Table of Contents

Luxury ........................................................................................................................................ 4
Brand Heritage ........................................................................................................................... 4
Brand Extension ......................................................................................................................... 5
Tiffany and Company ................................................................................................................ 8
About the brand.......................................................................................................................... 8
o Timeline of the brand: ..................................................................................................... 9
o Logo of the brand:- ....................................................................................................... 10
Brand Heritage ......................................................................................................................... 11
Marketing Mix of Tiffany ........................................................................................................ 13
Tiffany Brand Identity Prism ................................................................................................... 21
Elements Of Tiffany’s Brand Identity Prism ........................................................................... 21
Physique ................................................................................................................................... 21
Personality................................................................................................................................ 22
Relationship ............................................................................................................................. 22
Culture...................................................................................................................................... 22
Reflection ................................................................................................................................. 22
Self Image ................................................................................................................................ 22
Sustainability............................................................................................................................ 22
Brand Extension Possibilities of Tiffany ................................................................................. 24
3. Open Heart Fork and Spoon Baby Set ............................................................................. 26
About the brand ‘Dior’............................................................................................................. 34
Time Line of Dior .................................................................................................................... 34
Brand Profile ............................................................................................................................ 34
Brand identity prism ................................................................................................................ 38
Brand Physique- ................................................................................................................... 38
Personality ............................................................................................................................ 38
Relationship.......................................................................................................................... 38
Culture .................................................................................................................................. 39
Reflection ............................................................................................................................. 39
Self image ............................................................................................................................. 39
Consumer identity .................................................................................................................... 37
Brand equity in the Marketing strategy of Dior – .................................................................... 37
Brand Marketing Mix- 4 P’s .................................................................................................... 39

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References ................................................................................................................................ 67

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 Table of Figures

Figure 1: Tiffany Geographical breakdown and Business Segment .......................................... 9

Figure 2 : A Tiffany Setting diamond engagement ring and the famous Tiffany Blue Box. .. 11
Figure 3 : A 287.42 carat canary-yellow diamond. ................................................................ 12
Figure 4 : The design of the Tiffany's engagement ring. ......................................................... 12
Figure 5: Engagement ring from Tiffany ................................................................................. 14
Figure 6: Tiffany Diamond ...................................................................................................... 15
Figure 7: Signature Tiffany Elements ...................................................................................... 15
Figure 8: Selecting an engagement ring at Tiffany .................................................................. 17
Figure 9: Tiffany watches and everyday set ............................................................................ 17
Figure 10: Fragrance ................................................................................................................ 17
Figure 11: A Tiffany store in New York ................................................................................. 18
Figure 12: Tiffany store shown in the 1961 move "Breakfast at Tiffany" starring Audrey
Hepburn.................................................................................................................................... 20
Figure 13: Celebrities like Sandra Bullock loves Tiffany ....................................................... 20
Figure 14: Women's watch collection in stainless steel. Silver azure dial. 31 mm case set with
round brilliant diamonds .......................................................................................................... 24
Figure 15:Flask in sterling silver and brass. ............................................................................ 25
Figure 16: Bottle opener in silver, stainless steel and brass. ................................................... 25
Figure 17Ccocktail jigger in sterling silver and brass ............................................................. 25
Figure 18: Makers beer mug in sterling silver. ........................................................................ 25
Figure 20:Bear and Block three-piece set in bone china.for Kids ........................................... 26
Figure 19:Open Heart fork and spoon baby set in sterling silver. vv ...................................... 26
Figure 21Referance image for diamond or gemstone studded purses: .................................... 27
Figure 22:Reference image for precious stone studded footwear collection ........................... 28
Figure 23: Reference picture for Bags Collection for Brand Extension Possibilities.............. 29
Figure 24: Reference images for wine glass ............................................................................ 29
Figure 25: Reference Image for Diamond Studded veils and necklines .................................. 30
Figure 26: Reference images for footwear............................................................................... 30
Figure 27: Reference images of Brooch Bouquet for the Ceremonial Collection ................... 31
Figure 28: Reference images of Tiffany Wedding cake .......................................................... 31
Figure 29: Reference image for Tiffany store with centre placement of Tiffany Dream
Wedding Book ......................................................................................................................... 32
Figure 14:Dior Revenue breakdown ........................................................................................ 36
Figure 15: Dior demographic breakdown ................................................................................ 37
Figure 30 Perceptual Map of Dior ........................................................................................... 42
Figure 31 Image from Exhibition ............................................................................................ 51
Figure 32 Dior's Collection at the Exhibition .......................................................................... 52
Figure 1: Reference for Hair Accessory .................................................................................. 56
Figure 2: Product line in home decor category of Dior ........................................................... 57
Figure 19: Brand value of Dior worldwide ( Source: Statistics) ............................................. 58
Figure 20: Design ideas for Dior Q.......................................................................................... 59
Figure 21: Suggestion for Dior Q ............................................................................................ 59
Figure 33: Reference images of Bag Collection in Collaboration with HnM ......................... 65

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 Luxury

Accordingly, the basic definition of luxury may be summarized as follows:

Luxury is anything that is desirable and more than necessary and ordinary.

Today, the public desire seems to be shifting from acquiring things to acquiring experiences.
Therefore, luxury, in its new context is the enjoyment of the best in life.

This paper gives an overview of two of the major luxury brands of the world, Tiffany and
Dior. It also demonstrates their marketing mix as well as the brand prism. However, the
major focus is on the brand extension strategies of the brands, in accordance with their
heritage as well as their future.

Brand Heritage

Brand heritage is ”a dimension of a brand’s identity found in its track record, longevity, core
values, use of symbols and particularly in an organizational belief that its history is
important”. (Urde et al., 2007)
Heritage is the full range of one’s inherited traditions, monuments, objects, and culture. Most
important, it is the range of contemporary activities, meanings, and behaviours that one draw
from them. It is both tangible and intangible, in the sense that ideas and memories and many
other elements which gives an identity to a name. It can be a person, a product or a service.
Heritage is an essential part of the present one lives in--and of the future he will build. As
noted by the World Bank in its Framework for Action for Cultural Heritage and
Development: "all development interventions intrinsically involve cultural and social
dimensions that must be taken into account, making culture part of the purposive inducement
of development, thus increasing the cultural sustainability of development and its economic
effectiveness."
(Heritage, 2017)
Heritage - Luxury brands connect with their customer through the story of its lineage and
provenance. Legacy brands with a strong identity, who consistently bring the experience of
their brand alive for consumers, are poised to stand out.
A brand that is infused with a heritage stands for authenticity, credibility, and trust and can
provide leverage for that brand, especially in global markets.
A heritage brand emphasise history as an essential component of its true identity and clearly
bases its value proposition on its heritage

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 (Brand Heritage, Researchgate, 2017)

Brand Extension

The general structure of the brand extension decision process remains the same for fast
moving and luxury goods, specific elements such as tradition, heritage and craftsmanship are
key considerations before deciding to extend a luxury brand.
Brand extensions involve the use of an established brand name to enter a new product
category (Aaker and Keller, 1990).
In the words of Kapferer (1998; p. 86): “The golden rule, therefore, is never to compromise
on the brand’s set of values or its deeply rooted identity trait. The brand is a living memory
(of the founder)”.
The two models of brand extension-

Galaxy or pyramid
A luxury brand is linked to a specific "universe" where it is regarded as legitimate (Ferrari
makes cars), but when it ventures outside of that territory (Ferrari-branded computers) it loses
its legitimacy.
For any business to survive, it must be able to sell a sufficient quantity of its products. As
such luxury brands could only develop in densely populated areas, where there was a
sufficient number of people wealthy enough to afford luxury products.

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Mobility of customers, their ability to travel distances and transport personal belongings, was
a boon to luxury in that it enabled wealthy people in smaller communities to obtain luxury
goods (the rural gentry who take a shopping trip to the city), and eventually opened the world
market (the gentry of early America would take shopping trips to Europe).
In the same sense, globalization facilitates luxury because the maker of a very specific good
for which there is a small market can draw the business of the gentry of the entire world, not
just the local area.
Maintaining a niche market and a narrowly defined product offering is the safest strategy for
luxury producers. However, if a luxury brand is unable to find a sufficient body of customers
for its products, it must stretch to offer additional products.
The first method for doing this is vertical: the product seeks greater accessibility in price
and therefore creates a vertical array of product lines, generally reaching down to attract
luxury day-trippers or to skim the top of the premium market. The more it does this, the more
it must elevate its luxury lines.
The second method is horizontal: the brand remains within the luxury market but provides
more products to increase its customer base. For example, when a luxury clothier who has
specialized in men's clothing comes out with a line of women's clothing.
The horizontal method often proves the more difficult, because the brand becomes so well
identified with a specific product or customer that customers do not consider it in other
regards.
o The pyramid
Vertical extension of a luxury brand often takes on a pyramid structure. The original luxury
brand maintains its position at the pinnacle, with a broader number of brands offered beneath
it through the various strata of the premium market.
This is common in fashion, where the haute couture brand remains at the summit, with a few
prete-a-proter labels in boutique stores, a larger number of off-the-rack labels in specialty
clothing stores, and an even broader array of goods (accessories and cosmetics) in department
stores.
The benefit of such a model is that the sales at the lower tiers provide significant amounts of
capital such that the upper tier can be maintained, even at a net loss.
The danger to the model is that the firm may shift its focus to the most profitable lines at the
lower tiers and neglect the apex label until it loses its allure. The opposite is also possible, if
the lines at the base of the pyramid are so low in quality that it damages the reputation of the
brand.
o The galaxy
Horizontal extensions of a luxury brand are described as having a "galaxy" structure. The
main or original product becomes the brightest star while extension products, are arranged
around it.

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In this model, there are no lesser lines and the brand does not descend into the premium
market. They are all equal, all stars, though one tends to be brighter than the others. The sub-
brands are differentiated as product lines (fashion and cosmetics) or customer type (men or
women), not by price.

Success factor of luxury extension:

The authors provide a number of snippets from the literature on brand extensions that seem
relevant to luxury:
The more intangible values a brand has, the easier it is to extend. Given that luxury is about a
vision or concept more than the product, it is highly extendable.
When a brand is associated to quality, its extension confers a sense of quality to other
products. If it is mere competence, it cannot extend beyond its functional expertise.
When a brand is extended, care must be taken to ensure that focus is maintained on the
lifestyle or image to avoid discord
An extension must respect the identity of the original brand, but need not be in the same
product category.
A brand that has been established for a long period of time can more easily extend itself
without losing its identity. Newer brands are much more fragile.
Brands are cultural artefacts, which means that a brand is damaged by licensees who do not
share the culture of the licensor. Also, culture is more than skin-deep and cannot be
consistently faked.

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The first international luxury brand covered by this paper is Tiffany and Company.

Tiffany and Company

About the brand

Tiffany & Co. is an American luxury jewellery and specialty retailer brand. The head quarter is in New York City. It sells
jewellery, sterling silver, crystal, stationery, fragrances, water bottles, watches, personal accessories, chocolates and leather
goods. The company was founded in 1837 by the jeweller Charles Lewis Tiffany and became famous in the early 20th
century under the artistic direction of his son Louis Comfort Tiffany.
Tiffany is known for its luxury goods, particularly its diamond and sterling silver jewellery. It
markets itself as an arbiter of taste and style. These goods are sold at Tiffany stores, and
through direct-mail and corporate merchandising.

(Craft, 2019)

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 Figure 1: Tiffany Geographical breakdown and Business Segment

Mission
“To be the world’s most respected and successful designer, manufacturer and retailer of the
finest jewellery. We believe it is our moral duty to sustain the natural environment."

History
Tiffany was founded in 1837 by Charles Lewis Tiffany and John B. Young in Brooklyn,
Connecticut. It was started as a "stationery and fancy goods emporium". The store was
initially operated as "Tiffany, Young and Ellis" and they sold large variety of stationary.
The name was shortened to Tiffany & Company in 1853, when Charles Tiffany took control
and established the firm's emphasis on jewellery. Since then, the company has opened stores
in major cities worldwide. Unlike other stores at the time in the 1830s, Tiffany clearly
marked the prices on its goods to forestall any haggling over prices. In addition, against the
social norm at the time, Tiffany only accepted cash payments, and did not allow purchases on
credit.
(Wikipedia, 2019)

o Timeline of the brand:

1837 – The first Tiffany store opens in New York City. The first day’s sales total is USD
$4.98.
1845 – Tiffany publishes the first direct mail catalogue in the U.S. and introduces Americans
to luxury goods. Now known as the Blue Book, it’s still released annually and features the
world’s rarest jewels.
1851 – Tiffany is the first American company to institute the .925 sterling silver standard,
which is later adopted by the United States.
1866 – Tiffany introduces the Tiffany Timer, America’s first stopwatch.

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1886 – Charles Lewis Tiffany introduces the Tiffany Setting, the engagement ring as known
today. It has been a symbol of the world’s greatest love stories for over 130 years.

1902 – Louis Comfort Tiffany, son of Charles Lewis Tiffany, becomes the company’s first
official design director.

2009 – The Tiffany Keys collection launches. Beacons of optimism and hope, the iconic
pendants symbolize the possibilities of a bright future.
2017 – Tiffany launches a fragrance collection. The first scent released, Tiffany Signature, is
soon followed by Tiffany Intense and Tiffany Sheer.

The Blue Box Café opens at the Fifth Avenue flagship store, enabling everyone to enjoy
breakfast at Tiffany.

Tiffany introduces a luxury Home & Accessories collection, in which everyday objects are
made extraordinary.

The Tiffany Save the Wild collection launches. Tiffany donates 100% of the profits to the
Wildlife Conservation Network to support the preservation of elephants, rhinos and lions,
pledging a total donation of USD $4 million by December 2019.
(Tiffany & Co, 2019)

o Logo of the brand:-

Colour of the logo
 The black color in the Tiffany logo represents sophistication, excellence, innovation.
 Tiffany blue is a mixture of bright green with a hint of blue. Its hex code is
#0ABAB5.This colour is the official colour for Tiffany’s jewellery line and
packaging.
Font of the logo
Tiffany uses serif typeface named Sterling Font.

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 Brand Heritage

Figure 2 : A Tiffany Setting diamond engagement ring and the famous Tiffany Blue Box.

The world’s most iconic jewellery brand, the history of Tiffany dates back to 1837 Charles
Lewis Tiffany and his friend John B Young opened a small stationery and fancy goods store
in New York City with the help of a $1,000 contribution from Charles’ father. Located on
Broadway, the store had quickly established itself as the go-to emporium for fashionable
ladies who were in search of jewels and timepieces with a clean American style that
represented a distinct departure from the opulence associated with the Victorian era.

It was the first American company to adopt the British silver standard of using only metal
that was 92% pure. And therefore Tiffany received international recognition when it won the
grand prize for silver craftsmanship at the 1867 World’s Fair, Paris. It was not until 1878 that
the link between Tiffany jewellery and the world’s finest diamonds was made into the history
books. This was the year the company had acquired an astonishing 287.42ct rough Fancy
yellow diamond from the Kimberley diamond mines in South Africa. It was cut into a
128.54ct polished gem, with 82 facets to maximize its fire and sparkle, then the diamond was
set into a necklace worn by Audrey Hepburn in the publicity photographs for Breakfast at
Tiffany’s in 1961. Named the Tiffany Diamond, the canary-coloured gemstone helped in
cementing the jewellery brand’s reputation as the ultimate luxury destination and today it still
resides in the Tiffany New York flagship store as it has not been sold till now.

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 Figure 3 : A 287.42 carat canary-yellow diamond.

In the year 1886 the Tiffany Setting made its debut, quickly made a name for itself as the
perfect engagement ring. What made this setting so outstanding is that it was the first ring
specifically designed to showcase the diamond, off of the band. This allowed for a full 360-
degree view of the stunning gemstone. Tiffany wanted to emphasise the natural radiance that
his diamonds have. This design made Tiffany & Co. become the world’s premier jeweller for
diamond engagement rings.

Figure 4 : The design of the Tiffany's engagement ring.

Tiffany had first achieved international recognition at the 1867 Paris World’s fair. The
company was awarded the grand prize for silver craftsmanship, the first time that an
American design house had been so honoured by a foreign jury. Tiffany was the first
American company to employ the British silver standard (92% pure). Largely through the
efforts of Charles Lewis Tiffany, this standard was adopted by the U.S. Government.
The legacy of Tiffany design is richly told in the annual Blue Book Collection, featuring
Tiffany’s and the world’s most spectacular jewels. Initially published in 1845, the Tiffany
Blue Book was the first such catalogue to be distributed in the U.S. Since 1878, the signature
Tiffany Blue® colour has distinguished the catalogue’s cover, as well as the famous Tiffany
Blue Box®, an icon of style and sophistication.

The 20th century progressed, Tiffany designs captured the spirit of the times, from the
extravagance of the 1920s to the modernism of the 1930s and the aerodynamic age of the
1940s and 1950s. Tiffany china set the stage for White House dinners and Tiffany jewels
accented the elegant clothes of the world’s most glamorous women, including Jacqueline
Kennedy Onassis, Elizabeth Taylor and Diana Vreeland. Very often Jean Schlumberger
created their jewels. This great 20th century jewellery designer arrived at Tiffany in 1956.
His bejewelled flowers, birds and ocean life remain the pride of Tiffany & Co.
Business and professional organizations have also commissioned Tiffany to create custom
designs. The most well-known is the Vince Lombardi Trophy for the National Football

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League Super Bowl® Championship. Tiffany has created the trophy since the first Super
Bowl in 1967.
Throughout the company’s history, Tiffany designers have drawn on the natural world for
inspiration. Nature is also the source of the precious metals and gemstones necessary for
creating their designs. Tiffany was an early proponent of obtaining these materials in ways
that are socially and environmentally responsible. As Tiffany & Co. Chairman and CEO
Michael J. Kowalski, has said, “Our position as a leader in the luxury jewellery market gives
us the opportunity and the responsibility to conduct our business in a manner that is
consistent with our core beliefs—protection of the environment, respect for human rights and
support for the communities in which we do business.” In addition to Jean Schlumberger,
Tiffany welcomed other visionary designers, including Elsa Peretti, who transformed 1970s
jewellery design with an elegant simplicity based on natural forms; and Paloma Picasso, who
followed in 1980 with jewellery of bold originality.
In 2012 Tiffany marked its 175th anniversary. In honour of this milestone, the Tiffany
Diamond was reset in a magnificent necklace of dazzling white diamonds. After traveling to
gala celebrations in Europe, Asia and the United States, the diamond in its new setting
returned to its permanent place of honour on the Main Floor of Tiffany’s Fifth Avenue store.

This priceless gem is symbolic of a heritage based on the highest standards of quality and
design excellence. These standards have made Tiffany & Co. one of America’s great
institutions, a world-renowned jeweller with over 200 stores worldwide, and something more:
the trusted maker of gifts that will be treasured for a lifetime.

Marketing Mix of Tiffany

Product:
The product strategy and mix in Tiffany & Co marketing strategy can be explained as
follows:
Tiffany & Co is majorly into luxury jewellery and specialty items. Its name is synonymous
with exquisite designs and flawless craftsmanship. It has a wide product range in its
marketing mix which includes watches, customized water bottles, personal accessories,
designed silver ware, china ware and premium leather goods. As we can infer, Tiffany &
Co focuses on affluent class people and the brand is associated with style, elegance,
exclusivity and sophistication. They have a unique The Blue Box style of wrapping and
presenting their products which they claim to melt the hearts of the people as they receive it.
Tiffany have specially handcrafted engagement rings, for bride and groom, wedding rings,
exclusive huge list of jewellery collection, also products manufactured under the famous
designers worldwide, bracelets, gift cards, bands, studded watches and premium fragrance
perfumes. They have diversified their products to baby items, pet items, accessories, frames,
decorative sets, eye wear, textiles, custom made key rings and many more. Tiffany & Co
positioned itself as a provider of all luxury goods to the premium segment of the society.

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They have made to order products which are specially designed by the designers which gives
customers a sense of exclusivity.

Figure 5: Engagement ring from Tiffany

Jewellery section of Tiffany & Company includes-

 Men’s jewellery
 Pearl Jewellery
 Tiffany Jewellery
 Wedding Bands
 Earrings
 Rings
 Bracelets
 Pendants and Necklaces

Jewellery Collection includes

 Tiffany Now
 Tiffany Metro
 Tiffany Yellow Diamonds
 The Atlas Collection
 Tiffany Infinity

Watches include

 Diamond Watches
 Men’s Watches
 Women’s Watches

Fragrance

 Tiffany eau de perfume

 Tiffany lotion
 Tiffany shower gel

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Home and Accessories

 Novelties and Games

 Frames
 Decorative Accents
 Decorative Boxes and Trays
 Key Rings
 Money Clips
 Eyewear
 Leather Goods

Figure 6: Tiffany Diamond

Figure 7: Signature Tiffany Elements

Price:
Below is the pricing strategy in Tiffany & Co marketing strategy:
Being a luxury goods manufacturer, the prices are as according to the affluent segment of the
society. The company has positioned itself as an arbiter of style and taste and its products are
associated with elite status.

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It has targeted upper-class people from affluent families that look for exclusivity,
sophistication, elegance, and style. The brand is all this and more as it caters not only to high-
end products but its gift wrapping is also unique and appreciated by all.

On an average, it sells its diverse range of products ranging from $1100 up to $25000 or even
more which is around 3-4 times higher than the industry average but remains one of the
market leaders in the segment. They adopted their pricing strategy from its founding day’s
that goes way back in the 1830s, where they broke the general norm of negotiating the price
for a product and started putting up a fixed price for each of their product. Initially, they
struggled with this approach as customers simply substituted them for any cheaper
alternative. But soon word spread & Tiffany became to be known as an expensive and high-
quality brand.

Reasons for high price:

o External Environment – Consumer Confidence

o Supplier Power – Diamonds: Although Tiffany and Co have six suppliers, however
the diamond industry only have limited players and is highly controlled.

Internal Factors: Factors like diamond cuts, craftsmanship, supreme designers and brand
recognition have helped maintain Tiffany its pricing threshold.

In response to competitor’s lower price pricing strategy, and observing an increase in demand
for affordable jewellery, Tiffany came up with maximum market share pricing strategy for
its new additional product line led by their Atlas collection division. They entered into
affordable jewellery domain with products costing as low as $250. This addition has seen its
sales climbed over 13% in April 2014 compared to the same quarter for the previous year.
(Linkedin, 2018')
Prices of Tiffany Engagement Rings:
The prices differ in accordance to the filters like carat, colour and clarity chosen.

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Figure 8: Selecting an engagement ring at Tiffany

Figure 9: Tiffany watches and everyday set

Figure 10: Fragrance

(Tiffany & Co, 2019)

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Place:
Following is the distribution strategy of Tiffany & Co:
Tiffany was started in 1837 in New York and it is the official Headquarters. They
established this as their flagship store in 1940, which was ahead of its time creation. The
interiors, floorings and window displays were best in class and it became a Hollywood
attraction as a location set in movies. Later they started expanding their retail outlets at
selected locations, in 1990 in Virginia, which became the largest Tiffany & Co. store outside
the US. Similarly, they have their stores at prime locations, Heathrow Airport in the United
Kingdom, Melbourne in Australia, Manchester, Madrid, Sydney and many locations across
the globe. Each store served as connect with the customer and were designed to its best in
style, offered several products, gave the customer an elite feeling.

According to the Economic Times and NDTV, Tiffany and co will soon open its stores in
India with collaboration to Reliance Brands. It will be its 3rd attempt to tag the success flag in
India too.

The majority share of sales, approximately 50% takes place in the US.
It has well-developed manufacturing facilities that are responsible for 60% of its products.
The rest are derived from overseas third-parties. In the United States, silver goods and
jewellery are manufactured in Mount Vernon, Cumberland, and Lexington, and the silver
hollow-ware is manufactured in Rhode Island. The brand has other facilities to polish and cut
the diamonds.

Figure 11: A Tiffany store in New York

Promotion:
The promotional and advertising strategy in the Tiffany & Co marketing strategy is as
follows:

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Tiffany & Company has a strong and aggressive marketing policy to create positive brand
awareness. It has created some magnificent ad campaigns and has shown them via
newspapers, and magazines like Texas Monthly, Black Enterprise, Conde Nast Traveller,
Money, The New York Times Magazine and Vanity Fair.
Tiffany & Company has used its catalogue as part of its advertisement policy. The catalogue
was free till the year 1972 but later a fee was levied. The company offers a corporate-gift
catalogue every year and several corporate buy its gift items for achievement recognition
award. Tiffany’s flagship store at Manhattan in New York City has been the favoured
location of several movies like Sweet Home Alabama, and Breakfast at Tiffany starring
Reese Witherspoon and Audrey Hepburn respectively.

They had their print media till the early 21st century active, but later they stopped promoting
on print ads and all forms of newspaper advertising. Tiffany focused more on the engagement
with the customers, and then focused their strategy towards digital media. As every product is
available online, they created their digital presence. Being a luxury brand, it was a challenge
to sell their product which may be a once in a while purchase for customers.

They had their content strategy so well, that they garnered millions of followers on social
media. There was a plenty of room for luxury brand to expand their business online. With the
advent of digital and social media platforms, the company displays banner advertisements in
mobile app of New York Times.

The app can be downloaded free of any charge. Tiffany & Company uses social media
platform for direct connection with its customers. It has its official website to enable any
relevant information. The company has a fan following of 10.0 million and 1.6 million in
its Facebook page and Twitter account respectively.

The key aspect of their online presence was the augmented reality feature. Tiffany have an
application Engagement Ring Finder app which displays several suitable ring options to the
consumer after it puts her finger under the phone camera. This helped customers to get what
they desired especially in luxury segment without having visited the store. Emotive selling is
their main strategy in selling products online. This completes the marketing mix of Tiffany &
Co.
Tiffany & Company has been responsible for making several trophies including Vince
Lombardi Trophy at the Super Bowl for the winning NFL Team, Larry O’Brien Trophy for
winning team of NBA Finals, MLS Championship Trophy, Detroit Gold Cup and Rugby
League World Cup Trophy, For San Francisco Giants the company has created 2010 and
2012 World Series Rings.

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Figure 12: Tiffany store shown in the 1961 move "Breakfast at Tiffany" starring Audrey Hepburn

Figure 13: Celebrities like Sandra Bullock loves Tiffany

(Marketing mix, 2018)

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 Tiffany Brand Identity Prism

Personality
Elegant & Pure
Physique
Sophistication
Iconic
Iconic & Classic
Patented – Blue and
Romantic & Delicate
White
Tiffany & Co. logo

Relationship
Loyalty
Trust Culture
Devoted American
Personal and Emotional Prestigious
Long Term Timeless
Special Noble

Reflection
Graceful woman Self Image
Woman with interest in Elegant
fashion Luxurious
Upper Class Woman Successful
Woman who strives for Exclusive
social status through high Confident
quality jewelry Bold and beautiful

Elements Of Tiffany’s Brand Identity Prism

Physique

The brand logo shows “Tiffany & Co.” written in black which is simple yet iconic. Tiffany
& Co. uses blue box with a tinch of white color which is the identity of the brand. The blue
and white color is used in every box which is given with every purchase made at Tiffany’s.
The blue box is patented and can only be given by Tiffany’s either given with a purchase or
bought separately.

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Personality

Women find Tiffany’s as a brand which symboloizes Elegancy and Purity. The designs of
Tifaany’s depicts a sense of sophistication. All the designers who work Tiffany’s have always
tried to give their customers something which is iconic and classic and that is what customers
have found in Tiffany’s since 1837. Designs are one of their kind. The ‘T’ of Tiffany’s is
seen in most of the designs in ther products. Also Tiffany’s have always been a destination
for the bride to be and groom to be. The wedding rings from Tiffany’s have always been a
symbol of promises made during their wedding and therefore Tiffany’s also inculcate
romance, love and delicacy in their brand personality.

Relationship

Tiffany’s customers while buying jewellery or any kind other product have always trusted the
brand for its quality and services also after buying they felt the same foe their after sales
services and therefore its customers are always loyal to the brand. As the brand attends to the
customers at very important time of their life that is their marriage, the customers feel a sense
of personal and emotional connect with the brand. A jewellery is for a lifetime and so is the
relationship with the brand lifetime and longterm. This all in all makes Tiffany a very special
brand for its customers.

Culture

The Tiffany’s Culture defines their collective beliefs. They represent and honor the
best aspects of their rich legacy. Tiffany’s has long been known for its American culture,
and its prestigious products. The customers fall for its timeless design since decades.
Tiffany’s have always believed in doing the right thing and therefore have been contributing
rigorously towards environment and community in which they operate. The company also
believes it has a responsibility to the greater world, which is why thier long legacy of
philanthropy is strongly connected to their core business

Reflection

Tifaany’s see their customers as women with high interest in fashion, who are graceful,
women who strives for social status through high quality jewellery. They see their customers
who wish to have a masterpiece which will also have an emotional connect and love for the
product.

Self Image

As the high end products are made to give quality and luxurious feel, customers while using
the products feel confident, successful, bold and elegant. The beautiful products imaparts in
them a feeling of being beautiful themselves.

Sustainability
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Tiffany focuses highly on sustainability. They have three different pillars to achieve
sustainability.

Planet - They committed to protect the natural world by taking bold action on climate change
and conservation.

 Achieving Net Zero Emissions – They aim to reduce energy uses in their operations
by 15 – 20% by 2020. Encouraging supply chain reductions would be next step.
 Tiffany Blue Boxes, Bags and Catalogues – They started sourcing sustainable
packaging and catalogues which can be 50% recycled.

 Sustainable Building -Tiffany places a high priority on excellent design, including in

stores. Behind the beauty of their buildings are sustainable design elements which
reduce overall environmental impact; reduce costs; and support employee and
customer wellness at retail, office, distribution and manufacturing facilities. In 2018
and 2019, five of their new retail stores in China received LEED (Leadership in
Energy and Environmental Design) certification demonstrating excellence in
sustainable building design and construction.

Product – They strive to ensure that every step in the journey of their products contributes to
the well-being of people and the planet.
 Responsible Mining - They does not own or operate any mines, most of the products
rely on mined material. They believe the manner in which precious metals and
gemstones are extracted is of the utmost importance. They uphold the highest
standards for sourcing across their mining supply chain, and we work globally to
improve the practices of both large- and small-scale mining operations. “No Dirty
Gold Golden Rules” beginning in 2005 was started by them.
 Human Rights- They strive to respect and protect the rights of all people whose lives
are impacted by their business, from the miners who provide raw materials to the
workers who craft jewellery. Within the Company, they have developed a robust
approach to protecting human rights through responsible sourcing including
the Tiffany & Co. Supplier Code of Conduct.
 Craftsmanship - At Tiffany & Co., fine craftsmanship means embedding social and
environmental integrity throughout the manufacturing process—from sourcing the
raw materials to cutting and polishing diamonds to crafting jewellery. They craft the
majority of their jewellery products in their internal workshops and facilities.

People - They honour their employees, customers and communities through a dedication to
diversity, inclusion, fairness and development.

 Championing Women - Tiffany & Co. is proud to champion women—as customers,

employees and leaders in the Company. They focus on the representation of women
throughout the Company and embed respect for gender equality through policies and
commitments. In 2018, women held 60% of all positions in management. In the
Annual Meeting of Shareholders June 2019, 45% of our Board of Directors is women.

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  Employee Engagement - They strive to maintain an open and ongoing dialogue with
their employees, which helps them to make Tiffany a better, more fulfilling place to
work. Throughout the year, they engage their employees through a variety of onsite
events, including trainings and health and wellness activities.
 Health and Safety - Tiffany & Co. is committed to the health and safety of their
employees. In 2018, they codified their global Occupational Safety and
Environmental Management Standards to articulate their expectations around
managing the safety and environmental aspects of all worldwide retail, offices,
distribution facilities and manufacturing locations they operate.

Brand Extension Possibilities of Tiffany

For Tiffany’s Brand Extension possibilities can be suggested in two ways

1.Studying the previous extensions and suggesting a new brand extension accordingly.
2. Developing a whole new theme for the brand.
I. Studying the previous extensions and suggesting a new brand extension accordingly.
The brand has already extended its product range in different product lines. Being a stunning
jewellery brand it already has developed its product line in completely different product line
like bags, sunglasses, perfumes, etc
In the brand’s earlier brand extension lines, Tiffany’s has always made it possible that form
meets function and quality to make ordinary objects extraordinary. Following are earlier
brand extensions by the Tiffany Brand.
1. Watches

Figure 14: Women's watch collection in stainless steel. Silver azure dial. 31 mm case set with round brilliant diamonds

Price R: $6200 - $1200

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About the product : Here again Tiffany has combined the function of watch with the
masterful craftsmanship of diamonds making it perfect synthesis of a watch and a jewellery
design. Following are the characteristics of the watch collection
 Water resistant.
 Swiss-made.
 Carat total weight .76.

2. From the Home and Accessories Collection under Tableware & Barware

Figure 15:Flask in sterling silver and brass.

Figure 16: Bottle opener in silver, stainless steel and brass.

Figure 17Ccocktail jigger in sterling silver and brass

Figure 18: Makers beer mug in sterling silver.

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 Price : $440-$975
About the product : From the Home and Accessories Collection under Tableware &
Barware, Tiffany’s have crafted Flask in sterling silver and brass, Bottle opener in silver,
stainless steel and brass, cocktail jigger in sterling silver and brass and a sleek sterling silver mug. All
these combinations are rare to be found, example a bear mug made of sterling silver cant be
found easily in luxury brands. Following are the characteristics of the Beer Mug in Sterling
silver
 Sterling silver
 3.1"W x 5.3"H

3. Open Heart Fork and Spoon Baby Set

Figure 20:Bear and Block three-piece set in bone china.for Kids Figure 19:Open Heart fork and spoon
baby set in sterling silver. vv

Price : $250

About the product ; From the collection of Gifts for Baby, The simple, evocative shape of
Elsa Peretti Open Heart designs celebrates the spirit of love. This classic fork and spoon set is
a timeless choice for baby's first Tiffany. Following are the characteristics of the spoon set

 Sterling silver

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 4.25" long
 Original designs copyrighted by Elsa Peretti

Brand Extension for Tiffany Brand

All brand extensions shown above of the Tiffany’s have common outline that is making
ordinary things extraordinary. Tiffany’s through these brand extensions have won in bringing
the luxury to the everyday things. Function fashion and luxury have come together in its
brand extensions. By understanding the concept and purpose behind this brand extension of
the Tiffany’s, the following brand extensions can be suggested.

1.Gemstones studded Purses

About the products : A collection of clutches handbags and purses that would handcrafted
with diamonds and other gemstones embedded in them. Again giving a luxurious feel to
customers, this purses will boast more confidence in woman while carrying a Tiffany
diamond studded bag. The product can be handcrafted from the the Tiffany’s hollowware
store.

Figure 21Referance image for diamond or gemstone studded purses:

2. Gemstone studded footwear collection

About the products : A collection of footwears which can have diamonds or precious
gemstones studded in it. The footwear can even have 18k gold platting. Rather than
producing whole collection, designs can be shown to the customers and customised footwear
of their size and choice can be made. The combination of precious stones and metal with a
footwear can again be related to brands concept of making ordinary everyday things into
extraordinary .

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 Figure 22:Reference image for precious stone studded footwear collection

II. Developing a whole new theme for the brand.

Tiffany is famous for their wedding collection. Tiffany Settings is the symbol of world’s
largest love stories. Inspired by that, we have come up with Tiffany’s Wedding Collection.
The Brand Extension would follow that Galaxy model as adopted by Tiffany.
Possibility 1:
Tiffany wedding collection – Ceremonial Collection

The proposed brand extension has been built upon the core values and the heritage of the
brand. All these years, Tiffany has stood proud on the pillars of quality. All the proposed
products of the Ceremonial Collection will also have a trademark quality. Its heritage has
long been embedded along the vision of a luxurious weddings. The proposed products are:
 Bags
 Veil
 Footwear
 Wine Glass for first drink

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  Brooches Bouquet
 Wedding Cakes

Bags:

Figure 23: Reference picture for Bags Collection for Brand Extension Possibilities
Price Range: After reviewing Tiffany’s other accessories, the price range of these bags can be
placed in the range of $7000 - $15,000. The prices will differ in accordance with the delicacy
and intricacies of design used.
Wine glass:

Figure 24: Reference images for wine glass

Price Range: The pricing range would be placed in the range of $5000 - $10,000. The prices
would differ on the basis of crystals and designs.

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Veil:

Figure 25: Reference Image for Diamond Studded veils and necklines
Price Range: These bridal veils are of utmost importance to an ideal bride. Hence, taking its
brand power and the price range of dresses by other supreme global designers like Dior in
consideration, the price range of the veil can be in between $5000 - $20,000.
Footwear:

Figure 26: Reference images for footwear

Price range – The price range would be placed between $6000 - $20,000. The prices may
vary from the quality of diamonds used and intricacies of the designs.
Brooch Bouquet:

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 Figure 27: Reference images of Brooch Bouquet for the Ceremonial Collection
Price range – The price range would be placed between $10,000 - $20,000; depending upon
the intricacies of the design.
Wedding Cake:

Figure 28: Reference images of Tiffany Wedding cake

Price range - The Tiffany Wedding cake would be placed at $500 - $2000.
Possibility 2:
Tiffany Dream Weddings Album

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 Centre-stand that will contain the
album and will have 3d
projections

Figure 29: Reference image for Tiffany store with centre placement of Tiffany Dream
Wedding Book
Tiffany would publish a blue book of vision weddings. Holding onto its unique branding
strategy of publishing a blue book of jewelleries, Tiffany will publish an album of ‘Tiffany
dream weddings’- a book to showcase the most beautiful moments of weddings of Tiffany’s
clients. This book will only be a hard copy. The book will feature only one wedding per year
and it will be showcased in each and every store of Tiffany for whole one year.

Justifying the Brand Extension:

 Extending along the core values
The new product must be a logical fit to the brand, compatible, expected and follow
the current brand story. The link between the new product and the parent brand should be
easily tracked. The biggest brand extension pitfalls fall into this category.
The proposed brand extension has been built upon the core values and the heritage of the
brand. All these years, Tiffany has stood proud on the pillar of quality. All the proposed
products will also have a trademark quality.
Its heritage has long been embedded along the vision of a luxurious wedding. The proposed
products like the veil, diamond decorated vine glasses, the crystal shoes; all accentuated a
person’s lifelong dream of a grand wedding.
 Providing an incompatible experience
The more intangible values a brand has, the easier it is to extend. Given that luxury is about a
vision or concept more than the product, it is highly extendable.

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Tiffany’s will publish an album of ‘Tiffany dream weddings’- a book to showcase the most
beautiful moments of weddings of Tiffany’s clients. More than an album, this is will be an
unforgettable experience – being the ‘Tiffany’s ideal couple’ for an entire year. All its
customers for the entire year will look at only you.

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 Brand 2
Dior

About the brand ‘Dior’

Christian Dior SE, commonly known as Dior, is a French luxury goods company controlled
and chaired by French businessman Bernard Arnault, who also heads LVMH, the world's
largest luxury group. The company was founded in 1946 by designer Christian Dior. It
currently designs and retails leather goods, fashion accessories, footwear, jewelry,
timepieces, fragrance, makeup, and skin care products, while also maintaining its tradition as
a creator of haute-couture under the Christian Dior Couture division. The Christian Dior label
remains largely for women's offerings, although the company also operates the Dior
Homme division for men and the baby Dior label for children's wear. Products are sold
throughout its portfolio of retail stores worldwide, as well as through its online store.

Time Line of Dior

In 1946- Christian Dior founded the brand.

1946- The first collection is shown, the “New look” is introduced.
1949- Established Perfume Christian Dior
1951- First Book, named Je Suis Couturier was released
1953- First Dior lipstick was released Named Rouge Dior
1967- Opening Baby Dior and Pret A Porter shop
1969- Launched Dior cosmetics (full range)
1970- First menswear line was introduced
1995- Lady Dior Bag was created.
1999- Introduction of J’adore fragrance.

Brand Profile
The heart of Dior still beats in the 8th arrondissement of Paris, at 30 aenue Montaigne, where
it all began. The logo of the company Dior is the name of the founder. It is a simple word
mark with the brand name and using a Nicolas Cochin font. Despite the company being
leading luxury player, the logo is simple and straightforward. Dior is associated with a
feminine personality. Dior’s company is also synonymous of dreams. The brand always
wants to reach the excellence in every piece they create and it’s on the same motto that the
company has reached the success known today. Know-how, respect of the client, and the
willing to bring beauty for every woman are also values that define the company. Employees
still carry these values in their works, by respecting the tradition and heritage of the company.

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Dior sells a range of products such as women and men’s fashion, Baby Dior, make up and
skincare, jewellery, fragrance and home ware. It houses 6,280 emplyees in France and around
the worlds and has 205 boutiques around the world.
Dior itself holds 42.36% shares of and 59.01% voting rights within LVMH. Some of the
profiling details is shown in Table 1
Table 1: Dior Profiling (Source: Wikipedia)

Type SocietasEuropaea

Traded as Euronext: CDI

ISIN FR0000130403

Industry Luxury goods

Founded 16 December 1946; 72

years ago

Founder Christian Dior

Headquarters 30 Avenue Montaigne,

Paris, France

Number of 210
locations

Area served Worldwide

Key people Bernard Arnault

(Chairman)
Sidney Toledano
(CEO)[1]
Maria Grazia Chiuri
(Creative Director)
Kim Jones
(Creative Director, Dior
Homme)[2]

Products  Apparel and footwear

 Department store
 Other specialty

Revenue €46.826 billion (2018)[3]

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 Operating €9.875 billion (2018)[3]
income
Net income €2.574 billion (2018)[3]

Total assets €77.271 billion (2018)[3]

Total equity €36.372 billion (2018)[3]

Owner LVMH
Number of 84,981 (2018)[3]
employees

Divisions  Christian Dior Cosmetics

 Dior Homme
 Parfums Christian Dior

Subsidiaries  Christian Dior Couture[4]

 LVMH (42.36%)

Website dior.com

Christian Dior revenue breakdown by business segment: 12.6% from Perfumes and
Cosmetics, 11.5% from Wines and Spirits, 30.1% from Selective Retailing, 37.3% from
Fashion and Leather Goods and 8.6% from Watches and Jewelry as shown in Figure 30

Figure 30:Dior Revenue breakdown

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 Figure 31: Dior demographic breakdown
Christian Dior revenue breakdown by geographic segment: 25.0% from United States, 7.0%
from Japan, 28.0% from Asia (excluding Japan), 19.0% from Europe (excluding France),
10.0% from France and 11.0% from Other Markets as shown in Figure 31: Dior demographic
breakdown

Brand equity in the Marketing strategy of Dior –

Dior has been ranked 189th in Forbes magazine list of global 2000 brands (as of May 2017)
while it has been ranked 234 in the fortune 500 list (June 2016). The brand has been valued at
$42.7 billion as of May 2017 (market capitalization value method) generating revenue of
$43.7 billion.

Consumer identity

Consumers for the brand ‘Dior’ are independent, highly earning women who like to be
simple as well as stylish. Consumers can be divided into two segments- occasional customer
and regular customer. As brand keep on expanding the range of products, the consumer
spectrum variates even more. The customer of Dior see themselves as a sophisticated,
conscious of current trends and who looks for the products of one of its own kind.

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Brand identity prism
Personality
Physique
Fashionable, elegant,
Elite status classic, trendy
and quality

Relationship
Elegance and
luxury, Loyality, Culture
Pleasure and
elegant French luxury fashion,
Classic heritage brand

Reflection
Self image
Fashion conscious, high
income who wants to look High income, social class
elegant.

Brand Physique-
The logo of the company Dior is the name of the founder and fashion designer of the brand
Christian Dior. The Dior logo represents a simple word mark with the brand name and using
a Nicolas Cochin font. Despite the fact that the company is world-renowned in the luxury
industry, the logo remains simple and straight-forward, reinforcing its ease of identification
and being easily recognizable for consumers.(wordpress, 2014)
The Dior logo is associated with notions as luxury, glamour, prestige, sophistication and
originality. Regarding colors of Dior logo, the use of black and white color in it transmits a
natural feeling of warmth, reinforcing the power of the overall design and the classy
impression it gives.
Personality
Dior as many fashion brands, communicate on its products but also on its brand through
various supports and media. Their advertisements focus on their products rather than the
brand itself. The ad is always really elegant and sophisticated with quite often the appearance
of a famous person being the “muse” of the brand.
Relationship
To build a relationship with the customers, Dior has taken many steps such as-
Released regular series of aspirational films in order to encourage online purchasing and
strengthen its exclusivity image. In 2011, 4 short films based on the concept of “Four cities,
Four women” with Marion Cotillard inspired from the Lady Dior bags. By offering original

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visual contents on various topics, the company increases the loyalty of its followers and
remains coherent with its core values.D ior is a luxury brand unique, which wants to be close
to its customers. This luxury house has understood the importance of social media presence
and seeks to interact with its community to expand its universe to Internet.
Culture
Dior is French luxury classic brand. A museum has been created in Granville in memory of
Christian Dior where he spent his childhood. This exhibition shows some pieces created by
the designer and promote the evolution of the brand through an historical point of view.
Reflection
Brand sees their customers as fashion conscious young personalities who wants to look
simple elegant but stylist.
Self image
Consumer sees themselves as a independent, confident, social, simple yet stylish
women/men.

Brand Marketing Mix- 4 P’s

Marketing Mix of Christian Dior analyses the brand/company which covers 4Ps (Product,
Price, Place, Promotion) and explains the Christian Dior marketing strategy. The section
elaborates the pricing, advertising & distribution strategies used by the company.
Product:
Dior is a luxurious fashion brand and was launched to satisfy styling sense of high-class
people. It has maintained its position as the creator of Haute-Couture, which is a world-
recognized division. Its first collection was launched in the year 1947 and became popular as
“New Look”. Dior Label includes offerings mostly for women but the company has Dior
Home for men and Baby Dior for kids. It has a strong presence in apparel, accessories,
cosmetics etc. Under these categories, it offers ready-to-wear clothing line which includes
dresses, skirts, jackets& coats, blouses & t-shirts etc., shoes, bags, costume jewellery,
sunglasses, and fragrances. Miss Dior and Poison are some of its popular fragrances made for
women and Sauvage, Jules and Higher cater to men’s taste. Further Christian Dior also offers
various make-up items for face, eyes, lips and nails such as foundation, powders, liners,
lipsticks, manicure etc. to name a few. It has a wide range of selection of skincare products
such as cleansers and toners, creams, etc. The Christian Dior brand also offers designer
jewellery and time pieces to its customers as well.
Price:
Dior markets its products for high-class and high-income group with help of its quality
assurance and exclusive creations. It targets customers who are elegant with a social
distinctiveness. The segment of population targeted for these products are generally not very
price conscious and are willing to pay for the status symbol of these luxurious products and it
has developed a loyalty-based relationship with their customers allowing them to charge
higher for the products. As its products are of premium quality it has adopted a premium
pricing policy for its products. Dior has developed a relationship based on trust with its
customers and it is these high-end customers that have helped the company to survive and

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flourish on premium prices. Dior is all about exclusivity and its clients recognize this fact and
hence do not hesitate to purchase Dior products at premium prices because at the end of a day
it is a status symbol to be seen with a Dior product.
The women’s clothes, shoes, bags, accessories and jewelry are offered with a starting range
of 3000 euros, 400 euros, 220 euros, 700 euros, 135 euros, and 115 euros respectively. While
the men’s ready-to-wear, shoes and leather goods are offered with a starting price of 150
euros, 370 euros, and 140 euros respectively.
Place:
Dior products are exclusive and original. They are available in nearly two hundred and ten
locations in the world. In Asia it is present at one hundred and nine locations, In Europe at
forty-five locations, In Middle-East at Eight, forty-eight in North America, six in Oceania,
four in South America and one each in Caribbean and Africa. Dior’s franchise stores are
located at prime locations in important cities like New York, London, Tokyo, Beijing and
Paris. Headquarter base of the company is located in the Paris in France. Dior sells all its
products through its chain of retail stores in the global market and also through its various
online stores at dior.com. The company believes in direct selling and has a network of the
efficient workforce that is trained, capable and offer professional services.
Dior retail outlets are spacious with elegant ambience and comfortable atmosphere. Shelves
are decorated in fifty-six variants of grey colour. Outlets are at critical points to gain
maximum advantage and its windows are beautifully decorated. Brand believes in one-to-
one sales and each customer is treated as exclusive and is handled mostly via prior
appointments. It became the first luxury brand to sell via WeChat’s livestream.

Promotion:
Dior is all about trust and relationship. Brand rewards the loyalty of its regular customers by
sending latest news about its products through email or mail. It also offers invitations for pre-
sale to selected few who are exclusive and regular buyers. It does not market its products
through any traditional media such as Newspaper adverts or TV adverts. Instead it publishes
Ads only through specific channels such as Vogue magazine which caters to its target
segment. Its commercials emphasize on elegant and quality and are aired on both social and
electronic media. Christian Dior takes customer relationship management very seriously as it
is a luxury brand which enjoys loyalty from its customers. The brand has received visibility
through various celebrities using its products publicly. Further, it frequently uses various
celebrities for its fashion shows and campaigns running on its website. The Christian Dior
website offers information regarding the various products and their points of purchase. The
brand does not undertake any sales promotion activities.Overall, the communication of the
brand is done by various channels like advertising, public relations, personal selling, direct
marketing and social media channels like Instagram, Twitter, and others.
Competitive advantage in the Marketing strategy of Dior –
Renowned company: Dior is one of the trendsetter companies in the fashion industry which
has been carrying its legacy & heritage since inception.

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Strong Parent company: Dior is the brand of Christian Dior Group, which has several
brands in its brand portfolio such as LVMH, Christian Dior and several other brands in
the product categories such as Wines & Spirits, Fashion & leather goods, Perfumes &
cosmetics, Watch &jewellery and other accessories items.
Promotion through celebrities & fashion shows: Dior has been promoting its brand
through sponsoring exhibition shows, fashion shows and associating itself with various
celebrities such as Johnny Depp, Robert Pattinson, Rihanna, Natalie Portman and many
others.

BRAND POSITIONING BY DIOR

Brand positioning is a key concept in marketing. By positioning a brand,
marketers differentiate it from competitors in the consumer’s mind. The points of difference
that are emphasised can be based on objective attributes but they may be completely
imaginary. Positioning is crucial for brand identification, especially since it is well known
that consumers tend to choose brands with an image and values they can or want to identify
with. In other words, brands that resemble an ideal self.
The market for fragrances provides an excellent example of positioning strategies. As the
very choice of a perfume is related to self-expression, touching on issues of gender
representations and seduction, the positioning strategies in this sector are particularly
interesting to explore.
Dior basically uses its Emotional Selling Point to draw the customer towards it. The brand
attempts to make the consumers feel important and valued every time one steps into their
stores or selling areas. Dior’s relationship with its customers symbolises “the desire to shine
like gold”. This is clearly depicted in their short film- J’adore the Dior fragrance. The new
J’adore Campaign take us on a sensory journey, back to the basics, a rebirth. It has been
advertised as women feeling young again, which is probably the yearning desire of every
women.
In the 1990s, the American semiotician Laura Oswald conducted a study on thirty high-end
brands of perfume, including those from Calvin Klein, Chanel, Clarins, Clinique, Dior,
Elizabeth Arden, Estée Lauder, Lancôme, Ralph Lauren and Yves Saint Laurent. In her
analysis, she noted that the brand advertising strategies generally focused on different
representations of women, doing so by calling on female stereotypes that consumers were
likely to identify with. She observed two main types of positioning that corresponded to two
very different interpretations of femininity: the “goddess” and the “girl next door”. She also
found that these two types of positioning were related to specific visual codes.
Oswald’s study is still relevant in many respects. Notably, the brands J’adore, Poison, Miss
Dior and Addict all use different representations of women in their positioning strategies.
However, although the goddess image is still with us, Dior offers several interpretations of
the feminine in their print advertisements that were not described by Oswald.

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Miss Dior represents another image of femininity, more realistic but still fantasized. The
name immediately anchors the brand in the universe of youth. Miss calls up the image of a
young woman, whereas J’adore and Poison seem to address more adult women. The female
representation conveyed by Miss Dior is realistic in that it does not conjure up a mythological
creature like a goddess or devil. Yet, it doesn’t quite match the “girl next door” described by
Oswald either. Miss Dior is always depicted in opulent interiors and thus embodies a “well-
bred” girl of high social standing. Yet her youth and social status do not imply
chastity.(2017)
A perceptual map is a visual technique designed to show how the average
target market consumer understands the positioning of the competing products in the market.

(htt1)

Figure 32 Perceptual Map of Dior

Here it shows the Dior is a modern brand image rather than classic brand. We can easily
distinguish LV, Gucci or Chanel because their very typical classic image, which they think
these are their heritage. Dior is a young brand and this is her advantage.

DISCUSSION ON THE RELEVANCE OF BRAND HERITAGE FOR

LUXURY BRANDS
“Tradition is not something that can be simply inherited; those who want to take possession
of it must conquer it with great difficulty” stated the Nobel Prize winner Thomas Stearns
Eliot.

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Businesses are always looking for ways to set themselves apart. While unique products,
innovative services and other distinguishing factors play a role, branding is what typically
fosters a unique identity.
In the traditional sense, a heritage brand is a company that’s been around for decades --
perhaps centuries -- and finds a way to tap into this history in order to procure loyalty and
drive future sales.
And, at a time when people are constantly looking back and dreaming of the “good old
days,” heritage branding is enormously powerful -- and closely connected to the storytelling
that's such a frequent element in successful marketing.
Consumers are always on the lookout for brands they can trust. In the past, they’ve looked at
a company’s time line to determine whether or not a brand was trustworthy. When they found
a brand that had been around for generations, it was typically considered steady and reliable,
while a newer brand was viewed in a more sceptical light. In the last years, luxury has
experienced a multiplicity of transformations from different perspectives. The opening up of
the fast-growing economies to luxury has disrupted its essence and identity by bringing in a
stratification of the levels in luxury, an expansion of customers’ segments and a new mode of
operationalization for luxury brands: the digitalization of luxury. However, luxury brands
identity should still be characterized by their rarity, originality and exclusivity. Luxury
capitals and their urban ecosystem represent a significant space where luxury brands had and
still have anchored their essence, customer experience and all those values that represent their
identity. Luxury industries are threatened by a progressive loss of mystique, market analysts
say, as consumers search for something more than aesthetics and shallow status symbols
(Boston Consulting Group, 2010). Consequently, luxury brands should rely more consistently
on their heritage and history, in order to strengthen their appeal (Atsmon et al, 2012). In-store
experience is increasingly important in luxury markets (Atsmon et al, 2012) and the shopping
destination plays a key role. In fact, besides being an instrumental occasion for getting the
needed products, the shopping experience becomes an end valued for its own sake
(Rintamaki et al, 2007, p. 628). As a result of the changing context and new priorities, this
research will focus on the case study of one main French luxury brand – Christian Dior – and
will explore how the brand has capitalized on the local “brandscape” effect of Paris as a
luxury city to reinforce the brand heritage and keep its own identity in “turbulent times”. The
results of this study are preliminary ones at this stage but they already provide an overview of
how the brand has capitalized on the brandscape orientation.
A brand is often represented by s a set of functional attributes and symbolic values, branding
being the process of associating the attributes with the product in order to add value to it
(Hakala et al., 2011).According to Kapferer (2004), a brand’s success is based on its saliency,
differentiability and intensity, and on the trust attached to the associations. In addition to
these, Davis (2000) underlines the role and accumulation of experiences in brand recognition.
Brand preference ultimately depends on what the brand means to the customer and on the
impact of its emotional effect, in other words on its place in the heart (Ballantyne et al.,
2006). Related to the same idea, brand attachment is characterized by a strong linkage or
connectedness between the brand and the self (Kleine and Kleine, 1993). In this context,
brand heritage is one of the associations that marketers can use to differentiate their brands

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from those of their competitors, ultimately helping them to create a unique image for the
offering (Keller and Lehmann, 2006).
The concept of heritage is different from history (Urde et al.2007) and retro (Wiedmann et al.
2011). Heritage corresponds to different meaning. On the corporate perspective, heritage is
defined as “all the traits and aspects of an organization that link its past, present, and future in
a meaningful and relevant way” (Burghausen and Balmer 2014b, p. 394). This link between
the different time strata, called omni-temporality, is a 3 cornerstone of corporate heritage
(Balmer 2011). Finally, Banerjee (2008, p. 314) describes the four pillars of the heritage of a
brand as its history, image, expectancy and equity. History represents its rich and eventful
past, the image "an after effect of the brand communication and positioning based on the
perceived benefits by consumers”. Brand expectancy refers to the physical and emotional
benefits that consumers receive from the brand. Finally, equity comprises two subsets: a
homogeneous and heterogeneous set of competencies that facilitate progression and give
advantages over the competition. With the exception of its history, the elements of the brand's
heritage in Banerjee’s description (2008) are difficult to measure. (Lagier, 2018)

APPLICATION OF PERSUASION THEORIES IN REINFORCING THE IMPACT OF

BRAND HERITAGE
Some theories of persuasion in the literature may help explain brand heritage and its effects
on consumer attitudes. Krugman’s (1965) Low Involvement Model theory demonstrated
that for individuals with low involvement (i.e. a low level of personal relevance between the
individual and the issue at hand), the brand becomes more important to the consumer over
time through repetition such as consistent advertising (Krugman 1965). A change in attitude
through repetition can lead to a change in purchase attitudes and behavior (Krugman 1965).
Krugman’s model may apply to the relationship between brand heritage and purchase-related
attitudes. According to Urde (2007), a brand’s heritage is partially based on its longevity. If a
brand has longevity, then over time, the brand name is repeated to consumers more often than
brands without longevity. For low-involvement individuals, a brand's longevity may
significantly affect their attitudes toward that brand, because they are exposed to the brand
over and over. Krugman's model (1965) would suggest that through repeated exposure, low-
involvement consumers see heritage brands with longevity more favourably over time. It is
important to note that Krugman’s (1965) definition of a low-involvement individual is
different from the definition of a “low-involvement product” or category, a concept that is
also referenced in this study. Day (1970) defines product involvement as, “the general level
of interest in the object, or the centrality of the object to the person’s ego-structure” (p. 45).
Furthermore, Martin (1998) writes that involvement is, “the degree of psychological
identification and affective, emotional ties the consumer has with a stimulus or stimuli – here,
the stimuli being the product category or specific brand”. For the purpose of this study, a
high-involvement product is a product with which the consumer identifies, and has great 18
emotional ties. Conversely, a low-involvement product is one with which the consumer does
not greatly identify and does not have strong emotional ties.
The Heuristic-Systematic model (Chaiken, Fee Iii, & John, 1980) is also important when
discussing the concept of brand heritage, and can be used to help researchers understand how
brand heritage can affect consumer attitudes. The Heuristic-Systematic model states that

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individuals use heuristic and systematic styles to process messages (Chaiken, 1980). When an
individual has high involvement, he or she will process messages systematically (i.e. detailed
processing of messaging content) (Chaiken, 1980). When an individual has low involvement,
he or she will base their opinions on their reactions of non-content cues (Chaiken, 1980).
These content cues are also known as “cognitive heuristics" (Chaiken, 1980). After the initial
publication of the heuristic-systematic model, Maheswaran, Mackie, & Chaiken (1992)
revisited the model and explored how brand names fit within the model. They tested this by
asking subjects to read descriptions of new products that talked about important and
unimportant attributes, and they varied the brand names on these descriptions by featuring
some favourable brand names and some unfavourable brand names (Maheswaran et al.,
1992). The study found that low task individuals were only influenced by the brand name
they were exposed to (Maheswaran et al., 1992). When high task individuals were presented
with high importance attributes and unfavourable brand names, they were only influenced by
the attributes and not the unfavourable brand names (Maheswaran et al., 1992). When high
task individuals were presented with high importance attributes and favourable brand names,
their attitudes were impacted by both the attributes and the favourable brand names
(Maheswaran et al, 1992). The studies on the heuristic-systematic model shed some light on
the reasons why brand heritage may be a tool for brands to leverage in order to influence
consumers’ attitudes. If consumers have low involvement, they may use the brand’s heritage
as a heuristic cue, and their attitudes and resulting purchase behaviour may be influenced by
this cue. The studies also suggest highinvolvement individuals take brand name into account
when the brand name is favorable andpaired with favorable attributes.
Zajonc’s Mere Exposure theory also can help inform how brand heritage can shape
consumer attitudes (1968). Mere Exposure theory states that messages are easier to process
and encode when they have been seen before (Zajonc, 1968). This means that consumers can
grow to have favorable attitudes toward a product after seeing the message repeatedly, with
no prior exposure to the brand (Zajonc, 1968). When applied to brand heritage, Mere
Exposure theory helps explain why it influences consumers’ attitudes. Brands with heritage
have longevity, a track record, and history that is important to the brand’s identity (Urde,
2007). Brands with heritage have been around for a number of years, and consumers have
been more exposed to the brand name over time. The application of Mere Exposure theory
means that brand heritage may influence consumer attitudes in a positive way because it is
easier for consumers to process and encode when they have been exposed to the brand before.
They may have more favourable attitudes toward the brand because they have seen it and
been exposed to it repeatedly over time.

BRAND HERITAGE ELEMENTS

One of the most prominently cited conceptualizations of brand heritage was developed by
Mats Urde (2007). Urde (2007) writes that while all brands have history, only some have a
true heritage. Through his research on heritage brands, Urde (2007) found five characteristics
that he believes make up a brand’s “heritage quotient” (Urde, 2007). The five elements of
heritage are track record, longevity, core values, use of symbols, and the idea that history is
important to the brand (Urde, 2007). According to Urde (2007), the first element of brand
heritage, track record, is “proof over time that the company has lived up to its values and
promises (p. 9). Heritage brands accumulate credibility and trust over time through their
positive track record (Urde 2007). An example of a brand with a track record is Volvo (Urde,

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2007). Over time, the Volvo brand has become synonymous with safety (Urde, 2007). Volvo
has established credibility with consumers over many years by consistently proving that its
products are safe (Urde, 2007). Volvo's track record of providing safe cars has given the
brand credibility, ultimately establishing it as a heritage brand (Urde, 2007).
Urde’s second element of brand heritage, longevity, is defined as a “consistent demonstration
of other heritage elements (especially track record and the use of history) under many CEOs,
such that one can believe they are ingrained in the organization’s culture” (2007, p. 10).
Examples of companies with longevity include S C Johnson and Anheuser Busch (Urde,
2007). These family-led companies have been passed down from generation to generation
and throughout transfers of leadership, the brands have remained consistent with their
heritage stories through the use of symbols and values (Urde, 2007).
The third element of brand heritage is “core values” (Urde, 2007). Core values are long held
by the brand and form the base for the positioning expressed as a promise or covenant"
through external and internal communications (Urde, 2007). A brand's core values guide
behavior and actions in everyday decision making (Urde, 2007). An example of a brand with
long-held core values is the telecommunications company, LM Ericsson (Urde, 2007). LM
Ericsson has upheld three core values – professionalism, respect, and perseverance -- for over
129 years (Urde, 2007). These values serve as guideposts for the brand, eventually becoming
part of the brand's identity, and ultimately the brand's heritage (Urde, 2007).
Use of symbols is Urde’s fourth element of brand heritage (2007). He believes brands that
use symbols and design elements meaningfully in communication often have a high brand
heritage quotient (Urde, 2007). Sometimes these symbols can even achieve an identity of
their own, because they stand for the brand in the eyes of consumers (Urde 2007). Examples
of these types of symbols include the five Olympic rings, the Mercedes star, the blue Tiffany
color, and the Burberry plaid pattern (Urde 2007).
Lastly, brands with heritage place value on the brand's history and ensure it is instilled in
the brand (Urde, 2007). History influences the brand's operations and the choices it makes for
the future (Urde, 2007). It is important to note that Urde does not believe heritage brands
should remain stuck in their past (Urde, 2007). Instead, he writes that a brand should remain
adaptable while keeping the brand’s history in mind, in order to maintain relevance over time
(Urde, 2007).

GLIMPSES OF BRAND HERITAGE OF DIOR

Christian Dior French New Look appeared in 1947 during the first Christian Dior couture
fashion show in Paris. At the time, the Paris couture trade was in a precarious state. What it
needed was excitement, and Christian Dior delivered it in a collection of luxurious clothes
with soft shoulders, waspy waists and full-flowing skirts intended for what he called flower
women.‘It’s quite a revelation, dear Christian Dior’ pronounced Carmel Snow, the editor of
US magazine Harper’s Bazaar. ‘Your dresses have such a New Look.’ And here it was: the
New Look dresses were born. Dior brand is specifically embedded on the name of the
founder, fashion designer of the brand, very inspired by the atmosphere and history of Paris:
“ The air of Paris is really the air of couture” (Dior, 2011). The logo itself reminds the
founder of the brand. Its simplicity and elegance reinforce the brand identification for
consumers; in the logo, it is possible to find the sophistication and elegance representative of

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the personality of its creator. The company has made efforts to keep the same values
promoted by its original founder Christian Dior. Indeed, Dior was primarily a female brand.
Dior’s company is also synonymous of dreams. The designer always wanted to reach the
excellence in every pieces he created and it’s on the same motto that the company has
reached the success known today. Though earlier Dior focused only on women, it diversified
into products for men under the brand of Dior Homme, and for children under the brand of
Baby Dior as well as other products lines such as perfumes and cosmetics with the same
aspect of perfectionism.
Christian Dior French New Look appeared in 1947 during the first Christian Dior couture
fashion show in Paris. At the time, the Paris couture trade was in a precarious state. What it
needed was excitement, and Christian Dior delivered it in a collection of luxurious clothes
with soft shoulders, waspy waists and full-flowing skirts intended for what he called flower
women. ‘It’s quite a revelation, dear Christian Dior’ pronounced Carmel Snow, the editor of
US magazine Harper’s Bazaar. ‘Your dresses have such a New Look.’ And here it was: the
New Look dresses were born. Dior brand is specifically embedded on the name of the
founder, fashion designer of the brand, very inspired by the atmosphere and history of Paris :
“ The air of Paris is really the air of couture” (Dior, 2011). The logo itself reminds the
founder of the brand. Its simplicity and elegance reinforce the brand identification for
consumers; in the logo, it is possible to find the sophistication and elegance representative of
the personality of its creator. The company has made efforts to keep the same values
promoted by its original founder Christian Dior. Indeed, Dior was primarily a female brand.
Dior’s company is also synonymous of dreams. The designer always wanted to reach the
excellence in every pieces he created and it’s on the same motto that the company has
reached the success known today. Though earlier Dior focused only on women, it diversified
into products for men under the brand of Dior Homme, and for children under the brand of
Baby Dior as well as other products lines such as parfumes and cosmetics with the same
aspect of perfectionism. Preliminary results and conclusion In order to evaluate Christian
Dior relationship with the urban environment -Paris-, a first collection of on line data has
shown the following. Christian Dior bought his first couture house in Paris in 1946 after
working for Robert Pigue and Lucien Lelong. His first house, 30 avenue Montaigne, was the
place where the Dior Label would flourish. Considered as one of the greatest couturiers of
this century, Christian Dior never ceased to develop his image and fame around the "great
Parisian chic", anchored in the mythical and symbolic history of the famous "light city". His
latest exhibition at the “Musée des Arts Décoratifs” celebrating the 70th anniversary of
Maison Dior, says a lot about this position. The brand strategy has always been in fact, to
bring beauty by respecting the tradition and heritage of the company. In this environment,
Dior shows the implementation of a very specific brand communication policy. As in the
following examples, the ad is always really elegant and sophisticated with quite often the
appearance of a famous person being the “muse” of the brand. And the story always takes
place in Paris and is illustrated by short anecdotes in the heart of the capital, next to its most
famous monuments such as the Eiffel Tower. The logo is also present in a simple way,
reflecting the strength of the brand with a clear recognition and association with French
luxury and high quality products. If these ways of communicating remain more classical,
where the consumer can easily rely on the values of the brand with a “dream” touch, the real
power of Dior’s brand is the way it communicates on the brand itself and its history. The

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continuation of our research will consist in deepening these preliminary results by analyzing
supplementary data coming from public sources and interviews led with Dior's brand.

VISUAL SYMBOLS FOR COMMUNICATING BRAND HERITAGE OF

DIOR
All informants spontaneously evoked the importance of heritage in the luxury industry and all
talked about the brands' historic stores, which we call heritage stores. They explained that
these locations have a specific aura: “The store on Avenue Montaigne is really an integral
part of the Dior myth because Christian Dior was there. The first fashion shows were there;
everything came from there. You can see the entire collection there, even the most
extravagant pieces. It's a mythical place… It is as if you were at M. Dior's tomb. So these
stores keep the traces of something that has gone, but more than that they embody the brand,
since you see the full commercial range there. So I think these shops have a super special
status… for sure.” (Claude, marketing) Claude describes Dior's heritage store as a mythical
location. She stresses the legendary dimension of the place and the way it embeds the history
and the identity of the brand. The historic dimension of the store creates a special aura.
Similarly, many brands present their heritage store as a legendary or a mythic location (online
observations). In Paris, many heritage stores combine history and savoir-faire which are part
of the brand heritage because most are linked to haute-couture or haute-joaillerie (high-
jewellery) workshops. This proximity with the workshops reinforces the aura of heritage
stores. For instance, the Chanel store on Rue Cambon is located above the haute-couture
workshops directed by Karl Lagerfeld and Coco Chanel's apartment, so it is at the heart of
both the history and the know-how of the brand. This close relationship is symbolized in
many different ways in the store. At one end, an imposing staircase allows access to the
haute-couture workshops and Coco Chanel's apartment where she used to sit to observe what
was going on in the store. This emblematic staircase is used in many commercials and videos.
Coco Chanel's portrait hangs at the end of the hall (field notes). Thus, heritage stores in Paris
have a double dimension that situates them at the heart of the history and identity of the
brand. The aura of heritage stores is so strong that informants qualify them as legendary,
mythic, and even sacred. For instance, describing Louboutin's heritage store, a Vogue
journalist talked about the “Holy of Holies” of the brand [“le coeur du sacré de la marque”].
This architectural feature of Dior's first store became an iconic feature of the whole brand.
The color is used in Dior's other outlets, its commercials, and its products. Dior gray is so
emblematic that it has become a specific color on many commercial paint palettes. People
talk about Dior gray in the same way as they talk about Klein blue, a reference to the painter's
famous monochrome canvases. brands stage their heritage stores to reinforce their aura and
therefore their heritage. They identify key iconic features of their heritage store that they
diffuse in their collections, communications and other outlets.
Brands diffuse key features of their heritage store in their collections, communications, and
other outlets. For instance, the Dior gray, that dominates the store on Avenue Montaigne was
created by Christian Dior and has become the brand's iconic color.
The logo of the company Dior is the name of the founder and fashion designer of the brand
Christian Dior. The Dior logo represents a simple word mark with the brand name and using
a Nicolas Cochin font. Despite the fact that the company is world-renowned in the luxury

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industry, the logo remains simple and straight-forward, reinforcing its ease of identification
and being easily recognizable for consumers.
The Dior logo is associated with notions as luxury, glamour, prestige, sophistication and
originality. It is also representative of the personality of its creator as many brands of luxury.
Regarding colors of Dior logo, the use of black and white color in it transmits a natural
feeling of warmth, reinforcing the power of the overall design and the classy impression it
gives.

SIGNIFICANCE OF DESIGN PHILOSOPHY IN BRAND HERITAGE

OF DIOR
Raf Simons works along with a modernist line. In describing the design philosophy and
approach for Dior, he uses the rhetorical figure of the oxymoron evoking a “radical quiet
approach”, an “opulent austerity”, a “kind of Romeo Gigli on acid.” His creative process
starts with a vision and several images. He works as a visual curator creating thick folders
with images that the creative team develop into a coherent story. That is, chez Dior, he
infuses his own vision and values to modernize the codes and the archetypes through several
formal, procedural and technical innovations. The design philosophy involves a redesign of
proportions, a redistribution of volumes, and a lightning and redefinition of the silhouette.
Palettes of bold color, as fuchsia and orange, cobalt blue, and grass green, for example, to
emphasize the new shapes and lines. Sometimes a flurry of color and embellishment comes in
unexpected combinations, sometimes as mixing clashing hues, sometimes as a strong bold
shape, as with an astrakhan coat coming in bubblegum pink (Fall 2014 Ready-to-Wear
Collection). Procedural and technical innovation comes together with innovative fabrics and
materials as with the traditional technique called ‘imprimé chaîne’ (warp printing) utilized to
re-create the work of Californian contemporary artist Sterling Ruby into a strapless cocktail
dress, meticulously reproducing the artist’s spray-painted imagery (Fall 2012 Haute Couture
Collection). Formal, procedural and technical innovations nourish the imaginary of the
House, the hallmarks of the brand remain in place with continuous references to codes and
archetypes, but the perspective is completely different, linked to a modernist attitude. Simons
does not break the rules. He simply makes his own.

BRAND HISTORY AS AN INTEGRAL PART OF HERITAGE OF DIOR

Dior, a brand rooted in history and just as luxurious as it sounds. An internationally renowned
brand since 1946, the French fashion house acclaimed for its elegance and timeless
femininity. A leading company that has remained at the top of fashion's hierarchy for over 70
years, Dior's unique look has influenced the world of fashion since the beginning. Innovative
but traditional, Dior maintains its reputation as creator of recognized haute couture. From
their ready-to-wear fashion, leather goods, accessories, or footwear, Dior changed the game
forever. To this day, the brand is all around us in some way, shape, or form - even if we don't
know it.
The "New Look" became a trademark. Introducing unique silhouettes consisting of shorter,
fuller skirts, tighter waists, and accentuated busts - Dior's pieces were revolutionary,
especially in the 40s. "I wanted my dresses to be 'constructed', moulded on the curves of the
female body whose contours they would stylish. I accentuated the waist, the volume of the

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hips, and I emphasized the bust. In order to give my designs more hold, I had nearly all the
fabrics lined with percale of taffeta, renewing a tradition that had long been abandoned," said
Christian Dior.
The brand continued to flourish. By the mid 1950s the house of Dior was a highly respected
fashion empire. Dior dressed countless celebrities including Marlene Dietrich, Ava Gardner
and members of the royal family.
Saint Laurent kept Christian Dior's legacy alive by using the same fabrics, keeping the
proportions and silhouettes relatively similar. However, Saint Laurent's collections featured
pieces that were softer, lighter and easier to wear.
Following the departure of Yves Saint Laurent, Marc Bohan was appointed creative head in
the late 1960s. Instilling a more conservative style, he was credited as the man who kept the
Dior label "at the forefront of fashion while still producing wearable, elegant clothes" and
Women's Wear Daily claimed that Bohan "rescued the firm." In 1967, Bohan's assistant
Philippe Guibourgé launched the brand's first French ready-to-wear collection called "Miss
Dior."
In 1989, Italian-born Gianfranco Ferré replaced Bohan as head designer. As the first non-
French designer to take the creative reigns at Dior, Ferré left behind the traditional Dior
aesthetic. With a reputation for feminine, romantic silhouettes, Ferré introduced a new style
concept described as "refined, sober and strict." As head of Haute Couture, Haute Fourrure,
Women's Ready-To-Wear, Ready-To-Wear Furs and Women's Accessories collections, Ferré
was awarded the Dé d'Or.
Described as "iconic" and "legendary", Dior launched the bag in a larger series and changed
the name to the "Lady Dior" in 1996 with Princess Diana's blessing. Two hundred thousand
models were sold in two years, thus Dior's leather goods turnover massively increased.
Each Lady Dior is crafted by hand. Commencing with manual cutting out of the leathers, the
pieces are then assembled and moulded around a wooden form, finally it is meticulously
sewn together. In total, there are 140 distinct pieces that are necessary in the process of
creating a Lady Dior, hence the luxurious quality.
Dior appointed John Galliano as creative director in 1997, replacing Gianfranco Ferré. The
choice of British designer sparked some controversy as once again, a non-Frenchman held the
creative reigns. However, Galliano was compared to Christian Dior himself by Dior's
chairman Bernard Arnault, noting that "Galliano has a creative talent very close to that of
Christian Dior. He has the same extraordinary mixture of romanticism, feminism and
modernity that symbolized Monsieur Dior. In all of his creations - his suits, his dresses - one
finds similarities to the Dior style.
Slimane was the breath of fresh air Dior so desperately needed. His work "made more
referenced to Mr. Dior than to the house of Dior" with pieces inspired by Dior's post World
War II designs.
Dior stands for femininity but the idea of that is still steeped in the Fifties, femininity isn't
something that finished in the Fifties; it can be more contemporary as per Maria Grazia
Chiuri.

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Dior continues to produce beautiful, timeless pieces that remain innovative and original.
Truly a brand with a fascinating backstory, Dior remains one of the most prominent and
important fashion houses of our time. (2017)

CORE VALUES OF DIOR

The company has made efforts to keep the same values promoted by its original founder
Christian Dior. Indeed, Dior was primarily a female brand. After the World War 2, the
designer wanted to “liberate” women from the horror of the war but also giving joy and
lightness by creating elegant clothes with new design.
Dior’s company is also synonymous of dreams. The designer always wanted to reach the
excellence in every pieces he created and it’s on the same motto that the company has
reached the success known today. Know-how, respect of the client, and the willing to bring
beauty for every woman are also values that define the company. Employees still carry these
values in their works, by respecting the tradition and heritage of the company.
Though earlier Dior focused only on women, it diversified into products for men under the
brand of Dior Homme, and for children under the brand of Baby Dior with the same aspect of
perfectionism.
Even if creation directors have changed through the time, each one has contributed to the
reputation of the company Dior that is one of the strongest brands in the luxury sector.

EXCLUSIVE EXHIBITION FOR SHOWCASING BRAND HERITAGE

OF DIOR

Figure 33 Image from Exhibition

The V&A opens the largest and most comprehensive exhibition ever staged in the UK on
the House of Dior – the museum’s biggest fashion exhibition since Alexander McQueen:
Savage Beauty in 2015. From 1947 to the present day, Christian Dior: Designer of Dreams
traces the history and impact of one of the 20thcentury’s most influential couturiers, and the

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six artistic directors who have succeeded him, to explore the enduring influence of the
fashion house.
Dior admired the grandeur of the great houses and gardens of Britain, as well as British-
designed ocean liners, including the Queen Mary. He also had a preference for Savile Row
suits. His first UK fashion show took place at London’s Savoy Hotel, and in 1952 he
established Christian Dior London.
Drawn from the extensive Dior Archives, the exhibition presents over 500 objects, with
over 200 rare Haute Couture garments shown alongside accessories, fashion photography,
film, vintage perfume, original make-up, illustrations, magazines, and Christian Dior’s
personal possessions. It also showcases highlights from the V&A’s world-class Couture
collections, including the iconic Bar Suit, gifted to the museum by the House of Dior in 1960
with the help of Cecil Beaton. The exhibition highlights Christian Dior’s total design vision,
encompassing garments, accessories and fragrances. Flowers are emblematic of the Couture
House and have inspired silhouettes, embroidery and prints, but also the launch
of Miss Dior in 1947, the first fragrance created alongside the very first show.
From horticulture to global travel and historicism, the show reveals
the sources of inspiration that defined the House of Dior’s aesthetic. From the daring designs
of Yves Saint Laurent to the rational style of Marc Bohan, the flamboyance of Gianfranco
Ferré, the exuberance of John Galliano, the minimalism of Raf Simons, and Maria Grazia
Chiuri’s feminist vision of fashion, the exhibition shows how each successive artistic director
has stayed true to Dior’s vision of Haute Couture, while bringing their
own creative sensibilities to the House.

Figure 34 Dior's Collection at the Exhibition

Oriole Cullen, Fashion and Textiles Curator at the V&A, said: “In 1947, Christian Dior
changed the face of fashion with his New Look, which redefined the female silhouette and
reinvigorated the post-War Parisian fashion industry. The V&A recognised Dior’s important
contribution to design history early-on in his career, acquiring his sketches and garments

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from the 1950s onwards. The influence of Christian Dior’s design was all-pervasive and
helped to define an era. In their own individual ways, each of the House’s successive artistic
directors have referenced and reinterpreted Dior’s own designs and continued the legacy of
the founder, ensuring that the House of Christian Dior is at the forefront of fashion today.
More than seventy years after its founding, the V&A’s exhibition celebrates the enduring
influence of the House of Dior and reveals new research about Dior’s relationship with
Britain”.
An exhibition removes the context of social class and instead displays the more benign image
of craftsman and designer. “It is a way of speaking about the savoir-faire, the creator, the
house and its history,” explains Sydney Toledano, CEO of Christian Dior (Bertrand on
Brand, 2016).
The heritage aspect is a crucial part of a luxury brand as it has to appear both perfectly
modern to the society of the day and at the same time laden with history. Heritage adds the
association of depth, authenticity and credibility to the brand’s perceived value and can result
in an intensified brand loyalty and the willingness to accept higher prices.

EXISTING BRAND EXTENSION MODEL FOLLOWED BY DIOR

The Brand Extension model traditionally followed by Dior is the Pyramid Model wherein the
model enables the brand to enhance its growth in a well defined manner. Its base basically
helps the brand to feed its overall cashflow through licensing, extensions, and a less elective
distribution system. At the same time, it also depicts the constant regeneration of value at the
tip. At this point, Creativity, Signature and Creator, supplying the brand with its artistic
inventiveness. Dior believes in the ideology-“One does not invite a thousand guests to watch
a procession of dresses which could be seen on a coat hanger or in a show room’’.
The creativity of the signature label, at the tip of the pyramid, is at the heart of the business
model. John Galliano also mentioned about the fact- Dior was at the centre of world artistic
creation for women.

LIMITATIONS OF THE EXISTING FRAMEWORK

The major limitation of this model lies in the fact that the more accessible secondary lines are
entrusted to other designers. The farther the brand moves away from the tip of the pyramid,
the less creativity is evident in the model. There is a higher possibility of diluting the core
ideology of creativity by the concerned brand since the brand may exhibit very less creativity
by following this model which may make it vulnerable towards dilution of the Brand Image.

BRAND EXTENSION
Many luxury brands maintain their reputation through brand extension. A brand extension is
the use of an established brand name to introduce a new product or service from a different
category. Luxury brands use this strategy, along with diffussion brands, in order to reach a
larger audience that hasn`t been exposed to them. Retailers such as Christian Dior, Chanel,
Givenchy, Louis Vuitton, Gucci, Burberry or Marc Jacobs have stretched their lines from
couture to cosmetics, fragrances, accessories or in some cases,home design (Versace, Fendi,
Hermes, Ralph Lauren, Armani). The main benefit relies on transffering
consumers`perceptions regarding a certain brand to the accesible products released under the

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umbrella brand name. Since these product categories are less expensive than apparel and
handbags, more consumers are likely to buy them so that they still feel like they are part of
the brand experience. Experts believe that this strategy is advantageous for luxury brands,
since the likelihood of buying cosmetics, perfumes or sunglasses that are luxury-branded is
high (consumers are more willing to pay a premium price for these items to get a chance to
experience the brand) These options will enable companies to create a larger customer-base,
increase brand awareness and maintain loyal customers in unfavourable economic
developments. (Alexandra, 2018)
Brand extensions, the extension of a brand’s name to new product categories or classes
(Keller & Aaker, 1992), are among a company’s most highly utilized options for growing
their brand. This strategy is highly utilized because the company is able to capitalize on their
most valuable asset (Keller, 1993), the value of their brand name (Farquhar, 1989; Keller,
1993; Tauber, 1988). Differing from other types of company growth strategies, brand
extensions are characterized by the repeated use of their brand name when introducing new
product categories or product classes.
Companies use their brand name to launch new products because it possesses significant
value, and in some cases, the value of the brand name can make up a large portion of the
company’s assets. For example, the brand name Apple is valued at over $98 Million
(Shankland, 2013), constituting nearly 10% of their total company value (Svensson, 2012).
When a brand chooses to extend horizontally, the brand is attempting to offer consumers
more variation in their current offering by introducing a new product class or a new product
category not currently offered by the brand but at the same price and quality level as their
existing brand (Kim et al., 2001)
On the other hand, if a company chooses to extend their brand vertically, they can either
extend their brand upward to target a more affluent market by offering their product with
greater quality and exclusivity (Kim et al., 2001), or they may extend their brand downward
and target more price conscious consumers (Kim et al., 2001).
In both vertical upward and vertical downward brand extensions, it involves the introduction
of a branded product in the same product category, but at a different price point and quality
level than the parent brand (Sullivan, 1990; Keller & Aaker, 1992).
In the apparel industry, apparel brands oftentimes offer limited edition products to appeal to a
market audience and allow greater accessibility of the brand in terms of cost and distribution.
For example, high-end designer Roberto Cavalli recently offered a limited edition extension
at the mass retailer H&M.
Consumers may perceive and assess the fit between brand and retailer and brand and 8 price,
and that it is likely that consumers include these factors when evaluating the extension brand.
Brand Extension Perceived Fit occurs when “the consumer accepts the new product as logical
and would expect it from the brand” (Tauber, 1988, p. 36). This means that fit describes the
congruence, consistently, relatedness, similarity, or typicality between the parent brand and
the extension brand (Aaker & Keller, 1990)Perceived fit is considered highly important in
extension brands because it is suggested to be the most important driver of extension brand
success.(CHILDS, 2014)

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The purpose of this paper is to see what luxury brands gain from a limited-edition
collaboration in terms of segment, positioning and target group and based on the identity
prism, see what characteristics that are transferred from and to the brands in the collaboration.
Co-branding can be employed by marketers in an attempt to adopt the existing positive
brand-associations of two brands into a new co-brand, also called a composite brand. Co-
branding is a path towards creating a strategy that both brands gain from, regardless of the
perceived brand equity of the consumers; being high or low.
In co-branding strategy, the valuable brand assets are allowed to be combined and leveraged
in forming a strategic alliance together with another brand and its name.
Continual growth is according to Kapferer (2012) additionally something that can be
achieved from co-branding. Instead of acquiring new competencies and the ability to
innovate through mergers and acquisitions, companies can find a partner with whom they can
co-create (Kapferer, 2012).
Co-branding has become increasingly popular as a strategy within the luxury industry and is
not only growth related (Oeppen, Jamal, 2014)
Customers preference for scarce items can result from an increased perceived exclusiveness
of the product, transmitted to the brand (Shin et al., 2017). According to previous theory with
regards to scarcity, consumers seeks a product more intensively when it is hard to reach or
obtain (Shin et al., 2017). By launching a limited-edition product, the luxury brand in
question can signal the high quality as well as value to the relevant consumers. As a result,
from the scarcity of a limited-edition product, consumers can use it to signal their uniqueness
and status by possessing the limited edition product from the brand (Shin et al., 2017).
Scarcity to a product can be used as an important tool for marketing, which can enhance the
preference for a brand from the consumers through the product. This can ultimately generate
an improved brand evaluation and intention of purchase by creating a sense of urgency
amongst the consumers.
From a brand management perspective, limited edition is created on purpose to limit the
supply of products to create the illusion of increased and maintained exclusivity while
increasing profit.
It has been seen that through the different collaborations, the brands gain some of the other
brands' characteristics in their own brand, more or less, which is dependent on the nature of
collaboration.
According to Kapferer and Bastien (2012), it is important for luxury brands to communicate
beyond its target group to create brand awareness and a sense of prestigiousness since it is
considered a loss in value if someone fails to recognize the brand. Therefore, the main aim of
the collaboration was perhaps not to generate new customers long term but to create a buzz
and increase brand awareness as Kapferer (2012) states as one of the reasons for co-branding.
(Alice Fregne, 2018)
Product line Extension Possibility No 1-
Dior is one of luxury brand which kept on tempting consumer’s eye with its wide range of
offerings. This luxury brand covers is hero in whichever category they are dealing in with
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complete product line that his customer don’t need to go some other place to buy
complementary products of Dior For example Dior is offering apparel with accessories with
footwear, bags and what not. These all products complete and complement each other. But
there is an essential part of it is missing into it that is hair accessories like hair bands, tiara
etc.

Figure 35: Reference for Hair Accessory

Product line Extension Possibility No - 2

Dior has very limited product range in home décor as compared to its other category of
product line. From a brand like Dior it is expected to cover all the section in a category. So
Dior can come up with home décor products. It may be a carpet collection of contemporary
style.

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 Figure 36: Product line in home decor category of Dior

Brand extension is a very tempting growth strategy. Leveraging a brand name consumer is
already familiar with lends instant credibility to the new product. Christian Dior followed a
strategy of extending its product lines which was more of a vertical strategy or a pyramid
model. While the brand extensions attract attention and make the brands more accessible and
familiar among new segments of consumers, at the same time they may weaken the status of
the Dior among its existing clientele and so dilute the luxury brand. And as Dior emphasize
their long-term value, once the image of the luxury brand is diluted, it has to take a very
difficult and long way to gain its luxury status back in the eyes of consumers. Dior has over-
extended its product portfolio which might result in its image dilution.
Some of thebrand extension possibilities can be as follow:
Possibility 1: Collaboration with a famous and widely accepted non-luxury brand
Dior can collaborate with high end non-luxury brands like Zara or GAP by keeping the
luxury criteria intact and brand elements and heritage in place. Dior can introduce a capsule
collection with the brand for trial runs and see the response of consumers and the market to
the newly introduced products.
Such collaborations will give Dior more visibility and sales across the globe but at the same
time we can’t ignore the fact of luxury brand image being diluted by means of such
collaboration activities.
Possibility 2: Galaxy model approach
Rather than adopting its conventional downward extension, Dior can opt to go for horizontal
extension of the brand which is called galaxy model. This approach saves the image of the
brand by not diluting it with introduction of less creative products into the market. In this
approach brand can try to release new extension products around the main line of products
i.e. fashion and apparel. The lines introduced will be no lesser and brand need not to descend
into the premium market. The introduced product will be all stars and equal as the core
highlight product. The sub-brands will not be less by price.

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Prior to considering the brand extension via product line we need to understand the impact of
Dior’s brand equity on its extension success. Brand equity of Dior will be helpful to reduce
potential risk. It is investigated as an antecedent of evaluation in luxury brand extension.
From the figure it is clear, that brand value or equity of Dior in increasing year by year since
2017. It means consumers perceive the brand as trustable and perceived quality, brand
association and brand loyalty are high for Dior. This will reduce the perceived risk of the
extension and at the same time the extension will be less expensive in terms of marketing.

Figure 37: Brand value of Dior worldwide ( Source: Statistics)

Product line extension type 1: Dior Q

Dior extended cross-gender in 1970 by launching its first men ready-to-wear. But over the
years Dior never tried to extend its offerings to other niche sections of the society i.e. LGBT
people. With time the buying power of LGBTQ+ community is increasing. As per the Forbes
article it was estimated to be more than $1 trillion. In addition, as Millennials move into their
prime earning years and Centennials start entering the workforce, the $917 billion purchasing
power of the LGBTQ+ community will mushroom. And the consumers in this target group
are well tempted to buy luxury fashion. With the rise of the gay rights movement, pink
money has gone from being a fringe or marginalized market to a thriving industry in many
parts of the Western world such as the United States and United Kingdom. Dior can work
upon harnessing this immense disposable power of the consumer by introducing a fashion
product line that is in sync with their tradition and heritage and at the same time opens door
for new consumers who are fashion savvy and have a quest to buy luxury.
Dior Q can be the new product group that by means of their designs and luxury styles can
dissect, manipulate, and transform a very socially antiquated idea of what it means to be a

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male in the 21st century. Queerness is already starting to break its way into high-fashion and
luxury brands like Dior who have a history of innovation and inclusivity can easily tap the
mind of LGBTQ+ consumer base without compromising with the price and creativity in
apparel sector as the people are more accepting for Avant Garde styles and have a strong
understanding of luxury. Some of the design examples can be as shown in

Figure 38: Design ideas for Dior Q

Figure 39: Suggestion for Dior Q

There are two fundamental questions that have to be answered before proceeding with a
potential
brand stretching:
--‐ Is the new category compatible with the essence of the brand?
--‐ If the new category is compatible with the essence of the brand, the management team can
impress the brand upon it. That is, can the company differentiate itself strongly and creatively
in the manner of its brand?
Steps to launch Dior Q:

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Launching a new product is mo small undertaking. The launch has to be strategically planned
and exceuted. Dior Q can be launched using following steps:
Step 1: Target the right market
The LGBTQ+ being the key target consumers of Dior Q is the right market segment that will
help Dior extending its products to a new consumer base which in turn will give Dior more
visibility and sales. The $3 trillion market from LGBTQ+ can have a huge potential to be
exploited by Dior. It should research on its sources of legitimacy (trade,materials, history,
culture, lifestyle) and resources.
Step 2: Pick the right team
Choosing the right development team will be critical in launching Dior Q. As the designs and
garments will be for a niche segment, it has to be carefully developed and communicated. It
is essential for a proper representation from the company while marketing and advertising the
Dior Q line. Every department needs to be involved. If possible, conduct an extensive market
research about the tastes and preferences of the LGBTQ+ people.
Step 3: Set the right price
Pricing is really important when it comes to a luxury brand. Keeping the high spending power
of $3.7 trillion (reported by www.entrepreneur.com as on June 2019) in mind the prices can
be similar to their other couture lines. Any dilution of price for the Dior Q can impact the
brand equity.
Step 4: Plan your campaign
Building an effective marketing strategy around launching Dior Q involves a lot of planning
and effort. The first step in building that strategy is setting the launch date because that date
affects the timing of the rest of the campaign. The dates for Dior Q will be during the Paris
fashion week. Branding development, product positioning, public relations, digital
marketing, social media, trade show attendance need to be decided upon well in advance of
launch as serving a niche market is always a walk on fire. Any information of campaign if
misunderstood by the people can negatively impact the image of brand and its equity for a
long run which is called spill over effect of extension.(Moritz, 2013)
Step 5: Launch in Fashion week
The best place to get visibility for a new product line for a luxury brand is fashion weeks at
Paris, London or New York. Timing the launch around these weeks will give Dior Q a terrific
jump-start and will also generate a buzz for the products.
Step 6: Products in boutique
Once the line is launched, the boutiques should be ready with the product offering of Dior Q.
The LGBTQ+ people are highly conscious about the fashion trends and market offerings. As
soon as they will see the designs on runway, they will tend to head towards the boutique to
buy the products. If the brand fails to display the product in boutique with the entire range
and assortment it will be a turn down for the people.
The Dior Q has to be consistent in providing the following two values to the consumer:

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Functional values: LGBTQ+ people perception of how well the Dior Q will fulfill the
utilitarian needs such as the assurance of product quality and ease of use of the garment.
These values cannot be compromised while serving the new lines. The designs cannot be so
out of the box that it affects the functionality.
Hedonic value: Dior Q has to be in line with the pleasure providing feeling associated with
the parent brand Dior. It should not lower the consumer’s perception of the brand to arouse
feelings, to create affect, to provide pleasure, and to eliver emotional benefits that LGBTQ+
buyers will seek from Dior Q.
Possibility of Success of Dior Q: The brand equity associated with Dior will positively
impact the success of Dior Q in the market. The huge spending potential and less luxury
brands lurking in this domain exclusively will be another positive factor to aid the success of
the extension. The willingness and readiness to adopt luxury fashion into their lifestyle and
luxury association of the target group with Dior is another positive sign that can go in favor
of Dior. The personality of the brand and the target group is very similar as both are
experimental, sassy and creative in their approach. Keeping the above factors in mind, the
extension has a huge possibility of success and thus generating a new market base for the
brand and also making them truly inclusive in their offerings to the global consumer.

PROPOSED COLLABORATION BETWEEN DIOR AND H&M

The most probable collaboration can be undertaken between Dior and H&M. It shall serve as
a mutually beneficial co-branding strategy. Since, Dior has recently emphasized upon the
significance of sustainability in the contemporary market, the association with H&M might
affirm its existing ideology.

GLIMPSES OF DIOR’S EMPHASIS ON SUSTAINABILITY

At Paris Fashion Week, Dior became the latest maison to join the sustainability movement.
The brand purchased170 trees from plant nurseries for its SS20 fashion show scenography,
and have transplanted them at various locations in Paris afterwards, reused and upcycled
materials were also employed as part of the setting, including wooden planks, brackets and
fabric. Even all the electricity produced by generators were powered by canola oil. This step
suggests a serious connotation from Dior in its pledge to be environmentally responsible in
the business of fashion.
Apart from the decor of the show venue, Dior’s effort to look into a more sustainable
approach in its production has also inspired the brand explore the most primitive way to
create fabrics for the collection itself. This season, creative director Maria Grazia Chiuri took
inspiration from the photographs of Catherine Dior — Monsieur Christian Dior’s sister — in
which she appears amid her flowers in the her garden. The concept was conceived as an
‘inclusive garden’, the scenography of the show was demonstrated as a travelling grove, from
which the trees continue to thrive as part of the brand’s sustainability initiatives.
As for the glorious billowing silhouettes, the maison employs an interesting technique just as
how Christian Dior luxuriantly transposed the nature he loved onto dresses — forever bearing
witness to his passion for flowers, much in the matter of herbaria. Like an echo of the

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meticulous work of the petites mains in the Dior ateliers, herbaria reflects a virtuoso savoir-
faire that requires patience and passion above all. First, each flower and plant must be
carefully collected, then analysed, described, dried and cared for so they may be preserved
like treasures.
These leaves are meticulously treated and used in various ways to create textures, imprints
and even give colour to the fabrics chosen for the collection.
This luminous tribute to vegetation in all its diversity, is driven by the love of gardens as how
this new Dior collection evokes — through motifs and embroideries, brilliance and texture of
raffia and the lush imaginary Mother Nature has to offer. The designers are presented in the
style that are precious to preserving botanical species significant to the house of Dior. A
series of dresses bathed in colour, from yellow to red, to romantic pieces in a slew of neutral
shades, these are the creative director’s poetic message of environmental
commitments highlighting that every small gesture counts in protecting and cultivating the
beauty of the earth.(2019)
The concept of sustainability is at the forefront in the contemporary fashion industry. There is
a plethora of information disseminated regarding its indispensable nature in the contemporary
era. This had instilled a sense of responsibility amongst the key players of the industry which
have undertaken a lot of steps in this direction. They have taken sincere efforts by embracing
the concept of sustainability in their business operations in general and production process in
particular.

ABOUT H&M
Hennes & Mauritz AB is a Swedish multinational clothing-retail company known for its fast-
fashion clothing for men, women, teenagers and children. H&M and its associated companies
operate in 62 countries with over 4,500 stores and as of 2015 employed around 132,000
people. It is the second-largest global clothing retailer, just behind Spain-
based Inditex (parent company of Zara). The company has a significant online presence, with
online shopping available in 33 countries.

H&M CONTRIBUTION TO SUSTAINABILITY

H&M is working towards sustainability in the following ways-
H&M is a member of the Better Cotton Initiative, offers a recycling program where you can
return clothes from any brand in-store. It uses renewable energy for part of its supply chain
and aims to eliminate hazardous chemicals and solvent-based glues in the manufacturing of
its products by 2020. The brand was among the first to stock ‘Conscious’ sustainable fashion
collection in its stores.
H&M has made some commendable improvements on their labour policies in recent years.
Based on the 2018 Ethical Fashion Report, H&M received the top score of ‘A+’ for its
Supplier Code of Conduct, although the code only applies to part of its supply chain. It also
received a score of ‘A+’ for its transparency and ability to trace most of its suppliers. H&M
audits most of the facilities in its supply chain over a two-year period.
H&M is heading in the right direction by using wool from non-mulesed sheep and banning
the use of fur, angora and exotic animal and skins.

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H&M has extended its ‘Take Care’ concept, which aims to educate consumers on how to take
better care of their garments, from its initial pilot in Hamburg, Germany in April 2018 to a
further four markets. The concept offers customers guidance, repair services and products to
care for their garments so they can live a longer life.(htt3)

RATIONALE BEHIND SELECTION OF H&M AS THE CO- BRAND

In the present context, H&M has been selected as the proposed brand for collaboration with
Dior in order to enable Dior in specifically catering to the requirements of the younger target
segment through this limited edition. H&M is renowned for its appeal amongst the millennial
population. Therefore, it is a viable choice for Dior. The past records also suggest that
greatest benefits are accrued to luxury brands by collaborating with fast fashion brands. The
study titled the relationship between fast fashion and luxury brands: An Explanatory Study in
the UK Market conducted by Cesare Amatulli and his colleagues in 2016 concluded that co-
branding collaborations between luxury and fast fashion brands have a positive implication
for fashion brands in terms of consumer perception. The major reasons attributed to such
results were the following-
 The affirmation of the notion of accessible luxury at affordable prices.
 The Co- Branded Collections provides the customers with a sense of belonging to the
luxury brand of the designer responsible for the creation of the collection.
 The youngsters assume it as their very first step towards the world of luxury.
 It helps in enhancing the overall brand awareness of luxury brands.
 Luxury was found to be linked with self image and the co branding strategy reinforces
this ideology with the presence of the brand logo with symbolises the sense of
differentiation and uniqueness associated with the luxury brand. (Mileti, 2016)
This study reaffirms the viability of the proposed collaboration between H&M and Dior.This
collaboration would definitely help Dior in targeting the youth segment without
compromising on its core values of elegance and sophistication. However, it would also help
Christian Dior has recently spread considerable awareness about the essence of the concept of
sustainability through its Summer Spring 2020 Collection. Therefore, this collaboration as a
business strategy shall serve as a strong tool for emphasizing upon the relevance of the
concept of sustainability for Dior in particular.

PRODUCTS UNDER THE LIMITED EDITION

Both the brands shall launch a limited edition of Bags by assimilating the unique elements of
both of them into the product range. The suggested product range under the limited edition
consists of Saddle Bags, Clutch Bags and Tote Bags. It might serve as a profitable yet
meaningful marketing strategy for them. Since, Dior is known for lambskin and Calfskin
leather bags of impeccable quality. In order to reinforce the idea of sustainability
promulgated by H&M through the Brand Philosophy, the focus of the limited edition would
be on utilizing sustainable alternatives of leather in the production to ensure the animal
welfare and responsible business operations by the brand.
Following materials can be utilized in the proposed limited edition of H&M and Dior.

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Polyurethane (PU) leather, a synthetic plastic polymer, is the more popular option for the
fashion industry. Wide-ranging in quality and price, it is created by applying a spongy PU
coating to a fabric backing.
Apple leather- It is a material created by the Italian startup Frumat that combines waste from
processing apples in the Italian Alps with PU. It is known for its luxurious look and
feel.Apple waste can be used to make a vegan leather.
Teak Leather- The material is incredibly lightweight and can even withstand tropical
storms.Its natural grain character and soft, comfortable hand create a most aesthetically-
pleasing leather.
Coffee Leather- The material is strong, flexible and durable and it is very malleable where it
takes on surfaces very easily. It can be made water resistant using certain coatings.
Recycled Rubber- The recycled rubber imitates the look of fine grain, matte leather, which
translates beautifully into amazing various accessory designs.(htt4)

PRICING STRATEGY OF THE LIMITED EDITION

It would result in a kind of price compromise with the products. The price range
would lean more towards H&M in order to emphasise the concept of Accessible
Luxury. The characteristics of the individual brands included in this strategy are
– elegant and sophisticated nature of Dior and H&M is known for its
fashionable designs and high quality.The combination of these features would
complement the preferences of the milennials on a new level which is the most
prominent objective of the collaboration. H&M always adopts different ways to
create a sense of delight amongst the youngsters and Dior would be able to gain
access to a specific consumer group through this collaboration which otherwise
could not be afforded by this target group.
ANTICIPATED RESULT OF THE LIMITED EDITION
This strategic alliance could significantly transform the self-image and the
reflection of the customer base associated with H&M as a result of its
partnership with Dior and thereby lead to an evident increment in its appeal. On
the other hand, it could be a step- down approach by Dior in exclusivity which
could accrue it greater profitability in the long run due to the anticipated
increase in disposable income of the millennial.

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 Figure 40: Reference images of Bag Collection in Collaboration with HnM
Now, considering the pricing norms of Dior and H & M, the prices of these limited edition
bags will be somewhat in between 4000 to 10,000. The prices will be justified by the
combined brand equity of both the brands.

Conclusion

In order to increase a brand equity, extension is a common and most adopted strategy. Brand
extension allows companies to reduce risks and costs of launching new products, increase
sales/profit and market share. It will also enhance the brand awareness for Dior and Tiffany
by increasing the consumer perceived value and functionality thus adding a value to them.
Dior has already applied extension strategies to improve its sales and profit but in spite of this
their sales profit are going down. This is an alarming signal to replace the existing extension
strategy with a new one where they can attract new consumer group. Introduction Dior Q can
open a new range of possibilities for Dior in terms of its consumer base and sales. Being
among few of the luxury brands exclusively serving the LGBTQ+ community, they can tap
the market easily and efficiently extract the huge purchasing power potential of them which is
not much explored till date by luxury brands.
Luxury brand extensions are undertaken to strengthen the core brand image of the parent
brand. In order to achieve this objective, the relationship between consumers and the luxury
brand must be reinforced. brand confidence, brand prestige and brand desirability are
significantly linked with the nature of luxury brand extensions. Entering into a niche may
help them in developing a relation with the new consumers by serving the same elements
with a new concept. Luxury-brands like Dior and Tiffany will have to embrace what society

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is evolving into to meet the demands of their customer base. Foundations of what generations
past deemed the standard are being challenged as the voice of the new generation begins to
shift into positions of highest authority and influence. The baton is being passed in a
momentous way and those who don't expand with culture will eventually become irrelevant.
Though extension of a luxury brand is delicate issue because of the strong origin and image
associtions of Dior and Tiffany in consumer minds, yet sticking to same consumer base who
hardly do repeated purchase might restrict the sales and profits of these brands in long run
which is the ultimate goal of any business.

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towards-sustainability/2019040242499
(n.d.). Retrieved from https://eluxemagazine.com/fashion/5-truly-eco-friendly-vegan-
leathers/
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Alexandra, Z. (2018). The Influence of Brand Awareness and Other Dimensions of Brand
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CHILDS, L. M. (2014). Effective Fashion Brand Extensions: The Impact of Limited Edition
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