BOARD OF DIRECTORS

Barbara Cirkva, Chair Luxury Education Foundation Brings Together Parsons and Columbia Business School To Ketty Maisonrouge, President Robert Chavez, Treasurer Develop Innovative Strategies for Leading Luxury Goods Companies Safwan Masri, Secretary Henri Barguirdjian François Kress New York, NY (December 7, 2007) – From forward-looking concepts for the Chanel shopping Marla Sabo experience in 2012 to a luxury internet site for , the Luxury Education Foundation

sponsored an innovative, interdisciplinary course that enabled students from Columbia Business FOUNDING DIRECTORS EMERITUS School and Parsons The New School for Design to develop concepts for some of the world’s leading luxury goods companies. "The Design and Marketing of Luxury Goods," taught by Daniel Barth Charles Henri Cousin Columbia and Parsons faculty, this year featured projects for Faber-Castell, Lladró, LVMH Jean-Marc Gallot Perfumes and Cosmetics, and Saks Fifth Avenue, in addition to Bulgari and Chanel. Fred Wilson

"Now in its 13th year, the Foundation developed this program to provide business and design ADVISORY BOARD students the rare opportunity to interact with top executives in the luxury goods industry and Bulgari François Kress learn the inner workings of product development," said Barbara Cirvka, Chair of the Luxury CEO Education Foundation and Division President for Fashion, Watches and Jewelry for Chanel, Inc.

Chanel Barbara Cirkva The semester-long course functions as an incubator for new ideas for participating companies, Division President: Fashion, Watches, Jewelry not solely for product development but also for enhancing their customer base. This year's

Faber-Castell projects included proposing strategies to increase brand visibility in the U.S. for Faber-Castell; Daniel Barth developing new products to promote the new Saks Fifth Avenue logo; enhancing Lladro's image Managing Director among young, affluent consumers, including new product concepts; creating new fragrance Ferragamo concepts for a younger consumer base for LVMH Perfumes and Cosmetics; and conceiving Linda Russell SVP of Women’s Sales "Chanel 2012"—a concept for the luxury shopping experience in 2012.

Graff Henri Barguirdjian "The goal of this course is to teach students how design and marketing work together as integral President parts of the product development process, and how communication and collaboration across Hermès disciplines play into the success of a company," said Amir Ziv, Vice Dean of Columbia Business Robert Chavez President & CEO School. "This is a terrific opportunity for our students to learn from real-world experience, and to gain insight into the design process from a leading design school." Lalique Guillaume Gauthereau President & CEO Project teams combined Columbia business students with Parsons design and management, Maz Zouhairi integrated design, communication design, product design and fashion marketing and design VP of Sales and Marketing students, who worked closely with executives from the participating companies to develop their Lladró strategies and concepts. The course is designed and led by Ketty Maisonrouge, an adjunct Safa Hummel CEO professor at Columbia and President of the Luxury Education Foundation, and taught together with Parsons Design and Management full-time faculty Carlos Teixeira and Assistant Professor Daniel Lalonde Heico Wesselius. President & CEO

LVMH Perfumes & Cosmetics “This collaborative program demonstrates Parsons commitment to providing our students with an Pamela Baxter President & CEO understanding of the application of design in business strategy and new product development,” said Tim Marshall, Dean of Parsons. “As the importance of design thinking in the business world

Saks Fifth Avenue is more widely recognized, an increasing number of companies are turning to Parsons graduates Stephen Sadove with an expertise in this area. This is one of the reasons that our Design and Management Chairman & CEO Bachelor's program has experienced tremendous growth."

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Office: (212) 717-2163 Fax: (212) 472-6853 [email protected] www.luxuryeducationfoundation.org

"By creating a challenging environment for students, participating companies provide firsthand experience in the development, creation and marketing of new concepts and product lines—in short, the professional skills needed to succeed in careers in the luxury industry," said Bob Chavez, President and CEO of Hermès USA, and Treasurer of the Luxury Education Foundation. "In turn, we’re happy to share our experience and expertise to support the students and to encourage talent and creativity in the marketplace."

“In developing their business strategies with close interaction with the companies’ executives, this innovative program allows students to gain real life experience and to better understand the rewards and challenges of working in this specific field,” said Ketty Maisonrouge.

The Luxury Education Foundation

Launched in December of 2004, the Luxury Education Foundation is a tax-exempt not-for-profit organization focusing its efforts on educational programs such as developing and sponsoring the interdisciplinary course “Design and Marketing of Luxury Products” while partnering with Columbia Business School and Parsons the New School for Design.

Columbia Business School

Widely admired for its global and cutting-edge curriculum, Columbia Business School is one of the leading business schools in the world. In addition to its renowned MBA program, Columbia Business School offers the prestigious Executive MBA (EMBA) and non-degree Executive Education programs. The School’s faculty is comprised of internationally respected professors and includes Joseph Stiglitz, who won the Nobel Prize in economics in 2001 and was the chair for President Clinton’s Council of Economic Advisers from 1995 to 1997.

Parsons The New School for Design

Recently named one of the top design schools for creative talent by BusinessWeek, Parsons The New School for Design is one of the most prestigious and comprehensive degree-granting colleges of art and design in the nation. Parsons BBA in Design and Management blends traditional business courses with those emphasizing the strategic importance of design thinking in product innovation, sustainable business models, and business creation. Parsons has a long history of engaging leading corporations to develop design solutions for real-world business challenges, including Samsung, Siemens, Daimler AG and Microsoft. For more information, visit www.parsons.newschool.edu

Contact Columbia Business School: Keshia Mark, (212) 854-2747, [email protected]

Luxury Education Foundation: Melinda Lin, (212) 717-2163, [email protected]

Parsons: Deborah Kirschner, (212) 229-5667 x4310, [email protected]

Office: (212) 717-2163 Fax: (212) 472-6853 [email protected] www.luxuryeducationfoundation.org BVLGARI Company History In 1857 Sotirio Boulgaris was born into a family of legendary Greek silversmiths and in 1880 he moved to Rome and began opening a variety of boutique stores. Shortly after, a small family business flourished into an enterprise with stores in St. Moritz, Naples, Bellagio, and Sorrento. BVLGARI was quickly established as an upscale jeweler using gold, silver, and platinum set with brightly colored precious gemstones. Since the mid 1970s BVLGARI has gained international recognition and become a favorite amongst celebrities and royalty B-Lounge around the world. Today BVLGARI is most known for creating luxurious timeless Italian jewelry with daring combinations, bold colors, and precious stones. They have stores in New York, , London, Rome, and Los Angeles.

Case Study The team was asked to perform customer segmentation and develop a loyalty strategy with the purpose of driving business to a new e- BVLGARI Traveling Collection commerce website for BVLGARI. The goals were to understand the attributes important to the internet luxury shopper; the motivations and inspirations that inspire loyalty in the luxury internet shopper; and the services and offerings that would retain and further inspire the luxury shopper.

Design, Business and Marketing Plan BVLGARI In the Sky As part of the new e-commerce site, the team proposed an exclusive social networking feature, the B-lounge. The B-lounge would serve as a club for active and loyal BVLGARI customers and offer services such as access to early releases of new designs and online personal stylists.

The team also proposed the BVLGARI Traveling Collection—events in U.S. cities held at local museums and cultural centers that showcase vintage BVLGARI jewelry pieces and detail the history of Italian, Greek and Roman art. These events would educate consumers of BVLGARI’s rich history and craftsmanship, and include kiosks for accessing the e-commerce site.

The team also proposed BVLGARI in the Sky, where airline passengers traveling first and business class and by private jet could access the e- commerce site and have their purchases ready for them upon arrival.

The BVLGARI Project Team Mikel Achotegui, Columbia Sangeeta Abkari, Columbia Eloisa Allona, Columbia Christina Black, Columbia Francesc Minoves, Columbia Shradha Mehta, Parsons Nikita Varma, Parsons

CHANEL Company History Gabrielle "Coco" Chanel founded Chanel, the international luxury goods company, in in 1911. Today, after nearly a century of continuous operations, Chanel remains one of the world’s preeminent fashion businesses worldwide. Under the current design leadership of Karl Lagerfeld, the House of Chanel remains dedicated to luxury, fashion, style and image.

Case Study Chanel "Channel" “Chanel 2012”: As Chanel looks to the future, how will the luxury market and consumer evolve, and what will their expectations be? Chanel challenged the students to envision a new experience for customers in the year 2012, embracing changing trends while remaining true to its heritage as the ultimate house of luxury.

Design, Business, and Marketing Plan Solution Handbag Customization Researching Gabrielle "Coco" Chanel's origins and inspirations, the team focused on Coco's reputation as a fashion tour de force and groundbreaking cultural presence. The team identified the 2010s as the "decade of experience," with a focus on sensory stimulation. New colors, layout, interaction with staff and merchandising appeals to the senses and maximizes customer involvement. High-tech visuals elements enhance displays.

RFID technology will revolutionize the loyalty program, enabling Chanel to predict each customer's every need. Events that invite customers to learn about the craft and quality of the Chanel product, and revolve around four iconic pieces: the 2.55 quilted handbag, costume jewelry, the two-tone shoe, and the Little Black Dress. Customers are invited to customize these iconic pieces.

Rue Cambon, a private club suite situated on the Upper East Side, will offer luxury lifestyle to its most valued customers. These customers will enjoy private performances, parties, and fashion in a salon environment Coco Chanel would applaud.

On the internet, the team suggested new features for the Chanel USA website, "Chanel Channel," with video and interactive media about the fashion world and offer style advice to the newly initiated. Customers are welcomed online to interact with stylists before they ever enter the store.

The Chanel Project Team Maloni Goss, Columbia Business School Soyean Kim, Columbia Business School Alessandro Savelli, Columbia Business School Rebecca Smith, Columbia Business School Annelise Pruitt, Parsons The New School for Design Angela Sheng, Parsons The New School for Design Gennie Yi, Parsons The New School for Design

FABER-CASTELL Company History In 1761, Kaspar Faber started to produce pencils in Stein, near Nuremberg, Germany. After three generations, the baron Lothar von Faber took over the company in 1839. He turned the pencil into a true quality product and the world's first branded writing instrument. Over the centuries, he and his descendants created remarkable products, transferred to the present days with timeless design and modern technology. The Graf von Faber-Castell Collection, a range of extraordinary writing instruments and accessories, embodies "Luxury in Web Enhancement Simplicity" by combining selected materials, functionality and superb aesthetics.

Case Study Concept Students were asked to define the current position of Graf von Faber-Castell in the U.S. market, and to design a strategy to bring the brand to a leading position in the industry, based on a series of marketing and communication initiatives.

Design, Business and Marketing Plan Solution In the first phase, the team concentrated on understanding the current position of the brand in the US market, which suggested an opportunity for increasing brand awareness in the market. The team concentrated on the most distinctive and "Secrets" Product Line significant attributes of the brand and its heritage—elegance, tradition, simplicity, creativity, and distinctiveness—to develop the iconic concept of “Virtuosity” as an inspirational element for the campaigns.

The team developed different themes around the concept that were narrowed down to: “Orchestra,” which leverages the affinity of symphonic music, and targets a predominantly male, sophisticated, artistically conscious, upper class clientele; and “Secrets,” designed for young women, which leverages the intimacy of journal writing.

Supporting these two themes, the team developed a series of initiatives such as the creation of mobile stores that provide the opportunity for consumers to experience the products; enhancement of the website; sidewalk "tunnel" installations (e.g. Wall Street or Carnegie Hall), featuring stories related to the brand and its products; and a new product line to support the “Secrets” theme; a contest for young, U.S. composers; a book with "secrets" from notable celebrities; networking events for business and media VIPs.

The Faber-Castell Project Team Michelle Kwong Rutherford, Columbia Business School Rafael Martin Delatorre, IESE/Columbia Business School Laura Toia, Columbia Business School Rhijnvis van Wijk, IESE/Columbia Business School Daniela Yamada, Parsons The New School for Design Neha Brahmwar, Parsons The New School for Design Richard Yeh, Parsons The New School for Design

LLADRÓ Company History Lladró is a brand focused on handcrafted artistic creation and production, whose core activity is the creation of high quality porcelain sculptures. The personal style of its creations and their ability to express the most positive feelings has made it a world leader in its sector. All Lladró sculptures continue to be produced in the City of Porcelain in Tavernes Blanques, a town on the outskirts of Valencia, Spain.

Besos de Luz Storefront Case Study Concept The objective is to establish relevancy as an iconic lifestyle brand and appeal to young, affluent consumers. The company encourages the approach to include new product development. The plan must be supported with a media plan, visual merchandising plan, PR campaign, distribution plan, pricing scenarios, and preliminary sales forecast.

Design, Business and Marketing Plan Solution The students visualized an innovative brand concept that embraced, exploited, and stretched the boundaries of porcelain, while enhancing a Besos de Luz "Amorph" luxurious aesthetic. Through exploratory research, it was determined that the best way to reach out to a new audience was to create products that embody design, functionality, and luxury, while offering interpretation and fostering interaction. The students felt the best way to achieve this goal was to introduce "Besos de Luz by Lladró," a brand that is edgy, modern, high-touch, and tactile, yet draws its rich heritage.

"Besos de Luz by Lladró" consists of two contemporary, cutting-edge product lines: "Amorph" and "Chainmail." The Amorph line offers a range of amorphous-shaped, handcrafted and hand-designed tabletop Besos de Luz "Chainmail" products that the avant-garde consumer can utilize, embrace, and interpret. Chainmail creates an entirely new, fluid way to use porcelain, presenting a lavish selection of jewelry combining porcelain with the likes of gold, silver, and pewter. Chainmail Lighting amalgamates the two product lines to create a range of lamps and lights, so the luxury encompasses the consumer’s entire home and lifestyle.

The recommended five-year strategy aims to position Lladró as an alluring luxury brand prominent for the aesthetic design and functionality of its products. A new store that incorporates the tactile, engaging nature of porcelain while fostering creativity will be opened in Manhattan. The beauty and luxury of the brand will be conveyed through various specialty pieces intended for public relations purposes, and a presence in various upscale media vehicles via advertisements, editorials, and product placements. Collaborations with noted Spanish artists, along with online product customization offerings, present the consumer with a rich mix of tradition and originality.

The Lladró Project Team Steven Charles, Columbia Business School Charlly Greene, Columbia Business School Ui-Jin (Michelle) Lee, Columbia Business School Yue (Molly) Tu, Columbia Business School Douglas Best, Parsons The New School for Design Irene Fong, Parsons The New School for Design Brietta Yung, Parsons The New School for Design LVMH Perfumes and Cosmetics Company History To the Magic of …A name recognized and celebrated the world over…Where fashion, fragrance, makeup and skincare create a unique and powerful synergy. In 1947, the launch of his first couture collection revolutionized the fashion world with the “New Look.” Since that time, Christian Dior continued to weave his mastery into each of his creations, dressing women from head to toe in detailed fabrics, rich colors, and captivating scents. With today’s incomparable range of beauty products – from elegant and seductive fragrances to cutting-edge colors to the most advanced skincare, Dior has exceeded even its founder’s dream.

Case Study LVMH Perfumes and Cosmetics asked the students to develop a new fragrance concept for Dior, targeting the sophisticated urban woman. This included analysis of the current market, as well as research on the competition and global fragrance trends. This information combined with blue-sky tactics was used to design an original perfume with its own packaging, positioning, and marketing strategy.

Design, Business and Marketing Plan Solution Starting with consumer research, analysis of the competitive landscape, and industry data, the students concluded that there were two major opportunities in the marketplace for a new Dior fragrance: an ultra high-end fragrance that created Couture & Jewels an exclusive and memorable experience for a select few; and a larger distribution fragrance focusing on an innovative bottle design for an active urban woman.

The “Couture & Jewels” concept for the high-end fragrance is inspired by Dior’s past. It combines elements of couture and artistic expression with exclusive customization to create an exceptional bottle design that would serve as both a personal statement and decorative piece. More importantly, it would elevate the Dior brand in the fragrance category to the same status it already commands on the runway. The “Purely Iconic” concept focuses on innovation, modernity, and mixing to craft a unique bottle with two fragrances, one floral and the other woody; allowing the user to wear each individually or layer the scents. The target Purely Iconic audience is a confident, sophisticated, yet feminine woman who is constantly on the go and needs a perfume that can keep up with her day.

The recommended marketing strategy for “Couture & Jewels” would include a handwritten note from John Galliano sent to loyal Dior customers and fashion and beauty editors. The note would unveil the fragrance and request them to experience the magic for themselves in Dior stores. To attract a broader urban audience for "Purely Iconic," the marketing plan would consist of a launch party at MoMA and targeted media placements. Additional tactics would include building projections, and “marketing at the office.” This last idea would have Dior stylists stationed in office buildings where they assist women in making the transformation from morning to night, all the while educating about the new fragrance.

The Dior Project Team Aparna Desai, Columbia Business School Matteo Del Vecchio, Columbia Business School Lesley Elliott, Columbia Business School Ying-Ping Kung, Columbia Business School Liz Cebron, Parsons The New School for Design Olivia Jezler, Parsons The New School for Design Jiashan Wu, Parsons The New School for Design

Saks Fifth Avenue Company History Saks Fifth Avenue was the brainchild of Horace Saks and Bernard Gimbel, independent retailers who dreamed of constructing a unique specialty store that would become synonymous with fashionable, gracious living. With the opening of its founders’ “dream store” in 1924, Saks Fifth Avenue became the first large retail operation to locate in what was then primarily a residential district. By offering the finest quality men’s and women’s fashions, as well as an extraordinary

Saks In-Store Environment program of customer services, Saks Fifth Avenue has become synonymous with taste and elegance.

Case Study Concept Saks Fifth Avenue launched a new logo and DNA pattern in January 2007. With this change, Saks Fifth Avenue intends to create an enduring logo for the future by drawing upon its rich heritage. Students were asked to generate product ideas for the logo and DNA pattern.

Design, Business and Marketing Plan Solution The objective of the project was to elevate and differentiate Saks as an iconic NYC shopping destination, as well as increase revenue through the creation of DNA logo products. Based on various data sources including store visits, customer research, competitor landscape research, and store associate focus group interviews, we defined our main target customers for the logo products as the core customer, the experienced tourist, and the new tourist. After researching the Saks Cufflinks characteristics of these groups, we created two distinct product lines.

Through the core customer survey, we realized that store experience is one of the key factors affecting the image of luxury department stores. As a result, in addition to the two product lines, we developed an in- store logo integration plan focused on updating facilities, in-store decorations and packaging, and incorporating the logo into the Café, makeup counters and bathrooms. In order to target the price conscious new tourist, we redeveloped the permanent collection. This collection is focused on bold, well-designed logo products that fall into the grab Saks Handbag and go gift category, at an accessible price point. We came up with

the “Very Saksy” tagline for the marketing campaign, which will be focused on buzz and gorilla marketing tactics during the holiday season. To target the core customer and experienced tourist group, we created the "12 Months of Saks" concept, which provides high-quality, co-branded, limited quantity products for each month with the “Saks in the City” marketing campaign.

The Saks Fifth Avenue Project Team Emily Gerne, Columbia Business School Kamilah Jackson, Columbia Business School Bang-Sil Lee, Columbia Business School Stephanie Nadeau, Columbia Business School Masayo Park, Parsons The New School for Design Hannah Park, Parsons The New School for Design Jesse Resnick, Parsons The New School for Design