Dior's Dynasty: Exploring the Iconic Fashion House

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Dior: A Symbol of Elegance, Luxury, and Excellence

Dior is a household name in the fashion industry worldwide. The multi-billion enterprise is a symbol of elegance, luxury, and excellence in the fashion world. This report explores house of Dior macro and microenvironment and further delves into its positioning in the fashion industry. The report also outlines House of Dior marketing strategy and offers a recommendation that will enable the brand to remain competitive in the dynamic industry.

The History and Success of the House of Dior

The house of Dior continues to be a superior brand since its inception in 1946 by Christian Dior. The founder was a lover of art whose experience under Robert Piquet a famous designer at the time inspired him to venture into fashion. After the second world war, Dior in collaboration with household designers including Pierre Balmain at and Marcel Boussac started the house of Dior (McGrath, 2016) In just a few years House of Dior had quick success given its stylish and opulent designs resulting in further expansion into other products including furs, perfumes, and accessories. The fashion brand deals with design and sale of Fashion apparels, accessories and beauty products.

Positioning in the Fashion Industry

The brand sets the trend in the fashion industry and has strived to maintain its legacy and heritage. It has been ranked 189th in Forbes list of 2000 global brands and 234 in the fortune 500 list (June 2016). Dior estimated market capitalization worth was at $42.7 billion while its revenue generation was at $43.7 billion in 2017. Dior has been able to maximize its profits because of its expansive distribution through various channels such as exclusive stores, e-commerce platforms, multi-brand stores and high-end supermarkets. Christian Dior Couture group has its presence all over the world with over 4000 stores in 35 countries (Rees-Roberts, 2012).

Competition and Target Market

The brand is competitive and sets itself apart from most fashion brands because of its rich heritage and ability to challenge the status quo of modern society. It competes with both local and international brand including Chanel, L.V, Agnes b, Burberry, LMVH, Zara, and Gucci. Dior also faces competition from private labels and counterfeit products that affect its image. Despite these challenges, Dior has successfully positioned itself in the premium apparel market.

Christian Dior's market segment are premium customers people who like the finer things in life. The current target group is individuals of age group 15-40 with a preference for stylish apparels and accessories. Dior's pricing is very high because their clients are predominantly from upper and middle-income class. Dior develops, accessories, fashion and skin care and cosmetics products for women. Dior targets tasteful clients with taste and who aspire to attain the delectable goods of brands.

Macro Environment and Microenvironment

Dior couture exists in a dynamic landscape characterized by an evolving market, internal management shifts, and rapid development. French politics have come to influence Dior with its free-market policy that allows for free and significant expansion space for Dior. Another influencing factor is the French economy which is quite poor. The low rate of GDP has severe implications for Dior strategy execution. For example, when work level is down, Dior can't recruit enough workers for growth. The unequal distribution of wealth poses a pivotal challenge to Dior strategy for expansion. Dior development style is dependant on the few wealth population. However, growth in technology has enabled Dior to reach a broader market across the globe. Also through its websites, Dior can communicate, gain feedback and realize clients needs.

The Success of Dior's Internal Environment

The success of Dior is primarily attributed to its internal environment. Diors management has enabled the company to sustain the band for decades. Dior partnerships and stakeholders have also supported the brand and helped them to reach the organization goal. Similarly, they have a manufacturing unit in China that strives to uphold the brands quality as well as curb the cost of production. With such financial strength, the company has been able to invest in research and analysis allowing them to have efficient and effective segmentation. This research also helps them to be ahead of their competitors as they are aware of the gaps present in the market in time and can offer quality products.

The Marketing Mix of Dior

The marketing mix is an essential aspect of an organization it guides companies decisions before they bring a product to the market. The four traditional marketing mix include product, price promotion, and place (Gockeln, 2014). Companies can obtain a competitive advantage if they utilize the four Ps in decision making. Marketing mix consists of product marketing mix and service marketing mix. However, this paper will focus on product marketing mix as it is used to market tangible goods.


The first variable is the product plan which articulates product-related decisions (Išoraitė, 2016). Dior products are leather merchandise, ready-to-wear, shoes, fashion accessories, timepieces, ornaments, makeup, perfumes and skincare products. Even though the products are predominantly female, they also include men and kids line. Currently, there is Dior Homme for guys and Baby Dior for children. Some of its famous perfumes for women include Miss Dior and Poison while Sauvage, Jules, and Higher are designed for men. The brand has expanded its products to include foundation, cosmetic, blush for face, mascaras, concealers, lipstick, liners and primers for eyes and lip gloss. As part of its skincare products, Dior has developed toners, serums, scrubs, and masks for its clientele (Jingjing, and Shouzhong, 2015).


The second most important variable is the place in the marketing mix of Dior. Dior products are distinct and unique making them stand out in the market (Şen, 2008). They have a global presence with close to two hundred and ten areas in the world. In Asia, it has one hundred and nine stations, Eight in Middle-East at Eight, forty-eight in North America, Forty-Five in Europe, six in Oceania, four in South America and a single outlet in Africa and the Caribbean. Dior has protected its brand name by franchising its stores in superior locations in big cities like Tokyo, New York, Paris, London and Beijing while its main headquarters is in Paris, France. In these locations, they are situated in the popular shopping court and famous places such as Habour City. These places are not only convenient but also well-situated and accessible for target consumers.

The company distributes all its merchandise through its string of retail markets globally as well as different online stores on its website. Dior sells its product directly to the clients in its stores with efficient and well trained professional personnel. The elegance of the brand can be felt in its stores which are spacious with stylish ambiance and cozy atmosphere. Dior outlets have shelves painted in fifty-six variant of grey color such ambiance enables the company to gain maximum advantage. The clients are assisted by personnel assigned to them exclusively and in most cases via prior appointments.


Dior is a luxurious brand that elicits elegance, style, and class and that can be said about its quality and pricing. The company has been able to sustain a high-class client base by guaranteeing quality and offering exclusive designs. The pricing targets consumers who are graceful with a social distinctiveness (Okonkwo, 2016). Dior premium pricing policy for its products fits its premium quality products. The premium clients have established a trustworthy relationship with Dior enabling the company to survive and thrive on premium prices. Dior's products are exclusive, and thus the clients are comfortable buying Dior merchandise at premium prices. Dior clients are concerned about their status and being seen with Dior affirms their status among the elite. Even though the pricing of the product is expensive, it doesn't affect the demand for the luxury. When setting the prices the company considers some factors including competitor price, product quality, and reputation value.


Promotion is the last significant marketing mix for every organization. A company can have a quality product a fair price and perfect location, but without promotion, the product may be impossible to penetrate the market. Advertising is an essential marketing strategy to maintain brand competitiveness (Singh, 2012). Dior’s name sets it apart already from most popular brands it is the synonym word for Dior gorgeous and elegance. Dior brand colors are a golden representation of class and style. The company took over the French tradition of haute couture and fine artistry. The brand is a representation of the high-class women mature artistic taste and a symbol of the supreme spirit of French fashion culture.

Consequently, the company's logo sets it apart and enables its clients to differentiate it from imitation. Its logo is the name of Christain Dior its founder and fashion designer using a Nicolas Cochin font. The simplicity and straightforward nature of the brand increase the ease its ease of recognition by its clients. The logo is a marketing strategy in itself as it is associated with notions of glamour, prestige, luxury, glamour, sophistication, and originality.

Dior has published its advertisements in famous magazines like Vogue that caters to first-class customers. Diors commercials emphasize elegance and quality of their products. Dior capitalizes on both social and electronic media to reach out to most of their clients. Given that most of their products target women there brand advertising techniques focus on different representations of women. Dior employs female stereotypes that customers identified with the most. Dior have maximized on two very different understanding of femininity: the "goddess" and the "girl next door".

As a premium company, it has been able to create a name for itself by holding exclusive events and assimilating sales shops with a new universe and thought for a restricted time. An example the mini Fashion Theatre with the most emblematic Dior creations, by Bruce Weber, ‘Can I Make The Music Fly?' for the launch of the new Dior Homme outlet in Miami. Such outstanding events add to the concept of dream and exclusivity linked to the brand. Dior is also recognized for ambitious and exclusive exhibitions that demonstrate the rich heritage and history of its perfumes, dresses, accessories, and pictures in several parts of the world.One of its famous exhibitions is Esprit Dior, featuring the brand's historical work on ten different themes (Crilly, 2018).

The company also uses brand ambassadors to reach out to a broad base of clients. Recently in a campaign for male fragrance Eau Sauvage, Dior used Alain Delon, a film star as their brand ambassador (Rees-Roberts, 2012). The advertisement used a still and moving imagery of the film star, principally shots from his tasteful crime drama La Piscine. The choice of a fashionable brand ambassador who is an icon seeks to impact global consumer culture significantly. The brand is worn by celebrities including Ziyi Zhang, Blake Lively, and Madonna.

Communication and online presence have made significant contributions to the promotion of the brand.Dior has successfully established a considerable presence on online platforms including Facebook, Youtube, Twitter, Instagram, Tumblr, and Pinterest (Godey et al., 2016). Through these platforms, Dior offers a unique link with its community providing VIP access to offstage scenes, exclusive stories and contents centered on fans' interests such as makeup tips and news on new products releases. This strategy seeks to engage the customers and keep them interested in the brand.

The company has been able to establish trust and relationship with its customers by giving them exclusive information. Dior rewards the regular client's loyalty by sending latest reports about its products through emails. Dior values its customers by giving them a one on one experience by issuing exclusive invitations for pre-sale (Rees-Roberts, 2012).

The company values partnerships and has utilized these relations to its advantage. The company in collaboration with WeChat was able to penetrate the Chinese market while selling its limited edition Lady Dior bags during the Qixi Festival Holiday. The company in partnership with Tech Company was able to sell its bag in a day. Presently the company has expanded its product domain to include Dior Eyes—a VR headset for runway shoes. The virtual technology was introduced to help its customers have a unique experience and improve the way their clients see fashion


Dior is already a force to reckon with in the fashion industry given its wide usage globally by the crème Del a crème in society. However, the company faces significant completion from other powerful brands around the world. For Dior to continue leading the market it has to be flexible to change and highly adaptable. The brand can broaden its market base by expanding its location to other countries around the world. Dior has a narrow market that limits its profitability Dior should open up to the possibility of reducing the price of its products. Dior should also consider opening more outlets in different countries to ensure they reach the various markets globally.

Dior evokes elegance, class, and style in its design and creation and this feeling can be observed among its clients. Evidently, Dior has done well to maintain its brand despite the volatile external and internal environment. However, there is still an opportunity for growth for the brand to continue to be a revolutionary fashionista for future generations. The fashion industry is fluid and unpredictable given the development in technology and the changing needs in the market. Dior should improve their price, product, position, and promotion strategies if they are to maintain their iconic brand in the near future.


Crilly, C. (2018). National Gallery of Victoria and the House of Dior, The House of Dior: Seventy Years of Haute Couture, National Gallery of Victoria, Melbourne, Victoria. History Australia, 15(1), pp.173-175.

Gockeln, Lisa. 2014. “Fashion Industry Analysis From the Perspective of Business Model Dynamics.” University of Twente P.O. Box 217, 7500AE Enschede The Netherlands, 17.

Godey, Bruno, Aikaterini Manthiou, Daniele Pederzoli, Joonas Rokka, Gaetano Aiello, Raffaele Donvito, and Rahul Singh. 2016. “Social Media Marketing Efforts of Luxury Brands: Influence on Brand Equity and Consumer Behavior.” Journal of Business Research 69 (12): 5833–41. https://doi.org/10.1016/j.jbusres.2016.04.181.

Išoraitė, Margarita. 2016. “Marketing Mix Theoretical Aspects.” International Journal of Research – Granthaalayah 4 (6): 25–37. https://doi.org/10.5281/zenodo.56533.

Jingjing, Z, R Jinhua, and H Shouzhong. 2015. “Dior Product Mix Analysis Research.” Journal of Human Resource Management 3 (4): 33–41.

McGrath, Maggie. 2016. “The World’s Largest Apparel Companies 2016: Christian Dior, Nike And Inditex Top The List.” Forbes. 2016. http://www.forbes.com/sites/maggiemcgrath/2016/05/26/the-worlds-largest-apparel-companies-2016-christian-dior-nike-and-inditex-top-the-list/#562b3b58262e.

Okonkwo, Uche. 2016. Luxury Fashion Branding: Trends, Tactics, Techniques. Luxury Fashion Branding: Trends, Tactics, Techniques. https://doi.org/10.1007/978-0-230-59088-5.

Rees-Roberts, Nick. 2012. “Men of Mode: Alain Delon, Christian Dior and Brand Heritage.” Film, Fashion & Consumption 1 (1): 81–99. https://doi.org/10.1386/ffc.1.1.81_1.

Şen, Alper. 2008. “The US Fashion Industry: A Supply Chain Review.” International Journal of Production Economics 114 (2): 571–93. https://doi.org/10.1016/j.ijpe.2007.05.022.

Singh, Meera. 2012. “Marketing Mix of 4P’S for Competitive Advantage.” IOSR Journal of Business and Management 3 (6): 40–45. www.iosrjournals.org.

September 18, 2023

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