Marketing Analysis

This report analyzes the marketing mix of Louis Vuitton in Australia, focusing on the 4Ps of Product, Place, Price, and Promotion. It discusses the brand's unique selling points, distribution strategy, pricing policy, and advertising campaigns.

Running head: MARKETING ANALYSIS
Marketing Analysis
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MARKETING ANALYSIS
Marketing Mix
The marketing mix is considered to be an essential foundation in marketing. They are
stated to be a set of tools which can be used by any organization in order to achieve the
different objectives which are set out by the business at large. The marketing mix is primarily
concerned with the four major aspects related to the decisions regarding Product, Place, Price
and Promotion. The given report will be discussing the 4Ps of Louis Vuitton with special
focus in Australia. Louis Vuitton is a luxurious brand selling uniquely designed products in
selected countries. The brand is largely popular around the world for its quality and
exclusivity.
Product
The product is considered to be the tangible good which is sold by an organization to
a designated target market. The Louis Vuitton is a brand which deals with luxury fashion
items. Originally established in the year 1850, the brand has elevated its name in the industry
by creating a blend of craftsmanship which is handmade as well as mechanized. The focus of
the product has always been on maintaining the quality which can be essentially described as
their Unique Selling Point. In Australia, the company is located in the Sydney George Street
whereby the concept of the store is new as well as dynamic (Anido , Naïade, and Loussaïef
2018). The primary features of the product are that it is customized, the material is made of
100% pure leather and that each bag takes around days to be manufactured which makes
every bag rare in nature. Another remarkable feature of the product is that it is never given on
sale which maintains its value throughout the lifetime. The benefits of the product can be
stated to be the luxurious feel and status it holds and adds to the class of the consumer.

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MARKETING ANALYSIS
The main competitors of the products in Australia are the other global brands like
Hermes, Chanel, Gucci, Givenchy and Vertu. Louis Vuitton is aware of the competition
which prevails in the industry in Australia and with respect to this it has always ensured that
it provides the best products and concentrated on designs which are created intricately and
reflect personalized artisanship which is perceived as exquisite as well as traditional by the
different consumers (Louisvuitton.com 2018). It is difficult to imitate a Louis Vuitton
product because of its unique design and quality. The appeal of the products of Louis Vuitton
to the target market as compared to the different competitors are its unique design,
customized services, unique channel of distribution and the fact that it mains it luxurious
image by never offering the product on sale which reflects that the product is a class apart.
The products are made from 100% leather. The company is primarily famous for its
ready to wear clothing line which is designed with utmost care, its watches and handbags
along with travel luggage. According to Steele (2017), moreover, taking opportunity of the
increased interest of the products in Australia, the buyers can even purchase glittering jewelry
and designer shoes.
Along with this, there are a large range of eyeglasses, scarves, belts, briefcases,
wallets and other accessories available which prove to be a huge attraction for the elite in
Australia (Alexander 2018). With respect to innovation, the company has hired new and
talented designers so as to ensure that there exists a sense of creativity in the designs which
will then go a long way in ensuring success for the company in the long run. In this manner,
apart from the usual pattern, a more colorful pattern has been approached by the company.

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MARKETING ANALYSIS
Figure 1: The new designs of LV Bags
(Source: Louisvuitton.com 2018)
Figure 2: The original LV Bags and their patent designs with patterns

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MARKETING ANALYSIS
(Source: Louisvuitton.com 2018)
` The company hires fine craftsmen to ensure that the quality of the products is up to
the mark and that the product design as well as pattern is completely unique. The company
has registered all its designs in Australia to avoid counterfeited products and imitation. The
unique dresses, finest bags and watches are one of the highest selling products in Australia. A
good aspect to note is that as the luxury retail market has been doing considerably well in
Australia, the different luxury brands like Louis Vuitton will be impacted considerably and is
predicted to grow to a great extent.
Figure 3: The growth of luxury markets in Australia
(Source: Ibisworld.com 2018)
Place (Distribution)
The place aspect of the marketing mix is essentially concerned with the distribution
strategy of an organization which seeks to understanding the manner in which the goods are

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MARKETING ANALYSIS
sold to the general public and what medium is essentially made use of. The Louis Vuitton
makes use of an exclusive distribution channel (Kotabe and Helsen 2014). It needs to be
observed that in Australia, the products of Louis Vuitton are not sold in any departmental
store like Woolworths or Coles.
The company is a firm believer in the fact that all organizations must essentially have
their own stores and maintain a direct connection with the different consumers. According to
Weinstein, and Pohlman (2015), the Louis Vuitton store is present in the George Street in
Australia and has an aristocratic and unique appearance. In order to ensure that the different
stores are able to make direct contact with the customers, they tend to engage in highly
trained employees who know that the consumers in Australia are required to be dealt with
utmost care.
The different customers are provided with utmost attention and personalized warmth.
However, Louis Vuitton believes in creating a sustained demand and a premium appearance
and this is the reason, the brand has a limited number of stores in Australia and even in other
parts of the globe (Ibisworld.com 2018). This can also be taken to be a smart strategy
whereby the company saves cost because there does not exist a presence of the various
middlemen and the distribution channel is considerably shorter. The concept of online
shopping is not yet available in Australia. The company has a total of 11 stores in Australia
which is considerably low but even then, the company is largely popular.
The primary theory behind the limited distribution of Louis Vuitton is that its
products are largely exclusive and thus sold with a similar mindset so that the different
customers are exposed to its exclusive accessibility (Goworek, McGoldrick and Peter 2015).
Each consumer is thereby required to visit the personalized stores to produce each product
and the channels are limited.

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MARKETING ANALYSIS
According to them, it must be their primary objective to create a warm and pleasant
store environment for their customers which shall reduce costs and increase the profits as
compared to the other brands. This has led to a considerable increase in the customer
relationships and improved the satisfaction of the customers. Another aspect which can be
noted is that Louis Vuitton tends to locate its stores at high profile locations which are located
in posh areas which reflects its exclusivity and luxurious outlook. In the future, Louis
Vuitton plans to expand its e-commerce base in Australia so as to ensure a wider coverage.
Price
Louis Vuitton has tried in making few handsome investments which has helped them
in maintaining the rich type of quality of the different products. The fashionable kind of
designs of the different products which are prepared by Louis Vuitton has assisted the
organization in maintaining the premium and valued based type of pricing policy in the entire
Australian market (Agarwal and Bansal 2018).
The different target customers of Australian market try to perceive the different Louis
Vuitton products as high quality in nature and the Australian customers are willing to pay the
required amount for the products which are being sold by them. The integrity strategy of
pricing has been employed by Louis Vuitton throughout the entire distribution network. The
company do not believe in reducing the prices of the different products which are being sold
by them and there are no such type of sale periods or discounted pricing strategies as well
(Mare 2015).

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MARKETING ANALYSIS
Figure 4: Social Media Platforms
(Source: Phan and Anh Vu 2015)
The main target customers in the entire Australian market are the upper middle-class
individuals which is a niche kind of marketing technique. They are targeted as they are the
ones who have the capability to buy such products at the actual price without performing any
kind of bargaining in the Louis Vuitton showroom. The respective group of customers prefer
the value-based pricing strategy of the company as they are satisfied with the different kinds
of products which are being sold by them and this will help in managing the different kinds
of prices which is applicable for the product (Phan and Anh Vu 2015).
The cost price of the products which are being sold by the Louis Vuitton company is
actually higher in nature as the uniqueness of the products attracts the different customers in
the market. The quality of the different products such as shoes, apparels, watches and the
eyeglasses are designer and this simply results in the premium kind of pricing. The products
which are being sold by Louis Vuitton are style statement and the customers do not feel
hesitated in paying the exorbitant prices for the different products.

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MARKETING ANALYSIS
Figure 5: Positioning Map of Louis Vuitton
(Source: Parment, Kotler and Armstrong 2016)
The professed pricing of the products of the Louis Vuitton are high in nature and in
this case, the different customers feel that they are receiving value for the different products
which are being sold by the company. The high and premium based pricing of the Louis
Vuitton products are apt for the different customers and this will be beneficial for the growth
of the company in the entire competitive market (Parment, Kotler and Armstrong 2016).
For instance- This can be noticed from the different websites that the price of the
handbags of Louis Vuitton is $ 2,571.10 and this is the costliest brand in comparison to Gucci
in the entire Australian market. From the overall instance, this can be concluded that Louis
Vuitton sells the costliest brands of the different products in the Australian market in
comparison to the other brands which is the plus point and advantageous for them.

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MARKETING ANALYSIS
Promotion
Louis Vuitton has tried in employing the different kinds of famous musician, models
along with the different actors in the different marketing campaigns which are being
conducted by them. The different kinds of famous personalities who are associated with the
marketing campaigns of the Louis Vuitton include the Jennifer Lopez, Kate Moss along with
the different other musicians (Hanssens et al. 2014). Since the company is a luxury brand, the
celebrities try to create better kind of emotional connection and this is beneficial for the
success of the firm in an efficient manner.
The promotion plays a major role in the marketing mix of the different companies and
the different competitors of Louis Vuitton such as Gucci are much more focused on the
advertising on the different fashion magazines along with the usage of the social media
websites. The sophisticated fashion magazines are the main promotion media that helps the
segmentation to become clearer and this assist them in promoting the same in the entire
worldwide (Khan 2014).
The advertising style of Louis Vuitton is noble in nature in comparison to Gucci and
this has attracted the different upper middle-class individuals in the entire Australian market.
The different brand ambassadors of Louis Vuitton are inclusive of Uma Thurman and Scarlett
Johansson are associated with the respective brand and the high-profile kind of campaigns of
advertisements are being used by the respective brand. The respective brand has also
involved themselves in sponsoring the different mega sporting kind of events in Australian
market such as motorsports along with Yachting as well (Ahmed and Rahman 2015).
Moreover, these are the various events are attended the leading and premium kind of
customers in the entire Australian market. The respective organization tries to make a proper
link with the different customers who are the target audiences in the market. The

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MARKETING ANALYSIS
advertisement is the major tool which is being used by Louis Vuitton in the market of
Australia which helps them in creating proper awareness about the different products which
are being sold by them and the advertisements are fashionable yet individual in nature
(Astuti, et al. 2015).
Furthermore, this has been noticed that the respective kind of organization do not use
the advertisement through the television. However, the company tries to implement the
different fashionable magazines as their advertising tool which helps them in creating
awareness about the different new invention about the different products which are sold by
them (Baker 2016). The demographic type of strategy has tried in creating different waves in
the advertisement industry and this has assisted trying to make the different goods throughout
Australia. The different types of advertisements try to rotate the different celebrities and this
helps in making emotional connection with the different customers and this makes the overall
promotional strategy of Louis Vuitton more effective in nature.
Therefore, from the entire marketing mix, this can be analysed and identified that the
marketing mix helps in determining the strategy of marketing which is right for the Louis
Vuitton organization in the overall Australian market. This is the first and foremost step in
the analysis of the marketing plan which is successful for managing the overall productivity
in an efficient manner.

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MARKETING ANALYSIS
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