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1. Introduction
1.1 History of Louis Vuitton
1.2 Vision, Mission
1.3 Target Segmentation
2. Market Research Methodoogy
3. S!"T #naysis $Situation #naysis%
&. Target Market Segmentation and Market 'ositioning
1. Introduction
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The foo(ing #ssignment (i )e focusing on the Marketing Strategies for Louis
Vuitton. # )rief history of Louis Vuitton and )ringing through the marketing
segmentation of Louis Vuitton (ith the )rand *ositioning. +e,t, (e ook into the
S!"T anaysis for Louis Vuitton )ased on the research on micro en-ironment and
macro en-ironment. +onetheess, the assignment (i co-ered recommendations and
foo(ed )y concusion.

1.1 History of Louis Vuitton
The egendary fashion to* a)e .Louis Vuitton/ (as founded in year 101& )y Louis
Vuitton. 2ear 1334, Louis Vuitton tra-eed to 'aris and (as trained )y Monsieur
Mar5cha. The main trans*ortation during 13
th
century (as the horse carriage and
rai(ays. Thus, arge and )uky )aggage (as greaty used for fre6uent tra-eers from
to(ns to to(ns. The craftsmanshi* of the )aggage (as inferior 6uaity, (hich had
ins*ired Louis Vuitton to create the most so*histicated and ong asting )aggage.
Short after, Louis Vuitton had )ecome the to* artisana
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among Monsieur Mar5cha7s
a**rentices. He custom made )aggage and trunks for Monsieur Mar5cha7s customers
for 18 years )efore he o*ened the first (orksho* in 'aris and introduced the can-as
co-ered tra-e trunks.
1.1 Vision
9e on to* of the fashion industry and dei-ering the )est of 6uaity and -aue.
1.2 Mission
The mission of Louis Vuitton is to com)ine )oth eegance and creati-ity in )ending
the cutura -aues, traditions and inno-ation together. Hence, Louis Vuitton is
en-ironmenta sustaina)e to minimi:e the damage to nature yet )ringing the
*assionate determination and stri-e to )e the )est in fashion industry.
1.3 'roduct 'ortfoio and Target Market
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Pertaining to or noting a person skilled in an applied art.
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Louis Vuitton understands the fashion industry and customer needs. Louis Vuitton
offers (ide range of fashion coections from accessories, shoes, cothing, *erfume,
(atches and e-en high;end stationery. The targeted customers of Louis Vuitton are
(hite coar (orking aduts. <othing is a *hysica needs and to some indi-idua
cothing has )ecome a fashion statement and sef e,*ression in today7s society. So,
Louis Vuitton introduces the high;end fashion (ear cuture to the (e;to;do (orking
aduts. The market demands for Louis Vuitton *roducts are reati-ey high as the
targeted audiences are satisfied (ith the 6uaity and ha-e the )uying *o(er to afford
the e,*ensi-e couture u,ury fashion items. Louis Vuitton customers )ased can )e
categori:ed into 2 grou*s. =or instance, the )utterfies and the true friends. 9utterfies
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customers are *rofita)e )ut may not )e oya. "n the other hands, the true friends
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customer )ased can )e )oth *rofita)e and oya.
2. Market Research Methodoogy
'rimary research to )e im*emented. Louis Vuitton )outi6ue can )e found in most
ma>or cities around the (ord. 'rimary research can )e easiy conducted through ma
interce*ts, consumer inter-ie(s, o)ser-ation and internet;)ased sur-ey.
Louis Vuitton are often situated at the centra of cities and surrounded (ith ma>or
sho**ing mas and (eathy neigh)ourhood (ith high s*ending *o(er. Hence, ma
interce*ts and consumer inter-ie(s are great toos to conduct a market research.
#ccording to Mi(ard 9ro(n research firms, Louis Vuitton (as named the (ord7s
most -aua)e u,ury )rand. The resut (as conducted through e,isting consumer
inter-ie(s and *otentia consumer inter-ie(s.
"n the other hands, o)ser-ation and internet;)ased sur-ey are great market research
methodoogy for Louis Vuitton. #s mentioned, Louis Vuitton are ocated around the
(ord, through o)ser-ations, marketer is a)e to take note of the consumer )eha-ior at
the )outi6ue through -arious cuture and society. Thus, the o)ser-ation method is
more accurate due to the on s*ot )eha-iora o)ser-ation. Internet;)ased sur-ey is the
easiest and chea*est method in conducting a market research. Internet is accessi)e in
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Marketing term: Potentially profitable but not loyal.
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Marketing term? 9oth *rofita)e and oya.
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most ma>or cities and marketers are a)e to reach the e,isting customers )ase through
sending marketing emais and gather feed)ack from e,isting customers. Internet;
)ased sur-ey is a great (ay to measure the satisfaction of e,isting customers to(ards
Louis Vuitton.
3. S!"T #naysis
STRENGTHS
Strong market shares in the u,ury
segment.
@,cusi-e u,ury *roducts to
sym)oi:e socia status.
9rand recognition.
WEAKNESSES
Limited *roduction ca*a)iities
Aefending the )rand name
to(ards counterfeit.
OPPORTUNITIES
9usiness e,*anding ra*idy in
#sia, mainy in <hina.
Breater technoogy ad-ancement
*roduces more seections for
*roducts materias.
THREATS
<arefu *ositioning of ne(
*roducts, to safe;kee* the )rand7s
*osition as a market eader in
u,ury segment.
The younger grou* $cuture% (i
choose a more edgy u,ury goods.
3.1 Strengths
Louis Vuitton, a eading )rand in high fashion segment retains the strongest market
shares. The grou* of com*any, Louis Vuitton MoCt Hennessy aso kno(n as LVMH
market share had fairy rose 41D as *er year 2E12 $Mi(ard 9ro(n, 2E12%. Hence,
the strong ca*ita )oost in-estors and consumers7 confidence to continue su**ort the
u,ury )rand. Louis Vuitton has stringent security contro to(ards their *roduct and
ensure that customers are ony s*ending money on their authentic *roducts (hich
ony a-aia)e at Louis Vuitton )outi6ue. Thus, Louis Vuitton *roducts are e,cusi-ey
sod at the stand aone )outi6ue that *ro-ides customers the e,cusi-e *urchasing
e,*erience that they (i ne-er get from any other )rands. Louis Vuitton is (e
recogni:ed in (ord;(ide. #t the same time, it sym)oi:es the high fashion socia
standard.
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3.2 !eaknesses
Louis Vuitton *roducts are hand made in Itay, (hich stretches the *roduction
timeine, and imit the *roduction num)ers. In order to contro the 6uaity and ensure
that e-ery *iece of the u,ury fashion items are (e made Louis Vuitton has greater
demand than su**y in the market. The conse6uences of so( *roduction may ead to
consumer choosing another )rand (ith simiar design and cose *rice range. 9eing the
to* of the high fashion a)e, Louis Vuitton is constanty strugge to defeat the
counterfeit goods in the market. Louis Vuitton had fied a a(suit case against a
(e)site that ses counterfeit merchandise and a(arded statutory damages of FSG32.&
Miion. $9usiness(ire.com, 2EE3%.
3.3 "**ortunities
Bo)a congomerations ha-e ead Louis Vuitton to e,*and )usiness targeting #sia
market (hie the #sia7s economic is more sta)e and study sho(s that #sians are
more ikey to s*end on u,ury goods. Refer to the chart 3.3.1 as )eo(.
<hart 3.3.1 LVMH Saes Bro(th )y Region.
Source? htt*?HHmoney.cnn.comH2E11HE2H21HmarketsHchinaIu,uryIouisI-uittonH
3.& Threats
The u,ury markets are getting more com*etiti-e as consumers ha-e turned to more
-i)rant and edgy )rands instead of the cassic Louis Vuitton designs. Louis Vuitton
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(i )e aunching more edgy coections targeting the younger grou* of consumers.
Mean(hie the marketers need to stay (ith the )rand7s -ision and mission to ensure
that the )rand *ositioning is sti on ine.
&. Target Marketing
Market Segmentation is a key to successfu marketing strategy. It ao(s the com*any
to reach out to the s*ecific target market and e,ecute the marketing mi, to the right
consumers. 9esides that, market segmentation *ro-ides the com*any in defining the
-aue *ro*osition to the target audience. It ena)es the organisation to differentiate its
)usinesses as com*ared to the direct com*etitors in ree-ant industries. Market
segmentation can )e di-ided into & different grou*s, (hich are geogra*hic
segmentation, demogra*hic segmentation, *sychogra*hic segmentation and asty,
)eha-iora segmentation.
Beogra*hic segmentation ao(s marketers to target s*ecific consumers according to
countries, states, city or nations. Louis Vuitton is targeting (eathy city (ith
concentrated *o*uations. Hence, <hina, India, and 9ra:i (i )e the chosen countries
to e,*and the )usiness. @s*eciay market in <hina (ith strong economic and
increasing num)ers of miionaires. 'eo*e in <hina are more ikey to s*end on
u,ury items. <hinese s*ent a)out G03E miion in year 2E13 in u,ury goods. $<+9<,
2E13%
Marketer uses *sychogra*hic segmentations to identify the *otentia customers )y
understanding their ifestye, socia cass, or *ersonaity traits. Louis Vuitton uses
*sychogra*hic segmentations that further enhance their market kno(edge. Louis
Vuitton targeted sociaites to ins*ire their ne,t creation and yet sti achie-ing their
mission in com)ining )oth eegance and inno-ation in a their *roducts.
Louis Vuitton uses )eha-iora segmentation that di-ides market accordingy. Such as
kno(edge, attitudes, user status, usage rate, oyaty status and etc. 9eha-iora
segmentation is a)e to generate more s*ecified detais )ased on different attri)utes.
Louis Vuitton has great *oo of oyaty customers that see -aue *ro*osition of Louis
Vuitton *roducts. "ther than that, customers re*urchase the high fashion a)eed
*roducts due to the refection of their socia status.
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&.1 9rand 'ositioning
Louis Vuitton7s u,ury goods are (e kno(n for its dura)iity and uni6ueness. Louis
Vuitton targeted at )oth femae and mae (orking aduts (ith high *urchasing *o(er
and the (ants to satisfied their socia recognition. #ccording to 9oom)erg.com
.Louis Vuitton is the (ord7s most -aua)e u,ury )rand for se-en consecuti-e
years./ Louis Vuitton has successfuy dei-er great -aue for money on their u,ury
items to ensure their customers are satisfied (ith their *urchases. #s a resut, high
chance of re*urchasing of its u,ury goods. The =rench made u,ury goods are
handmade in Itay and it creates a good im*ression to customers that Louis Vuitton
*roducts are (e e,amined )y e,*erienced artisana to assure the 6uaity of each
*roducts. Like(ise, Louis Vuitton *roducts *ro-ide the comforta)e feeings to
consumers, as the =rench made *roducts are sturdy, soid, and -aue for money. The
)rand *ositioning for Louis Vuitton is ceary em*hasi:ed on the high fashion a)e
(ith su*erior 6uaity, sim*e yet cassic designs, and e,cusi-ity of the *roducts.
Vission J Mission
To im*ement
creati-ity and
eegance in each
*roducts and remain
on the to* of the
fashion industry.
Target Market
!orking aduts age 21
and a)o-e (ith strong
*urchasing *o(er
Socia eites
=ashion trend
foo(ers.
'roduct 'ositiong
@,cusi-e to* fashion
a)e.
Made for great -aue.
Breat 6uaity.
Aistinguish
Monogram LV ogo
design.
1. Marketing Strategies and Key Issues
Louis Vuitton uses concentrated marketing strategies to target a s*ecific grou*
consumers. This he*s Louis Vuitton to focus on their targeted market segment to
*roduce or design the u,ury goods. Their main concern is to retain their current
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customer )ased and ensure that customers are satisfied (ith the *roducts. The
concentrated marketing strategies *ro-ide Louis Vuitton an insight of their customers7
feed)ack or user e,*erience. Louis Vuitton is not acti-ey *artici*ating in ad-ertising
or marketing cam*aign. #s a resut, consumers may not a(are of the atest *roducts
and (i consider other )rands that are acti-ey *romoting their *roducts a)o-e the
ine.
4. Recommendation
To increase e,isting market share and remain hoding the )iggest market shares in
fashion industry. #cti-ey *romoting ne( *roducts in s*ecific channes. Such as
mo-ie channes, ad-ertisement )oard at centra of the city, endorsing (e kno(n
cee)rity in *romoting ne( aunched *roducts and etc. <reate more a(areness on core
customer -aue. Louis Vuitton can aso incude a customer care hotine to *ro-ide
e,cusi-e ser-ices to e,isting customers.
8. <oncusion
Louis Vuitton (i sti continue to )e on to* of the ist in high fashion industry
des*ite the highy com*etiti-e market. Louis Vuitton sti stri-e the )est of the 6uaity
and the -aue for money. #s economy is reco-ering go)ay, more consumers are
(iing to s*end on u,ury goods. There are certain as*ects of Louis Vuitton are
different from other high;end u,ury )rands. The main as*ect is dura)iity. # ne(
Louis Vuitton )ag is ready to ser-e a customer in decades to come. Hence, consumers
are ha**y to in-est on u,ury goods that do >ustice in *rice and -aue. The S!"T
anaysis *ro-ide an insight of (hat micro en-ironment and macro en-ironment can
greaty im*act the com*any and ho( (e can target on the issues and so-e the
*ro)ems.
reference
1. htt*?HH(((.-mh.comHthe;grou*H-mh;grou*Hgrou*;mission;and;-aues
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2. htt*?HH(((.-ogue.comH-ogue*ediaHLouisIVuitton
3. htt*?HH(((.ouis-uitton.comHfrontHLHengIFSHMourneys;sectionHLa;MaisonH#;
Legendary;HistoryHHo(;It;#;9egan
&. htt*?HH(((.iterary;iaisons.comHarticeE33.htm
1. htt*?HH(((.ouis-uitton.comHfrontHLHengIFSHMourneys;sectionHVauesH@n-ironment
4. htt*?HH(((.)oom)erg.comHne(sH2E12;E1;21Houis;-uitton;to*s;hermes;as;(ord;
s;most;-aua)e;u,ury;)rand.htm
Introduction to Primary Research: Observations, Surveys, and Interviews by Dana Lynn Driscoll
Fehringer, D. (2007), "Six steps to better SWOTs", Competitive
Inteigen!e "#g#$ine, %o. &0 'o. &, pp. ()*7.
htt*?HH(((.inter)rand.comHenH)est;go)a;)randsH2E13HLouisVuitton
htt*?HH(((.)usiness(ire.comHne(sHhomeH2EE3E031EE182&HenHLouis;Vuitton;
#(arded;32.&;Miion;Aamages;La(suit
htt*?HHmoney.cnn.comH2E11HE2H21HmarketsHchinaIu,uryIouisI-uittonH
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