Marketing Strategy Of Louis Vuitton

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

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

Meanwhile, some consumers were also attracted by the counterfeit products, which have the same design and considerable quality. The situation of LV in Japan seems to be fierce, however, with effective solutions, LV can also seize the opportunity to sustain profitability in Japanese market rather than just survive. As it is stated in the case that Japanese consumers had been holding the desire for inexpensive luxury products from Louis Vuitton. Therefore, to solve this problem and attract more customers, LV should strive to make “inexpensive” products by increasing the value of products, lowering the costs and prices, and finally creating high value for the consumers. As the scandal of counterfeit sold on the websites in 2008 led to a decline in the sales of Louis Vuitton products, it can be viewed as a valued opportunity for Louis Vuitton to establish its own business online since it can both add selling channels and empower the company to fight with counterfeiting.

A marketing mix consists of Product, Place, Price and Promotion. It is fundamental to understand these four elements for developing an effective marketing strategy.

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.

Marketing mix is the set of controllable tactical marketing tools which that the firm blends to produce the response it wants in the target market.

Throughout centuries, luxury brands such as Chanel and Louis Vuitton had been highly popular among young Korean female consumers. However, after explosive growth since 2010 driven by Chinese consumers, there has been a clear sign of slowdown. To be more specific, Louis Vuitton’s sales growth has been decreasing at major department stores in Korea for years. The industry officials state that changing macro-trend in Korean market has contributed to such decline. There has been increase in individual lifestyle such as eating, drinking, and travelling alone, which led consumers to seek for their personal value rather than passively following the trend. Moreover, spending patterns of consumers have changed from ‘owning the product’ to ‘getting an experience’. In this regard, this paper aims to provide new guidelines for ‘Louis Vuitton’ to resolve its declining market share and regain its status as a truly ‘Myeong-pum’ brand in the Korean luxury market.

Louis Vuitton is considered under the luxury goods industry. The luxury goods industry is a high profitable industry with low outside threat. There are only few large players in the industry and they server to the wealthiest people in the world. The luxury companies have high power to control the price so they have ability to grow sustainably.

The Tiffany & Company is introducing a new product line by the name of Tiffany 's Essentials. The line will offer authentic luxury designer handbags along the lines of Gucci, Chloe, Dior, Fendi, Prada and many more. As concept of luxury changes, marketers of high-end products are wrestling with the challenges of maintaining exclusivity while obtaining higher sales. Having a well-known name as Tiffany and Company we have no limitations to create luxury pieces for the luxury lifestyles. The following paper will emphasize our product, our target market and our marketing objectives as to how we will market our handbag using a vital marketing mix. It will also provide our major competition in both the diamond industry as well

China: A market considered to be a giant in fashion and luxury. As lucrative and attractive for many brands as it may seem, it is equally delicate and peculiar to operate in and grasp its opportunities and benefits. Therefore, as high of a return that this market can bring to a brand venturing into it, as high of a risk and challenge it is to successfully operate in it.

Finally, LVMH must protect its brand against counterfeit and dilution. With the recent expansion of the internet and globalization, availability of products has grown to new heights. In order to keep the brand management that LVMH desires, it must tightly control the availability so not to dilute the market and lower the perception of their brand. Also with the increased knowledge and resources of counterfeiting, LVMH needs to keep a grasp on illegal goods. Not only are the goods becoming increasingly difficult to distinguish real from fake, but the channels of distribution of counterfeit products have increased. Europe customs believe that 75% of counterfeit luxury goods originated in China or Hong Kong. Online stores such as EBay also have seen a large amount

Louis Vuitonn is one of the world’s most highly recognised and highly expensive fashion brands. Dealing from handbags, luxury trunks and leather goods to ready-to-wear, shoes, watches, jewellery, accessories, sunglasses and books. They have a wide range of merchandise and the logo is known throughout the world its brand value is at 28.1 billion and it is ranked number 14 on the world’s most valuable brand. Louis Vuitton or the full name Louis Vuitton Malletier is a French fashion brand it was founded in 1854 on the Rue Neuve des Capucines in Paris, France. The brands logo is Louis Vuitton’s initials LV, and it is the monogram that appears on most or near all of the products from handbags to jewellery. It sells its products online, boutiques and high end department stores. The Louis Vuitton Brand and the famous LV monogram are among the world's most

Louis Vuitton is able to sell more while remaining fresh and retaining its cachet in sever unique ways. The company first accomplished this back in 1987 when they created a category membership by comparing the brand to exemplars. That is, Louis Vuitton formed a conglomerate with the manufactures of champagne and cognac (Kotler, Keller 289). This merge placed Louis Vuitton in the prestigious and elite brand category, which helped the company to create a membership in this category. This conglomerate could also be seen as a point of difference (POD) because they are creating an association with luxury goods. Moreover, the increasing pricing strategy boosts Louis Vuitton’s image and makes the products more of a novelty because only the most elite consumers can afford to purchase the brand. The 60 plus hours spent on producing these items further its differentiation in the luxury handbag market. This adds quality to the product, which no other company provides. These strategies increase the company’s position in the market. Recently, the company has created POD’s by partnering with famous sports stars. In doing so, Louis Vuitton is expanding their brand image, which in turn creates a new customer segment. Now, the brand will be associated as sporty, whereas before, they were only known for as fashionable, and only had “high-fashion celebrities” endorsing the brand (Kotler & Keller). Another way the company has expanded their image and customer segments in by focusing on travel.

LV should focus more on the Europe and US markets, and the absolute and aspirational customer segments. According to date of world luxury goods market study, both Europe and Americas markets together shared over 65% of the total market in 2011, while they were also predicted to have over 5% growth in next year. What is more, data of competitor sales analysis also show that most of them had high revenue in those two markets. As it is well known, Europe and Americas are the traditional market for the luxury industry and almost have huge customer base who are main the absolute and aspirational customer segments. As to focus on them, LV needs to spent more money on built high as well as upper class fashion and offer more made-to-measure and high quality product and/or services. In the same, the degree of rivalry was high in this two market where all the luxury companies targeted and

Owing to the successfully accomplishment of " low price, quality assurance" and excellent online sales channels, UNIQLO sees itself as nicely positioned to weather the China's slowing economic growth (Roxburgh, 2016). Meanwhile, serious competition with other apparel retailers is the primary obstacle to the development of UNIQLO. In the view of Zhu (2013), the Chinese market is massive, diverse, and has enormous potential. For the sake of truly thrive in this market, there is a need for foreign brands authentically understand the changing characteristics of Chinese customers, and establish quality products and services to satisfy their requirements. One recommendation is because this report use the SWOT analysis and Marketing Mix to assess UNIQLO's marketing strategies in China, it is worthwhile for further researchers to utilize other marketing tools to evaluate UNIQLO such as Porter's Five Competitive