Marketing Management Project

REST

Submitted by,

Group 5
Anjana K
Krishna S
Alina Benny
Jithin A Kumar
Festin Francis
Sooraj Krishnan C
EXECUTIVE SUMMARY

Louis Vuitton is a French Fashion house and luxury retail company

founded in 1854 by Louis Vuitton. The label’s LV monogram appears on most of its products
ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewellery,
accessories, sunglasses, coffins and books. Louis Vuitton was named the world’s most valuable
luxury brand. Headquarters is in France at Paris. The mission of the LV group is to represent the
most refined qualities of Western “Art de Vivre" around the world. They deal with various business
segments like wines and spirits, fashion and watches. This company has about 70 brands in about
3950 stores across the world. Its products have always been standard in quality and design. It is
one of the most legendary of fashion house in the world.

COMPANY AND PRODUCT DESCRIPTION

This is a company which produces luxury leather goods, ready-

to-wear, shoes, watches, jewellery, accessories, sunglasses and books. And the new product
launched by LV is luxury coffin. The name of the luxury coffin is LV REST. It is made up of pure
leather with hand crafted works. It has specially designed handles with diamonds, special slot for
keeping the birth stone of the person. It also uses high quality sandal and teak woods. The
packaging is done with wooden boxes with dry flowers and perfumes. The attraction of this product
is that it is custom-made and it mainly focuses on high profile people
STRATEGIC FOCUS AND PLANNING

The main core competencies of LV are potential leadership, unique and quality product,
distribution channel, communication and price. LV maintains innovation and the creativity by
retaining the best talent and top designers in the industries.LV has manufacturing efficiency as it
maintains and controls the cost and helps in efficient management of the brand that people believe
are better than the competitors .LV creates value for the customers, though the products are
expensive. However, the core competencies are not fully utilized as a company emphasize on
creative freedom but these freedom is only enjoyed by star brands and less focus is given to small
brands. Every companies goal is to get profit along with customer satisfaction without
compromising on quality. So as ours. The ultimate goal of the LV Rest is to give a grand rest to
our customers. i.e., those who live in luxury should rest in luxury.

SITUATION ANALYSIS

Immense competition in the segment makes market share growth for LV slow. Fake imitations
affect brand reputation and hurt sales. Fake products all around the world sometimes affect the
business. Increasing competitor activity lead to decline of sales of LV. Economic crisis and
recession can adversely affect LV’ S business. Government policies on international trade can
slowdown operations. The funeral business is in churn, but the big players aren’t hurting, they are
consolidating their monopoly. With increased mobility, scattering ashes starts to look like a more
attractive option than burial in a place where you may never return.

STRENGTH

Strong association to quality: In the luxury segment customers are always fussy about the quality
of products that they use and are willing to pay a premium for it. Louis Vuitton products have
always been the benchmark in quality and design. The strong association with quality is LV’s
biggest strength.

Brand recognition: The Louis Vuitton monogram is high on recognition and thus people prefer
to carry LV monogrammed luggage since it is an association with status and class in society.

Exclusive Merchandise: Louis Vuitton is known for their personalized luggage options which are
monogrammed to indicate their label. Their exclusive brands will guarantee that your luggage
stands apart from the crowd and is not carried by anyone else.
WEAKNESSES

Excessive centralization: Louis Vuitton is known to be a tough employer and their focus on
exclusivity makes them patent or copyright most of their designs and they rely on centralized
decision making which brings down the morale.

Lack of sensitivity to foreign cultures: Louis Vuitton is French in styling and design and the brand
is much closer towards accepting other designs and is also not sensitive to trends in foreign
countries.

Exorbitant Pricing: Louis Vuitton is a luxury brand and a basic offering from the company costs
about 1500 USD. This makes it impossible for the masses to purchase even a LV bag or suitcase
and thus the company targets a niche market.

OPPORTUNITY
Rowing market potential: The global market for luxury goods is estimated at around 42 billion
dollars with a growth rate of 4 percent per annum. This could be a huge opportunity for luxury
merchandise companies.

Increase in the number of working women: The need for status symbols is growing at the
workplace as more women enter there. This creates a significant opportunity for Louis Vuitton in
their prime segment which is formal luggage options.

Rise in per capita income: Most countries across the world have seen a significant increase in the
per capita income with the result that disposable income is indicating a sharp increase as well. This
is expected to create a surge in demand for non-essential items and luxury goods.

THREAT
Counterfeiting: The biggest threat that luxury good face today is that of counterfeit products in
the market. The presence of counterfeits not just gives the brand a negative image but also dilutes
the market share.

Managing multinational customization: The forte of Louis Vuitton is their ability to create
exclusive merchandise and this means that they would also need to customize for individual
cultures. Their team which mostly comprises of European designer will find this a huge challenge.
MARKETING PROGRAME

Pricing

We sell our luxurious custom made coffins at the rate of Rs.10 Lakh per coffin which includes
our manufacturing expenses, transportation cost and tax.

Distribution

By collaborating with the agents who conducts funeral functions for high class people and also
through official outlets of louis Vuitton.

Promotion

Louis Vuitton custom-made luxurious coffin, being a luxurious brand it can be marketed through
advertising about its latest product specification in International magazines.

Customer
Targeting high class business people

MARKET PRODUCT FOCUS

Since our product is a luxurious brand and merely there is no competitors, knowing about our
competitors and anticipating about their strategies is not relevant.
EVALUATION AND CONTROL

Strategic evaluation and control is the process of determining the effectiveness of a given strategy
in achieving the organizational objectives and taking corrective actions whenever required.
Control can be exercised through formulation of contingency strategies and a crisis management
team.
Control includes;

Revenue

The revenue for LV Rest is about 1.5 crores per annum on an average of selling 15 coffins per
year.

Expense

The expense will be 45 lakhs per annum on an average of selling 15 coffins per year.

Customer Reach

We will get the customer reach via funeral homes and brand outlets

SUPPORTING INFORMATIONS

A reaction of utmost curiosity mixed with awe seems almost par

for the course. Who was this mysterious LV Rest super fan?
It’s pretty unlikely that the unorthodox resting place was actually
created by Louis Vuitton the authenticity of the picture does make us think that somebody really
did love this collaboration that much. As far as final resting places go, LV monograms are
definitely better than anything else
LV REST