Presentation of the company
Louis Vuitton is an international luxury French fashion house specialized in trunks and leather goods, founded by Louis Vuitton in 1854. As an emblem of the French luxury, Louis Vuitton knew how to make way on the international scene, by advancing an image of quality, elegance and refinement. Today, Louis Vuitton is one of the most recognizable and powerful brands in the world with more than 300 stores in 44 countries around the world and 2,7 billion of $ of turnover in 2008. With more than 150 years of history and experience, Louis Vuitton has managed to strengthen its name in the universe of the leather goods by proving itself innovative, modern and creative, and by advancing its craft, in spite of an expansion at the international level. Furthermore, Louis Vuitton is one of the main subsidiaries of the LVMH group. Trunk makes of origin, but always initiator of trends, Louis Vuitton has gradually developed its luxury range of products in coherence with the brand values.
We are going to analyse the difference between the marketing strategy used by Vuitton regarding its famous bags in France and in Japan.
1. Marketing-mix of Louis Vuitton in France:
Louis Vuitton offers a large range of products: Trunks, leather goods, ready-to-wear, shoes, watches, jewellery, accessories, sunglasses, books, created under the artistic direction of Marc Jacobs.
The flagships products are the Louis Vuitton bags and Wallets, which are long-lasting products of excellent quality, which guarantee their prestigious image. The bags still represent 95% of Louis Vuitton business.
Louis Vuitton has expanded its product line regarding the bags: * Monogram (Denim, multicolour)
* Leather varnish
Values of the products are: myth and tradition
Proof of the quality of the products, more than 100 years after, the researchers discovered the Vuitton bags in the remains of the Titanic. When they opened the bags, to their surprise, the interior was completely dry. This reinforces their prestigious image. Here are a few photos of the Vuitton bags from the shipwreck of the Titanic.
Indeed, the legend says that Vuitton made the only bags, which had survived to the sinking of the Titanic. Today, just as yesterday, Louis Vuitton cultivates this previous know-how, the fascination of the exact gesture and the highest quality materials to create products of value. Every detail, every component of the signature respects tradition. Indeed, the signature Louis Vuitton is recognizable among thousands: thanks to their monogram.
We are going to present the pricing policy of Louis Vuitton bags in France:
* About the pricing we can say that: Louis Vuitton is a luxury brand, so prices are high because of the materials quality and the brand notoriety. The company uses a skimming strategy in order to increase its profits, by setting up high prices to select costumers and strengthen their high-end image. * Another particularity is that products are never on sale. This allows to maintain a luxury image and to remain a brand, which is not easily accessible.
* Price range:
* Handbags: $550 - $3,700
* Wallets: $200 - $700
* Bags: $500 - $4000
To reinforce its luxury image Louis Vuitton don’t use popular media such as radio or TV But Louis Vuitton has an international strategy by using:
* Famous Personalities (as Madonna, Scarlett Johansson and even Mikhail Gorbatchev) from Madonna to Gorbatchev, by way of princess Eugenie, these photos represent all the various styles of the Vuitton house: Glamour and history * High-end Fashion Magazines: ex: Vogue, Elle, Madame Figaro * The sponsoring of events
Products are just sold in prestigious selling point (stores and stores in department stores), thanks to an exclusive distribution but after years of hesitation, the key...