How Dior has successfully Launched 2 new product collections in different ways in the UK market.The luxury strategy implements in a real market practice need to be maintained luxury brand dream value.

1. LUXURY PRODUCT LAUNCH
WITH
LUXURY BRAND DREAM VALUE STRATEGY
Presented by Jing Huang
April. 2012

2.  Introduction
 TheTheory
 Two Case Studies
 The Comparison
 Dream Conclusion

3. Introduction

4. Brand Capital Measurement
Brand
Capital
Awareness
Consideration Behaviour
Ability to
create
fanatics

5. Luxury Brands are different
There is no talking of
consideration but Dreams,
and high consumption
destroys the dream

6. Luxury
is access to a DREAM !

7. The Dimensions
of this Dream
 The Social Dimension
 The Sensorial Dimension

8.  A brand dream is the function of the
difference between brand awareness and the
rate of ownership of the brand.
 The Luxury dream is boosted by the distance
between those who know and those who can
-------The Luxury Strategy by
J.N.Kapferer andV.Bastien

9. The Theory

10. How to build a dream for a
Luxury brand
 First, without awareness there is no dream
 Second, If awareness is high, then it is the
distance between the number of people who
recognize it and the number of wearers of the
brand that creates the dream.

11. Luxury Dream Value Measurement
DreamValue well managed DreamValue poor managed
Purchasers Brand Awareness Purchasers Brand Awareness
The diagram made according toThe FourTypical Situations ,The Luxury Strategy by
J.N.Kapferer andV.Bastien

12. Question Mark
What methods can be considered as
strategies to boost the brand awareness
but control the consumption at the same
time?

13. Two Case Studies

14. Case Study 1
Miss Dior UK Launch
Christian Dior

15. Miss Dior

16. Introduction of the product launch
through
Marketing 4Ps
 The Product
 The Price
 The Place
 The Promotion

17. The Product
A young and Versatile attitude
 Structure bag, Constructed on mould
 Shoulder carry or across the body thanks to its chain
 A touch of chic, for day or evening, classic and contemporary, elegant
and feminine yet causal and fun attitude
 In Lambskin
 135 pieces from the first delivery in U.K.

18. The Product Name
has deliberately taken use of from
Miss Dior
Haute Couture dress, 1947
Miss Dior
The first Perfume, 1947
Miss Dior
curved-heel pump 2007

19. The Product shape
is similarity with
Chanel classical Flap Bag
 Easy Recognised
 Sharing with existing high profit market e.g. Chanel classical Flap Bag
 But with Christian Dior own culture story and design details

20. It has been launched with retail price from £1800 to £2000
July,2011. The price has been increased twice after
launching. Now is from £2300 to £ 2600.
The Price
0
500
1000
1500
2000
2500
3000
Mid 2011 Late 2011 Early 2012
Miss Dior PriceTrend
Price Min Price Max

21. The Place
UK wide distribution
Selfridges, Manchester
Selfridges, Birmingham
Sloane street
Bond Street
Harrods
Selfridges
White City
HeathrowT5, London

22. Boutique fit and window display
Compelling window display Mixing with Iconic bag
Lady Dior

23. The Promotion Aim
a long-term and ongoing plan
• Raise
awareness and
desirability
2011
• Further
increase
desirability
2012 • Promote as an
Legitimate
Dior bag
2013-2014

24. Promotion timeline
04/2011: Staff product training
05/2011: Press Release
07/2011:AdvertisingCampaign
08/2011 :leaflet,AdvertisingCampaign
09/2011:Vogue fashion night out Miss Dior Events,
ELLE,Vogue
10/2011:Vogue, ELLE
11/2011: Miss Dior perfumeCouture limited edition
11/2011-12/2011 : ELLE
01/2012 : Mila Kunis as the face of the Miss
Dior handbag, DiorMag, ELLE
02/2012: New Leaflet
03/2012: New Miss Dior Perfume launch
03/2012-04/2012: ELLE
To Be Continue
2013
to
2014
2011
2012

25. To reinforce the title of luxury, the distance of
the gap between purchasers and awareness
has to be firmed.The concept of dream value
could be strategically maintained through
Marketing 4Ps.

26. Marketing 4ps Dream Management Master Table
4Ps
Activities to
Increase Awareness
Activities to
Control Purchase
Price P
Product P P
Place P P
Promotion P

27. Miss Dior
Current Luxury Dream Model
To raise awareness
Place:
 wide distribution
Promotion:
Events
Magazine
internet
Social network
Brand ambassador
Product:
Name
Style
Product stretching
To control purchasers
Price:
Regularly Price Increase
Higher price of limited
edition
Product:
Limited edition
Exotic skin
Seasonal edition
Place:
Limited distribution
for limited edition
AwarenessPurchasers

28. In terms of managing dream value, Dior has
carried out dual activities to boost awareness
and control consumption to maintain the
dream gap.
Miss Dior =Well Managed
Following plans to increase awareness further
in the future, additional controls need to be
added

29. It can be seen from Miss Dior case study, the
awareness and purchase rate are flexibility,
the companies need regularly follow up and
monitor them so that the strategy could be
efficiently adjusted to continuingly maintain
the dream value of Luxury.

30. Question Mark
Luxury Brand always links to uniqueness &
exclusivity.
In the luxury product range some products
require greater uniqueness:
much more limited availability
Less awareness
How can the dream value be managed for these
products?

31. Case Study 2
Diorissimo UK Launch
Christian Dior

32. Diorissimo

33. The Product
A Dior icon combining obvious elegance
and leather goods ‘know-how’
 Timeless day bag
 Hand or Shoulder carry
 Elegant day bag
 In calfskin
 Only 68 pieces worldwide
from first delivery

34. The Price
Launch with retail price from to £2250 to £2750
The price has been increased after March, from £2450 to £3000
0
500
1000
1500
2000
2500
3000
3500
Late 2011 Early 2012
Price Min
Price Max
Diorissimo Price Trend

35. The Place
 No Display in Boutique shop floor
 3 boutiques distribution only in UK
 NoTransfer
 Serving inVIP Salon
The Promotion
 Staff product and presentation training
 Personal PhoneCalling
 Personal E-mailing
 Viewing allowed only from private appointment
 Presentation only by Leather goods specialist
 Limited advertising –directed

36. Diorissimo
Luxury Dream Model
Purchasers Awareness
To control
purchasers
Price:
Regularly Price
Increase
Higher price for
limited edition
Product:
Limited quantity
 unique material
Exotic skin
Place:
Restricted display
To raise awareness
Place:
 limited distribution
worldwide
Promotion:
Direct promotion
VIP events
Product:
Name
Style

37. Diorissimo also fits well to the dream value
management model.
The gap has been maintained with higher
exclusivity balanced with lower awareness.
It could be considered as a tactical method
when the company re-positions an existing
product to rare level.

38. The Comparison
Between Two Cases

39. Marketing 4ps Dream Value management
Comparison Table
Marketing Aspect Miss Dior Diorissmio
Product
High Quality
Multiple options/editions
Limited Quantity
High Quality
Limited Range
Very Limited Quantity
Price
£1800 to £2000
Regular Price Increases
Higher price for limited
edition
£2250 to £2750
Regular Price Increases
Higher price for limited
edition
Place
Prominent In-store Display
Available in all stores
Limited online availability
Able to walk-in and
purchase
Restricted in-store display
Available in flagship stores
No online availability
Appointment required to
purchase
Promotion
Heavily promoted in
mainstream fashion media
Shared name with
additional products
Limited Promotion
targeted to specific
customer
Unique identity

40. Both products are well-managed in terms of
dream value but differ:
Miss Dior = Higher profile
Diorissimo = Higher Exclusivity
Miss Dior Diorissimo
Level of Awareness HIGH LOW
Control on
Availability HIGH HIGH

41. Dream conclusion
To maintain the dream value, No matter how
much quantity planned for the market, a
certain gap need to be maintained between
purchase and awareness!

42. Maintaining different levels of well-managed
dream levels allows:
Greater product differentiation (not just style
& design but also level of dream)
Possibility to better manage products over its
lifecycle

43. Lady Dior
The most famous iconic Bag
travels around the world

44. Due to Lady Dior successful promotion and
incredible sales achievement in recent years,
Christian Dior is able to manage without any
pressure to reduce the production and
restrict the consumption to keep its
symbolization for the consistency of the
brand.
It is going to be an easy case to maintain the
luxury dream value well as long as following
the model and Marketing 4Ps Management
master table.

45. Thank you!