Marketing Strategy analysis of LVMH with a special focus on LV
Louis Vuitton Malletier is commonly referred to as Louis Vuitton, sometimes shortened to LV, is French luxury fashion and leather goods’ company. The company was founded in 1854, and now is the cornerstone of LVMH and its main division carrying almost a quarter of the total group.
LVMH is the world leader in the luxury industry. It was established in 1987 through the union of three brands: Louis Vuitton, Moet and Henessy. This union gave birth to a global group that, in addition to leather goods and spirits, brings together to the distribution, a big variety of brands in all segments of the luxury: perfumes, jewelry, watches and also champagne.
Through its policy of brand development and expansion of its distribution network abroad (more than 2300 stores worldwide), LVMH has became, since its creation in 1987, a part of a strong growth: it is now the first capital in France and the thirteenth in the world, with 77000 employees of which 74% are based outside France and that share the same values of the groupe.
Corporate strategy: A strategic segmentation:
In the luxury sector, LVMH has invested in six different strategic business areas: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective distribution and other activities.
Louis Vuitton is trying to represent by its products, the most refined qualities of Western “Art de Vivre” around the world. The company is also trying to continue to be synonymous with both elegance and creativity in leather products, blending tradition and innovation through their products and kindling dream and fantasy.
How Louis Vuitton attracts its costumers:
Louis Vuitton is a luxury brand belonging to LVMH which is the most valued brand in the world of luxury. Since 1854 this has been succeeding with its luxury luggage first and then with fashion industry (especially with collections by Marc Jacobs).
Louis Vuitton has introduced many advertising campaigns, but ten years of fashion communication have overshadowed the house. The company realized that customers were less sensitive to the values that were associated with the brand. Therefore the company wanted to put aside while the commercial communication by focusing on a more institutional in order to enhance the house and not just the products.
Louis Vuitton then chose to move from product communication to corporate communications. The goal is to communicate the values and philosophy of the brand and its leitmotiv: the trip. To create a close relationship with its customers, the Internet appears to be the best means of communication (interactivity, photos, videos ....)
The fundamental value that is conveyed is the trip. Today the concept has evolved in travel habits (mass tourism, development of low cost), becoming very usual and then there is no more magic in the travel or escape. In this new communication campaign LV seeks to use the concept of journey from idea to idea of physical personal journey (passenger).
Two of LV advertisements that are using the trip concept
Main objectives of the company:
Long term objectives:
The group aims to ensure the sustainability of the company by focusing on core brands like the capital (pillars) of the 5 areas of LVMH. In addition, LVMH has the opportunity to gain market share, declining his offer of new niches (accessories). It must continue to invest for growth.
Short term objectives:
LVMH wants to achieve a rapid return to the strategic activities such as selling on the Internet like on “eLUXURY.com” These activities can be retained in the portfolio ones because they do not monopolize considerable energy over the long term and are a source of direct profitability (high margin).
Analysis of the four Ps strategy:
Louis Vuitton’s products are very distinguished by their “absolute quality”...
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