Multi-Channel Marketing: A Strategy for Louis Vuitton

This article discusses the multi-channel marketing strategy of Louis Vuitton, a luxury retail company. It explores the brick and mortar and e-commerce channels used by the company, along with its major competitors. The article provides insights into the design, pricing, personnel role, decision-making, delivery options, and payment methods of these channels. It also highlights the company's focus on providing a seamless and unified experience to its customers.

Running Head: MULTI-CHANNEL MARKETING 0
2019
student name
4/18/2019
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Contents
Introduction......................................................................................................................................2
Company information......................................................................................................................3
The multi-channel strategy of Louis Vuitton...................................................................................3
Brick and motor channel..............................................................................................................6
E-commerce channel...................................................................................................................7
Major competitors............................................................................................................................8
Recommendations............................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
Marketing is a very wide aspect and marketing decisions are responsible for effectively reaching
to the customer to offer goods and for marketing communication. One of the relevant decision is
selecting a marketing channel for the products of a company. A marketing channel is
organizations, people, and activities essential to transfer the ownership of the goods from
production to point of consumption. This is the method through which products are reached to
the consumers that are the end users and are said to be a distribution channel. (Wilson et al.,
2008). For providing customers seamless and unified experience and for them to interact with the
organization, integrated marketing is been conducted. This includes integrating various
marketing communication channel like sales promotion, advertising, direct marketing, public
relations, and social media marketing. In today’s world, targeting the customers or reaching out
customer through a single channel is very difficult. Companies required various marketing
channel work together towards the same objective of the company to reach out customers
through variant ways. The report will include a multi-channel strategy of a retailing company
that is Louis Vuitton.

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Company information
Louis Vuitton is a luxury retail company and French fashion house founded in 1854. It is
commonly called LV offering products from the luxury range and leather products to ready to
use, jewellery, watches, shoes, sunglasses, accessories, and books. It is one of the leading global
fashions houses in the world. The company has more than 460 stores across the globe and is
dealing in 50 nations.
From the products that are manufactured by this brand includes luxury products, which reflect
that the company adopted the premium pricing strategy. The company major focus includes the
quality of the products and prefers to offer customers with the best quality and recent designs.
Since the 19th century, the company was making products by hand. It has been found that the
artisan lined up canvas and leather while tapping into tiny nails one after another and conserving
the five letter pickproof locks of brass with each handmade key. Some of the iconic bags of the
brand include never fill bags and speedy bag. The brand produces rare products every season
with limited bag edition, which are usually available by reserving through LV large stores.
Through this, it can be assessed that the target customer segment considering the customer
income factor includes an upper class with high-income group customers. The company have
done various marketing campaigns and usually used billboards and magazines in cosmopolitan
cities. Moreover, the company had collaborated with some of the popular designers and artists.
For instance in 2017 the company collaborated it Jeff Koons (artist) for two-major collection
launch in order to have interaction of art and fashion. Another Collaboration was with
“American street wear brand” and launch that product in some of the pop up stores in all the
major cities across the world.

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The multi-channel strategy of Louis Vuitton
The distribution of goods is a major decision to be taken by the company, and the channels are
designed for sales maximization of goods and services when the market is entered. This strategy
affects the company’s sale and the way to reach out to the customer. Louis Vuitton sells its
products and services through retail and internet models and multichannel retailing. The
company is one of the leading luxury brand based majorly on the resource-based view. This
framework is a competitive advantage for the company as the resource and design of the
products that are rare, valuable and imitable (Brown & Dant, 2014). Moreover, the intellectual
property right of the company is very strong across the globe that makes the product design rarer
and imperfectly imitable. The quality is the unique selling proposition of the company with the
latest design in the fashion industry (Ailawadi & Faarris, 2017).
The channels used by Louis Vuitton are a brick and motor retailing channel, which includes
standalone boutique, high-end departmental store, and online channel that is trading goods
through e-commerce (Chou et al., 2017). This would include selling goods online through the
website, mobile application, and social media platforms. The company has been able to enhance
its brand presence across the globe through various marketing channels like print advertisements
for instance billboards in major cities, television advertisement with most popular and famous
actor and actress that will reflect the high status and luxury products. Moreover, the campaigns
run by the company are through the list of celebrity ambassadors. For example, the company
core value campaign with Ali Henson and rock star Bono. In today’s scenario, one of the major
reasons for the good brand presence of the company is the social media platforms that have been
used by the company to create brand awareness across the world while streaming fashion shows

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videos. The brand has always been able to conduct mass communication with very clear and
concise message to their target customer segment (Ennis, 2016).
Brick and motor channel – this channel include high-end departmental stores that the company
has more than 460 across the globe. The company focus over the products and service provided
to the customer as the experience they while shopping through stores and exclusive collections
there in. The company provide luxury shopping experience at the store with the most convenient
and use friendly design of the store (Feenstra et al., 2014). The experience of the customers
through shopping through stores have been recorded by the company and used by the company
for marketing strategy. For example, the company on YouTube channels shares some of the
experiences. The brand provides “immersive shopping experience” this would include one on
one appointment with the customers with their top clients. Louis Vuitton has provided the best
décor, furniture, hard-sided trunks and use of exotic leathers for their perusal (Pantano et al.,
2016). According to the brand considering the retail culture of one upmanship has not found to
be enough for now that is the product orientation is not more than enough to attract the customer
as the target customer are rich and already using best products. The way that the brand identified
and implemented to seduce the customer is through the form of direct to the customer that is
making them feel like a family to the brand and has spent a lot of money for the same. LV has
managed to capture the exclusivity and status in a subtle whisper (Weggeman et al., 2017).
The standalone boutique is part brick and motor channel for distribution of goods. These are not
large in numbers as there department stores but provide an exclusive experience for the
customers. For instance, one of its popular watch and jewellery boutiques in Paris, this boutique
included new Peter Marino designs of jewellery and watches (Gonzalez-Padron, 2017). The
customers can experience the latest collection pieces and some of the designs that are made

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specifically for that boutique. This has been considered for a premier stop for watches and
jewellery across the world with attractive names like Van Cleef, Cartier, Chaumet. The brand has
also reviewed original artisan workshops. The Louis Vuitton Place Vendôme boutique was the
brand’s initial watches and jewellery exclusive boutique that would provide luxury accessory
experience for the customer (livingstone & Jones, 2018).
Figure 1: (Source: (wallpaper, 2019)
Other popular boutiques of the company include Kowloon’s luxury boutique exclusively for bags
that have recently renovated. The boutique has a three-floor redesign with an interior makeover
and new façade. Moreover, the canton road store has been popular for the special edition of LV
items that are unique and considered the Chinese tea culture for celebration. The speciality of the
boutique over the stores are the private shopping experience available at the canton road store
that are holding hosts VIC’s in a private room. The room is full of digital colour print and the

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customer can enjoy the special attention by the staff and enjoy the silence (townandcountrymag,
2019).
Figure 2: (Source: (wallpaper, 2019)
Online stores – This is the most successful channel when it comes to international marketing.
The company has been able to reach out to the customers in more than 50 nations, but the store is
not possible to open up in every city of every nation. The company is able to reach to the
customer through online mode. The company has its official international website delivering in
different nations. The customers can purchase goods through online and get the product at their
place. The website is designed user friendly, where the new collections are updated time-to-time
(louisvuitton, 2019).

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The analysis of these channels can be conducted through various factors like design, price,
purchase process, personnel role, decision-making, delivery options, and payment methods.
Brick and motor channel
 Design – design is the key for the brand to provide the luxury experience to the
customers. The designing of the store initiated with the exterior of the store that includes
a highly luxurious and very attractive exterior. It attracts and invites customers to the
store visits, which will reflect the attractive LV logo. Another aspect involved with
designing included window displaying which is done through expensive crystals and
includes the new collection in the display highlighting with lights. The storefront has very
cleaned display of products with a limited number of props that are similar to store
exterior flooring, lighting, ceilings, and graphics of the store are found to be classic and
attract high end users to the store (townandcountrymag, 2019).
 Price – The prices of the products are same in all both the channel, however the exclusive
products by the brand for specific boutique or store only could have different than that of
online store (Prigge et al., 2017).
 Personnel role – The staff plays a major role in making the experience of the customer to
another level. The company prefers to provide best service sin the store to make the
customers feel like family to the brand and have the best and convenient store experience.
Considering the personnel flow chart in case of stores is country manager – operating
manager (national) – retail store manager (sageandsimple, 2019).
 Decision-making – The personnel helping the customer understand the customer’s
preference and expectations and display the products according to their relevance. This
can also include previous purchase detail. For instance in the boutique the personal space

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is also provided where the personal assistance is provided and the exclusive products are
offered to the customer and the customer makes their decision in silence and peacefully.
 Delivery options – Personal pickup option is available in case of brick and motor stores.
However, there would be various delivery options by the company for online channel.
 Payment methods – The Company is the technically advanced company and since the
company is trading goods internationally, it provides various payment options. These
payment options include Cash, Debit card, credit card, and Pay Pal. Various credit cards
are provided like Visa, MasterCard, and American. The company claims to have safe
transactions through cards and protect its clients personal and payment information
(uk.louisvuitton, 2019).
E-commerce channel
 Design – Considering the design of the online store, the company provide a new launch.
Information regarding the products is clearly available on the website of LV. Moreover
the options for men, women are available to check to see the relevant products
(Armstrong & Giardina, 2016)
 Price – Same as a physical store (Adam & Kotler, 2014)
 Personnel role – In the case of online shopping the delivery executives play a role or in
case of collect in store, the store personnel provides goods as per the customer order.
 Decision-making – The customer can see the goods online as per their preference add to
the shopping list and made purchase with a click after payment and a conformation email
is received for the same (Watson et al., 2015).
 Delivery options – There are various delivery options offered by the company for
example delivery by the company at door, this is also bifurcated as per the customer

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preference the complimentary delivery is provided in case of standard delivery that is in 3
to 4 working days. In case client ask for fast delivery that is two-day delivery then some
additional charge is been imposed for express delivery and premium delivery. Another
method of delivery options include collects in store. As per this option, the clients can
pick up their ordered packet within 15 days of the purchase (uk.louisvuitton, 2019).
 Payment methods – The payment methods are the same as that of the physical stores that
is credit card, debit card and PayPal (Balmer & Abratt, 2016).
 Return policy – The complimentary exchange is available for the customer within 30
days of delivery but not for the personalized products. The exchange of the online
purchases can be done through stores only (us.louisvuitton, 2019).
Major competitors
The major competitors of Louis Vuitton include Gucci, Prada, Chanel, Hermes, Burberry, Fendi,
and Versace. These global leaders can be a threat to Louis Vuitton in various markets like the US
market. The product range is similar to that of Louis Vuitton and targeting the same market and
customer group. Among these Hermes and Gucci are two major competitors. Hermes
international is accessories and clothing company headquarters in France. The company operates
in 315 stores globally and the USP of the brand is high quality customized products. Strengths of
the company include strong global presence; a large number of exclusive stores worldwide,
manufacturing units is available across the globe for localization of goods. The limitation of this
brand is the digital presence of the company and the waiting list for personalized goods. The
company has the opportunity for the digital revolution as the company (Ennis, 2016).

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Gucci is another leading luxury fashion brand since 1921. The USP is its icons of heritage and
the focused quality goods, as the title suggests for the company “Quality is remembered long
after price is forgotten”. The company has directly operated stores and having a distribution
process in full control. The competitive advantage of the brand is product personalization. The
strengths of this brand include diversification that is introducing new products like baby diaper
bags, personalization of goods, directly operated stores, strong global presence. The only
weakness identified for the company is that the profit margins are low for the company.
However, it has been observed that all the three brands have their position in the market and are
identified brands for their target market through their logo. Dolce and Gabbana, Michael Kors
are some other competitors of LV.
Louis Vuitton competitive advantage that is responsible for the company to sustain within this
competitive industry includes innovation, an association of the brand with art and architecture.
Craftsmanship is one of the major competitive advantages which is treated for all other brands
that is the handmade products by the company, which is the reason for the quality of the product.
The raw material used by the company is the USP too as that is responsible for the company to
manufacture such good quality goods.
Recommendations
 Personalization – The Company could have improved the integrated marketing channel
provided by the company through a personalization option. This would be a competitive
advantage for the company while offering goods and services. This would enhance the
experience at the company’s boutique or stores. This would include customized goods as
per the customer requirement on order (Pantano et al., 2016).

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 Social media signs on the website – It has been observed that the online website does not
have any sign of social media. The company in order to enhance the online experience
and reviews for the customers the company can display the social media pages sign on
the website page that can lead the customer to visits the page and share their review.
 Slide show images of catwalk shows – The catwalk shows videos or slideshow can be
included in the content page on the website. This is to encourage customers and for
customers to see the actual look of the product before making a purchase decision. This
would be helpful for the customers to make a decision online (Calboli, 2015).
 Predictive search - the search sign is available at the right corner of the website page.
However, the company can provide a predictive search for the customer considering their
previous search history of the previous purchase. This would improve the marketing
channel experience.
 Product filters – The Company has offered to filter through two major categories, the
company could have increased the filters like according to the products category. For
instance watches, accessories, and bags that can be bifurcated into sub categories.
 Directly operated stores – This would be another distribution channel for the company.
This would not include intermediaries or retailers. This could be done for specific nations
and limited stores, where the company could have full control over the distribution
channel and stores operations (Chung, 2015).

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Conclusion
From the report, it can be concluded that the Louis Vuitton is a luxury retail company and French
fashion house founded in 1854. It is commonly called LV offering products from the luxury
range and leather products to ready to use, jewellery, watches, shoes, sunglasses, accessories,
and books. The distribution of goods is a major decision to be taken by the company, and the
channels are designed for sales maximization of goods and services when the market is entered.
This strategy affects the company’s sale and the way to reach out to the customer. Louis Vuitton
sells its products and services through retail and internet models and multichannel retailing this
includes brick and motor retailing channel, which includes standalone boutique, high-end
departmental store, and online channel that is trading goods through e-commerce.
Considering brick and motor stores the major USP fort the company is the design of the store
and luxury experience for the customers. The prices are the same for the store and online channel
but the exclusive collection is available in the store or standalone boutique. One on one
appointment are provided in store experience where the customers are provided every possible
guidance and advice for the purchase decision. The delivery options are very much in case of
online shopping that is the doorstep delivery in standard working days or fasts deliver within
additional charge, and collect in store delivery options. The major competitors of Louis Vuitton
include Gucci, Prada, Chanel, Hermes, Burberry, Fendi, and Versace. Gucci and Hermes have
the major advantage of personalization in a product range that is recommended for the Louis
Vuitton as well. A payment option by the brand includes Cash, Debit card, credit card, and Pay
Pal. Various credit cards are provided like Visa, MasterCard, and American. The company

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claims to have safe transactions through cards and protect its client’s personal and payment
information in case of both the channels.

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