1. LOUIS VUITTON Lecturer: Mr. Justin Kung Group presentation: Nguyen Phuong Anh (Charlotte) Nguyen Thi My Dung (Megan) 13/11/2009

2. Contents Louis Vuitton Introduction Marketing Issue Target Market Internal & External Influences Extended Problem Solving (EPS) Summary Marketing Strategy Recommendation

3. Introduction 1854 The merger of LV with famed French spirit, champagne, and perfume group Moet Hennessy 1987 Louis Vuitton (LV) First product: Monogram Canvas Paris Louis Vuitton Moet Hennessy (LVMH) A portfolio of 50 luxury brands

4. Introduction Source: www.lvhm.com, Annual Report 2009 (Accessed: 3rd Nov 2009)

5. “a truly unique concept that allies shopping, luxury, leisure, art, and culture” Source: http://www.louisvuitton.com/en/flash/index.jsp?direct1=home_entry_gb0 (Accessed: 1st Nov 2009)

6. Marketing Issue

7. Ranking BrandGlobal Ranking - Luxury Product Ranking Source: http://www.interbrand.com/best_global_brands.aspx?year=2009&langid=1000 (Accessed: 2nd Nov 2009)

8. Revenue Louis Vuitton $21.6m Gucci $8m Hermes $4m Prada $3.5m Quality How can LV handbags still stand in the top of evoked set in the consumer mind?

9. Target Market

11. Major corporate executivePsychographic: “Why?” Self-concept “Who are they in the relative society?” Personality Lifestyle

12. Internal & External Influences

14. Social Class

15. Family

16. Situation

18. Motivation & Involvement

19. Knowledge

20. Attitudes

21. LifestylePurchase Outcome Source: Blackwell, Miniard and Engel (2001) p.83

22. Social class Social class is considered at 3 features: Income Occupation Education attainment. Social stratification : relative standing, power or control in the group.

23. Pricing Strategy Profits Profits Profits Average Price Costs Costs Costs Costs Based Differentiator Average Player Reference: Porter’s Generic Strategies

24. Lifestyle Materialism Dandy Suspicious Forgotten Rocker Romantic Prudent Team-mate Business Defensive Settlement Movement Scout Moralist Protester Gentry Pioneer Rigorous Citizen Idealism Source: Michael, M., Bamossey, G., Askegaard, S. and Hogg, M (2006) Consumer Behaviour. European Perspective 3rd edn. Prentice Hall, p568.

25. Product Strategy in Maturity Stage Style Improvement Source: http://www.louisvuitton.com/en/flash/index.jsp?direct1=home_entry_gb0 (Accessed: 1st Nov 2009)

27. Motivation and high involvement Psychological perspective –customer’s need motivation direction by delivery certain benefits

28. Motivation and high involvement

29. Involvement What Really Drives Customers purchasing Louis Vuitton’s products?

30. Figure 2: Emotion Curve—Louis Vuitton Shopping Experience: Mainland China Customers with Purchases in Last Visit Location & Store Exterior Product Payment & Gift-wrap Shopping Environment Exclusive Felling Source: http://www.customerthink.com/article/what_drives_customers_buy_louis_vuitton (Accessed: 1st Nov 2009)

31. Place Strategy

33. Extended Problem Solving (EPS)

35. External: environmental influence, marketing stimuliInformation Search Brand Evaluation Purchase Outcome

36. PR Campaign – Human Activities

38. External: environmental influence, marketing stimuli

39. Internal: personal ones, existing knowledge, ability to retrieve stored knowledge

41. Best quality

42. Fashionable

43. Durable

45. Different services

46. Customer satisfaction

47. www.ilovelv.comOutcome

48. Summary Marketing Strategy of Louis Vuitton

49. High mark-up price Never cut-down price Advertising PR Campaign Sales Personnel Pricing Strategy Promotional Strategy Style Improvement A passionate of unique architecture Product Strategy Place Strategy

50. Recommendation Service improvement - Voice of the Customer from Louis Vuitton Shoppers Cut the price to maximize sales due to the recession period What do you like the least at Louis Vuitton? Global Customer Experience Management Organization

51. Thank you for your attention! Thank you for your attention! Thank you for your attention! Thank you for your attention!