Critical Analysis: Louis Vuitton's Brand Identity & Customer Retention

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This report provides a critical analysis of the relationship between brand identity and customer retention, using Louis Vuitton as a case study. The research explores strategies employed by Louis Vuitton to maintain its brand identity and foster customer loyalty. The report includes an executive summary, literature review, research methodology, data presentation, and analysis, culminating in conclusions and recommendations. Key areas of focus include the strategies Louis Vuitton uses to build its brand image, the core aspects of brand identity and their impact on customer retention, the challenges the company faces, and recommendations for gaining a competitive advantage. The study utilizes both primary and secondary data sources, including questionnaires and literature reviews, to evaluate the effectiveness of Louis Vuitton's branding and customer retention efforts within the luxury retail market.
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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
ï‚· To examine strategies adopted by Louis Vuitton for making relationship in
between brand identity and customer relationship.
ï‚· To understand core aspects related to the concepts of Brand Identity and its
relationship with retention of customer.
ï‚· To identify challenges being faced by Louis Vuitton in maintaining relationship
between retention of customer and brand identity.
ï‚· To provide recommendation to Louis Vuitton for gaining competitive advantages
in the market place with high customer base.
Research Questions
ï‚· Which strategies as adopted by Louis Vuitton will make relationship in between
brand identity and customer relationship better?
ï‚· What are the core aspects of Brand Identity and how it affects relationship with
retention of customer?
ï‚· What are the challenges being faced by Louis Vuitton in maintaining relationship
between retention of customer and brand identity?
ï‚· 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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retention in detailed manner. The brand identity helps in make the image of an
organization strong and also retains the consumers at market place. An investigator
conducts a study to identify the obstacles or difficulties which the company faces in
order to establish an efficient partnership between brand identity and retaining loyal
customers in the sector. Other than this, for personal interest learner conducts the
investigation because from this it can able to gain the better understanding and
enhance knowledge base in a better manner.
Research Structure
As per the proposal made, following is the structure which has been followed for
making research proposal:
Chapter 1 – Introduction
In this chapter, a brief introduction about the relationship in between brand
identity as well as retention of customer group strategy in relation to Louis Vuitton will
be defined.
Chapter 2 – Literature Review
As per the point of view of different authors, critical analysis will be done for
evaluating relationship in between brand identity and customer retention strategy of
Louis Vuitton.
Chapter 3 – Research Methodology
This part of research proposal will define, that what type of research study is
conducted along with research approach, philosophy used. Also, it will define about
sampling, data collection as well as analysis process. Furthermore, explanation related
to ethical consideration and limitations being faced by researcher in completing this
research study will be made (Ciunova-Shuleska and et. al., 2017).
Chapter 4 – Time line
In this chapter, explanation related to the minimum time frame within with the
whole research study will be completed has been defined.
Research Significance
The term significance plays an important role in the context of research. The
present research is very important for the researcher because it helps to improve the
knowledge of the researcher in respect of the relationship between customer retention
and brand identity. It also helps the researcher in academic career. This research will
also be helpful for the company that are operating their business in similar industry to
develop the strategies that helps to maintain relationship between brand identity and
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retaining loyal base of clients in the business. The research will also assist in convincing
other people in respect of the problem of the study. Further, it also helps to convince the
readers of research the importance of the study and also the competence of researcher
(Norris, 2015). Also, this research can be used by the competitors within the same
industry as they also have the same working, and they will also benefit from the
concepts of brand identity for attracting more and more customers. Major significance of
conducting the study on this topic is for other research scholars as this study will help
them to perform similar research studies in the future. Moreover, it will help to save time
and cost of other researchers. They can use this as a base for conducting own study
and can continue with their own research. The study will also help students to prepare
projects on similar topics.
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CHAPTER 2: LITERATURE REVIEW
Literature review refers to a detailed review of previous work on the subject. This
helps in giving theoretical contribution to particular field of study. This research part
assists in presenting readers about ideas and the information that has been built on the
subject. This part of the study is focused on the secondary data collection system. The
sources to collect information from secondary sources are books, articles, journals and
others (Madziwa, 2016). It is easy for researcher to collect information from using
secondary sources within specific time period.
Strategies adopted by Louis Vuitton for making relationship in between brand identity
and customer relationship
As per opinion of JR Tuttle (2018) Organisational branding is explained as practice of
promoting brand name of organisational entity as opposed to particular service or
products. Activities that go into organisational branding are varied from the service and
product branding due to scope of organisational brand is much wider. Corporate
Branding is an action of using the company's brand name as part of the overall
promotional campaign and contact to stakeholders. It is the intangible attitude and spirit
behind the business that gives it a distinctive reputation in the market and in the minds
of customers. It is a much wider term compared to the marketing of the company's
goods and services.
According to opinion of Natalie Duyne (2020) Brand identity refers to image what
an organization wants to project in mind of customer. It is totally control through an
organization opposite to the brand reputation which gets formed own its own. This is
feature related with particular organization, service and product through which this is
expressed to world and differentiates it from the other organizations, services and
products in similar area. Brand identity is a unique to be holder of similar and mainly
used to communicate with target Market by different branding as well as marketing
strategies. On the other hand, customer relationship is development of ongoing
connection among an organization and its consumers. Relationship consists Marketing
Communication, technical assistance, customer service and sales support for desktop
relationship is mainly measured through degree of satisfaction level of customers by
purchasing cycle and also following the receipt of services and products. Louis Vuitton
focus on developing the better and positive relationship with its customers by providing
them high quality of services and products so that their needs can be satisfied and they
can sustain for long period of time. The strong brand identity helps in attracting the
customers and develops the positive relationship with them.There are different
strategies given below which used by Louis Vuitton for making the relationship in among
brand identity and the customer relationship:
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Promote Engagement by Content Marketing- Although traditional methods of
advertising may still be valuable, trying to convince people about product exists, and
maybe hitting an emotional chord but content marketing offers and the consumer a
different kind of value. When focus on the relationship marketing, content should be
helpful for audience to get the more services from Louis Vuitton.
Develop promotional strategy- This helps in develop the social media
presence by using appropriate channels to interact directly with target audience on
Twitter, Instagram and Facebook. These all things help Louis Vuitton to develop the
content marketing which states to company about the content to communicate with the
target audience (Venkatesan, 2017).
Challenges of branding
As per opinion of Katerina Pouspourika (2019), there are some challenges of
branding mention below:
Brand knowledge- Brand become strong and should connect with brand note in
mind of consumers. The brand knowledge is a brand node that has been linked to a
number of associations. It includes the brand name, the branding feature, other brand
advertisements, the product type, evaluation reactions to the brand and advertisement.
Financial challenge- Under this, there is a need to company to arrange the
sensible budget to branding and for marketing of product. It is necessary consideration
to aware the people about product.
On the other hand, Avinash Chandra (2020) states that Branding is not easier for
an organization. According to his opinion that branding is not about giving name or
attractive logo, it is more challenging tasks for company. He thought that branding is
challenge of cash or dealing with the short term finance. It requires more investment.
Other than this, consistency is also a main challenge of branding. There is a need to
keep message consistent across all time, media and platforms. This needs keeping
brand revenant through searching the new ways in order to articulate massages so that
this stays more consistent.
Core aspects related to the concepts of Brand Identity and its relationship with retention
of customer
On the basis of brand identity is authenticity and essence of any brand. It included
unique set of the brand associations which organization works to developed in market.
Visible components of a brand for an instancename, design, colors, logotype and
symbolwhich together determine as well as differentiate brand in consumers' mind.This
association portrays what brand is and it related promises to consumers. It is that image
which an Organization wants to project in mind of customers. Steam from company that
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