Ch. 12-Services and Nonprofit Organization Marketing

Louis Vuitton is a prominent brand dealing with items related to 
fashion industry. Established in the year 1850, they have carved a name for themselves amongst the peers in the fashion industry by blending craftsmanship that is handmade with necessary but very least mechanization. This has resulted in maximized productivity along with qualitative products. Louis Vuitton has been relentless in their efforts to focus on the quality of all their products. The main competitors of this world famous brand are:
Hermes
Chanel
Gucci
Vertu
Product in the Marketing mix of Louis Vuitton
Louis Vuitton is a brand that deals in the manufacture and sales of specialized products. The main emphasis of the company is on the premium quality of the goods. In order to supply the best imaginable products, the company has always concentrated on the designs that are intricately created and artisanship that is traditional as well as simply exquisite. Instead of using machines to increase their production the company has taken a step backward by hiring specialized and expert workers. This has resulted in unique and original merchandises that closely resemble the aspirations and imaginations of the consumers. In order to tackle the market of counterfeit goods the company has paid a lot of effort in the design itself, & therefore it is not easy to imitate its products.

All the goods and designs are registered to counter fake goods. The portfolio of luxury goods that the company deals in includes items like leather goods that are made from hundred percent original leather and exclusive ready- to-wear clothes line that are designed with utmost care and are hundred percent original. The company is famous for its handbags and beautiful watches. The buyers also cover the glittering jewelry and designer shoes. Louis Vuitton also offers a range of eyeglasses, briefcases, scarves, belts and wallets.  In recent years, the company has hired new, young and talented designers to attract the young generation of buyers.

Place in the marketing mix of Louis Vuitton
Louis Vuitton is very clear in its distribution policies. Its products are highly exclusive and sold with the same mindset of providing exclusive accessibility. To purchase a Louis Vuitton product the customer has to reach its personalized stores. The sale of these items is through limited channels of exclusive distribution. The company is a set and preconceived mindset that allows them to use its own outlets for product distribution.
They do not sell any of their branded products in departmental stores. They feel that they have the best possible options to sell their products in their own stores, as their salespersons are highly professional with a keen mindset to tackle the customers in an intimate and warm environment.  In the long term, this marketing strategy helps in the reduction of intermediary costs that other brands face while selling through long channels of distribution. This also results in direct dealings with the customers that lead to efficient and friendly relations. All its stores are located in a very high profile and prime locations.
Products in these stores are prominently displayed keeping in mind the latest fashions.  Louis Vuitton has opened its outlets in different parts of the globe and they have at least three hundred retail outlets. This includes stores in Los Angeles, Dubai, Las Vegas, New York, Paris, and Tokyo.  Online purchase of Louis Vuitton products is possible only in the United States.

Price in the Marketing mix of Louis Vuitton

Louis Vuitton has made handsome investments to maintain the rich quality of its products. The contemporary designs of the products have helped the company to maintain a premium pricing policy. Louis Vuitton employs a policy of integrity pricing strategy throughout its distribution network.

Promotions in the Marketing mix of Louis Vuitton
Louis Vuitton has employed a promotional strategy for its products with the help of celebrity endorsements. Famous actors like Jennifer Lopez, Kate Moss, Scarlett Johansson and Uma Thurman have been associated with the brand as its ambassadors. They have featured in the high-profile ad campaigns for this brand. Louis Vuitton has also taken an active part in sponsoring mega sporting events like motorsports and yachting.

These events are attended by mostly the elite society and by associating with these events; the company has made a direct link with the target audience.  Advertising is the main tool to create awareness about the product and keeping with its illusion of exclusivity the company has managed to make ads that are really individual and fashionable.

Ch. 11- Developing and Managing Products

Louis Vuitton is always open to new developments, from internal affairs to new products. Their openness allows them to keep up with the times, growing and changing with the demands of the luxury market. From Vuitton's roots as a high-quality luggage maker in 1854, they have been progressive in developed a line of luxury products that remain true to the brand's values. In 1987 they formed LVMH, the world's leading luxury group. In1998, Marc Jacobs joined Vuitton as Artistic Director, bringing new creativity and an exciting new vision of the Vuitton family.

When introducing a new product, Vuitton usually makes a spin-off of a successful product and sells it for a limited time. Having Marc Jacobs on board in addition to the desirable, luxury label that is Vuitton, introducing new products is never a gamble for the brand. With celebrity endorsed advertisements, to celebrities and elite individuals carrying the products, the products are constantly on display. 

Vuitton uses their windows in their flagship locations as creative ways to promote their new products. Watch the window display in Paris circa 2009, as the classic Speedy bag, transforms itself to limited edition designs...

Below are some examples of limited edition products that have been available to the public in the last 10 years. 

Louis Vuitton Limited Edition Graduate Monogram Bag. Collaboration with New York artist, Richard Prince.

2008, Paris Hilton and Kim Kardashian carry their matching mirror limited edition Louis Vuitton Alma handbag.  

2009. Marc Jacobs for Louis Vuitton paid homage to his late friend, American Artist, Stephen Sprouse, who passed in 2004

Ch. 8 - Segmenting and Targeting Markets

Louis Vuitton segments to multiple target markets. Many people, both men, and women with different values and all walks of life are fans of Louis Vuitton.Vuitton has multiple avenues of communicating their brand to different target markets. Through high fashion print ads, and their Core Values campaign ads, these ads are segmented to both men and women in the Upper Class, to Upper-Middle, and Middle. 
By gaining the interest of both the wealthy and middle class, they have mastered the art of "less is more", maintaining a sense of mystery, yet they really are an attainable brand. In recent years, Vuitton began streaming their fashion shows, which made the shows, once only available to the fashion crowd and celebrities, now accessible to the world. ( consumer decision making).  With products with price points as low as $45.00, one can walk out of a Vuitton store with a "Travel Guide to Berlin", Paris, New York, Amsterdam etc. They can leave with a bracelet priced at $390.00, or a travel trunk for $4500.00. The bottom line is, anyone can get their hands on Vuitton, yet this notion does not hinder Vuitton's image. Vuitton maintains a high-end clientele and a high-class image and remains the most valuable luxury brand. 

Upon entering a Louis Vuitton boutique, one will notice different counters and sections with different "themes". These counters range from, men's travel bags, unisex travel bags, fashion jewelry, high-end jewelry, small leather goods, scarves, belts, shoes, travel books etc. The store is very organized, one can easily locate what section they are in, helping to navigate through what could be very confusing.


We cannot forget to mention that Marc Jacobs is Louis Vuitton's creative director. Jacobs, like most designers, has a high-end line, and a contemporary one, "Marc Jacobs" and "Marc by Marc Jacobs". With his name affiliated with the brand, teenagers and young adults who are fans for Jacobs, begin to "up the ante" upon discovering Vuitton, creating a new fan who will eventually move into a segmented Target Market.

Ch. 15- Marketing Communications

As I was reading the chapter, I thought there wasn't  much I could write about Louis Vuitton and business marketing, considering that the company is a manufacturer and retailer. 

Louis Vuitton has multiple avenues of communicating their brand to the public. Because Vuitton is so well known, they use word of mouth and person to person advertising as a major tool for advertising. They do however run high fashion print ads and their Core Values campaign as an advertisement.

Like I have mentioned in other posts, their advertisements lack the words "Louis Vuitton". Their monogrammed canvas and logo is so identifiable by the public, they do not need to print the name.

In recent years, Vuitton began streaming their fashion shows, which made the shows, once only available to the fashion crowd and celebrities, now accessible to the world. (See consumer decision making for video) Through mass communication, Vuitton has gained the interest of both the wealthy and middle class. Somehow, they have mastered the art of "less is more" communication to the public, still maintaining a sense of mystery, yet they still appear as an attainable brand.

Through the "pull strategy", consumers that own and carry the brand's merchandise act as walking advertisements. Most of these people are among the wealthy middle-upper class, acting as "role models" to others in society. This idea of consumers advertising creates a demand among other people who like and want to buy the product, thus, bringing people into the store and creating revenue.

Overall, Vuitton is a master at mass communication. Their messages are never clouded by "noise", sending clear and concise messages to their target market. This is why Vuitton is the most valuable luxury brand.

Ch. 10 - Product Concepts

 The company started in France and is recognized worldwide for creating specialty products. Louis Vuitton, has been a part of the fashion industry for approximately 157 years dating back to the 19th century.  Each product is carefully crafted using the finest materials. Originally Louis Vuitton created luggage in the mid-1800’s. The company expanded the product offering to handbags in the early 1890’s. 
A couple of weeks ago it was announced that Karl Lagerfeld had created a Louis Vuitton punching bag that retails for $175,000. The Chanel and Fendi designer, and a few other high-level creatives were invited to celebrate the LV monogram logo by reinterpreting the intertwining letters on a selection of fashion and lifestyle goods. How many, if any, of the 25 boxing bags the French luxury brand expect to sell is unknown. But this kind of extraordinary marketing exercises (the true identity of the punching bag and other such costly one-offs) is in line with Louis Vuitton’s position in the contemporary luxury market. The French bag maker, founded in 1854, holds a very special place at the top of the fashion pyramid; Louis Vuitton is seen as a bellwether for the rest of the industry.

In 1997, Marc Jacobs was hired by the Louis Vuitton Company to be the label’s artistic director . 
That year he introduced the company’s first ready-to-wear line of clothing. This was the first time that the Louis Vuitton Company ventured to a new product offering other than luggage and handbags. Today Louis Vuitton product offerings also include cosmetic and vanity cases, sunglasses, shoes, scarves and accessories, belts, timepieces, and fine jewelry. The service offerings of Louis Vuitton are the impeccable quality and make of the luxury products. The company built its foundation on the handwork that goes into each of its custom made products. 

Since the company first began, all products have been concentrated on by the art of craftsmanship . The Louis Vuitton Company does not use machinery to mass produce their handbags. Just a few years ago 20-30 craftsmen were needed to assemble the Louis Vuitton “Reade” tote bag in approximately an eight-day period.

The original pattern of Louis Vuitton's trunks was a striped canvas. However, as the label became more and more popular, it was copied more and more. So, in 1889, Louis and Georges Vuitton decided to change their signature pattern to a brown draught board pattern on a beige background.This new pattern was the very first registered trademark (Marque L. Vuitton despise'). The new pattern was referred to as the Damier canvas. After Louis Vuitton died, his son Georges became the mastermind behind running the company. Georges had true international ambitions, with plans to expand into the United States. By this time, competitors had also copied the Damier canvas. It was time to come up with a new signature pattern that was much more difficult to copy. Georges created the new motif, which was comprised of a beige circle containing a four-petal flower, a curved beige lozenge containing a four-pointed curved star, a star with a point in the center, and the initials LV in memory of his father. Finally, the monogram canvas that is so well known today was born. One main thing to remember, Louis Vuitton, is always about perfection, and would never put out anything less than that. At Louis Vuitton Malletier, 85% of the corrugated packaging used to transport products is totally composed of recycled fibers. The labeling is purely informative. In its labels, Louis Vuitton describes the material used for the products, where these products are made and the bar code. 

Ch. 17 - Personal Selling and Sales Management

Louis Vuitton is a company that lacks sales promotion. Their items

are never on sale, they never offer deals, and they certainly never give away samples. The brand that is Louis Vuitton is so coveted that it is unnecessary to offer deals. In fact, offering any type of discount would hurt the brand. The primary target market views themselves as elite, and use Vuitton to differentiate themselves; these people do not need to shop during times of sale prices.  Lack of promotion is something that draws them to Vuitton.

Vuitton's producers insist that the product is of high quality, therefore any type of outlet to discount prices is unnecessary because their products are highly warranted. Furthermore, sales can promote a mentality that the discounted product is outdated, undesired, and/or overpriced. The perception of the products to the consumer can become tainted. I certainly have had this happen to me when shopping- my thought process is something like this: "Why would I buy from this particular store when there isn't a sale when I know I can get it for cheaper, and they are still making a profit!" If Vuitton offered discounts they would lose their power of prestige.  

Instead, Vuitton focuses on engaging customers in memorable experiences. Their employees work to emphasize the unique products and ensure a distinguished retail experience. The sales associates develop relationships with customers and create a comfortable, organized environment where the customer feels relaxed- not rushed. 

Something that adds the overall experience is the option to custom make a bag.  On Vuitton's website, they offer "Custom Made"... "Whether it is designed to fulfill a practical purpose or is an expression of individual creativity, custom-made leather goods is both functional and exceptional. All our special orders are hand made in our historical workshop in Asnieres near Paris. founded by Louis Vuitton himself." Here you are given the option to chose your design, leather, and lining. 

Vuitton is a sponsor of the elite sporting event of yachting. The "America's Cup" trophy awards the winner of America's Cup match races between two yachts. This reaches the audience and target market of those who attend events such as yacht racing, these people most likely sport (pun intended) Louis Vuitton during their day-to-day lives. 

Ch. 16 - Advertising, Public Relations and Sales Promotion

 Louis Vuitton commonly uses print ads in magazines and billboards in cosmopolitan cities. It previously relied on selected press for its advertising campaigns (frequently involving prestigious stars like Steffi Graf, Andre Agassi, Gisele Bündchen and Catherine Deneuve) shot by Annie Leibovitz. However, Antoine Arnault, director of the communication department, has recently decided to enter the world of television and cinema: The commercial (90 seconds) is exploring the theme "Where will life take you?" and is translated into 13 different languages. We can clearly see diversity in their advertisements. 
This is A quest for freedom and adventure, introducing the new Spirit of Travel Campaign from Louis Vuitton starring Michelle Williams and Alicia Vikander

French leather goods maker Louis Vuitton is Luxury Daily’s 2014 Luxury Marketer of the Year for its seamless transition to new creative director Nicolas Ghesquiere’s vision.

Louis Vuitton won over first runner-up Hermès and second runners-up Dior for keeping a consistent visibility across channels. Throughout this year, all three brands showed a strong ability to keep their presence known through efforts spanning print and online, maintaining key placement in important fashion publications and speaking directly to their audience through social media. Louis Vuitton has also entered the publishing game itself. Starting in October Louis Vuitton began publishing “The Book,” a biannual, in-house glossy magazine. The branded print publication will be translated into 11 languages and mailed only to select Louis Vuitton clients. 
Louis Vuitton populated its Fall 2011 runway with supermodels like Kate Moss, Amber Valletta, Carolyn Murphy, and Naomi Campbell, but you wouldn't guess it based on the collection's campaign. Instead of its usual top model or actress seasonal face, the brand went with very young, in some cases: 16-year-old Zuzanna Bijoch, 15-year-old Daphne Groeneveld, 20-year-old Gertrud Hegelund, 16-year-old Nyasha Matonhodze, 20-year-old Anais Pouliot, and Fei Fei Sun, who was born in 1989.
The Louis Vuitton company seeks to cultivate a celebrity following and has used famous models, musicians, and actors such as Keith Richards, Madonna, Sean Connery, Michelle Williams, Matthias Schoenaerts, Jennifer Connelly, Hayden Christensen, Angelina Jolie, Gisele Bündchen and most recently David Bowie in its marketing campaigns. On 2 August 2007, the company announced that the former USSR leader Mikhail Gorbachev[29] would appear in an ad campaign along with Steffi Graf and Catherine Deneuve. Many rappers, most notably Kanye West, Juicy J and Wiz Khalifa have mentioned the company in certain songs.