MARKETING MANAGEMENT REPORT

LOUIS VUITTON IN INDIA

Apriyandi Budi Satrio

Fadila Karunina
Nadia Rinda Kumalasari
Nindia Ageng Kusuma Putri
Yogo Prihandoko

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUTE OF TECHNOLOGY BANDUNG
2019
A. CASE INTRODUCTION
Under pressure from Wall Street to sustain double digit growth rates, Louis Vuitton (LVMH)
was planning to enter new markets, beyond the traditional orbit in Japan, Western Europe
and the United States. It had developed a long-term strategy wherein it would not only
continue to invest in brands with high potential and develop its traditional markets but also
tap into the growing markets of China, India and Central Europe. The company found in the
rising affluence of Asian Markets, in particular, a natural growth platform. It was thus that the
company started working, in 1999, towards a formal entry into India
India was unlike the markets of the United States, Europe and the Far East in which Louis
Vuitton was doing business. It was a country of 1,03 billion, the second largest mass of people
occupying a single geographical teritory in the world, next to China. India had following a
socialistic pattern of economic development characterized by government ownership of
economics assets. Several multinational corporations (MNCs), such as Coca-Cola and IBM,
had exited from India in late 1970s because, although the market was huge, the official stance
at the time was anti-MNC.
While Examining its Indian option in the late 1990s, Louis Vuitton made the important
observation that “the rich in India were flying to London, Dubai, Singapore, New York and
Paris to shop because there was nothing available in India for them to buy” It did not take
long for Louis Vuitton to articulate two clear long term goal : to open a Louis Vuitton store in
every Indian City with a population of 10 million plus and to acquire a cummulative customer
base on million in India by 2010.

B. PROBLEM STATEMENT OR CASE QUESTION

1. What is the problem Statement that Louis Vuitton in India?
2. What should be marketing strategies to identify and develop more customer in Super
Rich category?
3. Should Louis Vuitton enter into any new customer profile segmen?
C. ANALYSIS OF ALTERNATIVE ACTION/OPTION
The STP Analysis

REMARKS
Segmentation  The first category consisted of those who
bought a luxury product for its superior
functionality and quality
 The second category comprised those who
perceived luxury products as a reward and
status symbols to make personal statement
 The third category was the smallest and
consisted of younger customer, with a higher
proportion of males than the other categories,
and saw the luxury product as a self-
indulgence
Targeting  The rich and famous people in India
Positioning  As a luxury brand and status symbol of wealth

SWOT Analysis

REMARKS
Strength  Global presence
 Oldest fashion house in India
 Recognizable logo
 Elite Customer
Weakness  Available only in its exclusive store
 Fake imitation
Opportunity  Expansion into new countries
 Increase advertising impact
Threat  The brand is counterfeited all around the world
 Economic crisis can hurt the brand sales in a
negative way
 1. What is the problem Statement that Louis Vuitton in India?
Answer :

a. Challenges faced by the brand

 Location problem
 Inability to identify potential customer
 Lack of media advertising

b. Customers take on Louis Vuitton

 Limited variety in stores
 Slow service

2. What should be marketing strategies to identify and develop more customer in Super Rich
category?
Answer :
 Make an awareness : The goal of the Louis Vuitton in India is to make the “new
elite” aware of the brand, such as create some Fashion show, due to the influence
of Bollywood Movies in India society, they can place product in there and make an
ambassador from the influence woman who have been succesful and a role model.
 State exclusivity to show that Louis Vuitton is a premium brand that distinguishes
the target (super rich and the near rich) from other lower tiers of the population
 Make a advertising statement message that says “I have succeeded” , “I made it”
– this theme will give the sense of achievement for those who aspire to own one
Louis Vuitton
 Make a LV Exclusive Card that have some advantages and extra service to
increase the brand loyalty and the feeling of the exclusivity

3. Should Louis Vuitton enter into any new customer profile segmen?
Answer :
Louis Vuitton can enter new customer profile segmen with the condition of :
 The segmentation limited to the middle class customer
 Targeting the customer who have income levels and spending habits high
 Potential to develop a taste for luxury and become loyal consumers

D. RECOMMENDED ACTION
Conclusion

 A luxury brand needs to understand their customer and Louis Vuitton fails to do so in
New Delhi
 Quality and quantity plays a vital role in building up a brand
 Variety and Customer service have a direct relationship with consumer behaviour
 Recommendations

 More Stores of Louis Vuitton in Delhi

 Provide wide variety and better customer service
 More polite & amiable employees
 Focus on building database of traditional customers and new HNWI
 Market to potential customers with promo brochures, special viewing invitations,
personal tours of private museum, viral marketing, referrals and word of mouth
 Promotional strategies around key holidays, Religious and cultural holidays include
gift exchange
 Leverage endorsements to drive consumer awareness - Celebrity culture very strong
in India

E. LESSON LEARNED (NEW INSIGHT/NEW IDEA TO APPLY IN DIFFERENT CONTEXTS)

1. Make a Luxury Retail Cluster (LRC) or Franchise
2. Make a Duty Free Store that can attract tourist