Louis Vuitton Strategies

Only available on StudyMode
  • Download(s) : 597
  • Published : October 1, 2009
Open Document
Text Preview
By: Mary, Chayanee, and Sasima

History
• Early Days (1854-1892)
– 1854 - Louis Vuitton opens first store in Paris – 1885 - first LV store opens in London, on Oxford Street – 1892 - Vuitton dies; the Vuitton company begins selling handbags.

• Golden Age of Louis Vuitton (18931936)
– 1893 - Georges (Louis‟s son) begins his campaign to make the company into a worldwide corporation. – 1936 - The golden age of Louis Vuitton ends as Georges Vuitton passes away. Estimates attribute Georges Vuitton with over 700 new Vuitton designs.

History
• Modern Age of Louis Vuitton (1937-1996)
– 1978 - Vuitton opens its first stores in Japan, in Tokyo and Osaka. (Sales in Japan would come to account for nearly half of the company's total revenue by the 1980s.) – 1984 - Vuitton expands its presence in Asia by opening its first store in Korea, in Seoul. – 1987 - Moët et Chandon and Hennessy, leading manufacturers of champagne and of brandy, respectively, merges with Louis Vuitton to form the world's largest luxury goods conglomerate, LVMH. The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies. – 1992 - The first store in China is opened at the Palace Hotel in Beijing.

History
• Millennium Age of Louis Vuitton (1997-present)
– 1997 - hires designer Marc Jacobs to be the label's artistic director – 2006 - opens its first store in Norway

Mission Statement
• “LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy.” • Five priorities reflect the fundamental values shared by all Group stakeholders: - Be creative and innovative - Aim for product excellence - Bolster the image of our brands with passionate determination - Act as entrepreneurs - Strive to be the best in all we do

Target Market
• LV uses demographic targeting strategy to target their customers – Both men and women – Age: ranging from young adults to seniors (22 – 65 yrs old) – Income: around $5,500 or above per month

Selling Point
• Fashionable • Durable goods – Good quality product – Long product life • Exclusivity • Prestige image – Feel good – Fit into high-class society – Practice ego and power

Marketing Mix

Product
• Main Products: Leather Bags and Wallets
– Handbags – Luggage – Cosmetic Bags

• Original Product Line: Monogram • Expanded its product line – – – – Monogram Denim Monogram Multicolore Monogram Vernis Damier Canvas

Product
• Offer more types of product including:
– Timepieces – Shoes – Agendas – Jewelry – Sunglasses – Belts, scarves & Accessories

Product
“Three Levels of Product of Louis Vuitton”

Durable Customer Care

Fashion

Warranties

„Luxury‟
Quality Lines of Product
Service Gift Wrappings Brand

Price
• Premium Pricing
– Luxury image – Selling Point

• Never on sale!! • Price range:
– Handbags: $550 - $3,700 – Wallets: $200 - $700

Place
• Direct channels: Free-Standing Store

Place
• Department Stores:
– Macy‟s New York – Bloomingdales – Saks Fifth Avenue

• Exclusive Distribution
– Limited number of stores and retailers

Promotion
• Emphasize on personal selling • Don‟t emphasize on sales promotion – To reinforce their luxury image

• PR
– Sponsorship
• “Louis Vuitton Cup 2007” • “LVMH Young Artists‟ Award” • LVMH Website - “The Magazines”

Promotion
• Advertisements:
– Message
• Convey luxurious image

– Means of media
• High-end Fashion Magazines
– Eg. Vogue, Elle

• Billboards

Promotion
– Endorsements: Jennifer Lopez, Kate Moss, Uma Thurman, and Scarlett Johansson

Promotion
• New advertising campaign

Imitation or Real?
• Fake LV‟s are a continuous problem • Spend $10 million a year on ripoff battle – Part of sum goes to lobbyists

• Biggest sources of counterfeit goods:
– Turkey, China, Morocco

Imitation or Real?
• LV has adopted a zero...
tracking img