Marketing Strategy Louis Vuitton – December 21, 2011 LVMH Marketing Strategy Analysis Focusing on the LV Industry Brief: Louis Vuitton Malletier, commonly referred to as Louis Vuitton and sometimes abbreviated as LV, is a French luxury fashion and leather goods company. The company was founded in 1854 and is today the cornerstone of LVMH and its major divisions, which make up nearly a quarter of the entire group. LVMH is a world leader in the luxury industry. It was created in 1987 as a result of the merger of three brands: Louis Vuitton, Moe, and Hennessy.
This union resulted in a global group uniting numerous brands in all luxury sectors for distribution, such as perfumes, jewellery, watches and champagne, in addition to leather goods and spirits. Through its brand development policy and expansion of its international distribution network (more than 2,300 stores worldwide), LVMH has been part of strong growth since its founding in 1987. It has 77,000 employees, 74% of whom work outside France and share the same values as the Group.
Marketing Strategy Louis Vuitton
Corporate Strategy: Strategic Segmentation: In the luxury sector, LVMH has invested in six strategic business areas: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, Selective Distribution and other activities. Louis Vuitton strives to express the highest quality of Western “Art de Vivre” throughout the world through its products. In addition, we strive to become synonymous with elegance and creativity in leather goods by combining tradition and innovation through our products and stimulating dreams and imagination.
Tesla’s Marketing Strategy: 12 Key Lessons (2023)
How Louis Vuitton Attracts Customers: Louis Vuitton is a luxury brand owned by LVMH, the most valuable brand in the world of luxury. From 1854, it was successful, first with luxury luggage and then with the fashion industry (particularly the Marc Jacobs collection). Louis Vuitton has launched many advertising campaigns, but a decade of fashion communication has overshadowed the house. Companies realized that customers were less sensitive to the values associated with their brand.
Therefore, the company wanted to set commercial communications aside by focusing on more institutional communications to enhance not only the product, but also the house. Louis Vuitton has decided to shift from product communication to corporate communication. The goal is to convey the brand’s values and philosophy, and its central theme, travel. The internet seems to be the best communication medium to build a close relationship with your customers (interaction, photos, videos…). The primary value conveyed is travel.
Today, this concept has evolved from travel habits (mass tourism, low-cost development) and has become very common, and there is no magic to travel or escape. In this new communication campaign, LV intends to use the concept of a journey from idea to idea. Physical personal travel (passenger). The main objectives of LV’s two advertising companies using the concept of travel: Long-term objectives: The Group aims to ensure the sustainability of the company by focusing its major brands as capital (pillars) in the five areas of LVMH. LVMH also has an opportunity to gain market share and reduce the supply of new (accessories). We must continue to invest for growth. Short-Term Goal: LVMH wants a quick return to strategic activities such as internet sales with “eLUXURY”. com” These activities can be kept in the portfolio because they do not monopolize significant energy in the long run and are a source of direct profitability (high margins). Features.
LVMH also aims to make people feel the big difference between all brands and Louis Vuitton. Therefore, powerful images are required to achieve these goals. One of the biggest problems affecting LV products is counterfeit products. The company is hard at work with awareness campaigns, distribution of warning notices to the company, registration of trademarks and designs, and some activities with the Union des Fabricants. public interest. Registered associations that carry out activities in the field of trademark protection.
So Haute Right Now: How Louis Vuitton Are Killing It On Social Media
Authenticity evaluation is banned, such as officially sanctioning the only shop that can verify authenticity, while informing details to be considered before evaluation through the media. Is LV good? real or not. By choosing not to produce cheap products at all, LV also forbids secondary operations or so-called cheap alternatives. This is a good choice for companies to stay in the high-end realm, although there may be some restrictions on further expansion. Another principle of LV products is that LV is independent production, which prohibits the production of products in the market to control the brand value and actually control the price. LV also offers special ordering services for customers who wish to purchase customized and made-to-order products. Price: The price of LV products is very high, but the value is also very high. Price is widely accepted by women.
The company then tries to maintain customer confidence in reliable pricing. Especially inflated prices, bargain sales, value set sales, price surprises, odd pricing… Where: LVMH has no boundaries. Its market is global, taking into account national or regional domains. The company has a geographic strategy based on the phrase “Think globally, act locally.” The value of the global market lies in overcoming the vicissitudes of economic conditions (changes in exchange rates etc..), society (wars etc..) and demographic issues (development of Asian countries etc..). To meet specific market needs better than any other possible method: Italians, for example, prefer champagne-specific blends of wines and grape varieties, as well as sweet-tasting champagnes that can be tailored to suit them. On the other hand, internationalization of sales allows the company to respond to various changes in consumer behavior, and LVMH is also trying to develop new markets with high potential, such as China and India.
LVMH benefits from the liberalization of world trade. Promotion: Compared to most companies that use mass advertising, LV never advertises on TV and advertises only in magazines and newspapers with pictures as a non-aggressive sales advertisement. The brand represents discovery, travel, sophistication, elegance and creativity. When those words relate to society, we understand that communication has to be really special. Louis Vuitton certainly does not use mediums such as radio or television that are too popular. Louis Vuitton prefers to organize special events such as the women’s magazines (Elle, Vogue, Madame Figaro… Louis Vuitton concours d’Elegance cars and America’s Cup (also known as the Louis Vuitton Cup). Brand uses a storefront built for advertising, like any other company in New York, with Jennifer Lopez as the brand’s new ambassador for Louis Vuitton’s flagship products, which can be seen from a height of over 20 meters.
Shows are also a great way to show them off. The target audience is not only the general public (hundreds of people) who attended the parade, but also those who receive news about the parade through media such as the media. LV’s marketing strategy is also based on a special diversification process. To remain number one in the luxury segment, the LVMH Group typically offers similar product lines in four locations around the globe, but in different ways. LVMH is committed to reaching new customers who are willing to “spend.” They give you access to luxuries with complementary products that already exist in the range. No new or additional skills are required.
What Is Pull Marketing Strategy? Types, Examples & Advantages
This diversified marketing involves significant innovation in both clothing cuts (perfume packaging) and handbag construction (new materials). All of this requires research and development to get ahead and bring together the best designers to spot trends as quickly as possible. Louis Vuitton’s weaknesses and suggestions for a better strategy: LV products are the most copied in the world, which is not the case with other luxury companies such as Hermes. Counterfeiting is a serious problem in the luxury sector.
If you “extend” your brand, you may lose your image and reputation. To address this, Louis Vuitton is committed to counterfeiting globally, especially in countries where counterfeiting is prevalent, by setting up specific teams to raise consumer awareness and arrest counterfeiters. The price of LV products is also not the same worldwide. 50% higher in Asia and 25% higher in the US. In addition, foreigners residing outside the European Community can benefit from tax rebates.
Therefore, it is more interesting for many foreigners to buy Louis Vuitton products in France, and thus we are seeing a significant increase in traffic to this brand. In fact, there are many consumers who buy LV products in France and sell them to foreigners. Others work with foreigners and accept intermediary roles in purchasing these products.