...Performed at: Société des Ateliers Louis Vuitton Supervisor(s): Florence Laprade Société des Ateliers Louis Vuitton 36100 Issoudun - France Peter Almström Department of Materials and Manufacturing Technology Chalmers University of Technology, SE-412 96 Gothenburg Marie-Agnès Girard Ecole Nationale Supérieure des Mines de Saint Etienne 42023 Saint Etienne - France Examiner: Bertil Gustafsson Department of Materials and Manufacturing Technology Chalmers University of Technology, SE-412 96 Gothenburg Material flow improvement Léo Belime © Léo Belime 2010 Diploma work no 35/2010 Department of Materials and Manufacturing Technology Chalmers University of Technology SE-412 96 Gothenburg Sweden Telephone + 46 (0)31-772 1000 Chalmers Repro Service Gothenburg, Sweden 2010 Material flow improvement Léo Belime Department of Materials and Manufacturing Technology Chalmers University of Technology Contents Abstract ............................................................................................................................. i Acknowledgements........................................................................................................... ii Foreword ......................................................................................................................... iii Introduction ...................................................................................................................... 1 Louis Vuitton and the LVMH group .................
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...Introduction In this assignment I will make a research based on any organisations of my choice regarding Total Quality Management (QTM). I will outline and analysis how it has introduced and developed a complete system of TQM management. I will research quality control, lean manufacturing, ISO 9000, Six Sigma and a customer focused culture. Also I will discuss if Total Quality Management (QTM) has been carried out successfully from the organisations and talk of the impact it has to the organisations on my conclusions. What is Quality? For a lot of, quality proposes the advantage of design, materials, or workmanship in a manufactured goods or facility. You strength contemplate of high-end products comparable Mercedes, Gucci, or even Apple. Though, quality is energetic to each commercial, even if the target client is by the low-end or form market. “Dr. W. Edwards Deming, innovator of quality development approaches, speaks that the client's meaning of quality is the lone one and only that substances. Consequently, what must quality define to you?” In place of centuries, Ford Motor Business needs repeated us: Quality is job one. The situation actually must be the goalmouth for altogether of us. Promise to quality reproduces our individual standards and eventually controls whether we can contest in the willing of commercial. Consumers are the last justice. Occupational decision-making Jack Welch, supposed, “The worth period is upon us. If you can't vend top-quality manufactured...
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...In addition to the supply chain map drawn above: • Suppliers are limited and highly specialized • Production: • Louis Vuitton is keeping most of the manufacturing activities because of the value perceived by the customer in the “made in France” label. • 3,600 highly skilled employees and sophisticated manufacturing technology • Production planning based on volumes forecasted by the logistics department • Warehouse & Distribution: 2 • Centralization of the logistics for all plants (products manufactured in foreign plants are forwarded daily to Cergy) 2. Management of the Supply Chain analysis Problems related to Louis Vuitton supply chain • Product availability is low, for good or for bad, this has to be counted as an issue because clearly they are missing out on potential sales/profits just because the retailers don’t have any goods to sell even though the demand is strong. There is also a lack of anticipation during the periods of high demand o This non-availability problem is probably heaving a negative effect on LV’s reputation too o Loosing customers due to lack of stock and unavailability of some products: 8% disappointed and 70% of these are lost for good. • The Logistics Center is facing a tight production capacity issue o Due to high manufacturing times, and owners placing larger order it is causing compounding problems for the logistics department o The larger orders are taking precedent over the smaller orders in stores with minimal storage...
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...2. Dysfonctionnements dans le management de la Supply Chain et recommandations Dysfonctionnements dans le management de la Supply Chain : * Mauvaise circulation de l’information, désaccords stratégiques entre les directeurs de service ; * Fréquence des ruptures de stocks ; * Demande prévue sous-évaluée par rapport à la demande effective, crée la rareté d’une certaine manière mais c’est un manque à gagner énorme. (crainte des invendus) ; * Structure lourde (Gros centre logistique, entrepôt central) permet un contrôle et gage de qualité mais perd en flexibilité ; * Délais dans le traitement des commandes : Points de vente font des commandes seulement 1 fois par mois sachant que les délais d’approvisionnement sont de 6 à 8 semaines ; * Délais et coût du transport : 3 semaines en bateau et/ou €1500/tonne en avion pour satisfaire les ruptures de stock ; * Incohérence entre le mode production artisanal, long et coûteux et le lancement accéléré de nouveaux produits qui demande de la réactivité et de la flexibilité. Recommandations : * Accroitre l’indépendance des entrepôts, dans leur prise de décision, commandes à la base ; * Insister sur la circulation de l’information entre les différents points de vente, traitement direct de l’information entre les points de vente et les sites de production pour une meilleure réactivité ; * Refonder la structure de la Supply Chain de façon à ce que la Demande soit l’instigateur du renouvellement...
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...Louis Vuitton in Japan Case Study Student’s Name Instructor’s Name Course Title Date What has made LV’s business model successful in the Japanese Luxury Market? Japanese luxury market has often placed the greater deal about value on quality along with exclusivity of the products that are being offered as well as it is the critical success factor for the luxury brands within Japan. Fact, which Louis Vuitton has regularly concentrated on enhancing the quality of their product portfolio, has been the important element towards brand’s success in between Japanese luxury market. What made LV’s business model successful within Japanese Luxury has been most important because of the aggressive marketing strategy that they have adopted in the entire nation. Rather with its heritage, “savoir-faire à la française”, constant innovation, quality of its products along with the offered lifetime repair guarantees, LV’s has managed making their Japanese consumers loyal to brand along with succeeded to build their empire within the Japan. What are the opportunities and challenges for LV in Japan? Opportunities Features of evolution of ageing Japanese population might be the option for Louis Vuitton, like wealthier families along with old women with enhanced buying power, however establishing the Internet business, application for the smart phones and also expending the newer range of products for men as well as kids might be next step for enhancing growth within the...
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...Interact with Society: An investigation into the performance of Louis Vuitton Founded in 1854, Louis Vuitton Moët Hennessy (LVMH) had become the world's largest luxury fashion house brand group and manage to gain sales revenue of 20,320 million euros in 2010 to 23, 659 million Euro in 2011 and 28, 103 million Euro in 2012 (Jin, 2012). Nowadays in business world, the survivability of business depends on how it interact with the society. The way of a company behave toward the society and environment is the key for a company to achieve profitability and maintain good reputation as small action give a big impact (Hartman, 2005). In this case, a company good intention will frequently shadowed by it bad steps in damaging society even it is unintentionally done. In contrast for that, Louis Vuitton had practiced their good intention by launching environmental department in 1992 in order to preserve the nature thus helping Louis Vuitton to produce high quality product (LVMH launches its own Green Week, 2012). Behind the scene, Louis Vuitton also increases their carbon emission by 25% in 2012 while manage to increases their revenue by 19% in 2012 (LVMH, 2012). In the same time, Louis Vuitton keep telling the society about their policy of not allowing child labor (LVMH: Supplier’s Code Of conduct, 2014) but unfortunately, it just another spin doctoring to hide another mistake they had done. This would remark that Louis Vuitton secretly brings the negative impact to environment and to the...
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...STUDIES 2009 NO.45 Luxury Brand Strategy of Louis Vuitton - Details of Marketing Principles by Shin'ya Nagasawa* Abstract: By systematicallybreaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word "brand" to refer to the likes of Coca-Cola and McDonald's, there is a vast gulf between these brands and the luxury brands we explored in the previous book. In researchers' brand management theories, one rarely finds mention of representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although * Shin'ya Nagasawa is a professor of MOT (Management of Technology) at Waseda Business School, Graduate School...
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...Cas Vuitton Question 1: Représenter la Supply Chain de l’entreprise Louis Vuitton Malletier en y faisant clairement figurer les flux de matière et les délais. Ci-après. Fabrication prêt à porter, accessoire, souliers Fabrication prêt à porter, accessoire, souliers USA 1 atelier USA 1 atelier Sous-traitants Sous-traitants Problème de capacité de production lorsque stock non disponible Problème de capacité de production lorsque stock non disponible Stockés 4,5 mois Stockés 4,5 mois Stockés 1 mois Stockés 1 mois 2 jours 2 jours 120 Sacs / jour 120 Sacs / jour Retours de Produits finaux dont 2% seront détruits Retours de Produits finaux dont 2% seront détruits Stockés 2,5 mois Stockés 2,5 mois 6 – 8 semaines 6 – 8 semaines Cuir, toile Cuir, toile Problème d’augmentation du stockage Problème d’augmentation du stockage Problème de Place de stockage (20%) et de vente (80%) Problème de Place de stockage (20%) et de vente (80%) Problème d’augmentation du cout des transports Problème d’augmentation du cout des transports Problème de production non vendue Et de stock non dispo Problème de production non vendue Et de stock non dispo Problème de stock non disponible Problème de stock non disponible Problème de stock non disponible Problème de stock non disponible Clients finaux Clients finaux Magasins du même secteur géographique Magasins du même secteur géographique...
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...A strategic Analysis The Burberry Company (Burberry Group plc); Women’s Wear Strategic Business Unit Word Count: 2,919. Executive summary This paper offers a strategic outlook of the Burberry group plc (Burberry) company, a major manufacturer and distributor in the UK dealing with luxury clothing and other fashion accessories. The analysis unmasks the strategy behind the company being a pacesetter in the fashion industry especially since commencing online distribution in the UK in 2006. To achieve this, the paper applies the strategic analysis through; PESTEL analysis, SWOT analysis, value chain analysis, Porter’s three generic strategies and five forces of the market. The company has for centuries cemented its activities and most recently it took direct control of distribution of its products by offering licenses to distributors. On analysis of the UK’s fashion industry, various factors emerge as propagating the success of the company. Majorly the success is pinched on; a stable political environment in the United Kingdom, a fresh pool of design talents available to recruit from and favorable government policies regarding the domestic industries. However there are factors such as fierce competition from within the economy, government tax policies on retailers and loss of designer talents to other countries due to fiscal policies that threat to cripple the fashion industry. Additionally, despite the firm being among the trend setter in women’s wear, the women’s fashion...
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...A strategic Analysis The Burberry Company (Burberry Group plc); Women’s Wear Strategic Business Unit Word Count: 2,919. Executive summary This paper offers a strategic outlook of the Burberry group plc (Burberry) company, a major manufacturer and distributor in the UK dealing with luxury clothing and other fashion accessories. The analysis unmasks the strategy behind the company being a pacesetter in the fashion industry especially since commencing online distribution in the UK in 2006. To achieve this, the paper applies the strategic analysis through; PESTEL analysis, SWOT analysis, value chain analysis, Porter’s three generic strategies and five forces of the market. The company has for centuries cemented its activities and most recently it took direct control of distribution of its products by offering licenses to distributors. On analysis of the UK’s fashion industry, various factors emerge as propagating the success of the company. Majorly the success is pinched on; a stable political environment in the United Kingdom, a fresh pool of design talents available to recruit from and favorable government policies regarding the domestic industries. However there are factors such as fierce competition from within the economy, government tax policies on retailers and loss of designer talents to other countries due to fiscal policies that threat to cripple the fashion industry. Additionally, despite the firm being among the trend setter in women’s wear, the women’s fashion...
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...The Leading Luxury Brands 2008 Creating and managing brand valueTM The top 15 luxury leaders in 2008 Lessons from the leading luxury brands What is the future for luxury brands? The Leading Luxury Brands 2008 Introduction In marketing folklore, luxury brands were said to be immune to economic downturns. Their audience of über-wealthy loyalists meant they remained protected during tough economic times. Furthermore, as the global economy prospered, luxury brands attracted new segments of customers who were Jez Frampton is Interbrand’s Group Chief Executive. Jez leads the Interbrand network, shaping strategy and growth for its 36 worldwide offices and enhancing its brand value generating services to a prestigious roster of clients. its perfume line – proves that cutting back appears unavoidable even for a leading luxury brand. But at what long-term cost? While only twenty years ago, such measures may have slipped by unnoticed, the information age makes such moves too newsworthy, introducing new risks to luxury brands’ long-term value. Despite the difficulties of these times, the Leading Luxury Brands of 2008 must continue to stand strong. They need to remember what has made them endure over the years and they must continue to demonstrate the same degrees of determination, conviction, and creativity. suddenly able to afford a wealthier lifestyle. It should be no surprise then, that we saw so many luxury brands –Tiffany & Co. as an example – rush to make themselves...
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...Executive Summary The purpose of this individual paper is to examine the success of Louis Vuitton (LV) in Japan, and identify the current phenomena in the market. Luxury is a business model of LV in accelerating Japanese consumers. It is followed by great execution of marketing principles in term of Product, Distribution, Promotion, and Price. However, the modern life of consumers has created change in their behavior. It has become a serious issue that challenges LV’s success in the future. In constructing this paper, a review of relevant journal, newspaper, academic publications, and online resources were used. Consumer behavior change is identified as a significant influence that challenges future performance of LV in the market. LV must seriously think on how to strategically maintain its competitive advantages in the market. This paper recommends LV to enhance its luxury existence in the heart of potential customers. It can be done through extensively enhancing customer relationship, and the main concept that should be implement is strategic alignment between its current marketing programs and Research & Design functions to support high quality production, which accommodate consumers’ expectations. Table of Contents EXECUTIVE SUMMARY………………………………………………………………………....i 1.Introduction ..................................................................................................................... 1...
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...Luxury Brand Strategy of Louis Vuitton Shin'ya NAGASAWA* * Graduate School of Commerce, Waseda University Tokyo, Japan, nagasawa@waseda.jp Abstract: By systematically breaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a busi ness m odel for success. Showing that the current rise of Louis V uitton is not a coincidence but rath er so mething ach ieved th rough strat egy will su rely b e of in terest to firm s struggling with lack of brand power or those looking to boost brand power. Key words: luxury brand, brand management, Louis Vuitton. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word “brand” to refer to the likes of Coca-Cola and McDonald’s, there is a vast gulf between these brands and the luxury brands we e xplored i n t he p revious b ook. I n researchers’ brand m anagement theories, one r arely fi nds m ention o f representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although small in scale [1]. This...
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...Luxury Brand Strategy of Louis Vuitton Shin'ya NAGASAWA* * Graduate School of Commerce, Waseda University Tokyo, Japan, nagasawa@waseda.jp Abstract: By systematically breaking down th e strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for l uxury brands as well as to derive a busi ness m odel for success. Showing that the current rise of Louis V uitton is not a coincidence but rath er so mething ach ieved th rough strat egy will su rely b e of in terest to firm s struggling with lack of brand power or those looking to boost brand power. Key words: luxury brand, brand management, Louis Vuitton. 1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars also use the word “brand” to refer to the likes of Coca-Cola and McDonald’s, there is a vast gulf between these brands and the luxury brands we e xplored i n t he p revious b ook. I n researchers’ brand m anagement theories, one r arely fi nds m ention o f representative luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although...
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...Tod’s: Building and Developing a Contemporary Luxury Brand © SDA Bocconi1 1. The Tod’s Group From Diego Della Valle’s words stems the legitimate pride of an entrepreneur who, although coming from a family active in the high quality shoe manufacturing since the beginning of the last century, did not inherited an already established global brand nor a well entrenched market positioning for its products. Rather, he was able to transform a medium-sized family business dealing with third-party shoe manufacturing into a first-tier player in the global luxury arena. Today, Tod’s is a multi-brand luxury company active in footwear, leather goods and apparel, with three well-established brands: Tod’s and Hogan in luxury footwear and leather goods, and Fay, in tailored apparel. Diego Della Valle belongs to Della Valle family, active in the business of high quality shoes since the beginning of the 20th century, within the world-known shoe-making industrial cluster located in the Marche region, in central Italy. In the Seventies, the company expanded through both licensing activity for Krizia, Fendi, Romeo Gigli, Gianfranco Ferré, and by developing its own products. “My intuition was to create a bond with designers, producing shoes for their fashion shows. Thanks to the positive feedback in editorials, I gained credibility on the market.”2 At the beginning of the ‘80s, the family decided to focus on its own brands and – after an in- depth marketing study and a long phase of design and...
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