Ch. 2 - Strategic Planning for Competitive Advantage

You know the bag.

The chocolate-brown leather canvas emblazoned with quatrefoils and the LV monogram is immediately recognizable as the international symbol of globetrotting luxury. 
We all know that Louis Vuitton is known for its elegance and class. It's mission statement states to represent the most refined quality of western "Art de Vivre"(The Art of Living) around the world. Louis Vuitton product is a symbol of  creativity and elegance.
They need to maintain this reputation around the world.

Their main objectives are:-

1. Be creative and innovative
2. Aim for excellence
3. Portray  the image of the brand with passion 
4. Do the best in what they do.

SWOT ANALYSIS 

strengths
1. The brand is one of the oldest fashion houses  with more than 150 years of history
2.The brand is easily recognizable because of its logo and monogram canvas on most of its products
3. The brand has its presence in most of the large shopping hubs of the world
4.The brand is available exclusively in its own stores.
5.The brand also makes custom Tailored products for its few elite customers
6. The brand has a clientele including international celebrities
7. Extremely high brand recall and global presence.

weakness
1.The brand is available only in its exclusive stores making it difficult for people all around the world.
2. Fake imitations affect brand and sales.

Opportunities 
1.The company needs to adopt the current fashion trends to stay in business.
2. The company can offer once in a year discounts for its custom.

Threats
1. The brand is counterfeited all around the world
2. An Economic crisis can hurt the brand sales in a negative way.

Competitors

1. Prada  
2. Gucci 
3. Coach
4.  Chanel

OBJECTIVES
Louis Vuitton has established itself as one of the most high-end brands in the fashion industry. Its product is similar to other high-end fashion brands such as Prada, Gucci, Celine, Fendi, and Hemes. Its success and ability to remain in the market is because of its effective marketing mix.

Product
Louis Vuitton has established its own identity in this fashion industry. Nowadays people call it as LV. Louis Vuitton has established itself as a handbag that has a unique quality that makes customers choose between Louis Vuitton or nothing when shopping for handbags. 
Louis Vuitton does not  only offer to its customers' unique designs and high controlled quality products but also inducts  them  to form attachments by giving to each product a name instead of a serial number. 

Price 
Louis Vuitton chooses to price itself in terms of value rather than price, which is why they choose to mark its products at a very high level. Value refers to the benefit consumers receive for what they give. Its high-price makes consumers feel that they are part of an exclusive society when they carry a Louis Vuitton bag.

Place
Louis Vuitton chooses not to sell their products in department stores and instead establishes individual high-end Louis Vuitton stores. It distributes its products through its own stores located throughout the world, which allows it to control product quality and pricing. 

Promotion
Louis Vuitton advertisements mainly consist of celebrities. This is done in order to target the effective component of consumers’ attitudes by allowing them to feel a certain emotional connection. It gives consumers a social reference group that they are part of a group of celebrities. 

Effective strategic planning 
Louis Vuitton, the world's biggest luxury brand in terms of sales, is planning to dampen its expansion worldwide and focus on high-end products to preserve its exclusive image, said Bernard Arnault, chief executive of parent LVMH. Louis Vuitton, which is known for its LV-embossed handbags, has started offering customers made-to-order bags in exotic skins and created invitation-only spaces in its shops.Instead of opening new boutiques, he said, Louis Vuitton will expand existing ones, as well as offer customers a more personal relationship.