The romance between classy fashion and technology have never been so much of an inspiring combo until Louis Vuitton announced a range of ai???Tamour Horizonai??i?? smart watches that run on Googleai??i??s Android wear software.Ai?? Aside Google the Louis Vuitton smart watch was also produced with help from Qualcomm. The device will be the latest to run on Android Wear 2.0, software developed in collaboration Google and Qualcomm.
For approximately twenty years, LVMH has played an important role in luxury market since its merge with LV; thereupon, LVMH is known as the world’s largest conglomerate of luxury goods under various categories and brands. Its revenue has grown every year- owing 40 percent of their incomes from LV. When the achievement of LV is examined, it is clearly seen that its success does not depend on theory (it follows a unique marketing strategy not utilized by most even its peer luxury brands.). The strategies of LV aim at creating appeal to its target customers and, as a consequence, it leads the customers’ purchasing decision. Therefore, the current rise of profitability of Louis Vuitton is not a coincidence. Rather, it results from effective marketing plans. Therefore, this article addresses the history of LVMH and Louis Vuitton, the structure of the 4 P’s of Marketing, and the analysis of the key marketing strategies of Louis Vuitton. This project is a part of the pre-sessional course.
This article focuses on the grand champion of the LVMH kingdom: the Louis Vuitton is a top seller in the top range in luxury brand which produces fashionable high-quality leather goods that inarguably everyone wants to own a piece. Even though the brand is well known, its marketing strategies have not been much disclosed. Firstly, this article will look at the history of LVMH company and the LV story. Then, i will examine the strategy of Louis Vuitton under the framework of the four P’s (Product, Price, Place, and Promotion). In addition, the secret principles of its successful strategies, which differ from those of general consumer goods, are evaluated.
The history of LVMH Moët Hennessy â€¢ Louis Vuitton
LVMH Moët Hennessy â€¢ Louis Vuitton S.A., usually shortened as LVMH, was founded in 1987 owing to mergence between Moët Hennessy and Louis Vuitton. Its headquarter is in Paris, France. Bernard Arnault, the president, owns 48% of LVMH. LVMH is well known as the world’s largest luxury goods under various categories and brands such as Christian Dior, Fendi and Louis Vuitton. Moreover, LVMH has many types of product, namely, Wines & Spirits, Fashion & Leather goods, Perfumes & Cosmetics, Watches & Jewellery, Selective retailing, and other activities. Therefore, it was a consecutive mixture, encouraged by the affinity of their core businesses, which led to set up of the LVMH group (LVMH, 2010).
The Louis Vuitton story
How Louis Vuitton was originated was an accident. In the early 19th century the train of France needed to change front skin of cushion in the berth of the first class rail. Since the front skin was decomposed and disintegrated, they wanted to change to synthetic fabric, which- at the time- was perceived as a modern material. This new cloth pad manufacturer designed a floral pattern of four lobes in yellow circle and used the letters V L cross, which was from his initials, instead of WL, which was an abbreviation of the word “Wagon Lit” meaning berth. The berth fabric was done and ready for use if the error of V and W did not present a problem. Consequently, the fabric was all rejected. In order to limit the loss, he used it to cover travel trunks. This became the source of the name LV. In 1854, he opened a store to sell his designs (Rawat, 2010).
The Marketing Mix (The 4 P’s of Marketing)
In This section, I will consider the market strategies of LVMH that make it is outstanding among top elegant brands.
According to Kotler and Armstrong , a marketing mix composes of four elements which are the parameters that are used to estimate the business situation and to help in the implementation of the right marketing strategies. The objective is to conceive a marketing plan that focuses on the customers (Kotler and Armstrong , 2008).