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World's largest marketer of luxury products and brands

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Shannon Rodriguez

on 11 November 2013

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Transcript of World's largest marketer of luxury products and brands

Case 11-2: LVMH & Luxury Goods Marketing
Questions & Comments
The Economics of Exchange and Demand
In 2008, the Euro depreciated from 1:1.5 to 1:1.25 against the dollar. How will revenues be affected? With a 10% price cut?
E5,333 -> E6,400 -> E5,760

Louis Vuitton raised prices in 2008, and demand increased. What is Vuitton's demand curve? Why?
Marketing Strategies
LVMH switched to a strategy of diversification through the acquisition of over 60 brands
Decentralize the management
Take a cost cutting approach
Environmental scanning
World's largest marketer of luxury products and brands
An empire of more than 60 brands
Sales of $28 billion in 2010
"Selling dreams"
Introduction of LV television commercials to reach new customers
Risk making the brand "too accessible"
Multi-brand strategy- Sephora
Large portfolio lends more negotiating power
Strategic Decisions
-Businesses in Asian countries, focus on Japan

-Currency devaluations and weakening of yen

-Make adjustments

-Take advantage of crisis: renegotiate store leases
Opportunities & Challenges in Asia
How does Louis Vuitton's pricing compare with competitors, such as Coach?
Abstract idea vs physical idea
Brand focus vs consumer focus
Market catch-all vs price targeting
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