Marketing Strategy of Lv

21/12/2011 Marketing Strategy abbreviation of LVMH with a surplus focus on LV Industry overview Louis Vuitton Malletier is unremarkably referred to as Louis Vuitton, sometimes shor xed to LV, is French juicy life fashion and lather goods conjunction. The company was founded in 1854, and now is the cornerstone of LVMH and its main division carrying nigh a quarter of the total group. LVMH is the world leader in the opulence industry. It was established in 1987 through the union of three mugs Louis Vuitton, Moet and Henessy.This union gave family to a global group that, in addition to trounce goods and spirits, brings unneurotic to the distri saveion, a big variety of filths in all fractions of the luxury perfumes, jewelry, watches and besi stilbestrol champagne. Through its policy of brand breeding and expansion of its distri exactlyion web abroad ( much than 2300 stores universal), LVMH has became, since its creation in 1987, a part of a very growth it is now the first capital in France and the thirteenth in the world, with 77000 employees of which 74% ar based outside France and that sh ar the same value of the groupe.Corporate strategy A strategic segmentation In the luxury sector, LVMH has invested in six different strategic business argonas wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective distribution and other activities. Louis Vuitton is attempt to represent by its yields, the or so refined qualities of Western Art de Vivre round the world. The company is alike trying to continue to be synonymous with two elegance and creativity in leather products, blending tradition and innovation through their products and kindling ambitiousness and fantasy.How Louis Vuitton attracts its costumers LouisVuittonisa luxury brandbelonging toLVMH whichisthe mostvaluedbrandinthe world of luxury. Since 1854thishas been succeeding withitsluxuryluggagefirst and then withfashion industry(especially with collectionsby Marc Jacobs). LouisVuittonhas introduced more advertising campaigns,but ten years of fashion confabulation restrain overshadowed the house. The company realized that customers were less(prenominal) sensitive to the values that were associated with the brand.Therefore the company wanted to put aside while the commercial communication by focusing on a more institutional in severalize to enhance the house and non just the products. LouisVuittonthen chose to move from product communicationtocorporate communications. The destruction isto communicatethe values and philosophy ofthe brand and itsleitmotivthe trip. To createaclose relationship with itscustomers, the Internetappearsto be the best means of communication(interactivity, photos,videos. ) The fundamental valuethat is conveyedis thetrip.Todaythe concepthas evolved intravelhabits( galvanic pile tourism, phylogeny oflow cost), becoming real usual and then there is nomore magic in thetravel orescape. In this modcommunication campaignLVseeks to use the concept ofjourneyfrom basetoidea of physicalpersonal journey (passenger). Two of LV advertisements that atomic number 18 using the trip concept Main objectives of the company Long margin objectives The groupaims to ensure thesustainability of the companyby focusingon heart brandslike thecapital(pillars)of the 5 beas ofLVMH. In addition,LVMHhasthe opportunity to gain marketplace share, eclininghis offerof naked niches(accessories). It must continue to investfor growth. Short enclosure objectives LVMH wants to achieve a rapid return to the strategic activities such as selling on the Internet like on eLUXURY. com These activities backside beretained in theportfolio onesbecause theydo not monopolizeconsiderable vital forceover the long termandare a source of deport profitability(high margin). Analysis of the four Ps strategy Product Louis Vuittons products are rattling distinguished by their absolute quality and very high price.The aim of LVMH is in any grounds to make people feel a big difference between any brand and a brand Louis Vuitton. Therefore a strong image is needed to achieve those aims. star of the big issues that touch LV products is counterfeiting which the company is trying hardly to support against with enlightenment campaigns, distribution of warning notices to companies, registering the trademarks and designs and making some activities with the Union des Fabricants which is a public interest incorporated association that carries out trademark protection activities.The company is also working on prohibiting appraisal of legitimacy by officially sanctioning stores that are alone able to avow whether an article is genuine or not, but also using the mass media to tell people about some details to take into bill before appraising whether an LV good is genuine or not. By choosing not to make cheap goods at all, LV is also prohibiting second-line operations or what we call lower-cost alternative s. This can be sort of limitation to a greater expansion but a good choice to the company to stay in the luxury domain. Another principle of LV product is that LV is an independent manufacture that is prohibiting outlet product production in order to control the brand value and making a real control on the prices. LV has also a special order service for customers that would like to buy customized and order-made products. Price LV goods prices are very high, but their value is also of a very high level. The prices are widely accepted by women.The company is trying then to hold the line the trust the costumers have in its reliable determine, especially by prohibiting horrid pricing, bargain sales, sales in value sets, surprise price changes, pricing in odd prices Place LVMH has no boundary its market is global, victorious into account national or regional areas. The company has a geographical strategy that is make on the sentence Think global, act local anesthetic. The value o f having a global market is to over fix the vagaries of economic conditions (fluctuations in exchange rates, and so forth .. ), social (war, etc. .. and demographic issues (emerging Asian countries, etc. .. ). This allows them to meet the specific demands of the market better(p) than in other practicable way for example, the Italians prefer sweet taste champagne that can be adapted to be the right product for them, with mixtures of wines and grapes varieties that are specific to champagne. On the other hand the internationalization of sales allows the company to respond to more different behavioral changes of consumers. Moreover, LVMH is seeking to emerge new markets with very high potential such as China and India.LVMH benefits from the liberalization of world trade. promotional material LV in comparison with most companies that use mass advertising, never advertise on television but only on magazines and newspapers with non truculent sales ads, just images. The brand represen ts the discovery, travel, sophistication, elegance and creativity. When such words are associated with a company we understand that communication must be really special. Louis Vuitton does not use media such as radio and television media that are surely too popular. Louis Vuitton, because of the demands in womens magazines (Elle, Vogue, Madame Figaro , , advertisements published in its journals always have a particular theme (urban, fables, seven deadly sins , ). To promote its goods, Louis Vuitton prefers to also organize special events such as Concours dElegance car and the Americas Cup (also know as Louis Vuitton Cup). The brand,asfor other firms, isusingthe frontofthe storesbeing built foradvertising. For examplein NewYorkcan be seenat a height ofover 20 metersJenniferLopez,new ambassadorofVuittons flagship productscarrythe brand. Vuittonalsodoes not hesitateto call ongreat personalitiesto representthe company.The paradesarealso a good way tomake them known. The targetis not onl y thepublic whoattended theparade (a few hundred people), butthe people whohear aboutin the press andother media. LV marketing strategy is also based on a special process of diversification To stay number one in the luxury sector, LVMH group usually offers a similar product line to the 4 corners of the planet, but in different ways. LVMH is seeking to reach a new clientele that is willing to splurge. They have access to luxury by ancillary products already present in the product range it requires no new skills or additional skills.This diversification marketing involves distinctive innovations both in the cut of clothes (packaging for perfumes) that the composition of handbags (new materials). All this requires a search and development performance, bringing together the best designers to get a contribute start as soon as possible and find the trend. Weaknesses of Louis Vuitton and propositions for better strategy LV products are the most copied in the World, which is not the case of other luxury companies like Hermes for example. Indeed, Counterfeiting is a real problem for the segment of luxury products.The extension of the brand could contribute to the loss of image and prestige. To remedy this, Louis Vuitton is strongly committed to the fight against counterfeiting by establishing a specific aggroup to sensitize the consumer and arrest the counterfeiters around the world and especially in countries where the phenomenon is more present like China. Also, the prices of LV products are not the same around the world they are 50% higher(prenominal) in Asia and 25% higher in the U. S. In addition, foreigners that are residing outside European community can benefit from a tax refund.It is therefore more interesting for many foreigners to buy Louis Vuitton products in France, thus we have a great development of the traffic around this brand. Indeed, there are many consumers that buy LV products in France and then resale them to foreigners. Others collaborate wit h foreigners and accept to act as intermediaries for the procure of these products, with taking a commission for this service. The resale of a product devalues its image as luxury item the resoled product loses its charm and uniqueness it becomes such a commodity and no longer a luxury product.To prevent this, LV has to develop more its computer control of sales. And since the luxury market is an area of a big concurrence, LVMH is always required to be distinguished from the others, to confine innovating its products, marketing, advertisements themes and in the same time defending its values And since it has became a worldwide known brand, may be to make some customization in production, sales and marketing for each culture, I would like to propose to make for come chosen countries special processes of production , sales and advertising that meet but also emerge from their cultureReferences * http//www. iasdr2009. org/ap/Papers/Orally%20Presented%20Papers/Design%20Management/ high life%20Brand%20Strategy%20of%20Louis%20Vuitton. pdf * http//veronique. estienne. free. fr/doc/SLIDE. htm