Founded in 1854 the luxury apparel and fashionable accessories seller Louis Vuitton is the leading player in the segment dealing in clothing, ready to wear leather items, watches, shoes, jewellery and sunglasses. It operates in more than 60 countries globally with more than 500 stores in these nations.
Table of Contents
Segmentation, targeting, positioningin the Marketing strategy of Louis Vuitton –
Louis Vuitton is one of the trendsetters and fashionable brand which uses a mix of demographic and psychographic segmentation strategies.
Differentiating targeting strategy has been used by LV to satisfy the changing needs of the customers.
It has always positioned its products as a symbol of superiority and had build reputation over a period of time. LV uses value-based positioning strategies to attract the potential customers in the market.
Marketing mix – Here is the .
Mission- “Using exceptional designer techniques to bring in elegance & distinctiveness to people through different offerings.”
Vision- “Not Available”
Tagline-“The gift workshop”.
Competitive advantage in the Marketing strategy of Louis Vuitton –
Strong Parent company: LVMH (Moët Hennessy Louis Vuitton), a multinational luxury goods provider is the parent company of Louis Vuitton. It has dedicated 125000+ employees across the globe. LVMH is financially strong and is handling diversified 6 businesses.
Global Expansion: LV is aggressively expanding its operations in developed as well as under developed nations which are helping the company in increasing its sales and shifting its dependence from saturated developed nations to developing countries.
BCG Matrix in the Marketing strategy of Louis Vuitton –
In the BCG matrix its apparel business, ready to wear leather items and sunglasses is Stars while shoes, watches and jewellery are question marks in the BCG matrix due to competition from a large number of small and big players in these segments.
Distribution strategy in theMarketing strategy of Louis Vuitton –
LV markets its products & accessories through its own outlets globally and through supermarkets /apparel chains which help them to counter counterfeit products and at the same time control the quality and product pricing.
Brand equity in theMarketing strategy of Louis Vuitton –
Popularly known with name LV, Louis Vuitton has been successful in emerging as one of the best luxury brands. For 6 consecutive years, it has been named as the most valuable brand in the luxury segment globally. Some of the influential brand endorsers of LV are Michael Phelps, Angelina Jolie, Bono and the recent one is Will Smith’s son Jaden. The brand LV has been valued $ 27.4 bn (as of May 2016) and it has been ranked at 19th no. in the Forbes list of world’s most valuable brand.
Competitive analysis in the Marketing strategy of Louis Vuitton –
In a luxury or a high-end segment garnering reputation is absolutely necessary for the survival of the brand. Louis Vuitton has been closely associated with various celebrities from different fields so as to position itself superior to its competitors. Hermes, Gucci, Chanel, Prada etc are some f the brands which compete with LV in some of the other product categories.
Market analysis in the Marketing strategy of Louis Vuitton –
Changing life style, fluctuating exchange rate, climatic conditions, sociocultural change and evolution of digital media even in the underdeveloped nations are the factors which are affecting the companies in the luxury apparel industry. Companies in this segment are more focused on the service part, promotions through different mediums and creation of touch points.
Customer analysis in the Marketing strategy of Louis Vuitton –
Louis Vuitton is the manufacturer and distributor of the luxury goods able to attract customers in the age group of 20-45 years. Customers of LV are more inclined to superior design, perfection and art.
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LV's digital marketing strategy is strategically inclined and defined. It can be further explored utilizing the POEm model which includes paid, owned, and earned media. In terms of paid media, LV prefers to encompass exclusive visuals and high-fashion celebrities aiming to captivate the viewers “including Keith.
Louis Vuitton adopts a premium pricing approach to price its items since the brand's target clientele are elite and upper-middle class. Customers are willing to pay high costs since the brand and its goods make a fashion statement. Demographic segmentation was employed by Louis Vuitton to separate the market.
Our main aim is to retain our esteemed customers while attracting new loyalties from all over the world. Therefore, we focus on quality advertising and providing accurate information about our products to enhance credibility and trust.
Louis Vuitton followed a generic strategy of differentiation. It provided unique and superior value to customers by putting emphasis on product design and quality, the buying experience, and brand image. Consumers were willing to pay a premium for high quality and unique types of goods crafted by talented artisans.
LVMH Group implements a diversified brand strategy, including business diversification and product diversification. Products include champagne and wine, cosmetics and fra- grances, fashion leather goods, jewelry and watches, and business areas such as boutique retail and media.
MAKING AN ENTRANCE: Justin Timberlake makes his campaign debut for Louis Vuitton in a new series of ads for the French luxury brand's collaboration with Japanese artist Yayoi Kusama.
“LVMH is confident in its ability to continue growth observed in 2022. The Group will pursue its brand development-focused strategy, underpinned by continued innovation and investment as well as a constant quest for desirability and quality in its products and distribution,” the company stated.
Authentic Louis Vuitton bags are handmade from experienced craftsmen who take pride in producing impeccable products from only the finest and highest quality materials. The brand is synonymous with luxury, exclusivity and high-quality which create high demand in the market for its products.
1997 saw American fashion designer Marc Jacobs come on board as Creative Director. It was under his influence that Louis Vuitton entered ready-to-wear and Jacobs transformed the brand from a high profile luggage label into a high fashion empire.
The mission of the LVMH group is to represent the most refined qualities of Western "Art de Vivre" around the world. LVMH 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.
Focus on quality and craftsmanship − Louis Vuitton places a strong emphasis on quality and craftsmanship, and its products are marketed as luxury items with premium prices. This focus on quality has helped the brand build a strong reputation and maintain its position as a leader in the luxury goods industry.
The design depicted a Japanese-inspired flower motif, chiefly created to prevent any duplicity of the Parisian company's designer luggage. This iconic LV logo has now become synonymous with class, comfort, grandeur and luxury.
Written by two world experts on luxury branding, The Luxury Strategy provides the first rigorous blueprint for the effective management of luxury brands and companies at the highest level. This fully revised second edition of The Luxury Strategy explores the diversity of meanings of 'luxury' across different markets.
A luxury brand marketing strategy aims to create the highest brand value and pricing power by leveraging multiple brand elements, such as heritage, country of origin, craftsmanship, scarcity, and prestigious clients.
Luxury Marketing – The 4 P's: Patricians, Parvenus, Poseurs and the Proletarians. Is a marketing model proposed by Han, Nunes & Dreze (2010) used to define customer segmentation in the purchase of luxury goods.
In recent years, Louis Vuitton has used a new supply chain management system called DDMRP. DDMRP is a demand-driven, inventory-based system that helps to optimize inventory levels and ensure that products are always available to customers.
largest economy. Because Chinese people have long been drawn to luxury culture, and China is also LV's greatest customer market. As of January 3, 2022, LV has nearly 50 stores in 27 provinces and cities in China (LV, 2022).
The strategic plan includes the brand's value, market position, purpose, vision, and ideal customer. These points are necessary for the company's teams to work in one direction and make the right decisions.
Louis Vuitton is a premium brand that sells quality products in the market. The marketing strategy ensures a premium pricing policy for its products because its customers are the upper-middle and elite class who do not have to worry about product prices.
Revenue for 2022 reached €79bn (£69.4bn), while profit from recurring operations hit €21bn (£18.5bn), both up 23% compared to 2021. Sales rose 9% in the final three months of the year alone. Total marketing and selling costs jumped 26% to €28.2m (£24.7m), amounting to 35.6% of revenue.
The 26 analysts offering 12-month price forecasts for LVMH Moet Hennessy Louis Vuitton SE have a median target of 208.07, with a high estimate of 232.75 and a low estimate of 186.70. The median estimate represents a +9.74% increase from the last price of 189.60.
A growth strategy is an organization's plan for overcoming current and future challenges to realize its goals for expansion. Examples of growth strategy goals include increasing market share and revenue, acquiring assets, and improving the organization's products or services.
Growth marketing is a strategy to increase a company's revenues by improving customer retention and loyalty. It is a long-term marketing goal and focuses its efforts on the consumer, specifically by reaching new customers, retaining current customers and finding ways for these customers to help you grow the business.
The following are the strengths of Louis Vuitton: Strong association to quality: In the luxury segment customers are always fussy about the quality of products that they use and are willing to pay a premium for it. Louis Vuitton products have always been the benchmark in quality and design for hand luggage.
High on our list of the most popular luxury brands, Louis Vuitton will always be a household name. And this designated House Icon is a perfect example of why. The Speedy was designed in response to the 1930 advance in public transport.
The shrinking income and rising unemployment rate have led to a serious decline in the market demand for luxury goods, and people's choice and pursuit of goods are more cost-effective and practical. In this era, the offline retail of luxury brands will inevitably be severely impacted.
Value Proposition: Louis Vuitton offers high-quality, luxury products that combine style, prestige, and exclusivity. This attracts loyal customers who seek unique designs and superior craftsmanship, reinforcing the brand's strong reputation in the luxury market.
In 1896, Georges Vuitton, having taken over for his deceased father Louis, imagined a new canvas to cover the flawless baggage produced by his brand. This new canvas was meant to incarnate all the inspiration, charm, and quality of Louis Vuitton luggage.
“L.V the Truth” is an abstract slogan that is still relatively straight forward and easy to interpret in a variety of ways, depending on the value different consumers place on LV as a luxury brand.
In the framework of this partnership, Louis Vuitton invites people to join in their promise to help children by linking pinkies with a loved one. This gesture is inspired by children themselves. When they make a promise, they take it very seriously, and they seal it with a 'pinky promise'.
Often these brands do not communicate their price point; instead, high quality or prestige is the focal point of communication to create a desire, so customers want the product regardless of the price.
What is STP in marketing? STP marketing (Segmentation Targeting, and Positioning) is a three-step marketing framework. With the STP process, you segment your market, target your customers, and position your offering to each segment.
This means using a marketing mix, involving product, price, place, and promotion, to sell a brand's luxurious characteristics through a luxury brand strategy using a broad approach, including social media platforms.
For promotions, it usually places ads for its products in high-end fashion magazines like Marie Claire, Harper's Bazaar, Vogue, Elle etc. Chanel also does point of sale marketing by employing classy store layouts and creative use of mannequins to lure the customers into their boutiques.
Luxury Goods Market is segmented by product type as designer apparel & footwear, cosmetics, travel goods, fine wines/champagne, jewelry & timepieces, and other luxury goods.
Segmentation of luxury brands is a great aspect of advertising planning. Most marketers use segmentation to achieve success in their business. With this segmentation, large markets are divided into smaller units to effectively and efficiently reach their product goals satisfy their customers.
Luxury brands don't sell 'benefits', they sell membership into a 'way of life', a sub-culture,” she explains. Whereas mass brands sell features and benefits and value for money. The brands may also leverage stereotypes and use celebrities to enhance their appeal.
The main terms that are used for marketing are Product, Place, Price, Promotion, People, Process, and Physical Evidence which are referred to as the 7Ps of Marketing Mix.
By selling or promoting luxury goods, brands tend to welcome consumers to try new products. Luxury marketing is also managed by these markets, which are able to manage and assume new perceptions of these particular products.
Rolex's marketing tactics focus on positioning itself as a luxury brand that is a symbol of a certain lifestyle. It targets a specific class of consumers rather than marketing itself as a mere product. Rolex's marketing strategies include: Print ads in high-end magazines and newspapers.
Rolex focuses on a single market segment—those who want a luxury watch—and is thus a prime example of the concentration strategy of market segmentation.
Rolex is the most recognizable luxury watch brand. The basis for Rolex's success is its extremely high product quality extending over the many years of its existence. Rolex watches show time accurately and are robust, sturdy and reliable.
Those who are rich or (upper) middle class enjoy the lifestyle represented by Gucci. Gucci is suitable for those who want to be considered fashionable and luxurious.
The promotion mix includes advertising in highly specific, high end fashion magazines, celebrity endorsem*nts, website, and social media marketing. Celebrities promote Dior products in different fashion shows, and website offers latest product information to customers.
Chanel has a well-developed market segment strategy by clearly positioning each kind of products to each of the segments and by using the distribution strategy of sale channels to emphasize the level of each segment.
Introduction: My name is Kareem Mueller DO, I am a vivacious, super, thoughtful, excited, handsome, beautiful, combative person who loves writing and wants to share my knowledge and understanding with you.
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