Case Study: Longchamp

Introduction

Long champ is a French luxury leather goods company, founded in Paris in 1948 by

Jean Cassegrain. Jean Cassegrain who initially sold tobacco and then produced luxury

leather-covered pipes, then expanded into small leather goods, such as wallets,

passport covers etc. Longchamp Iconic Product Le Pliage is clear winner a was the

cash cow for the company. La pliage has high sales levels generated cash to support

the full product line and spawned tremendous brand awareness, but the only problem

was la pliage was a low cost product and they had to go start from la pliage which was

at 60 pounds and its other products which went up to 800 pounds Lomgchamp was

somehow missing a balance in the pricing.

Decisions Needed

For Lonchamp to increase its overall value to 1 billion should it increase its sales on La

pliage rather than limiting it from distributing it to full capacity. Should lonchamp add line

extension to Its Iconic Product La pliage to leverage its Brand equity in more luxury high

Price point products. Should Longchamp create a separate brand called Lapilage for

itself which can cater to low cost products users and leverage the brand equity gained

from the success of la pilage.

Key Issues
What was Longchamps original equity? How did Le Pilage Change Longchamps Equity?

Was Le Pilage successful innovation? Why or why not?

How should Longchamp manage le Pilage in the future

Should Longchamp extend into additional categories like menswear, eyeglass and

fragrance?

If so, which ones, and in which Priority?

How do Longchamps distribution choices effect the equity of the brand?

BACKGROUND:

(Insert paragraph)

Present an overview of the situation with key insights and dynamics. You should assume the audience of the report is

the executive leadership team of the company, so they are aware of the company and brands.

DECISIONS NEEDED:

(Insert paragraph)

Explain what you are seeking to achieve from this report and/or what decision you are asking the leadership team to

make from reading your report.

KEY ISSUES:

(Insert bulleted statements)

Highlight and analyze potential issues in the situation that the leadership team should understand. This analysis

should be unbiased and present all sides of the issues.

RECOMMENDATIONS:

(Insert paragraph or bulleted statements)

Your recommendation(s) should be written S.M.A.R.T. (Specific, Measurable, Achievable, Relevant and Timely)
NEXT STEPS:

(Insert bulleted statements and estimated dates)

Describe the action(s) that you/the team need to take to implement your recommendation(s).