very less chemical content. Currently, there is the increase in the use of the product.


The main target market for the perfume is elite and middle-class men, people who are aged between the age of 20-60, celebrities and worldwide availability.

Marketing differentiation


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N05 LEAU as a Product of the Chanel Company Analysis - Paper Example. (2021, Jun 01). Retrieved from https://midtermguru.com/essays/n05-leau-as-a-product-of-the-chanel-company-analysis-paper-example

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