Case Study Final

Presentation
Team 2: Elizabeth Sheina, Dai T. T. Bui, Helene Dann, Luo Yuhan, Kawasaki Eri
Research Questions
Research Questions
1. What behavior should a company choose for the local market (in this case is Dior
and the Chinese market) - localization or standardization?
2. What is cultural appropriation? Why is there such a big reaction on the Chinese
Internet?
3. Does the Dior scandal violate organizational culture?
4. How can Dior manage issues in order to prevent scandals in the future?
5. Which method should a company choose defensive or proactive? (in terms of
conflict resolution)?
 1. What behavior should a company choose - localization or
standardization?
The key advantages of standardization in global business according to (Theodosiou &
Leonidou, 2003)

1. Significant economies of scale

2. Consistent corporate/brand image
3. Reduced managerial complexity
 1. What behavior should a company choose - localization or
standardization?
The benefits of adaptation in global business according to (Theodosiou & Leonidou,
2003)

1. Meeting diverse consumer needs

2. Adapting to local commercial infrastructure
3. Respecting cultural and traditional differences
4. Compliance with laws and regulations
5. Leveraging technological development
6. Long-term profitability through sales growth
 1. What behavior should a company choose - localization or
standardization?

However, a more thorough analysis implies that what leads to

superior performance is not the adoption of marketing strategy
standardization or adaptation, but the achievement of an
appropriate “coalignment” or “fit” between international marketing
strategy and the context in which this strategy is implemented,
whether this is environmental, organizational, or managerial
(Cavusgil & Zou, 1994).
☞It can be understood that the effectiveness of a marketing strategy,
whether standardized or adapted, depends on how well it matches the
unique conditions of the foreign market in which the firm operates.
 1. What behavior should a company choose - localization or
standardization?
(Akgün, Keskin & Ayar, 2014) found that:
● Price & Place elements of the market mix are the most adapted elements.
● While the product concept, color & packet in the product mix are adapted.
● The label & brand name are standardized.
● The promotion element of the marketing mix is the most standardized element.
(Theodosiou & Leonidou, 2002) found that:
● Product-related issues exhibited the most standardization
Of these, product attributes, namely quality, design, and feature, were the least
adapted. The same was also true with branding decisions.
● Packaging was slightly more adapted: material, design, size,...
● Information & language requirements were responsible for some labeling
adaptations.
● Promotion exhibited slightly above-average levels of adaptation in foreign
markets.
 1. What behavior should a company choose - localization or
standardization?

The tendency for consumers in China to purchase lux goods could be enhanced if they
learn the stories of the lux brands, understand the design concepts behind the lux good
and agree with the ideas that lux products convey to the society (Zhang & Cude, 2018).
 1. What behavior should a company choose - localization or
standardization?
Considering the information provided, the marketing strategy for Dior in the China market
should

1. Storytelling and Brand Communication: should emphasize storytelling and communicate the rich
history and heritage of the brand to Chinese consumers. This can help create an emotional connection and
enhance the tendency for consumers to purchase luxury goods.
2. Design Concepts and Product Knowledge: should educate Chinese consumers about the design
concepts behind their luxury goods. By highlighting the craftsmanship, creativity, and innovation in their
products, Dior can enhance the perception of their brand and products.
3. Social and Cultural Relevance: should align its brand and products with ideas that resonate
positively with Chinese society. By conveying messages that are in line with Chinese values, aspirations, and
cultural trends, Dior can strengthen its appeal to Chinese consumers.
 2. Cultural Appropriation
The Concept of Cultural Appropriation

・Cultural appropriation is the act of borrowing, adopting or imitating elements from a

culture without respecting or ignoring the history, context and meaning of that culture.

・which involves taking elements of a culture's symbols, customs, dress, art, music, etc.,
from the original culture and using or displaying them in another culture.

・This concept is closely related to cultural heritage, and it first appeared in the
International Law Articles in 1907.

Cultural Appropriation in the Digital Context: A Comparative Study Between Two Fashion Cases July 2020.In book: HCI in Business, Government
and Organizations (pp.504-520)
 2. Cultural Appropriation
The Concept of Cultural Appropriation

・The act of reusing tangible or intangible common assets belonging to a minority

culture in a different context by members of the dominant culture without authorization,
recognition, or compensation from the minority culture holder.

・The role between the dominant culture and the minority culture is emphasized

・Define whether a cultural element has been appropriated and the status of the
appropriated culture

・The reuse of these elements without authorization and compensation is also part of
cultural appropriation.
Cultural Appropriation in the Digital Context: A Comparative Study Between Two Fashion Cases July 2020.In book: HCI in Business,
Government and Organizations (pp.504-520)
2. Cultural Appropriation
The Concept of Cultural Appropriation

・Humanity has been exchanging cultural elements for many years.

・Cultural appropriation dating back to the Age of Enlightenment.

・Europe's intellectual, political and economic dominance.

・Various types of tangible cultural heritage have been plundered from indigenous
peoples

・Cultural appropriation has a deeper and more sensitive meaning for those minorities
whose culture has been misused.
 2. Cultural Appropriation
Hallmark Dior silhouette

https://edition.cnn.com/style/article/dior-cultural-appropriation-accusations-chinese-skirt/index.html
 2. Cultural Appropriation
The Concept of Cultural Appropriation

https://youtu.be/KW8Kju6hVow
2. Cultural Appropriation
Why is there such a big reaction on the Chinese Internet?

China has a long history and a rich cultural tradition, and has a high awareness of
protecting and respecting its cultural heritage

Cultural appropriation is seen as disrespect and plagiarism of Chinese culture

The popularity of social media has given Chinese Internet users a wider range of freedom
of speech and channels of expression. They can freely express their opinions, share
information and organize boycotts on the Internet
2. Cultural Appropriation
Fashion and Reputation in the Context of the Internet

In the age of digital media and social networking, anyone who feels they are under
attack for cultural appropriation issues can speak out and denounce it through social
media

Businesses are under unprecedented scrutiny and scrutiny through the Internet and
24-hour news channels.

With the growth of social media, the parameters of reputation issues have changed
dramatically, increasing in speed, scope and impact, making it easier for reputation
issues to spread quickly.
3. Does the Dior scandal violate organizational culture?

Organizational Culture
‘’Leaving behind a legacy of beauty’’

● Reduce carbon dioxide emissions and curb global warming. They use simple,
lightweight package and low-carbon transportation. In addition, the use of
plastic derived from fossil raw materials is being phased out.
● Protect biodiversity by loving, cultivating, and protecting flowers and
introducing them into the ecosystem.
● They focus on integrating natural origin, sustainability, and science for
effectiveness and comfort that meet high standards. They also formulate the
highest quality ingredients and focus on safety.
3. Does the Dior scandal violate organizational culture?

Christian Dior wanted to make women not only beautiful, but happy.
Dior's brand philosophy is based on inclusive diversity and the
strengthening of women's social status.
3. Does the Dior scandal violate organizational culture?

Revenue by geographic region of delivery

The luxury market in

China is expanding
rapidly, and for Dior, it
is a very important
market.

Financial Highlights - Profile - Christian Dior Finance (dior-finance.com)

3. Does the Dior scandal violate organizational culture?

● Uncertain knowledge of Chinese culture and stereotyped Chinese women in

advertisement.
● It is contrary to the idea of recognizing the diversity of beauty and making
women not only beautiful but also happy.

Dior should advertise in accordance with the culture and values of each country.
Stereotyping with prejudice will alienate customers.This is of course true for other
brands as well, but especially very important for Dior, which has significant sales in
Asia and China.
 4. How can Dior manage issues in order to prevent scandals
in the future?
Stakeholder Mapping and Stakeholder Monitoring
● Issues can be seen as a gap between a company's actions and stakeholder
expectations
→ issue management as the process to close the gap (Weiss, 2021)
● Companies should engage in constant issues scanning to ensure that cultural
appropriation scandals are first averted (Maiorescu-Murphy, 2021)
● Issues usually follow a life cycle before they turn into scandals or crises
● Crises arise when stakeholders perceive that a company has not met or has
violated their expectations (Coombs, 2015)
→ Stakeholder Mapping and Monitoring as part of Stakeholder Management
(Weiss, 2014) in order to monitor stakeholder expectations and opinions
4. How can Dior manage issues in order to prevent scandals
in the future?

Chinese government Influencers and Key

Investors Opinion Leaders

Media and Press

Retail partners
Customers
 4. How can Dior manage issues in order to prevent scandals
in the future?
Issues Management

Issues Scanning and Analysis

● Monitor press coverage, social media
discussions and opinion leader’s voices
● Engage in dialogue with stakeholders:
○ Establish platforms to enable
continuous dialogue e.g. internal
feedback channel for employees
○ Engaging with critics, including
consumers, cultural experts, and
community representatives to gain
insights and perspectives (Sádaba et
al., 2020) e.g. focus groups
 4. How can Dior manage issues in order to prevent scandals
in the future?
Issues Management: ISSUES RESOLUTION AND RESPONSE
● Cultural sensitivity training: provide cultural sensitivity training to its design
teams and employees involved in the creative process.
○ Goal: Ensure better understanding and appreciation of diverse cultures,
avoiding unintentional offense or appropriation
○ create awareness for possibly sensitive matters in the future (Sádaba et al.,
2020)
● Diversify design teams: Increasing diversity within Dior's design teams can bring
different perspectives and cultural insights to the creative process
 4. How can Dior manage issues in order to prevent scandals
in the future?
Issues Management: ISSUES RESOLUTION AND RESPONSE
● Provide proper credit and attribution: When drawing inspiration from other
cultures, Dior should ensure proper credit and attribution
○ Transparently acknowledging the source of inspiration helps to mitigate
accusations of appropriation

● Support cultural initiatives: as companies embed cultural symbolism in their

products and marketing communications campaigns, a significant portion of the
proceedings should be donated to communities in the form of scholarships or
grants for cultural preservation (Maiorescu-Murphy, 2021)
→ Dior can support initiatives for cultural preservation, art, and education within
the Asian community
 4. How can Dior manage issues in order to prevent scandals
in the future?
Issues Management: ISSUES EVALUATION AND MONITORING

● Continuous assessment and improvement: Regularly assessing creative

processes, marketing strategies, and consumer feedback to identify areas for
improvement
→ Actively seeking feedback and making necessary adjustments to ensure
ongoing cultural sensitivity and avoid future controversies
● Enhance organisational structures for issues and crisis management:
Strengthen the crisis communication staff with additional resources to prevent
such incidents at an early stage (Williams & Olaniran, 2002)
 5. Which approach should a company choose - defensive or proactive
(in terms of conflict resolution)?
According to Thomas-Kilmann Conflict Mode Instrument (TKI) there are 5 conflict-handling
approaches: competing, collaborating, compromising, avoiding, and accommodating.
In terms of media conflict resolution there are 2 types of approaches:

1. Defensive Approach (competing & avoiding)

This approach typically involves a more reactive stance, where the brand responds to
the conflict primarily by defending its actions or denying any wrongdoing.
It involves downplaying the issue or deflecting blame onto others, may be risky and
damaging to the brand's reputation further.
2. Proactive Approach (collaborating & compromising)
This approach involves taking responsibility for the issue and actively working
towards resolution.
It includes acknowledging any mistakes, apologizing if necessary, and taking swift
action to address the concerns raised; shows accountability, transparency, and a
willingness to learn and improve.
It allows the brand to regain trust, rebuild relationships with stakeholders, and
demonstrate a commitment to rectifying the situation.
 5. Which method should a company choose defensive or proactive?
(in terms of conflict resolution)?
SWOT analysis specifically to the question of Dior’s conflict resolution:

Strengths Weaknesses Opportunities Threats

● Strong brand ● Brand Vulnerability ● Proactive ● Intense

reputation, which (more susceptible to Stakeholder Competition
provides a solid negative perceptions Engagement ● Social Media
foundation for due to high customer (engaging with and Online
addressing expectations) stakeholders, Criticism (With
conflicts ● Dependence on including the rise of social
● Global presence Fashion Cycles customers, industry media, negative
and Customer (consumer experts, and opinions and
Loyalty (a network preferences can be advocacy groups, to criticisms can
of retail stores challenging to satisfy, address potential spread quickly,
worldwide and a it can potentially lead conflicts ) potentially
strong and loyal to conflicts) ● Embracing Diversity fueling conflicts)
customer base and Inclusion
 5. Which method should a company choose defensive or proactive?
(in terms of conflict resolution)?
Resources Analysis :

● Financial
○ a luxury brand under LVMH → access to significant financial resources
○ resources can be utilized to invest in conflict resolution strategies, such as
hiring public relations experts, conducting research, implementing
communication campaigns, and addressing any financial compensation
required to resolve conflicts
● Brand Reputation and Heritage
○ a strong brand reputation serves as a valuable resource when addressing
conflicts, as it can help to mitigate the impact of negative events and
facilitate trust-building with stakeholders
 5. Which method should a company choose defensive or proactive?
(in terms of conflict resolution)?
Resources Analysis :

● Skilled Workforce
○ talented designers, marketing professionals, and customer service representatives,
who can contribute to conflict resolution
● Global Network and Relationships
○ network can be leveraged for conflict resolution by fostering open dialogue,
collaborating with stakeholders, and seeking mutually beneficial resolutions
● Research and Development Capabilities
○ these capabilities can be utilized for conflict resolution by identifying underlying
issues, understanding consumer expectations, and developing proactive measures to
address conflicts effectively
● Legal and Compliance Expertise
○ as part of a large conglomerate, Dior has access to legal and compliance experts who
can navigate complex legal frameworks and ensure the brand's actions align with
regulatory requirements
 5. Which method should a company choose defensive or proactive?
(in terms of conflict resolution)?

Conclusion:

● Based on SWOT and Resources analysis, it is recommended for Dior to adopt a

proactive approach in conflict resolution.
● By actively engaging with stakeholders, embracing diversity and inclusion, and
staying attuned to market trends, Dior can effectively address conflicts, maintain a
positive brand image, and build stronger relationships with its customers.
● Also Dior has all the resources to allocate them appropriately and align them with its
conflict resolution goals to achieve the desired outcomes and maintain a positive
brand image.
● A proactive approach allows the brand to demonstrate accountability, transparency,
and a commitment to continuous improvement, which can help navigate conflicts
successfully and mitigate reputational risks.
References
Akgun, E. A., Keskin, H., & Ayar, H., (2014). Standardization and Adaptation of International Marketing Mix Activities: A
Case Study. Procedia - Social and Behavioral Sciences, 150 ( 2014 ) 609 – 618.

Cavusgil, T. S., & Zou, S. (1994). Marketing strategy-performance relationship: an investigation of the empirical link in
export market ventures. Journal of Marketing, 58, 1–21.

Coombs, W. T. (2021). Ongoing crisis communication: Planning, managing, and responding. Sage publications.

Maiorescu-Murphy, R. D. (2021). “We are the land:” An analysis of cultural appropriation and moral outrage in response
to Christian Dior’s Sauvage scandal. Public Relations Review, 47(4), 102058.

Sádaba, T., LaFata, V., & Torres, A. (2020). Cultural Appropriation in the Digital Context: A Comparative Study Between
Two Fashion Cases. In HCI in Business, Government and Organizations: 7th International Conference, HCIBGO 2020,
Held as Part of the 22nd HCI International Conference, HCII 2020, Copenhagen, Denmark, July 19–24, 2020,
Proceedings 22 (pp. 504-520). Springer International Publishing.

Theodosiou, M., & Leonidou, C. L., (2002). Standardization versus adaptation of international marketing strategy: an
integrative assessment of the empirical research. International Business Review, 12 (2003) 141–171.
References
Weiss, J. W. (2021). Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.

Williams, D., & Olaniran, B. (2002). Crisis communication in racial issues. Journal of Applied Communication Research,
30(4), 293-313.

Zhang, L., & Cude, J. B., (2018). Chinese Consumers’ Purchase Intentions for Luxury Clothing: A Comparison between
Luxury Consumers and Non-Luxury Consumers. Journal of International Consumer Marketing, DOI:
10.1080/08961530.2018.1466225

Cultural Appropriation in the Digital Context: A Comparative Study Between Two Fashion Cases July 2020.In book: HCI in Business,
Government and Organizations (pp.504-520)

https://www.bilibili.com/video/BV143411F77i/?spm_id_from=333.999.0.0&vd_source=dc3d8029f01f114eca4032f0975c0c4e

https://www.sohu.com/a/572331696_260616

Eytan Gilboa. (2009), Media and Conflict Resolution: A Framework for Analysis. Bar Ilan University
Kenneth W. Thomas and Ralph H. Kilmann. (1974) Thomas-Kilmann Conflict Mode Instrument.
Thanks