...Q1. What has made LV business model successful in the Japanese luxury market? Ans. I would like to demonstrate the success of the Business Model of ‘LV’ via the concept of Four Ps (Product, Price, Place, and Promotion). Product – In general marketers seeks ‘adequate quality’, ‘faintness of use’ etc., and too much of quality can be undesirable because it increase the cost. However, ‘LV’ handbags represented ‘products of distinctive qualities’ and ‘attention to details’. In general the concept of ‘relative quality’ is challenged by the ‘absolute quality’ which has forced customers to LV or nothing attitude. To back their products ‘LV’ has taken action against counterfeiting item by ‘Enlightenment Champagne’, involvement of French trademark authorities etc., make there product defendable. Partnership with local artist and Limited edition products has demonstrated that Product Line up and innovation are very strong parts of ‘LV’ business model in Japan. Price – Market Demands “Low Price”, this is achieved by reducing costs and off-shoring production to China and elsewhere. Louis Vuitton handbags, on the other hand, are priced high. Such high prices are unnecessary for merely stowing and carrying things. In essence, the Louis Vuitton difference is value, not price—this being absolute value, not relative value. Many of the principles for Price were innovations that came about after Kyojiro Hata became president of Louis Vuitton Japan and that subsequently went global...
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...Journal of Consumer Research Inc. Adolescent Influence in Family Decision Making: A Replication with Extension Author(s): Sharon E. Beatty and Salil Talpade Reviewed work(s): Source: Journal of Consumer Research, Vol. 21, No. 2 (Sep., 1994), pp. 332-341 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/2489824 . Accessed: 02/01/2012 20:39 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. The University of Chicago Press and Journal of Consumer Research Inc. are collaborating with JSTOR to digitize, preserve and extend access to Journal of Consumer Research. http://www.jstor.org Adolescent Making: A Influence Replication in with Family Decision Extension SHARON E. BEATTY SALILTALPADE* In this article, we replicate and extend several elements of E. Foxman, P. Tansuhaj, and K. Ekstrom's 1989 study of adolescent influence, while providing an integrative model of teenager influence and a new scale of perceived relative influence. Further, we examine the effect of parental...
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...Louis Vuitton Case 1. According to HSBC in February 2009, Japan was the final destination of 45 percent of luxury goods sold worldwide. According to Claudia D’Arpizio, Japan is the world’s largest market, consisting of the highest per capita spending for luxury goods. Japan is known for a group-oriented culture, which creates pressure for its citizens to possess luxury, status-driven products such as Louis Vuitton (LV). This makes the Japanese luxury market easily penetrated by new and innovative fashions. According to Davide Sesia, president of Prada Japan, Japanese Women, to a much greater extent than Europeans have a “psychological need to own something considered to be beautiful”1. In the late 1990’s, LV created limited- edition collections to claim a prestigious role. This was their marketing strategy to gain the attention of their upper class customers which reinvigorated the brand identity as well as earning them market share. In addition, Japanese people are considered to spend more time out of their residences than any other culture. In Japan, looks are a direct correlation to a person’s social position, which persuades Japanese to shop for luxury items. Quality is a key factor for successful brands in Japan. LV has a focus on constant improvement of quality and offer lifetime repair guarantees for its products. In 1996, Azzedine Alaia, Manolo Blahnik, Romeo Gigli, Helmut Lang, Isaac Mizrahi, Syvilla and Vivienne Westwood were hired to create a...
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...Vuitton in Japan Q1. What has made LV business model successful in the Japanese luxury market? Ans. I would like to demonstrate the success of the Business Model of ‘LV’ via the concept of Four Ps (Product, Price, Place, and Promotion). Product – In general marketers seeks ‘adequate quality’, ‘faintness of use’ etc., and too much of quality can be undesirable because it increase the cost. However, ‘LV’ handbags represented ‘products of distinctive qualities’ and ‘attention to details’. In general the concept of ‘relative quality’ is challenged by the ‘absolute quality’ which has forced customers to LV or nothing attitude. To back their products ‘LV’ has taken action against counterfeiting item by ‘Enlightenment Champagne’, involvement of French trademark authorities etc., make there product defendable. Partnership with local artist and Limited edition products has demonstrated that Product Line up and innovation are very strong parts of ‘LV’ business model in Japan. Price – Market Demands “Low Price”, this is achieved by reducing costs and off-shoring production to China and elsewhere. Louis Vuitton handbags, on the other hand, are priced high. Such high prices are unnecessary for merely stowing and carrying things. In essence, the Louis Vuitton difference is value, not price—this being absolute value, not relative value. Many of the principles for Price were innovations that came about after Kyojiro Hata became president of Louis Vuitton Japan and that subsequently...
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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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...leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London. In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product line by applying the craftwork and design of its leather to small leather goods. In the mid 1970s, Louis Vuitton had become the world’s biggest luxury brand in terms of market share. Louis Vuitton entered Japanese market in year 1968, and it came the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors. LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer for the Japanese Market products. In fact, LV tired to localize their products for Japanese to attract more customers as they saw the demand for the luxury in this market. One way LV localized their products was the use of Japan’s Classic Monogram Canvas Print on their bags, which was inspired by Japanese floral print. One way to show the success...
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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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...take a look at how Louis Vuitton maintain such a strong presence on the global stage. Louis Vuitton Analysis Louis Vuitton’s Business Model Luxury brands, generally speaking, have not fared well during the past few years. The industry (luxury items) declined by billions of dollars. Writers for luxurydaily.com said the “air of rarity” was in peril. The global recession put luxury markets in a downward spiral. That is, except for Louis Vuitton (LV) and Chanel. The LV brand held onto the number one spot it has held for the past ten years. This year has seen an increase in profitability upwards of 16 percent, almost triple that of 6 percent last year. (King, 2015) The Louis Vuitton business model implements innovative and alluring ways of capturing new audiences. For instance, the company added social media and the likes of snapchat to their traditional modes of marketing. The management company for the LV brand, Ogilvy’s Global Strategy and Planning Group, uses a unique process to build brands call “The Big Ideal”. They believe LV and other companies that sell luxury items should be “consistent and authentic and that they must be a guidepost to a specific viewpoint. Therefore, since business risk is not determined simply by affordability; future challenges maneuver around mass marketing...
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...Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH faced in Japan and established 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 and SWOT analysis. Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Japan. In the Japanese, LVMH has to deal with economical and cultural uncertainties, the threat of counterfeit products and the relatively high competition, and finally changing tastes of Japanese consumers. LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Japan. To face their first challenge of economical and cultural, as well as changing tastes uncertainties, the company can hire new designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience for LV’s customers, and shutting down large counterfeit operations, by cooperating with Chinese and Korean Government Agencies in reducing counterfeit products. Table of Contents Introduction 4 Weak economy 5 Changing taste 7 Competitors 8 Competition – Porter’s 5 forces analysis...
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...market? Louis Vuitton’s business model in Japan is truly extraordinary in the way they use product, price, place, and promotion. The company was founded on producing products of the highest quality by Louis Vuitton Malletier in 1854. LV continuous effort to innovate their product through partnerships with local artist to create limited product lines and never deviate from the founding father’s vision is directly related to LV’s success. Louis Vuitton’s product image in the consumers mind is so important that they are taken huge measures in preventing counterfeiting of their product globally. The next portion of the LV’s business model is price. For a majority of company’s price is determined all by market demand and can fluctuate in order to stimulate or maintain consumer demand. For LV it is different, their products are priced unnecessarily high all the time despite what the market demand is. They do this because LV products are luxurious status symbols and in this sense offer absolute value out of a purchase. If the company prices their item any lower than what the current price is then the LV label will hold its social value. LV’s choice of place is unique because they only sell from a very small number of stores of which are mostly owned by the company. This is unique because traditionally an increase and sales can directly be related to the number of distribution channels the company uses. The reason LV has chosen to go against normal traditions is...
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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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...Louis Vuitton is a French fashion house founded in 1854 by Louis Vuitton. LV is mostly famous for its high-class leather bags and travelling trunks. It is also known as Louis Vuitton Moet Hennessy (LVMH) after merger with leading manufacturer of champagne and cognac, Moët & Chandon and Hennessy, in 1987. Louis Vuitton is one of the world most valuable luxury brands with the brand value of $29.9 billion according to the Forbes magazines listing November 2014. Quality craftsmanship, heritage and history are key factors of success for luxury brands like Louis Vuitton. Louis Vuitton has been growing fast due to increasing demand in China. Chinese consumers have quickly risen among the world’s biggest consumers of luxury product and the growth doesn’t seem to end. LV has become extremely popular brand among the fashion conscious Chinese and Japanese consumers. Consumer surveys reveal that it is among the top 5 luxury brands in both countries. The brand is clearly visible in all of the main cities all around the world as it is very easy to find several girls carrying the LV bags, wallets, and others accessories. China is the most essential market for LV, but it still has to concentrate on keeping sales up also in other main markets like Japan. The rise of LV in China and other markets is not a coincidence. It has been achieved through extensive strategic approaches and extraordinary luxury brand management. LV has successfully grasped their potential consumers in term of attitude...
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...Table of content 1.0 Executive Summary 3 1.1 Objective 1.2 Vision and Mission 2.0 Company Summary 4 2.1 Background 2.1 Company locations and facilities 3.0 Products and Services 5 3.1 Product description 3.2 Competitive Comparison 3.3 Supply and 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...
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...than Japan. With China's luxury consumption ability to continuously release, this brand in China is expected to have obviously large sales growth space. According to Viscoelasticstatistics, large luxury product groups coming to settle in Beijing, Shanghai and Hong Kong. The numbers of shops are now beyond that of Italian and equals to that of London. In previous years, in Shanghai and Beijing, Tod 's, LV, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and etc. brands flooded in just a few months. At present, the domestic market possesses nearly two thirds of the luxury brands, estimate in 2013 years or earlier, people can find all luxury brands in domestic market. • The status of LV’s market in China and its strategy: There are about 100 sales outlets of LV watch and jewelry in domestic now. LV bag has opened 39 stores in China now and the sale amount is accounted for nearly 40% of the whole sale amount of LV in the world, which is beyond the Europe,the birthplace of the 19% market share and the 23% market share of USA. A Chinese cinema's manager said jokingly: “If a cinema can earn 20 million CNY a year, it will laugh, but that is just the amount of sales of LV stores in Hangzhou in a month. Indeed, through the Chinese people’s efforts to the Chinese film industry, it earned more than 10 billion CNY at the box office mark in 2010, but only LV, a luxury brand in China for a year in sales is for nearly 13 billion CNY. Global famous luxury brand Louis Vuitton (LV) will...
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