LVMH PESTLE

Topics: Perfume, Social identity, Environment Pages: 3 (730 words) Published: February 27, 2015
Based on your research, assess and prioritise the main macro and micro external issues facing Louis Vuitton in 2014. As a minimum you should employ PESTLE and the Five Forces Framework.

Political factors
Political factors are a crucial factor of LVMH, which causes a great influence on the market environment. New policy, business rules and the regulation have deep rooted influences on LVMH development in UK market. According to  The Economist (2009) VAT has increased which created a threat to the market as there would be both a restriction and hindrance in consumer spending. Economic factors

There has been an increase in perfumes and cosmetics products sold in the UK. When the rate of inflation fell, money had greater purchasing power and people had a greater desire to purchase expensive goods,which ultimately benefits the perfumes and clothing companies. Social factors

Social factors consist of demographic population, culture religious norms and the practices and trend of the society. Geographical segmentation divides the market into the various geographical areas which helps wealthy countries like the UK by maintaining better positioning and enhances the status symbol of the perfumes company. LVMH has target the people having higher income and the company has created the images that are in accordance social identity theory and consumer reckon that consumption of LVMH products increases the social identity ,builds the social image and most of the buyers are graduate professional with sense of self world and high social reputation(Doval, Singh et al.). British women mostly use fragrance on special occasion and tend to use less perfumes as comparing to other American and Europeans women. It is shown that older woman above 35 seen more conservative and less fashionable and experimental than the younger teenager. Gifting is consider as one of the crucial feature of perfumes market. It also provides opportunity to perfumes manufacturers as there is...
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