We can find three main types of advertising content for perfumes.
The positioning and advertising based on psychological desires
The purpose of this communication is to trigger positive emotions to cause consumer acceptance for the perfume. In such a context, the ad features a cleverly positioned from the strongest desires, conscious or not, consumers product. Through this placement, marketing and advertising operate two types of desires and motivations. The primary motivation for buying a perfume is based on narcissism. Advertising then seeks to ensure that users identify themselves to a person who embodies the cultural and social ideals. The aim of this type of advertising is to reach people who use scent to help build an identity and self-image valued. In using this brand, the consumer seeks to look like to the character in the commercial. The perfume become an « olfactory identity card » and even directly involved in the construction of the identity of the individual.
Enhancement and social distinction are also another motivation to buy a perfume. In some ads, the luxurious universe in which the product is consumed mainly flatters this motivation. By the consumption of high-priced products, the individual wants to show, or make others believe that he belongs to a superior social category.
Positioning based on patterns and current social values
To counter market saturation and difficulties to stand out from competitors, manufacturers have developed a new concept based on trends and current social value. This kind of advertising is a success when it pleases to many people. As by definition this type of positioning cannot last, manufacturers have decided to minimize the risk by balancing short-lived by a large quantity of products sold immediately. The advertising intensity and broad targeting also place a significant communication budget. For example, during the launch CK One, calvin Klein has invested around 76 million euros. Calvin Klein used the trend of « androgynous » which has led the development of several Fragrances « unisex ».
Positioning based on « artistic creation »
Several marketing studies have shown that some consumers are looking for a fragrance that is a real artistic creation and a work of art. Brands offer these consumers to wear a « confidential », a long process of artistic creation. As the main motivation here is the social distinction, embodied by the scarcity of the product, advertising must be finely targeted and discreet.Sources :
Christian Dior SA offers some products in different categories:
Christian Dior Couture
Wines and Spirits
Fashion and Leather Goods
Parfumes and Cosmetics
Watches and Jewelry
Selective Retailing
Logo
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.
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.
Dior values
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.
Finally, here is a diagram that can represent the Dior’s company values and association:
Brand personality
One efficient and clear way to assess the key elements of the Dior’s company personality can be done through a prism of the brand:
Even if other luxury brands can present the same aspects and elements than this prism, we can still figure out some differentiation in the spirit and message that Dior wants to communicate to its consumers.
Communication on brand personality
Dior as many fashion brands, communicate on its products but also on its brand through various supports and media.
Fashion magazines such as Vogue or Marie-Claire and TV spots are indispensables media for fashion brands as Dior, where we can find some ads focusing 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. 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.
Indeed, if fashion shows are an occasion for luxury brands to highlight their own couture clothes and increase their reputation among consumers, Dior has developed through years a further way to develop its image of excellence and unique know-how.
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 thebrand through an historical point of view.
The company has also developed the ability to create the buzz regularly by creating special events and adapting sales shops with new universe and concepts for a limited time: A mini Fashion Theatre with the most emblematic Dior creations, a re-looking and exposition of the famous mall Harrods in London mixing French Savoir Faire and British charm, or the presentation of an exclusive film event by Bruce Weber, ‘Can I Make The Music Fly?’ for the opening of the new Dior Homme boutique in Miami. All these exceptional events contribute to the notion of dream and exclusivity related to the brand.
As a premium brand, Dior has 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. The latest one has been exclusively promoted on their Facebook page with an invitation to purchase the bag. These short movies enabled the brand to increase its aspirational image and conducted the consumers to express their “love” for the brand through numerous comments.
The communication action mentioned before is also part of a digital strategy that Dior has successfully established. Dior is present on many channels: Facebook, Youtube, Twitter, Mobile application remaining the basic channels for digital strategy but also Instagram, Tumblr or Pinterest where only few luxury brands have already created some accounts. Through these channels, Dior has succeeded to create a unique link with its community offering VIP access to backstage scenes, exclusive stories and contents that focus on fans’ interests (make-up tips, new products released…). By offering original visual contents on various topics, the company increases the loyalty of its followers and remains coherent with its core values.
Dior 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.
In opposing Dior and Chanel, two strong brands and two very distinct images of femininity can be identified. On one hand, Chanel perpetuates the mission that Mademoiselle was set: style for all women, whatever their age. Femininity based on a respect for women, a refinement without artifice, without exaggeration: the simplicity of a comfortable and functional fashion dressing the active woman. However, the Dior woman falls exclusively within the « trendiness ». Upon his arrival in 1996 in Dior, John Galliano reinvented the brand image by making it bolder. Dior woman is then more liberated, playful and laugh at appearances.
In this, graph we can analyse the strategic segments of Luxury brand. Positioning is according 2 criteria: positioning in luxury in different level and the positioning of the brand image: from the “classic and elegant” trend to the “sexy” trend.
We will expose trough this article the microenvironment for the perfume industry, thanks to Mr Michael Porter and his 5 competitive forces. Let’s first clearly define our product segment: the luxury perfume.
We will start with the rivalry among existing competitors. Competition is intense in the perfume industry: around 60-perfume brands on the market. All those perfumes are usually associated to the Brand image but with another core of business. For instance, Chanel N°5 with Chanel haute Couture or Manifesto an Yves Saint Laurent perfume associated with the ready-to-wear collection Saint Laurent. The perfume is following the clothes collection; each season has its own perfume. Even if we can see several brands on the shelf, we must be aware of the brand ownership. Same groups such as LVMH, Kering, Estée Lauder group, own those perfumes… We have to consider that it’s a matter of only few players. We have to ask our self: Is there a brand cannibalisation?
To grow, brands must deal with prestige, image advertising presence and symbolic communication.
Then the threat of new entry: In such industry new entrants need to think twice: facing huge brands which are in the business for decades. One the stake will be the brand loyalty. Competitors on this market have a strong brand image in the “consumer eyes” and it will be hard to catch up the train. Imposing a new brand perfume has to deal with differentiation regarding the fragrance, the design and the advertising strategy. A solution might be to focus on a niche market or an oddball positioning.
Moreover, putting a perfume on the marketplace is link to substantial costs such as communication, marketing and HR budgets. Therefore market requirement is essential. The brand loyalty, the strong competition and the costs are a significant barrier to entry.
Let’s now focus on threat of substitutes
We can’t really see any alternative products regarding perfume and a pressure of substitution between segments do not exist (different targets, different budgets, etc.). Soaps and other hygiene products contain fragrances, which are added for differentiation, but are not substitutes for perfumes.
However the threat come from counterfeit perfume. It represents profit lost and a real danger to the final consumer due to the quality of the perfume and the chemical in it.
Suppliers’ bargaining power:
There are three main types of providers for a perfume:
Fragrance producers
Perfume bottle producers
Packaging specialists producers….
These suppliers have low bargaining power toward large luxury group, due to their large size even if the « raw materials » are critical to the quality and the potential sale of the final product.
Moreover, the time period given by the perfume group is becoming shorter.
At least but not last, the buyers bargaining power.
Within the selective distribution, we first distinguish all integrated channels (Douglas Parfumerie Marionnaud, Nocibé, Sephora), the franchising chains and department stores (BHV, Galeries Lafayette, Le Bon Marché, Printemps). The concentration of the selective distribution around a small number of brands, such as the size and purchasing power increased significantly strengthens the bargaining power of distributors.
In the context of the concentration distribution, manufacturers carry out restructuring (pruning the portfolio of brands, specialization of production sites) to achieve economies of scale. They also have massive use of advertising, which plays a crucial role in customer loyalty. To this end, companies’ communication and marketing campaigns are regularly launched with celebrities (k Keira Knightley and Gisele Bündchen for Chanel and Natalie Portman for Dior) to attract consumers.
Manufacturers are making new acquisitions to achieve a critical mass sufficient to counterbalance the weight distribution, complete their portfolio of activities or expand their markets.
A presence in the distribution channel can be a secure outlet and a more direct knowledge of the markets. LVMH owns Sephora, the company’s selective distribution of perfumes and cosmetics. As well as, Guerlain leverages its network of own shops.
The perfume industry is huge but owned by few groups, which are spreading their brand portfolio. The perfume such a rare fragrance by the past is nowadays a common “luxury” product. Brand image and loyalty have a strong impact on consumer choice.
The purpose of this communication is to trigger positive emotions to cause consumer acceptance for the perfume. In such a context, the ad features a cleverly positioned from the strongest desires, conscious or not, consumers product. Through this placement, marketing and advertising operate two types of desires and motivations. The primary motivation for buying a perfume is based on narcissism. Advertising then seeks to ensure that users identify themselves to a person who embodies the cultural and social ideals. The aim of this type of advertising is to reach people who use scent to help build an identity and self-image valued. In using this brand, the consumer seeks to look like to the character in the commercial. The perfume become an « olfactory identity card » and even directly involved in the construction of the identity of the individual.
ies to stand out from competitors, manufacturers have developed a new concept based on trends and current social value. This kind of advertising is a success when it pleases to many people. As by definition this type of positioning cannot last, manufacturers have decided to minimize the risk by balancing short-lived by a large quantity of products sold immediately. The advertising intensity and broad targeting also place a significant communication budget. For example, during the launch CK One, calvin Klein has invested around 76 million euros. Calvin Klein used the trend of « androgynous » which has led the development of several Fragrances « unisex ».
Dior vs Chanel 