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Marketing Plan for Louis Vuitton (lv)

Essay by   •  November 16, 2012  •  Business Plan  •  1,457 Words (6 Pages)  •  2,235 Views

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1.0 Executive Summary

1.1 Objectives

The brand objective is to offer rare exceptional products.

1.2 Vision and Mission

Exceptional products go beyond finest craftsmanship; they include rare locations and moments as well as outstanding service.

2.0 Company Summary

2.1 Background

Louis Vuitton Brand is owned by LVMH group which comprises luxury brands. Louis Vuitton shared resources with other fashion and leather goods brands yet its unique and creative identity is preserved.

2.2 Company Locations and Facilities

LVMH has 1246 stores for fashion and leather goods brand in Europe, United States, japan, Asia and other market. Louis Vuitton factories are in Southern California (USA), Switzerland, Germany, Italy, Spain, and France

3.0 Products and Services

3.1 Products Description

Products differentiated for men and women which include handbags, accessories, shoes, mon monogram, colors, stationery, timepieces, jewelry, small leather goods and the art of packing.

3.2 Competitive Comparison

Compared to competitors like Hermes, Louis Vuitton had lower pricing. Louis Vuitton success in its star power and lavish fashion shows which forge brand popularity. However, popularity among middle class in China caused Louis Vuitton to lose its exclusivity. To maintain competitiveness, Louis Vuitton offered high end leather goods line which could be fully personalized.

3.3 Supply and Demand Details

Efficient supply chain system known as Pegase enables company to use five times less craftsmen and ship new collection twice as fast. Sales are robust continuing to attract new demands from South America and Asia.

3.4 Technology Needs

Specialized workers are needed for efficient production. Sewing machine and simple gadgets to glue and cut leather and tamper fine metals are needed in the factory.

4.0 Market Analysis

4.1 Target Market

Louis Vuitton targets high income group with monthly income more than $ 5500. Both men and women with age ranging from 22 to 65 years old are targeted.

4.1.1 Target Market Segment Strategy

Demographic Segmentation targeting strategy is adopted by Louis Vuitton. Louis Vuitton divides its target market into different age groups by offering multicolor and canvas monogram products for young adults and classic yet elegant Monogram products for senior groups. Gender Segmentation is also

4.1.2 Market Needs

The company satisfies market need for fashionable yet good quality product with long product life. It also satisfies high income group needs for exclusivity and prestige image. Customers using Louis Vuitton products feel good when they fit into high-class society as the products help them to exercise their ego.

4.1.3 Market trends

Following the recovery from 2008 global recession, the luxury market is recovering from a slump with US super rich households hiking their spending by 22.6 per cent in early 2010 (Anakin, 2010). Due to Asian strong recovery, it has become a trend for Chinese shoppers to snap up expensive watch, handbags and accessories form Louis Vuitton retail stores. With more Chinese middle class fueling Louis Vuitton sales, the brand become so common that ultra-rich Chinese preferred more exclusive brands like Chloe, Hermes, and Patek Philippe.

4.1.4 Market Growth

Despite the global financial crisis, Louis Vuitton reported strong growth in sales in early 2010 fueled by strong Asian sales. According to consulting firm Bain & Company (2012), China's Louis Vuitton goods market growth in 2009 to 12%. 300 Louis Vuitton Web Stores opened in 2011 with 15% due to China and 25 % in Asia and other country

4.2 Industry Analysis

Louis Vuitton is in the luxury goods industry. According to Bain & Company (2012) luxury goods market is predicted to grow 6 to 7% in 2012.

4.2.1 Industry Participants

Luxury industry participants include luxury automobiles seller like Ferraris and Lamborghinis as well as Jewellery seller like Tiffany & Co.

4.2.2 Main Competitors

Louis Vuitton main competitors are like Chloe, Hermes, and Patek Philippe offering the same types of luxury products as Louis Vuitton.

5.0 Strategy and Implementation Summary

5.1 Marketing Strategy

concentrated strategy

According to 4.1(target market) , LV certainly use concentrated strategy.

5.2 Pricing Strategy

International pricing strategy and luxury pricing strategy

According to the LV official website. It is clearly to find the price that they set actually is not same in different country. Compare to Europe or HongKong, the price that they set

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