VIETNAM NATIONAL UNIVERSITY INTERNATIONAL SCHOOL MARKETING STRATEGY PROJECT Analyzing and proposing solution to improve the marketing strategy of Rouge Dior Couture of Christian Dior CLA
Introduction to Christian Dior and the Rouge Dior Couture Product Line
Introduction to Christian Dior
1.1.1 Business Scope of Christian Dior
Christian Dior is a luxury fashion brand that offers a wide range of products and services to its customers Its business scope includes the following:
Haute Couture : Christian Dior is known for its high-end, custom-made clothing for women
The brand's haute couture collection includes dresses, gowns, suits, and other elegant pieces designed for special occasions
Christian Dior's ready-to-wear collection caters to fashion-forward individuals seeking less formal and more accessible attire Comprising dresses, skirts, pants, blouses, and a range of wardrobe essentials, this line is available through Dior's retail stores and online platforms.
Accessories : Christian Dior offers a wide range of accessories to complement its clothing collections This includes handbags, shoes, sunglasses, scarves, jewelry, and other items that are designed to complete an outfit and add a touch of luxury
Beauty and Fragrances : Christian Dior also has a strong presence in the beauty industry, offering a range of skincare, makeup, and fragrance products Its beauty line includes products for the face, eyes, lips, and nails, as well as fragrances for men and women
Home and Decor : Christian Dior also offers a range of home and decor products, including tableware, linens, candles, and other luxury items that are designed to enhance the home environment
1.1.2 Dior's history and development milestones
Overview of Rouge Dior Couture Product Line
Rouge Dior Couture is a prestigious product line of the Christian Dior, which has been produced by Dior since the 1950s It is a product of Dior's dedication to creating high-quality and luxurious beauty products that are inspired by the fashion house's heritage and timeless elegance
One of the unique features of the Rouge Dior Couture line is its luxurious packaging The lipsticks come in sleek, elegant cases that are adorned with the signature Dior logo and feature a subtle yet eye-catching design This attention to detail extends to the lipsticks themselves, which are crafted using high-quality ingredients to ensure that they glide on smoothly and deliver rich, vibrant color
The Rouge Dior Couture range includes a variety of finishes, including matte, satin, metallic, and liquid allowing customers to choose the perfect lipstick for any occasion Whether worn alone or paired with other Dior beauty products, these lipsticks are sure to add a touch of luxury and sophistication to any look
The Rouge Dior Couture range
Business Performance in Recent Years
1.3.1 Sales Performance in Recent Years
Table 1.1 Revenue by the business group of Dior
The Perfumes & Cosmetics business group recorded revenue growth of 17% in 2022 (10% on an organic basis) Profit from recurring operations was slightly down as a result of a very selective policy of distribution to assert itself in the prestige universe Christian Dior enjoyed a remarkable performance, strengthening its lead
In terms of market share, Christian Dior's Perfumes & Cosmetics business group ranks among the top 10 global players in the industry According to a report by Euromonitor International, Christian Dior held a 3.8% share of the global beauty and personal care market in 2020, which includes both luxury and mass-market brands Within the luxury beauty market, Christian Dior is a leading player with a strong market position
In terms of market position, Rouge Dior is positioned as a high-end, luxury beauty brand that offers high-quality, long-lasting lipsticks and other cosmetics products The brand's image is closely tied to the iconic fashion brand Christian Dior, and it is known for its sophisticated and glamorous aesthetic In the Cosmetics category by region, revenues were strongest for the year in Asia (excluding Japan: 35%); followed by Europe (excluding France); then the U.S., France and Japan (beauty packaging com, 2022) However, as previously mentioned, Rouge Dior may struggle to differentiate itself from other luxury beauty brands and appeal to a younger, more diverse audience
Table 1.2 Worldwide revenue share of Christian Dior by geographic region of delivery in 2022
Current Analysis of Christian Dior France’s Marketing Strategies and
Internal analysis
Dior’s products are high quality and high priced Thus Dior's target market is people that are willing to pay at a high price for high-quality products that have a guaranteed and mostly target market is people who have great income Dior’s target market can divide into three segmentation
Table 2.1 Segmentation Table of Rouge Dior Couture
In terms of demographic perspective, Dior targets based on gender, income and occupation and social class Dior is a luxury product producer, so the price of the product will be set on a high price based on the quality of product and brand name Dior customers mostly are professional management level because those jobs can earn higher salaries so the price of Dior products can be accepted
In terms of Psychographic perspective, Dior expects the consumers are middle or higher social class Dior design is a noble direction that meets their preferences and it can match the Dior image They are also more willing to pay for the price Dior also targets consumers based on their lifestyle
In terms of Behavior perspective, Dior knows customers focusing on product quality and sales service Dior product quality has guarantee, if there is any problem with the quality of product the customer can get a one for one exchange
Overall, the Rouge Dior Couture lipstick line is positioned as a premium and luxury product that caters to a discerning and sophisticated customer base The product's segmentation and targeting efforts are focused on customers who value high-quality, luxury, and fashion-forward beauty products
Figure 2.1 “Positioning Map of Christian Dior - The Cosmetic Industry”
Christian Dior's positioning strategy in the market is one of luxury, exclusivity, and high-end fashion The brand has established itself as a symbol of sophistication, elegance, and glamor, appealing to a discerning clientele that seeks premium quality products and exceptional customer service.To achieve this positioning, Christian Dior has employed several key strategies:
● Positioning by price: Christian Dior has created a unique style that sets it apart from other luxury fashion brands The brand is known for its bold and innovative designs, which often incorporate intricate details and luxurious materials
● Branding: The brand has invested heavily in creating a strong brand identity, with a distinctive logo and branding that is instantly recognizable The brand has also developed a reputation for quality and excellence, which has helped to build trust with consumers
● Positioning by usage/by user: Christian Dior targets a specific audience of high-net- worth individuals who are looking for the best in luxury fashion The brand's marketing efforts are geared towards this audience, with a focus on exclusivity and sophistication
Differentiation is essential in the modern marketplace because of the ease with which organizations can either develop new products or source them from third party suppliers who are working with other big brands The increasing use of private brands in the retail sector is one of the best examples of it Christian Dior can differentiate its products in the cosmetic industry based on the quality of the products The differentiation should be based not on the premium-ness of the product but on the high quality features it packs in the current product and service offering
Rouge Dior Couture by Christian Dior is a range of luxury lipsticks that comes in various shades and finishes The lipstick is formulated with high-pigment concentration for a long- lasting and intense color payoff The brand also offers lip balms, lip liners, and lip primers that can be used with the Rouge Dior Couture lipstick
Rouge Dior Couture deploys intense couture color on lips for 16 hours of comfort Infused with naturally derived red peony and pomegranate blossoms, the lipstick is to be spotted for this limited edition with velvet, matte, and satin finishes
Image of Rouge Dior Couture
Christian Dior offers in-store consultations and makeup services to help customers find their perfect shade and finish of Rouge Dior Couture lipstick The brand also has an online virtual try-on feature that allows customers to see how the lipstick looks on their lips before making a purchase
Official Customer Service Website of Christian Dior
The cost of Rouge Dior Couture lipstick fluctuates based on location and specific shade/finish On the Christian Dior website, the average price in the United States is $45.00 (DIOR com, 2023) Nonetheless, pricing can vary depending on retailer, discounts, and promotions, as well as the region where it is purchased.
Effective communication is crucial for reaching potential customers Dior's comprehensive marketing communication strategy plays a vital role in conveying its unique brand message and addressing customer expectations This strategy aims to establish a strong brand identity and cultivate recognition among target audiences.
Customer analysis Marketing Strategy
2.2.1 Customer Demand and Buying Behavior
In general, natural and minimalistic makeup looks are currently popular in France, especially among younger generations
Regarding Dior's advertising, it's possible that the brand's marketing campaigns could influence the makeup preferences of some French consumers Dior is a highly regarded and influential brand in the beauty industry, with a strong reputation for producing high-quality and innovative products, making their products more appealing to some consumers
Dior's ability to cater to French consumers' makeup preferences will depend on its product offerings If Rouge Dior Couture introduces a natural, lightweight palette, it can appeal to consumers over 20 who prefer lighter makeup colors Conversely, a focus on darker makeup colors may limit the brand's appeal to this segment as consumers in their 30s and 40s typically opt for lighter makeup.
There are several differences between the buying behaviors of customers in France and those in Asian countries that Dior should take into account when developing its marketing strategies:
Emphasis on quality over price: French consumers tend to place a high value on quality when making purchasing decisions, even if it means paying a higher price This is in contrast to some Asian countries, where price is often a more important factor in purchasing decisions
Preference for luxury brands: French consumers are known for their appreciation of luxury and high-end brands They may be willing to pay a premium for luxury products, which could present an opportunity for Dior to position itself as a premium brand in the French market
French consumers typically favor in-store shopping experiences, valuing the ability to physically examine products prior to purchase and the social aspect of physical stores Conversely, online shopping has gained traction in certain Asian countries due to its convenience and accessibility.
2.2.2 Customer Assessment on Company Products and Marketing-mix
In general, Rouge Dior Couture lipstick line received many positive feedbacks from customers With the innovation of the formula, it brings more satisfied experiences to customers Available in 75 beautiful shades (Dior.com,2022) from Dior’s iconic reds, romantic pinks and rosewoods to trendy nudes in satin, matte, metallic or new velvet finishes
The 4Ps marketing mix provides a well-established and customer-centric framework for Dior to develop and execute its marketing strategies, while also allowing for flexibility and adaptation to different markets and situations The marketing mix of Rouge Dior Couture includes the following:
● Product: Rouge Dior Couture offers a range of lipsticks that are marketed as high- quality, long-lasting, and highly-pigmented The line includes a variety of shades and finishes to appeal to a broad range of consumers
● Price: Rouge Dior Couture is positioned as a luxury product, and as such, has a higher price point compared to other lipstick brands However, the pricing reflects the high- end positioning of the Dior brand and its emphasis on quality and exclusivity
● Promotion: Dior employs various channels to promote Rouge Dior Couture, including print advertisements, social media campaigns, and influencer collaborations The brand also uses in-store displays and events to showcase the product and generate excitement around it
Campaigns promotion of Dior Utilizing the Image of Celebrity
● Place: Rouge Dior Couture is sold at Dior boutiques, luxury department stores, and online retailers By positioning the product in high-end retail environments, Dior reinforces its status as a luxury brand and targets its desired audience
Overall, customers will evaluate the marketing mix of Rouge Dior Couture based on their individual needs, preferences, and values The product, price, promotion, place, packaging, and people elements will all be weighed against their own standards to determine if the product meets their expectations and is worth purchasing A positive customer assessment will help to drive sales and build brand loyalty over time.
Industry and Competitor analysis
2.3.1 Industry Environment (Apply the Five-Force Model by Porter)
The threat of new entrants to the fashion industry is moderate due to its high saturation Numerous established brands, including Dior, have solidified their positions and gained customer loyalty This creates significant barriers for emerging businesses to overcome As such, building a strong customer base and competing effectively in this competitive market poses challenges for new entrants.
Threats from the substitutes are moderate for Christian Dior, as the brand is involved in both retailing and manufacturing It is not limited to one product but diversified itself However, the threat it faces is losing its customers who got attracted by rivals This makes it necessary for the Christian Dior to engage its customers and build a strong loyal consumer base
The buyers have weak bargaining power in the case of Christian Dior The company is product oriented, rather than market oriented It produces high end, luxury products, and has its own customer base who buys the product despite the high prices
The bargaining power of the supplier is quite weak The suppliers for the brand include the providers of raw material for the various products These are generally much cheaper than the final product sold There is not that much exclusivity as most of the luxury brands can source their raw materials from the same suppliers
Competitive rivalry is moderate There are several players in the high-end luxury beauty industry which include the likes of Channel, Louis Vuitton, Hermes, and Gucci among many others However, all of these brands have established their own styles and looks and hence are not directly competing for the customers who distinguish between these products for self- expression
On the other hand, there is a segment of population that will buy products from any one of these luxury fashion houses who are indifferent to the brand as long as it is among the most exclusive brands Here, aspects such as distribution and marketing efforts make a difference and that is where Dior has managed to gain an advantage
Table 2.3 Comparison between Major Competitor of Christian Dior in the Cosmetic Industry
Christian Dior Competitor one Competitor two
Name Christian Dior Chanel Hermes
URL Dior.com Chanel.com Hermes.com
Annual turnover €79.2 billion $15.3 billion $12.4 billion
Seasonal sales No No No
Free versions No No No
2.3.2.1 Competitor 1: Rouge allure l’extrait Chanel
Rouge Allure L'Extrait by Chanel seamlessly blends intense pigmentation with exceptional skincare benefits, delivering both vibrant color and unparalleled radiance Its innovative formula is enriched with nourishing ume flower extracts and botanical waxes, creating a luxurious texture that moisturizes, comforts, and protects the lips This harmonious union of color and care ensures healthy, radiant, and captivatingly beautiful lips.
Table 2.4 Marketing Mix of Rouge allure l’extrait Chanel
Rouge Allure L'Extrait Chanel is a long-wearing matte lipstick with high coverage that leaves lips looking full and bright The product is packed in a compact box, luxurious and classy design, in line with the Chanel brand image
The price of Rouge Allure L'Extrait Chanel is positioned at the high end, in line with Chanel's quality and brand image
The product is sold at a higher price than normal lipstick products on the market
Chanel does not regularly apply promotions for Rouge Allure L'Extrait products However, the brand will regularly launch new and special collections just for the holiday season, to inspire customers
Chanel does not regularly apply promotions for Rouge Allure L'Extrait products However, the brand will regularly launch new and special collections just for the holiday season, to inspire customers
Table 2.5 Specifications of Rouge allure l’extrait Chanel
Quality: Rouge Allure L'Extrait is marketed as a long-wearing, highly-pigmented liquid lipstick, which may appeal to customers who are looking for a product that lasts throughout the day without needing to reapply At this point Rouge Dior Couture is inferior
Price: Rouge Allure L'Extrait is cheaper than
(Channel.com,2022) but the quality is equal because they are all in high-end cosmetic lines
Rouge Allure L'Extrait offers a spectrum of hues to cater to diverse lip preferences From vibrant and bold shades to demure and neutral tones, this wide selection empowers customers with endless options to complement their style and mood.
Formula: While Rouge Allure L'Extrait is marketed as a long-wearing, highly- pigmented liquid lipstick, some customers may find that the formula is too drying or uncomfortable on the lips
Limited edition releases: While limited edition releases can create a sense of exclusivity and urgency, they may also frustrate customers who miss out on a desired shade or product and are unable to purchase it
Rouge Hermès, a comprehensive lip beauty line crafted by the renowned Pierre Hardy, embodies a harmonious blend of aesthetics, functionality, and sustainability Its enduring design, featuring lacquered, polished, and brushed metal, ensures longevity, while its canvas pouch and signature orange box provide protection and a touch of elegance.
Table 2.6 Marketing Mix of Rouge Hermes
Rouge Hermès is a luxury lipstick line that offers a range of highly- pigmented lip colors in a variety of shades and finishes The packaging of the product is sleek and minimalist, with the signature Hermès logo prominently featured
Price Rouge Hermès is priced at a premium, reflecting the brand's reputation for luxury and exclusivity
Rouge Hermès products are sold exclusively through Hermès stores and the Hermès website, as well as select high-end retailers This selective distribution strategy enhances the product's exclusivity and luxury appeal
Hermès places a strong emphasis on providing exceptional customer service in its stores and ensuring that its customers have a personalized, high-end shopping experience This helps to reinforce the brand's luxury image and enhance customer loyalty
Table 2.7 Specifications of Rouge Hermes
Craftsmanship: Hermès is known for its high- quality, artisanal products, and Rouge
Macro- environment analysis on Christian Dior’ Rouge Dior Couture
Rouge Dior Couture's target market is primarily female, given that women are the primary consumers of cosmetics and beauty products The age range of this target market may vary based on specific lipstick shades and finishes Different colors and styles appeal to different age groups.
Dior's global presence and diverse consumer base necessitate a geographically varied target market for Rouge Dior Couture Key regions with disposable income and a penchant for luxury cosmetics include North America, Europe, and Asia Dior strategically focuses marketing efforts in these areas to capitalize on the high demand for premium beauty products.
Economic factors include – taxation rate, interest rate, labor market conditions , consumer disposable income, inflation rate, the stage of economy of country name, exchange rate, economic performance of country name etc
Economic Performance of France – it is apparent that the economic performance of France in the near future 5 will remain stable given – government expenditure, stable demand because of disposable income, and increasing investment into new industries (Thinking com, 2022)
Downward pressure on consumer spending – Even though the consumer disposable income has remained stable, the growing inequality in the society and growing high inflation rate will negatively impact consumer sentiment and thus impact consumer spending behavior On other aspects, the easy liquidity in the market post the great recession of 2018 has been leading to increasing inflation in the French economy (Economic Research com, 2022)
Fashion and luxury products have been under the grill of advanced technology this decade Be public by using advanced marketing tools including social media, technology played a decisive role in each field
The Consumer Cyclical sector is experiencing reduced production and servicing costs due to technological advancements Christian Dior, operating since 1946, leverages economies of scale and optimizes its supply chain to enhance flexibility and meet consumer demands while controlling costs.
Intellectual property rights and patents protection: If France has higher safeguards for IPR and other intellectual property rights then more and more players are likely to invest into research and development
Political factors are often related to the level of intervention and nature of intervention of the local and national government in the business and economic environment Government policies and governance systems play a huge role in the nature and objectives of the policies
Taxation policies: Over the last two decades Christian Dior has benefitted from lower taxation policies throughout the western hemisphere It has resulted in high profits and increasing spending in the research and development The increasing inequality in France can lead to changes in the taxation policies Secondly local governments are also looking into Perfume/Cosmetic specific taxation policies to contain the carbon footprint of the Consumer Cyclical sector
France's long-standing governance system remains stable, with limited prospects for significant shifts Despite potential for deviations in policymaking from historical norms, the system's fundamental structure is unlikely to undergo substantial changes.
Each society and culture has its own way of doing business These social factors can not only help companies like companyname to better understand the way of doing business but also in understanding the customer preferences in the Consumer Cyclical sector of country name
Gender roles: The gender roles are evolving in France Christian Dior can test various concepts to cater to and support these evolving gender roles in France society
Leisure interests: the customers in France are giving higher preferences to experiential products rather than traditional value propositions in the Consumer Cyclical sector Christian Dior can leverage this trend to build products that provide enhanced customer experience
Attitude towards health and safety: With increasing liberalization the attitude towards health and safety are getting lax Christian Dior needs to stay away from these attitudes as the cost of failure is too high in France
Over the past decade and a half, a growing proportion of the French population has gained access to essential services This improvement is primarily attributed to increased public service investments, ensuring that citizens have greater opportunities to utilize vital resources.
SWOT Analysis of Christian Dior in France Cosmetic Market
SWOT Analysis is a proven management framework which enables a brand like Christian Dior to benchmark its business & performance as compared to the competitors
Table 2.8 The Strengths of Christian Dior in the Cosmetic Industry
Christian Dior has an innovation driven culture where significant part of the revenues are spent on the research and development activities
This has resulted in – Christian Dior staying ahead in the Perfume/Cosmetic industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders
Christian Dior's digital transformation encompasses four key aspects: integrating digital processes, enhancing marketing and customer engagement through digital channels, leveraging technology to optimize the value chain, and exploring innovative products and market opportunities through technological advancements.
Christian Dior is one of the leading players in the industry in France
The ability to lead change has enabled Christian Dior in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets
Table 2.9 The Weaknesses of Christian Dior in the Cosmetic Industry
Only certain products of Christian Dior account for major business revenue This dependence on star products in Cosmetic industry has resulted into insufficient focus on developing new products,
Heavily reliant on traditional advertising and marketing channels
Christian Dior faces challenges in adapting its marketing strategies to cater to an evolving consumer base characterized by younger and more diverse demographics Failure to establish a connection with these key customer segments through appropriate marketing channels could lead to a decline in market share and revenue, jeopardizing the company's competitive position.
Lack of clear differentiation of
To increase the profitability and margins on the products, Christian Dior needs to provide more differentiated products than what it is currently offering in the marketplace
Table 2.10 The Opportunities of Christian Dior in the Cosmetic Industry
The expansion of the 5G network will help Christian Dior to increase its market reach as well as provide a technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey
Developing new processes and practices
Christian Dior can develop new processes and procedures in the industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc
The increasing in demand for online shopping and e-commerce, presents an opportunity for Christian Dior to expand its digital presence and reach new customer segments
Table 2.11 The Threats of Christian Dior in the Cosmetic Industry
Consumer confidence and its impact on Christian
There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography
Increasing pressure to adopt sustainable and ethical business practices
The cosmetics industry faces increasing consumer demand for sustainable and ethical practices, fueled by heightened awareness of environmental concerns (e.g., climate change), animal welfare issues, and responsible labor practices This shift has posed challenges for companies like Christian Dior, requiring them to respond to evolving consumer expectations.
Amidst the proliferating business landscape, the cosmetics industry witnessed a surge of over 1.5 million new business applications in 2020 (Oak Spring University, 2022) This influx of entrants poses challenges for established players like Christian Dior, intensifying competition and potentially jeopardizing their financial performance.
The marketing problems
One potential problem for Rouge Dior in terms of segmentation is that its focus on traditional glamor and high price point may limit its appeal to a younger, more diverse audience This could result in a limited target audience, which may impact the company's ability to grow and increase market share
One potential problem for Rouge Dior in terms of positioning is that the cosmetics industry is highly competitive, and it may struggle to differentiate itself from other luxury brands and stand out in consumers' minds This is especially true in the current market where many consumers are focused on sustainability and eco-friendliness If Rouge Dior cannot effectively differentiate itself from competitors, it may lose market share to brands that are perceived as offering more innovative or unique products
Rouge Dior's limited product diversity may result in lost sales to customers who prefer to buy a variety of beauty products from a single brand The company may need to expand its product range to cater to a wider range of customer needs and preferences Moreover, the brand may face challenges in adapting its product range to different cultures and preferences across its global market
With a high price point, Rouge Dior may face challenges in maintaining its sales in an increasingly price-sensitive market Consumers may choose to purchase cheaper alternatives from competing brands, especially in a highly competitive industry
Rouge Dior's marketing campaigns are heavily focused on traditional glamor and may not resonate with younger consumers who are looking for more diversity and inclusivity in beauty products
To effectively capture the preferences of younger consumers, Rouge Dior should consider optimizing its online presence and leveraging social media and influencer marketing By doing so, the brand can enhance its reach and engagement with this demographic, ensuring its continued relevance in the beauty industry.
2.6.4.2 Lack of Emphasis on Sustainability and Eco-friendliness
With increasing consumer awareness and demand for sustainable and eco-friendly products, Rouge Dior's marketing communications may need to adjust its messaging to reflect these values While Rouge Dior has made efforts to incorporate sustainability into its product innovation, it may not be emphasizing this aspect enough in its marketing communications This could limit the brand's appeal to environmentally conscious consumers and lead to a missed opportunity for growth
2.6.5 Limitation on Distribution and Sales
Rouge Dior's reliance on high-end department stores and boutiques to sell its products may result in limited distribution channels This strategy may not cater to consumers who prefer to shop online or at more affordable retailers, which may lead to a loss of potential customers
2.6.5.1 Difficulty Adapting to Changes in Consumer Shopping Behavior
The cosmetics industry is experiencing a shift towards online shopping, which has been further accelerated by the COVID-19 pandemic Rouge Dior may face challenges in adapting to this change in consumer behavior, as the brand's focus has been primarily on in-store experiences
2.6.6 Limitation on Marketing Research and Marketing Information System
While it’s hard to have access to the marketing research and marketing information system information of Christian Dior From my point of view, Dior may have limited access to certain types of consumer data or market information since the business group's have limited understanding of evolving consumer preferences, particularly around sustainability and eco- friendliness, indicating a need for Rouge Dior to invest in market research to develop effective marketing strategies.
Solutions for Improving Christian Dior’s France Marketing Strategies and
Solutions on marketing segmentation
Dior can foster a strong bond with its loyal clientele through social media engagement By crafting captivating visual content that aligns with their target audience's preferences, leveraging influencers and celebrities, and providing exclusive perks, Dior can deepen customer connections Additionally, embracing sustainability initiatives can cater to the growing consumer demand for eco-friendly and ethical practices, further strengthening customer loyalty.
In addition, Dior can attract younger consumers aged 18-25 through creative marketing campaigns, limited-edition collections, collaborations with artists, and user-generated content These strategies can help Dior maintain its position as a leader in the high-end lipstick market and attract a wider audience of loyal customers
Preparing for a New Generation of Consumers: Dior should prioritize enhancing the quality and efficacy of its products and building image value for customers through class, luxury, and uniqueness To strengthen its uniqueness, Dior can offer personalized services that enhance the product's positioning and reinforce the brand image value, emphasizing exclusivity and luxury
By focusing on these strategies, Dior can solidify its position as a go-to brand for high-end lipstick and maintain a strong customer base while attracting new ones.
Solutions on Marketing Positioning
High quality and efficacy: Dior should prioritize enhancing the effectiveness of its lipstick line, so customers associate it with long-lasting color, smooth texture, and a variety of hues for different skin tones This will solidify Dior's position as the go-to brand for high-end lipstick
To establish a robust brand identity, Dior's Rouge Dior Couture lipstick line should focus on building an image of class, luxury, and exclusivity By offering personalized services tailored to specific customer segments, Dior can create a unique and distinctive product image This differentiation will not only elevate the product's positioning but also reinforce the overall brand image value By providing exceptional and personalized experiences, Dior caters to the unique needs of each customer, emphasizing both exclusivity and luxury, thus solidifying its position as a premium brand.
Solutions on Marketing Offer
Maintain existing features: Long-lasting color durability, a range of hues, and smooth texture are essential features that Dior has done well in producing its Rouge Dior Couture lipstick line These features have kept customers loyal to Dior, so the brand should preserve these advantages in new versions of Rouge Dior Couture along with other lipstick products Therefore, Special attention should be paid to retaining the most outstanding features of Rouge Dior Couture
Add new efficacious features: Higher moisturizing properties and lip concealing properties while maintaining a light-weight feel could be features that customers desire more in a lipstick Integrating these new efficacious features would enable customers to make faster decisions
Dior's Rouge Dior Couture lipstick line is a luxury product that commands attention By emphasizing brand prestige through premium pricing, Dior elevates its image in customers' minds, enhancing the perceived value of its products As a result, high-end customers are willing to pay a premium for the exclusivity and prestige associated with Dior.
Solutions on Marketing Communications
Increase Social Media Presence: Christian Dior should focus on increasing its social media presence to reach a wider audience The company can leverage social media platforms such as Instagram, Facebook, and Twitter to showcase their products and services, and connect with customers as social media has become a key channel for luxury brands to connect with their customers, with 78% of luxury brands using Instagram and 65% using Facebook for marketing purposes (Hootsuite, 2021)
Partner with Influencers: Keep collaborating with influencers can help Christian Dior reach new audiences, particularly those who may not be familiar with the brand Working with fashion and beauty influencers can help the company to expand its reach and increase its visibility
Create Engaging Content: Christian Dior should focus on creating engaging content that resonates with their target audience This can be achieved by creating high-quality visuals, videos, and blog posts that highlight the brand's values and products
Use Event Marketing: Christian Dior should also consider event marketing to increase brand awareness and engagement Hosting events such as product launches, fashion shows, and pop- up shops can create buzz and generate interest in the brand.
Solutions on Distribution and Sales
Focus on E-commerce: Christian Dior should prioritize its e-commerce platform to reach customers who prefer to shop online This will require investing in a user-friendly website, secure payment systems, and efficient order fulfillment and delivery
Expand Retail Footprint: The brand should also focus on expanding its retail footprint by opening more stores in strategic locations This can help to increase brand visibility and provide customers with a physical space to interact with the brand and its products However, the expansion should be done strategically to ensure that stores are located in areas with high foot traffic and where the brand's target audience is likely to shop
Offer Omni-Channel Experience: Christian Dior should aim to provide an omni-channel experience for customers, where they can seamlessly move between online and offline channels.
Solutions on Marketing Research and Marketing Information System
Conduct Market Research: Christian Dior should conduct regular market research to understand the needs and preferences of its target audience This can be achieved through surveys, focus groups, and social media listening By understanding customer needs and preferences, Christian Dior can tailor its products and marketing strategies to better meet the needs of its target audience
Use Marketing Analytics: The brand should also use marketing analytics to track the effectiveness of its marketing strategies and make data-driven decisions This can be achieved by tracking key performance indicators such as website traffic, social media engagement, and sales conversion rates
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