...MGMT 102 Strategy Las Vegas Sands A Company and Industry Analysis Submitted by: Adhitya Christian Martin (G3525406X) Chye Hui Lin (S8734971C) Darren Chng Meng Hoe (S8509392D) Jasmin Hamdani Ham (G3529740K) Karina Ondang (G0638741T) Liu Fang (G3529124K) Louis Lim Wei Chun (S8416257D) * Contents Executive Summary | 1 | Company Overview | 2 | External Environment | 2 | Internal Environment | 4 | Acquisitions, Restructuring and Cooperative Strategies | 6 | Business-Level Strategy of Las Vegas Sands in the U.S. | 6 | Corporate- Level Strategy of Las Vegas Sands in the U.S. | 11 | International Business-Level Strategy of Las Vegas Sands | | Macau | 14 | Singapore | 17 | Bibliography | i | Appendix | iv | * Executive Summary Las Vegas Sands is a hotel, gaming and resort development company which operates in many countries worldwide. It has 3 significant establishments; The Venetian and The Palazzo in United States, The Venetian Macao in Macau and Marina Bay Sands in Singapore. The company places strong focus on their code of conduct and ethical behavior of their employees. The company has both tangible and intangible resources. Their capabilities include excellent management of operations and human resources, specifically tailored offerings to the Asian market, the MICE business and Eco 360 cost savings initiative. We have identified their core competencies to be in MICE, the Eco 360 program, its Paiza Club which...
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...Comme des Garçons on September 4, 2008, in the heart of Japan’s capital. The pop-up store situated on the prestigious Omotesando Street was an illustration of Louis Vuitton’s attachment to the Japanese luxury market. Yves Carcelle, chairman and CEO of Louis Vuitton, said, “This project not only brings a new meaning to luxury, but also speaks volumes about how the know-how and heritage of Louis Vuitton have always been perceived in Japan, including by its foremost designers. We are very proud to have been able to help Rei Kawakubo2 relive her memories in such an original and creative way.”3The Omotesando guerrilla marketing event reflected Louis Vuitton’s success in Japan. Louis Vuitton had been following an aggressive marketing strategy in the country, opening extravagant stores such as those in Ginza or Roppongi.Take a walk on Ginza’s main street, Chuo Dori, the centre of a paradise for shoppers, with longestablished department stores, such as Mitsukoshi, Takashimaya and Matsuzakaya. Continue through the high-end fashion street Namiki-dori. Stop. There it is. You have reached the massive flagship Louis Vuitton store. When Louis Vuitton, the world’s biggest luxury-goods firm, inaugurated its huge shop in 2002 in the district of Omotesando, Tokyo, hundreds of people were queued outside. During the first few days, sales exceeded the initial estimations by ¥1 million.4 In the last decade, Japan had been Louis Vuitton’s most 1 This case has been written on the...
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...products such as Louis Vuitton (LV). This makes the Japanese luxury market easily penetrated by new and innovative fashions. According to Davide Sesia, president of Prada Japan, Japanese Women, to a much greater extent than Europeans have a “psychological need to own something considered to be beautiful”1. In the late 1990’s, LV created limited- edition collections to claim a prestigious role. This was their marketing strategy to gain the attention of their upper class customers which reinvigorated the brand identity as well as earning them market share. In addition, Japanese people are considered to spend more time out of their residences than any other culture. In Japan, looks are a direct correlation to a person’s social position, which persuades Japanese to shop for luxury items. Quality is a key factor for successful brands in Japan. LV has a focus on constant improvement of quality and offer lifetime repair guarantees for its products. In 1996, Azzedine Alaia, Manolo Blahnik, Romeo Gigli, Helmut Lang, Isaac Mizrahi, Syvilla and Vivienne Westwood were hired to create a limited edition series featuring the Louis Vuitton monogram. Also, in 1998, designer Marc Jacobs, a successful American international designer was hired to be their new art director to insure their shoes and ready-to-wear collections were desirable to consumers. Its loyalty based strategy provides customers with maximum quality, creating an endless desire in LV products. Due to the desire for...
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...accessories and travel trunks (Nagasawa, 2008). The company is primarily known for its beige monogram LV that appears on a chestnut background of all of its products (watches, sunglasses, jewelry, etc). LVMH is often considered as the most valuable luxury brand that mainly focuses its efforts on offering luxury goods for the very wealthy people of society since it was created in 19th century. This allows the company to charge premium for its products as the target market comprises mostly price insensitive consumers. Therefore, Louis Vuitton sells goods with product attributes such as exclusivity, high quality, creativity and innovation which give consumers the sense of prestige or higher status that only select few can afford. 2.0 Social and Demographic Trends Demographic and social trends are vital in the luxury industry to identify target market in a broad apparel segment. The most recent demographic/social trends across many nations manifest themselves in terms of rising ageing population, powerful generation Y and X consumers, slightly less powerful but still influential baby boomers and greater spending power of consumers in the emerging economies (China, India, Brazil, etc). As a result, this has contributed immensely to a rapid rise of luxury brands’ profits especially in Asia (China and Japan). In order to respond to demographic and social trends effectively LV should...
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...the success of Louis Vuitton (LV) in Japan, and identify the current phenomena in the market. Luxury is a business model of LV in accelerating Japanese consumers. It is followed by great execution of marketing principles in term of Product, Distribution, Promotion, and Price. However, the modern life of consumers has created change in their behavior. It has become a serious issue that challenges LV’s success in the future. In constructing this paper, a review of relevant journal, newspaper, academic publications, and online resources were used. Consumer behavior change is identified as a significant influence that challenges future performance of LV in the market. LV must seriously think on how to strategically maintain its competitive advantages in the market. This paper recommends LV to enhance its luxury existence in the heart of potential customers. It can be done through extensively enhancing customer relationship, and the main concept that should be implement is strategic alignment between its current marketing programs and Research & Design functions to support high quality production, which accommodate consumers’ expectations. Table of Contents EXECUTIVE SUMMARY………………………………………………………………………....i 1.Introduction ..................................................................................................................... 1 2.Business model strategy: Luxury as a business...
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...FASHION FORECASTING AND CONSUMER BEHAVIOUR ASSESSMENT 1: INDUSTRY RESAEARCH INVESTIGATION SELECTED LABEL: LOUIS VUITTON LOUIS VUITTON WAS A FRENCH ENTREPRENEUR AND DESIGNER WHO’S NAME HAS BECOME ICONIC IN THE FASHION WORLD. STUDENT NAME: HARIS BIN NAJEE STUDENT ID: 131504007 STUDENT NAME: HARIS BIN NAJEE STUDENT ID: 131504007 INTRODUCTION: Louis Vuitton one of the biggest name in fashion luxury brands was born on august 4, 1821 in Anchay, a smallest town in eastern France mountains. Louis Vuitton belonged to a family of working people; most of his family members were farmer, millers and carpenters. His father Xavier Vuitton used to work as a farmer and his mother, Coronne Gillard was a miller. START AS LUGGAGE PACKER: Louis Vuitton started his career as a luggage packer. During that time rich people used to travel a lot and they always needed someone expert to pack their luggage so that their suits and dresses would not winkle. Louis Vuitton started getting famous and was respected in Paris upper class people. In 1853, Vuitton became a personal packer for French emperor Napoleon’s wife. Vuitton also created personal luggage for her. INVENTION OF FLAT-TOPPED TRUNK: After establishing his name in field of luggage packing Louis Vuitton opened his own workshop in Paris. And soon Louis Vuitton established himself as a designer of strongly built luggage. Vuitton introduced...
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...Luxury Brand Strategy of Louis Vuitton Shin'ya NAGASAWA* * Graduate School of Commerce, Waseda University Tokyo, Japan, nagasawa@waseda.jp Abstract: By systematically breaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a busi ness m odel for success. Showing that the current rise of Louis V uitton is not a coincidence but rath er so mething ach ieved th rough strat egy will su rely b e of in terest to firm s struggling with lack of brand power or those looking to boost brand power. Key words: luxury brand, brand management, Louis Vuitton. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word “brand” to refer to the likes of Coca-Cola and McDonald’s, there is a vast gulf between these brands and the luxury brands we e xplored i n t he p revious b ook. I n researchers’ brand m anagement theories, one r arely fi nds m ention o f representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although small in scale [1]. This...
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...Luxury Brand Strategy of Louis Vuitton Shin'ya NAGASAWA* * Graduate School of Commerce, Waseda University Tokyo, Japan, nagasawa@waseda.jp Abstract: By systematically breaking down th e strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for l uxury brands as well as to derive a busi ness m odel for success. Showing that the current rise of Louis V uitton is not a coincidence but rath er so mething ach ieved th rough strat egy will su rely b e of in terest to firm s struggling with lack of brand power or those looking to boost brand power. Key words: luxury brand, brand management, Louis Vuitton. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word “brand” to refer to the likes of Coca-Cola and McDonald’s, there is a vast gulf between these brands and the luxury brands we e xplored i n t he p revious b ook. I n researchers’ brand m anagement theories, one r arely fi nds m ention o f representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although...
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...LV is named as the world’s most valuable luxury brand. It stays fresh while retaining its cachet in the following ways. LV develops an effective positioning among competitors. LV positions itself as high end prestige product of leather goods, handmade, state-of-art materials and craftsmanship to produce the finest product. Its brand uniqueness creates competitive advantages. The unique selling point of LV is its handmade product and craftsmanship. LV collaborated with other brands to product rare and limited editions of products to attract its brand awareness and create brand distinctiveness. LV products can only be found in exclusive distribution channel. Standalone boutique or flagship stores can be found in upscale shopping district and inside high end department stores or through ecommerce section of its website to ensure authentic LV products. LV grows its business by extending its product lines from women’s collection to men’s collection. LV make use of prestigious stars, high profile celebrities, models, musicians and actors for the launching of marketing campaigns. LV is one of the most counterfeited brands. However, the counterfeiting is not always negative whereas some positive effect can be created instead. From LV perspective, the counterfeiting issue triggers LV to redefine its marketing strategies time to time. It speeds up LV to design innovative and creative products to lure customer in order to position itself as a trendy and fashion brand. For pricing strategy...
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...luxury product groups coming to settle in Beijing, Shanghai and Hong Kong. The numbers of shops are now beyond that of Italian and equals to that of London. In previous years, in Shanghai and Beijing, Tod 's, LV, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and etc. brands flooded in just a few months. At present, the domestic market possesses nearly two thirds of the luxury brands, estimate in 2013 years or earlier, people can find all luxury brands in domestic market. • The status of LV’s market in China and its strategy: There are about 100 sales outlets of LV watch and jewelry in domestic now. LV bag has opened 39 stores in China now and the sale amount is accounted for nearly 40% of the whole sale amount of LV in the world, which is beyond the Europe,the birthplace of the 19% market share and the 23% market share of USA. A Chinese cinema's manager said jokingly: “If a cinema can earn 20 million CNY a year, it will laugh, but that is just the amount of sales of LV stores in Hangzhou in a month. Indeed, through the Chinese people’s efforts to the Chinese film industry, it earned more than 10 billion CNY at the box office mark in 2010, but only LV, a luxury brand in China for a year in sales is for nearly 13 billion CNY. Global famous luxury brand Louis Vuitton (LV) will break through...
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...Luxury Market? Japanese luxury market has often placed the greater deal about value on quality along with exclusivity of the products that are being offered as well as it is the critical success factor for the luxury brands within Japan. Fact, which Louis Vuitton has regularly concentrated on enhancing the quality of their product portfolio, has been the important element towards brand’s success in between Japanese luxury market. What made LV’s business model successful within Japanese Luxury has been most important because of the aggressive marketing strategy that they have adopted in the entire nation. Rather with its heritage, “savoir-faire à la française”, constant innovation, quality of its products along with the offered lifetime repair guarantees, LV’s has managed making their Japanese consumers loyal to brand along with succeeded to build their empire within the Japan. What are the opportunities and challenges for LV in Japan? Opportunities Features of evolution of ageing Japanese population might be the option for Louis Vuitton, like wealthier families along with old women with enhanced buying power, however establishing the Internet business, application for the smart phones and also expending the newer range of products for men as well as kids might be next step for enhancing growth within the Japanese Luxury market. Challenges Changes within the Japanese society along with mindset have been the biggest challenge for Louis Vuitton. New generation does...
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...Louis Vuitton is a French fashion house founded in 1854 by Louis Vuitton. LV is mostly famous for its high-class leather bags and travelling trunks. It is also known as Louis Vuitton Moet Hennessy (LVMH) after merger with leading manufacturer of champagne and cognac, Moët & Chandon and Hennessy, in 1987. Louis Vuitton is one of the world most valuable luxury brands with the brand value of $29.9 billion according to the Forbes magazines listing November 2014. Quality craftsmanship, heritage and history are key factors of success for luxury brands like Louis Vuitton. Louis Vuitton has been growing fast due to increasing demand in China. Chinese consumers have quickly risen among the world’s biggest consumers of luxury product and the growth doesn’t seem to end. LV has become extremely popular brand among the fashion conscious Chinese and Japanese consumers. Consumer surveys reveal that it is among the top 5 luxury brands in both countries. The brand is clearly visible in all of the main cities all around the world as it is very easy to find several girls carrying the LV bags, wallets, and others accessories. China is the most essential market for LV, but it still has to concentrate on keeping sales up also in other main markets like Japan. The rise of LV in China and other markets is not a coincidence. It has been achieved through extensive strategic approaches and extraordinary luxury brand management. LV has successfully grasped their potential consumers in term of attitude...
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...key requirement of a luxury consumer. The consumer bases their purchasing decisions mainly on the aura of the brand and completion of their ‘actualization needs’. Therefore, aura of the brand is more important than exclusivity. A luxury consumer is always looking for newer ways to satisfy their inconsistent wants and needs. Therefore, it is important for Gucci, LV and Vertu irrespective of their exclusivity and geographical presence to research and give their consumers major importance, to be successful in the fashion or high-end market. This report will aim to discuss the key success factors of Gucci, LV and Vertu that have impacted on their brand image and exclusivity. Furthermore, it gives a detailed explanation supported with examples on how they achieve their elitism. It then discusses the problems and obstacles if these three brands wanted to establish themselves in global markets. The report also discusses their current status and performance in countries such as India, Honk Kong and more. Regiocentric and Geocentric marketing approaches are two international marketing strategies that can help Gucci, LV and Vertu whilst entering a new geographical location. The two practices...
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...Louis Vuitton in India Retail Marketing Strategy 1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall? A. Opportunities 1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment. 2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015 3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward. 4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands Threats 1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products. 2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive...
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...take a look at how Louis Vuitton maintain such a strong presence on the global stage. Louis Vuitton Analysis Louis Vuitton’s Business Model Luxury brands, generally speaking, have not fared well during the past few years. The industry (luxury items) declined by billions of dollars. Writers for luxurydaily.com said the “air of rarity” was in peril. The global recession put luxury markets in a downward spiral. That is, except for Louis Vuitton (LV) and Chanel. The LV brand held onto the number one spot it has held for the past ten years. This year has seen an increase in profitability upwards of 16 percent, almost triple that of 6 percent last year. (King, 2015) The Louis Vuitton business model implements innovative and alluring ways of capturing new audiences. For instance, the company added social media and the likes of snapchat to their traditional modes of marketing. The management company for the LV brand, Ogilvy’s Global Strategy and Planning Group, uses a unique process to build brands call “The Big Ideal”. They believe LV and other companies that sell luxury items should be “consistent and authentic and that they must be a guidepost to a specific viewpoint. Therefore, since business risk is not determined simply by affordability; future challenges maneuver around mass marketing...
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