Longchamp Case Analysis: Marketing Mix, Brand Strategy, and Licensing

This report provides a comprehensive analysis of the Longchamp case study, focusing on the factors that have contributed to the success of Le Pliage, a globally recognized fashion product. It delves into the application of the 4Ps of marketing (Product, Price, Place, and Promotion) to understand Le Pliage's market positioning and appeal. The report assesses how Le Pliage impacts the Longchamp brand, both positively and negatively, considering its role as a cultural icon versus its low price point. It then explores the strategic decision of whether to separate Le Pliage as a distinct brand, weighing the pros and cons of such a move and offering a recommendation. Furthermore, the analysis considers Longchamp's potential for brand extension into menswear, eyeglasses, and fragrances, providing a rationale for and against such expansions. The report concludes by evaluating the risks and benefits associated with licensing the Longchamp brand as a strategy to pursue these growth opportunities, offering a holistic view of Longchamp's strategic choices in a dynamic market.

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LONGCHAMP CASE ANALYSIS
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1LONGCHAMP CASE ANALYSIS
Introduction
Longchamp’s Le Pliage is one of the most successful fashion products in the world.
The iconic nylon handbag Le Pliage have become a must have item for both young and the
old people. However, it is challenging for the business organization to maintain its high levels
of sales in such pricing. Therefore, Longchamp has been trying to refocus the pricing of the
products to higher priced, luxury leather items. The purpose of this report is to determine
factors contributing to Le Pliage success and provides recommendations for brand extension.
It determines the pros and the cons of the recommendations and concludes the report.
Discussion
Factors that contribute to the success of Le Pliage
4P’s of marketing of Le Pliage
Product: Le Pliage is low priced luxury item. The product is highly stylish and luxurious for
both young and the old. The product item has been successfully positioned in the market
focusing on high quality and has been designed as a functional bag. Le Pliage has gained
must popularity in the market since its launch due to its features like foldable, leather
material, sturdy, durable, cheap and light weight (Avery, Junker & Beyersdorfer, 2016). The
brand has a classic design. Moreover, the innovation style of the product contributes to its
sustainability and longevity. These features have contributed to the success of Le Pliage.
Price – The pricing strategy of Le Pliage also contributes to the success of the product. The
pricing is average and affordable for all the customer groups. It targets the white collar and
the upper class people. Longchamp has targeted the product towards biggest market with low

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barrier of consuming ability (Avery, Junker & Beyersdorfer, 2016). The average price of the
product is set to make is easily affordable to most of the consumer segments.
Place – The brand name Longchamp provides additional support to the of Le Pliage products.
The brand name plays an important role in its success. Of Le Pliage is distributed through the
flagship stores and world’s most fashionable shopping boulevard to increase the visibility of
the product. The product is made easily available to the consumer through fully owned
franchised stores, online websites, departmental stores and wholesale distribution. The
product is available to major countries through 1500 points of sales. Therefore, the effective
distribution strategy of the business organization contributes to the success of Le Pliage
(Avery, Junker & Beyersdorfer, 2016).
Promotion - Le Pliage launched its first advertising campaign with Kate Moss in 2006. This
had considerable impact on the sales. The promotional strategy of the business organization
stimulated its sales and created a halo effect on the brand. Le Pliage has special seasonal
colours as well as limited edition prints offered twice in a yea. This strategy provides
opportunity to the people to renew their relationship with Le Pliage.
Ways in which Le Pliage help and hurt Longchamp
Le Pliage model is highly successful since its launch. It can be said that Le Pliage is
an icon and brand success of Longchamp. Le Pliage is one of the most successful product
items of Longchamp. It has become a cultural icon through the world. This way Le Pliage
helps Longchamp to further grow and boost its reputation. The product is luxurious and
easily affordable by all segments of the customers. This way Le Pliage helps Longchamp.
However, it has been challenging for Longchamp to manage the low priced nylon handbag
since it has been trying to carry forward the brand to higher priced products and offer luxury

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leather goods (Avery, Junker & Beyersdorfer, 2016). Hence it can be said that Le Pliage hurts
Longchamp considering its low price.
The business organization needs to maintain a balance between the cherishing the heritage
and the success of an established brand and to carry forward the business and grow in a fast
changing industry (Bakker et al., 2014).
Pros and cons of unleashing Le Pliage as a separate brand
Pros – If Le Pliage is unleashed as the separate brand, Longchamp will be able to grow and
carry forward its business operations in the long run. Due to the fast changing business
environment, it is highly essential for the business organization to carry forward its business
and increase the range of the product and service offerings (Jayachandran et al. 2013). The
consumer needs, wants and preferences can change with time with availability of new and
innovative products in the market. There is emergence of new companies with new products
in the market (Uggla & Åsberg, 2015). By unleashing Le Pliage as separate brand, it will
continue to be a heritage and contribute to the success of Longchamp.
Cons – However, there are disadvantages in unleashing Le Pliage as separate brand. The
overall focus of Longchamp will be shifted from Le Pliage to other product ranges which can
be risky for Le Pliage in the long run. Lack of promotional and other strategies of the
company can reduce efficiency of Le Pliage. It has been an established brand and contributed
to the success of the business organization (Jayachandran et al. 2013). The new product
ranges that will be offered by Longchamp that is the high priced leather items may be
acceptable by the consumers or it might take time for the consumers to accept the new
products (Song, Zhang & Zhang, 2013). Hence it will be risky to Unleash Le Pliage as
separate brand.

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Brand extension of Longchamp and recommendations
It is highly recommended to extend its brand further into menswear, eyeglasses and
fragrances in the market, as this will help the business organization to grow and expand in the
global market. Due to fast changing business environment, it will be beneficial for the
business organization to expand the product range and portfolio in the market. It might be
equally successful in the market due to the brand name along with effective implementation
of marketing strategy (Londhe, 2014).. This will help the business organization to further
grow and expand itself in the highly competitive market. It needs to maintain its position in
the market and ensure sustainability (Resnick et al., 2016). This can only be attained by
extending its brand further into other product ranges like menswear, eyeglasses and
fragrances.
Risks and benefits of licensing Longchamp brand
Benefits –
 Licensing will help the business organization to create an opportunity of ongoing
stream of revenue. This will increase the profitability of the business organization.
 Licensing with help to create better business opportunities
 This will also help the business organization to reduce the risks associated with the
new products
 This will help to develop unique marketing approach
Risks
 Licensing will increase the dependency on the licensee

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 It creates additional competition in the market
 If the relationships are mismanaged in licensing, it could dominate the reputation of
Longchamp
Conclusion
Therefore from the above analysis, it can be concluded that Le Pliage has contributed
to the overall success of Longchamp. The report has describes the 4ps of marking Le Pliage
and the ways in which the strategies contributed to the success of the product. However, the
low pricing of the product hurts Longman as it aims to grow and expand to maintain its
competitiveness and sustainability. It is suggested to unleash Le Pliage from Longchamp to
grow its full potential as a separate brand. Further it provides recommendations to extend the
brand further and discussed the risks and benefits of licensing Longchamp brand to pursue
the strategy.

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References
Avery, J., Junker, T., & Beyersdorfer, D. (2016). Longchamp.
Bakker, C., Wang, F., Huisman, J., & Den Hollander, M. (2014). Products that go round:
exploring product life extension through design. Journal of Cleaner Production, 69,
10-16.
Jayachandran, S., Kaufman, P., Kumar, V., & Hewett, K. (2013). Brand licensing: what
drives royalty rates?. Journal of Marketing, 77(5), 108-122.
Londhe, B. R. (2014). Marketing mix for next generation marketing. Procedia Economics
and Finance, 11, 335-340.
Resnick, S. M., Cheng, R., Simpson, M., & Lourenço, F. (2016). Marketing in SMEs: a “4Ps”
self-branding model. International Journal of Entrepreneurial Behavior &
Research, 22(1), 155-174.
Song, P., Zhang, C., & Zhang, P. (2013). Online information product design: The influence
of product integration on brand extension. Decision Support Systems, 54(2), 826-837.
Uggla, H., & Åsberg, P. (2015). The Benefits and Risks of Strategic Brand
Collaboration. IUP Journal of Brand Management.

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