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THE MEDIA BUSINESS: ADVERTISING Chanel makes a big pitch for a new perfume aimed at young women, its toughest market.
FOR the last 81 years, the Chanel name has carried a special resonance for women 30 and older, who have made Chanel No. 5 the world's leading fragrance. But the younger market has proved elusive for Chanel, a state of affairs it intends to change with the introduction of its latest fragrance appealing to 20-somethings.
Chanel's name for the new fragrance -- Chance -- is fitting. To capture the fancy of this fickle group of women of ages 18 to 29, Chanel is giving Chance the biggest marketing push in the company's history -- with an introductory budget estimated at more than $12 million. Chanel is flinging itself into a market already crowded by competitors' earlier entrants, like Happy by Clinique and CK One from Calvin Klein.
Chanel's aggressive plans are self-explanatory, industry observers said. ''Young consumers are the lifeblood of the beauty industry,'' said Irma Zandl, president of the Zandl Group in New York, a consulting company that specializes in the under-30 age category. ''A brand not recruiting teens or young adults is just getting old.''
Over the last six years, Chanel has gradually made inroads into the younger consumer market. In 1996, the company introduced Allure, marketed to women in their late 20's and 30's. Coco Mademoiselle soon followed, and its target market was women 25 and up.
''So, it's not something that, you know, we just woke up one day and said 'Oh, uh-oh, No. 5 customers are aging, we better go find a younger consumer,' '' said Laurie Palma, senior vice president for fragrance and Internet marketing at Chanel in New York.
But neither Allure nor Coco Mademoiselle has made great inroads into the 18-to-34 market, which represents a third of the $2 billion women's fragrance market. According to a study by NPD BeautyTrends in Port Washington, N.Y., which tracks the beauty industry, the leading brands owned and used most often by women 18 to 34 in 2001 include: Happy by Clinique, which had overall sales of $101 million in 2001; Romance by Ralph Lauren, at $63 million; Tommy Girl by Tommy Hilfiger, at $42 million; Victoria's Secret Divine (which is not tracked by NPD, but has annual sales estimated at $40 million); Lancaster Cool Water Woman at $30 million; Calvin Klein's Obsession at $27 million; and CK One at $20 million.
Chanel's name for the new fragrance -- Chance -- is fitting. To capture the fancy of this fickle group of women of ages 18 to 29, Chanel is giving Chance the biggest marketing push in the company's history -- with an introductory budget estimated at more than $12 million. Chanel is flinging itself into a market already crowded by competitors' earlier entrants, like Happy by Clinique and CK One from Calvin Klein.
Chanel's aggressive plans are self-explanatory, industry observers said. ''Young consumers are the lifeblood of the beauty industry,'' said Irma Zandl, president of the Zandl Group in New York, a consulting company that specializes in the under-30 age category. ''A brand not recruiting teens or young adults is just getting old.''
Over the last six years, Chanel has gradually made inroads into the younger consumer market. In 1996, the company introduced Allure, marketed to women in their late 20's and 30's. Coco Mademoiselle soon followed, and its target market was women 25 and up.
''So, it's not something that, you know, we just woke up one day and said 'Oh, uh-oh, No. 5 customers are aging, we better go find a younger consumer,' '' said Laurie Palma, senior vice president for fragrance and Internet marketing at Chanel in New York.
But neither Allure nor Coco Mademoiselle has made great inroads into the 18-to-34 market, which represents a third of the $2 billion women's fragrance market. According to a study by NPD BeautyTrends in Port Washington, N.Y., which tracks the beauty industry, the leading brands owned and used most often by women 18 to 34 in 2001 include: Happy by Clinique, which had overall sales of $101 million in 2001; Romance by Ralph Lauren, at $63 million; Tommy Girl by Tommy Hilfiger, at $42 million; Victoria's Secret Divine (which is not tracked by NPD, but has annual sales estimated at $40 million); Lancaster Cool Water Woman at $30 million; Calvin Klein's Obsession at $27 million; and CK One at $20 million.
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