Brand Test DriveBU732

Strategic Brand Management

Vibhor Arora | 115804000

Brand and the History

Founded in 1854, by Louis Vuitton: Malletier a Paris

1896 Georges Vuitton designed the famous ‘Monogram Canvas’

1920 - Global Expansion

1930 – signature bags launched

Brand and the History1959 – started using Monogram Canvas for Purses, Bags, and Wallets

1987 – LVMH formed

1998 – Marc Jacobs appointed as the Art Director

2000 – Launched new product lines

2009 – More than 300 stores globally.

– Opened new stores in Brazil, India & China

The CompanyLouis Vuitton Moët Hennessy - LVMH - world's largest luxury conglomerate

60 different brands

Headquartered in Paris, France

The merger between the luxury leather goods company Louis Vuitton and the liquor company Moet Hennessy took place in 1987. CEO is Bernard Arnault

LVMH Companies & Brands

This information is sourced from company’s website – www.lvmh.com

Louis Vuitton Products

Louis Vuitton Products

Louis Vuitton Products

LV – The Brand Value26th spot on the ‘BrandZ Top 100 Most Valuable Global Brands 2011’ list

6th spot on ‘Top 15 Luxury Brands’ list

LV brand is worth $24.3 billion (23% of company’s value)

The Brand Identity•Ul

tra Luxurious Goods, Monogram, High Quality

PHYSICAL•El

egant, Subtle, Comfort, Classy

PERSONALITY

•Legacy, Tradition

RELATIONSHIP

•Art of travel, Craftsmanship, Exclusivity, Elite Clientele

CULTURE

•Understated Luxury, Affluence, Success

REFLECTION

•Symbol for Social Status

SELF-PROJECTION

The Brand Experience

Exclusive Stores | Advertisements and Celebrity Endorsements Public Relations | Brand Recognition | Different treatment for Rich-&-Famous than a regular customer | Association with the Brand Community | Customers from top 1% on affluence scale

Elements of Brand Experience - Endorsements

Elements of Brand Experience - Stores

The Elite LV Community

Louis Vuitton’s brand community is the unique group of elite loyal customers that seek validation from fellow buyers for their choice of brand and the superior quality of product than other brands.

To create a Brand Community, LV has all the required elements:

Strong Brand Story / AssociationsCollaboration Among CustomersIdentifiable Brand elementsUnique Culture

Key Competitors Although LVMH (parent company) owns or has stakes in majority of luxury labels but still they are not untouched from the competition from brands of similar stature, such as:

DifferentiationWith such a cut-throat competition in hyper-luxury goods market, LV leverage their Heritage, Quality and “No Discounts” factors to differentiate from competition

Price is never a differentiator, because luxury goods industry works against the law of economics. More price leads to more sale and desirability factor

LV’s association with top celebrities, more than any other competitor brand, also helps in attracting more customers.

What’s Next? - Recommendations

Focus on its core activity of producing leather products and they should scrap the product lines that are not generating much profit such as: certain accessories, perfumes, books, etc.

Enhance the exclusivity factor especially to compete with Hermes by launching limited edition or special edition products.

Launch customized products for emerging markets like China, India, Brazil, Russia and Mauritius.

Launch a economic line of products to fight piracy – may be as a shadow brand.

Thanks