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Lv Presentation

  1. 1. LOUIS VUITTON<br />Lecturer:<br />Mr. Justin Kung<br />Group presentation:<br />Nguyen Phuong Anh (Charlotte)<br />Nguyen Thi My Dung (Megan)<br />13/11/2009<br />
  2. 2. Contents<br />Louis Vuitton Introduction<br />Marketing Issue<br />Target Market<br />Internal & External Influences <br />Extended Problem Solving (EPS)<br />Summary Marketing Strategy<br />Recommendation<br />
  3. 3. Introduction<br />1854<br />The merger of LV with famed French spirit, champagne, and perfume group Moet Hennessy<br />1987<br />Louis Vuitton (LV)<br />First product:<br />Monogram Canvas<br />Paris<br />Louis Vuitton Moet Hennessy (LVMH)<br />A portfolio of 50 luxury brands<br />
  4. 4. Introduction<br />Source: www.lvhm.com, Annual Report 2009 (Accessed: 3rd Nov 2009)<br />
  5. 5. “a truly unique concept that allies shopping, luxury, leisure, art, and culture” <br />Source: http://www.louisvuitton.com/en/flash/index.jsp?direct1=home_entry_gb0 (Accessed: 1st Nov 2009)<br />
  6. 6. Marketing Issue<br />
  7. 7. Ranking BrandGlobal Ranking - Luxury Product Ranking<br />Source: http://www.interbrand.com/best_global_brands.aspx?year=2009&langid=1000 (Accessed: 2nd Nov 2009)<br />
  8. 8. Revenue<br />Louis Vuitton $21.6m<br />Gucci $8m<br />Hermes $4m<br />Prada $3.5m<br />Quality<br />How can LV handbags still stand in the top of evoked set in the consumer mind?<br />
  9. 9. Target Market<br />
  10. 10. Target segment<br />Demographics: “Who?”<br />Gender: Woman in Singapore<br />Age: 35 - 45<br />Social class, occupation an income: Woman in upper class<br /><ul><li>Socially prominent “old families”
  11. 11. Major corporate executive</li></ul>Psychographic: “Why?”<br />Self-concept “Who are they in the relative society?”<br />Personality<br />Lifestyle<br />
  12. 12. Internal & External<br /> Influences<br />
  13. 13. Need Recognition<br />Environment Influences<br /><ul><li>Culture
  14. 14. Social Class
  15. 15. Family
  16. 16. Situation
  17. 17. Personal Influences</li></ul>Information Search<br />Brand Evaluation<br />Individual Differences<br /><ul><li>Consumer Resource
  18. 18. Motivation & Involvement
  19. 19. Knowledge
  20. 20. Attitudes
  21. 21. Lifestyle</li></ul>Purchase<br />Outcome<br />Source: Blackwell, Miniard and Engel (2001) p.83<br />
  22. 22. Social class<br />Social class is considered at 3 features:<br />Income<br />Occupation <br />Education attainment.<br />Social stratification : relative standing, power or control in the group.<br />
  23. 23. Pricing Strategy<br />Profits<br />Profits<br />Profits<br />Average Price<br />Costs<br />Costs<br />Costs<br />Costs Based<br />Differentiator<br />Average Player<br />Reference: Porter’s Generic Strategies<br />
  24. 24. Lifestyle<br />Materialism<br />Dandy<br />Suspicious<br />Forgotten<br />Rocker<br />Romantic<br />Prudent<br />Team-mate<br />Business<br />Defensive<br />Settlement<br />Movement<br />Scout<br />Moralist<br />Protester<br />Gentry<br />Pioneer<br />Rigorous<br />Citizen<br />Idealism<br />Source: Michael, M., Bamossey, G., Askegaard, S. and Hogg, M (2006) Consumer Behaviour. European Perspective 3rd edn. Prentice Hall, p568. <br />
  25. 25. Product Strategy in Maturity Stage<br />Style Improvement<br />Source: http://www.louisvuitton.com/en/flash/index.jsp?direct1=home_entry_gb0 (Accessed: 1st Nov 2009)<br />
  26. 26.
  27. 27. Motivation and high involvement<br />Psychological perspective –customer’s need <br />motivation direction by delivery certain benefits<br />
  28. 28. Motivation and high involvement<br />
  29. 29. Involvement<br />What Really Drives Customers purchasing Louis Vuitton’s products?<br />
  30. 30. Figure 2: Emotion Curve—Louis Vuitton Shopping Experience: Mainland China Customers with Purchases in Last Visit<br />Location & Store Exterior<br />Product<br />Payment & Gift-wrap<br />Shopping Environment<br />Exclusive Felling<br />Source: http://www.customerthink.com/article/what_drives_customers_buy_louis_vuitton <br /> (Accessed: 1st Nov 2009) <br />
  31. 31. Place Strategy<br />
  32. 32. Attitude<br /><ul><li>Balance theory</li></li></ul><li>Source: http://www.louisvuitton.com/en/flash/index.jsp?direct1=home_entry_gb0 (Accessed: 2nd Nov, 2009)<br />
  33. 33. Extended Problem Solving<br />(EPS)<br />
  34. 34. Need Recognition<br /><ul><li>Internal: consumer’s past experience, characteristics..
  35. 35. External: environmental influence, marketing stimuli</li></ul>Information Search<br />Brand Evaluation<br />Purchase<br />Outcome<br />
  36. 36. PR Campaign – Human Activities<br />
  37. 37. Need Recognition<br /><ul><li>Internal: consumer’s past experience, characteristics..
  38. 38. External: environmental influence, marketing stimuli
  39. 39. Internal: personal ones, existing knowledge, ability to retrieve stored knowledge
  40. 40. External: commercial sources</li></ul>Information Search<br /><ul><li>Elegant
  41. 41. Best quality
  42. 42. Fashionable
  43. 43. Durable
  44. 44. Famous brand name</li></ul>Brand Evaluation<br />Purchase<br /><ul><li>Outlet selection: convenient location
  45. 45. Different services
  46. 46. Customer satisfaction
  47. 47. www.ilovelv.com</li></ul>Outcome<br />
  48. 48. Summary <br />Marketing Strategy of <br />Louis Vuitton<br />
  49. 49. High mark-up price<br />Never cut-down price<br />Advertising<br />PR Campaign<br />Sales Personnel<br />Pricing Strategy<br />Promotional<br />Strategy<br />Style Improvement<br />A passionate of unique architecture<br />Product Strategy<br />Place Strategy<br />
  50. 50. Recommendation<br />Service improvement - Voice of the Customer from Louis Vuitton Shoppers<br />Cut the price to maximize sales due to the recession period<br />What do you like the least at Louis Vuitton?<br />Global Customer Experience Management Organization<br />
  51. 51. Thank you for your attention!<br />Thank you for your attention!<br />Thank you for your attention!<br />Thank you for your attention!<br />

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