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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
REFERENCES Atwal, G., & Williams, A. (2009). Luxury brand marketing -- The experience is
everything! Journal Of Brand Management, 16(5/6), 338-346. Baek, T., Kim, J., & Yu, J. (2010). The differential roles of brand credibility and brand
prestige in consumer brand choice. Psychology & Marketing, 27(27), 662-678.
Deuk-Kyu, B., & Wonsuk, C. (2009). Hyundai Genesis: Taking the Korean car to the next level. SERI Quarterly, 84-93
Dunn, M. J., & Searle, R. (2010). Effect of manipulated prestige-car ownership on both sex attractiveness ratings. British Journal Of Psychology, 101(1), 69-80.
Fionda, A. M., & Moore, C. M. (2009). The anatomy of the luxury fashion brand. Journal Of Brand management, 16(5/6), 347-363.
Han, Y., Nunes, J., & Drèze, X. (2010) Signaling status with luxury goods: The role of brand prominence. Journal of Marketing, 74(4), 15-30.
Kapferer, J., & Bastien, V. (2009). The specificity of luxury management: Turning marketing upside down. Journal Of Brand Management, 16(5/6), 311-322.
Mercedes-Benz S-Class facts and figures. Retrieved May 30, 2012, from http://www.mercedesbenz.ca
Monga, A., & John, D. (2010). What makes brands elastic? The influence of brand concept and styles of thinking on brand extension evaluation. Journal Of Marketing, 74(3), 80-92.
Scemama, C. (2011, July 8). Le marché du luxe en pleine ébullition. L’express. Retrieved from http://lexpress.fr
Vickers, J. S., & Renand, F. (2003). The marketing of luxury goods: An exploratory study--three conceptual dimensions. Marketing Review, 3(4), 459-478.
Wang, H. (2008). Innovation in product architecture—A study of the Chinese automobile industry. Asia Pacific Journal Of Management, 25(3), 509-535.
Yann, T. (2010). Personal aspirations and the consumption of luxury goods. International Journal Of Market Research, 52(5), 653-671.