Direct & Relationship Marketing: Louis Vuitton & Frozen Food Report

This report provides a comprehensive analysis of Louis Vuitton's customer loyalty program, focusing on its purpose, critical evaluation within the fashion industry, and implementation through online and in-store sign-ups. It also delves into the frozen food category, examining insights related to Dr....Read More

Promotional Direct &
Relationship Marketing

Contents
ASSESSMENT REGULATIONS 1................................................................................................1
About the Louis Vuitton company ..............................................................................................1
Purpose of loyalty schemes .........................................................................................................1
Critical evaluation of loyalty schemes in fashion industry .........................................................1
Online Sign-up ............................................................................................................................2
Sign -up for in-store customers ...................................................................................................2
Assessment Question 2 ...................................................................................................................3
Frozen food category insights......................................................................................................3
Shopper/consumer of frozen food................................................................................................3
Seasonality...................................................................................................................................4
Recommended promotional techniques.......................................................................................4
REFERENCES................................................................................................................................5

Assessment question 1
About the Louis Vuitton company
Louis Vuitton is an organisation which target Gen Z with their luxury fashion products. It
deals in shoes, accessories, sunglasses as well as books. It is considered as most counterfeited
brands in regards with fashion industry as it become a status symbol for them.
Company is facing issues in regards with reduction of sales in online and offline arena.
As their customers are purchasing their branded products from other online sites. In order to curb
this issue, managers of Louis Vuitton have determined to introduce a customer loyalty scheme in
order to add extra value as well as retain their premium price point. This question covers a
critical evaluation of loyalty scheme which is executed by managers of Louis Vuitton for
retaining their customers with the brand.
Purpose of loyalty schemes
 To enhance extra value to brand in order to make it viable.
 To increase customer engagement and retention with the brand.
Critical evaluation of loyalty schemes in fashion industry
Loyalty programmes are considered as crucial for fashion industry as it acts as an
opportunity for gathering significant data for customers (Kecsmar, 2022). These are typically
based associated with points and aid customers in getting discounts, cashback or sample products
for free. These loyalty programmes are considered as advantageous for managers of Louis
Vuitton as through this they can attract prospective customers as well as ensure personalised
dialogues with them for building strong relationships. Through this managers of Louis Vuitton
can focus principally on social interactions.
Luxury brands often face a challenge of lacking personalisation with their customers
(Chitrakorn, 2021). Managers of Louis Vuitton also gets afraid of made their brand cheaper by
providing discounts and free products to customers. However, it is also considered as important
aspect for Louis Vuitton in order to grab their customers to make purchase from their online and
offline stores.
For promoting their loyalty programme, managers of Louis Vuitton have determined to
chose social sites, own official website, e-mails and brochures provided in their offline stores.
These communication channels can be chose by managers of Louis Vuitton as these are easily
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accessible to their target customers. For Louis Vuitton, a virtual loyalty programme is
recommended whereby it is offered to new as well as existing customers and no fee will be
charged for this. Customers will be provided a smart loyalty card in their smart phone wallet.
Whenever, they make a purchase from online and offline store of Louis Vuitton, specified points
will be credited to their loyalty card which they can use for another purchase. This compels them
to make repeat purchases. Those points will provide customers an extra discount of £15 on their
next purchase.
Online Sign-up
Customers are asked to sign-up for loyalty programme of Louis Vuitton through virtual sign-up
through their online website. A page has been published on their website which contain step-by-
step process for entering into loyalty programme. E-mails are used for communicating with
existing customers and make them informed about the scheme (Abeza and et.al., 2020).
Sign -up for in-store customers
Apart from online sign-up, their stores can also be used for this purpose. This can be helpful as
their staff can register customers through make them filling the details and an immediate e-mail
is sent to customers regarding generated points of £10 on their sign up. For new customers,
managers of Louis Vuitton use social media sites such as Instagram and Facebook for grabbing
their attention towards their loyalty programme.
Existing and new members will be given £10 for signing up the process of loyalty
programme and £15 for making the purchase from online or offline store of Louis Vuitton.
Points or rewards will be transferred automatically to their digital wallet on an instant basis.
Through this loyalty programme, managers of Louis Vuitton can persuade their existing as well
as prospective customers to make purchase from their stores rather than other e-commerce sites.
Rewards will be given in the form of discount on next purchases which affect the procuring
decisions of customers in a significant manner. Provided discounts are higher than the money
spended by customers on e-commerce website for purchasing the products of same brand.
Managers of Louis Vuitton can expand their loyalty programmes by bifurcating into other small
schemes such as providing extra points to customers for festive season like Christmas or New
Year. Offers can be extended on the basis of previous purchases of customers.
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Assessment Question 2
Dr. Oetker Pizza and Tesco
Dr. Oetker is the german company which is dealing in baking powder, cakes mixes, frozen
pizza and so on. It is founded in 1891 by August Oetker. Pizza is sold fresh or frozen. This
method has been developed in order to overcome such preventing the sauce from combining with
the dough and producing crust that can be the frozen and reheated pizza to the potential
consumer.
Tesco is the multinational retailing company which is offering wide range of products and
they are operating their business in UK and other parts of the world. The company is founded by
Jack Cohen in 1919. It is the third largest retailing company in the world.
Frozen food category insights
The frozen food market has expanding their varieties from fast food to the end product,
cooked meals. The variations in consumers lifestyle the preservative food trends go up. The
demand of frozen food has increased (Aguerrebere, 2019).
With the reference of, Dr. Oetkar's pizza the frozen food is delicious according to the
survey it has been found that the people used to purchase the oetkar's frozen food. According to
UK peoples, the pizza of DR. oetkar is very delicious and other frozen food is also delightful.
In the context of tesco, the consumer's found that the preservatives of tesco is not delightful as
they have high amount of salt in their products. They have watery tomato sauce. It seems that the
tesco wants to hide their imperfections but they can't. Consumer's does not prefer their
preservatives due to the high amount of salt.
Therefore, the customers prefer the oetkar's preservatives ,more instead of tesco's. The
frozen food insights of Dr. oetkar's pizza is rising whereas the demand of tesco's preservative is
declining. In a nutshell, the Tesco's demand is declining as they don't supply better quality of
preservatives.
After analysing the frozen food category of the companies, it is decided that the company
will be promoting healthy and safe food which can be quickly available.
Shopper/consumer of frozen food
This is being known that all the purchasing decisions being made by the person who buy
the groceries and choose among the wide operation available in the grocery store. This respective
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project is planning to promote the frozen food to their prospective customer so that they can
increase the overalls ale and growth of the company at larger pace.
Now a day, people are having busy life and they do not get time to cook full time mean by single
handed so frozen food are the best option to have healthy and quick food to the people. This is
clear that the frozen food is chosen by the people who use to shop the grocery. The shopping of
the grocery is being shared among the men and women of the family so that they can make the
better choice to have to better product. It is clear that due to the fact that, the frozen food must
have kept cooled and restored in a freezer after the purchase ad this can be assumed that these
products are purchased on big shop so that they can have the better products ad make the bulk
buying (Melović, Jocović Dabić and et. al., 2020).
Seasonality
As human being is completely bound with the season and they are complying with the
things which are easily available to them and can be rightly used by them. So season is the
important aspects for the consumer. This is the significant change which occur during the healthy
options and it is vital to analyse out difference seasons(Lim and Guzmán, 2022).This is clear that
people always prefer to have the healthy food so that they can ensure the better balance between
them. So it is vital to analyse the consumer who can switch to the healthy food options and try
the frozen food item. This basically indicates consumer move for the healthier nutrition’s after
the festivals and they also promote and inspire the people to eat all type of food.
Recommended promotional techniques
It is recommended to enhance awareness of the frozen of Tesco and Dr. Oetker food item
and ensure to increase the sort-term sales so that they can reach to the large group of customer in
the target market with the use of appropriate strategies such as social media platform.
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REFERENCES
Books and Journals:
Abeza, G. and et.al., 2020. The role of social media in the co-creation of value in relationship
marketing: a multi-domain study. Journal of Strategic Marketing. 28(6). pp.472-493.
Aguerrebere, P.M., 2019. Hospital brand promotion through interpersonal communication
maintained by health professionals on social media.
Lim, W. M. and Guzmán, F., 2022. How does promotion mix affect brand equity? Insights from
a mixed-methods study of low involvement products. Journal of Business Research.
141. pp.175-190.
Melović, B., Jocović, M., Dabić, M., Vulić, T.B. and Dudic, B., 2020. The impact of digital
transformation and digital marketing on the brand promotion, positioning and electronic
business in Montenegro. Technology in Society, 63, p.101425.
Raji, R.A., Rashid, S. and Ishak, S., 2019. The mediating effect of brand image on the
relationships between social media advertising content, sales promotion content and
behaviuoral intention. Journal of Research in Interactive Marketing.
Online:
Kecsmar, Z., 2022. Luxury Fashion Loyalty Programs: A Comprehensive Guide. [Online]
Available through: <https://antavo.com/blog/luxury-fashion-loyalty-programs/>
Chitrakorn, K., 2021. What the new customer loyalty looks like. [Online] Available through:
<https://www.voguebusiness.com/companies/what-the-new-luxury-customer-loyalty-
programme-looks-like>
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