University Assignment: Marketing and Management of Louis Vuitton

This report provides a comprehensive analysis of Louis Vuitton's marketing and management strategies. It begins with an executive summary, followed by an introduction that highlights the importance of marketing in influencing consumer purchasing intentions and achieving business expansion. The discussion section offers a brief overview of Louis Vuitton, detailing its product offerings, brand recognition, and recent challenges such as counterfeiting. The report delves into Louis Vuitton's marketing strategies, including its distribution channels, pricing strategies, and social media marketing efforts. A detailed SWOT analysis examines the brand's strengths, weaknesses, opportunities, and threats. Furthermore, a PESTLE analysis explores the political, economic, social, technological, legal, and environmental factors impacting the company. Competitive analysis assesses the bargaining power of suppliers and buyers, the threat of new entrants and substitutes, and the level of competitive rivalry within the luxury goods market. The report also covers market segmentation, the marketing mix, and a marketing plan that includes strategies for expansion into new markets. The conclusion summarizes the key findings and offers insights into the brand's future prospects.

Running head: MARKETING
Marketing and management of Louis Vuitton
Name of the student:
Name of the university:
Author note:

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Executive summary
Management is a crucial parameter for upgrading the standards and quality of the operations.
Strategic approach is beneficial in this aspect for achieving positive outcomes. These aspects
are also fruitful in terms of achieving global expansion. This report assesses the marketing
strategies of Louis Vuittion, one of the famous fashion retail brand. This is through the means
of examining the effective of the infrastructure, capability to handle the external challenges
and risk assessment. Corporate social responsibilities, quality and service operations are
moderate, which needs improvisation for penetrating into the markets of Brunei.
Technological training would generate value in the operation of Louis Vuitton, helping in the
achievement of infrastructural development, crucial for achieving global expansion through
product diversification and strategic alliance, followed by evaluation and audits.

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Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Brief overview of the company..............................................................................................3
Marketing strategy.................................................................................................................3
Environment analysis.............................................................................................................5
SWOT....................................................................................................................................5
PESTLE..................................................................................................................................6
Competitive analysis..............................................................................................................8
Market segmentation............................................................................................................10
Marketing mix......................................................................................................................11
Marketing plan.........................................................................................................................13
Conclusion................................................................................................................................16
References................................................................................................................................17
References................................................................................................................................17

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Introduction
Marketing is an art, which the sellers need to be aware of, for attracting the buyers.
Tactful approach is the need for influencing the purchasing intentions of the buyers. Strategy
and plans are the tools, which is beneficial in terms of mapping the target market, which
would be effective for increasing the sales revenue and profit margin (Alon et al., 2016).
Assessment of the internal and external environment is assistance in terms of maintaining the
balance between the operations, specially the supply and demands. Competitive analysis is
vital for developing plans for upgrading the infrastructure for expanding the business into the
external environments. This assignment, with the example of Louis Vuitton, sheds light on
the marketing strategies for developing new product lines for expanding the scope and arena
of the business.
Discussion
Brief overview of the company
Louis Vuitton has achieved accolades and glory as one of legendary fashion brands.
Product differentiation and diversification is reflected in dealing with handbags, leather
goods, shoes, jewellery, accessories, and sunglass among others. High quality design is
evident in the designs of the products, which is popular among the clients and customers.
State of art materials, blended with craftsmanship, results in the production of quality
products (Louisvuitton.com, 2020). The monogram is the symbol of the brand recognition.
Acquisition is one of the aspects of increasing the sales revenue. Recently, counterfeiting has
been discovered as one of the major problems, which has degraded the brand image. Skilled
and qualified lawyers are hired for dealing the case of counterfeiting through investigations.

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Marketing strategy
Till 1980, the products of Louis Vuitton were available in the department stores,
which enhanced the ease of the customers in terms of purchase. However, owing to the
counterfeiting issue, the staffs have been compelled to impose strict control measures over
the channels of distributing the products to the customers. At present, the products are sold
only through the authentic boutiques in the urban areas and hypermarkets. These stores are
independently managed by the managers and employees. Fixed pricing strategies are
effective for the brand in terms of estimating the sales revenue and profit margin (Beumer,
igge & Elliott, 2018). Along with this, mention can also be made of the social media
marketing, which proves beneficial for the brand to increase the trafficking of the audience
towards the brand image. Celebrity endorsements are also used for enhancing the brand
awareness. Campaigns are also conducted by Louis Vuitton for expanding the customer rates,
where traditional core values are reflected, indicating the customer loyalty.
Stable and flexible brand value has acted assistance for the brand to globalize the
business. According to the marketing plans, the emphasis is on the expansion of luxury
product lines into the markets of China, India, Japan, and Europe. Recently, the plans cater to
expansion in the markets of Brunei. Long term planning is conducted for implementation of
the growth prospects and plans (Crawford & Brennan, 2017) The management techniques
include maintenance of the products, adjustments, risk assessment and management. Mention
can be made of the total quality management, which is implied in the form of lab tests and
quality assurance checks for the manufactured products. After all these, reports are prepared
on a long term planning basis, which helps in envisioning a secure future for the business.
Distribution strategy and no-discount policies are also an important component of the
marketing strategies implemented by the brand. Adherence and compliance to the legislations

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have acted assistance in preserving the brand equity and achieving trust, loyalty and
dependence from the clients and customers (De Mooij, 2018).

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Environment analysis
SWOT
Strengths
 Quality- The emphasis is on the production of quality goods for which premium
pricing strategy is used. This is one of the aspects, where the production levels reach
to the benchmark. Special mention can be taken of the handbags, where design and
quality enhance the shelf life.
 Brand recognition- Monogram is used on the products, which increases the brand
awareness. Here, psychographic segmentation is relevant in terms of catering to the
demands of the customers in terms of enhancing the status and symbol. Celebrity
endorsements are also used for enhancing the brand loyalty (Louisvuitton.com, 2020).
 Wide supply chain network- Skilled efforts of 1,21,289 employees results in
globalizing the business of the luxury goods. Stores, high end retail chains are the
channels through which the products are distributed.
 Merchandise- Exclusive monograms are used on the products for labelling purposes,
which seperates the products from the other products.
 Skilled and efficient designers are hired for the manufacturing the products
(Louisvuitton.com, 2020).
Weakness
 Centralized decision making reduces the morale of the employees. Strict decisions of
the employers and exclusivity on the copyright of the designs reflects the reliance on
the centralized decision making.
 There is an absence of sensitivity towards foreign cultures, which is concern in terms
of expansion.

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 Over reliance on the Japanese market reflects the destruction of the product
differentiation and diversification capabilities and competencies (Louisvuitton.com,
2020).
 Exhorbitant pricing is also a weakness towards satisfying the demands of the
customers towards possession of the influential brand products.
Opportunities
 Product diversification and differentiation is effective for the company in terms of
globalizing the products. Acquisition of the luxury brands would be effective for the
expanding the sales revenue and profit margin.
 Increasing the recruitment of more female employees would be effective for
enhancing the cultural diversity (Louisvuitton.com, 2020).
 Increasing the per capita income would bring significant increase in the demand for
the other accessories.
Threats
 Counterfeiting has diluted the market share of the brand, degrading the brand image.
 The resource capabilities and competencies cater to exclusive merchandising for the
products. Strategic planning is needed in this case for customizing the products for the
individual cultures. The team comprising of the European designers would be a
challenge for the business in terms of embracing the designs from the foreign cultures
(Louisvuitton.com, 2020).
PESTLE
Political  Improper political affiliation
 Corruptions

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Economic  Stable GDP in the emerging markets
 Economic downturn
 Volatile currency movement
Social  Preferences towards experiential spending
 Demographic segmentation
 Societal influences
Technological  Social media marketing
Legal  Compliance standards for the suppliers
 PETA allegations over screening and testing of the products
Environmental  Low visibility for sustainability reporting
Absence of political affiliations is obstacle for the brand in terms of conducting the
importing and exporting activities. Moreover, cases of corruptions aggravate the complexities
in terms of globalizing the business. Stability prevails in the emerging market in terms of
GDP growth. Lipstick effect is seen in the down market scenarios, when the purchase is done
in small amounts. Volatile currency movements are also difficult in terms of setting the
process of the products (Duong, 2017). Increasing preferences towards experiential spending
has compelled the staffs to revised the manufacturing process for increasing the shelf life of
the products. Demographic segmentation is effective in terms of implementing the
distribution channels of stores, hypermarkets. This has been effective in terms of achieving
the growth of the luxury market. Societal influences also influence the marketing of the
brand.
Social media marketing is one of the aspects, which helps in expanding the customer
rates. Uploading the images of the newly launched products on social media is effective for
addressing to the queries and concerns of the customers regarding the production. The
suppliers are engaged into the process through compliance standards, which is applicable in
the contracts (Eppinger & Potrafke, 2016). Cosmic testing and screening of the products
witnesses PETA allegations. Therefore, more deeper and flexible compliance is to be planned

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for averting such allegations. Low visibility for the sustainable reporting adversely affects the
community development. This approach is a challenge in terms of enhancing the corporate
social responsibility.
Competitive analysis
Threat of new entrants- Low
The economy of scale of the fashion industry is difficult to map, which provides the
opportunity to the other companies with large competencies to enjoy greater competitive
advantage. As a a result of this, the production cost is high for the new entrants. Product
differentiation is according to the standards, which is effective for catering to the specific
needs, demands and requirements of the customers (Gas, 2017). Advertisements cater to the
customer services. Capital requirements and expenditures are also high because of the
research and development costs. Licensing and legal requirements are strict, which bars the
new entrants from entering into the arena where Louis Vuitton is a popular name.
Bargaining power of suppliers- Low
The suppliers are controlled by the brand through the regulations in the arena of
prices. The products supplied by the suppliers are very well according to the marketing and
business standards. However, they are less differentiated, which implies low switching costs
for the customers. The suppliers are also not a threat for the forward integration conducted by
the company (Gygli et al., 2018). The suppliers are the cornerstone for increasing the profit
margin of the company. Unless reasonable pricing is provided, the suppliers cannot be hired.
Raw material selection is entirely dependent on the company. Unsuitability results in switch
over, the costs of which is low.
Bargaining power of the buyers- Low

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The buyers have the option to selection from the number of suppliers, who are more
in number from the firms operated by the brand. The control over the prices is also low.
Although the product differentiation is higher, the buyers fail to find the alternative firms
producing the products, which they need. As the income is low, therefore, the pressure is
towards buying the products at lower rates (Hanson et al., 2018). This approach increases the
sensitivity towards prices. Preference towards quality enhances the frequency of the
purchases. Backward integration adversely influences the purchasing decisions and intentions
of the customers. Innovation and differentiation is one of the ways in which the bargaining
power of the buyers can be influenced.
Threat of substitutes – Low
The substitute products in the market of operation for Louis Vuitton are few, which
are produced by the industries whose earning profit is low. The high quality substitutes,
which are available, are very expensive, reflecting the low switching possibilities in case of
the buyers. High quality innovation is needed for attracting the customers. The products need
to be levied at low prices, which would be effective in terms of expanding the customer rates.
Product differentiation is one of the techniques through which the brand can adopt for
enhancing the unique selling proposition (Kanagal, 2015). Need analysis would also be
assistance in terms of understanding the specific tastes and preferences of the customers.
Competitive rivalry- Moderate
The competitors in the market of operation to Louis Vuitton are few, which are large
in size. Competitive policies are implemented in the transactions done by the firms. The
competitive rivalry are not that intensified, which is reflected fro, the market share. The
fashion industry brands are growing every year, which implies less intensification in the
competition towards emerging as market leaders. Moreover, the fixed costs are high, which

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implies the reduction in the price for coping up with the demands. The products of the brand
are highly differentiated and unique, where imitability is not possible. Products need increase
in the capacity through increments, which is exclusive to the core competencies and
capability of the brand (McDonald & Thorpe, 2016).
Market segmentation
Louis Vuitton mainly makes use of demographic and psychograohic segmentations.
In case of the demographic segmentation, the brand targets the aristocratic segments of the
society, who have high affordability and spending power. The essential elements of this are
creativity, exclusive design, craftsmanship and premium pricing, which enhance the
standards and quality of the products. These elements add to the status symbol of the
customers, reflecting the psychological benefits of the purchase (Louisvuitton.com, 2020).
The target audience in this context are the men and women from the age group of 18-60
years. These are the people with the disposable incomes.
Psychographic segmentation is used for reflecting the lifestyle and motives for
identifying the target market, social status and wealth. In this segmentation, the customers are
perceived as the carriers with status relative motives in terms of making the purchases. The
high profile fashionistas are contacted for fulfilling the specific tastes and preferences of the
customers. Setting new trends in fashion is the ultimate goal of this type of segmentation.
Theme based production is done for attracting more and more customers.
Along with this, geographic segmentation is also practised by the brand in terms of
targeting the densely populated areas like China, India Brazil and others. The aim is to
enhance the awareness of the audience about the means of enhancing the essence of luxury
through their appearance (Louisvuitton.com, 2020). Apart from this, mention can be made of
the usage rate segmentation, which is based on the consumption patterns of the customers.
The emphasis is on the heavy users with high spending capacity. Buyer information is