...3/14/2013 JITESH ANAND 10IB-033 CASE STUDY: LOUIS VUITTON IN INDIA Louis Vuitton in India | Jitesh Anand 1. INTRODUCTION: Luxury Brands in India If it was few decades ago, there was a very limited scenario one could see with respect to the luxury market in India. Those days luxury market was associated with the rich class and with very few upper-middle class people. However, with the involvement of number of international luxury brands in the country, the shape of the luxury market in India has undergone a dramatic transformation. When it comes to the word luxury it is mostly misunderstood with the meaning beyond the reach of common man. With every year passing by, the so called beyond the reach of common man is proving to be a false fact. Luxury products are becoming the necessities not only for the rich class or upper middle class but also for the middle class people. Luxury market in India is build up on basic four elements which are quality, value for money, customer satisfaction and the most important creativity. In order to be successful in Indian market luxury brands should be able to sustain and fulfill these criteria on a long term basis. The Indian luxury market is growing at a rate of 25% which simply implies the consumption of luxury products has been increasing at a fast pace. India is becoming the new destination for luxury brands across the globe and Indian government opening Foreign Direct Investment (FDI) in retail has resulted in many global...
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...Louis Vuitton is the world’s biggest luxury brand for bags and accessories. It was established in France, Europe in year 1854. Louis Vuitton brand and company is an international well-established firm named after the founder and designer Louis Vuitton. Following the death of Louis Vuitton in 1892, his son, Georges Vuitton took over the leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London. In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product line by applying the craftwork and design of its leather to small leather goods. In the mid 1970s, Louis Vuitton had become the world’s biggest luxury brand in terms of market share. Louis Vuitton entered Japanese market in year 1968, and it came the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors. LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer...
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...Overall strategy of LVMH LVMH’s website states the following as their missiom statement, “The mission of the LVHM group is to represent the most refined qualities of Western ‘Art de Vivre’ around the world. LVMH must continue to be synonymous with both elegance and creativity.Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy. “ In 1987, Racamier agreed to a merger with Moët Hennessy, a company that was much more larger than LV, to form the Moët Hennessy Louis Vuitton group. Bernanrd Arnault, ranked as the fourth richest man in the world ( by Forbes, 2007) , was invited to invest in LVMH by the company’s chairman, Henri Racamier. Investing through a joint venture, Arnault ousted Racamier in 1990 and started to sweep a slew of fashion companies into the LVMH fold. Arnault is the chairman and Chief Executive Officer of Lvhm since 1989. Moët Hennessy-Louis Vuitton (LVHM) ; a world leader in high-quality products, possesses a unique portfolio of over 60 prestigious brands. The Group is active in five differentsectors: -Wines & Spirits -Fashion & Leather Goods -Perfumes & Cosmetics -Watches & Jewlery -Selective retailing First of all, the target audience is comprised of well to do individuals with high disposable incomes. Demographics of this target audience have some variability based on cultural differences in different geographical locations. The target audience is relatively focused...
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...Task specification Read the real business situation analysis for Louis Vuitton below. Voice of the Customer from Louis Vuitton Shoppers By Sampson Lee on January 29, 2009 If you ask people what they think about the Louis Vuitton shopping experience—and we did—you hear a lot about Service. Below are real comments from people who took a survey we organised with CustomerThink on the Louis Vuitton shopping experience. "No one bothered to greet me other than the security guard at door!" "I guess I did not fit the image - I was not wearing all labels." "Messy store, impolite sales assistants and poor attention to customers." "Long queue, slightly condescending assistant - not the VIP experience it should be." "I don't look like a typical LV customer, so the salespeople were in a hurry to have me out of 'their' store as fast as possible." Figure 1 breaks down the attributes customers like the least about their shopping experience at Louis Vuitton stores. We collected 2,318 valid responses across the globe. And, as you can see, Servicing Attitude was the No. 1 attribute (39 %) respondents like least about the Louis Vuitton shopping experience; the No. 2 attribute had to do with thePrice/Value issue (21 %). . (Source: http://customerthink.com/what_drives_customers_buy_louis_vuitton/) Assume you are a marketer of Louis Vuitton. 1. Perform an analysis to solve the CRM problem mentioned above. Your analysis should include: Identification...
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...Louis Vuitton Case 1. According to HSBC in February 2009, Japan was the final destination of 45 percent of luxury goods sold worldwide. According to Claudia D’Arpizio, Japan is the world’s largest market, consisting of the highest per capita spending for luxury goods. Japan is known for a group-oriented culture, which creates pressure for its citizens to possess luxury, status-driven 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...
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...Table of Contents 1.0 CASE SUMMARY 1 2.0 PROBLEM STATEMENT 2 3.0 INDUSTRY ANALYSIS 3 3.1 Market Segmentation3 3.2 Target Audience3 3.3 Market Positioning4 3.4 Competitor Analysis5 4.0 COMPANY ANALYSIS 6 4.1 4P Analysis6 4.2 POD and POP Analysis10 4.3 Market Analysis10 4.4 SWOT Analysis12 4.5 PESTEL Analysis14 5.0 STRATEGIC ALTERNATIVES20 6.0 RECOMMENDATION23 7.0 ACTION PLAN24 8.0 CONTIGENCY PLAN28 9.0 REFERENCES28 1.0 CASE SUMMARY In recent years, modern customers are no longer acquiring shopping only for their goods and services. Nowadays, these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality...
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...2. Dysfonctionnements dans le management de la Supply Chain et recommandations Dysfonctionnements dans le management de la Supply Chain : * Mauvaise circulation de l’information, désaccords stratégiques entre les directeurs de service ; * Fréquence des ruptures de stocks ; * Demande prévue sous-évaluée par rapport à la demande effective, crée la rareté d’une certaine manière mais c’est un manque à gagner énorme. (crainte des invendus) ; * Structure lourde (Gros centre logistique, entrepôt central) permet un contrôle et gage de qualité mais perd en flexibilité ; * Délais dans le traitement des commandes : Points de vente font des commandes seulement 1 fois par mois sachant que les délais d’approvisionnement sont de 6 à 8 semaines ; * Délais et coût du transport : 3 semaines en bateau et/ou €1500/tonne en avion pour satisfaire les ruptures de stock ; * Incohérence entre le mode production artisanal, long et coûteux et le lancement accéléré de nouveaux produits qui demande de la réactivité et de la flexibilité. Recommandations : * Accroitre l’indépendance des entrepôts, dans leur prise de décision, commandes à la base ; * Insister sur la circulation de l’information entre les différents points de vente, traitement direct de l’information entre les points de vente et les sites de production pour une meilleure réactivité ; * Refonder la structure de la Supply Chain de façon à ce que la Demande soit l’instigateur du renouvellement...
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...Louis Vuitton in India Executive Summary Louis Vuitton Moët Hennessy, the world’s leading luxury brand, made the decision to formally enter India in 1999. India was a familiar market for Louis Vuitton as the company had filled custom orders from maharajahs since the late 19th century. However, the Indian market was unlike any in which the company was currently operating. The changing socio-economic conditions of the developing nation opened up opportunities for the brand but also posed unique challenges such as changing customer profiles and concepts of luxury. In the West, luxury goods are often sold through company-owned stores in a luxury retail cluster spread over several blocks, usually in a city’s downtown core. In cities that did not have luxury retail clusters, Louis Vuitton operated in luxury malls. Previous attempts to develop premium retail space in India had not been successful. Nevertheless, several real-estate entrepreneurs had plans to open an estimated 300 luxury malls in India by 2010. In India, Louis Vuitton’s first two stores were introduced in luxury malls in New Delhi and Mumbai targeting customers who had shopped abroad and were familiar with the brand. The company was now looking to increase its reach and teamed up with other global brands to develop luxury malls in five Indian metros. Does a high-end brand have a market in a low income country? According to the National Council of Applied Economic Research, in 2001-02 there were 20,000 families...
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...Introduction: We The A-Team are going to explain how Louis Vuitton, the world renounded luxury brand with a long history of producing luxury goods has left its mark on the world. Louis Vuitton started out as a single product brand of making leather bags which were all handmade. As Shin-Fen Chen states, “Louis Vuitton combined the artistic creativity of its designers with a rigorous management of resources to produce brands that were the most profitable in the world in the luxury genre.” Since the company’s creation, time has shown people will spend the extra money for the extra benefits that the handmade luxury leather bags provide them. Louis Vuitton has gained success due to communication and expertise between managers and designers. They currently have four business segments which include an array of goods. These goods consist of wines and spirits, watches and jeweler, perfumes and cosmetics, and fashion and leather goods. (Chen, 2008) Also, the brand has expanded into new markets, the two largest being the United States and Europe. We are going to dig deeper and see how this well-oiled machine we call Louis Vuitton functions. Question: 1. Why do people buy luxury goods? In analyzing why people buy luxury goods we can break down the people’s reasoning for doing so into several different categories. First we look at what a luxury good entails. A luxury good is not a good necessary to live, but it is viewed as a desired item by the society that the people live...
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...turn your head and Louis Vuitton is everywhere. The celebration of the 30th anniversary of the presence of the illustrious, glittering French multinational in Japan took place in Aoyama, one of Tokyo’s fashionable districts. A unique vision of luxury took shape when Louis Vuitton opened yet another new store inside 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...
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...Louis Vuitton Case Analysis Key Issue Louis Vuitton is a flagship group of LVMH, which had double digit growth during 2010 and 2011. Michael Burke, the new CEO of LV group is uncertain about whether the group can grow sustainable. The main issue he current encounter is that how to push LV to grow steadily and protect LV’s values and heritage from being undermined. External Analysis PESTEL Analysis Political: The global luxury goods market can separate into America, Europe, Japan, Asia-Pacific, and rest of countries by region. Overall, the major luxury goods consumption countries have relatively stable political environment in recent years. However, in southern Europe, the governments’ financial turmoil and austerity measures indicated an underlying weakening demand of luxury goods for local people. But the gap was filled by travelers from other countries. The import duty policy in different countries is another factor should be considered in the industry. The high import duty will be part reason of high price differences between different countries. Consequently, the grey market can be formed in the countries which have high price differences. Economic: The major companies in this industry are based in Europe, so the euro exchange rate will be an important factor to the industry. The growth rate will be different by being measured with euro terms and nominal terms. In order to eliminate the exchange rate influence...
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...INT204 October 19, 2014 Midterm Quiz Answer each question. You must use the D2L guide (only!!!!) for the Chicago B referencing format. Think about what disciplines your work addresses and then search relevant DePaul databases: Sociology? Economics? Marketing? Geography? Law? Nongovernmental? Governmental? Names of all those in your group with phone numbers and emails: Group topic/theme (be simple and direct): a. Louis Vuitton handbags Particular research tasks (division of labor) and who is doing it (depending on how many you are): a. Sara: The history and establishment of the brand Louis Vuitton. b. Xuan/ Miranda: The market, revenue, and statistical and demographical information of the brand Louis Vuitton, especially its handbags. 1. What is your project's tentative title. (hint: use simplest word combination that accessibly and precisely communicates the list of your research. Hint: think about keywords that researchers would need to use to find YOUR work. a. 2. How many hours have each of you spent researching potential topics as of today? a. name/hours: Sara/ 4 Hours b. name/hours Xuan/ 4 Hours 3. How many hours has your group spent researching your chosen/particular topic as of today? a. name/hours: Sara/ 14.5 Hours b. name/hours: Xuan/ 14.5 Hours 4. List the scholarly databases used (do not list GoogleScholar at this point—this is NOT a database; nor can you use Academic Search Premier, WorldCat, news databases, or JSTOR, though you’ll be able to...
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...success of the new item. By implementing all of these factors within a marketing plan, any company or business may strive to be boundlessly prosperous in its given field. Business Overview Louis Vuitton, the brand, and the person, share humble beginnings. At the tender age of sixteen, Louis Vuitton began working as an apprentice in Paris, France in 1837. In a period when transportation occurred primarily by trains, boats, and carriages, luggage underwent a significant amount of wear. It was important for individuals to protect their belongings while traveling great distances and throughout long journeys. It was during his apprenticeship that Vuitton began building customized boxes and trunks tailored to meet the needs of clients. Seventeen years later, Vuitton embarked on the beginning of his own business. In 1859, the Louis Vuitton workshop began with merely twenty total employees, expanding later to one hundred workers in 1900, and again in 1914 to include 225 persons (Louis Vuitton, 2015). During the early 20th century, travelers of all walks of life carried all valuables and possessions in trunks and boxes. Often in this period, the possessions of many voyagers were preyed upon by thieves and burglars. It is because of these robberies that Louis and his father Gorges Vuitton wanted to protect the precious possessions of their clients. Knowing that many times clients traveled with all of their worldly...
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...a quote from Bernard Arnault. He is a leader who emphasize efforts. He is a current chairman of LVMH (Louis Vuitton Moet Hennessey). He was born on March 5th, 1949 in Roubaix, France born as a son of business man. Since he was young, he was known as a genius. He got early admission to École Polytechnique which is a famous university that produced a lot of leaders in France. In 1971, after he graduated the university, he joined to his father’s construction company. In 1976, he persuaded his father to sell a part of company and made a huge accomplishment, then the company became a real estate company. In 1979, he became a chairman of his father’s company. At that time, he took over a Cognac company, Hennessy. As François Mitterrand who was a socialisms became a president of France in 1981; he moved to the U.S. because he didn’t fit to Mitterrand’s policy. While he was staying in the U.S., he started to take over a lot of fashion companies. There was an interesting opportunity why he started to focus on Fashion Company. One day, he took a taxi in New York and he asked driver, “Do you know who the president of France is?” The driver couldn’t answer, but he knew a French fashion brand, Christian Dior. After then, he thought a promising business is what people know a lot. In 1984, starting from Christian Dior, he started to took over a lot of fashion companies, such as Louis Vuitton, Chloe, Givenchy, BVLGARI, etc. In July 1988, Bernard Arnault acquired Céline. In 1993, LVMH acquired...
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...PUBLIC RELATIONS & EVENTS IN LUXURY Lousi Vuitton CASE STUDY SKEMA BUSINESS SCHOOL LUXURY AND FASHION MANAGEMENT GROUP MEMBERS: Huanping HU Jingcheng LI Mingjun XIE Yuzhu ZHAO Yinghang ZHOU PUBLIC RELATIONS Definition There is not one single generally accepted definition of public relations. Instead, there are many ways to define it. Generally speaking, public relations (PR) is the practice of managing the spread of information between an individual or an organization(such as a business, government agency, or a nonprofit organization) and the public. Significance/Purpose • Significance: public relations possess deep skills in media relations, market positioning and branding. • Purpose: to help companies deliver clear and unambiguous information to a target audience that matters to them event not sometimes. Composition • Public relations work consists of a variety of activities by individuals and organizations intended to promote a positive relationship or image among. General kinds of PR work: Publicity, Event management, Publication design. (Their products are intended to influence public opinion and are designed to promote and protect an individual or organization's image and products.) • Tactics Financial public relations Consumer/lifestyle public relations Crisis communication Internal communications Luxury Brand Government relations Food-centric relations IN LUXURY History of Louis Vuitton • • • • In 1854 it was first introduced...
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