Lvmh Marketing

3657 Words May 22nd, 2011 15 Pages
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
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As such, LVMH has steered much of the focus of its central brand eastwards, to an area where consumers have more disposable income than ever and are ready and willing to embrace the influence of their Western counterparts – China. All the while, the company makes no substitute for quality by bringing the very same products to the Chinese market, making no concession in pricing, treating the Chinese market as that of a developed country, where demand for the service provision on offer from LV is growing faster than anywhere else.

Understanding Consumer Behaviour

Consumer decision-making is needs-based. Consequently, the process of understanding consumers does not so much rest on identifying the behavioural patterns of a group and then choosing to pitch a product to them, but rather on identifying the specific need which is common to certain people and accordingly striving to satisfy that need (Brady, 2010).
Maslow would classify the specific need of those within LV’s target market as one related to ‘esteem’, or…