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Dior Addict - Club of Notes
- 1. Sticky Notes Project CRM Program Proposal Lucie Boute Pierre Einaudi Janesh Isram Julie Macé Coline Ponsart Emeline Renard Nicolo Somaglino 05/11/2014 1
- 2. I. Group INNOVATION The Need Dior Addict is a product line part of Dior Fragrance and Beauty which includes perfume and make-up. In 2014 they launch the new perfume version and want through a CRM Program to promote the perfume and the product range. 05/11/2014 2
- 3. I. Group INNOVATION The Solution 05/11/2014 3
- 4. I. Group INNOVATION The Solution 05/11/2014 4
- 5. I. Group INNOVATION 05/11/2014 5 Example of what Dior has already done
- 6. II. CRM OBJECTIVES The target • Gift with product: Dior’s maximum budget is 3.50 euros per booklet. • For Dior customers when purchase exceed 30 euros → around 11.5% of sale • Knowing that : - Dior perfume from 40 euros - Dior Addict Lipstick from 30.50 euros - Dior Addict Mascara from 32.50 euros 05/11/2014 6
- 7. II. CRM OBJECTIVES Selective Distribution 05/11/2014 7 International Exclusive Distribution Offered in Beauty Boxes Flagships and Corners (Galeries Lafayette, Printemps) Birch Box, My Little Box, Glossy Box etc. Advantages: - Differentiation - Increase Loyalty - Added value to your store Advantages: - Differentiation - Costs =0 - Added value due to Dior’s brand awareness
- 8. II. CRM OBJECTIVES Communication 1. Newsletter 2. Beauty and Fashion Blogs 3. Beauty Boxes 05/11/2014 8
- 9. II. CRM OBJECTIVES Objectives: The Booklet becomes the perfume 05/11/2014 9 •Communication through blogs & beauty boxes •Create product range awareness Acquire •Offer a gift •Create relationship Retain •Social Benefit •Cross selling Enhance
- 10. III. Value • For receiver - Having Dior with you everywhere - Dior cares about you • For sponsor - Strategic Value : WOM + Bloggers + Dior’s Brand Experience - Potential Value : Cross Selling - Actual Value : Influences buying decision • For Club of Notes - Actual Value : order of 50 000 pieces - Strategic value : entering the Luxury market 05/11/2014 10
- 11. IV. Customer journey 11 Customer buys a Dior product. Salesman shares experience by giving the gift. The customer can become a Dior Addict. Sharing it with its surroundings. Use the sticky notes. Customers run out of perfume : the need is renewed. Influence of the gift. Sensorial Marketing (remember of the brand and the perfume)
- 12. V. Market Research 05/11/2014 12 Cosmetic Market • France 1st first cosmeticsand fragrance products exporter • 4th source of wealth in the world’s economy • The sales decline – 4,2% in volume limited in value due to the increase in price by 2,6% Demand • Decline in spending (2014 )because of the crisis → buy at low prices • Aged population forms the largest consumer segments • Perfume sales (2013) : 1,9 billion € • French spend between30 and 60€ per month Supply • Nomad products:gain of time • Promotion: Social Networks • Innovation & Creativity: technological, conceptual, image and design level Distribution • Non store retailing • Selective retailing • Hypermarkets and supermarkets • Department stores • New concepts (beautytrucks, automatic machine, low price make up shops) Xerfi study « Distribution de perfumes et de produits de beauté » Juin 2014 Dior annual report 2013 http://fr.slideshare.net/CyrilZAIDAN /dior-swor-analysis http://www.euromonitor.com/fragr ances-in-france/report http://www.cnbc.com/id/1020403 71
- 13. V. Market Research 05/11/2014 13 Competition Competitive Analysis Christian Dior SA Chanel SA and Guerlain SA : leaders (value shares of 10% each) Low cost brands KIKO HEMA BEAUTY Competition of E commerce: pure players Brands of “Bio Cosmetics”: Occitane Cattier Comptoir des Lys Brands of “Profesionals of dermo cosmetics”: Pierre Fabre Bioderma Uriage Vichy Other prominent vendors: Luxury brands like Azzaro Burberry Hermès jean Paul Gaultier
- 14. V. Market Research 14 Benchmark : CRM Programs Chanel : Customers receivea postcardwith a certain amount for a complimentary gift once a year → Customers buy products at a rate of 70% when bringing the postcard Guerlain La vie parisienne: Favored offers, personalized marketing(events,discounts etc.) Sephora : collecting feedback, personalized marketing, strong Digital Strategy
- 15. VI. Customer Insights 05/11/2014 15 171 respondents 80% : between 20-25 years old 69% : students 90% wear perfume every day or more than once a day 16% : to which Dior is their favourite brand perfume 33% : « I don’t know the Dior Addict beauty line »
- 17. 05/11/2014 17 Our sample confirmed our expectations to give a « go » to our project. VI. Customer Insights
- 18. Cost Estimate 05/11/2014 18 Couverture en Carte couché 380 gr, Impression: Quadri + vernis machine / recto Format : 140x80 fermé / 200x140 ouvert MEMOR IT® AVEC COUVERTURE 50000 Pieces 1,9600 € + 0,3500 € = 2,31 Euros => Matches our 3.50 Euros budget for one booklet
- 19. Brand Sponsor and feedback 05/11/2014 19 Chloé Monthieu Sales Promotion at Dior Fragrance cmonthieu@diormail.com
- 20. References 05/11/2014 20 Xerfi study« Distribution de perfumes et de produits de beauté » Juin 2014 Dior annual report 2013 http://fr.slideshare.net/CyrilZAIDAN/dior-swor-analysis http://www.euromonitor.com/fragrances-in-france/report http://www.cnbc.com/id/102040371 http://www.e-marketing.fr/Thematique/Retail-1002/Breves/parfumerie- selective-tire-son-epingle-jeu-233195.htm http://www.ubifrance.fr/parfumerie-cosmetiques/marches- porteurs.html http://lexpansion.lexpress.fr/actualites/2/high-tech/france-les-ventes- des-parfumeries-reculent-encore-en-2013_1476994.html http://www.dior.com/beauty/fr_fr/parfum-et-beaute/parfum/parfum- pour-femme/dior-addict/fr-dioraddictfpl-dior-addict.html