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Louis Vuitton

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by

Gabrielle Lee

on 28 March 2014

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Transcript of Louis Vuitton

Louis Vuitton
SWOT Analysis of LV
External Factors - PESTLE
Heritage as a trunk maker
From trunks to customised boxes for Parisian
Promotion and Louis Vuttion
Promotional Mix
Advertising
Public relations

Personal selling
Direct marketing

Sales promotion

The Louis Vuitton Cup
Partnerships with NGO
-SOS Children's Villages : "Partnership for Children's Futures."
-Maddox Jolie-Pitt Foundation
- The White Ribbon Alliance
Fashion show 2012, Paris
Fashion show 2007, Paris
Communicate straight to the customer
e.g.
mobile messaging
email
online display ads
catalog distribution
promotional letters
outdoor advertising
A process of helping and persuading one or more prospects to purchase a good or service
Strengths
Weaknesses
Opportunities
Threats
SWOT
Internal Factors
External Factors...
1. Rich history and culture
2. Superior Craftsmanship
3. Largest luxury brand with exclusivity
4. Strong presence in leading commercial hubs
1. Limited Customers
2. Increased in debt burden base
1. New image revamps
2. Continuous innovation and support
3. Growing market for luxury goods in Asia pacific countries
1. Proliferation of counterfeiting poses the biggest challenge
2. Rising advocacy against the use of animal skin
3. Intense competition
How it all began?
Brand value declined 12% from a year ago to $22.7 billion
Sales growth slowed to 4% for the first nine months of 2013 over the same period in 2012.
Competitors like Cartier, Burberry and Gucci have all seen their shares jump by more than 20%
P
olitical
E
conomic
S
ocial
T
echnology
L
egal
E
nvironment
“A new study from management consultant firm A.T. Kearney found that online sales of beauty and personal care products are in the region of $3 billion, representing about 5% of the online shopping category.”
-This means that Louis Vuitton
need to advertise more online.
-e.g. Facebook, Instagram, Twitter etc. due to growing online market
Source MINTEL –HAPPI Magazine

-The emerging market in Asia where the middle class is growing
-Chance for luxury brands to promote their product to new market segment

-market share in the newer
market in China, Russia Brazil and the Middle East.
Image From BBC-http://www.bbc.co.uk/news/business-22564297


-some people who are creating counterfeit goods of LV brand are
spreading bad publicity for LV

-Some consumers may misunderstand the quality between the real LV goods and the counterfeits.

Source MINTEL

3.design, the signatory monogram (Accessible luxury)
4. The changing tastes
Russia:
Louis Vuitton had made a big suitcase like building in Moscow where it was later removed.

China:
Falling demand for luxury goods due to slowing Chinese growth and
a crackdown on corruption
Source BBC- http://www.bbc.co.uk/news/world-europe-25127430

-The brand is getting old
-The perception of the brand image
-Changing in fashion tastes
Environmental hazards
-People for the Ethical Treatment of Animals PETA)
-Leather industry requires: huge amounts of feed, pastureland, water, and fossil fuels.
-Animal factory farms
produce 130 times as much waste as the entire human population
(PETA)
References
-LVMH is losing 1.4 million each year from this battle with counterfeits
Group Members
Derrick Badu (700959)
Gabrielle Tze Yan Lee (713237)
Malick Yacine Doumbia (689368)
Man Rana (697777)
Muaid Alellaghi (712408)
Bloomberg. 2013. The Economic Times. [ONLINE] Available at: http://economictimes.indiatimes.com/news/international-business/louis-vuitton-loses-ground-as-most-valuable-luxury-brand/articleshow/20187315.cms?intenttarget=no. [Accessed 20 November 13].
New York Times. 2013. Louis Vuitton Ad Shows Gorbachev Accompanied by Subversive Text. [ONLINE] Available at: http://www.nytimes.com/2007/11/05/business/media/05vuitton.html?_r=1&. [Accessed 20 November 13].
Deidre Woollard . 2013. Louis Vuitton Partners With Children's Charity. [ONLINE] Available at: http://www.luxist.com/2010/05/05/louis-vuitton-partners-with-childrens-charity/. [Accessed 26 November 13].
Ecorazzi. 2013. Angelina Jolie’s Louis Vuitton Ad Benefits Charity. [ONLINE] Available at: http://www.ecorazzi.com/2011/06/14/angelina-jolies-louis-vuitton-ad-benefits-charity/. [Accessed 28 November 13].
The Guardian . 2013. Louis Vuitton and Dior parent company sees sales growth lower than forecast. [ONLINE] Available at: http://www.theguardian.com/business/2013/oct/16/louis-vuitton-dior-sales-growth-lower-lvmh. [Accessed 01 December 13].
BBC. 2013. Huge suitcase in Moscow's Red Square sparks row. [ONLINE] Available at: http://www.bbc.co.uk/news/world-europe-25127430. [Accessed 01 December 13].
BBC. 2013. All dressed up: Luxury labels head to South East Asia. [ONLINE] Available at: http://www.bbc.co.uk/news/business-22564297. [Accessed 01 December 13].
Kenzie Bryant. 2013. Is Louis Vuitton Slipping From Its Number One Luxury Brand Spot?. [ONLINE] Available at: http://racked.com/archives/2013/05/21/is-louis-vuitton-slipping-from-its-number-one-luxury-brand-spot.php. [Accessed 01 December 13].
Roberto A. Ferdman. 2013. The classic Louis Vuitton logo may be killing the company’s handbag sales. [ONLINE] Available at: http://qz.com/135639/the-classic-louis-vuitton-logo-may-be-killing-the-companys-handbag-sales/. [Accessed 01 December 13].
Helen Ramirez. 2013. Louis Vuitton: Environmental Hazard?. [ONLINE] Available at: http://savetherainforest.com/louis-vuitton-environmental-hazard/. [Accessed 01 December 13].
Full transcript