LOUIS VUITTON
LOUIS VUITTON IN JAPAN: THE MAGIC TOUCH
Table of Contents
PROBLEM STATEMENT 3
SITUATION ANALYSIS 3
Company History and Background 3
Company Mission Statement and Vision 4
Company Strategy 4
INTERNAL ANALYSIS 4
Strengths 5
Weaknesses 5
EXTERNAL ANALYSIS 6
Opportunities 6
Threats 6
Political Elements 6
Economic Elements 6
Social-Cultural Elements 7
Technological Elements 7
Legal 7
Competitive Analysis 8
Market Analysis and Segmentation 8
KEY SUCCESS FACTORS 10
KEY UNCERTAINTIES 10
ALTERNATIVES 10
RECOMMENDATION 12
ACTION PLAN 12
CONTINGENCY PLAN 13
APPENDICES 14
REFERENCES 18
PROBLEM STATEMENT
Excellence in business and marketing execution, heritage, and worldwide brand recognition coupled with trendy yet timelessness quality products with exclusive aura perpetually instigating the Japanese’s genetic demand for luxury has allowed Louis Vuitton (LV) to become the leading luxury house in Japan and make it its primary source of revenues for more than four decades. This was equally fueled by high level of disposable incomes as well as Japanese social and cultural conforming norms. However, the recent prolonged global recession has eventually resulted in some changes of atypical Japanese buying behaviours that eventually will have negative consequences on luxury goods market as a whole. To protect its market share and revenues dilution in Japan, LV needs to identify those market segments with un-capitalized revenue opportunities or prone to lose consumers and then develop and implement distribution, product and/or advertising initiatives that would yield optimization.
SITUATION ANALYSIS
Company History and Background
Company Mission Statement and Vision
The mission statement of all LVMH brands is: “To represent around the world the most refined qualities of Western `Art de Vivre ' and must continue to be synonymous with both elegance and creativity” through products embodying “cultural values, blend tradition and innovation, and
Table of Contents
PROBLEM STATEMENT 3
SITUATION ANALYSIS 3
Company History and Background 3
Company Mission Statement and Vision 4
Company Strategy 4
INTERNAL ANALYSIS 4
Strengths 5
Weaknesses 5
EXTERNAL ANALYSIS 6
Opportunities 6
Threats 6
Political Elements 6
Economic Elements 6
Social-Cultural Elements 7
Technological Elements 7
Legal 7
Competitive Analysis 8
Market Analysis and Segmentation 8
KEY SUCCESS FACTORS 10
KEY UNCERTAINTIES 10
ALTERNATIVES 10
RECOMMENDATION 12
ACTION PLAN 12
CONTINGENCY PLAN 13
APPENDICES 14
REFERENCES 18
PROBLEM STATEMENT
Excellence in business and marketing execution, heritage, and worldwide brand recognition coupled with trendy yet timelessness quality products with exclusive aura perpetually instigating the Japanese’s genetic demand for luxury has allowed Louis Vuitton (LV) to become the leading luxury house in Japan and make it its primary source of revenues for more than four decades. This was equally fueled by high level of disposable incomes as well as Japanese social and cultural conforming norms. However, the recent prolonged global recession has eventually resulted in some changes of atypical Japanese buying behaviours that eventually will have negative consequences on luxury goods market as a whole. To protect its market share and revenues dilution in Japan, LV needs to identify those market segments with un-capitalized revenue opportunities or prone to lose consumers and then develop and implement distribution, product and/or advertising initiatives that would yield optimization.
SITUATION ANALYSIS
Company History and Background
Company Mission Statement and Vision
The mission statement of all LVMH brands is: “To represent around the world the most refined qualities of Western `Art de Vivre ' and must continue to be synonymous with both elegance and creativity” through products embodying “cultural values, blend tradition and innovation, and
References: Helsen, Kotabe. Global Marketing Management, 5th edition 1 http://www.lvmh.com/the-group/lvmh-group/group-mission-and-values 2 http://www.yanoresearch.com/press/press.php/000609 3 http://www.mckinsey.com/insights/consumer_and_retail/japans_luxury_shoppers_move_on http://www.businessoffashion.com/2010/10/japans-premium-pricing-problem.html http://en.wikipedia.org/wiki/List_of_Japanese_cities_by_population http://www.mystore411.com/store/listing/187/Japan/Louis-Vuitton-(LV)-store-locations http://www.budde.com.au/Research/Japan-Mobile-Market-Overview-Statistics-and-Forecasts.html http://www.jmrn.com/UserFiles/File/DCLB_JMRN.pdf http://luxurysociety.com/articles/2009/01/the-future-of-luxury-in-japan