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In this article, you will learn about Louis Vuitton Marketing Analysis. It will include detail information about Introduction, Vision Statement, Mission Statement, SWOT Analysis, Segmentation, Targeting, Failure, Success Strategies, Marketing Mix (4P’s) Strategies, Financial Market Statement, Market Shares of Louis Vuitton Brand.
Table of Contents
Brief Overview
Louis Vuitton is a luxury fashion brand that was founded in Paris, France in 1854 by a man named Louis Vuitton. The brand is known for its high-quality leather goods, such as handbags and luggage, as well as its iconic monogrammed pattern, which was introduced in 1896. Over the years, Louis Vuitton has expanded its product line to include clothing, shoes, accessories, and more.
Today, the brand is considered one of the most valuable and well-known luxury brands in the world, with stores in cities all over the globe. In recent years, Louis Vuitton has also become known for its collaborations with other designers and artists, as well as for its commitment to sustainability and social responsibility. The brand’s commitment to quality and innovation has helped it maintain its status as a leader in the luxury fashion industry for over 150 years.
Introduction
Louis Vuitton Malletier, commonly known as Louis Vuitton is a French luxury fashion house and company founded in 1854 by Louis Vuitton. The label’s LV monogram appears on most of its products, ranging from luxury bags and leather goods to ready-to-wear, shoes, watches, jewelry, accessories, sun glasses and books.
Louis Vuitton is one of the world’s leading international fashion houses. It sells its products through standalone boutiques, lease departments in high-end department stores, and through the e-commerce section .
Louis Vuitton: Vision Statement
LVMH has effectively safeguarded a family soul that puts need on long haul vision. The Gathering’s job is to guarantee the improvement of every one of its Homes while regarding their personalities and their independence, giving the assets expected to make, produce and market their items and administrations through painstakingly chosen channels.
The three central qualities explained by Bernard Arnault are shared by each individual from LVMH. These three goals move greatness and comprise the mainstays of our exhibition and long-haul achievement.
Louis Vuitton: Mission Statement
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. Their products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy.
SWOT Analysis of Louis Vuitton
| Strengths ✔ Huge level of Customer Loyalty ✔ Strong association with quality ✔ Fantastic marketing using celebrities ✔ Makes customized products for its few Elite Customers ✔ Collaborates with top designers worldwide ✔ Oldest fashion brands with more than 150 years of establishment ✔ Recognized very easily by everyone due to its logo | Weaknesses ❌Intense competition results in low market shares ❌Lacks sensitivity to trends in foreign countries ❌Weak online presence & online sales ❌ Limited channels of distribution. Make sales only through stores ❌Fake emulations hurt sales & affect brand reputation as a reaction |
| Opportunities ✔ Strategic collaborations with certain other companies having the same customer segment ✔ Potential in Asia by & large, especially in China & India ✔ Revamping the brand image trying to attract more Millennials & Gen Z ✔ Tie-ups with top lifestyle events, hotel chains, & fashion houses can boost business ✔ Refer to those avenues in the business environment on which it can capitalize to increase its returns. ✔ Development of new products & services inducing Louis Vuitton competitive advantage | Threats ❌ Increasing competition from the emerging countries can result in the decline of sales ❌ Global recession or financial crisis ❌ Intensification in popularity of substitute fashion products ❌ Government policies on international trade can become the reason for slowdown operations ❌ Counterfeit cases all around the world adversely affect Louis Vuitton along with diluted market shares & negative image ❌ Their team which mostly consists of European designers will find managing multinational customization a huge challenge |
Market Segment of Louis Vuitton
Geographic Segmentation
REGION: Targeting western countries
POPULATION DENSITY: Urban population
SIZE OF AREA:
According to western population
Demographic Segmentation
SOCIAL CLASS:
Upper class and elite class
GENDER:
Target both gender Male and Female
AGE: Age is restricted. (15 to 54)
INCOME: $1000-$100000
Psychographic Segmentation
VALUES: Products are creative. People who believes in creativity become addicted to this brand & they give more value & sincerity
ACTIVITIES: Inspiring elite class , visitingLouis Vuitton become theirdaily lifetime routine thisactivity also helps them tobecome loyal customer and choice their products.
Socio-cultural Segmentation
FAMILY LIFESTYLE:
Only bachelor, Teenager, Adult & Students can purchase
SOCIAL CLASS:
Upper-Middle & Upper-class families purchase
CULTURE:
Use in western countries
Behavioral Segmentation
INTEREST & HOBBIES: Those who believe in premium quality their interest always move towards Louis Vuitton due to their quality & craftsmanship
DEGREE OF LOYALTY: People become loyal & purchase products based on their activities from this brand on and on. Their new articles & innovation attractsthem continuously & entertain them
Targeting of Louis Vuitton
PAST: The rich middle-aged ladies from 35 to 54 years old are the first sector of louis Vuitton target market.
PRESENT: LV specifically targets women aged 18 to 54 with yearly salaries of $75,000 or more.
FUTURE: Luxury fashion label LV is moving full steam ahead toward an eco fashion future with new sustainability targets. By 2025, LV says it will reach 100 percent on its sustainability goals.
TARGETING AUDIENCE
- Affluent individuals who seek for social status, exclusivity and high-quality products
TARGET MARKET
- US & International
- Urban Locations
- 18-54 age
- Males/Females
- Customers looking for comfort, quality, service, efficiency
- Determined & ambitious individuals
- Upper class
- Students & adults
TARGETING STRATEGY
- Adopted a differentiating targeting approach to meet the evolving demands of its clients
- Follows a differentiated strategy based on the generic strategies model where it develops “high-quality products and sells them at a high price.”
TARGETING COUNTRIES
- People in Brazil, China and India buy luxury items to show off their wealth, social class and status. Therefore, types of people are drawn to brands like Louis Vuitton as class and status are two keywords that define what the brand is all about
Failure of Louis Vuitton
Louis Vuitton wanted to represent the culture of black people through a new sweater they launched in spring-summer 2021 in the men’s collection.
However, instead of using the country’s flag colorsof green, yellow, and black, they changed the latter to red.The company immediately received opinionated criticism online that showed resentment towards the brand for its ignorance, and as well as defense statements for the company’s probable intention of simply referring to Rastafarian culture.
The first comment that initiated a build-up of negative publicity sparked with a user’s tweet, “I cannot stress how important it is to implement diversity as a value and not a symbol within fashion companies.” As comments continued to compile on social media, Louis Vuitton decided to change its products description from “flag” to “cultural heritage.”
Once the brand crisis was committed by the company and the damage was done, Louis Vuitton eventually pulled the sweater from the market altogether and issued a delayed public apology for the management’s misconstrued design.
Failure Reason of Louis Vuitton
Many brands failure to understand the umbrella of various cultures that lie within the market they are trying to reach and ultimately fail in the process of trying to do so. Upper management should not only hire more ethnically, but also consult and engage with communities of outreach through social media engagement and marketing before launching a product that fails to address the complete aspect of a culture.
Success Strategy of Louis Vuitton
There are four reasons behind the success of Louis Vuitton
1. Treading a fine balance between tradition and innovation
Started in 1854, today Louis Vuitton is a$30 billion company. The journey was long, andits history is very interesting. While in the beginningit was mostly chests and trunks, today you can find the famous LV logo on clothes, shoes, perfumes, watches, jewelry, accessories,sunglasses and even books.
A special line in the company policy ispersonalizationand the design ofcustom goods, which allows even the most demanding clients to getexactly what they want.According toWikipedia, “For six consecutive years (2006–2012), Louis Vuitton was named the world’s most valuableluxury brand. Its 2012 valuation was US$25.9 billion. The 2013 valuation of the brand was US$28.4 billion with revenue of US$9.4 billion.The company operates in 50 countries with more than 460 stores worldwide.” In 2014 itretook its crown as the world’s most valuable luxurybrand.
2. Perpetuating the image of “Ultimate Handmade Quality”
Interestingly, if you expect that handmade means made “by hand only”, you’d be wrong. In 2010, the Advertising Standards Authority (ASA)ruled that Louis Vuitton’s ‘handmade’ ad campaign was misleadingbecause they actually used sewing machines, too.
However, this little incident didn’t ruin the reputation of LV as a company devoted to quality. LV “argued that the use of hand sewing machines was part of what would be expected to amount to “hand made” in the 21st century.”
3. ‘Exclusive Series’ make LV pieces more desirable
The exclusivity of their products is one more reason for the success of Louis Vuitton. When you know a series is limited, you don’t postpone the purchase, but you hurry to buy, while available.
Exclusive might not mean unique but you know when you buy a piece from an exclusive series this isn’t a mass-produced item the ordinary Jane and Joe will also have. This is the main reason why people spend top dollar on a bag that is available for sale for a limited time only.
Exclusive series are released on various occasions and through various sales channels. For instance, on the occasion of theLouis Vuitton Cruise 2017 showa limited selection of bags from the collection will be available to purchase online. Buy it now, or it’s gone forever!
4. Designed and Promoted by the Best Talent
One of the secrets of LV’s success is that its products are designed and promoted by the best talent.
Over the years, top names in the fashion industry such as Helmut Lang, Azzedine Alaïa, Sybilla, Manolo Blahnik, Vivienne Westwood, Isaac Mizrahi, Stephen Sprouse, and Romeo Gigli were involved with LV.
Even a beginning marketer knows that you might have the perfect product but go nowhere without adequate promotion. So how do you promote glamorous luxury goods? With glamorous models and celebrities, of course.
Marketing Mix of Louis Vuitton
Louis Vuitton is prominent brand dealing with items related to fashion industry established in the year 1850, they have carved a name for themselves amongst the peers in the fashion industry by blending craft man ship that is handmade with necessary but very least mechanization
PRODUCT MARKETING MIX
- Deals in the manufacture & sales of specialized products.
- Main emphasis of the company is on the premium quality of the goods.
- Designs are intricately created and artisanship that is traditional as well as simply exquisite.
- Portfolio of luxury goods that the company deals in include items like leather goods
- Famous for its handbags and beautiful watches.
- In order to tackle the market of counterfeit goods the company has put a lot of effort into the design itself, & therefore it is not easy to imitate its products.
- Offers a range of eyeglasses, briefcases, scarves, belts and wallets.
PRICE MARKETING MIX
- The contemporary designs of the products have helped the company to maintain a premium pricing policy.
- This is the reason that they do not believe in reducing the actual price of its product and also does not offer either sale period or discount.
- Company is said to have been following a policy of value based pricing strategy.
- As the cost of the products is actually much higher because of their uniqueness, material and quality the value of the product simply results in premium pricing.
- Perceived value of Louis Vuitton is very high, so consumers feel that they are receiving the value even though the price paid is high.
PROMOTION MARKETING MIX
- It has employed a promotional strategy for its products with help of celebrity endorsem*nts. Famous actors like Jennifer Lopez, Kate Moss, Scarlett Johansson and Uma Thurman have been associated with the brand as its ambassadors. They have featured in the high-profile ad campaigns for this brand
- These events are attended by mostly elite society and by associating with these events; the company has made a direct link with the target audience.
- Advertising is the main tool to create awareness about the product and keeping with its illusion of exclusivity the company has managed to make ads that are really individual and fashionable.
- Advertising is the main tool to create awareness about the product and keeping with its illusion of exclusivity the company has managed to make ads that are really individual and fashionable.
- Most of the advertisem*nts revolve around celebrities and this is to create an emotional connection for the consumer.
PLACE MARKETING MIX
- Louis Vuitton is very clear in its distribution policies. Its products are highly exclusive and sold with the same mindset of providing exclusive accessibility. To purchase a Louis Vuitton product the customer has to reach its personalized stores.
- They do not sell any of their branded products in department stores. They feel that they have the best possible options to sell their products in their own stores, as their salespersons are highly professional with a keen mindset to tackle the customers in an intimate and warm environment.
- In the long term, this marketing strategy helps in the reduction of intermediary costs that other brands face while selling through long channels of distribution.
- Products in these stores are prominently displayed keeping in mind the latest fashions, Louis Vuitton has opened its outlets in different parts of the globe, and they have at least three hundred retails outlets.
- This includes stores in Los Angles, Dubai, Las Vegas, New York, Paris and Tokyo.
Financial Statement of Louis Vuitton
Financial statement of a brand basically consists of its balance sheet, income statement and cashflow statement . If we see all of these financial statements we came to know that Louis Vuitton repeatedly growing it’s revenue and sales as the years passed.
Market Shares of Louis Vuitton
By viewing the graph of market shares of Louis Vuitton we can clearly distinguish between the previous year sales and passing year sales. The sales increasing per year as the brand Louis Vuitton become familiar to public.
Shareholders of Louis Vuitton
- Christian Dior SE
- Arnault Family
- Capital Research & Management Co ( WorldInvestors)
- The Vanguard Group, Inc
- Thornburg Investment Management. Inc
- NorgesBank Investment Management
- FidelityManagement & ResearchCo.LLC
- Capital Research &Management Co.( Global Investor)
- Amundi Asset Management SA (Investment Management)
- JennisomAssociates LLC
Conclusion
By seeing all the analysis we came to know that the brand Louis Vuitton achieve its popularity, stability and maintain its premium quality due to consistency . They believe in improving themselves . After facing criticism at high level, they do not lose hope and try their best to satisfy their customers.
They continuously try best to innovate their articles . They provide best handmade and eco-friendly products all over the world.
This brand take people point of view and try to figure out the problems faced by their customers and resolves them as soon as possible.Louis Vuitton provide the premiumqualityproductsand they do notcompromise on theirquality . They use quality-based strategy tograbthecustomers. They target elite class only .
Their customers areloyal due to theirgoodservices so that’s why they do notneedtotarget the all classes of society to gainprofit .Their loyal customersmaintain theirrevenue by purchasing whenever they launchanyoftheir product.
Get Books on Market Segmentation
Market Segmentation: How to Do It and How to Profit from It
Market Segmentation: Conceptual and Methodological Foundations
Handbook of Market Segmentation: Strategic Targeting for Business and Technology Firms
Market Segmentation: How to do it, how to profit from it
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