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Transcript of Louis Vuitton
associations Brand loyalty Brand awareness Brand attitude Functional realm Emotional realm Subjective
characteristics Brand concept “With the crisis, bling bling is passé”
- Bernard Arnault, Chairman of LVMH - Millward Brown: Top 100 Most Valuable Global Brands 2009 Emotional bonds add brand value Core competency - Interbrand rankings 2008 & 2009 Who knows you? Who wants you? Attitude - Functional realm High (perceived) quality
High transaction value
Country of origin
Creativity Attitude - Emotional realm - consumer benefits reflecting Louis Vuitton's ability to perform as promised - Elliott and Percy (2007)
"It's as much about people looking for new ways to define themselves as its about exclusivity" - Marketingweek (2009), p. 3 What are you perceived as? Source: Millward Brown (2009) Source: Interbrand (2008; 2009) Source: LVMH (2009) What have you gained? What are you worth? - the associations in memory linked to Louis Vuitton Knowing when to say "no" The ultimate paradox: sometimes the riskiest customers are the brand’s most zealous and noticed endorsers
While luxury products may feed desire, the mantra of luxury brand management is one of restraint
“Remaining the seducer, not the seduced”; Sell less to maintain exclusivity
Prime locations for brand distribution: 320 stores worldwide
Well-established global brand
History and heritage: 150 years
Recognisible brand name, logo and colour
Luxury fashion brand vs. mass fashion brands
Media: TV and cinema ads
Visibility Louis Vuitton has build up a strong brand equity in terms of brand awareness
However: limited awareness of other LV products Okonkowo (2007) Source: Tepperman (2010); Okonkowo (2007) Source: I.e., Tepperman (2010); Okonkowo (2007); Dubois (2005); Foukles (2009 Flashy
Waste of money
Symbol of arrogance
Luxury users are snobbish
Misplaced celebrity endorsement
Emulating the rich
The future of Louis Vuitton:
18 Laws of anti-marketing
‘‘Selling someone something they don’t really need is a skill that has a certain magical quality about it’’ - Strategic Direction (2005, p. 5) The menace of fake luxury goods Source: Interbrand (2008) Source: Okonknwo (2007) Juggessur et al. (2008) Source: MarketingWeek (2008; 2009) Pelsmacker et al. (2007) Stratetic Direction (2005) LVMH (2009) Guyon (2004) Okonkwo (2007) LVMH GROUP Wines & spirits Fashion & leather
goods Perfumes &
cosmetics Watches &
retailing Other activities 2,740 6,302 2,741 764 4,533 27 17,053 EUR million Louis Vuitton
Rossimoda Capital structure Luxury sector hit by economic crisis:
Rethinking spending priorities and values
Shift from: "What to buy?" to "Why buy?"
Cheaper alternatives: private labels and counterfeits
Postonement of expensive purchase
Luxury brands - a commodity?
Growth vs. overexposure
Challenges Opportunities Product-focus strategy to consumer focus strategy
New markets: Russia, India, China
Back to basics: the 'classics'
Fusion of luxury, travel and art
- Kapferer and Bastien (2008) Kapferer and Bastien(2009), In: MarketingWeek (2009) 1. Forget about “positioning”; luxury is not comparative.
2. Does your product have enough flaws?
3. Don’t pander to your customer’s wishes.
4. Keep non-enthusiasts out.
5. Don’t respond to rising demand.
6. Dominate the client.
7. Make it difficult for clients to buy.
8. Protect clients from non-clients.
9. The role of advertising is not to sell.
10. Communicate to those whom you are not targeting.
11. The presumed price should always seem higher than the actual price.
12. Luxury sets the price, price does not set luxury.
13. Raise your prices as time goes on in order to increase demand.
14. Keep raising the average price of the product range.
15. Do not sell.
15. Keep celebrities out of your advertising.
16. Cultivate closeness to the arts for initiates.
17. Cultivate closeness to the arts for initiates.
18. Don’t relocate your factories. Positive Negative Loyal customers are important assets Source: Newsweek (2009) "There are some journeys that turn into legends" Recommendations