Dior Pop-Up Shop

ericaashgarcia

Dior Pop-Up Shop

Stockholm, Sweden

FASM 410

Professor Alessandro Cannata

By: Reese Timberlake, Ryanne Frazier, Meagan Henry, Erica Garcia


Mission Statement

“ True Luxury requires genuine

materials and the craftsman’s

sincerity. It is only meaningful

when it respects tradition.”

- Christian Dior


Executive Summary

Christian Dior Group is a solid, affluent and highly achieved luxury brand. Under LVMH Moet Hennessy Louis

Vuitton, the Dior brand is characterized by outstanding resilience in an economic climate of such monetary

uncertainty. Christian Dior aligns itself with the principles of quality, alliance, tradition, and innovation. Dior’s market

responsiveness (especially as it pertains to retail) is highly action-oriented, thanks to their talented team ambitions.

There are many Dior Key Success Factors that contribute to this world-renowned success. These include: quality,

an entrepreneurial spirit, the strive to pass on expertise, brand exclusivity, and the drive to surpass themselves.

The value of quality is highly appreciated throughout the country of Sweden, and Christian Dior is a brand that

encompasses that. Sweden - a country of tremendous innovation rooted in folklore tradition - will prove to be a

promising environment for a brand with such entrepreneurial spirit. Dior seeks to inspire, and they have the financial

and artistic means to do so.

However, for plans of new international retailing, results are subject to various types of uncertainties that don’t have

to be accounted for in homeland-national territory. For Dior, these include changes in customer purchasing power,

the value of operation assets located abroad, economic changes that are not necessarily simultaneous from one

geographic location to another, and provisions of corporate or tax law, customs regulations or import restrictions

imposed by some countries that may penalize Dior.

Other, less fiscal risks and threats to take into account include vast cultural differences between France and

Sweden, an inability to timely identify a Swedish target market and individual target customer, and seasonality

concerns.

Fortunately, the plan to open the pop-up shop during Christmas time will serve as an excellent opportunity to cater

to such an unidentified target market’s tastes and behaviors. The Christian Dior Brand does not currently operate

anywhere in Sweden. The opportunity to open a store in the country’s capital is an exciting new opportunity.

Starting smaller with an impermanent Christmas season pop-up shop will surely add a new air of excitement and

lust after the Dior brand and their beautiful, timeless pieces. Dior has stood the test of time, through innovation,

expansion and transformation. Sweden will welcome Dior’s elegance warmly, even during such fiercely cold

months.


History

1946: Backed by Marcel Boussae, Christian Dior found his own

couture house in Montaigne, Paris.

1947: His first collection, called The New Look, is launched.

Miss Dior perfume is created. Pierre Cardin begins at

Christian Dior as the “leading man,” and remains there until 1950.

1948: The luxury ready-to-wear house is established in New York

at the corner of 5th Avenue and 57th street.

1949-1950: The licensing system is created. Dior goes on to

license all accessories. Within three years, all couture house will

copy this system.

1955: Yves Saint Laurent becomes Christian Dior’s assistant.

Launch of Dior lipstick, starting the beauty line for Dior.

1957: Christian Dior dies of a heart attack. Yves Saint Laurent is

appointed artistic director.

1960: Yves Saint Laurent leaves Dior, Mare Bohan succeeds him

and create the Slim Look in 1961.


1968: The Dior Perfume company is sold to Moet Henessey.

1973: Creation in France of the ready-to-wear fur collection. This

will then be manufactured under license in the United States,

Canada, and Japan.

1978: Bankruptcy of Marcel Boussae group, assets are

purchased by the Willot Group.

1981: Willot Group declares bankruptcy.

1984: Investors led by Bernard Arnault, takes control of former

Willot Group.

1988: Christian Dior takes a 32% equity stake in the share capital

of LVMH, stake is revised in 1994 to 41.66%.

1996: John Galliano is named creative director of Christian Dior

couture.

2001: Hedi Slimane, new creative director for the Homme line,

presents his first collection.

2012: Raf Simmons is named artistic director of the ready-towear,

Haute Couture, and accessories collections.


Dior Business Model

From Single Brand to Luxury Conglomerate

Christian Dior defined a new business model in the post-war years, establishing Ready-to-Wear boutiques

and licensing deals; his designs were coped and sold in the USA as well as Europe. Many consider Dior’s

model to be a forerunner of fast luxury fashion. Now, Dior is divided by the Couture Management Group and

the LVMH Management Group. Creative Director Raf Simons has complete freedom over Dior’s designs.

Dior Ready-to-Wear, Accessories, and Beauty have a simple yet broad Business Model. Dior sells RTW,

Accessories and Beauty mainly through Dior flagships around the world. Select Dior accessories are

sold in department stores such as Bergdorf Goodman and Barneys NY. Select Dior beauty is sold in

department stores such as Macy’s and Bloomingdales, as well as at Sephora.

Dior has also opened concept shops, such as the Dior Homme boutique on 30 Avenue Montaigne in

Paris, instilled by previous designer Hedi Slimane.

Dior makes most of their profit from licensing agreements, cosmetics, perfume, and accessories. With the

influence of couture houses and designers changing over time, only a small clientele can afford the time

and expense demanded by true couture clothing.

Therefore, Dior has adopted a business model that allows them to generate most profit off of smaller accessory

goods and beauty products via wholesale channels and Dior flagships (Basics Fashion Management 101).


Corporate Structure


Executive & Supervisory

Statutory Auditors as of June 30, 2014


Company Profile

Dior is the ultimate symbol of Elegance, Excellence and Luxury. In the 21st

Century, Dior continues to define elegance and style with the same audacity that

inspired Monsieur Dior when he launched his house.

Products: From the renowned Bar suit to the grandest evening gowns, the famous

Lady Dior bag to the Dior VIII watch and Bois de Rose jewelry, the Dior Addict

lipstick and the best selling J’adore perfume, DIOR’s creations constitute an

unmatched universe.

Christian Dior’s vision has always been ahead of its time, fascinating women with

his ability to combine utmost modernity with timeless elegance.


Current Position

Dior’s ready-to-wear accessories are on the more exclusive side in comparison to their

competitors. They provide a very limited amount of accessory goods to be distributed

through wholesale channels. Their ready-to-wear and haute couture pieces are only

distributed through Dior boutiques or upon request.

Dior sells luxury goods at a high price point. Leather goods can range from $3,000-

$6,000, while a ready-to-wear dress can typically range from $3,500-$5,000.


Company Growth

>> Grow within their directly operated boutiques

>> Base their market on demand from “aspirational” customers rather than

from the wealthy elite

>> Focus on keeping their brand at a certain level of prestige by

emphasizing quality, innovation and creativity

>> Use visual storytelling to advertise products


SWOT Analysis

Strengths

>> Strong Luxury brand name & image

>> Strong presence over numerous luxury

avenues across the world

>> Various product lines

>> Excellent branding & advertising strategies

>> Upper management

>> Support young fashion artists & designers

Weaknesses

>> Presence in a limited market

>> Low revenue & presence in Latin &

South America

>> Low brand recognition amongst men

Opportunities

Threats

>> Expanding in emerging markets

>> Expanding in other regions

>> Focusing on green initiatives

>> Investing in the male market

>> Tough, existent competition

>> Increasing number of new designers in luxury

fashion

>> Animal rights groups


Brand Identity Matrix

>> Prestigious

>> Exemplifies fashionable fabulousness

>> Internationally pleasing

>> Visually impacting

>> Timeless aesthetic

>> Vibrant color and design

Physical

Personality

>> City Woman

>> Upscale

>> Affluent

>> Chic

>> Loyalty proves satisfaction

>> Rewarding

>> Personalized targeting

>> Engaging relationships

>> Customers trust Dior

>> Glamourous products

>> Depicts luxury

>> Elegant sophistication

>> Feminine

>> Exclusive

>> Genuine materials and craft

Relationship

Reflection

Culture

Self Projection

>> French

>> Luxurious elegance

>> Vision of beauty and

happiness

>> Respects tradition

>> Creative originality

>> She feels beautiful when wearing Dior

>> She feels of high class

>> Her clothing makes a statement

>> She feels a bond between her and

the product


Distribution

Dior has distribution in 6 continents, 44 countries, totaling 146 doors.

All accessories are under licensing agreement as well as the ready-to-wear collection,

which is manufactured under license in the United States, Canada, and

Japan.


Annual Spending Figures


Dior Advertising

Dior puts exceptional effort into strategizing the way they advertise. They strategize their advertising

methods through their campaigns, digital magazine, YouTube channel, IPhone app, and their social

media sites; Facebook, Instagram, and Twitter.

When it comes to campaigning, Dior pursues in-style celebrities to model their latest and greatest

achievements at the time. In their latest campaign, “Be Dior,” Dior decided to use twenty four year old

actress, Jennifer Lawrence. In the campaign shot by photographer Paolo Roversi, Lawrence poses in

sleek Dior dresses with minimal makeup to capture the “natural aura of Jennifer Lawrence” (Kinonen).

Dior features these campaigns within all of their advertising methods. Dior’s magazine and iPhone app

brings the latest and the best ranging from runway shows, make-up items, perfumes, skincare products,

ready-to-wear collections, and watches.

Direct Marketing Initiatives

Dior’s latest direct marketing initiative includes an interactive mobile-to-desktop tactic between

their website and iPhone app. This initiative works by entering a device-specific four-digit

code found on their mobile website for WonDiorland. By using this tactic the Dior consumer

can come across further content refined from the brand’s latest fragrance, Dior addict. This

direct marketing initiative coordinates with Dior’s developing approach for their fragrance

launch and not only encourages consumer interaction within the brand’s online platforms but

also accommodates them with exclusive Dior content using a community based campaign

(Barkho).


Campaigns


Market Analysis

Change took place in the Swedish fashion

industry around the start of the Millenium.

A new generation of architects, chefs, and

designers no longer took inspiration from other

countries abroad, but instead looked in their

own backyard.

The Swedish Industry today is focusing on

sustainability, functionality and affordability,

and is thriving on their blogging culture.

By analyzing our target consumer we were

able to identify key industry factors, and key

players in Sweden that support this new

movement.


P.E.S.T.E.L.

Political

PROS

- The Government of the Kingdom of Sweden

Operating as a collegial body

with collective responsibility

- Riksdag ruled by Prime Minister Kjell Stefan

Löfvén

- Political parties are stable

Five of current seven have been

represented in Riksdag since 1921

- Job stability and security are highly valued

70 per cent of Swedish workers belong to

a union, making Sweden one of the most

unionized countries in the world

CONS

- Added tax value is 25%

Technological

PROS

- Sweden has the most digitally connected

economy in the world, and its

forward-thinking culture fosters

innovation

- Known for innovative thinking and design;

birthplace of pioneer such as H&M,

Spotify, Skype, Electrolux, and Ikea

CONS

- Engineering products comprise more than half of

Sweden’s exports – nearly 54 percent.

Electronic equipment, machinery and

motor vehicles are the most important

goods in this category

Economic

PROS

- The average household disposable income per

capita is 27,456 USD

- The inflation rate in Sweden was recorded at

-0.30 percent in December of 2014

CONS

- There is a considerable gap between richest and

poorest; the top 20% of the population

earn more than four times as much as the

bottom 20%

- 1 Swedish krona amounts to $0.12 USD

The Swedish central bank has cut its main

interest rate to zero in an attempt to

combat deflation. The cut of 0.25% was

bigger than expected, and led to a fall in

the krona against the dollar and the euro

Environmental

PROS

- Swedes avoid plastic as much as possible, all

stores will provide paper bags or boxes

- Sweden is in the front line as the world embarks

on a shift to more sustainable energy

systems

- In 2005, Sweden introduced a special five-year

program designed to boost energy

efficiency in industry.

- Huge investments in energy consumption

- There are over 3,000 wind turbines in Sweden

for wind power

- Allemanstratten: gives everyone the right to

enjoy Swedish outdoors. This is written

into the Swedish Constitution

Social

PROS

- Swedish etiquette involves the ritual

enactment of equality

- Value “Lagom”: avoid extremes in reference to

social behavior, everything in

moderation

- Participation in the arts is heavily promoted

through many cultural centers, public

libraries, open shopping streets, and

communal music schools give citizens

an opportunity to exercise their creativity

CONS

- Stores and shops close early, and many in

businesses close in July for a four to six

week holiday period

- Only work until 5 pm

Legal

PROS

- Swedish Consumer Agency with a National

Board for Consumer Complaints located in

Stockholm

- Sweden is part of the EU, therefore most goods

can be bought from other countries with

out restrictions, although VAT and duty

may still apply

- Heavy emphasis on gender equality at home and

in the work place

- Part of the European Agency for Health and

Safety at Work

- The Swedish Work Environment Authority


Sweden: Industry Analysis

The Swedish fashion industry continues to grow with total sales amounting to 237 billion kronor

in 2013, exports counting for 62% of this figure. (Boost for Swedish Fashion Industry Abroad)

Sweden is an export dependent country, with more than half of what Sweden produces being

exports. In 2011 sales totaled SEK 206 billion, however of this number only 83 billion are sold

in the domestic market. Although the fashion industry in Sweden continues to grow in size,

so does the amount of exports. Exports in Sweden attribute to 60% of the sales, while 40%

remain domestic. The high ratio of exports to the domestic market is primarily due to H&M.

The Swedish global company exports approximately 94% of sales. (Portnoff)

Including H&M

Excluding H&M


Stockholm

Stockholm is the capital of Sweden and the most populous city in the Nordic region with a

total population of 2.2 million in the metropolitan area. Stockholm is the cultural, political, and

economic center of Sweden, encompassing over one third of the country’s GDP.

In recent years tourism has played a big part in Stockholm sales. Stockholm County is

ranked as the 10th largest visitor destination in Europe with over 10 million commercial

overnight stays per year. (Welcome to the Capital of Scandinavia)


Key Players

Stockholm houses some of Sweden’s most stylish shops

and boutiques showcasing innovative Scandanavian

design. Swedish culture is very tradition based and therefore

Stockholm has lots of vintage fashion and antique stores. In

terms of luxury brands and designers Stockholm has

high-end department stores as well as retailers that carry

designer brands. Brick and mortar

designer shops are less frequent because the antique stores

or traditional Swedish boutiques stand on there own, rather

than the luxury designers.

Anna Holtblad - Known as one of the pioneers of

contemporary Swedish fashion. Over the past two decades

Holtblad has stayed true to her idea of timeless Scandinavian

fashion. Her price ranges from a loose fitting t-shirt at SEK

766 to a Mohair blend coat at SEK 4,196.


Nathalie Schuterman - An exclusive boutique that

stocks high-end international designers such as: 3.1

Philip Lim, Bottega Veneta, Miu Miu and Christian

Louboutin.

Nordiska Kompaniet - A luxury department store

that has all the must-have Scandinavian fashion

pieces as well as international designers.

Sturegallerian - One of the most exclusive shopping

malls in Sweden. Sturegallerian has over 50 luxury

boutiques and gourmet restaurants. It’s a favorite of

Stockholm’s elite and royalty is often seem shopping

here.


Functionality & Affordability

The fashion industry in Sweden has always been ahead of its time. When designers were still putting large logos on garments

in the 1990’s Sweden began producing functional everyday wear, making Swedish fashion cool. Brands like Acne and Cheap

Monday came on the scene with huge popularity because they created clothing the young generation could afford.

Michael Elmenbeck, one of the curators and founders of Bon Magazine stated:

“We wanted fashion we could afford. I guess it is part of our socialist heritage. Just look at H&M and IKEA, it has shaped us.”

H & M is still synonymous with Swedish fashion today because of the functional, trendy, and affordable pieces it offers. (Dagliden)

Sustainability

Sustainability has become very important to Swedish fashion designers.

Gudren Sjoden is a pioneer of sustainable fashion focusing on using textiles and natural materials that fit all ages and figures.

Shoe Company, Swedish Hasbeens, entered the market in 2006 producing sustainable handmade collections in small factories,

emphasizing respect for people and the environment. (Swedish Fashion From Catwalk to Sidewalk)

Blogging

Yvan Rodic, a regular attendee of Stockholm Fashion Week, says the country’s blogging culture contributed to its global success.

“Sweden is a pioneering country when it comes to blogging,” he says. “In the last decade, people from around the world have

started looking at Swedish blogs for inspiration -- mostly to enjoy the photos since they don’t necessarily understand the language.”

Readers have then been educated on the brands and how to create outfits without spending a fortune. “I think this was a perfect

match for the world of blogging since it promotes individuality and helped Sweden become a mini phenomenon in fashion,” Rodic

says. (Stenman)


Consumer Demographic

Being that our Dior pop up shop is being held in Sweden, we wanted

to focus on the luxurious Swedes born in the later millennial generation,

also known as Generation x consumers, and the baby boomers as our

target customers. The Sweden population is estimated to be 9,723,809

people with 1, 385,000 of those people making up the Stockholm

population. 50.9% of the Sweden population is between the ages of

25 to 64. The median age in Sweden is 41 years old with a population

growth rate of 0.79% (Sweden).

As for the baby boomer generation, 77 million people were born

between 1946 and 1964. This baby boomer age group is greater in

terms of size and percent of the population in the U.S. for the first time

ever. The 55 and over age group authorizes more than three-fourths

of wealth. The boomer median family net worth is three times higher

than younger generations and they have an average annual disposable

income of $24,000. Baby boomers outspend all other generations by

an estimated $400 billion dollars each year on consumer goods and

services (Resources). Generation x adults range in age from 30-44

years old. In 2009, the total population of this generation was a total of

49,660,301 people. The median household income for the generation

x consumer is $73,601 between the ages of 30 to 34, while the

median household income for ages 35 to 39 and ages 40 to 44 range

from $81,107 and $84,278 (Demographic). 33% of consumers believe

that a household income of more than $250,000 is what is necessary

to consider themselves as “wealthy” consumers (Who). Consumers,

who make $200,000 annually, spent $141 per month on apparel items

for themselves. 60,000,000 consumers earn more than $100,000 a

year while 80,000,000 consumers earn less than that. According to

the Cotton Incorporated Lifestyle Monitor Survey, 23% of consumers

bought luxury apparel in 2014 (Keeping).

For our pop up shop in Stockholm, Sweden, we at Dior believe

that these demographics fit our consumer and believe that our consumer

will help constitute a successful pop up shop.

Demographics

>>> Male

>>> 40 years old

>>> Physician

>>> Annual income of $207,000

Psychographics

>>> Educated, Admirable,

Sophisticated.

Behavior

>>> Traveler, Reader.

>>> Enjoys shopping for his wife

and making

her happy with designer products.

Has great taste.


Meet Angelina & Ella

Demographics

>>> Female

>>> 28 years old

>>> Fashion Blogger/Swedish Socialite

>>> Annual income of $120,000

Psychographics

>>> Educated, Sophisticated,

Admirable.

Behavior

>>> Extra ordinary mixture of

romanticism, feminism, and sense

of modernity.

>>> Traveler, Interested in all things art.

Fashion forward.

Demographics

>>> Female

>>> 34 years old

>>> Accountant

>>> Annual income of $140,000

Psychographics

>>> Educated, Elegant, Mature.

Behavior

>>> Avid shopper, Loves dining with

friends.

>>> Takes work extremely serious.

Fashion

forward.


Meet Alva & Denisa

Demographics

>>> Female

>>> 37 years old

>>> Software Developer

>>> Annual income of $185,000

Psychographics

>>> Educated, Admirable, Selfless.

Behavior

>>> Traveler, Reader, Dog Lover.

>>> Enjoys treating her family and

friends

to great gifts.

Demographics

>>> Female

>>> 41 years old

>>> Lawyer

>>> Annual income of $190,000

Psychographics

>>> Educated, Sophisticated,

Admirable.

Behavior

>>> Traveler, Avid Shopper, Reader.

>>>Takes work extremely serious,

Fashion

forward, Interested in the fine arts.


Consumer Lifestyle


Stockholm Consumer Lifestyles

Sweden continues to lead in Western

Europe when adopting the internet.

When looking towards the fashion

industry this has put brick and mortar

stores under an increasing amount of

pressure because internet retailing is

flourishing. Consumers are engaging

in “showrooming” - where they can

inspect a product in store before

purchasing later online.

Additionally Sweden is leading the

world in “M-Commerce” (Mobile

Commerce). The Economist

newspaper noted that “97% of Swedish mobile phone users could pay for goods at participating

businesses.” Sweden has shown that m-commerce can be safe and easy, something that has previously

prevented it’s adoption in the past.

This has also lead swedes to go completely cashless. The Swedish consumer is a huge fan of payment

cards, so much so that large bank branches and even some retailers are completely cashless. In 2010

shops have been prohibited from adding a surcharge for use of a payment card which has encouraged this

trend. Some worry that this will leave the less fortunate consumers without a payment card behind, however

with 95% of Swedish consumers having a bank account this is not likely. (Consumer Lifestyles in Sweden)


Consumer Psychographic

Our Consumer is Geographically located in Stockholm while purchasing our products. They are also international cultural travelers from

all over the world.

Our Dior consumer has many Interests. They are an avid shopper, reader, fashion blogger, and traveler. They value art and fashion as

a hobby, making their purchasing motives fashion forward.

Dior makes our customers Opinions & Beliefs show by wearing the clothing. They enjoy designer and luxury items where price

sensitivity does not exist. They believe that Dior makes a statement, it’s sophisticated, and projects a confident self-image.

The consumer wearing Dior has many quality Personality traits. They are admirable, elegant, educated, mature, and sophisticated.

These customers are loyal to the brand, and they buy different items across the product range.

Behavioral Information

Our customer grew up in the age of advancing technology. The Specific Technology Usage of our consumer is growing. As a millennial,

they are constantly using these devices in their favor for shopping, blogging, and social media purposes. They are a social generation

who socialized while consuming products, media and services. It has been predicted that in 2015, millennial annual spending will

grow to $1.4 trillion by 2020, representing 30% of all retail sales. Online shopping, shopping from mobile devices, and preferences

for “new entries to the marketplace” over established brands, will continue to grow and challenge existing retailers (The Year of the

Millennial 2015 Predictions).

The Shopping Habits of our consumer is not only growing on an e-commerce basis, but also in brick-and-mortar stores. Studies have

shown that millennial’s prefer tangible products. Companies that offer an online and physical location provide millennial’s with what

they want, and when they want it.

In Stockholm, Sweden, consumers purchase products based off of sufficient information stating if their purchase will be a reasonable

necessity. Since they’re buying limited products and consuming less, the value of the purchase is important to them. This key trait

gives luxury brands like Dior an advantage over other businesses because they offer the high quality, one of a kind products Swedish

customers are looking for.


Sales Potential

The biggest selling period in Stockholm is between Christmas and New Years. Mellandagarn, which means

“Middle Days,” is the best shopping week in all of Sweden. Stores drop their prices significantly to get rid of

excess stock after Christmas. During this time signs are everywhere saying, “REA!” meaning sale in Swedish,

alerting consumers of the low prices. (Naughton)

Estimating Competition

Dior’s pop-up shop will be placed in the exclusive shopping district in Stockholm dating back to 1855.

Bibliotekstan is home to international and Scandinavian high-end design boutiques. Although this will drive

more foot traffic into our store, this also increases our competition. Our direct competitors will be neighboring

shops: Louis Vuitton, Prada, Burberry, Michael Kors, Marc by Marc Jacobs, and Stella McCartney.

Area Attractions

A great place to shop luxury designers is in Bibliotekstan. Stockholm’s most affluent shopping district is found

in the downtown area named Bibliotekstan. This area is home to Scandinavian luxury designers as well as

international boutiques. This area will draw in a lot of foot traffic during the holiday season for natives as well

as tourists.

The area is very well organized with the positioning of the international and Scandinavian luxury designers,

sportswear, accessories, restaurants, and cafes. The city also offers many tours of the location to help

consumers navigate the area and get the most out of their shopping day.


Area Factors

With an expected population rise of 200,000 inhabitants between 2000 and 2030, Stockholm is committed to creating a sustainable

community and reducing CO2 emissions to zero by 2050.

>> Focusing urban development near transit stations has been a priority in Stockholm. Along these stations, the city is broken up into many

compact, self-sufficient districts that contain homes and a wide variety of businesses. These districts are mixed-use, with workplaces and shops

built close to residential areas.

Pedestrian Traffic: Over the last 15 years, Stockholm has cut pedestrian deaths by 31% and overall traffic deaths by 45%. Last year, Stockholm

city suffered only six traffic deaths, or about 1 per 150,000 residents.

>> The congestion charge has reduced traffic in the city center by 15%-20% or approximately 100,000 trips. Travel times have reduced 30-50%.

CO2 emissions have, however, decreased by far less since there has been a slight increase in the suburbs. (Eco Mobility)

Public Transportation: Stockholm’s public transit network consists of three metro lines, three shuttle trains, two local train connection lines, three

light rail lines, 17 bus routes, and an inner-city boat. A single ticket system is valid for all systems throughout the city. The city has coordinated

schedules between all modes, to minimize waiting time. The central train station is the hub where all public transport lines meet.

- Car journeys by county residents across the charging zone have declined, and journeys by public transport have increased.

- Stockholm is often praised for its comfortable, efficient and safe transportation.

>> Stockholders are always heedful of their beautiful surroundings, and this has led to many inner city buses running on Eco-friendly fuels such

as ethanol. The Stockholm underground is also known as the world’s longest art gallery as so many of its stations are adorned with the works of

different artists. (Eco Mobility)

Vehicular Transportation / Parking: Stockholm Parking has 22 park-and-ride facilities strategically placed around Stockholm outside of the

congestion fee toll area. These facilities are easy to find and rather inexpensive to use – the parking fee for the whole day is usually only 20SEK.

You can find all the information you need about our park-and ride facilities by going on their website. (Stockholder)

Infrastructure: Sweden possesses a modern transportation network, regarded as a vital component of equitable wealth distribution. Sweden’s

energy sector is strong, with energy production and usage per capita being among the highest in Europe. Sweden is among the world’s leaders

in information technology, computer hardware, software, and services. It has the highest number of phone lines (combined fixed and mobile) per

capita, as well as the highest percentage of Internet users in the world. (Eco Mobility)


Human Resources

>> Sweden has hundreds of thousands of the most luxurious, innovative architecture and contacting firms in the world.

>> For Swedes, sustainability is not just a construction initiative, but it is a way of life.

>> By 2022, a completely new city will have grown up around Stockholm Arlanda Airport. The goal is to create an environmental technology

center to bring together research, innovation and established companies in the field of sustainability and environmental technology. The environmental

profile of this new district is based on the extensive climate work already being carried out at Arland. (Sweden.se)

Legal Issues

>> As the European Union is a Customs Union, goods can be bought from other member countries without restrictions - although VAT and

excise duty can still apply.

>> Sweden is a member of the WTO

>> Swedish Consumer Agency is a Swedish Government Agency that answers to the Ministry of Agriculture, Food, and all Consumer Affairs

with a National Board for consumer Complaints (located in Stockholm). Its main task is to issue non-binding recommendations on the resolution

of disputes between consumers and business operators. A person can, free of charge, file complaints against a company. If the company does

not follow the recommendation from ARN, the consumer has the possibility to take the matter to court. (Sweden.se)


Strategic Process Plan


Beauty Product Plan

Style # of Styles Color Retail Price Style # of Styles Color Retail Price

Star

Kew Gardens

Coquette

Diorette

5

Spring

Les Rouge

296

Primerose

Milly

Park Avenue

Nuit Rose

Ivory

Light Beige

1

Medium Beige

Honey Beige

448

Dark Beige

Mocha

Peach

Rose Chery

3 Lady Red 363

Lucky Pink

Star Fuchsia

Navy

3

Nude Pink

Amber

507

Pink

Golden Honey

1

Amber

Cinnamon

457

2

Brown

Black

Lady

Incognito

Junon

1

Rose

Metal

228

Nuit

Lucky

2

n/a

3/8/15

1015


Clothing & Accessories Product Plan

Style # of Styles Color Sizes Retail Price

White

S, M, L

Black

S, M, L

4

Green

S, M L

42331 SEK

Dresses

Brown

Gold

S, M, L

Black Gold

5 Silver Black

one size 4274.43 SEK

Silver Black Round

Sunglasses

Black Tortoiseshell

Black

Red

5 Green

one size

White

29260.70 SEK

Bags

Brown

Black 36, 37, 38, 39, 40

7

Red 36, 37, 38, 39, 40

Grey 36, 37, 38, 39, 40

Brown 37, 38, 39

Navy and Black 37, 38, 39

Purple and Brown 37, 38, 39

8466.20 SEK

Shoes

Turquoise and Brown 37, 38, 39


Floor Plan


Design of Physical Space


Details of Physical Space

The Seasonal Dior pop-up shops market image is consistent with Dior’s image and strategy, while also

enhancing customer experience with our Christmas themed space. Since this is a holiday pop-up shop, the

design of the space invites customers inside with an extravagant facade, visually appealing open box window

displays, and an entry way that leads through a Dior Christmas art display that provides customers with the

ultimate Christmas shopping experience.

Our store atmosphere is lightly enhanced with Dior scents, and soft Swedish holiday music that offers familiarity

with the brand to connect with the customer. The interior space is designed with visual customization in mind,

focusing on appropriate light fixtures, furniture, flooring materials, and decor that flows with our Christmas

aesthetic. The physicality and environment of this retail space stimulates each customer by providing a tactile,

sophisticated interior where every object adds a purposeful touch.

The floor plan of Dior’s pop-up shop is designed for a ground level space in the luxurious Stockholm area

Bibliotekstan. Customers must venture through the opulent entrance that then leads them to the open floor

plan where merchandise and customer service departments are located. The free-flow layout allows customer

traffic to flow in an unstructured manner, although merchandise is strategically categorized with appropriate

space for maximum product exposure and customer convenience. Merchandise is presented using an ideaoriented

presentation technique. This plan offers flexibility to our customers while also encourages impulse

buying and browsing.

The Safety, Security, and Asset Protection is assessed by incorporating security personnel at the entrance.

The construction of the space took the knowledge of deviant behavior in mind by designing the entire space

to be seen visually, at all times. The space in the store is limited, and only a small amount of merchandise

is being sold which makes theft less of a factor. Bibliotekstan also implements appropriate security systems

within all of their retail spaces.


Communication & Promotional Plan

Media

Dior Social Media

Pre-Launch

Launch

Post Launch

September November December January Feb. 1-7 Feb. 8-14

Personalized promotional

gifts (invitation to cocktail party

included) for important personnel

Christmas giveaway with purchase

Bloggers reviews and photo shoots

of Dior pop-up shop venue and

products purchased

Outdoor promotion

(public transportation

advertisement's)

Advertising in magazines

Dior Christmas video

Opening Cocktail Party (Last night

of Pre-Launch only)

**Refer to Appendix for written rational

**Refer to Cost Sheet for Promotional pricing


Budget for Execution

Income Statement:

Interior & Exterior:

Month 1 Month 2

Revenue SEK 1,626,889.60 SEK 4,880,668.80

Total Revenue SEK

6,507,558.40

Cogs SEK 195,226.75 SEK 585,680.26

Build of Space SEK

425,661.00

Interior Fixtures SEK

292,084.00

Storing SEK 1,006.00 SEK 1,006.00

Wages SEK 151,255.00 SEK 151,255.00

Rent and Utilities SEK 320,000.00 SEK 320,000.00

Logistics

SEK

101,506.99

Janitorial SEK 13,596.00 SEK 13,596.00

Promotional Activites SEK

3,724,476.33

Legal and Permits SEK

92,000.00

Flight (2)

Hotel (2)

Ipad (4)

SEK

SEK

SEK

30,570.00

334,800.00

16,960.00

Total Expenses SEK

6,770,679.33

Total Profit

SEK

(263,120.93)

Interior Fixtures Unit Costs Units Cost

Sofa SEK 78,924.00 1 SEK 78,924.00

Table Lamp SEK 2,300.00 2 SEK 4,600.00

Chandelier SEK 4,550.00 1 SEK 4,550.00

Chair SEK 90,585.00 2 SEK 181,170.00

Candlestick SEK 395.00 1 SEK 395.00

Clock SEK 3,325.00 1 SEK 3,325.00

Decorative Ornament SEK 2,750.00 1 SEK 2,750.00

Table SEK 7,735.00 2 SEK 15,470.00

Pillow SEK 450.00 2 SEK 900.00

Total Costs

SEK 292,084.00


Financial Plan

PERCENTAGE OF CONVERSION 0.1 0.2

LOCATION FOOT TRAFFIC PER DAY Month 1 Month 2

1000 Footfall 2000 4000

Conv. % 0.02 0.03

Avr.Basket SEK 40,672.24 SEK

40,672.24

TOT.REV

TOT.REV

Month 1 Month 2

SEK 1,626,889.60 SEK 4,880,668.80 $ 6,507,558.40

(MKUP 60%) COGS SEK 650,755.84 SEK 1,952,267.52 SEK 2,603,023.36

PRODUCT % Month 1 Month 2 COGS SEK 2,603,023.36

Dress 12% SEK 195,226.75 SEK 585,680.26

Bag 10% SEK 162,688.96 SEK 488,066.88

Shoe 8% SEK 130,151.17 SEK 390,453.50

Basic Sunglasses 7% SEK 113,882.27 SEK 341,646.82

Scarves 7% SEK 113,882.27 SEK 341,646.82

Gloves 2 6% SEK 97,613.38 SEK 292,840.13

Necklace 10% SEK 162,688.96 SEK 488,066.88

Earrings 5% SEK 81,344.48 SEK 244,033.44

Bracelet 5% SEK 81,344.48 SEK 244,033.44

Rings 3% SEK 48,806.69 SEK 146,420.06

Foundation 2.00% SEK 32,537.79 SEK

97,613.38

Lipstick 5.00% SEK 81,344.48 SEK 244,033.44

Blush 2.00% SEK 32,537.79 SEK

97,613.38

Eyeshadow 2.00% SEK 32,537.79 SEK

97,613.38

Eyeliner 4.00% SEK 65,075.58 SEK 195,226.75

Nailpolish 2.00% SEK 32,537.79 SEK

97,613.38

Perfume 7.00% SEK 113,882.27 SEK 341,646.82

Bronzer 3.00% SEK 48,806.69 SEK 146,420.06

100%

Month 1 Month 2

AVR.PRICE SEK AVR.UNIT AVR.UNIT

Dress SEK 42,300.00

5 14

Bag SEK 29,610.00

5 16

Shoe SEK 8,460.00

15 46

Basic Sunglasses SEK 3,807.00

30 90

Scarves SEK 4,230.00

27 81

Gloves 2 SEK 5,922.00

16 49

Necklace SEK 126,900.00

1 4

Earrings SEK 46,530.00

2 5

Bracelet SEK 84,600.00

1 3

Rings SEK 38,070.00

1 4

Foundation SEK 524.52

62 186

Lipstick SEK 296.10

275 824

Blush SEK 372.24

87 262

Eyeshadow SEK 524.52

62 186

Eyeliner SEK 245.34

265 796

Nailpolish SEK 228.42

142 427

Perfume SEK 1,015.20

112 337

Bronzer SEK 473.76

103 309


Appendix


Written Rational (Communication & Promotional Plan)

The pre-launch for Dior’s Stockholm holiday pop-up begins two months prior to the opening of the store. During this time, Dior will be advertising

the shop on their social media (Facebook, Instagram, Twitter, E-commerce, smart phone app, and Blog.) There will be a short promotional video

made during our pre-launch that will be posted throughout the entire duration of our pop-up through various social media networks. In addition

to using social media, advertisements will also be placed in one of the most commonly read magazine in Sweden - Sweden’s ELLE Magazine

during September, and November (ELLE Magazine Advertising.)

Based off of our customers daily transportation activities, there will be outdoor promotion on the outside of local public buses during our prelaunch

as well as while the store is open to invite any gift buyers (Bus Advertising Prices and options.)

There will be a personalized promotional gift basket of Dior makeup products sent to important personnel including: elite customers, magazine

editors, high profile bloggers, and celebrities in the surrounding area. Within the basket, there will be an invitation to the Grand Opening cocktail

party which will be held the night before opening day in December.

All of our customers will receive a limited addition Dior Christmas Ornament with their purchase.

**Refer to Income Statement and Cost Sheet for ROI

Written Rational (Financial Analysis)

To begin, we determined an average of 1000 footfall per day based on the area we are located in. This gave us a number of 2000 in foot traffic

for month one, and 4000 in month two. The first month has a lower conversion rate of only 10% of total footfall per day in the area because

consumers are still learning about the boutique, whereas in month two we have a 20% conversion rate because the consumers are more aware of

our location and shop. Additionally we will be open 20 days out of each month, so the final equation used to determine the foot traffic per month

was total foot traffic per day in the area (1000) multiplied by 20 (days we are open in a month) multiplied by the conversion rate.

We came about our average basket figure from first determining average prices of our products sold, and then determining on average what

consumers would buy day to day. For example we have our wealthier consumer who is buying Dior’s high end jewelry, and then we also have the

consumer on a budget who might just stop in to buy Dior’s perfume or a lipstick. From this analysis we determined 10 baskets (see appendix)

and then found the average price of all 10 baskets. After finding our basket pricing we found our total monthly revenues from multiplying our dayto-day

footfall (2000 for month one) by a conversion rate, and then by the average basket per month. Again the conversion rate was higher in the

second month because consumers are more aware of the boutique.

Lastly, we found our cost of goods sold by multiplying our revenue by 40% because our markup is at 60%.

After finding the pricing of our goods, revenues, and percentages per product category, we dove into other costs we might need. This includes

but is not limited to: hotel and air fare, legal permits, iPads for sales associates, interior fixtures, rent, wages, and logistics. Please see the

appendix for all reasoning and citations for our pricing.


Pricing Information

Rent of Space:

Building & Design of Space:

Technology:

Storing:


Pricing Information

Basket Pricing:

Basket 1

Dress $ 5,000.00 $ 5,000.00

Basket 2

Bag $ 3,500.00 $ 3,500.00

Basket 3

Shoes $ 1,000.00 $ 1,000.00

Basket 4

Sunglasses $ 450.00 $ 450.00

Basket 5

Necklace $ 15,000.00 $ 15,000.00

Basket 6

Earrings $ 5,500.00 $ 6,000.00

Scarve $

500.00

Basket 7

Bag $ 3,500.00 $ 13,500.00

Bracelet $ 10,000.00

Basket 8

Foundation $ 62.00 $ 141.00

Lipstick $

35.00

Blush $

44.00

Basket 9

Perfume $ 120.00 $ 149.00

Eyeliner $

29.00

Basket 10

Ring $ 4,500.00 $ 4,500.00

Sales Associate Salary:

Employees Per Hour Per Day Per Week Per Month

5 $12.00 $96.00 $480.00 $1,920.00

Total $9,600.00

Managers

2 n/a n/a n/a $4,100.00

Total $8,200.00

Final Total $17,800.00

Final SEK SEK 151,255.00

Janitorial Per Hour Per Day Per Week Per Month

2 $10.00 $80.00 $400.00 $1,600.00

Final SEK SEK 13,596.00

Logistics Pricing:

AVR.BASKET $ 4,924.00

AVR.BASKET SEK 40,672.24


Interior Decor


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