Luis Vuiton Case
Cover page
Project no. 1 Project title: LOUIS VUITTON
Class and group/team number: CLmec-y13f, GROUP 2
Group members:
Adeniyi Tajudeen Babatunde
Carlo Guerra
Madalina Manole
Hristo Novakov
Date: 14/03/2013
Number of characters (including spaces, footnotes, end notes and text boxes): 23,921
Signatures of all the participating group/team members:
_____________________________ _____________________________
_____________________________ _____________________________
Contents 1. Introduction 2 1.1 Motivation 2 1.3 Interpretation 3 1.4 Scope 3 1.5 Methodology 3 2. Porter’s 5 forces analysis 3 2.1 Industry analysis 3 2.2 Competitive rivalry 5 2.3 New entrants 5 2.4 Substitutes 6 2.5 Power of buyers 6 3. Marketing Mix: the 4 Ps 7 3.1 Product 7 3.2 Price 9 3.3 Place 9 3.4 Promotion 10 4. Discussion 10 5. Recommendations 12 6. Conclusion 13
1. Introduction
1.1 Motivation
LV(Louis Vuitton) is a world-wide famous company producing luxury leather items, such as handbags, trunks, shoes and accessories, but also watches, jewelry and sunglasses.
Nowadays ' powerful LV is the result of the efforts of a genial initiator – Louis Vuitton himself, who introduced flat-topped, stackable trunks and an impressive number of original designs – and an acute business man – Bernard Arnault, who took over the company with a cunning strategy, revolutionized the high levels of management and then acquired competitors, famous brands to expand LV 's activity, and distributors to keep firm control of the brand identity.
LV is today a standard, one of the per excellence suppliers of exclusive luxury products for the absolute, aspirational and accessible segments of customers. Its growth has been steady for decades, and more is to be expected as the market itself is reported to be growing continuously.
Yet some signs of weakness have been spotted already: since 2005, a general plan designed to improve
Project no. 1 Project title: LOUIS VUITTON
Class and group/team number: CLmec-y13f, GROUP 2
Group members:
Adeniyi Tajudeen Babatunde
Carlo Guerra
Madalina Manole
Hristo Novakov
Date: 14/03/2013
Number of characters (including spaces, footnotes, end notes and text boxes): 23,921
Signatures of all the participating group/team members:
_____________________________ _____________________________
_____________________________ _____________________________
Contents 1. Introduction 2 1.1 Motivation 2 1.3 Interpretation 3 1.4 Scope 3 1.5 Methodology 3 2. Porter’s 5 forces analysis 3 2.1 Industry analysis 3 2.2 Competitive rivalry 5 2.3 New entrants 5 2.4 Substitutes 6 2.5 Power of buyers 6 3. Marketing Mix: the 4 Ps 7 3.1 Product 7 3.2 Price 9 3.3 Place 9 3.4 Promotion 10 4. Discussion 10 5. Recommendations 12 6. Conclusion 13
1. Introduction
1.1 Motivation
LV(Louis Vuitton) is a world-wide famous company producing luxury leather items, such as handbags, trunks, shoes and accessories, but also watches, jewelry and sunglasses.
Nowadays ' powerful LV is the result of the efforts of a genial initiator – Louis Vuitton himself, who introduced flat-topped, stackable trunks and an impressive number of original designs – and an acute business man – Bernard Arnault, who took over the company with a cunning strategy, revolutionized the high levels of management and then acquired competitors, famous brands to expand LV 's activity, and distributors to keep firm control of the brand identity.
LV is today a standard, one of the per excellence suppliers of exclusive luxury products for the absolute, aspirational and accessible segments of customers. Its growth has been steady for decades, and more is to be expected as the market itself is reported to be growing continuously.
Yet some signs of weakness have been spotted already: since 2005, a general plan designed to improve
Bibliography: Business Week (2011): “Vuitton sees growth tied to invitation luxury salon retails” www.businessweek.com/news/2011-11-16/Vuitton-sees-growth-tied-to-invitation-luxury-salon-retail.html Christina Passariello (2011): “At Vuitton, Growth in Small Batches” Fondazione Altagamma (2012): „Worldwide Luxury Markets Monitor . Spring 2012 Update”. http://www.altagamma.it/img/sezione3/files/397_975_file.pdf Gladwell, Malcom (2002): “The Tipping Point: How Little Things Can Make a Big Difference” Hannah Elliott (October 20, 2010): “Fendi Wins One Over Counterfeiters”, in Forbes. http://www.forbes.com/sites/hannahelliott/2010/10/20/fendi-wins-one-over-counterfeiters/ Kapferer, J Kapferer, J.N. (2012): “Le luxe est il compatible avec le dévelopement durable? Enquête auprès des clients du luxe eux-mêmes”, HEC Paris, Research Reports. Mahbubani, Manu and Crossan, Mary (2013): “Louis Vuitton” (Version: 2013-02-04). Ivey Publishing. Martin, Richard(1995) Contemporary fashion London; St. James press p.750. ISBN 1-55862-173-3 Nagasawa, Shin’ya (2002): “An Unpainted Face of the Empire of Luxury Brands: LVMH Moet Hennessy Nagasawa, Shin 'ya, with Ohizumi Kenji and Maeda Kazuaki (2007): “The principles of Louis Vuitton: The Strongest Brand Strategy”. Toyo Keizai Shinposha. PWC (2012): „Market Vision Luxury”. http://www.pwc.com/it/it/publications/assets/docs/marketvision-luxury-2012.pdf Sepúlveda schulz, Rodrigo (2002): „Can luxury goods conglomerates sustain above-normal returns? The Gucci group case” [ 2 ]. Sepúlveda schulz, Rodrigo (2002): „Can luxury goods conglomerates sustain above-normal returns? The Gucci group case”. INSEAD MBA Program. 3 [ 3 ] http://www.pwc.com/it/it/publications/assets/docs/marketvision-luxury-2012.pdf Fondazione Altagamma (2012): „Worldwide Luxury Markets Monitor [ 5 ]. Sepúlveda schulz, Rodrigo (2002). [ 6 ]. Bain & Company (2012): „Luxury Goods Worldwide Market Study, 11th Edition” http://www.bain.com/about/press/press-releases/bain-projects-global-luxury-goods-market-will-grow-ten-percent-in-2012.aspx [ 7 ] [ 13 ]. Fondazione Altagamma (2012). 13 [ 14 ] [ 16 ]. Nagasawa, Shin’ya (2002): “An Unpainted Face of the Empire of Luxury Brands: LVMH Moet Hennessy. Louis Vuitton”. Nihon Keizai Shimbunsha. Nagasawa, Shin 'ya, with Ohizumi Kenji and Maeda Kazuaki (2007): “The principles of Louis Vuitton: The Strongest Brand Strategy”. Toyo Keizai Shinposha. [ 18 ]. Kapferer, J. N., & Bastien, V. (2009): “The luxury strategy: Break the rules of marketing to build luxury brands”. London. Kapferer, J.N. (2012): “Le luxe est il compatible avec le dévelopement durable? Enquête auprès des clients du luxe eux-mêmes”, HEC Paris, Research Reports. [ 19 ]. Business Week (2011): “Vuitton sees growth tied to invitation luxury salon retails” www.businessweek.com/news/2011-11-16/Vuitton-sees-growth-tied-to-invitation-luxury-salon-retail.html [ 20 ] [ 23 ]. Dominion Fund Management Limited (2013) [ 24 ] [ 25 ]. Mahbubani, Manu and Crossan, Mary (2013). Ibid. [ 28 ]. Doreen Carvajal (July 1, 2008): “EBay Ordered to Pay $61 Million in Sale of Counterfeit Goods”, in New York Times. http://www.nytimes.com/2008/07/01/technology/01ebay.html?_r=0 [ 29 ] [ 30 ]. The Canadian Press (2011): “Three companies fined $2.5M for fake hand bags”, in British Columbia – CBC News, http://www.cbc.ca/news/canada/british-columbia/story/2011/06/29/bc-fake-louis-vuitton-burberry.html [ 31 ] [ 32 ]. Christina Passariello (2011): “At Vuitton, Growth in Small Batches”. In The Wall Street Journal. http://online.wsj.com/article/SB10001424052702303627104576409813842858304.html [ 33 ] [ 34 ]. Mahbubani, Manu and Crossan, Mary (2013). 7