ABOUT THE COMPANY
Established in 1854 in a small Parisian workshop by Louis Vuitton, himself, the company was initially
established on pristine craftsmanship and quality leather trunks. After Vuitton’s passing, son George Vuitton took ownership and later expanded the company globally, maintaining the company’s emphasis on quality and luxury. Since its establishment, Louis Vuitton has continued to develop and refine its reputation for quality based on
the “four main elements of the company’s business model—product, distribution, communication and price,” explains an executive at Louis Vuitton. The company currently serves 12 different countries, capturing 60 percent market share in luxury goods. With a brand valued at $19 billion and annual revenue of $3.5 billion dollars, Louis Vuitton is positioned among the most powerful and valuable brands in the world.
CURRENT MARKETING STRATEGY
City Guides
An interactive series of video guides are available on the Louis Vuitton website, these city guides provide a mix of history and style tips for the contemporary consumer. The guides focus on the traditional elegance of iconic
cities such as Paris, London, and Rome. Louis Vuitton’s City Guides tailor to their jet setting consumer segment. These consumers travel frequently and seek entertainment. By providing these city guides Louis Vuitton is providing their loyal customers an additional service and reinforcing their brand as a staple in any
large city’s history of fashion. Louis Vuitton Cup
The 2013 Louis Vuitton Cup will mark the 30th anniversary of this esteemed event; a yachting competition
sponsored by Louis Vuitton in which the winner advances to the America’s Cup. This sponsored event caters to the extremely wealthy, who are traditionally loyal Louis Vuitton customers. The event reinforces Louis
Vuitton’s prestigious image and creates a sense of exclusivity that those who participate in the event seek. Advertisements
Louis Vuitton advertises through a mix of targeted mass media as well. Examples include full-page ads in highend fashion magazines such as Elle and Vogue, and billboards placed in major metropolitan areas. These advertisements target the younger, fashionable female adults who make up a significant segment of Louis
Vuitton’s customers. These ads, often featuring popular celebrities such as Uma Thurman, convey brand image of elegance and luxury that this segment seeks to emulate.
STP
SEGMENTATION
Geographic Segmentation Louis Vuitton's marketing strategy has been exceptional in expanding in countries with high density, such as China, India, Russia and lately Brazil. When Louis Vuitton opened its first store in China, people asked: "Why have you come here, we don't understand luxury?" The answer of Yves Carcelle - CEO and Chairman of Louis Vuitton said: "No, you are sophisticated and one day soon you'll be the biggest superpower. 18 years ago when Louis Vuitton opened its first store in China and today China is close to being the biggest superpower. The Chinese were right, they didn't understand luxury, but Louis Vuitton was there to show them what luxury means. The art of traveling, which means the fine art of living. Demographic Segmentation Louis Vuitton targets genders, men and women, from 16 to 80 years of age obviously wealthy. Business men and women with yearly high income and disposable income. Psychographic Segmentation: Louis Vuitton uses psychographic segmentations such as lifestyle and motives to further identify its target market. In countries such as China and Brazil people need to show their social status, and wealth. Louis Vuitton appeals to these customers with status related motives. Trendsetters and fashionistas are the next segment. The lifestyle segmentation is the ultimate strategy, in my opinion, of Louis Vuitton. The slogan "The Art of Traveling" set new standards for a luxury lifestyle. Since traveling is an art, then owing a Louis Vuitton product makes you part of that art. Usage - Rate Segmentation Louis Vuitton segments consumers by usage, specifically targeting heavy users. Buyer information is collected at the point of sale and stored in a database. Heavy users are sent seasonal catalogues as well as invitations to purchase exclusive product collections to encourage repeat sales and brand loyalty.
TARGETTING
Louis Vuitton targets consumers that value fine craftsmanship, tradition, style, and above all else, exclusivity. More specifically, Louis Vuitton targets the following two segments: wealthy middle aged women from 35 to 54 years old and affluent young fashionable female adults aged 18 to 34 years old who have disposable income and are brand aspirants. The average Louis Vuitton consumer is a part of the upper economic and social class and is fashionably aware. These consumers have the need to feel prestigious and emphasize the importance of self-esteem and power.
POSITIONING
The brand has also been focusing on satisfying consumers’ desire for customization and has succeeded in expanding its position in the fast-growing timepieces market and jewellery. It plans to launch its exclusive LV fragrance from Master Perfumer Jacques Cavallier-Belletrud next year, as well as new stores, with openings limited to key countries. Additionally, Louis Vuitton has opened two new iconic stores. One is dedicated
exclusively to luxury jewels and is located in Place Vendôme and the second is its first “Cabinet d’Écriture” on the Place Saint-Germain-des-Prés in Paris, constructing deeper and more substantive engagement and storytelling around the art of writing. The brand recorded outstanding results because of its ability to move into a more high-end segment of the luxury market.
SOCIETAL MARKETING
SOCIAL POLICY Encourage all their employees to reach their full career potential and achieve their aspirations, develop the diversity and the wealth of human resources in their companies in all the countries where they operate, and encourage initiatives in these areas. Outside their own company, to contribute to the knowledge and preservation of their businesses and their know-how as artisans and designer ECONOMIC PERFORMANCE Combine economic growth and respect for Sustainability criteria, which are represented for their luxury businesses by the values of creativity and excellence. Apply their creative passion to a genuine art de vivre to which their customers aspire. Strengthen their position as a global leader, and to be the benchmark in the management and development of high quality brands. ENVIRONMENT Work together to preserve the resources of the planet, to design and develop products that respect the environment, to report on their policies and projects and the progress achieved in meeting their objectives. Contribute to environmental protection above and beyond the factors directly related to their operations, by entering into active partnerships with cooperating business groups, local authorities and associations. A COMMITMENT TO CITIZENSHIP Implement a patronage program for the benefit of the largest number, the components of which reflect and transmit their fundamental values. Provide active support for major causes, fund humanitarian projects and public health challenges, and develop initiatives for young people.
