(Tiểu luận) group report analyze a dior beu customize lipstick product and make relatedoperational decision

NATIONAL ECONOMIC UNIVERSITY _*** _ GROUP REPORT Analyze a Dior BeU customize lipstick product and make related operational decision Students: Tạ Ngọc Mai, Hoàng Khánh Hương, Tăng Hà Anh, Nguyễn Phương Anh, Nguyễn Hồng Vân, Đặng Diệu Hương, Nguyễn Phương Thảo, Phạm Hoàng Khánh Linh, Nguyễn Minh Châu, Trịnh Phương Thảo Major: Operation management Intake: 63 Class: Quality Management and Innovation - EMQI TABLE CONTENT I INTRODUCTION About Dior 2 Introduction of service Operational decision Business environment analysis II PRODUCT DEMAND FORECAST III PRODUCT DESIGN 14 House of Quality 14 Product document 15 IV PRODUCTION PROCESS 18 Mass Customization 18 Job shop manufacturing 18 V LOCATION STRATEGY 20 Location decision and factors 20 affecting Factors affecting decisions 22 Factor-Rating Method 22 VI STORE LAYOUT 23 Outside 23 Inside 23 I INTRODUCTION About Dior Christian Dior SE is a holding company, which engages in the design and sale of fashion accessories and beauty products It operates through following business groups: Christian Dior Couture, Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, The Selective Retailing, and Other Activities The Christian Dior Couture group designs, manufactures and sells luxury articles The Fashion & Leather Goods group manufactures leather handbags, shoes and small leather goods The Wines & Spirits group produces various wines and other spirits The Perfumes & Cosmetics group sells fragrances and cosmetic products The Watches & Jewelry group designs and sells watches The Selective Retailing business group comprises the Group's own-label retailing activities The company was founded by Christian Dior on October 8, 1946 and is headquartered in Paris, France Dior’s emphasis on the hyper-feminine reflected in Dior’s beauty offerings Dior Beauty has expanded to include luxury makeup and skincare, something that also started early in the brand’s lifetime after perfume Modern launches, such as Dior Addict Lip Glow - a sheer, almost balm-like lipstick - are updates to the original classic lipsticks and are still popular today Introduction of service a What is BeU? The BeU lipstick from Dior is more than just a cosmetic product It offers customers a chance to explore and affirm their identity through a personalized lipstick creation experience Customers can blend the basic lipstick colors provided by Dior to create a unique shade that suits their individual preferences Throughout the process, customers receive expert guidance on choosing the right lipstick color Once the color is finalized, the staff will package the lipstick, and customers can even customize it further by engraving their name on the stem This creates a personalized imprint that makes the lipstick truly one-of-a-kind b Why choose BeU? Dior is a brand that focuses on both product quality and service quality for customers Understanding the insights of target customers, BeU is a unique combination to provide participants with an enjoyable experience and quality products This product will be the first explosion in the high-fashion market for participants to create their own lipstick c Message: ‘To explore and cherish your beauty’ The complexity of society erodes people's edges, but their nature still has a desire to find their unique beauty Dior is always ready to accompany customers on the journey to find the unique beauty of customers Operational decision a Design and development - Procurement of raw materials from all over the world by designers - Style created & developed - Prototype samples made before a collection and sent to headquarters b Supply and manufacturing - Fabric purchased from textile suppliers & Supplied - Garments manufactured for retailers - Transported to Central Warehouse c Logistics and client deliveries - Central warehouse to stores, distribution centers across continents d Distribution - 160 boutiques worldwide - Clothing is exclusively sold in Dior stores - Other retailers only carry licensed Dior products like eyewear,perfumes,bags etc - Network expanded to 165 Duty Free Shopping Outlets - Reducing no of licenses to regain control over its products and achieve efficient management e Current information technology - Electronic Data Interchange - Allows for communication from outside and internal sources such as retail stores and factories to improve supply chain f Supply of products - Outsourced to QRS Corporation - Implemented Tradeweave Retail Network - Tradeweave Sourcing is a powerful tool to Dior to enhance its supply chain management, optimizing the entire manufacture-to-delivery process in collaboration with supplies It works within Dior’s existing systems to create a solid foundation for an even more successful operation - Through this network solution, QRS offers retailers, vendors and their trading partners global sourcing and logistics, merchandise planning, retail intelligence, digital photography, marketplace and a host of enabling products and services for effective supply chain management - Helps Dior to integrate and enhance management of outsourcing and tracking - Monitoring of various stages of the procurement process of its imported goods Business environment analysis 4.1 Environment factors a Political factor: Christian Dior is a premium brand with a broad selection of products, known to its customers simply as Political stability is crucial for a luxury brand to function well around the globe It must consider every political scenario because it works in several different countries Although operating worldwide, Christian Dior is primarily based in France Because of this situation, Dior has to be familiar with and manage the political scenarios in every country it operates in The corporation must take into account and closely monitor the political climate in France, though, as it is the parent country of Christian Dior Couture In order to prevent dispute, the production of their haute couture and jewelry items complies with French law b Economic factor: It is crucial to examine the economic aspects that can have an impact on Dior's operations since they could influence if the company is successful in a certain nation A major factor is how much unemployment there is in the country where their manufacturing facility is being built A higher unemployment rate indicates that there are more workers looking for jobs Because there will be relatively little work available compared to the company's real need, labor expenditures may thus be kept to a minimum The loan rate is the second aspect of a nation's economy that Dior must analyze Increasing interest rates will make it more difficult for Dior to get loans since they will have an impact on the company's finances Last but not least, because Christian Dior Couture works in several nations throughout the world, those nations' exchange rates to the US dollar or the euro need to be favorable This knowledge gives Dior an extra benefit c Social factor: The change in population mix is a major advantage for fashion and luxury brands like Christian Dior Young people today are interested in fashion and frequently follow high-end labels like Christian Dior Even so, there are still some elderly people who buy luxury products for their collection to show their identity and financial ability The demographic divide by sex, age, and most significantly, economic level, should be the main focus Money is a concern for luxury businesses like Dior, therefore they take care to concentrate their marketing efforts on those customers in order to keep them d Technological factor: This decade has seen the use of technological technologies put fashion and luxury goods under scrutiny Christian Dior uses RFID to track their materials and manufacturing process as well as in their stores where there is an interactive augmented reality and virtual reality that can be experienced in their dressing rooms 4.2 Dior's competitor analysis Document continues below Discover more from: Operations Management Đại học Kinh tế Quố… 132 documents Go to course 37 17 29 12.3 Phạm Tố Uyên OM - OM_Individuals_123 Operations Management 100% (1) OM Group-3 Report Business Idea Operations Management 100% (1) Report Artemis Smart Watch Operations Management 100% (1) Tài liệu OM - OM document Operations Management Final Paper Operation… 100% (1) Operations Management 100% (1) Operations and Dior's competitors include Chanel Beauty, Gucci Beauty, Project Management 27 Competitors Chanel Strengths Gucci Operations 100% (1) Most important Management findings of Dior Say no to Unique outer shell BeU lipsticks also sales design, impressive offer an exceptional Soft creamy Expensive prices and personalized lipstick create class experience that sets Appreciated Every season, for safety, Gucci lipstick when natural comes out with mineral color different products, suitable for the weather, and impressively trending them apart from the competition Customers will be free to create their own lipstick colors under the guidance and advice of Dior experts One of the notable strengths of the product is the use of high-quality ingredients No color Be careful when Given the high variety using it because it price tag, BeU contains a lot of lipsticks are a lead relatively new High price product in a fiercely Color not stable Weaknesses competitive market, which can pose a number of challenges Furthermore, there may be potential challenges in the production and supply chain for the customized product II PRODUCT DEMAND FORECAST To find out the requirements and expectations of customers for the new BeU product line, we conducted a survey by using a questionnaire method with 11 questions The purpose of this survey is to test ideas, features and criteria of the BeU product line in order to design a house of quality diagram The questionnaire has 11 questions, which are: - How old are you ? - Your gender is ? - Do you usually use high-end lipsticks ? - How much are you willing to spend on lipsticks ? - What criteria you base on when you buy lipsticks ? - What is your favorite lipstick texture ? - Do you have any difficulties finding a suitable lipstick color ? - What kind of lipstick packaging will attract you ? - What is your favorite level of a customized lipstick product made particularly - Do you want to create your own lipstick color ? - Do you want to make your own mark on the lipstick ( engraved name , for you? signature ) ? Our survey subjects are people with stable middle and high incomes The questionnaire has received positive feedback from customers as we have received 412 responses in just days 65.9% of the 412 people who took the survey are female, 14.6% is male, and 19.5% are people of the third gender It is clear that women are more likely to be interested in using cosmetics, therefore we will focus on developing and promoting marketing campaigns, creating the packaging as well as designing characteristics of products specifically for this gender In addition, with the message highlighting the uniqueness of the BeU product line, we believe that people of the third gender will also be our potential customers The majority of customers interested in this product line are between the ages of 18 and 28 It is clear that people in this age range have a strong demand for beauty and a want to demonstrate their uniqueness In addition, people in this age group are mostly unmarried therefore they spend a lot of time and money investing in themselves From the above two questions, we decided that the target customers of the BeU product line are female customers between the ages of 18 and 28 years old In addition, we also focus on customers who are of the 3rd gender because they also have a strong desire to express their personality Due to their improved understanding of beauty and self-care, the majority of consumers today prefer to use high-end cosmetics Additionally, as people's incomes increase, there is a rising desire for luxury beauty products This is demonstrated by the fact that 24.4% of consumers usually use high-end cosmetics, 22% use them frequently, and 41.5% sometimes use them Most of the respondents to the questionnaire usually pay between 500,000 and 1,500,000 VND for a lipstick More than a quarter of people surveyed are willing to spend more than 1,500,000 VND for a lipstick It is possible to spend a lot of money on a beauty product for customers in the intermediate and high-income segments 46% customers choose their lipsticks based on their quality, 25.4% are attracted by colors, 15.9% buy lipsticks because of the cheap price and 12.7% want a product that has eye-catching packaging From this statistic, our product specification will focus largely on quality and color Because most customers want a lipstick of good quality and suitable shade 10 Our products will be created with matte texture because most customers prefer owning a matte lipstick over other lipstick textures The number of customers choosing matte lipstick accounted for 43.9% while creamy lipstick and tint lipsticks are only 29.3% and 14.6% respectively Our product offerings will depend on the requirements of our customers and are tailored to each individual customer Because the number of customers who are interested in customizing lipstick is 80.5% and the number of customers who are not too interested is only about 17.1% 11 Packaging design is also an influence on the purchase intention of customers, so this question provides information about the type of packaging that customers feel attracted to, thereby giving lipstick design in accordance with different customer preferences (results show simple design dark tones 56.1%, simple design light tones 17.1% and design with many eye catching patterns 26.8%) Therefore, on BeU's product line, there will be minimalistic design packaging with luxurious colors of the combination with black and gold The popularity of a lipstick made for an individual is also an important part of the BeU campaign, so the high level of customer love also partly predicts the success of the campaign The results illustrate that customers have a positive reaction to customizing their own lipstick product with the rate of “absolutely love it” are 34.1% , “like it” are 26.8% and “feel normal about it” are 34.1% 12 “Making your own mark” on lipstick is also a method to attract customers and it is also the message of the Beu product line so this question helps us identify the demand of customers for making their own mark on the lipstick 82.9% of people answering the survey want to own a lipstick that have their signature or their name on the case Therefore, we will provide the service for customers to engrave their special symbol In conclusion, our BeU product line is aimed at female customers with middle and high incomes In addition, customers of the 3rd gender are also our potential customers because of their strong desire to express themselves The desire of our customers with this product line are: suitable price, good quality, suitable color, and impressive packaging Our products are aimed at the high-end segment with high prices ranging from 1,500,000 to 2,500,000 VND About quality and color, we will focus on testing product ingredients and producing premium quality lipsticks Lipstick texture is also the customer's criteria when buying a lipstick Since most customers choose matte lipstick, this is also our chosen texture In addition, we realize that customers have a very high demand for a custom lipstick, so our BeU product line will allow customers to create their own lipstick color, while providing services of engraving names or signatures on lipstick cases III PRODUCT DESIGN: 13 House of Quality Technical requirements: The seven technical requirements for producing lipstick: safety ingredient, sturdy case, signature design, long-lasting color, optional color, compact size, cost of production Customer requirements: The four requirements for lipstick: good quality, suitable color, suitable price, impressive packaging Positive interaction: Compact size-Signature design, Signature design-Sturdy case Negative interaction: Safety ingredient-Cost of production, Optional color-Cost of product Important weight: - Safety ingredient: 5*9 + 3*3 = 54 - Sturdy case: 3*3 = - Signature Design: 5*3 = 15 - Long-lasting color: 5*9 = 45 - Optional color: 5*9 + 3*3 = 54 - Compact size: 3*3 = - Cost of production: 5*9 + 3*9 = 72 14 - Total important weight: 54 + + 15 + 45 + 54 + + 72 = 258 Relative importance weight: - Safety ingredient: (54/258) * 100 = 20.93 - Sturdy case: (9/258) * 100 = 3.4 - Signature Design: ( 15/258) * 100 = - Long-lasting color: (45/258) * 100 = 17 - Optional color: (54/258) * 100 = 21 - Compact size: (9/258) * 100 = - Cost of production: (72/258) * 100 = 28.29 Competitor comparison: There are competitors to which we will compare their similar products - custom lipstick with BeU: - YSL: Rough Sur Mesure Device Its price is 260 pounds (~7.5 million VND) - La bouche rouge: The custom color one’s price is 130 dollars (~3 million VND) Product document 2.1 Product a Packaging: The packaging design of the lipstick features a color scheme of black and gold Additionally, customers can opt to have their signature engraved on the lipstick's body upon request b Ingredients The formula of this product is made up of 90% natural-origin ingredients that 15 provide intense hydration and shine It contains jasmine wax, which is considered Christian Dior's lucky flower, and helps to moisturize the lips and create a smooth, comfortable texture Plum oil is also added, which is high in essential and omega fatty acids, nourishes and protects the lips for a full day Additionally, vegetable-based oils are included to ensure that the pigments are evenly dispersed and provide a flawless finish with extreme shine when applied in a single sweep 2.2 Service: - Model provide service of BeU: - Moments of truth