Mini Case Code : CLIM048
Publication date : 2008
Subject : International Marketing
Industry : -
Length : 02 Pages
Price : Rs. 100
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Cultural sensitivity, celebrity endorsement, retail, Sharon Stone, Christian Dior, Dior, China earthquake, LVMH Group, karma, China, Beijing Olympics
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In May 2008, Moet Hennessy Louis Vuitton SA (LVMH) dropped American actor Sharon Stone, the face of Dior, from its China campaign after she suggested that the May 2008 earthquake in China was a result of bad karma, for their alleged mistreatment of Tibet. Stone's remarks were seen as insensitive and the company immediately disassociated itself from her. Experts said this incident went a long way to show the limitations of celebrity endorsements.
Questions for Discussion:
1. Critically analyze Christian Dior's decision to use celebrity endorsement to promote the Christian Dior brand. Discuss the pros and cons of using celebrity endorsements to promote a brand.
2. Discuss the company's strategy in China in the backdrop the the Sharon Stone controversy. What should the company do to address the bad publicity arising out of the issue?
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