The group has its headquarters in paris, and it is chaired by bernard arnault, the tenth wealthiest man in the world. A very careful distribution strategy, the nodiscount policy and the cautious brand extensions helped develop the brand while preserving the equity. Louis vuitton marketing strategy pdf city of kenmore, washington. Facing a weak economy and a shift in consumer preferences, louis vuitton has been adapting its unique strategy in the japanese market. Yves carcelle, who has led lv malletier from 1990 to 2011 and who was credited with having made louis vuitton one of the most profitable and ubiquitous luxury goods brand, and bernard arnaud have both side by side embodied louis vuitton house and group as transformational leaders. By systematically breaking down the strategy of the single louis vuitton luxury brand into the four ps product, price, place, and promotion, our aim in this paper is to extract the rules or principles of its brand marketing that differ from. According to the financial times, francoishenry pinault of the rival group kering believes his flagship label gucci could one day overtake louis vuitton as the largest luxury brand in the world. The benefit, on the other hand, increased by 18%, to 6.
Introduction louis vuitton, a luxury goods company, was founded in 1854. Request pdf louis vuitton s artbased strategy to communicate exclusivity and prestige the recent global luxury industry has transformed from a constellation of small and mediumsized. Pdf louis vuitton is a brand that has exists for a very long time and it is. Global strategy local strategy company analysis brand positioning cbbe. It is true to say that only through a proactive employment of strategic planning and implementation that a company can differentiate itself from the rest of the competition, as well as fostering strong brand awareness and recognition. The brand itself does not have information regarding its objectives, strategy, tactics, vision statement, or mission statement, but the company that owns it, lvmh, does. Louis vuitton employs a policy of integrity pricing strategy throughout its distribution network. Lvmh has successfully preserved a family spirit that places priority on longterm vision. Request pdf louis vuittons artbased strategy to communicate exclusivity and prestige the recent global luxury industry has transformed. Louis vuitton is the only brand in the world that has no tv commercial, no second product line, no promotion on sales, no free item to give away.
Louis vuitton has been closely associated with various celebrities from different fields so as to position itself superior to its competitors. About louis vuitton products, the high price of their products creates a high quality image and has be seen as a confirmation of product quality. We identified the competitors of louis vuitton to be hermes. Marketing principles of louis vuitton the strongest brand. When he was only sixteen years old, louis vuitton made a decision that would not only change his own life but the lives of his sons and future generations. The paper identifies the strategy along the value chain and its step by step implementation and influence on commoditization. Armani is closing some of its brands due to some inconsistencies between brand, value. Lvmh moet hennessy louis vuitton, better known as lvmh, is a french multinational group, which owns more than 60 prestigious brands around the globe. Louis vuitton s heritage as a trunk maker preceded even the founding of the company. Louis vuitton brand strategy positioning case study if you want to get access to louis vuitton brand strategy analysis including brand essence, brand values, brand character, brand archetype and expert commentary register or log in. Louis vuittons decommoditization strategy elen riot reims management school, reims, france cecile chamaret paris sorbonne university abu dhabi, lea department, abu dhabi. Louis vuitton in japan harvard business publishing education. It is deployed within a framework designed to create and amplify a drive for progress constructed around a unifying program of goals for 2020 shared by all the houses.
Louis vuitton the brand louis vuitton is run by the company, lvmh, which stands for louis vuitton moet hennessy. Louis vuitton in bollywood targets both highnetworth individuals and the rising cocooners because of the popularity of the bollywood industry in india. Marketing strategy of louis vuitton has always positioned its products as a symbol of superiority and had build reputation over a period of time. The product strategy and mix in louis vuitton marketing strategy can be explained as follows. Louis vuitton s artbased strategy to communicate exclusivity and prestige. In the last decade, japan has been louis vuitton s most profitable market, but it seems that the global economic crisis has resulted in a decline in sales.
This case study deals with the opportunities and challenges of louis vuitton. A swot analysis of lvmh can be helpful in understanding the. Pdf a case study of louis vuitton bancha jenpiyapong. It has since become the classic symbol of the louis vuitton brand. Louis vuitton is the worlds most valuable luxury brand and is a division of lvmh. Luxury brand strategy of louis vuitton 6776 words bartleby. It makes 100% pure leather products and pays utmost care to not let be the designs and make of the product easily imitable. These different strategies in pricing have helped louis vuitton attract highend market. In the history of louis vuitton, sale prices were never offered. Louis vuitton has made handsome investments to maintain the rich quality of its products. Louis vuitton is one of the most prestigious luxury fashion houses in the world.
Louis vuitton is more determined than ever to preserve creativity in protecting its brand in the interest of its customers, its employees and those who suffer at the hands of the counterfeiting industry. The groups vocation is to ensure the development of each of its houses while respecting their identities and their autonomy, providing the resources needed to create, produce and market their products and services through carefully selected channels. Louis vuitton is one of the oldest fashion houses with more than 150 years of history. Louis vuitton 2 strategic profile and case analysis purpose louis vuitton lv was a strongminded young boy, who was born in 1821 into a farming family in the capital of france called anchay. Consolidation louis vuitton has consolidated its watch operations in geneva, with an eye for synergy and growth. Superior craftsmanship, exclusivity and association with high luxury add to louis vuitton s advantage. Due from one month from the date of original issue.
Therefore, the current rise of profitability of louis vuitton is not a coincidence. What steps should louis vuitton take to address upcoming challenges. Rohwedder, johnson, 2008 this paper will try to explain which differentiation strategies zara uses to achieve such success, and which improvements can be made. Opening of the louis vuitton shop at 4 neuve rue des capucines 1858. By systematically breaking down th e strategy of the single louis vuitton luxury brand into the four ps product, price, place, and promotion, our aim. At the time, horsedrawn carriages, boats and trains were the main modes of. Louis vuitton also has no set of products for sales, no outlet, no license for any other third party.
Louis vuitton is a premium luxury brand that sells finest products. Louis vuitton brand is easily recognizable because of its logo and monogram canvas on most of its products. Georges vuitton, louis vuitton s son, inherited the company after his fathers death in 1892. Marketing principles of louis vuitton the strongest brand strategy by shinya nagasawa abstract.
Louis vuitton is a potent symbol of modern style and creates innovative, elegant, and practical modern luxury items. Colin mitchell oversees ogilvys global strategy and planning group, which handles some of the worlds most famous brands, including louis vuitton. The purpose of this paper is to describe and interpret one type of successful reaction to this problem. Following the death of his father in 1892, george vuitton began a campaign to build the company into a worldwide corporation. Because of their commitment, hundreds of thousands of nonsurgical masks are being produced and donated to healthcare workers on the frontline. Between 1997 and 2001, lvmh grew from 24 to 63 brands.
Therefore, this article addresses the history of lvmh and louis vuitton, the structure of the 4 ps of marketing, and the analysis of the key marketing strategies of louis vuitton. The contemporary designs of the products have helped the company to maintain a premium pricing policy. This strategy, however, implies high advertising resources in order to be able to reach the desired segment. Louis vuitton louis vuitton, he is historys most prominent french designers of leather goods, in 1854 in paris, opened his own name the first suitcase shop.
Using digital presence for brand repositioning and crm. Marketing principles of louis vuitton the strongest brand strategy. Armani and inditex are fashion retailers that have grown thru different diversification strategies. Louis vuittons artbased strategy to communicate exclusivity and. By systematically breaking down the strategy of the single louis vuitton luxury brand into the four ps product, price, place, and promotion, our aim in this paper is to extract the rules. Luxury strategies the end of an era antoine vaugier 2. A century later, louis vuitton luggage and leather goods to become one of the best areas of the brand, and become a symbol of high society. The brand sells a wide variety of products, from luggage and clothing to writing accessories, such as pens and notepads. Louis vuitton is also famous with using the product bundling strategy, which aims to sell more than one product in a combination form, this strategy is used for customers who prefer grouped and combined packages rather than individual products. Louis vuitton, world of experiences the fashion retailer. In a previous post, i analysed diversification and segmentation in the fashion retail industry.
Marketing mix of louis vuitton louis vuitton marketing mix. The authenticity of louis vuitton products is guaranteed in louis vuitton s exclusive distribution network. S market and, in 1896, the company launched its signature monogram canvas and secured worldwide patents for it. By systematically breaking down the strategy of the single louis vuitton luxury brand into the four ps product, price, place, and promotion, our aim in. Develop an argument supporting the importance of a strategic plan for the success of the defined business. Its products include leather goods, handbags, trunks, shoes, watches, jewelry and accessories. Louis vuitton wishes to thank the hundreds of artisans who have volunteered at louis vuitton s ateliers across france. Strategic appraisal of louis vuitton academic writerz. Its effectiveness is equally based on vectors of ongoing improvement and. Louis vuitton becoming successful in the luxury market. China is one of the key markets in the global pricing strategies of luxury companies. The french luxury holding, owner of brands such as louis vuitton or dior, ended the year with a 10% growth. Louis vuitton company profile pdf city of kenmore, washington.
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