Post on 23-Oct-2015
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DESCRIPTIONLouis Vuitton case study
By: Mary, Chayanee, and Sasima
HistoryEarly Days (1854-1892) 1854 - Louis Vuitton opens first store in Paris1885 - first LV store opens in London, on Oxford Street1892 - Vuitton dies; the Vuitton company begins selling handbags. Golden Age of Louis Vuitton (1893-1936) 1893 - Georges (Louiss son) begins his campaign to make the company into a worldwide corporation. 1936 - The golden age of Louis Vuitton ends as Georges Vuitton passes away. Estimates attribute Georges Vuitton with over 700 new Vuitton designs.
HistoryModern Age of Louis Vuitton (1937-1996) 1978 - Vuitton opens its first stores in Japan, in Tokyo and Osaka. (Sales in Japan would come to account for nearly half of the company's total revenue by the 1980s.) 1984 - Vuitton expands its presence in Asia by opening its first store in Korea, in Seoul.1987 - Mot et Chandon and Hennessy, leading manufacturers of champagne and of brandy, respectively, merges with Louis Vuitton to form the world's largest luxury goods conglomerate, LVMH. The group is partly owned by the Christian Dior group, and Bernard Arnault is Chairman and CEO of both companies. 1992 - The first store in China is opened at the Palace Hotel in Beijing.
HistoryMillennium Age of Louis Vuitton (1997-present)1997 - hires designer Marc Jacobs to be the label's artistic director 2006 - opens its first store in Norway
Mission StatementLVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy.Five priorities reflect the fundamental values shared by all Group stakeholders: - Be creative and innovative - Aim for product excellence - Bolstertheimageofourbrandswithpassionate determination - Act as entrepreneurs - Strive to be the best in all we do
Target MarketLV uses demographic targeting strategy to target their customers Both men and women Age: ranging from young adults to seniors (22 65 yrs old)Income: around $5,500 or above per month
Selling PointFashionableDurable goodsGood quality productLong product lifeExclusivityPrestige imageFeel goodFit into high-class society Practice ego and power
Main Products: Leather Bags and WalletsHandbagsLuggageCosmetic BagsOriginal Product Line: MonogramExpanded its product lineMonogram DenimMonogram MulticoloreMonogram VernisDamier CanvasProduct
ProductOffer more types of product including:TimepiecesShoesAgendasJewelrySunglassesBelts, scarves & Accessories
ProductThree Levels of Product of Louis Vuitton
PricePremium PricingLuxury imageSelling PointNever on sale!!Price range: Handbags: $550 - $3,700Wallets: $200 - $700
PlaceDirect channels: Free-Standing Store
Department Stores:Macys New YorkBloomingdalesSaks Fifth AvenueExclusive DistributionLimited number of stores and retailersPlace
PromotionEmphasize on personal sellingDont emphasize on sales promotionTo reinforce their luxury imagePRSponsorshipLouis Vuitton Cup 2007LVMH Young Artists AwardLVMH Website - The Magazines
PromotionAdvertisements:MessageConvey luxurious imageMeans of mediaHigh-end Fashion MagazinesEg. Vogue, ElleBillboards
Endorsements: Jennifer Lopez, Kate Moss, Uma Thurman, and Scarlett JohanssonPromotion
New advertising campaignPromotion
Imitation or Real?Fake LVs are a continuous problemSpend $10 million a year on ripoff battlePart of sum goes to lobbyistsBiggest sources of counterfeit goods:Turkey, China, Morocco
Imitation or Real?LV has adopted a zero tolerance policy against counterfeitingIn 2004, the brands firm stance led to13,000 legal actions6,000 raids947 arrests
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