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
Sharon Stone controversy. What should the company do to address the
bad publicity arising out of the issue?