Case Study: Brand Identity and Customer Retention at Louis Vuitton

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This assignment is a comprehensive case study analyzing the intricate relationship between brand identity and customer retention, specifically focusing on the luxury fashion house Louis Vuitton. The study delves into the strategies employed by Louis Vuitton to cultivate a strong brand image and foster lasting customer relationships, examining the core aspects of brand identity, such as design, logo, and overall brand perception. It explores how these elements contribute to customer loyalty and retention, as well as the challenges Louis Vuitton faces in maintaining this balance within a competitive market. The analysis includes a review of existing literature, research methodologies, and data analysis to support the findings, culminating in actionable recommendations for Louis Vuitton to enhance its competitive advantage and expand its customer base. The study examines the strategies Louis Vuitton uses for engagement through content marketing, promotional strategies and social media presence.
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A Critical Analysis to Evaluate the
Relationship Between Brand Identity and
Customer Retention Case study on Louis
Vuittons customer Retention Strategy
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Table of Contents
CHAPTER 1: INTRODUCTION................................................................................................................4
Overview of Research.............................................................................................................................4
Research Aim..........................................................................................................................................4
Research Objectives................................................................................................................................4
Research Questions.................................................................................................................................5
Rationale of Research..............................................................................................................................5
Research Structure...................................................................................................................................6
Research Significance..............................................................................................................................6
CHAPTER 2: LITERATURE REVIEW.....................................................................................................8
Strategies adopted by Louis Vuittons for making relationship in between brand identity and customer
relationship..............................................................................................................................................8
Core aspects related to the concepts of Brand Identity and its relationship with retention of customer...8
Challenges being faced by Louis Vuittons in maintaining relationship between retention of customer
and brand identity....................................................................................................................................9
Recommendation to Louis Vuittons for gaining competitive advantages in the market place with high
customer base........................................................................................................................................10
CHAPTER 3 - RESEARCH METHODOLOGY......................................................................................12
Research Source....................................................................................................................................12
Definition..............................................................................................................................................12
Research Theories.................................................................................................................................12
Research methodology..........................................................................................................................13
Ethical Consideration............................................................................................................................14
Research Limitations.............................................................................................................................15
CHAPTER 4: DATA ANALYSIS............................................................................................................18
CHAPTER 4: CONCLUSION AND RECOMMENDATIONS................................................................33
Conclusion.............................................................................................................................................33
Recommendations.................................................................................................................................33
REFERENCES..........................................................................................................................................35
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Title: To evaluate relationship in between brand identity and customer retention: A Case
study on Louis Vuittons.
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. The present report is based on Louis Vuittons
which is a French fashion house dealing in luxury retail business. Its products include luxury
trunks, leather goods like shoes, watches, jewellery, accessories, sunglasses and books etc. 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 them. Louis Vuittons is French fashion house and the luxury
retail organization founded in year 1854 through Louis Vuittons. Labels of this company appear
on many of its products such as watches, sunglasses, books, jewellery and some other leather
products. Brand of Louis Vuittons concerns quality, innovation, authenticity, concerns and
reliability. The symbol of this company defined sharply brand identity through mining
organization history and also design for express that.
Research Aim
To evaluate relationship in between brand identity and customer retention: A Case study
on Louis Vuittons.
Research Objectives
To examine strategies adopted by Louis Vuittons for making relationship in between
brand identity and customer relationship.
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To understand core aspects related to the concepts of Brand Identity and its relationship
with retention of customer.
To identify challenges being faced by Louis Vuittons in maintaining relationship between
retention of customer and brand identity.
To provide recommendation to Louis Vuittons for gaining competitive advantages in the
market place with high customer base.
Research Questions
Which strategies as adopted by Louis Vuittons will make relationship in between brand
identity and customer relationship better?
What are the core aspects of Brand Identity and how it affects relationship with retention
of customer?
What are the challenges being faced by Louis Vuittons in maintaining relationship
between retention of customer and brand identity?
Any recommendation to Louis Vuittons for gaining competitive advantages in the market
place with high customer base?
Rationale of Research
The term rationale refers to the reasons behind performing the study on a specific topic. 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). 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. Further, 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
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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 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 Vuittons 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 Vuittons.
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
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relationship between brand identity and 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 Vuittons for making relationship in between brand identity and
customer relationship
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 Vuittons
for making the relationship in among brand identity and the customer relationship:
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 Vuittons.
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 Vuittons to develop the content marketing which states to
company about the content to communicate with the target audience (Venkatesan, 2017).
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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 instance name, design, colors, logotype and symbol which 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 is responsible for developing
differentiates products with the unique characteristics. A company communicates its identity
through customers by is branding as well as marketing strategies. In the brand identity is bundle
of the functional and mental associations with brand. It is total promise that a company makes
consumers brand can mainly be perceived as products, set of values of a personality that
occupies in mind of customer as it is all that a company wants brand to be considered as. Other
than this, the customer retention is explained as activities as well as actions which an
organization takes to minimize number of consumer’s defections. The main goal of customer
retention is to help organization to sustain large number of customers and make them loyal
towards company. The customer retention helps and organization to enhance its sales as well as
productivity. In context to this, the brand identity helps to make image of form better in able to
retain the customer for long period of time at market place. On the other hand, customer
retention begins with contact a company with its customers and also continues and lifetime of
relationship with existing consumers. The measurement of the customer retention should be
differentiating between the actual customer behavior and behavioral intentions (Simarmata and
et. al., 2017).
Challenges being faced by Louis Vuittons in maintaining relationship between retention of
customer and brand identity
As per opinion of Sampson Lee (2020) with the aid of a positive brand image as created by the
company's effective brand identity campaign, this makes consumers improve their buying
decisions. Brand image also represents the overall value of the company's brand in the eyes of its
global customer audience. As Louis Vuittons is a large size organization and it provides goods in
all over the world. It has a strong brand identity with loyal customers. This company provides its
goods or services at high cost so only the high class people can afford its goods. As Louis
Vuittons is successful brand but it does it give the better retail experience that fulfils
requirements of customers. The issue that Louis Vuittons faced in maintaining relationship
between retention of customer and brand identity are aggressive service that makes customers
feel disturbed, poor shopping environment, long waiting time for the process of shopping,
incomplete product range and many others. These all issues develop the negative impact on mind
of customers and negatively impacted the productivity of company. This also affected the
customer’s retention at market place. It is necessary to Louis Vuittons to focus on removing all
the issues so that customers make trust on company and also make loyal to it (Mahmoud, Hinson
and Adika, 2018). Other than this, with the help of a better brand image as formed through
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successful brand identity message from the company, it helps customers in changing their
purchasing decisions the brand image also reflect the overall performance of the company's
brand in the eyes of its customers group across the globe. Most of the companies have to face
many challenges while retaining their customer base which are as follows:
1. High competition and attractive marketing strategies of competitors
2. Low priced market place such as online shopping platform like Amazon etc. (Homburg, Jozić
and Kuehnl, 2017).
3. Poor marketing as well as promotional strategies of company.
Factors Challenges
Following are some factors which affect brand identity Physical appearance, personality
culture, self image of consumer, reflection as well as relationship with customer. Such
factors define the brand identity as well as limitations within which company is free to
change, develop such brand.
Various types of customers
For making high profits in the market place as well as for acquiring large share, it is very
much important for Louis Vuittons to target its audience and customer in the market
place (Bilgihan, Kandampully and Zhang, 2016). By delivering quality products to its
customers across the globe, Louis has been able to make large profit as well as customer
base. Its customers mainly include women, girls across world.
Recommendation to Louis Vuittons for gaining competitive advantages in the market place with
high customer base
According to Jared Lewis (2020) Competitive advantage refers to condition that puts an
organization in favorable business position. It is gained through providing the consumers Great
Value through means through means of less cost for giving high benefits which can satisfy the
needs of customers. In order to gain the competitive advantage at market place there is a need to
company to provide the better value to customers. Competitive advantage is quality that makes it
possible for a firm to outperform its rivals. This helps a firm to reach superior margins relative to
its competition and creates value to the business and its shareholders. There are some ways given
below by which Louis Vuittons can get the competitive benefit with the high customer base:
Company should use the cost leadership strategy and this is mainly achieved by the large
scale production where Louis Vuittons can exploit the economies of scale.
Louis Vuittons can use the defensive strategy because this allows business to distance
itself from competition and also maintaining the competitive benefit.
Critical review
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As per the view point of Kahn, Inman and Verhoef, (2018), for a company to capture
large market share it is very much essential to formulate sound business plans as well as
strategies. By adopting and designing an appropriate as well as effective brand identity message,
Louis Vuittons can attract large number of customers. Also, this adds to creation of positive
brand image among the mindset of its targeted market audience and other customer group across
the globe. For maintaining the relationship in between the brand image of the company and
customer loyalty base, it is very much essential for the company to deliver proper message so as
to enhance its customer loyalty level on the actual basis. Furthermore, the brand image of the
company reflects the performance of company or brand identity from the point of view of
customers which is considered as the key issue to make judgment about the performance of
brand identity (Arora and Kaur, 2018).
However on the critical note, Magatef and Tomalieh, (2015) stated that for maintaining
brand image every business organization is required to incur some cost expenses. Also, it has
been evaluated that there are no specific theory which are concern with the relationship as
existing in between brand identity and customer loyalty base of the Louis Vuittons Company.
For maintaining such relationship it is very much important on the part of the company to
formulate an effective strategy as well as plan related to the subject matter. Also, it has been
identified that if the company is having a desirable image, then it will lead to high level of
customer satisfaction and preference but on the flip side with an undesirable image it can result
into dissatisfaction which means there is positive relationship in between the brand image of
company and customer satisfaction.
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