LOUIS VUITTON

Ram Gordon

Xiaoxiao Iris

Diana

INTRODUCTION

WHAT IS LUXURY?

LUXURY

Term used for goods and services high in prestige and credibility (Baek, Kim & Yu, 2010)

Association with exclusivity, status and quality

Social Marker

“A luxury item that extraordinary people would consider ordinary is at the same time an extraordinary item to ordinary people” (Kapferer & Bastien, 2009, p.314).

BRAND

DESCRIPTION

HISTORY

Founded in 1854 by Louis Vuitton

HISTORY

Products:› Luxury Trunks, leather goods, shoes, watches,

sunglasses, etc.

Began by building trunks

Collaborated with the Nazi’s to increase their wealth

1896: Patent on monogram

The monogram created to prevent fakes

HISTORY

Products:› Luxury Trunks, leather goods, shoes, watches,

sunglasses, etc.

Began by building trunks

Collaborated with the Nazi’s to increase their wealth

1896: Patent on monogram

The monogram created to prevent fakes

LOUIS VUITTON’S LUXURY PERCEPTION

No promotions or sample sales› Value will stay high if there is no sales

The bag represents the story

Customization to their products › Mon Monogram

Bag should demonstrate that the consumer is:› Successful, fashionable and elegent

LOUIS VUITTON’S LUXURY PERCEPTION

#1 brand preferred by the Chinese› Social status is important to them› Chinese manufacturers have created many

products (fake)

LOUIS VUITTON’S LUXURY PERCEPTION

90% of Japanese own Louis Vuitton

Louis Vuitton kept prices high during recession even though their stock dropped, in order to keep their status

PUBLIC RELATIONS

PUBLIC RELATIONS

Print ads and Billboards Use of celebrities and models Appear in music video’s

› Kanye West, Juicy J, Wiz Khalifa, Britney Spears

› Britney Spears sued for due to fake Louis Vuitton monogram in music video

LMVH devotes over 10% of annual sales to marketing

Positioned fashion & Lifestyle magazines

PUBLIC RELATIONS

3 major goals› Associate brand to high quality and

emotional values› Gather testimonials› Drive them to the site via organic search

SALES

REVENUE

STATUS MANIPULATIONAND CONSUMER DECISIONS

Poor

Low class

Middle Class

High class W

ealth

Resources

DECISIONS OF CONSUMERS BASED ON

TWO DIFFERENT ASPIRATIONSExtrinsic and Intrinsic

EXTRINSIC ASPIRATIONS

Consumers with extrinsic aspirations spend money on good that would display status and wealth in society (Yann, 2010).

Conspicuous consumption

INTRINSIC ASPIRATIONS

Consumers with intrinsic aspirations spend money on goods solely for their own pleasure and satisfaction, not for others to view them as wealthy (Yann, 2010)

Quality search

Psychologically less impacted by the opinions of others

SIGNALING STATUS WITH GOODS

An advancement from the Middle Ages (Han, Nunes & Drèze, 2010)

Male attractiveness is increased by status manipulation but males are generally not influenced by status manipulation, therefore, a females attractiveness would not increase by signaling status (Dunn & Searle, 2010)

ACCESSORIES

“Handbags are the engine that drive luxury brands today” (Han et al., 2010, p.18).

BRAND PROMINENCE4 P’S OF LUXURY

BRAND PROMINENCE

LOUD QUIET

$1,800$4,350

PATRICIAN, PARVENU, POSEUR & PROLETARIAN

THE WEALTHY

PATRICIAN PARVENU

Wealthy

Buy discreet branded products (“quiet”)

Do not want to be associated with the middle class

Do not buy luxury goods to show off status (intrinsic aspiration)

Wealthy

Buy conspicuous branded products (“loud”)

Money does not stop them from buying discreet branded products, but their desire for status

Buy luxury goods to show off status (extrinsic aspiration)

THE MIDDLE TO LOW CLASS

POSEUR PROLETARIAN

Not wealthy enough to afford authentic luxury goods

Want to be associated with parvenus since they appear to be wealthy due to the use of loud products

Poseurs are more likely to buy knockoff luxury goods

Not wealthy enough to afford authentic luxury goods

No interest in being associated with the wealthy

Not interested in buying luxury goods

BRAND

PROTECTION

KNOCK-OFFS

LVMH

LVMH: World Wide leader of luxury goods

Group Mission and values:› Be creative and innovative› Aim for product excellence› Bolster the image of brands with

determination› Act as entrepreneurs› Strive to be the best in all they do

LVMH GROUP AGAINST COUNTERFEITING

60 people work full time against counterfeiting

Shut down internet sites, stores and plants that sell fake goods

Work’s with the police in France

Collaboration with external investigators and lawyers

LVMH GROUP AGAINST COUNTERFEITING

Actions carried out in China, Korea, Thailand and Italy

Louis Vuitton Values: Respect the company’s heritage – (Brand Protection)

LOUIS VUITTON BATTLES

Louis Vuitton vs. Warner Bros – The Hangover 2

Louis Vuitton vs. Britney Spears (Sony BMG & MTV)

Louis Vuitton vs. Hyundai

Louis Vuitton vs. Hairdresser in HongKong

SOLUTION

SOLUTION – WAYS TO KEEP LOUIS VUITTON’S PERCEPTION OF LUXURY

Authentication tag› Could be added to products already bought

through a boutique or via mail

Long code linking the bag to the website

CONCLUSION

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