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.

Ch. 14 - Marketing Channels and Retailing

Louis Vuitton store Macy's Herald Square
Macy's, 151 West 34th Street, 1st Floor, New York, NY 10001

I recently visited the Louis Vuitton store in Macy's herald square 1st floor. The store itself is very elegant, it’s not one of the biggest stores in New York but is one of the busiest. The largest store in the US is on Fifth Avenue New York and is absolutely breath-taking.

The luxury store offers a truly unique shopping experience with its leather goods, classic men's and women's ready-to-wear, modern timepieces and jewelry, and uptown-chic footwear. Past the towering wooden grids that showcase the famed handbags lie the relaxed suits and ultra-feminine knee-length skirts that typify Vuitton's polished look, punctuated by bright colors and soft accents for a swank mix of tradition and modernity; this familiar style is echoed throughout Vuitton's designs, from the monogrammed canvas belts to the red ostrich-leather wrist watches. The displays are elegantly furnished; every item seems to scream buy me. The customers service is also excellent, the sales associates wear black suits with the tag of their name and they're not pushy, but well informed about the products and very professional. The atmosphere is without any doubt welcoming and is really hard to get out without buying anything. Louis Vuitton uses e-tailing as well, its website is very elegant, informative and easy to navigate, the background music makes the shopping online even more pleasant. The website offers all services that you can find in the store, there are different ways you can contact a professional if you need any help, such as chat option, phone or call back option. The website offers personalized service as well. Louis Vuitton's use of personalized e-commerce shows marketers how luxury brands can preserve their exclusive shopping experience and aspirational brand image online. Louis Vuitton is able to offer its traditional personalized service to its community of Facebook users via its Mon Monogram app. Users discuss purchase to a much greater extent than for other post topics, suggesting the app can act as a call to action while maintaining Louis Vuitton’s luxurious brand image. Alongside its posts about culture and travel, Louis Vuitton's Facebook page features the Mon Monogram app.  which allows members to fully customize their bag with hand-painted personal initials and stripes on the color and direction of their choice. They are then prompted to visit the Louis Vuitton store to purchase their customized bag. Users of the app can also send “virtual” gifts to each other, adding a social dimension to the experience.

Ch. 6 - Consumer Decision Making

In a world filled with different social classes and values, Louis Vuitton does a brilliant job targeting all of these groups. Like mentioned in the mission statement  section, Vuitton's products notoriously represent wealth and luxury. The wealthy want Vuitton in order to differentiate themselves from the lower classes, while the less wealthy want Vuitton to feel like they have achieved what the wealthy has. When purchasing a Louis Vuitton product, consumers are driven by social factors, cultural factors, psychological factors and individual factors. The external stimulus of the consumers comes from a wide range of factors such as the continuous innovation of the products. Louis Vuitton has added ready to wear line, fine jewelry, watches and shoes to its collections. Along with the innovation of the products the company has adopted the new technology. The Mon Monogram application allows the consumers to customize their products. Louis Vuitton advertises its products

through multiple channels, from print advertising to commercials, billboards, magazines and social media. The nonmarketing-controlled information source comes from hundreds of blogs, and review websites where people talk about the brand, lifestyle-related posts help associate Louis Vuitton with elite culture are successful in driving purchase discussion. When considering of purchasing a LV's bag the consumer is affected by conscious motives such as the high quality of the product that performs well, friends, colleagues or acquaintances

that already have a LV's bag, and limited edition make it more fashionable. 
I would say that the majority of Louis Vuitton's consumers are those that feel Vuitton will enhance their ideal self- image. Although there is a small percentage that buys Vuitton products like luggage and clothing  that lack monograms and extensive design because they are of the utmost quality. To them, the products are a smart investment that will serve to assist in their travels and wardrobes.
Overall I feel the decision-making process for Vuitton mostly entails want. Price is secondary to the initial desire for the product. Most consumers will find a way to save and purchase if the yearning for a higher self- image is present.