Marketing Strategy of Lv

21/12/2011 merchandise Strategy analysis of LVMH with a special(a) focus on LV attention e realplaceview Louis Vuitton Malletier is commonly referred to as Louis Vuitton, roughlytimes reduce to LV, is French sumptuousness panache and trounce self-assertionys society. The partnership was founded in 1854, and now is the ground of LVMH and its main division gondolarying al approximately a quarter of the total meeting. LVMH is the innovation drawing card in the lavishness industry. It was established in 1987 through the partnership of three soils Louis Vuitton, Moet and Henessy.This union gave birth to a global group that, in addition to leather goods and spirits, brings unitedly to the distri to a greater extentoverion, a ample variety of practises in all segments of the luxury perfumes, jewelry, watches and to a fault champagne. by its policy of post suppuration and involution of its distri merelyion network abroad ( more than 2300 stores worldwide), LVMH h as became, since its population in 1987, a part of a strong growth it is now the commencement exercise capital in France and the thirteenth in the world, with 77000 employees of which 74% atomic number 18 based after-school(prenominal) France and that sh atomic number 18 the same abide bys of the groupe. bodily dodge A strategic divider In the luxury sector, LVMH has dedicateed in six different strategic business aras wines and spirits, modality and leather goods, perfumes and cosmetics, watches and jewelry, selective distri howeverion and otherwise activities. Louis Vuitton is trying to represent by its products, the most refined qualities of Western Art de Vivre round the world. The confederation is also trying to ride out to be synonymous with some(prenominal) cultivation and creativity in leather products, shading tradition and innovation through their products and sacking dream and fantasy.How Louis Vuitton attracts its costumers LouisVuittonisa luxury brandbel onging toLVMH whichisthe mostvaluedbrandinthe world of luxury. Since 1854thishas been succeeding withitsluxuryluggagefirst and thus with mien of life industry( specially with collectionsby Marc Jacobs). LouisVuittonhas introduced galore(postnominal) advertise campaigns,but ten years of fashion communication prevail overshadowed the ho practise. The company realised that customers were less sensitive to the values that were associated with the brand.thusly the company wanted to put excursus while the commercial communication by focusing on a more institutional in order to resurrect the ho habituate and non just the products. LouisVuitton and so chose to move from product communicationto integrated communications. The goal isto communicatethe values and philosophy ofthe brand and itsleitmotivthe stumbler. To createaclose relationship with itscustomers, the profitappearsto be the best means of communication(interactivity, photos,videos. ) The profound valuethat is conveyedis thetrip.Todaythe concepthas evolved intravelhabits( chew tourism, development oflow cost), bonny very usual and then in that respect is nomore magic in thetravel orescape. In this cuttingcommunication campaignLVseeks to use the concept ofjourneyfrom approximationtoidea of?? physicalpersonal journey (passenger). dickens of LV advertisements that are using the trip concept Main objectives of the company coarse term objectives The groupaims to ensure thesustainability of the companyby focusingon nerve center brands identical thecapital(pillars)of the 5areas ofLVMH. In addition,LVMHhasthe opportunity to gain commercialize share, eclininghis spellof virgin niches( gravelories). It must continue to investfor growth. Short term objectives LVMH wants to come upon a rapid return to the strategic activities much(prenominal) as selling on the Internet like on eLUXURY. com These activities can beretained in theportfolio onesbecause theydo not monopolizeconsiderable energyover the long termandare a source ofdirect profitability(high margin). synopsis of the four Ps strategy reaping Louis Vuittons products are very grand by their absolute quality and very high cost.The aim of LVMH is also to ready people feel a big difference between any brand and a brand Louis Vuitton. Therefore a strong image is needed to achieve those aims. One of the big issues that touch LV products is counterfeiting which the company is trying hardly to constrict against with enlightenment campaigns, distribution of warning notices to companies, registering the trademarks and designs and make some activities with the Union des Fabricants which is a public interest incorporated sleeper that carries out trademark protection activities.The company is also working on prohibiting judgement of authenticity by officially O.K. stores that are alone able to drift whether an article is genuine or not, but also using the mass media to place people about some flesh out to take into account b efore judge whether an LV good is genuine or not. By choosing not to make low-bud nurture goods at all, LV is also prohibiting second-line trading operations or what we call lower-cost alternatives. This can be sort of limitation to a longer expansion but a good choice to the company to stay in the luxury area. Another principle of LV product is that LV is an independent execute that is prohibiting outlet product yield in order to meet 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 respect the trust the costumers collect in its reliable pricing, especially by prohibiting exorbitant pricing, bargain sales, sales in value sets, surprise price changes, pricing in odd prices coiffure LVMH has no boundary its m arket is global, victorious into account national or regional areas. The company has a geographical strategy that is built on the sentence recollect global, act local. The value of having a global market is to overcome the vagaries of economic conditions (fluctuations in exchange rates, and so forth .. ), amicable (war, etc. .. and demographic issues (emerging Asian countries, etc. .. ). This allows them to meet the proper(postnominal) demands of the market burst than in other possible 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 detail to champagne. On the other hand the internationalization of sales allows the company to respond to umpteen different behavioral changes of consumers. Moreover, LVMH is desire to go away new markets with very high capability such as China and India.LVMH benefits from the ease of world trade. Promotion LV in comparison wi th most companies that use mass advertising, never advertise on idiot box but only on magazines and newspapers with non obstreperous sales ads, just images. The brand represents 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 video recording media that are surely too popular. Louis Vuitton, because of the demands in womens magazines (Elle, Vogue, Madame Figaro , , advertisements published in its journals unendingly have a particular theme (urban, fables, septet deadly sins , ). To promote its goods, Louis Vuitton prefers to also tog up special events such as Concours dElegance car and the Americas Cup (also cognize as Louis Vuitton Cup). The brand,asfor other firms, isusingthe frontofthe storesorganism built foradvertising. For examplein spic-and-spanYorkcan 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 directis not only thepublic who accompanied theparade (a few hundred people), butthe people whohear aboutin the press andother media. LV merchandise strategy is also based on a special process of variegation 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 r to each one a new job that is willing to splurge. They have access to luxury by ancillary products already present in the product clench it requires no new skills or supernumerary skills.This diversification marketing involves distinctive innovations both in the cut of clothes (packaging for perfumes) that the idea of handbags (new materials). All this requires a research and development performance, bringing together the best designers to get a head start as soon as possible and discovery the trend. Weaknesses of Louis Vuitton and propositions for better strategy LV products are the most copied in the World, which is not the cuticle 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 discharge of image and prestige. To remedy this, Louis Vuitton is strongly perpetrate to the fight against counterfeiting by establishing a specific team to sensitize the consumer and arrest the counterfeiters some 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 in Asia and 25% higher in the U. S. In addition, foreigners that are residing outside European community of interests can benefit from a revenue refund.It is therefore more interesting for galore(postnominal ) foreigners to buy Louis Vuitton products in France, thus we have a great development of the vocation around this brand. Indeed, there are many consumers that buy LV products in France and then resale them to foreigners. Others collaborate with foreigners and accept to act as intermediaries for the purchase of these products, with taking a management for this service. The resale of a product devalues its image as luxury item the resoled product loses its ingathering and uniqueness it becomes such a good 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 keep innovating its products, marketing, advertisements themes and in the same time argue 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 pro pose 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/written document/Orally%20Presented%20Papers/Design%20Management/Luxury%20Brand%20Strategy%20of%20Louis%20Vuitton. pdf * http//veronique. estienne. free. fr/doc/SLIDE. htm