Assignment for Marketing Mangement.. Submitted by students of Chitkara Business School

2. Christian Dior
Founded on : Dec 16, 1946
Founded by : Christian Dior
Headquarters : Paris , France
Number of locations: 160 boutiques
globally
Area Served : World wide
high end
shopping

3. Kris Van Assche
John Galliano (head ((designer of
Bernaud Arnault
Sydney Toledano (CEO) designer of haut jewellery)
(chairman of the board),
couture)

4. Company Information
 Industry: luxury goods
 Products: high fashion
retail
 Revenue: €17.93 billion
 Operating income: €3.468
billion
 Profit: €796 million
 Total asset: €35.59 billion
 Total equity: €15.27
billion
 Subsidiaries: LVMH
(42.4% controlling stake).

5. Vision Statement –
“To become the world’s most popular brand in all
products that enhance their lifestyle.”

6. Mission
 We strive to create the
environment that is
fun, welcoming and that
encourages customers to
tap into their creativity
and explore their
personal styles.
 Our strive to provide our
clients with the highest
quality promotional
merchandise available
worldwide

7. Five Priorities - Shared By All Group
Stakeholders
 Be creative and innovate
 Aim for product excellence
 Bolster the image of our bra
nds with passionate
determination
 Act as entrepreneurs
 Strive to be the best in all
we do

8. Business description
“Principal activities are the production and sale
of fashion accessories and beauty products”

9. Product Line
Clothes
Wines & Spirits
Fashion & Leather goods
Perfumes & Cosmetics
Watches & Sunglasses
Fine Jewellery

10. Clothing

11. Wines & Spirits

12. Leather goods

13. Perfumes & Cosmetics

15. Global Luxury Watch Market Share
Rolex 50%
Swatch 12%
LVMH 10%
Others 28%

16. Watches & Jewellery

17. BLACK MOON
• Founded in : 1975
• The international watch
making cradle in
Switzerland.
• Dior watches continues the
logic of excellence of the
Dior House.
• Theme - a woman who
decides to wear a man's
watch so that she is always
thinking of him.

18. OUR COMPETITORS

19. Parfums Christian Dior
Founded in : 1947
• Innovation – The
House
Make women elegant -
new shades, textures
and unique fragrances.
• Dream – Fragrance
Dior fragrances all
express a state of
mind, a way of life.

20. Christian Dior Perfumes
• Rs.5,249 | $131.22
(Including VAT)
• Rs.7,999 | $199.98
(Including VAT)
• Poison- Rs.4,975 | $124.37
(Including VAT)

21. Screen clipping taken: 11-01-2010, 10:03

24. Some Boutiques Across the Globe
India
Hong
Paris
Kong
Boutiques
London New York
Sydney

44. Market Opportunity
• Interesting market -Japan, China, India
• Taps on environment friendly policies .
• Focus on country specific clothing.

45. • Third largest luxury goods market in the
world behind Japan and the United
States.
China • Goldman Sachs estimates that the
global luxury goods market is
approximately $50 billion USD with
Chinese consumers accounting for 12%
of worldwide sales, for a total of $6
billion USD
• Already there are an estimated 300,000
Chinese with a net worth of $1 million
• Estimates from Master Card and Visa
are that there will be between 75 and
100 million international credit cards
issued in China by 2010.
• China has one hundred cities with
populations greater than one
million, compared to nine in the US.

46. • Retail management company
KSA Technopak estimates the
India market for luxury and high-end
clothing in India at Rs 1,000
crore and for accessories at
another Rs 1,000 crore.
• 169 million credit card by the
end of 2010
• Fastest growing millionaire
population in world.
• Newly affluent lack sufficient
knowledge and awareness of
luxury brands to drive significant
sales-management consultants
AT Kearney and The Economic
Times
http://www.businessoffashion.com/2010/0
1/in-india-luxury-brands-need-localised-
strategies.html

47. • Japan consumes about 25% of
luxury goods--the same as
Japan Americans and Europeans each;
• As a point of relative
comparison, Japan's population
is about 125 million and the U.S.
is around 300 million, meaning
that Japan consumes luxury
goods at about twice the
average rate as Americans.
• Nearly half of all Japanese
women over the age of 20 own a
Louis Vuitton handbag and 94%
of women in Tokyo in their 20's
own at least one Louis Vuitton
handbag.
Source:http://www.wikinvest.com/concept
/Luxury_Consumption

48. CONCERN FOR ENVIRONMENT
• Respect for nature
– Protect biodiversity and ensure consumer health,
– Harmless production methods, and the impeccable
quality of proven products.
– Factor of progress and competitiveness while for
society it represents a tangible proof of freedom
and a new way of thinking.
• Tradition cannot be separated from innovation, nor
nature from creation.

49. CONCERN FOR ENVIRONMENT
• A selective transport policy
For transporting goods, a ship produces 80 times less
CO2 than a plane.
• Well-treated water
At the Guerlain site in Chartres, a waste treatment
station was built and started up in 2003: it provides a
pollution clearance rate higher than 90%.
• Château d'Yquem set up a new system to treat its
wine-production effluents and waste water.

50. CONCERN FOR ENVIRONMENT
• To ensure effective environmental control
• An awareness program with their suppliers and
subcontractors.
• Its fabric suppliers to comply with regulations
governing nitrogen dyes and the use of nickel.

51. Optimized energy consumption: The
Parfums Christian Dior
• Reducing energy consumption
– Parfums Christian Dior
energy consumption dropped
from 14.2 MWh in 1999 to
8.6 MWh in 2003 per ton of
product manufactured.
• An oil-separator tank has been
set up for the parking lot.
• Crisis management
– In strict compliance with
national regulations governing
manufacturing, all the
companies concerned have
implemented a program to
monitor wastes.

52. Business Opportunity
• Huge opportunity lies in outsourcing clothing
line.
• Rising middle class
• Open Directly operated stores.
• Introduce children wear.
• Collaborate with banks to give product on EMI-
capture more customers.
• Collaborate with T.V channels like MTV LYCRA
• Focus on e-commerce.
• Educate Consumer advertisement.

53. Recommended Strategy
 Tie – Up With Automobile Industry-
AMC,GM,FORD
 Christian Dior Academy
 Apparel Manufacturing Outsourcing-haute Couture
 Concept Stores In India

54. Strategy Continued
Focus on Tier 1,Tier 2 cities India ,China.
Focus on children apparel India.
Collaborate with banks for customers.
Localize market strategy in India.
Focus on e-commerce.
http://www.businessoffashion.com/2010/0
1/in-india-luxury-brands-need-localised-
strategies.html

55. Income statement of Christian Dior
(EUR millions, except for earnings per share) 2008 2007 2006
Revenue 17,933 17,245 16,016
Cost of sales (6,305) (6,060) (5,745)
Gross profit 11,628 11,185 10,271
Gross profit margin 64.8% 64.9% 64.1%
Selling .General and administrative expenses (8007) (7575) (7062)
Profit from recurring operations 3621 3,610 3,209
Other operating income and expenses (153) (117) (127)
Operating profit 3,468 3,493 3,082
Operating margin 19.3% 20.25% 19.2%
Cost of net financial debt ( 322) (272) (230)
Other financial income and expenses (26) (45) 123
Net financial income (expenses) (348) (317) (107)
Income taxes ( 904) (855) (850)
Income (loss) from investments in associates 8 7 8
Net profit before minority interests 2,224 2,328 2,133
Minority interests 1,428 1,448 1,336
Net profit – Group share 796 880 79
Net profit margin 4.43% 5.10% 4.9%

56. Income statement of Chanel
2008 2007 2006
Revenue 1,032.9 791.4 668.2
Cost of Goods Sold 373.9 288.8 243.3
Gross Profit 659.0 502.6 425.0
Gross Profit Margin 63.8% 63.5% 63.6%
SG&A Expense -- -- --
Operating Income 106.0 132.3 111.1
Operating Margin 10.3% 16.7% 16.6%
Non operating Income (6.5) 0.0 4.3
Nonoperating Expenses (14.3) 0.5 (5.4)
Income Before Taxes 87.2 121.7 104.0
Income Taxes 7.2 10.3 13.0
Net Income After Taxes 80.1 111.4 90.9
Continuing Operations 80.1 111.4 90.9
Total Operations 80.1 111.4 90.9
Total Net Income 80.1 111.4 90.9
Net Profit Margin 7.8% 14.1% 13.6%

57. PARIS FASHION WEEK
2009-10
HAUTE COUTURE
BY
CHRISTION DIOR

58. MOODBOARDS

60. NATURE

62. SEA

64. SEA SHORE

77. Thank You