Louis Vuitton Case Study

For years, Louis Vuitton enjoyed high profit margins from the luxury market in Japan until other competitors such as Prada and Gucci entered the market. Counterfeiting also became a threat to the firm’s brand by satisfying consumer demand at lower prices. Other external global environmental problems included highly priced products, limited availability in stores only, and a heavy dependency on the Japanese market (Pearce & Robinson, 2013, p. 14-18). Moreover, “the after-shocks of the global recession were a threat to Louis Vuitton’s luxury business in Japan”, and Japanese women became less interested in the brand’s products (Pearce & Robinson, 2013, p. 14-18). Alternatively, Louis Vuitton could “reinvent itself and regain what used to be its well-attested

As the business model addresses “how the company makes money in this business”, Louis Vuitton’s business model in Japan can be simply explained as selling products through directly owned and controlled stores. A good business model can guarantee the success of business. LV’s business model in Japan successfully drove it to the world’s largest market by strictly following the principles and benefiting from the external environment.

The following case analysis will assess Coach Inc. and its strategy in the accessible luxury brand goods market. The coach strategy focuses on its luxury rivals in matching key quality styles while offering it at a cheaper price. The company offers most products at a 50% off discount price less than other brands which gives them a competitive advantage pertaining to its customer base. Coach marketed its products to middle –income consumers desiring taste of luxury, but also affluent and wealthy consumers with means to spend considerably more on a handbag (Gamble, 2012. P.C-73) .The Company also has several other strategies such as to increase global distribution, improve same store sales productivity and continue its multi-channel business model which includes indirect whole sales to third party retailers but also focuses on direct consumer sales. Coach has done well in the luxury goods industry but the companies profit margin is still below the levels achieved prior to the onset of a slowing economy in 2007 ( Gamble, 2012. P.C-73.The Company had experienced a decline in sales as they are unsure if the company recent growth could remain constant and maintain their competitive advantage with other successful luxury lines Michael Kors, Salvatore Ferragamo, Prada and Dolce & Gabbana.

The Kate Spade & Company online presence is engaging. The many products and services are displayed in a specific fashion giving shoppers a personal feel for the look and quality of the offerings without the requirement of being present in the store. Also, a website that is easy to maneuver and is updated on a regular basis to meet the demands of the consumer. In addition, this company offers press releases and top news information promoting their product.

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

Executive Summary: Luxottica Group Luxottica Group is a major player in the modern business world and a prime candidate for a marketing case study. Dominating the luxury eyewear market, Luxottica employs several notable marketing strategies in its highly profitable business model. To understand the reasons for the success of this company, several factors relating to marketing must be examined in detail. This case study will examine several of Luxottica Group’s sustainable competitive advantages, including market dominance, vertical integration, and luxury/brand recognition.

For approximately twenty years, Louis Vuitton has played a significant role in Chinese luxury market. Louis Vuitton is the world’s most valuable luxury brand, which was founded by Vuitton in 1854 in France. The 2013 revenue of Louis Vuitton was $9.4 billion and $3.9 billion within China. (Forbes, 2016) The great achievement depends on unique marketing strategies. Therefore, this report will examine the strategies of LV under the framework of the Marketing Mix and SWOT. In addition, give recommendations with PEST to achieve further development.

No two-brand identities are the same and it is crucial to consider what type of clothing the company will supply to its customers. There is a large difference in the way luxury and fast fashion brands operate which translates to how they create and maintain a brand identity. Some of the major differences are that luxury brands do not respond to rising demand because they want their product to be difficult to buy. The role advertising has for luxury brands is not to sell but to create status. Luxury brands do not use the Internet even though the importance of online coordination was just discussed. Finally, luxury brands do not look for cost reductions (Nieto). They still create an identity by creating a personality or an idea that represents the brand,

Chloe is a maison (subsidiary) of Richemont SA. Apart from Chloe, there are other world’s leading luxury goods companies managed by Richemont like Cartier, Lancel, Alfred Dunhill, Montblanc to name a few. Perhaps, that could be one of the most valuable resources Chloe enjoyed over competitors. According to Geoffroy de La Bourdonnaye, the Chief Executive and creative director, the company generates a return on investment by focusing on a core line of business and competencies. Chloe engaged in a wide variety of product categories and continue to epitomize the free spirit and values of femininity, modernity, effortlessness and grace. Due to the labor intensity in the fashion industry, Chloe has made human its most important resources, i.e. the skills and capabilities of the design and production teams, the logistic team, marketing team, store personnel and other experts. Being part of Richemont’s Maison, added value to Chloe brand. Andrew & Frédéric (2015) report shows that Chloe capabilities gave it the privilege to establish strategic alliances with other maisons which resulted in being able to produce successful, creative fashion collections. Justifying that, the analysis of the driver of the performance postulates that fashion collection made by a group affiliated brands with foreign experience will be three times more creative than the collection made by the

These flagship stores work simultaneously as communication bridges towards the costumers to transmit the vision of the company, and as a booster for restoring Burberry’s strong identity. Especially if we lean on the locations elected: Barcelona, London and New York, which are cities where cutting-edge fashion is more expressive, the installation of this showcases in those locations permits a softer integration of this so used classic brand in the ultimate fashion segment. This way the communication of what the new position of Burberry is (the niche referred before) turned to be faster and clearer. The product line was updated dividing the products into two new categories: continuity and fashion oriented. Continuity products are expected to have a longer life cycle over the years while the fashion oriented ones tend to be available in the market for shorter periods of time as they are trend sensitive and they enter/leave the market whenever the collections are new or old. This new product portfolio satisfies then the cross-generational new concept of the brand. In addition, there were introduced three primary collections: menswear, womenswear and accessories and the brand switched name from Burberry’s to Burberry. In this context the advertising efforts to

In nowadays, buying luxury brands is not only showing a sign of wealth, but also a kind of rewards for people’s hard working. Luxury products sell high market prices because of their designs, brand names, and the qualities. People want to buy luxury products because their quality is better than target brands. For example, the brand like Bottega Veneta is known for its traditional design of leather goods; their handbags are handmade in Italy. Comparing to Bottega Veneta to target brands, Bottega Veneta’s design will not easily out of style, but target brands will easily out of styles because their designs are relatively ordinary. However, in the recent year, some luxury brands’ reputation has gone done because those brands were shifting their factories to other countries and then shipping back to Italy just for the label. Technically, the phrase “Made in Italy” is not really manufacture in Italy anymore, sometimes this product 's qualities are not as good as before. There is a rising concern of whether these luxury goods really match with the expensive price tags.

Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues

Under the leadership of Rose Marie Bravo, former president of Saks Fifth Avenue, and a team of highly qualified managers experienced in interpreting and analyzing consumer market trends, they were able to reposition the brand from being an old and unexciting brand to a stylish and innovative one. They were able to give the brand a modern attitude, reintroducing it as a luxury brand, that is both aspirational and functional, and a brand that attracted younger customers, without alienating its core customer base—establish a niche in existing gaps without compromising their core values. Consequently, they have discovered a great positioning between

Cacharel fragrance brand was acquired by the L’Oreal group in 1975 (Insead, 2007). L’Oreal is known as a house of diverse corporate and umbrella brands, namely just a few: L’Oreal Paris, Lancome, Cacharel, Giogio Armani, Ralph Lauren and many others. Each of these umbrella brands has below it numerous products brands and line brands. They constitute so-called a multi-brand matrix (Marketing Mastermind, 2008). Cacharel umbrella brand belongs to the Luxury Products Division, one of three divisions of the L’Oreal group, which offers up-market premium products to consumers. Every umbrella brand has established distinct identity, image to focus on different target market, in turn; the Cacharel umbrella itself is perceived as an encompassing combination of prestige, femininity, charm and romanticism. (Kepferer, chapter 11, p292). As a result, Anais Anais was the most responsible for creating Cacharel’s identity by its extraordinary succeed. In the shoes of Katsachnias, we have been encoding the Cacharel brand identity in some extends, whether it helps to revitalize the brand at its crisis? We continuously perceive this insight in the next question.

This work is an introduction to the fashion industry of Pakistan which has made quite a lot of progress in just a few years. Ten to fifteen years from now, this industry was still unknown to actually exist to the masses. Later with the formation of fashion councils and education centers under the enthusiastic few who wanted to make a difference and promulgate this very institution of fashion, did the very fashion industry took its concrete contour from the old tailor culture that formerly existed. Today it is one of the most progressing industries in the country.