Louis Vuitton analysis

Topics: Marketing, LVMH, Luxury good Pages: 8 (2695 words) Published: November 13, 2013

Table of Contents

1.0 Executive summary
This report is basically about how does a company conducted its market segmentation, targeting and positioning strategies in the industry and marketing mix strategy. I have chose Louis Vuitton(LV) as my topic to continue my research and report. The market size, market segmentation, positioning strategy and macro environment analysis of LVMH is discussed in the report. The SWOT analysis of LVMH is also being discussed briefly. Besides, the marketing mix strategy of LVMH which is 4Ps is also being further discussed in this report. The product line and product mix of LVMH, new product that being suggested, the pricing strategy of LVMH and the price of new products are also being discussed. Furthermore, the channel of distribution and the way of promotion of LVMH products are being discussed in this report too.

2.0 Introduction
The company that I chose to analyze is Louis Vuitton. Louis Vuitton is the founder of Louis Vuitton company. He opened his first shop in Paris at the year of 1854, Louis Vuitton is manufacturing trunks in the beginning and the first luggage that Louis Vuitton manufactured was in 1858 . After that, in 1895, Louis Vuitton undergoes expansion. In 1985, the first store of Louis Vuitton is opened in London. The company’s products undergo a series of innovation with creativity. In 1892, George Vuitton, which is Louis Vuitton son, had taken over the company. He created the monogram logo of Louis Vuitton . In 1987, Moët Hennessy • Louis Vuitton SA (LVMH) was then created by merging, through $4 billions . Nowadays, Louis Vuitton has 16 outlets and 456 stores worldwide. Louis Vuitton has approximately 77,087 thousand of employees, including both full time and part time employees, where there are 12,161 are part-time employees.. In addition, Louis Vuitton is always generally referred as LVMH by public. The main products sell by Louis Vuitton are leather bags and wallets such as handbag, luggage and cosmetic bag. Besides, the other products that also being sells by LV are jewelry, perfumes, sunglasses, accessories and so on . The internal strength that LVMH has is that LVMH is a well known largest luxury brand in the world . Products of LVMH are stress on quality, thus their products are very expensive but are definitely high in quality . Moreover, the rich history and culture is also one of the internal strength that LVMH had. It is one of the oldest fashion houses in the world with more than 150 years of history . The internal weaknesses that LVMH encounter are such as the limitation in customer. As we know, LVMH is a well known luxury brand. LVMH’s products are luxury goods. Most of their customers are of the elite and super rich . Furthermore, the brand is only available in its exclusive store, making people hard to seek for it . And so, the fake imitation with cheaper price is sells in the market, which will affects the brand and sales of LVMH . Next, in year 2011, LVMH had made €3.5 billion profit

2.1 Size of the market
The market size of LVMH is small. Niche market is very specific. LVMH is targeting a niche of wealthy people or upper class society. Again, LVMH is a luxury brand, therefore, the products of LVMH are expensive, and so, the market that LVMH targeted definitely is rich people. LVHM has divided to into various niche markets. 2.2 Competitors

LVMH has quite a number of competitors such as Gucci, Hermes, Prada, Chanel. Somehow, LVMH key competitor is Gucci. Gucci is a famous luxury brand in the world. According to the 14th Best Global Brand ranking, LVMH and Gucci are in top 100 ranking. LVMH is at the rank 17th whereas Gucci is at the rank 38th . The brand value of LVMH in 2013 is higher than Gucci which is $24.893 billion, while Gucci is $10.151 billion . LVMH and Gucci are both luxury brand, and the products that they sell are of similar too. Gucci has very strong brand image and high bargaining power of...
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