A Critical Analysis of Relationship between Brand Identity and Customer Retention

A Critical Analysis of Relationship
between Brand Identity and Customer
Retention
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A Case Study of Louis Vuitton’s
Customer Retention Strategy
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EXECUTIVE SUMMARY
From this report, the Researcher will provide a brief understanding about the strategies which
will help the company in maintaining relationship in between the brand identity as well as
customer retention level. This research explored the relationship between brand identity and
customer retention. By adopting the best plan and policies, Louis Vuitton will be able to capture
large market share in the world thereby making huge profits. In the present report data will be
collected by using the primary and secondary source as well. There will be different tools and
methodologies used for collection of data and also analysis such as research philosophy, data
collection, data techniques and others. The questionnaire will be developed for collection of data
regarding the specific subject area.
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Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
CHAPTER 1: INTRODUCTION..............................................................................................................4
Overview of Research..........................................................................................................................4
Research Aim........................................................................................................................................5
Research Objectives............................................................................................................................5
Research Questions.............................................................................................................................5
Rationale of Research..........................................................................................................................5
Research Structure...............................................................................................................................7
Research Significance.........................................................................................................................7
CHAPTER 2: LITERATURE REVIEW...................................................................................................9
Strategies adopted by Louis Vuitton for making relationship in between brand identity and
customer relationship...........................................................................................................................9
Core aspects related to the concepts of Brand Identity and its relationship with retention of
customer..............................................................................................................................................10
Challenges being faced by Louis Vuitton in maintaining relationship between retention of
customer and brand identity..............................................................................................................11
Recommendation to Louis Vuitton for gaining competitive advantages in the market place with
high customer base............................................................................................................................13
CHAPTER 3 - RESEARCH METHODOLOGY...................................................................................15
Research Source................................................................................................................................15
Definition..............................................................................................................................................15
Research Theories.............................................................................................................................15
Research methodology......................................................................................................................16
Ethical Consideration.........................................................................................................................17
Research Limitations..........................................................................................................................18
CHAPTER 4: DATA PRESENTATION AND ANALYSIS..................................................................20
CHAPTER 5 : CONCLUSION AND RECOMMENDATIONS............................................................32
Conclusion...........................................................................................................................................32
Recommendations..............................................................................................................................33
REFERENCES........................................................................................................................................36
APPENDIX...............................................................................................................................................40
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CHAPTER 1: INTRODUCTION
Overview of Research
Brand identity provides the company with instant recognizable power among its
customer base in the market place. With the help of brand, a customer can meet its
needs by consuming it accordingly. Brand identity refers to visible components of the
brand for an instance design, logo, color which determine and differentiate brand in
mind of customers. Brand identity helps company with immediately identifiable strength
at the market place among its customer base. By developing a strong brand image, it
helps company in making a distinct identity in the market which aids to its success and
growth in the near future. With the help of strong brand identity, it helps targeted
audience in differentiate from a competitor who influences purchasing decision and thus
directly impact profitability level (Ko and et.al., 2019). It results in building of customer
retention level and loyalty base as well. Brand identity helps customer in easy
identification of products and thus build customer loyalty base.A consumer can satisfy
needs by consuming this accordingly with the aid of the brand. The strong brand identity
helps in enhance the reputation and image of company. It helps in attract the large
number of customers towards company and sustain them for long period of time. The
customer retention is ability of an organization to sustain its consumers over time
period. It measures how many consumers an organization keeps at end of decided
period of time and number affected through new consumers acquired. In order to retain
the consumers, company makes its brand identity strong so that it can attract those
(Mihas, 2019). Louis Vuitton is French fashion house and the luxury retail organization
founded in year 1854 through Louis Vuitton. Labels of this company appear on many of
its products such as watches, sunglasses, books, jewelry and some other leather
products. Brand of Louis Vuitton concerns quality, innovation, authenticity, concerns
and reliability (Mahmoud, Hinson and Adika, 2018). The symbol of this company defined
sharply brand identity through mining organization history and also design for express
that.
Brief description of Louis Vuitton
Louis Vuitton is a French fashion house dealing in luxury retail business. Its products
include luxury trunks, leather goods like shoes, watches, jewelry, accessories,
sunglasses and books etc. This company was founded in year 1854 by the Louis
Vuitton. It operated in around 50 countries with more than the 460 stores in all over the
world. In Louis Vuitton, there are around 121,289 staff members working. This
organization has secured generous market share in limited market in it operated. Its
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services are for the niche market of the high end consumers. The revenue of this
company was €53.7 billion.
Research Aim
To evaluate relationship between brand identity and customer retention: A Case
study of Louis Vuitton.
Research Objectives
 To examine strategies adopted by Louis Vuitton for making relationship in
between brand identity and customer relationship.
 To understand core aspects related to the concepts of Brand Identity and its
relationship with retention of customer.
 To identify challenges being faced by Louis Vuitton in maintaining relationship
between retention of customer and brand identity.
 To provide recommendation to Louis Vuitton for gaining competitive advantages
in the market place with high customer base.
Research Questions
 Which strategies as adopted by Louis Vuitton will make relationship in between
brand identity and customer relationship better?
 What are the core aspects of Brand Identity and how it affects relationship with
retention of customer?
 What are the challenges being faced by Louis Vuitton in maintaining relationship
between retention of customer and brand identity?
 Any recommendation to Louis Vuitton for gaining competitive advantages in the
market place with high customer base?
Rationale of Research
It is very important part of the research because it helps readers to evaluate the reasons
due to which researcher has conducted the study. Further, it justifies the significance of
the study. The reason of conducting study on analyzing the relationship between
customer retention and brand identity is that, it is the current buzzing topic in this
business world (Abeysekera and Dawson, 2015).
Industry Rationale- As Louis Vuitton company deals in the fashion industry and it has
large number of the competitors such as Fendi, Coach, Michael Kors, Prada and Gucci.
The research provides understanding that, a strong brand name of the business helps
to create positive image in the mind of clients. It helps to retain loyal customers in the
company for a long period. Another reason of choosing this topic is that, researcher has
personal interest to gain understanding of the strategies that help business to
understand the relationship between customer retention and brand identity. Louis
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Vuitton is one of the leading luxury product group, revenue of €53.7 billion and 15%
organic revenue growth was 10%.
Figure 1: Louis Vuitton is the World's Most Valuable Brand
(Source: Louis Vuitton is the World's Most Valuable Brand)
Personal Rationale- The Researcher wants to enhance the knowledge in respect of
the chosen topic. The researcher performs the study on identifying the barriers or
challenges that are faced by the organization for maintaining an effective relationship
between brand identities and retaining loyal customers in the business. Another major
reason behind performing the study is to gain an understanding of the concepts related
with brand identity that is design, logo etc. and its relationship with customer retention in
the business. One of the major purposes behind performing research on this topic is to
provide recommendations and steps that will help company to secure competitive
advantage against competitors by developing large customer base. The rationale of
research helps in provides the reason behind conducting an investigation. Present
report is taken into consideration on the evaluate relationship in between brand identity
and customer retention (Li and et. al., 2018). From performing the present investigation,
learner can able to get the knowledge regarding brand identity and also customer
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