Keywords: louis vuitton marketplace, louis vuitton analysis
Operating in 59 countries, Louis Vuitton is the largest global luxury brand on the planet. It is an associate of the Louis Vuitton Moët Hennessy Group and the key business unit of the conglomerate 's fashion and leather goods portion. Louis Vuitton has been very successful in retailing its famous handbags, shoes, suitcases and other luxury goods and produced revenues around $ 4 billion in 2004. Louis Vuitton opened the first store in India in 2003 and twelve months later the second one in Mumbai, both found in luxury hotels.
2. Problem Statement
One main goal for Louis Vuitton is to get a customer base of 1 million Indians by 2010. In order to achieve that it isn't only important to serve high-net-worth consumers, but additionally it is crucial to target the so called "cocooners". It is therefore a necessary aim to help make the new elite alert to the brand and increase their perception of Louis Vuitton's exclusivity. Furthermore, 'very rich' are only ready to pay high grade charges for those luxury products which evidently separate them from lower tiers of the population. To be able to reach these the business can choose among three specific strategies.
3. 1. Louis Vuitton in Bollywood
In this option, Louis Vuitton would have Indian movie actors endorsing its products and something position in Bollywood movies. The target section wouldn't normally only be the Indian "super rich" society who's already acquainted with the brand, but as well the so called "cocooners". Since the Bollywood movies are extremely popular in India, this strategy would result generally brand recognition in the culture.
For the celebrity endorsement LV could decided Aishwarya Rai and Shahrukh Khan to be the facial skin of Louis Vuitton India. The campaign would consist of posters, billboards and Television set advertisements with both stars advertising LV products (Exhibit 1). Since Bollywood celebrities are perceived as role models and also have a great affect in Indian world, it is expected that brand awareness increase while reinforcing the image of Louis Vuitton as a luxury and lifestyle brand.
In addition, Louis Vuitton will have its products positioned in Indian movies, which depict prosperous and influential people. This might include as well the heroes shopping at the LV store in the new Emporio luxury shopping mall in order to market the store itself.
Another positive impact would be increasing LVs market talk about in the long run. Advertising through Bollywood may help develop the tastes of luxury and lifestyle in the so called "cocooner" segment.
3. 2. LV Exclusive
Another substitute Louis Vuitton could tackle would be to offer a special club card with mould-breaking exclusivity.
This special team greeting card would be split into 3 different levels, the LV Exclusive Silver precious metal Card (Show 2), LV Exclusive Yellow metal Card (Display 3) and LV Exclusive Platinum Greeting card (Exhibit 4), predicated on the money the customer spent. The LV Exclusive Membership Card supplies the customer with exclusive, high-end services and luxury rewards.
After the first purchase of a Louis Vuitton item in another of its Indian stores, customers will get a basic customer card to keep tabs on the amount of cash they spent.
The targeted section for this strategy will be the super abundant, who seek exclusivity and already are acquainted with the brand. This strategy would certainly boost the brand loyalty of the high-class contemporary society due to unique offers provided by the LV Exclusive Membership Card.
Additionally, Louis Vuitton can trail customer buying habits and acquire key information about buying habit through this special club card, which allows those to tailor their products with their customer's needs.
3. 3. Successful Indian Women
Another choice for the company could be so it focuses on a certain section in particular the women, who represent a vital part of LV 's customers. They have become more emancipated and since a powerful group have to be taken into account. Indian women need a role model to motivate them, so if Louis Vuitton shows them a successful woman wearing one of its products, the results would be encouraged women, desiring to possess a LV item. Using such an approach they will target not just a segment consisting of individuals divided by their net income, but strong women that require to provide utterance with their achievements.
In order to boost the brand recognition among this certain segment, the company should spend money on advertising its products. Where would be an elite specified magazine, dealing
with business and social issues, for example India Today, Business owners, The Business Business ' ' and ѕ 'Reading Hour ' '. The emphasis should be laid on the one side on an image of an well-known girl like Indira Nooyi (Show 5), CFO and chief executive of PepsiCo, depicting an average role model. She'll represent the a large number of women in the Indian contemporary society who've silently defeat the restrictions and stood out for better conditions. Billboards and advertisings in online issues of established feminine magazines would support the thought of women power which in a world ruled by men, women still can be successful and exclusive.
As a result, this strategy will help Louis Vuitton to increase brand consciousness among all the Indian women and stretch its customer repository.
4. 1. To what extent will Louis Vuitton's marketing activities affect customer understanding in India?
Louis Vuitton 's targeted Indian customer section requires a different strategy then the ones used by the company throughout the world. The three suggested alternatives provide different strategies concerning how Louis Vuitton can service its new technology of customers.
"Louis Vuitton in Bollywood" targets both high-net-worth individuals and the rising "cocooners" as a result of popularity of the Bollywood industry in India. This plan, however, signifies high advertising resources in order to be able to reach the desired portion through product position and movie star endorsement. The "LV Exclusive" membership card focuses on mainly the high net-worth individuals by offering high-end services which improve the shopping-experiences of the clients. While the number of high-net-worth individuals raises by 19. 3% a year, according to the "World Wealth Record, " it is questionable if this customer segment only will be sufficient for Louis Vuitton to reach the target of any one-million customer basic by 2010. The third alternative is approximately concentrating on successful women. Focusing on this segment would target both women from the high-net-worth individuals ' and the "cocooners" segment. The main drawback is to explain how many Indian women are prepared to break the ethnical limitations of the paternalistic family buildings that still rule in this country.
What is the impact of of Louis Vuitton's marketing activities on their brand image in India?
According to the purchasing habit of India 's top quality, consumers are planning on a brandname that stands for exclusivity and provides who owns a Louis Vuitton product with a robust status symbol. Working closely with the Bollywood industry through product positioning and star endorsement will have a high magnitude on increasing customer recognition. While Bollywood celebrities are seen as part of the top quality, Louis Vuitton may need to maintain an in depth try what movies they'll place their products in order to minimize the risk of a brand association with a standard product. The "LV Exclusive" membership credit card system could increase devotion among already existing customers, offering the brand image a "crème de la crème" status thus underlining the exclusivity of Louis Vuitton items. Last but not least, by tailoring their advertising on women only will associate the brand with a women 's product, so Louis Vuitton products for men (i. e. dress shoes, suits, shirts) may put up with. Since India is a collectivist country, women usually buy clothes for the whole family, therefore the aftereffect of the brand image being associated with a women 's brand will be nominal.
4. 3. Will LV face a social-status conflict (discord of interest) by focusing on two different customer segments (i. e. HNW individuals and cocooners)?
Through the method of "LV Exclusive Credit cards" Louis Vuitton is wanting to gain loyalty among super wealthy Indian customers. However, LV must consider the growing product awareness of the "cocooners" who are not the target band of the Exclusive Cards but will be of fast growing importance as customers. As positive as new customers are on the whole this also bears the risk of a turmoil between the excellent abundant and the cocooners - who are much higher in statistics. HNW consumers may commence to perceive LV as a rather common brand and switch to different luxury products as cocooners step up the social hierarchy. Furthermore, the second choice Louis Vuitton in Bollywood could also lead to a conflict between those two segments. In the event the products' popularity raises this might have a negative effect on the buying patterns of the HNW consumers. This might go with the above-mentioned decrease in exclusivity. Finally, women may be an interesting focus on group as stated in third solution but conflicts may also occur between your HNW women - who may be via rich people - and the self-made emancipated cocooner girl. These completely different types of women will require different endorsing role models which might are perceived adversely by one another group.
How long will Louis Vuitton maintain a competitive benefits considering the proposed alternatives?
Louis Vuitton's progress on the Indian market will not stay unseen by the competition. Other luxury goods suppliers could benchmark Louis Vuitton's strategies. Companies such as Gucci, Prada and Giorgio Armani could easily replicate LV's Bollywood strategy as well as the choice for appealing to Indian women. It could be more challenging though to imitate LV's Exclusive Credit cards approach efficiently because Indian high-net-worth costumers will already be faithful to Louis Vuitton in the perfect case and will not be looking for substitutes or additional luxury products in the same segment.
All in all, while it may require more advertising resources than for example targeting emancipated women via print out media, "Louis Vuitton in Bollywood" demonstrates to reach the highest number of consumers, underlines the brand 's exclusivity, and the business will be able to increase its market talk about in the long run.
First, with the Bollywood industry booming in India, Louis Vuitton can reach several consumers and therefore boost the overall customer awareness of Indians. Second, by using movie star endorsement and selective product positioning in movies, the business will be able to clearly communicate a brand image that advocates its exclusivity thus offering its potential clients a means to "showcase their success. " Finally, Louis Vuitton can teach the nouveau riche towards choosing their brand, that may considerably increase their market share in the long run.
It is therefore strongly suggested that "Louis Vuitton in Bollywood" is the most likely and effective promotion campaign to attain and nurture the rising new technology of customers in India.
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