...APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive Matrix20 Appendix 10: Cross Business Strategic Fits20 Appendix 11: Evaluating the Strategy of a Diversified Company21 Appendix 12: LVMH's Timeline of Mergers and Acquisitions24 9.0 REFERENCES25 1.0 Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH face and establish some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model, SWOT analysis and PESTEL. It was found that the key strategic issues that LVMH face centred on diversification and vertical integration. A number of strategies have been proposed to offer some recommendations to LVMH, they namely in restructuring their retail sector, considering the concept of moderate diversification and focusing on the human resources side of acquisitions and mergers. 2.0 Introduction This report is based on the analysis of a case study 27 titled: LVMH's Diversification Strategy into Luxury Goods. The scope of this report is limited to the data contained...
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...demand details 3.4 Technology needs 4.0 Target Market 7 4.1.1 Target Market Segment Strategy 4.1.2 Market Needs 4.1.3 Market Trends 4.2 Industry Analysis 4.2.1 Industry Participants/Key Players 4.2.2 Main Competitor analysis 5.0 Strategic and Implementation Summary 10 5.1 Marketing Strategy 5.2 Pricing Strategies 5.3 Promotional Strategies 5.4 Distribution Patterns 5.5 Marketing Program 5.6 Sales Strategies 5.7 Sales Forecast 5.8 Sales Program 6.0 Web Plan Summary 13. 6.1 Website Marketing Strategy 6.2 Development requirement Reference 15 1.0 Executive Summary 1.1 Objective This paper will tend to provide a brief introduction of Louis Vuitton, the famous and high price and high reputation luxury brand product originated from France. Later, this paper will further investigate on the information regarding the company’s products and services (product mix) and its marketing analysis and industry analysis in general. The strategies analysis and implementation of the strategies will be demonstrated and website marketing strategies by the company will be discussed as well after the implementation of the strategies plan. Lastly, a brief conclusion will be provided to summarize the entire marketing plan for LVMH. 1.2 Vision and Mission LouisVuittonMoët Hennessy group,LVMH, would represent the most refined qualities of so called "Art de Vivre" in France and around the world. LVMH will have to constantly with the balance and both elegance...
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...Moët Hennessy Louis Vuitton in Luxury Goods - World October 2010 Downloaded from www.warc.com Scope of the Report Luxury Goods: LVMH © Euromonitor International Scope Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised Learn More To find out more about Euromonitor International's complete range of business intelligence on industries, countries and consumers please visit www.euromonitor.com or contact your local Euromonitor International office: London +44 (0)20 7251 8024 Dubai +971 4 372 4363 Chicago +1 312 922 1115 Cape Town +27 21 552 0037 Singapore +65 6429 0590 Santiago +56 2 915 7200 Shanghai +86 21 6372 6288 Sydney +61 2 9275 8869 Vilnius +370 5 243 1577 Downloaded from www.warc.com 2 Luxury Goods: LVMH © Euromonitor International Strategic Evaluation Market Assessment Designer Clothing and Footwear Luxury Accessories Fine Wines/Champagne and Spirits Super Premium Beauty and Personal Care Luxury Jewellery and Timepieces Brand Strategy/Operations Recommendations Downloaded from www.warc.com 3 Strategic Evaluation Luxury Goods: LVMH © Euromonitor International ...
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...consumers demanding luxury at every level. Within the luxury industry, the jewellery sector is largest with global retail sales amounting to $150 billion. Tiffany & Co. currently is the leader within the jewellery industry. Tiffany recognized the growing number of consumers demanding luxury at mid-level prices and decided to use this trend to its advantage by introducing items at a lower cost to be more appealing to these middle-income families. Upon realizing the strength of its brand and the image its blue box portrays, Tiffany also plans to continue launching new product lines, taking advantage of the growing popularity of branding among jewellery consumers today. However, with all of Tiffany’s current success, some analysts worry that the company may be devaluing their luxury image with the introduction of lower cost products, as this contradicts their “exclusiveness”, which is part of their brand. In order for Tiffany to not dilute its luxury image with its attempts to make the blue box accessible to the lower end the company must focus on assuring customers that the quality of their products have not lessened even though the cost has. This proposal discusses the fine jewellery sector within the luxury goods industry, focusing on Tiffany & Co.’s (“Tiffany”) position among its strongest competitors and fine jewellery consumers. The paper opens with an overview of the specialty retail industry and current trends within the specific sector of fine jewellery. The document...
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...CRITERIA Use different theories to EXPLAIN the behaviour of the young towards luxury products. INTRODUCTION This report will analyse the behaviour of young adults towards luxury products. With the use of different theories the attitude, culture and behaviour of young adults will be studied. Two types of theories will be used including both psychological and sociological principles. A conclusion will follow the main body to help analyse, ‘the behaviour of the young towards luxury products’. MAIN BODY In the current society, many young people are often influenced by role models to always be part of the trend and the latest fashion. Big high street brands ensure that their designer labels are always on people’s minds when they are out shopping. The aim is to try getting young people to always buy luxury products. Luxury products are goods which are usually not considered to be essential and are associated with affluence. These products define a clear difference between the social class and the elite, and therefore there is a high demand for these products as many young people wish to be seen in the upper-class. A definition of luxury products has been shown below, ‘A luxury good is a good for which demand increases more than proportionally as income rises’ [www.google.co.uk]. These products range from perfumes and jewellery to clothes and handbags. Luxury products are available throughout the world but the price paid for them is usually steeper than something from a smaller...
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...of Entry of Foreign Retailer………………… India as a Manufacturing Hub for Global Luxury Brands Indian Luxury Market Indian Luxury Product Market- A Snap Shot………………… The Luxury Consumer Profile Target Groups for Luxury Brands………………… The Competitive Trend Creating an International Luxury Fashion Brand……… Key issues facing the industry Major Cost Component………………… Gucci as a Company Gucci’s goals and values………………… Philosophy………………… Gucci as a Brand………………… Marketing Distribution Channel………………… Revenue Breakdown Prices in Indian Market The Bumpy Road? . . 2010 ANNEXURES I II III IV V VI VII VIII IX X XI XII XIII KEY DATES………………… INDIA VS CHINA AS A MANUFACTURING HUB……………… THE INDIAN WEALTH LEAGUE………………… SHOW ME THE MONEY- WELATH DEFINITIONS…………… HNWI POPULATION GROWTH RATE 2007 (%)…………… INDIA’S ‘BRAND FREAKS’………………… 28 29 30 30 31 32 33 34 35 36 36 37 NO. OF CATEGORIES VS MARKET IMAGE………………… GUCCI GROUP DIVISIONS………………… DISTRIBUTION CHANNELS………………… REVENUES BY CHANNEL………………… GROUP REVENUES BY REGION………………… CAGR 1994- 2001………………… PPR CONSOLIDATED 2004…… FIGURES AT YEAR END 37 . . 2010 GUCCI Fashioning India 1. Introduction The House of Gucci, or simply Gucci is one of the more established premium fashion brands in the world. Its success worldwide has depended largely on its effective marketing strategies and a wide product range. Founded in Florence in 1921, Gucci as a leading luxury brand has been created assiduously over a period of many years. Helping in...
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...Introduction: Introducing a new product or service into a foreign market is a significant business achievement. As a matter of fact, there are a few things that companies have to face when it comes to globalization. This essay will deal with luxury products, and more particularly with high-end jewellery from the French brand Cartier. These products will be launched within the Chinese market, as it is close to become the largest luxury market in the world. In order to make this project as successful as possible, this essay will be divided into two parts. On the one hand, we will be analysing the marketing environment of the Chinese market by identifying major market opportunities. Also, the selection of a suitable target market for Cartier jewellery products will be made, and we will recommend which aspects of the product’s international marketing mix strategy would require adaptation. On the other hand, we will critically examine the notions of standardization and adaptation of the international marketing mix. 1. Market selection & Cultural Research and Impact on International Marketing Mix Strategy a. Market opportunities: In order to justify the choice of the Chinese market for Cartier jewellery products, 4 market opportunities will be identified. The first three ones will be dealing with socio/cultural aspects whereas the last one will be rather based on an economic aspect. With more than 1.3 billion of people, China has about 18 thousand billionaires, 440 thousand...
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...Vuitton in India Retail Marketing Strategy 1. Assess the opportunities and threats for Luxury goods in India. Is there a product- market fit for luxury goods in India, in particular, given that India is still a low- income economy overall? A. Opportunities 1-The first mover advantage amongst the luxury goods segment. Also the historic business association with the LV brand create a strong brand recall in this segment. 2-The emergence of of high net worth consumers which is the 2nd fastest growing in the world. Also the Ascendance of the Indian middle class segment where the number will grow to 583 million by 2025.Cocooners that are a part of the burgeoning mid-segment of the Indian consumer market numbering to 97 million have the potential to develop a a taste for luxury and become its loyal consumers. The so if luxury market was estimated to be about 4$ and expected to grow to 30$ billion by 2015 3-The emergence of the Indian consumers in the affluent space who perceive luxury products as a reward. 4- A large portfolio of luxury brands across various categories and price points therefore their ability to meet the emerging Consumer demands Threats 1- long gestation period. India is witnessing the rapid emergence of an upper middle class, but only a limited number of households can afford high-end aspirational products. 2- heavy custom duty on import of luxury products ranging between 30-70 percent. which means the products in India are more expensive than...
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...archive of this journal is available at www.emeraldinsight.com/0959-0552.htm IJRDM 33,4 256 The nature of parenting advantage in luxury fashion retailing – the case of Gucci group NV Christopher M. Moore and Grete Birtwistle Division of Marketing, Glasgow Caledonian University, Glasgow, Scotland, UK Abstract Purpose – Examines the application and nature of parenting advantage within the context of luxury fashion conglomerates principally as a means of understanding the synergistic benefits that accrue as a result of brand consolidation within the sector. Design/methodology/approach – Derived from company annual accounts, market analysts’ reports and other secondary sources, the paper delineates and evaluates the ten-year renaissance of Gucci brand from a company on the verge of bankruptcy to its emergence as the world’s second largest luxury group. Findings – Through the identification of intra-business group synergies, it is clear that the transference of brand management expertise and competence is the principal dimension of parenting advantage in the Gucci Group. Originality/value – From an examination of the Gucci Group’s brand management strategy, resource investments and business development activities, the paper proposes a model of the luxury fashion brand. This multi-dimensional model identifies the components of the luxury fashion brand, locates their inter-connections and illustrates how these collectively can provide and sustain advantage within this highly...
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...The Swiss Luxury Watchmaking Industry A general overview and a closer look at the celebrity endorsement and sponsorship communication strategy used by the leaders. Karine Gautschi January 2005 HEC Lausanne – Hautes Etudes Commerciales, MIM – Master of International Management Thesis Director, MIM: Professor Stéphane Garelli Expert, Omega: Jean-Pascal Perret Table of Contents 1 2 INTRODUCTION .............................................................................................................. 1 LUXURY WATCH INDUSTRY: A SHORT OVERVIEW .................................................. 3 2.1 2.2 3 DEFINITION AND PRICE SEGMENTATION ........................................................................ 3 LUXURY BRANDS AND THEIR POSITIONING ..................................................................... 5 ANALYSIS OF THE LUXURY WATCH INDUSTRY........................................................ 7 3.1 THREAT OF NEW ENTRANTS .......................................................................................... 9 Capital requirement ............................................................................................ 9 Brand recognition ............................................................................................... 9 Distribution........................................................................................................ 15 3.1.1 3.1.2 3.1.3 3.2 BARGAINING POWER OF BUYERS .........................................
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...The Swiss Luxury Watchmaking Industry A general overview and a closer look at the celebrity endorsement and sponsorship communication strategy used by the leaders. Karine Gautschi January 2005 HEC Lausanne – Hautes Etudes Commerciales, MIM – Master of International Management Thesis Director, MIM: Professor Stéphane Garelli Expert, Omega: Jean-Pascal Perret Table of Contents 1 2 INTRODUCTION .............................................................................................................. 1 LUXURY WATCH INDUSTRY: A SHORT OVERVIEW .................................................. 3 2.1 2.2 3 DEFINITION AND PRICE SEGMENTATION ........................................................................ 3 LUXURY BRANDS AND THEIR POSITIONING ..................................................................... 5 ANALYSIS OF THE LUXURY WATCH INDUSTRY........................................................ 7 3.1 THREAT OF NEW ENTRANTS .......................................................................................... 9 Capital requirement ............................................................................................ 9 Brand recognition ............................................................................................... 9 Distribution........................................................................................................ 15 3.1.1 3.1.2 3.1.3 3.2 BARGAINING POWER OF BUYERS .........................................
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...S w LOUIS VUITTON1 Manu Mahbubani wrote this case under the supervision of Professor Mary Crossan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2013, Richard Ivey School of Business Foundation Version: 2013-04-04 SYNOPSIS Moët Hennessy Louis Vuitton (LVMH) enjoyed double digit growth and healthy profitability in 2010 and 2011. A large part of this growth had been driven by its flagship group Louis Vuitton (LV). In 2011, LVMH announced that long-time LV CEO Yves Carcelle would be replaced at the end of 2012 by Jordi Constans, an executive from the French food product multinational Danone SA. However, after serving less than a month, Constans was replaced in December 2012 by Michael Burke, an LVMH insider who had been with the...
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...established in 1941, as a small family run leather goods manufacturing business. Over time Coach became recognized as a premium brand that provided superior quality leather goods in classic styles and in the 1980`s it opened exclusive Coach retail stores. Coach was sold to Sara Lee in 1985 and experienced rapid expansion. Coach`s product portfolio was expanded to include, accessories, luggage and briefcases and many more exclusive Coach stores and Boutiques were opened. By the late 1980`s there were 12 exclusive Coach retail stores as well as approximately 50 boutiques selling Coach products within lager department stores. While Coach initially grew it started to lag behind its competitors in terms of trendiness and sales began to decline. In 1996 Krakoff joined Coach and he was instrumental in positioning Coach as an ‘accessible luxury brand`` for it was understood that price was a source of competitive advantage for the brand in the luxury market. In October 2000, Coach went public under the name of Coach Inc. By 2005Coach`s revenues tripled and their share price increased more than 900 % since their IPO in 2000. The Organization Today: Coach is one of the most recognized fine accessories brands in the U.S. and in targeted international markets. Coach is a leading American marketer of fine accessories and gifts for women and men. Their product offerings include women’s and men’s bags, accessories, business cases, footwear, jewellery, sun wear, travel bags, watches and fragrance...
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...CHANEL’S BRAND STRATEGIE ANALYSIS REPORT | MKT100 ID: 5305678 TABLE OF CONTENTS Introduction 2 SWOT Analysis 3 Industry Analysis 4 Target Audience 4 Market Positioning 5 Product 5 Price 6 Place 7 Promotion 7 Advertising 8 Celebrity endorsements 8 Fashion show 8 Movie 8 Competitor Analysis 9 Gucci 9 Louis Vuitton 10 Hermès 10 Recommendation 13 Conclusion 14 References 15 Introduction According to Somma, M (2010), “Chanel is a brand known by everyone, wanted to by nearly all, and also tried and practiced by very few,” making it an appreciated asset. Double "C" logo has become the pride of the global fashion industry, is stand for the brand a woman on this world most like to have. Chanel is famous brands over 90 years’ experience, Chanel has a constantly elegant, artless, well-dressed style, she is expert in breaking through the traditional as initial as twentieth Century 40's to efficaciously "tied up" the ladies into the artless, relaxed, which is maybe the first modern casual ensemble. After Chanel's death, the succession in 1983 by the design genius of Karl Lagerfeld, he has freedom, arbitrary and easily design mentality, and he always unbelievable feeling of the unity of two opposites in the design of works of art, both creative and noble, both French romance, humour, another German severe, fine. He did not change the shape of lines and favourite colour, but from his project from beginning to end all can work out "Chanel"...
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...Analysis12 4.5 PESTEL Analysis14 5.0 STRATEGIC ALTERNATIVES20 6.0 RECOMMENDATION23 7.0 ACTION PLAN24 8.0 CONTIGENCY PLAN28 9.0 REFERENCES28 1.0 CASE SUMMARY In recent years, modern customers are no longer acquiring shopping only for their goods and services. Nowadays, these customers are buying for different reasons such as to show off their personality, to boost self esteem or to satisfy physiological needs. Shopping good brands like Louis Vuitton, Gucci, Channel and other luxury brands is like a form of self expression and gives people a sense of accomplishment. Louis Vuitton or famously known by its acronym LV, is known for world’s most valuable luxury brand. It was founded by Louis Vuitton Moet Hennesy (LVMH) in 1854 on Rue Neuve des Capuccines in Paris, France. The historical journey began when Vuitton found out traveller trunk were easily stacked. He was made famous for crafting the luggage for Napoleon. This company is famous for its luxury products such as trunks and leather goods to ready to wear, footwear, watches, jewellery, accessories, sunglasses and books. Louis Vuitton stands out more among other brands through their relentless focus on product quality. Since the 19th Century, the manufactures of Louis Vuitton goods are still handmade and over 100 stages are involved in the making of each bag. All products are extensively tested to make sure that they can withstand wear and tear, and that there are no imperfections. The company markets its product through...
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