Reasons why Chanel Changed its Media Account
According to a statement by Chanel, Omnicom’s ability to impress through their strategic approach led to the selection of Chanel’s new global media agency effective from January. Additionally, Omnicom had a better understanding of the brand and was well organized around the requirements. Though Chanel has been in business with WPP for two decades, it opted to change to Omnicom because Omnicom has a better understanding of the business and is well organized with proper strategies that will significantly contribute to the penetration of Chanel in the market. Chanel targets working with Omnicom beginning from January because they bagged the deal after a strict competition pitch with WPP.
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Other Reasons why Chanel Changed its Media Account
Despite Omnicom being suitable to market the luxurious clothes by Chanel, the 2020 economic conditions and business environment contributed to the need for change in the market by Chanel. The COVID-19 pandemic resulted in a negative market value of the business since it generated an 18% decline in revenue from the previous year, 2019. In the bid to salvage the business from the effects of the pandemic, the business has come up with post-pandemic strategies to help it recover. Among the strategies is working with a media account that promotes both online and offline markets.
Other Companies that have Changed their Media Accounts
Apart from Chanel, Mercedes-Benz has also changed its global media agency to Omnicom. Mercedes-Benz applauds the ability of Omnicom to identify the target audience in the world. Mercedes-Benz is working with Team X of Omnicom to capture the attention of the online market. The union aims at increasing the market effectiveness by attracting customers from a wide range. Another company that has changed its media account is Warner Bros Studios that used marketing analytics to discover new insights. The company looks into their customer’s personal preferences. Warner Bros used the market analytics strategy to promote their film PAN, and the film selling increased by over 25%.