Luxury Marketing- Louis Vuitton Marketing Strategy

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  • Topic: LVMH, Brand, Perfume
  • Pages : 43 (13318 words )
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  • Published : April 8, 2013
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Timeless
by LOUIS VUITTON

TAYLOR FERRIS/CHRISTINE PURVIS/RYNE HEENE/AUSTIN TOOGOOD/AIJ BAKITBEK/ANTONINA SZOSTEK NOVEMBER 2012

Table of Contents
Market Analysis4
Turnover4
Brands in presence5
Top 20 Selling Perfumes5
Evolution6
History of Perfume Industry6
The International Market6
Strategies7
Short Term Strategy7
Long Term Strategy8
Product Concept9
The Concept9
The Bottle10
Materials and Colors11
Colors11
Materials12
Measurements13
Logo13
Targeting and Positioning15
Understand the potential of scent17
Product Mix19
Name19
Packaging20
Formulation21
Range21
At The Launch21
Long Term22
Price Mix23
Definition and justification of price politic23
Manufacturing And Quality23
Competition26
Total26
Distribution Mix27
Choice kind of distribution27
Point of sales27
Number of sales28
Communication Mix29
Marketing Problem29
Media Objectives30
Media plan/Schedule30
Ad creation31
Bus Posters31
Billboards32
Magazines32
Social Networks33
Print Advertisements34
Street marketing36
Financial Equations37
5 Year Cost Vs. Profit Breakdown Analysis37
2012 Revenue highlights38
Promising Profitability for Timeless39
Sales could Decrease from Product Cannibalism40
Retroplanning42
Corporate Deadlines42
Plan of Action – Identification of Key Dates and Deadlines42
Concept of 47 Day Campaign44
Media Campaign After On-Shelf Launch Date45
Deadlines that Have Already Been Met46
Sensory Identity, partnership, innovation48
senses of the brand48
Sight48
Hearing49
Taste49
Touch49
Partners50
Innovation plan50
Marketing Plan51
Proposition of marketing plan52
Media actions53
Promotions54
References56
Key Insights From Preliminary Work60
Louis Vuitton Swot Analysis60
Concept Brainstorming Beginning63

Market Analysis
Turnover
The fragrance market is worth a total 10 billion US dollars worldwide. In a worldwide setting, the majority of sales come from North America, Western Europe, and Asia Pacific. Together, these three geographic regions make up 86% all of the worlds fragrance sales. These three general markets will thus be the focal points of Louis Vuitton’s perfume launch. The fragrance market encompasses several product categories with perfume being one of the categories. Other categories include household products and personal care products.

In general, the perfume market can have extremely high turnover rates. During its first week on the market, Justin Bieber’s Girlfriend perfume sold at a rate of 1 bottle a minute. Chanel No. 5 reportedly sells one bottle every 30 seconds and Jean Paul Gaultier Classique claims to sell four bottles every one minute. Accurate or not, such claims give insight to the rapid turnover rate of the perfume industry.

With profit margins as high as 95 percent, it is in Louis Vuitton's best interest penetrate the fragrance market. However, the rewards are high, but so are the levels of competition. Over 1300 brands of perfume can be found in the US alone. Western markets have clearly reached levels of saturation. Nevertheless, Louis Vuitton is in a great position to breach these markets. By using their strong brand identity combined with a stellar marketing strategy Louis Vuitton should be able to quickly compete with the industry’s top players. Brands in presence

The list identifies the top twenty selling perfumes for the following markets; US market, French market, online market. Chanel is the most prevalent brand name in the US market. Likewise, Dior appears as the most prevalent brand name in the French market. Calvin Klein is the most prevalent brand name in the online market. Dior, Donna Karan, Calvin Klein, and Thierry Mugler have all established a presence in at least two of the three markets. The US and French markets are dominated by higher-end expensive brand names such as Chanel...
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