Ch. 11- Developing and Managing Products

A lot of companies spend a considerable amount of money developing new products. They are important for the growth of the company and their profits. Chanel offers the classic product items in their boutiques throughout the year while introducing new products with each fashion season. There are six categories of new products; Chanel established their products in some of them.

-New Product Lines- Chanel was known for the little black dress and the perfume No. 5, later expanded with watches, jewellery, eyewear, cosmetic products and luxury handbags.

-Addition to Existing Product Lines- Every season there is a new addition to a ready-to-wear established line. Also, a big addition to the bag line was the boyfriend bag.

-Improvements Or Revisions of Existing Products- the improvement of the packaging of the lipstick released in 2006. A lipstick is usually opened with two hands. With the Rouge Allures, the lipstick pops up by just one click.

-Repositioned Products- I think the best example is the famous Chanel suits and the Chanel No.5. They were both target to attract older women. However, the way of the advertising in last years, it targets also much younger customers, who want to be not only classy but also sexy.

After Coco Chanel, Karl Lagerfeld is the one responsible for the success of developing new products. He has never disappointed Chanel customers. The long history of the company is something that gives a big advantage in developing new products over new established competitive companies. Karl also uses his models, to create something special and original, which each customer will desire. The company uses the finest materials and manufactures. Chanel is one of the most successful fashion brands in the world.