Louis Vuitton

Louis Vuitton is the world’s most valuable luxury brand and is a division of LVMH.
Its products include leather goods, handbags, trunks, shoes, watches, Jewlery and
accessories. Most of these are adorned with the LV monogram. It is one of the most
profitable brands in the world with profit margins approaching 40%. Long-time
creative director Marc Jacobs left Louis Vuitton in 2013 after 16 years in charge of
the brand. He plans to focus on his own Marc Jacobs line, which is also owned by
LVMH. Recent product endorsers of the brand include Angelina Jolie, Muhammad Ali
and Michael Phelps.”
The Louis Vuitton History

In 1854, a Frenchman named Louis Vuitton started a luggage company that he

named after himself. It wasn’t until 1858, though, that Vuitton designed a style of
luggage that really put the brand on the map. At the time, most of the luggage on
the market were rounded-top trunks that were designed primarily to promote water
runoff. Louis Vuitton, however, decided to introduce a flat top trunk that would go
easier to stack and store during travel. and Bombay.
In 1936, Georges Vuitton died and passed ownership of the company to his son
Gaston-Louis Vuitton. A few years later, when Germany invaded France at the peak
of WWII, the Louis Vuitton brand entered a controversial period in their history.
Throughout Germany’s occupation of France, Louis Vuitton partnered with the
Germans in order to dramatically increase their wealth. In response to a book that
was published detailing Louis Vuitton’s business relations with Nazi Germany, a
spokesperson for the brand later said, “This is ancient history. The book covered a
period when it was family-run and long before it became part of LVMH. We are
diverse, tolerant, and all the things a modern company should be.”
By 1989, Louis Vuitton was operating a total of 130 stores worldwide, and in 1997,
the brand introduced its first line of clothing for men and women. Since then, Louis
Vuitton has gone on to become one of the most profitable fashion brands in the
world. A 2010 study conducted by Millward Brown listed Louis Vuitton as the world’s
19th most valuable brand and estimated its worth at a little over $19 billion.

Today, Louis Vuitton still has the unfortunate title of being one of the most
counterfeited brands in the world as well. In 2004, Louis Vuitton fakes accounted
for 18% of counterfeit accessories that were seized by the European Union. In this
fight against counterfeit products that Louis Vuitton is still caught up in, the Louis
Vuitton logo has played a central role. Its design and the Monogram Canvas that it
is found on were originally meant to prevent the production of counterfeit logos.
Today, though, the status symbol that the Louis Vuitton logo has become is now
one of the central reasons why so many fake Louis Vuitton products exist.
Nevertheless, having a logo so highly esteemed that it is copied by counterfeiters is
a good problem to have. As a brand built around name recognition and status, the
Louis Vuitton logo has been central to the company’s success. Interestingly enough,
the logo that Louis Vuitton initially adopted well over a century ago is still the exact
same design that the brand employs to this day.
Chairman And Chief Executive Officer of LVMH “CEO”

Bernard Arnault is Chairman and CEO of LVMH Moët Hennessy – Louis Vuitton,
the world’s leading luxury products group.
Born to an industrial family in Roubaix, France on March 5, 1949, Mr. Arnault
attended the Roubaix lycée and the Faid Herbe lycée in Lille. He then went on to
study at the Ecole Polytechnique.
He began his professional career that year as an engineer with the Ferret-Saviel
construction company and successively was promoted to various executive
management positions before becoming Chairman in 1978.
EMPLOYEES OF LOUIS VUITTON

The company has expanded its international retail network all over the world.
LVMH Most Hennessy Louis Vuitton is headquartered in Paris, France.
MARKETING STARTEGY OF LOUIS VUITTON

• SEGMENTATION, TARGETING, POSITIONING IN THE

MARKETING STARTEGY OF LV
Louis Vuitton is one of the trendsetters and fashionable brand which uses a mix of
demographic and psychographic segmentation strategies
Differentiating targeting strategy has been used by LV to satisfy the changing needs
of the customers.
It has always positioned its products as a symbol of superiority and had built
reputation over a period of time. LV uses value-based positioning strategies to
attract the potential customers in the market.

• COMPETITIVE ADVANTAGE IN MARKETING STARTEGY OF LV

STRONG PARENT COMPANY: LVMH (Moët Hennessy Louis Vuitton), a
multinational luxury goods provider is the parent company of Louis Vuitton. It has
dedicated 125000+ employees across the globe. LVMH is financially strong and is
handling diversified 6 businesses.

GLOBAL EXPANTION: LV is aggressively expanding its operations in

developed as well as under developed nations which are helping the company in
increasing its sales and shifting its dependence from saturated developed nations
to developing countries.
 • BCG MATRIX IN MARKETING STARTEGY OF LV
In the BCG matrix its apparel business, ready to wear leather items and sunglasses
is Stars while shoes, watches and jewellery are question marks in the BCG matrix
due to competition from a large number of small and big players in these segments.

• DISTRIBUTION STARTEGY OF MARKETING STARTEGY OF

LV
LV markets its products & accessories through its own outlets globally and through
supermarkets /apparel chains which help them to counter counterfeit products and
at the same time control the quality and product pricing.

• BRAND EQUITY OF MARKETING STARTEGY OF LV

Popularly known with name LV, Louis Vuitton has been successful in emerging as
one of the best luxury brands. For 6 consecutive years, it has been named as the
most valuable brand in the luxury segment globally. Some of the influential brand
endorsers of LV are Michael Phelps, Angelina Jolie, Bono and the recent one is Will
Smith’s son Jaden. The brand LV has been valued $ 27.4 bn (as of May 2016) and
it has been ranked at 19th no. in the Forbes list of world’s most valuable brand.
 • COMPETITIVE ANALYSIS IN MARKETING STARTEGY OF
LV
In a luxury or a high-end segment garnering reputation is absolutely necessary for
the survival of the brand. Louis Vuitton has been closely associated with various
celebrities from different fields so as to position itself superior to its competitors.
Hermes, Gucci, Chanel, Prada etc are some the brands which compete with LV in
some of the other product categories.

• MARKET ANALYSIS IN THE MARKETING STARTEGY OF LV

Changing life style, fluctuating exchange rate, climatic conditions, sociocultural
change and evolution of digital media even in the underdeveloped nations are the
factors which are affecting the companies in the luxury apparel industry. Companies
in this segment are more focused on the service part, promotions through different
mediums and creation of touch points.

• CUSTOMER ANALYSIS IN THE MARKETING STARTEGY OF

LV
Louis Vuitton is the manufacturer and distributor of the luxury goods able to attract
customers in the age group of 20-45 years. Customers of LV are more inclined to
superior design, perfection and art.
A CLOSER LOOK: 4 REASONS WHY LOUIS VUITTON IS SO
SUCCESSFUL

1. Treading a fine balance between tradition and

innovation
.

2. Perpetuating the image of “Ultimate Handmade

Quality”
3. ‘Exclusive Series’ make LV pieces more desirable
4. Designed and Promoted by the Best Talent
 weaknesses in the Louis Vuitton SWOT
LOUIS VUITTON Analysis:
1. Immense competition in the segment makes
WEAKNESS market share growth for Louis Vuitton slow.
2. Fake imitations affect brand reputation and hurt
sales.

Opportunities in Louis Vuitton SWOT

Analysis:
1. The company needs to adopt the current fashion
LOUIS VUITTON trends to stay in business.
OPPORTUNITIES 2. Louis Vuitton can engage customers online and
increase business through ecommerce platforms.
3. Expansion of the brand into emerging economies
targeting rich people with affluent lifestyles.
4. Tie-ups with leading hotel chains, fashion houses,
lifestyle events etc can boost business for Louis
Vuitton.

threats in the SWOT Analysis of Louis

Vuitton
1. Fake products all around the world affect the
LOUIS VUITTON business.
THREATS 2. Economic crisis, pandemics and recession can
adversely affect Louis Vuitton's business.
3. Economic crisis, pandemics and recession can
adversely affect Louis Vuitton's business.
4. Increasing competitor activity can lead to decline
of sales for Louis Vuitton.
LOUIS VUITTON COMPETITION
the top 12 competitors of Louis Vuitton:
1. CHANEL
2. CHRISTIAN DIRO
3. BURBERRY
4. RALPH LAUREN
5. PRADA
6. ZARA
7. GUCCI
8. HUGO BOSS
9. HERMES INTERNATIONAL
10. VERSACE
11. VALENTINO S.P.A
12. RICHEMONT
LOUIS VUITTON STP
Segment: Rich working women having a taste for clean cuts n designs in bag
apparels.

Target Group: Premium segment urban men and women.

Positioning: Elegant and modern apparels and accessories.

SWOT Analysis of Louis Vuitton

the Strengths in the SWOT Analysis of

Louis Vuitton:
LOUIS VUITTON 1. Louis Vuitton is one of the oldest fashion
STRENGTHS houses with more than 150 years of history.
2. Louis Vuitton brand is easily recognizable
because of its logo and monogram canvas on
most of its products.
3. The brand has its presence in most of the
large shopping hubs and multi-retail brands
of the world.
4. The brand is available exclusively in more
than 450 stores in 50+ countries.
5. Louis Vuitton also makes custom tailored
products for its few elite customers.
6. The brand has a clientele including
international celebrities.
7. Extremely high brand recall and global
presence.
8. Advertising and marketing using celebrities
like sports stars, film stars are effective.
9. Louis Vuitton has more than 10,000
employees globally.
10. The company has been recognized regularly
one of the most valuable & luxury brands.
LOUIS VUITTON COMPANY’S STRATEGICAL
MANAGEMENT POLICIES.

External Analysis
Political environment: The political environment has a significant impact on the
ability of a firm to achieve success in the market. According to Kaufmann and
Murakami (2013: 71), Louis Vuitton has been successful because of the peace that
has been seen in France.

Economic environment: Recent studies show that the economic environment in

France has remained very attractive for a long time. The country remains one of the
top consumers of luxury products. Statistics below shows how the economy of
Europe suffered in 2009.

Social environment: Social forces have a significant impact on the trends in the
luxury goods industry. According to Li (2012: 21), socio-cultural practices have a
major effect on the buyers’ purchasing patterns.
Technological environment: Technology has had a transformational impact on
the way firms operate today. The firm is currently using machines to enhance speed,
standardise, and improve the quality of products.
Ecological environment: Ecological factors also have a major impact on the way
firms operate in the macro-environment. Global society is becoming sensitive to the
amounts of greenhouse gases that come from the manufacturing firms.

Legal environment: The legal environment is a macro-environmental force that

affects the operations of firms in the market. According to Kaufmann and
Murakami, a firm cannot operate in a country that has no clear laws and
regulations to guide the business sector.

LOUIS VUITTON PRESENT MARKET SHARE AND

REVENUE GROWTH.
CONCLUSION
On balance, it is possible to note that louis Vuitton remains one of the
most successful companies in the world market its products are still
seen as luxury items for a special club of choser. The company has
implemented numerous effective strategies, and it can remain of the
leaders.
 MODERN MARKETING

TOPIC: LOUIS VUITTON

CLASS: 1 BCOM ‘B’

COLLEGE: NEW HORIZON COLLEGE

SUBJECT: PRINCIPLES OF MARKETING

GUIDED BY: MRS.ESHWARI

TOTAL NO OF PAGES:

DATE OF SUBMISSION: 13/12/2021

NAME: NITHYA. M. REDDY

ROLL NO: 155
 INDEX

I. INTORDUCTION
II. HISTORY OF THE COMPANY
III. CEO PROFILE
IV. EMPLOYEE PROFILE
V. MARKETING STARTEGY OF LOUIS VUITTON
VI. LOUIS VUITTON COMPANY’S STARTEGICAL MANAGEMENT POLICIES
VII. LOUIS VUITTON PRESENT MARKET SHARE
VIII. SWOT ANALYSIS OF LOUIS VUITTON
IX. REASONS WHY LOUIS VUITTON IS SO SUCCESSFUL
X. COMPETITORS OF LOUIS VUITTON
XI. CONCLUSION