Abstract
Louis Vuitton is a potent symbol of modern style and creates innovative, elegant, and practical modern luxury items. While maintaining a superior positioning as a luxury item with a sophisticated brand value, the company also wants to attract other segments of potential consumers by leveraging its attributes of elegance, brand personality, desirability, luxurious image, stylishness, value for money, high quality, and being an everlasting product. For this purpose, the company is effectively using the digital media space to shape consumer perceptions, leverage consumer engagement, and promote its heritage. This chapter explores Louis Vuitton's e-retail site, its online application, and the quark publishing platform which is effectively used in the digital domain.
Chapter Preview
Top
Swot Analysis
See Table 1.
Table 1.
A Strength, Weakness, Opportunity and Threat profile of Louis Vuitton
| Strengths | Weaknesses |
| • Oldest and legendary house of fashion in the world. • Known for skilled handiwork & exquisite material. • Touched new heights in context of artistic capability. • Biggest luxury brand worldwide with a 150 year heritage. • An international logistics centre. • Website as an authorised channel to market its products and build brand associations. • Exclusivity in material and design. • Offering custom made products. • Brand endorsem*nt by world renowned models, celebrities, sportspersons, politicians. • Effective control on quality and pricing by marketing products through own stores. | • The premium positioning of the product results in it being afforded only by the elite and the rich who want to make a statement and want to be distinctive from others. • It has restricted retail opportunities compared to other luxury brands as the company markets the product through its own stores only. • Business largely depends on the economic condition. If economy is depressed, the sales growth slows down sharply. • No precedence of offering products on a discount. |
| Opportunities | Threats |
| • Louis Vuitton leverages its strong brand equity to products-fashion, Accessories, Jewellery Line, Shoes, Time pieces, architecture. • The company keeps revamping the Louis Vuitton image from time to time, to meet contemporary tastes and styles of it’s elite customers. • Opportunity for brand promotion by exhibiting movie actors flaunting the Louis Vuitton products. • Brand expansion worldwide. • Brand promotion through exhibitions and events. • Exploring the digital media space for brand propagation. | • Product counterfeiting serves as one of the biggest threats. Imitation of quality, expertise and innovation is a constant threat. • Animal Rights groups pose a potential threat to the company, specifically when campaigners staged a noisy protest outside Louis Vuitton store, on Paris’ famed Champs Elysees avenue in 2006 for using real fur in decoration and accessories. • The current global economy, scenarios of economic recession and financial crisis are potential threats for Louis Vuitton. • Christian Dior, Chanel. Gucci, Prada and Salvator Ferragamo are the chief Competitors. • Changing annual trends are a continuos challenge for the company. • Fashion Marketing differs from continent to continent . |
Key Terms in this Chapter
Social media: Social Media refers to the means of interactions among people in which they create, share, and exchange information and ideas in virtual communities and networks.
Customer Retention: Customer Retention is the process of keeping, sustaining, and/or growing the relationship of consumers with the company and its products and services. It is the process of keeping customers loyal to a company for an unending period by meeting the needs and expectations of customers and is a significant contributing factor in the growth rate of businesses.
Customer Touchpoint: A customer touchpoint refers to all interaction channels between organization and consumer. Each communication, human resource, branding, marketing and sales initiative creates touchpoints.
Customer Acquisition: Customer Acquisition is the process of acquiring or obtaining new customers, and/or converting prospects to customers.
EMarketing: EMarketing is the use of Information Technology in the processes of creating, communicating, and delivering value to the customers, and for managing customer relationships in ways that benefit the organization and its stakeholders.
Digital Marketing: Digital Marketing refers to the use of any form of Digital or Electronic media for facilitating the process of Marketing.
CRM: Customer Relationship management refers to the process of building relationships with customers to enhance customer loyalty. Includes all Customer Acquisition processes and all Customer Retention processes.
Brand Repositioning: Brand Repositioning refers to changing a brand's status in comparison to that of the competing brands. Repositioning is effected through changing the marketing mix in response to changes in the marketplace, or due to failure to reach the brand's marketing objectives.
Complete Chapter List
Search this Book:
Reset
