To achieve its growth target, the Dior Group implemented several strategies both internally and externally for each of its strategic business areas: Dior couture, fashion and leather goods, wines and spirits, perfumes and cosmetics, watches and jewelry.
Internally, the group plays on Dior's expertise and thus on the quality of its products to reinforce its image as a specialist and a producer of luxury goods. It also builds on the creativity of its products, the relevant choice of its creative talent, and its investment in substantial research and development.
It pays special attention to the continued renewal of its products. Externally, the Group has increased its acquisitions (Laflachere, Chaumet Japan, PCD GMBH Seldico, etc) and continued its involvement in various societies (Jean Goujon, LVMH) ensuring a constant growth in terms of profitability and development.
Simultaneously, it also conducts assignments for some of its activities (inventory and licenses, Michael Kors, Kenneth Cole and Canard Duchene) through the resale of some of its brands.
Geographically, the distribution of Dior couture continues to grow over the years. Dior man opened four new stores in 2004 and for the first time in Paris, Tokyo, Osaka and New York.
Dior Couture is now trying to make its distribution more selective by limiting its presence in multibrand stores and focusing on opening its own stores. The brand products are still visible in some corners of department stores or in some places of prestige.
The extension strategy of the company allows customers greater visibility of the brand, even if it is already being recognized worldwide. It offers the opportunity to engage the market shares of competitors, but may also harm if used too aggressively.
Luxury is synonymous with rarity and Hermeticism. However, targeting customers who could start the image is not good and contributes to the democratization of the mark.
Diversification strategy and product development allows a constant renewal that must establish a group like Christian Dior. These new products allow a resurgance of sales and increased revenue that could overcome some deficits caused by SBA.
These strategies are by far the best as they have the most impact. They are closely related to the budget allocated for research and development.
The luxury sector suffers a certain slowdown in sales and a general decrease in its turnover. Christian Dior comes through in such strategies that are judiciously employed to stabilize.
Recognition of the brand Dior and its direct affiliation with luxury greatly influences its communication policy. It directs its communication to mainatin and improve the image, and this is very important in the world of luxury where the consumer identifies with a brand.
The main objective is to strengthen Dior's brand image and rejuvenate and to meet this objective, Dior implements a new communications strategy. This is an aggressive strategy for two reasons: a mass communication on multiple channels and use of provocative images in its advertising.
The advantages to this kind of advertising leads to effective communication and the brand values are further affirmed and the consumer identifies directly with Dior.
Tags: Christian Dior, advertising strategy, brand image building
[...] In each ad, the goal is not to sell precisely the Dior product shown, but to score a little more identity. The strength of Dior: an identity recognizable by all. However, this communication strategy shows benefits just as much as risk, we will study: Benefits - Effective Communication: The brand values are affirmed and the consumer via direct communication strategy identifies Dior. - Attraction of new targets: The change of image to one of eccentricity and provocation while maintaining the chic and glamorous image attracts the new target, young and modern, which are revitalizing the Group. [...]
[...] Guerlain, meanwhile, is launching a major new fragrance "L'Instant de Guerlain." Givenchy responded to the movement with the launch of "Very Irresistible" and its line of makeup "Givenchy le make up • Product recovery strategy Guerlain and Kenzo have chosen to launch new versions of their respective best-sellers "Shalimar" and "eau de Kenzo" Impact on profitability This area of activity has been in a slight decline. Indeed, the turnover of the sector was down in 2003. Indeed, despite the steady stream of perfume launches, competition in the sector weighs heavily on the growth of the SBU. [...]
[...] Dior group policy I-Analysis We will establish the SWOT matrix of the Dior Group and analyze its strengths and weaknesses, and the opportunities and threats in the market. OPPORTUNITIES THREATS ? Development of new markets ? Increased competition (Asia) ? Increase in counterfeiting ? New customers: emerging ? Decrease in consumption in affluent classes some markets ? Democratization / ? Fashion market: products commoditization of luxury are not part of the time ? Tourism Recovery (Japanese) ? Obligation to make ? [...]
[...] These muses can harmonize international communication in the world. - A successful renewal: With the change of the image while keeping the core values, Dior Group demonstrates its capacity quoted in terms of creativity and innovation and reaffirms a little more into the world of luxury. Risks - A mass communication: the act of communicating in abundance can tire the consumer, who may end up not seeing the brand. - An image a little too far from the core values: since the 2000s, Dior has projected an image of luxury, elegance and glamor. [...]
[...] Second, it gives special attention to the constant renewal of its offer. Externally, the Group is increasing its acquisitions (Laflachère, Chaumet Japan PCD GMBH, Seldico . ) and continues to participate in various companies (Jean Goujon, LVMH . ) in a constant growth pattern in terms of profitability and development. In parallel, it also conducts transfers/disposals for some of its activities (stocks and licenses, Michael Kors, Kenneth Cole, Canard Duchene . ) through the resale of some of its brands. [...]
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