Lvmh Marketing
Bespala, Y., Dmitrieva, M., Jackson, S. and Reutoi, N.
LVMH
Word Count – 3,154 words.
Index
Topic Page No.
Introduction 3
Marketing in a Contemporary Context 4
Understanding Consumer Behaviour 6
Market Research 8
Segmentation, Targeting & Positioning 10
The Marketing Mix 12
Conclusion 14
References 15
Appendix (Including Additional Readings) 18
Introduction
“There are four main elements to our business model – product, distribution, communication and price. Our job is to do such a fantastic job on the first three that people forget all about the fourth.” (Bernard Arnault, CEO of Moët Hennessy-Louis Vuitton. Taken from Anonymous, 2009)
Merging into its current form in 1987, Moët Hennessy-Louis Vuitton (henceforth referred to as LVMH), serves as one of the largest luxury goods providers in the world, trading in over 65 countries and employing over 30,000 individuals. With the concept of consumer value ever being redefined relative to the constricting nature of the current economic climate, one could be forgiven for imagining that the process of marketing luxury products/services to an increasingly conservative consumer base would be a difficult one to maintain successfully. In spite of this, LVMH has upheld its profitability when so many of its competitors have failed to do so.
At the forefront of the 50 or so brands that fall under the LVMH umbrella is the company’s flagship marque– Louis Vuitton (LV). Despite a recent slump in demand within the luxury leather goods industry, LV has proven to be representative of the adaptable nature of the conglomerate as a whole. Whereas for many, the must-have features of yesterday are today’s can-live-withouts (Quench, 2008), LV has adopted a consistent, innovative marketing strategy to ensure that whatever it chooses to sell never falls into the latter category in the minds of customers.
This piece intends to
LVMH
Word Count – 3,154 words.
Index
Topic Page No.
Introduction 3
Marketing in a Contemporary Context 4
Understanding Consumer Behaviour 6
Market Research 8
Segmentation, Targeting & Positioning 10
The Marketing Mix 12
Conclusion 14
References 15
Appendix (Including Additional Readings) 18
Introduction
“There are four main elements to our business model – product, distribution, communication and price. Our job is to do such a fantastic job on the first three that people forget all about the fourth.” (Bernard Arnault, CEO of Moët Hennessy-Louis Vuitton. Taken from Anonymous, 2009)
Merging into its current form in 1987, Moët Hennessy-Louis Vuitton (henceforth referred to as LVMH), serves as one of the largest luxury goods providers in the world, trading in over 65 countries and employing over 30,000 individuals. With the concept of consumer value ever being redefined relative to the constricting nature of the current economic climate, one could be forgiven for imagining that the process of marketing luxury products/services to an increasingly conservative consumer base would be a difficult one to maintain successfully. In spite of this, LVMH has upheld its profitability when so many of its competitors have failed to do so.
At the forefront of the 50 or so brands that fall under the LVMH umbrella is the company’s flagship marque– Louis Vuitton (LV). Despite a recent slump in demand within the luxury leather goods industry, LV has proven to be representative of the adaptable nature of the conglomerate as a whole. Whereas for many, the must-have features of yesterday are today’s can-live-withouts (Quench, 2008), LV has adopted a consistent, innovative marketing strategy to ensure that whatever it chooses to sell never falls into the latter category in the minds of customers.
This piece intends to
References: Anonymous, (2009). The Substance of Style: LVMH in the Recession. Economist, 19th September 2009, Vol 392 Issue 8649, p79-81. Anonymous, (2009). Company Spotlight: LVMH. Datamonitor.com (Accessed 22nd February, 2009). Anonymous, (2009). LVMH Moet Hennessy Louis Vuiton SA. Datamonitor.com (Accessed 22 February, 2009). Arnault, B., (2009). ‘LVMH: Group Mission and Values’, (Accessed 25th February, 2010). http://www.lvmh.com/groupe/pg_missions.asp?rub=2&srub=1 Brady, M., (2010) Chadha, R. & Husband, P., (2007). The Cult of the Luxury Brand: Inside China’s Love Affair with Luxury. Nicholas Brealey Publishing. Chevalier, M. & Xiao Lu, P., (2009). Luxury China: Market Opportunities and Potential. Wiley & Sons. Curtin, M., (2009). China’s Taste for Luxury. Wall Street Journal (Eastern Edition), October 21. Daneshku, S., (2010). Demand Rises for LVMH Luxury Items. Financial Times, 4/2/10. Fellenz, M. and Brady, M., (2010). Managing Customer-Centric Information: The Challenges of Information and Communication Technology (ICT) Deployment in Service Environments. International Journal of Applied Logistics, Forthcoming. Fleisher, C.S., Wright, S. and Allard, H.T., (2008). The Role of Insight Teams in Integrating Diverse Marketing Information Management Techniques. European Journal of Marketing. Foedermayr, E.K., and Diamantopoulos, A., (2008). Exploring the Construct of Segmentation Effectiveness: Insights from International Companies and Experts. Routledge. Grönroos, C., (2006). On Defining Marketing: Finding a New Roadmap for Marketing. Marketing Theory, 6(4), 395-417 Ivy, J., (2008) Kotler, P., Keller, K., Brady, M., Goodman, M., and Hansen, T., (2009). Marketing Management, First European Edition. Pearson Education. Kotler, P., Armstrong, G., Wong, V. and Saunders, J., (2008). Principles of Marketing – Fifth European Edition. Prentice Hall. Lodish L., and Mela, C., (2007) Quelch, J., (2008) Zineldin, M., and Philipson, S., (2007)