Impact of Digital Marketing on Louis Vuitton, Dior SE, and Channel Company

This paper analyzes the impact of digital marketing on luxury brands such as Louis Vuitton, Dior SE, and Channel Company. It includes an overview of the companies, their branding and positioning, pricing and distribution strategies, and a PESTLE analysis of the digital marketing environment. The paper also discusses the core, actual, and augmented products of each company.

Running head; impact of digital marketing 1
Impact of digital marketing
Student name ID
Student name ID
Student name ID
Subject name
Lecturer’s name
Assessment name

Impact of digital marketing 2
Introduction
Digital marketing includes all marketing effort that uses electronics and the internet to
market their products and services. (Choi, 2016) Due to the gradual growth of technology the
world has shifted into using technology to make work easier and efficient. Since 1990 and 2000
the development of the digital market has brought a huge change in the marketing sector.
Companies are using this platform to expand their business by increasing sales globally. (Costa,
2017) For the last two decade it was difficult to transact business within the global society due to
the lack of a platform that supports such an idea, but the t since the development of digital
marketing it has made global society to be able to transact business by people buying products
from the continent and selling to any continent at any given time. (Kannan, 2017) Digital
marketing platform has many methods that are incorporated ta ed in the organization this
includes; search engines optimization (SEO), content marketing, search engine marketing
(SEM), influencer marketing, content automation, campaign marketing, e-commerce marketing,
social media optimization, e-mail direct marketing, display advertising, e-book and lastly optical
disk. (Kelly, 2016) All this method are used to advertise product and services for various
companies. This paper will focus on the secondary industry which is involved in manufacturing
and offering sales service. (Liu, 2016) It will major into three companies this is Louis Vuitton
company which deals with fashion and luxury commodities, secondly, Dior SE company which
is European luxury company and lastly Channel company which is involved in events, media,
research, consulting, and sales and marketing services. The channel includes high-tech suppliers
and solution providers. (Qian, 2018)This three company earn their sales through digital
marketing where they offer free shipping if a customer purchases a product from any corner of
the world.

Impact of digital marketing 3
Companies overview
Louis Vuitton
Louis Vuitton is a worldwide company commonly referred to as LV; the company was
founded in 1854 by Louis Vuitton in French. (Anido Freire, 2018) It became popular due to their
quality luxury products the company sells. The company deals with luxury trunks and leather
goods to ran ready to wear, swatches, shoes, jewelry, accessories, sunglasses, and books.
(America, 2016) It is one of the first leading fashion house in the world which sells its product
through the following platforms this are standalone boutiques, via e-commerce where the
company attracts most of its customers, and lastly department store. The company has many
branches across the world to about 460 stores in 50 countries. Since last decade the company has
been doing great in its sales, this has made the company to rank as the world most valuable
luxury brand. (Steele V. , 2017) The company brands its product with LV label; the label make it
distinguish itself with its competitors. This label is worldly known.
Dior SE
Dior SE is a European company that is famously known as Dior. The company is
run by a French business person. The company was established in late 1948 by the eponym’s
designer. The company is famous across Europe and also other parts of the world. Is one of the
biggest competitors to LV company. The company deals with a variety of products by designing
and retailing the products. This includes; ready-to-wear, leather goods, fashion accessories,
footwear, jewelry, timepieces, fragrance, makeup, and skincare products. The company products

Impact of digital marketing 4
are sold worldwide an through the use of its portfolio of retail store worldwide and use of e-
commerce on its online retail shop. (Strauss, 2016) The company is doing well also since the
establishment of the online store. this makes the company meet with a variety of customer
worldwide hence increasing its sales. (Chernev, 2018) Apart from the online market, the
company organizes fashion concert to demonstrate its product. Picture and videos taken during
the concert are published into different social media. Through social me the dia people
worldwide are able to foresee the kind of products the company produces and if one is interested
he/she can purchase the product.
Channel company
Channel company is an American provider of IT channel, which is involved in events,
media, research, consulting, and sales and marketing service ices. (Chaffey, 2015) The channel
includes high-tech suppliers and solution providers. It was established by CMP media channel
group later renamed UMB. It’s a worldwide company which is known for its competence and
effective production. (Costa, 2017) The company is mostly involved in the marketing of other
company’s product. Through the company webpage, it is able to market itself. Through this
marketing, the company is able to gain more customers. (America, 2016)
Digital marketing environment
Pestle analysis is a very effective tool in business if used in the right way and manner.
Which falls under environmental analysis. (Chaffey, 2015) We employed this method to
determine various external environment variables that affect business performance and
prosperity. pestle analysis comprises of political, economic, social-culture, technological legal
and environmental. In our analysis we focused on the effect technology has on the three

Impact of digital marketing 5
companies, Louis Vuitton, Dior SE company and lastly channel company. (Choi, 2016) We
contacted the manager in charge of the marketing sector in all of the company to gather
information on the way the company conducts its digital marketing. The three companies have
utilized technology to the fullest marketing of their product digitally. The technology used in the
manufacturing industry has made life easier, this gives a great opportunity to the sector to market
an expands its sales. The industry is faced with a lot of opportunities. These opportunities
include the creation of job opportunities to workers who work in the industry; most people
consume finished product hence it creates an opportunity to companies who produce finished
goods which can be advertised using digital advertising. It’s easy to expand business under
secondary industry sector due to the wide market area covered. (Chernev, 2018) The industry is
also faced with threats such them as an economic threat, political threat, social-cultural threat,
technological threat, and lastly environmental threats. All these threats if not avoided may bring
great harm to the industry such a collapse of the secondary sector. WHO has a lot of concern
with the way the secondary sector is affecting the environment. Rules and regulation set by the
organization hinder the sector, from growing. (Cawsey, 2016)
Strategic analysis
Luis Vuitton
Louis Vuitton company has an approach of creating a highly customized customer experience
platform for targeting market through digital marketing company. (America, 2016)In targeting
market, the company uses geographic segmentation in targeting audience that is outside the
company region. This help to increase the market of the company globally. The company is
targeting to increase its market in Africa and establish some of its branches in different states of
Africa more so the fashion groups established in that area. The company is targeting to increase

Impact of digital marketing 6
the time working for the company especially on the website of the company, in order to serve a
wide range of market this is by increasing the demographic role of the company. The company
targets to use psychographic segmentation to increase its market. This by evaluating the
companies past customers and present one and coming with the aim of targeting a group that is
conscious with the budget, these groups are real shoppers, hence by use of digital marketing the
company can establish those groups. (Kannan, 2017) By use of behavioral segmentation, the
group will be able to determine their loyal customer, frequent one and purchasing pattern. Luis
Vuitton company through their sales record they will be able to determine their customer's,
pattern. Through this strategy, the company will be able to increase its sales and marketing.
Dior company
The company is focusing on increasing it sales by use of target marketing, this is by
targeting audience who are mostly involved in fashion and design this is by use of demographic
segmentation and also targeting states that has high population which creates a wide market for
the company this is by using geographical segmentation, Social life of people in the world helps
a company t determine which product to produce. (Costa, 2017) Hence through the use of
psychographic segmentation, the company is targeting to determine to produce products of
different qualities to serve all social groups
Channel company
In targeting market, the channel company uses geographic segmentation in targeting
audience that is within and outside the company region especially those from New York. This
help to increase the market of the company globally and also in the states. (Underhill, 2016) The

Impact of digital marketing 7
company is targeting to increase its market in Africa and establish some of its branches in
different states of Africa more so the fashion groups established in that area. (Belk, 2014) The
company is targeting to increase the time working for the company especially on the website of
the company, in order to serve a wide range of market this is by increasing the demographic role
of the company. (Stearns, 2018) To study the behavior of the company is important in
determining the customer's taste, fashion and preferences hence by use of behavioral segment the
company will be able to determine the products to produce and market for customers.
Buyers persona
Branding and positioning
Louis Vuitton company

Impact of digital marketing 8
The company has its unique branding and positioning which distinguishes it’s from other
competitor is that the company always retain its original style from French heritage and lifestyle.
Apart from this attributes the company brand strategy is based on the explore archetype which
revolves under traveling. (Reeves, 2015)The main company pillar is the sense of adventure; it's
more of a journey than the destination. The company brand focuses on the importance of
traveling and luxury involve in traveling rather than a destination. (Scott, 2016) This brand has
established a long-term image on the memory of the Louis Vuitton customers mind this
positioning makes the company unique and well known.
Dior company
Branding and positioning are crucial in marketing. Hence the company uses a unique
brand to distinguish it from other companies’ market, the brand position the company uses it's
unique and attractive in a manner that attracts customers. (VanderPloeg, 2018) The company has
Brands expressing the “goddess” image mostly made use of unreal and timeless backgrounds and
the advertisements which are rich in color, texture, and pattern. (Underhill, 2016) This makes the
company unique from others. This position helps in attracting customers. The brand is positioned
in their product at a strategic position. In their billboard, the company creates a picture that
shows a woman who is addicted to one of the company products such as perfumes and
necklaces. (Yoffie, 2015) This help in attracting customers
Channel company
The company uses large 3-D letters to brand its product. Because the company is
involved in IT and marketing products, the company uses slogans such as ‘THE CHANNEL
MEDIA COMPANY, CHANNEL BUILDING COMPANY.’ This is both on their online

Impact of digital marketing 9
website and their digital billboards. (Turban, 2016) The images are attractive with the diversity
of colors that makes one be attracted to the company’s products. This helps in retaining the
picture in customers’ mind and also attracting new markets. (Chernev, 2018)
products
Louis Vuitton Dior company Channel company
Core
The core product of the
company is producing of
luxurious leather bags which
worldwide known
Core
The core product of the
company is producing brand
clothes
Core
The company core product
is offering IT services
Actual
The company also produces
necklaces, bracelets, shoes,
and watches.
Actual
The company also produces
Jewelry, watches, glasses,
women makeup, and women
shoes
Actual
The company also is
involved in sales and
marketing services
Augmented
After purchasing the
Augmented
The company offers
Augmented
after offering service to the

Impact of digital marketing
10
product, the company offers
free delivery in every part of
the world
delivery of the product and
also guiding the user on how
to use the product efficiently
customer, the company offers
a warrant to the customers
and offers a free guideline on
how to use the company
website
1.1 Price
Louis Vuitton Dior company Company 3
The company pricing
strategy depends on the
production cost, tax
policy, expenses, and
profit to be yield. The
Louis Vuitton company
has no fixed price for
Dior products are for
high class and high
earning customers. With
the help of quality
assurance and exclusive
creation, the company
produces of high quality
Channel company
depends on company
sales. During the peak
period, the company
raises its prices, while
during the off-peak
period the company

Impact of digital marketing
11
their product due to the
above aspects change
according to the various
company.
hence making them very
expensive. They target
on middle and high
social level in quoting
their price
lowers its price. This
strategy helps the
company to survive in
both seasons.
1.2 Distribution
Louis Vuitton Dior company Channel company
The company sells and
distributes its product
through the following
platforms. This is standalone
boutiques, via e-commerce
where the company attracts
most of its customers, and
lastly department store. For
the overseas customer, the
company uses shipment and
through air transport
The company products are
sold and distributed
worldwide through the use
of its portfolio of retail store
worldwide and use of e-
commerce on its online
retail shop. The company
delivers products through
shipments and use of air
transport.
The company does its
distribution through online
means by use of their
webpage

Impact of digital marketing
12
digital marketing strategy
louis Vuitton company
louis Vuitton company uses Facebook, Instagram and website channels as a tool of
marketing strategy. The company uses the Facebook platform to market their products; the
company has created a Facebook page where the users of Facebook can be able to view the
products of the company and also the price of the product. This tool is effective because it is able
to reach many customers worldwide. (Belk, 2014) The disadvantage of this tool is whereby if
one is not on Facebook it’s hard to view the company’s products. Instagram a recent social
media platform where most of the companies are using in advertising their product. (Costa,
2017) Louis Vuitton company post attractive picture of the company’s products and fashion
concert that the company hosts. The method is effective because it helps in attracting the viewers
and persuading them to purchase the product, apart from the two social media product the
company also uses internet advertisement, especially into different search engines. This is
whereby the company uses popping advert on web pages. This advert is effective as they serve a
wide range of the market.
Paid
the company pays for every advert that pops on the search engines; this is by use of
promotion site from the main Facebook company, the cost depends on the duration of the advert.
earned

Impact of digital marketing
13
The platform is earned through an agreement with the social media company and the
Louis Vuitton company after signing the contract the company is allowed to advertise its
products. through this adverts, the company is able to expand its market.
Example
Dior company
The Dior company also uses Facebook, search engines and Instagram as a means of
advertisement. They post their products on the Facebook page (Costa, 2017). This enables
Facebook users to view the activities and products of the company hence increasing the market
area served. Search engines are effective tools when it comes to an advertisement by use of
search engine such as opera mini the company advertises its product. (Chernev, 2018) This
enables the users to view the advert while browsing. The Instagram platform is also vital when it
comes to the advertisement, most of the youth concentrate more on Instagram posts hence the
company uses the platform to post their products picture and videos demonstrating their product.
this strategy helps the company to cover a wide range of the market.
Paid

Impact of digital marketing
14
For an advert to take place in Instagram and Facebook the company needs to pay for
them depending on the duration of the popping advert, this takes place after the company has
agreed with the advertising company on their terms and payments.
Earned
to earn the platform, the company needs to contact the advertising company through
emails, then is given terms and condition of the advertising company after agreeing with the
advertising company the company is then given a platform to advertise their product.
Example
Channel company
The world is changing, and social media platform are taking roots. This helps the
channel; company to advertise its product by use of Facebook and Instagram platform. (Turban,
2016) This involves the posting of companies services and how efficient is the company. this

Impact of digital marketing
15
helps in reaching a wide range of market worldwide. (Kannan, 2017) The company also uses
search engines such as opera mini to advertise their product. Example when one is browsing
there popping advert on the web pages. this tool reaches a wide range of market though many
users dislike interruption by the popping adverts.
paid
the company pays for every advert that pops on the search engines; this is by use of promotion
site from the main Facebook company, the cost depends on the duration of the advert.
Earned
To earn the platform, the company needs to contact the advertising company through
emails, then is given terms and condition of the advertising company after agreeing with the
advertising company the company is then given a platform to advertise their product.
Example

Impact of digital marketing
16
Conclusion
We concluded that digital marketing is taking roots in the marketing sector as most of the
companies worldwide are using digital marketing to market their goods, the digital market is not
costly and is user-friendly. (Belk, 2014) On our analysis, we found out that most of the
companies have expanded due to the use of digital marketing because of its ability to offer a
wide range of marketing all over the world. (Chaffey, 2015) The sites that are used for marketing
are providing areas in websites where consumers can purchase the product and give feedback
about the products. The world is shifting to easy means of doing things especially in secondary
sectors in the industry it's shifting to technological means such as the use of digital marketing to
market their products.
Bibliography
America, L. V. (2016). America, L. V. N. (2016). Inc., 2015. Louis Vuitton FAQ [WWW
Document]. URL http://us. louisvuitton.
Anido Freire, N. &. (2018). When Advertising Highlights the Binomial Identity Values of Luxury
and CSR Principles: The Examples of Louis Vuitton and Hermès. Corporate Social
Responsibility and Environmental Management.
Belk, R. (2014). You are what you can access: Sharing and collaborative consumption online.
Journal of business research, 1595-1600.

Impact of digital marketing
17
Cawsey, T. &. (2016). Social media brand building strategies in B2B companies. Marketing
Intelligence & Planning.
Chaffey, D. (2015). Digital business and e-commerce management. Chaffey, D. (2015). Digital
business and e-commerce management. Pearson Education Limited.
Chernev, A. (2018). Strategic marketing management. Cerebellum Press.
Choi, J. &. (2016). A Study on the Design Changes and the Acceptance of Identity on Luxury
Brand Bags-Focusing on the Fashion Collections of Louis Vuitton, Gucci, and Chanel.
Costa, A. C. (2017). Luxury fashion clothes and accessories: the role of envy on the desire to
purchase.
Kannan, P. K. (2017). Digital marketing: A framework, review, and research agenda.
International Journal of Research in Marketing, 22-45.
Kelly, M. &. (2016). Adam Smith, watch prices, and the industrial revolution. The Quarterly
Journal of Economics, 1727-1752.
Liu, S. P. (2016). The standardization-localization dilemma of brand communications for luxury
fashion retailers' internationalization into China. Journal of Business Research, 357-364.
Qian, Z. W. (2018). Performance Evaluation of Digital Marketing in Health Care Industry with
the Application of Data Envelopment Analysis.retrieved from ceeol.com
Reeves, P. &. (2015). . The current status and impact of 3D printing within the industrial sector.
retrieved from eprints.bournemouth.ac.uk
Scott, I. &. (2016). Redefining and Regulating the New Sharing Economy. U. Pa. J. Bus. L.

Impact of digital marketing
18
Stearns, P. N. (2018). The industrial revolution in world history. Routledge.
Steele, V. (2017). Louis Vuitton: A Passion for Creation: New Art, Fashion, and Architecture.
Rizzoli Publications.
Steele, V. (2017). Paris fashion: a cultural history. Bloomsbury Publishing.
Strauss, J. &. (2016). E-marketing: Instructor's Review Copy. Routledge.
Turban, E. S. (2016). innovative Social Commerce Applications: From Social Government to
Entertainment and Gaming. In Social Commerce. Springer, Cham.
Underhill, G. (2016). Industrial crisis and the open economy: politics, global trade and the
textile industry in the advanced economies. Springer.
VanderPloeg, A. J. (2018). The role of the creative director in sustaining the luxury brand.
Fashion, Style & Popular Culture.retrieved from ingentaconnec.com
Yoffie, D. B. (2015). Strategy Rules: Five Timeless Lessons from Bill Gates, Andy Grove, and
Steve Jobs. HarperBusiness. retrieved from www.hbs.edu

Impact of digital marketing
19