Marketing Project

I. The situation analysis

1. The environment

• Demographic
Dior Perfumes takes into account gender and ages profiles. There are 9 different fragrances for men and 12 for women to express several types of personality. These characteristics depend on the age of the person and its nature. For instance, with Miss Dior Chérie the company focused on young women whereas The Classics range is more adapted for mature women. The age and sex are part of the fragrances’ segmentation for Dior Perfumes.

• Economic
A company depends on the economic cycle that moves from slump to boom and so on. Booms and upturns are pretty good for a company’s activity but then come usually downturns and slumps and leads the company to recession. But in the luxury market, some companies like Dior Perfumes are called “recession proof” because Dior targets wealthy customers that always have purchasing power and do not depend on the economic situation.
Luxury products such as Dior Perfumes are also inelastic because sales don’t significantly depend on price changes whereas majority of products’ demand are price elastic. The economic environment is however very important for Dior because money fluctuations and geopolitical situations are relevant in this luxury sector. But thanks to its “recession proof” characteristic Dior Perfumes copes better with bad periods.

• Natural environment
LVMH has created an Environmental Charter applied to all the companies of the group and has published its first report on this subject. There is a commitment of all the companies of the group to act for the environment protection.
Dior fragrance is committed to the respect of the environment concerning the production from raw material to the industrial process.
As a concrete example, in 2002 Dior created a new process in order to reduce the use of packaging. It enabled the company to save more than 92 tonnes of cardboard.
Moreover, Dior Fragrance has established a