Louis Vuitton Case
Louis Vuitton :
New product introductions vs. product availability
Introduction
Louis Vuitton is a part of the Louis Vuitton Moet Hennessy Group. Being the core business, Louis Vuitton is the most famous brand not only in the group, but also in the fashion industry. It is well-known for its quality and design.
Most of the Louis Vuitton consumers are wealthy people, who expect premium products regardless to the price.
Considering this fact, Louis Vuitton may implement a strategy, which ensures availability of the products at any time and provide the clients with the best possible customer service.
In the past, Louis Vuitton faced the out-of-stock problem and it has not been solved yet. As a consequence, the company loses not only sales but also reduces its reputation.
Managers realized that consumers’ satisfaction is one of the most important aspects for a company in order to continue being successful, gain high profits and reputation.
The source of the out-of stock problem in Louis Vuitton causes some disagreements between the company’s vice president for marketing and sales and the vice president for manufacturing and logistics. The first one states his opinion that the lack of flexibility and responsiveness is the base of the problem, while the second one blames the recent increase in new product introductions and the poor forec asting of demand.
We will investigate these different problems and how Louis Vuitton can solve them by aligning the manufacturing process and marketing activities in the most efficient way.
Supply Chain Strategy
Consumers of luxury products have high expectations regarding the products´ quality and design. Furthermore, the consumers want to be provided with a complete shopping experience, when they purchase a Louis Vuitton handbag for 3 000 Euros or a pair of Louis Vuitton shoes for 1 000 Euros. An essential part of this shopping experience is the product itself. Therefore, Louis Vuitton´s
New product introductions vs. product availability
Introduction
Louis Vuitton is a part of the Louis Vuitton Moet Hennessy Group. Being the core business, Louis Vuitton is the most famous brand not only in the group, but also in the fashion industry. It is well-known for its quality and design.
Most of the Louis Vuitton consumers are wealthy people, who expect premium products regardless to the price.
Considering this fact, Louis Vuitton may implement a strategy, which ensures availability of the products at any time and provide the clients with the best possible customer service.
In the past, Louis Vuitton faced the out-of-stock problem and it has not been solved yet. As a consequence, the company loses not only sales but also reduces its reputation.
Managers realized that consumers’ satisfaction is one of the most important aspects for a company in order to continue being successful, gain high profits and reputation.
The source of the out-of stock problem in Louis Vuitton causes some disagreements between the company’s vice president for marketing and sales and the vice president for manufacturing and logistics. The first one states his opinion that the lack of flexibility and responsiveness is the base of the problem, while the second one blames the recent increase in new product introductions and the poor forec asting of demand.
We will investigate these different problems and how Louis Vuitton can solve them by aligning the manufacturing process and marketing activities in the most efficient way.
Supply Chain Strategy
Consumers of luxury products have high expectations regarding the products´ quality and design. Furthermore, the consumers want to be provided with a complete shopping experience, when they purchase a Louis Vuitton handbag for 3 000 Euros or a pair of Louis Vuitton shoes for 1 000 Euros. An essential part of this shopping experience is the product itself. Therefore, Louis Vuitton´s