(Tiểu luận) group report analyze a dior beu customize lipstick product and make relatedoperational decision

GROUP REPORT Analyze a Dior BeU customize lipstick product and make related operational decision Students: Tạ Ngọc Mai, Hoàng Khánh Hương, Tăng Hà Anh, Nguyễn Phương Anh, Nguyễn Hồng Vâ

GROUP REPORT

Analyze a Dior BeU customize lipstick product and make related

operational decision

Students: Tạ Ngọc Mai, Hoàng Khánh Hương, Tăng Hà Anh, Nguyễn

Phương Anh, Nguyễn Hồng Vân, Đặng Diệu Hương, Nguyễn Phương Thảo,Phạm Hoàng Khánh Linh, Nguyễn Minh Châu, Trịnh Phương Thảo.Major: Operation management

Intake: 63

Class: Quality Management and Innovation - EMQI

III PRODUCT DESIGN

1 House of Quality

2 Product document

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IV PRODUCTION PROCESS

1 Mass Customization

2 Job shop manufacturing

181818

VI STORE LAYOUT

1 Outside

2 Inside

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1 About Dior

Christian Dior SE is a holding company, which engages in the design and sale offashion accessories and beauty products It operates through following businessgroups: Christian Dior Couture, Wines & Spirits, Fashion & Leather Goods,Perfumes & Cosmetics, Watches & Jewelry, The Selective Retailing, and OtherActivities The Christian Dior Couture group designs, manufactures and sells luxuryarticles The Fashion & Leather Goods group manufactures leather handbags, shoesand small leather goods The Wines & Spirits group produces various wines andother spirits The Perfumes & Cosmetics group sells fragrances and cosmeticproducts The Watches & Jewelry group designs and sells watches The SelectiveRetailing business group comprises the Group's own-label retailing activities Thecompany was founded by Christian Dior on October 8, 1946 and is headquartered inParis, France

Dior’s emphasis on the hyper-feminine reflected in Dior’s beauty offerings DiorBeauty has expanded to include luxury makeup and skincare, something that alsostarted early in the brand’s lifetime after perfume Modern launches, such as DiorAddict Lip Glow - a sheer, almost balm-like lipstick - are updates to the originalclassic lipsticks and are still popular today

2 Introduction of service

a What is BeU?

The BeU lipstick from Dior is more than just a cosmetic product It offers customers

a chance to explore and affirm their identity through a personalized lipstick creation

experience Customers can blend the basic lipstick colors provided by Dior to create

a unique shade that suits their individual preferences Throughout the process,customers receive expert guidance on choosing the right lipstick color Once thecolor is finalized, the staff will package the lipstick, and customers can evencustomize it further by engraving their name on the stem This creates a personalizedimprint that makes the lipstick truly one-of-a-kind

b Why choose BeU?

Dior is a brand that focuses on both product quality and service quality forcustomers Understanding the insights of target customers, BeU is a uniquecombination to provide participants with an enjoyable experience and qualityproducts This product will be the first explosion in the high-fashion market forparticipants to create their own lipstick.

c Message: ‘To explore and cherish your beauty’

The complexity of society erodes people's edges, but their nature still has a desire tofind their unique beauty Dior is always ready to accompany customers on thejourney to find the unique beauty of customers

3 Operational decision

a Design and development

- Procurement of raw materials from all over the world by designers

- Style created & developed

- Prototype samples made before a collection and sent to headquarters

b Supply and manufacturing

- Fabric purchased from textile suppliers & Supplied

- Garments manufactured for retailers

- Transported to Central Warehouse

c Logistics and client deliveries

- Central warehouse to stores, distribution centers across continents

d Distribution

- 160 boutiques worldwide

- Clothing is exclusively sold in Dior stores

- Other retailers only carry licensed Dior products like eyewear,perfumes,bagsetc

- Network expanded to 165 Duty Free Shopping Outlets

- Reducing no of licenses to regain control over its products and achieveefficient management

- Electronic Data Interchange

- Allows for communication from outside and internal sources such as retailstores and factories to improve supply chain

f Supply of products

- Outsourced to QRS Corporation

- Implemented Tradeweave Retail Network

- Tradeweave Sourcing is a powerful tool to Dior to enhance its supply chainmanagement, optimizing the entire manufacture-to-delivery process incollaboration with supplies It works within Dior’s existing systems to create asolid foundation for an even more successful operation

- Through this network solution, QRS offers retailers, vendors and their tradingpartners global sourcing and logistics, merchandise planning, retailintelligence, digital photography, marketplace and a host of enabling productsand services for effective supply chain management

- Helps Dior to integrate and enhance management of outsourcing and tracking

of its imported goods

- Monitoring of various stages of the procurement process

4 Business environment analysis

4.1 Environment factors

a Political factor:

Christian Dior is a premium brand with a broad selection of products, known

to its customers simply as Political stability is crucial for a luxury brand tofunction well around the globe It must consider every political scenariobecause it works in several different countries Although operating worldwide,Christian Dior is primarily based in France Because of this situation, Dior has

to be familiar with and manage the political scenarios in every country itoperates in The corporation must take into account and closely monitor thepolitical climate in France, though, as it is the parent country of Christian DiorCouture In order to prevent dispute, the production of their haute couture and

jewelry items complies with French law

b Economic factor:

It is crucial to examine the economic aspects that can have an impact on Dior'soperations since they could influence if the company is successful in a certainnation A major factor is how much unemployment there is in the countrywhere their manufacturing facility is being built A higher unemployment rateindicates that there are more workers looking for jobs Because there will berelatively little work available compared to the company's real need, laborexpenditures may thus be kept to a minimum The loan rate is the secondaspect of a nation's economy that Dior must analyze Increasing interest rateswill make it more difficult for Dior to get loans since they will have an impact

on the company's finances Last but not least, because Christian Dior Coutureworks in several nations throughout the world, those nations' exchange rates tothe US dollar or the euro need to be favorable This knowledge gives Dior anextra benefit

c Social factor:

The change in population mix is a major advantage for fashion and luxurybrands like Christian Dior Young people today are interested in fashion andfrequently follow high-end labels like Christian Dior Even so, there are stillsome elderly people who buy luxury products for their collection to show theiridentity and financial ability The demographic divide by sex, age, and mostsignificantly, economic level, should be the main focus Money is a concernfor luxury businesses like Dior, therefore they take care to concentrate theirmarketing efforts on those customers in order to keep them

d Technological factor:

This decade has seen the use of technological technologies put fashion andluxury goods under scrutiny Christian Dior uses RFID to track their materialsand manufacturing process as well as in their stores where there is aninteractive augmented reality and virtual reality that can be experienced intheir dressing rooms

4.2 Dior's competitor analysis

Dior's competitors include Chanel Beauty, Gucci Beauty,

Customers will be free to create their own lipstick colors under the guidance and advice of Dior experts One of the notable strengths of the product is the use of high-quality ingredients

Soft creamy

lipstick

Expensive prices create classAppreciated

for safety,

when natural

mineral color

Every season, Gucci lipstick comes out with different products, suitable for the weather, and impressively trending

Weaknesses

No color

variety

Be careful when using it because it contains a lot of lead

Given the high price tag, BeU lipsticks are a relatively new product in a fiercelycompetitive market,which can pose a number of challenges

Furthermore, there may be potential

Color not

stable

High price

OperationsManagement 100% (1)

Operations and Project Management

OperationsManagement 100% (1)

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challenges in the production and supply chain for thecustomized product.

II PRODUCT DEMAND FORECAST

To find out the requirements and expectations of customers for the new BeU productline, we conducted a survey by using a questionnaire method with 11 questions Thepurpose of this survey is to test ideas, features and criteria of the BeU product line inorder to design a house of quality diagram The questionnaire has 11 questions,which are:

- How old are you ?

- Your gender is ?

- Do you usually use high-end lipsticks ?

- How much are you willing to spend on lipsticks ?

- What criteria do you base on when you buy lipsticks ?

- What is your favorite lipstick texture ?

- Do you have any difficulties finding a suitable lipstick color ?

- What kind of lipstick packaging will attract you ?

- What is your favorite level of a customized lipstick product made particularlyfor you?

- Do you want to create your own lipstick color ?

- Do you want to make your own mark on the lipstick ( engraved name ,signature ) ?

Our survey subjects are people with stable middle and high incomes The

questionnaire has received positive feedback from customers as we have received

412 responses in just 5 days

65.9% of the 412 people who took the survey are female, 14.6% is male, and 19.5%are people of the third gender It is clear that women are more likely to be interested

in using cosmetics, therefore we will focus on developing and promoting marketingcampaigns, creating the packaging as well as designing characteristics of productsspecifically for this gender In addition, with the message highlighting theuniqueness of the BeU product line, we believe that people of the third gender willalso be our potential customers

The majority of customers interested in this product line are between the ages of 18and 28 It is clear that people in this age range have a strong demand for beauty and awant to demonstrate their uniqueness In addition, people in this age group are mostlyunmarried therefore they spend a lot of time and money investing in themselves.From the above two questions, we decided that the target customers of the BeUproduct line are female customers between the ages of 18 and 28 years old Inaddition, we also focus on customers who are of the 3rd gender because they alsohave a strong desire to express their personality.

Due to their improved understanding of beauty and self-care, the majority ofconsumers today prefer to use high-end cosmetics Additionally, as people's incomesincrease, there is a rising desire for luxury beauty products This is demonstrated bythe fact that 24.4% of consumers usually use high-end cosmetics, 22% use themfrequently, and 41.5% sometimes use them

Most of the respondents to the questionnaire usually pay between 500,000 and1,500,000 VND for a lipstick More than a quarter of people surveyed are willing tospend more than 1,500,000 VND for a lipstick It is possible to spend a lot of money

on a beauty product for customers in the intermediate and high-income segments

46% customers choose their lipsticks based on their quality, 25.4% are attracted bycolors, 15.9% buy lipsticks because of the cheap price and 12.7% want a productthat has eye-catching packaging From this statistic, our product specification willfocus largely on quality and color Because most customers want a lipstick of goodquality and suitable shade

Our products will be created with matte texture because most customers preferowning a matte lipstick over other lipstick textures The number of customerschoosing matte lipstick accounted for 43.9% while creamy lipstick and tint lipsticksare only 29.3% and 14.6% respectively.

Our product offerings will depend on the requirements of our customers and aretailored to each individual customer Because the number of customers who areinterested in customizing lipstick is 80.5% and the number of customers who are nottoo interested is only about 17.1%

Packaging design is also an influence on the purchase intention of customers, so thisquestion provides information about the type of packaging that customers feelattracted to, thereby giving lipstick design in accordance with different customerpreferences (results show simple design dark tones 56.1%, simple design light tones17.1% and design with many eye catching patterns 26.8%) Therefore, on BeU'sproduct line, there will be minimalistic design packaging with luxurious colors of thecombination with black and gold.

The popularity of a lipstick made for an individual is also an important part of theBeU campaign, so the high level of customer love also partly predicts the success ofthe campaign The results illustrate that customers have a positive reaction tocustomizing their own lipstick product with the rate of “absolutely love it” are 34.1%, “like it” are 26.8% and “feel normal about it” are 34.1%

“Making your own mark” on lipstick is also a method to attract customers and it isalso the message of the Beu product line so this question helps us identify thedemand of customers for making their own mark on the lipstick 82.9% of peopleanswering the survey want to own a lipstick that have their signature or their name onthe case Therefore, we will provide the service for customers to engrave their specialsymbol.

In conclusion, our BeU product line is aimed at female customers with middle andhigh incomes In addition, customers of the 3rd gender are also our potentialcustomers because of their strong desire to express themselves The desire of ourcustomers with this product line are: suitable price, good quality, suitable color, andimpressive packaging Our products are aimed at the high-end segment with highprices ranging from 1,500,000 to 2,500,000 VND About quality and color, we willfocus on testing product ingredients and producing premium quality lipsticks.Lipstick texture is also the customer's criteria when buying a lipstick Since mostcustomers choose matte lipstick, this is also our chosen texture In addition, werealize that customers have a very high demand for a custom lipstick, so our BeUproduct line will allow customers to create their own lipstick color, while providingservices of engraving names or signatures on lipstick cases

III PRODUCT DESIGN: