Contents

Section 1 1:1 Methodology 1:2 Dior Rational Section 2 2:1 Water Market 2:2 Dior History 2:3 Primary Research- Questionnaire & Results Section 3 3:1 Competitors 3:2 Market Environment 3:3 Perceptual Map 3:4 Consumer Profile- Mood Board Section 4 4:1 4 Ps 4:1:1 Product 4:1:2 Place 4:1:3 Price 4:1:4 Promotion 4:2 Name Rational 4:3 SWOT Analysis 4:4 PEST Analysis Section 5 5:1 Future Expansion Section 6 6:1 Mood Board Packaging Ideas 6:2 Mood Board Ad Campaign inspirational Images 6:3 Mood Board Ad Campaign proposal Section 7 7:1 Questionnaire and Results 7:2 Appendix 7:3 References 1

Section 1
1:1 Methodology Primary research will be used to provide information in order to meet customers needs. Secondary information on the water market and Christian Dior SA will be gathered for use as a guide in the creation and promotion of the new product. 1:2 Dior rational Dior is one of the leading companies in clothing, beauty products and fragrance. The company also has a 42% stake in LVMH luxury goods meaning it can target and promote a new product or launch on a huge scale. It has stores in over 42 countries and concessions in many leading stores across the world. Unlike Armani and Gucci, Dior has not yet expanded into the food industry and with the rising figures in bottled water consumption Dior could easily launch bottled water within stores. And with such an emphasis and trend on healthy living and staying young as well as the idolization of the Dior brand, Dior bottled water could generate a lot of excitement and interest. 2

Section 2
2:1 Water market The bottled water industry is currently worth almost 1.4 billion. It holds a substantial share within the soft drink industry. In 2009 1.626 million liters were consumed within the UK. Bottled water is now more popular and has a higher buy rate than wine, spirits and fruit juices. From my research Participants noted that they preferred still water with 81.8% opting for this type over sparkling, mineral waters, flavored waters and slimming waters. See appendix chart 1 In 2009 on average the UK bottled water consumption was close to 34 liters and with the current trend of healthy living by 2018 the UK potentially could reach 40 liters per person. This in theory is an accessible target to reach when compared to the likes of America and Italy who currently consume on an average per person more than double than the UK consumers. Bottled water consumers are currently led by their decision of purchase by price. According to Mintel 11.9million people choose the cheapest bottle compared to the 5.2 million that were motivated by brand and 7 million consumers that chose the most efficient bottle type. This was mirrored in my survey where 78.8% of participants said they choose their water on price, and 84.8% noted that they are more attracted to re-usable bottles. See appendix chart 2 The chart shows a steady rise in bottled water consumption. Though there was a significant decline in the years of 2007/2008 this would have been the result of the recession and weather factors, due to bottled water in the UK being unnecessary when provided with clean tap water. 3

2:2 Dior History Christian Dior (1905-1957) launched the house of Dior in 1946 with the backing of a French Entrepauner; Marcel Boussac. Christian Dior SA now has over 235 boutiques worldwide and a 42% stake in LVMH (Louis Vuitton Moet Hennessy) the worlds largest accessory goods label gained through Bernand Arnault from the merger in 1984. Dior is known to create some of the worlds best haute couture and ready to wear clothing, it has gone through many changes in fashion and has pioneered some of the most timeless collections, including its most memorable the new look. After a number of successors who undertook Creative Director after Christian Diors death in 1957 including Yves St Laurent, Marc Bohan, Gianfranco Ferr; John Galliano now holds the title and has done so since 1996. It is believed that the Dior house is known for its romanticism, feminism, and modernity all of which symbolised Diors founder.

2:3 Primary Research - Questionnaire and results My primary research consisted of a questionaire which was based on the internet set up in order to get an understanding of what the customers wanted. In particuar what type of packaging they are most drawn too and what water type they tend to drink. From doing this it enables Dior to cater directly for the consumer meaning that the customer can have a sense of importance and involvment, created and customized just for them. See section 7:1 5

Section 3
3:1 Dior competitors With the increasing designer collaborations in the fashion market as well as the food market these collaborations maybe the biggest competitors. Evian and San Pellegrino have both collaborated with designers such as Paul Smith and Missioni. Though these bottles are limited editions they still have an effect on the luxury goods market. The likes of Buxton and Evian bottled water wouldnt be seen as competitors for the glass bottle range as they are targeted to the masses and priced low, for efficient, on the go water. Though Diors proposed bottle types do include a smaller bottle type (500ml) for certain situations (shopping) it would still be targeted to those who shop in more exclusive stores and not produced in a mass scale as Evian and Buxton are. (See Appendix Table 3/4)

3:2 Market Environment The UK water market doesnt have an exclusive water brand, however within the USA a water company called BlingH2O is known to produce such a thing. Created by Kevin G. Boyd a Hollywood writer/producer. His inspiration came from Hollywood studios where he witnessed people flaunting their bottled water as if it marked their success and celebrity status. So he designed bottled water that marked just that. This is similar to what Diors water could become. BlingH2O is about obvious stardom, Dior has heritage and tradition behind it, this alone will give the water sophistication without having to have water bottles enthused in Swarovski crystals. Bling H20 say it themselves, its not for everyone, just those that Bling. Though this has done well in tackling an untapped market BlingH2O could be seen as garish and therefore not do so well in other countries as Dior potentially could with both its small and large bottles.

3:3 Perceptual map - Bottle Brands

Expensive

Bling H20 Dior Hydra Evian Limited Edition

Exclusive

San Pelligrino

Mass Market

Hildon Evian Volvic

Inexpensive

3:4 Consumer profile Demographic information- the majority of Dior consumers tend to be women, certain advert campaigns for perfume have introduced a younger age group however the majority of Dior customers is 30+

Psychographic information- given the price of Dior products consumers of Dior tend to have extendable incomes, weather its with their own money or others.

Geographic information- women who buy Dior products tend to branch out into other luxury good areas. Consumers tend to either be one of two personalities, someone who wants to make a statement or someone who simply wants the Dior sophistication. Behavioural information- Dior Boutiques will be aware of two types of customers, one who would come in a few times a year that would spend a considerably large amount on each visit (usually to keep up with each season) or another who buys single pieces that maybe a staple product.

Benefit information- by buying into Dior the consumer will most likely be buying the products for status and idolized lifestyle.

10

Section 4
4:1 The 4 Ps 4:1:1 Product The proposed water types for Dior to release are in two forms of packaging. Both bottles will be in liking of Diors well-known jadore perfume. The reason for this is that the perfume is an established perfume within the industry and therefore the bottle will be easily recognizable to Diors label. The first bottle is in glass. It will hold 750ml of both still and sparkling water. The 750ml bottle will be glass solely for presentation purposes. The bottle is designed for table water at home, in restaurants or other formal events. This is why the bottle will consist of either still or sparkling, for table etiquette. The second form of packaging will be a smaller water bottle that holds 500ml of only still water due to the results in the bottled water survey. This bottle will be plastic for ease of carrying and on the go thirst. It will also be re-usable with a screw cap. The reason that this bottle will also be in keeping with the glass bottle is for glamour impact, as Kevin G. Boyd noted people, in particular celebrities, use water to make a statement. 11

4:1:2 Place In keeping with the Dior image it can not be produced and marketed in a mass scale but can still be accessible to most. Dior Hydra Water 500ml When designing this bottle it was to produce an easy carrying, stylish bottle that spoke for itself. Therefore with this in mind it will effect its point of sale. The 500ml bottle will be sold within these places: Dior Hydra Water 750ml This bottle is sophisticated and suitable in any formal engagement. It will be sold: Dior stores Online Dior stores Dior concessions; House of Fraser, John Lewis, Debenhams, Harrods, Selfridges.

12

4:1:3 Price When analyzing the results of the bottled water survey it was apparent that Evian is the most popular brand purchased by participants. I therefore researched Evian pricing and in particular the collaborations they have formed with Paul Smith and Issey Miyake. This water is priced at 3.95 for 750ml. When looking at the likes of Paul Smith and Issey Miyake accessory products it worked out that they are 20% less than Dior products. In order to maintain Diors product image and market status the bottled water will be sold at a 20% mark-up from Evians limited edition bottles (4.74). Evian packaging however is rather limited in comparison to what Dior is going to produce. Therefore taking into consideration of price of packaging this will push the price of water to 6.00 for the 750ml bottle.

With the smaller 330ml plastic bottle the competitors price on average is about 53p. However, these bottles are sold on a mass market in most supermarkets and convenience stores and therefore the price of these dont compare to Dior water. They neither have the exclusivity or image and market status that Dior holds. Consequently because of the smaller bottle, which is plastic, the price will be 1.10.

13

4:1:4 Promotion Product Placement After Kevin G. Boyd noted that what you drank marked your status and after reading many articles about new fad foods, drinks and diets it would be worth sending the Dior Hydra Water to some magazines and celebrities. The product would then be heard and seen in and with influential people/articles. Launch Party A launch party for the product in its most popular store within London will create exclusivity and excitement. By holding it within store it would also show off other new products. Invites will go out to their loyal customers as well as people within industry (magazine houses, pr agencies, celebrities). Within store Bottles will be sold in store. It will be positioned on the counter for maximum advantage of sales. However the bottles that will be sold to the customer will be stored in a fridge in the stock room. The shop assistant will then fetch the water for the customer. Therefore, providing maximum customer service that is known of Dior. Online Dior.com is currently split into three parts; Fashion & Accessories, Fragrance & Beauty, Fine Jewelry & Timepieces. When you scroll over these more information rolls down. The site wouldnt quite work if you placed Hydra Water as a fourth part to the site homepage, however it could fit under Fragrance & Beauty. Therefore it would still be prominent on the homepage. Placing the water bottles on the counter will ensure customers are aware of the water and cater for those impulsive buyers.

14

On the page of Hydra Water you will find four areas. Background and water source, water campaign, where to purchase and buy online, and personalized water. Personalized water- Gives the customer the chance to personalize the water bottle for gift ideas etc. The customer can make the bottle water unique to them and therefore in keeping with the idea of exclusivity. Interaction with products has been seen a great deal recently and therefore this keeps the water up to date and something exciting.

15

4:2 Name rational HYDRA WATER Dior has produced hydra products since 1973 and therefore the name has been established with Dior consumers and within industry for over 35 years. Dior Hydra is a range of skincare products promoting younger looking skin, thus generating the idea of using the name for bottled water as water is known to be vital for keeping your skin healthy. It also created the idea of producing vitamin water, however this is something for the future once Hydra Water has been established in order to keep things fresh and exciting. As well as that the word Hydra also seemed to fit perfectly as a bottled water name.

16

4:3 SWOT Analysis Strengths Dior Hydra will be the first out of the major fashion houses to move into bottled water enabling Dior to sell the Dior lifestyle in everyway. Dior is known for its exclusivity, sophistication and tradition and by selling an affordable product under this brand name the product immediately becomes a piece of luxury that most want to buy into. Its affordable as well as attainable but is not produced on a mass scale like its main competitors. The position of the water in stores will target shoppers, which people noted is when they most buy bottled water. By producing two types of bottled products enables Dior to tackle two types of the water market, ease and efficient (500ml plastic) and sophisticated and elegant (750ml glass). Weaknesses Due to it only being attainable in boutique stores this could effect peoples decisions in purchase as most buy water in supermarkets or mass food stores. Opportunities Current water expansion- the bottled water market has been on the rise for many years now and with it now being worth 1.4billion Dior can capitalize on this Healthy Living- Healthy lifestyles have become a trend. With celebrities constantly talking about new diet plans and releasing fitness videos, as a nation the UK has almost become obsessed with looks and idolized living. The water may seem an extravagance in comparison to other water brands and therefore they could loose out in a particular market.

17

Water is known to be key to a healthy lifestyle and weight loss enabling Dior to use this as a promotion method. Threats Competitors Limited Edition bottles- when a competitor joins forces with a designer or fashion icon for a limited edition bottle design this causes a buzz of excitement, this could effect Dior Hydras sales. Not targeting enough sales points- as the water is only being sold in select stores this could effect purchases and cause people to also be unaware of the product. 18 Future Expansion- Can easily expand into other water areas or through LVMH into other businesses.

4:4 PEST Analysis Political With the downturn in the economy Dior Hydra Water range may be seen as an extravagance when we currently live in a country that provides us with clean water through our taps unlike third well countries. Therefore potentially causing Dior hydra water to appear bad taste. Economical With the economic downturn producing an extravagant water label may not be easily feasible for customers to purchase in the current climate. However Dior customers wouldnt usually be effected by such things and therefore it would only truly cause problems where the water is sold in middle market stores such as House of Fraser and Debenhams. Social The proposed Dior water will be exclusive in some respects and therefore keeping within the Dior image. Customers of Dior will feel comfortable drinking and buying Diors bottled water as well as others will be interested in buying into Dior and tasting exclusive lifestyle. The price of the water will not cap the customer who would purchase water however its exclusivity within its place of sale keeps it exclusive. The idolized healthy lifestyle that has formed a trend will only add to the water sales with water being a key supplement to keeping healthy and weight loss. Technological Both bottles will use recycled materials (glass & plastic) using traditional methods as there are not yet any new enhanced methods for doing this.

19

The water will be out sourced where the water will go through a traditional filtration and sedimentation process.

20

Section 5
Future Expansion Once Dior has established itself as a water Brand it may push itself into other areas of water, such as vitamin water. Diors Hydra skin care range promotes itself in achieving younger looking skin. If Diors Hydra Water range could push itself into producing vitamin water that also achieves this then it could move into a new water market. With Diors gardens and science this could be easily possible like water brands glacau vitaminwater and V Water. 21

22

23

24

Section 7 7:1 Questionnaire & Results

Do you buy bottled water?

Yes No

What bottled water brand do you usually purchase? Evian, Highland Springs, Buxton, Volvic, Own Brand

What type of water do you usually purchase?

Still Sparkling Mineral water Flavoured water Slimming water

When and where do you normally by bottled water?

a In
restaurant Abroad When doing pitness Shopping Supermarket s

25

What is your deciding factor when it comes to buying water?

Price Packaging Promotion Make Type of Water Health Factor Charity

Would you be interested in buying bottled water thats been produced by a designer brand?

Yes No

What types of packaging do you nd appealing?

Minimalistic

Vibrant and eye catching Clear on Information and easy to read

26

Are you drawn to designer labels?

yes no

Would you be interested in buying bottled water thats been produced by a designer brand?

Yes No

27

7:2 Appendix
TABLE 1
Production (million litres) 1578 1638 1729 1704 1658 1682 UK waters exported (million litres) 35 40 42 55 60 56 UK waters consumed in UK (million litres) 1543 1598 1687 1649 1598 1626

Year 2004 2005 2006 2007 2008 2009

Source: Zenith International

TABLE 2
Year Volume of bottled water consumed in UK (including water coolers) Year Volume of bottled water consumed in UK (including water coolers) Year Volume of bottled water consumed in UK (including water coolers)

1976 1980 1990 1991 1992 1993 1994

20 million litres 30 million litres 420 million litres 480 million litres 520 million litres 580 million litres 700 million litres

1995 1996 1997 1998 1999 2000 2001

800 million litres 795 million litres 900 million litres 990 million litres 1.2 billion litres 1.42 billion litres 1.59 billion litres

2002 2003 2004 2005 2006 2007 2008 2009

1.76 billion litres 2.07 billion litres 2.08 billion litres 2.2 billion litres 2.27 billion litres 2.18 billion litres 2.06 billion litres 2.09 billion litres

Source: Zenith International

28

TABLE 3

330ml Bottle Water Competitors

Brand Price Information

San Pellegrino mineral water, plastic bottle (330ml) 0.50 0.48 0.60 Evian has many Buxton is a well- San Pellegrino is the different water bottles known brand of less popular choice however this is the water. It isnt of water though most popular and expensive and holds an air of regularly stocked. Its therefore often sophistication and easily accessible and stocked in exclusivity about it. noted to be the most supermarkets. Buxton Known to be more popular choice of neither promotes its of a popular choice water from the bottled product nor has within the caf and water survey. collaborated with restaurant industry. designers as the other two bottled water brands have.

Evian mineral water , plastic bottle (330ml)

Buxton mineral water, plastic bottle (330ml)

29

TABLE 4

750ml Glass bottle Water competitors

Hildon still mineral water (750ml) 1.16

Evian mineral water (750ml) 3.95

Brand Price

San Pellegrino Sparkling Natural Mineral Water (750ml) 1.01 The preferred choice of chefs and sommeliers, it has been one of the world's most renowned and acclaimed mineral waters since 1899.

Description

Hildons water is The most recent bottled at the source Evian bottle design in the Hills of by Issey Miyake. A Hampshire and bottle in its purist whether it is from, brimming Delightfully Still or with optimism and Gently Sparkling, freshness, to has a distinctive, transform your table delicious taste. into a flowery meadow full of poetry and humour. The fourth design since 2008

30

7:3 References

Books
Kendall, Gordon T. Fashion brand merchandising / Gordon T. Kendall. New York, N.Y. : Fairchild Books, 2009 Easey, Mike. Fashion marketing / edited by Mike Easey. Chichester ; Ames, Iowa : Wiley-Blackwell, 2009

Program
Whately, Francis. The Foods that Make Billions: Liquid Gold. BBC

Internet
http://www.britishbottledwater.org/vitalstats2.html (accessed 3rd January 2011) http://www.dior.com/beauty/gbr/en/actions/home.ep (accessed 3rd January 2011) http://www.fundinguniverse.com/company-histories/Christian-Dior-SA- Company-History.html(accessed 11th January 2011) http://www.infomat.com/whoswho/christiandior.html(accessed 3rd January 2011) http://www.dior-finance.com/en/historique.asp(accessed 3rd January 2011) http://www.escentual.com/info/dior/dior-beauty-expertise(accessed 15th January 2011)

31

 http://www.springwatershop.com/all-100percent-naturalen/silent.html?sl=EN (accessed 15th January 2011) http://www.globalpackagegallery.com/main.php/v/bev/bottled+water/?g2_pa ge=1 (accessed 16th January 2011) http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/ display/id=394186(accessed 18th January 2011) http://www.mysupermarket.co.uk(accessed 15th January 2011) http://www.myevian.com/?___store=myevian_en(accessed 13th January 2011) http://lovelypackage.com/issey-miyake-x-evian/(accessed 21st January 2011) http://www.blingh2o.com/(accessed 13th January 2011) http://www.borba.com/skin_balance_water_sampler/product/499(accessed 21st January 2011) http://tutorialfreakz.com/25-inspiring-water-adverts/(accessed 21st January 2011) http://www.dior.com/beauty/gbr/en/35ans_dexcellence/th/the_skincare_phil osophy/35ans_dexcellence.html(accessed 3rd January 2011) (Word count 2745)

32

Images
Images in Report
1. http://www.fashion-forum.org/fashion-designers/christian-dior.html 2. http://www.curatedmag.com/news/2009/09/24/paul-smith-for-evian/ 3. http://www.dior.com/file/prehome_new/index.html 4. http://www.dior.com/beauty/gbr/en/35ans_dexcellence/th/the_skincar e_philosophy/35ans_dexcellence.html

Packaging Mood Board 1 Mood Board 2

1. www.style.com/fashionshows/complete/slideshow/ S2011RTWCDIOR?event=show2182&designer=desig n_house27&trend=&iphoto=0#slide=8 2. www.style.com/fashionshows/complete/slideshow/ S2011RTWCDIOR?event=show2182&designer=desig n_house27&trend=&iphoto=0#slide=8 3. http://www.coloribus.com/adsarchive/prints/jean- paul-gaultier-perfumes-the-chic-sailor-2302005/ 4. http://www.gettyimages.co.uk/detail/LB0154- 001/Stone 5. http://www.veer.com/products/credits/ 6. http://cnnews.files.wordpress.com/2008/02/bellona.jpg 7. http://www.flickr.com/photos/41382077@N07/galleries/7215762300 9849035#photo_5036215621 8. http://www.flickr.com/photos/stevenmaciejewski/3522180469/ 9. http://www.pxleyes.com/photography-picture/4ca0ca960a6cc/Ship-s- Rope.html

33

Mood board 3
1. http://viewoncanadianart.com/2009/11/26/less- billboards-more-art-please-support-this-cause/ 2. http://www.flickr.com/photos/kingaart/3528190344/ 3. http://widescreen.qkype.com/bottle-in-the-sand- widescreen-wallpaper-441/ 4. http://www.single-women-today.com/travel-for- singles.html

34