2015

A Case Study of Louis Vuitton

Bancha Jenpiyapong &

Huang Shang
Bangkok University
6/25/2015
Contents
Logo Brand of Louis Vuitton................................................................................................................ 2
History of Louis Vuitton ...................................................................................................................... 2
Timeline of Louis Vuitton .................................................................................................................... 4
Key facts of Louis Vuitton ................................................................................................................... 5
The Launch of Products from Generations to Generations ................................................................ 6
Naming the Products of Louis Vuitton ................................................................................................ 7
The Identity of Louis Vuitton .............................................................................................................. 7
Brand Equity of Louis Vuitton in Past 5 years ..................................................................................... 8
Brand Positioning ................................................................................................................................ 9
SWOT Analysis about Louis Vuitton Brand ......................................................................................... 9
The Body, Soul & Conscience ............................................................................................................ 10
Global Integrated Brand Promotion ................................................................................................. 12
IMC Plan for Louis Vuitton ................................................................................................................ 14
Recommendations ............................................................................................................................ 17
References ........................................................................................................................................ 20

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Logo Brand of Louis Vuitton

History of Louis Vuitton

Talking about France, not only people will think of Eifel but also Louis Vuitton, a renowned
French product brand. Louis Vuitton or many people call it LV is a fashionable product
company which was named after Mr. Louis Vuitton as a founder in 1854.

The origin of Louis Vuitton can go back to the early 19th century when the French railway
company wanted to change the rotten and damaged cow leather of seat covers in the first
class to synthetic fabric clothing which is softer and more durable. Also it is easier to clean
this clothing than any leather. The producer designed a 4-petal yellow oak flower and placed
the crossed LV characters, which was his initial, on dark brown clothing instead of W L
which stands for Wagon Lit. After the production of embroidering the crossed LV characters
was completely finished and ready to go for the ending process to cover the train seats, the
railway company found out the mistake. Then the railway company rejected all of the
production and suspended all the synthetic fabric clothing. At last, all of the rejected synthetic
fabric clothing was modified and it was used for other purposes by the factory. Not to lose all
made materials, the synthetic fabric clothing was used to cover luggage and the structure of
wooded boxes attached by metal knots for durability which were popular during that era.
Before that they used cow leather to cover the luggage and wooded boxes. After that the
producer used his full name Louis Vuitton as a trademark even since and that is the origin
where the luxurious world class product brand Louis Vuitton or LV emerged.

Later, the wooded boxes by Louis Vuitton became well-known among sea travellers because
of its different quality from the cow leather. Louis Vuitton’s luggage was lighter but can
contain more belongings and it is more convenient for transportation. Besides, the LV boxes

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did not absorb liquid, no matter
it is rains or sea water. Further,
upon being placed amidst other
luggage or boxes, the LV ones
looked more outstanding than
any other luggage because of its
special design, easy for bell
boys or owners to recognize and
point out at the luggage of
Louis Vuitton.

There is a story that once

Eugénie de Montijo, the last
Empress consort of the French
as the wife of Napoleon III,
Emperor of the French, was
present on the ocean ship to preside over the ceremony to open Suez Canal, an artificial sea-
level waterway in Egypt, connecting the Mediterranean Sea and the Red Sea in 1869. She
used over 10 different sizes of LV luggage to contain her clothes and belongings which look
the most fashionable in that era.

From Paris to Alexandrea and Cairo….From Venice to Istanbul…..From Calais to the United
Kingdom and across Atlantic to New York… This made the luggage by Louis Vuitton
become chick and luxurious accessories that scion of royal houses and high-class people in
Europe became aware and looked for LV boxes for use. Later the fashion of LV has spread to
people in entertainment industry from Europe across Hollywood. This popularity has
extended to entertainment business people in Asia that are willing to buy the LV products as
a souvenir when they join the Cannes Film Festival where the boutique shops of Louis
Vuitton are open in Nice, Cannes and Monaco. These LV shops are well-known among super
stars, celebrities and wealthy people who spend a summer holiday there.

In many occasions, the trademark LV luggage are seen in the big movie production of
Hollywood movies such as Roman Holiday, Titanic, The Italian Job that used the overnight
bag by Louis Vuitton to deliver gold which represent and guarantee the durability and

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indicate the taste and influence of this brand towards movie makers and fans with the unique
catching eye identity than any other product.

Since 1896 onwards, the LV boxes with the monogram design has been showcasing its
special quality that no other brand can provide. That is the durability and worthwhile in terms
of costs. The LV boxes are not like any other brand that mostly come with the heavy size but
easily rotten during delivery. The LV luggage is much more durable; especially around the
edges that is well sewed. Because of no foul and stinky smell and easy maintenance, it make
the LV brand even more popular.

With words of mouth, Louis Vuitton has become the best French product brand seller in the
past decades even though there has been a very rare change in design of the LV products. Its
most sale revenues come from its small shops in Paris.

At present, Louis Vuitton has over hundreds of boutique shops selling its own brand products
at major cities throughout the world. The more the LV boutique shops are open, the more sale
revenues increase. There are many product lines available at the shops such as clothing,
wallets, handbags, belts, luggage, fashion jewelry, sunglasses, key holders, scarves, technical
cases, key & card holders, and so on for both females and males. And just the past few years,
Louis Vuitton has offered a more selection of designs and colors of the products for
customers to choose.

Furthermore, the company uses the strategy to limit its amount of purchasing and the
residential area of buyers; however, it urges the sale revenues among LV loyal customers to
travel from cities to cities to shop their beloved LV products though they have to pay a lot of
money to possess them.

Nowadays, many people use LV products to show their taste, fashion and social class status
unlike 2 decades ago that Louis Vuitton represented the experienced travelers.

Timeline of Louis Vuitton

Louis Vuitton clearly separates the ownership
from production, management and marketing
that may make the brand have the highest sale
revenues among fashionable handbags.

House of Louis Vuitton:

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  Generation 1: Louis Vuitton from 1854 was a wooded box maker and ran the business
as the business owner
 Generation 2: George Vuitton from 1896 launched Monogram Canvas
 Generation 3: Gaston Louis Vuitton
 Generation 4: Brothers, Henry and Claude
Patrick Louis Vuitton

In 1970, Henry Louis Vuitton separated the ownership from the management.

 Generation 5: Patrick Louis Vuitton, the oldest son of Clause created the special order
passing the sense of beauty and technology of Louis Vuitton through 6 generations for
161 years.

Key facts of Louis Vuitton

 The trademark “Louis Vuitton” is
a group of fashion product
company which has Louis
Vuitton Malletier as a producer
and distributor.
 Malletier means a box maker.
Louis Vuitton Malletier is the
company that produce and
distribute handbags, which is
independently separated from the
House of Louise Vuitton whose
CEO is Yves Carcelle.
 LVMH Moët Hennessy Louis
Vuitton is a shareholding
company looking after 50 brands
led by Bernard Arnault. LVMH is a combination between 2 big companies which are
Louis Vuitton and Moët Hennessy that bought more than 50 brands such as Christian
Dior, Givenchy, Celine, Fendi, Donna Karan, Loewe. Recently the companies have
sold some brands out.

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  Marc Jacobs is Director of Art at Louis Vuitton since
1997 responsible for the design such as Prêt- a-porter,
the high class clothes and new models of bags. He
also owns his trademarks including Marc Jacobs,
Marc by Marc Jacobs.

Marc Jacobs

The Launch of Products from Generations to Generations

 In 1854, Grey Trianon Canvas was the first few

handmade product items of Louis Vuitton made of brown canvas and they are water
resistant. This item was popular because they can be pied up.
 In 1872, to prevent any copy, the company
developed the design into 2 layers. The product
was introduced in the red and beige crossed
design.
 In 1876, it changed to brown and beige by
copying from the first items up to now over 150
years, the production still continues.
 In 1888, Louis Vuitton launched the Toile
Damier design and registered the
trademark/copy right. It was the first time that
the copy right of the design was registered in the world.

In 1896, George Vuitton from the second generation launched

the Monogram Canvas design of which the design comprises of
the characters LV, stars and flowers.

 In 1925, ALMA, the special order bag, was born as

Gabrielle Bonheur Chanel ordered it to be made.
 In 1926, Louis Vuitton was present in front of Eugénie de
Montijo, the last Empress consort of the French as the wife of
Napoleon III, Emperor of the French. And this year, he
provided a set of tea cups for the King Borada of India and it
has become the beginning of the Epi Line.

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  In 1998, the launch of Damier as the basic product items again after it disappeared for
100 years.

Naming the Products of Louis Vuitton

Louis Vuitton will never distribute its products to the market without naming them. If Louis
Vuitton named its products by running the numbers, its product probably look simple and
lifeless like any other brand. Hence, even a small product item of Louis Vuitton has a name.

Louis Vuitton names its products according to the products’ shape. For example, a small
circle bag with a holder will be named “Papillion” which means a butterfly in French.
Besides, some products of Louis Vuitton are named after a city name like Soho, Broadway

The Identity of Louis Vuitton

The numbers of the products made will be the same as the products are sold and the
production will be suspended when the sale revenues reach the target set. The idea of this is
that it will look the brand looks cheap if there are too many products in the market, they will
look normal that anyone can have.

Louis Vuitton distributes the products by itself without any agency and no wholesale. The
company will sell its products to only official agents that has a central management shop in
the area of the world which is the boutique shop at major cities by using the scale 1 shop per
the population of 1 and there is a limitation to have the same product designs for 1-2 pieces
only.

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Louis Vuitton is the only brand in the world that has no TV commercial, no second product
line, no promotion on sales, no free item to give away. Louis Vuitton also has no set of
products for sales, no outlet, no license for any other third party. Pricing is the round number
only. Since operating the business for 161 years, Louis Vuitton never gives any discount for a
promotion.

Brand Equity of Louis Vuitton in Past 5 years

Year 2010 2011 2012 2013 2014

Value 21,860 $m 23,172 $m 23,577 $m 24,893 $m 22,552 $m
Change +4% +6% +2% +6 -9%
Rank 16 18 17 17 19
SOURCE: http://www.interbrand.com/en

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 Brand Positioning
The brand positioning of Louis Vuitton in Singapore as compared to Hermès, Gucci and
other fashion brands (based on pricing and exclusivity):

SOURCE: https://louisvuittonbrand.wordpress.com/brand-positioning

SWOT Analysis about Louis Vuitton Brand

Strength Weakness

 Rich history and culture  Limited customer base

 Superior Craftsmanship  Increased in debt burden
 Strong presence in leading commercial hubs
Opportunity Threat

 New image revamps  Proliferation of counterfeiting poses the

 Continuous innovation and support biggest challenge
 Growing market for luxury goods in Asia  Rising advocacy against the use of animal
Pacific countries skins

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 The Body, Soul & Conscience

The body-Tangible or physical properties of the product

Trademark Monogram is the symbol of LV. The body is the LV product, and even the store.

The trademark monogram on almost all of its leather goods allows consumers to immediately
identify the brand, even from a distance. This is part of the reason why Louis Vuitton
handbags and luggage sets became so popular – consumers sought after an exclusive symbol
of wealth and stylish elegance that could be spotted a mile away.

The soul- Components of soul, Emotional side, Characters, Personality and Culture.

Volez! Voguez! Voyagez!’ These motivating French words splashed across a vintage Louis
Vuitton advertisement poster summarize the spirit of the brand. Literally translated as “Fly!
Sail! Travel!”, it’s a message that seems plain enough.

However, the French words take on a double-entendre meaning, pushing men to spread their
wings, take off, wander, discover — to live life every day with the spirit of adventure by
donning a jacket reminiscent of the mountain climbers in the Alps or a sexy thigh-high fishnet
boot with trompe l’oeil shoe attached to offset an otherwise demure appearance

Louis Vuitton is all about travelling. One can imagine long walks in the mountains, winding
through un- marked paths lined with snow-covered trees. The crunch of fallen branches
beneath your boots and the invigorating cold wind in contrast with a bright clear, sunny
winter’s sky. It doesn’t matter where you go or what the final destination is; all that matters is
that each step is taken with authority and confidence and that the journey itself is pleasurable.

That, in summary, is the true soul of Louis Vuitton, the French luxury fashion house that had
its beginnings as a malletier creating durable, stylish trunks and luggage destined to house
everything one needs to fulfil man’s thirst for voyage and discovery.

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The conscience- Arrived from the promise that promise that the brand commits to
customers

The conscience of LV is : Vivéz La Vérite: Live the Truth LV is committed to staying true to
its roots and its heritage, and this will be brought across in its advertisement. Its print
campaign also supports our brand strategy, by welcoming consumers to LV The Story – to
become fully immersed in L.V’s unique history as well as the process by which the products
are made.

This advertisement is meant to showcase how art has permeated the essence of Louis Vuitton,
and to showcase the integral role that art has played in shaping LV’s heritage.

To showcase LV’s heritage, LV use the top positive celebrity role model (according to
Milward Brown Agency) as brand ambassador to reinforce the essence of its brand.

For example, Eiffel Tower is a significant icon of Paris which LV originated, hence by
stacking the different LV luggage mimicking the Eiffel Tower, it forms a unique icon for
Louis Vuitton which also signifies the truth of Louis Vuitton’s heritage.

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 Global Integrated Brand Promotion

The current rise and domination of the Louis Vuitton Moët Hennessy Empire in the luxury
brands is not merely a coincidence or luck but rather something achieved through its unique
strategy that set Louis Vuitton apart from other brands. Louis Vuitton’s core principles
highlight the elements of uncompromising quality, exceptional craftsmanship, the value of art
and the protection of heritage. These elements are strongly incorporated in its’ long term
sustainable strategy and can be seen in its marketing mix 4Ps

 Product -A Balance Between Modernity and Tradition

Customers pay hundreds of dollars for its logo canvas bags, for example, partly because they
have bought into the notion that skilled craftsmen make them the old-fashion way. Although
the company has been modernizing gradually for some time that reputation is still important to
the company’s success.

Rather than eradicate the time consuming hand-crafting procedures of the manufacturing
process, it is crucial to keep some of the traditional aspects that the brand is known for. This
needs to be maintained by a balanced supply chain system which merges technical
advancements with traditional know-how.

 Price-high and exclusive

LV consistently pursued a luxury pricing strategy where there are high mark-ups and limited
availability. In essence, Louis Vuitton places its emphasis on the absolute value of the
products, not price. This is further supported and developed by Kyojiro Hata, the president of
Louis Vuitton Japan whose principle of philosophy is “Every products of LV are Money”. All
these elements drive up the brand cachet and make Louis Vuitton the well known luxury brand
of the earth.

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  Place

Louis Vuitton does not merely seeking to create broad distribution channels by opening more
stores or selling through non-department store outlets.

Instead, Louis Vuitton bags are only offered through limited distribution channels, its own
stores, a series of high end departmental stores throughout the world, which allow it to control
product quality and pricing. More importantly, by using its own channels that can be
controlled, it allows LV to prevent counterfeit products entering its distribution channels. Up
to date, LV has opened its stores in more than 60 countries including USA, UK, Japan,
Singapore, Kuwait etc.

 Promotion

Louis Vuitton has a well-known reputation as it is the company of Louis Vuitton Moet
Hennessy group, the largest luxury goods advertiser in the world. Regardless of the economic
situation, budget for marketing campaigns keeps increasing non-stop in order to maintain the
prestige image of the brand. Unlike other luxury brands, Louis Vuitton deploys a marketing
strategy which controls its product to make it appear to be premium quality but
attainable.Thus, it continues expanding its broad consumer base without losing its image.

However, Louis Vuitton has never believe in doing sales or giving discounts. This serves to
protect its brand image and maintain the value of its products in the long run.

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Louis Vuitton uses high quality print
advertising in high fashion magazines
including Vogue, on billboard in major cities,
on television programs and in the cinema. In
its advertising campaign, LV carefully
cultivates a celebrity following and has used
both famous models, actresses and other
recognizable figures such as the former
USSR leader Mikhail Gorbachev along with
Madonna or Catherine Deneuve.

In 2011, Louis Vuitton (LV) unveiled a new

advertising campaign featuring Godfrey Gao,
a Taiwanese-Canadian actor and model —
the first time the company has used an Asian
man to showcase its products. This move to
feature an Asian male in their advertisements
is a clear acknowledgement of Asia’s
growing spending on luxury goods,
particularly the Chinese men.

IMC Plan for Louis Vuitton

Online: Louis Vuitton has a well developed presence online – including mobile applications
with over 1,000 monthly users, a YouTube channel, a Facebook page with over 17,757,688
“Likes,” and a Twitter account with over 4.45 million followers. To capitalize on this strong
online presence, the visuals, videos and advertisements for the cosmetic line will be featured
across all online channels.

Facebook: Incorporate life style and culture into current Facebook page. Include promotional
videos featuring pop star. Additionally the page will include pictures featuring the makeup and
press releases of celebrities wearing the new makeup line.

Twitter: The Twitter page will include updates on the product line. For instance, the face of
the line, Leighton Meester, will promote the line through her account and the tweets will be
featured on the LV Makeup Twitter page.

YouTube: Attempt to create buzz around videos to stimulate curiosity around the line. The
videos will be vague and a call to action to visit the website to receive more information about
the line including the ability to buy the product.

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Celebrity endorser: Louis Vuitton begins the creative development of the advertisements,
which will include negotiation of a contract with local super stars, such as Chinese actress Fan
Bingbing. The photos of them will be incorporated into each media vehicle of the campaign.

Product placement: for example, LV did placement advertising in CW’s Gossip Girl. This
product placement occurs in the last 10 episodes so that the product is top of mind and
relevant to the launch of the makeup line at Fashion Week in that year. And Louis Vuitton
trunk is fashion icon on films already. Hence, it should do more placement advertising in the
future.

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Billboards: LV advertises in major metropolitan cities across the world. The advertisements
displayed on these billboards will act as teasers, hinting at the launch of a new product by
Louis Vuitton, with the intention of building hype leading up to Fashion Week. The only text
in the advertisements will be the date of the official launch of the new product line so as to
build anticipation.

Catalogs: To coincide with LV new product announcement we plan to giveaway 10,000 high
quality 6x9 booklets containing full page photos of the new makeup line. These booklets
include in the typical promotional gift bags, commonly known as swag bags that are given
away at Fashion Week.

Magazine Advertisements: Full page, color advertisements will be printed in all major
fashion magazines around the world in which Louis Vuitton currently advertises. Print ads
will be consistent in message and imagery and will be uniform across all communication
channels.

Samples: Offer free samples to priority customers and with in-store purchases. Additionally
samples will be given out in special bags given out during Fashion Week. Hopefully recipients
will give powerful, free WOM advertising.

Sponsorship: Louis Vuitton, sponsorship

represents more than simply supporting a
great sporting event, it also reflects the
trailblazing spirit that has characterized Louis
Vuitton from its beginnings and still holds
true today.

For instance, Louis Vuitton and the

America’s Cup enjoy one of the longest
partnerships in the world of sports (since
1983). For this 35th edition, the French
Maison is renewing its commitment to the
America’s Cup by becoming the title partner
of the America’s Cup World Series, the
America’s Cup Qualifiers and Challenger
Playoffs, as well as the presenting partner of
the America’s Cup Match.

In closing, the initial investment in the Louis

Vuitton product line will require a large initial investment in development, advertising, and
promotion. However, it is a natural and strategic move for the brand and will allow Louis
Vuitton to maintain a competitive edge in the luxury industry while capturing market and
wallet share from competitors.

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Recommendations
Louis Vuitton became the first fashion brand to broadcast a live fashion show on Facebook in
October 2009.

Kamel Ouadi, global digital director at Louis Vuitton, Paris. Once said “Social media is very
interesting and brings opposite personalities together. There’s this idea of openness and of
community [that] lets consumers connect and share.” He also said, “Social media emphasizes
the emotional aspects of a luxury industry that is sometimes perceived as arrogant and
distant.”

Louis Vuitton combines exclusivity with social media mass appeal. For example, the Louis
Vuitton uses its Facebook page to promote its major marketing initiatives and seasonal
campaigns. Users certainly don’t have to be in the list of 250 VIPs to see the fashion show
anymore, everybody is able to see the event live on their computers.

The luxury industry still has a lot to learn about web 2.0 and must try to understand not why
but how they can handle it. In the future, to target different customers, there are diverse
strategies as following:

 For Status Seeker

A portion of LV consumers purchase LV due to their beliefs that owning LV products
demonstrates success and social status. In addition, with the increasing number of wealthy
tourists from China, Hong Kong, Vietnam and Thailand, this segment will continue to grow
fast. Consumers from this segment also purchase LV products more frequently to keep them
up to date with the latest fashion trends.

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For this segment of customers, LV should use social media to provide its fans with exclusive
video feeds from fashion shows, photographs of its latest product ranges and information
about new store openings.

 For Self-Indulger
This segment is the largest group of customers therefore a relatively high percentage of
growth is assumed. Similarly to the status seekers, customers from this group are willing to
pay a premium for products that express their styles as they enjoy the way the brand make
them feel.

The brand can use social media to

associate itself with exotic
destinations: Posts by Louis Vuitton
relate to exclusive destinations such as
Paris, Saint Tropez and Cannes. By
post photos from its stores in these
locations and comments about parties
attended in these premium
destinations. For example, one post
gives fans “exclusive pictures from the
party in Beirut” while other posts an
interview of a location shoot in New

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York. Fans on the Facebook site can discuss the brand in relation to classical music, art, travel
and sport. Fans say that they “love” the Espace Culturels exhibition and discuss their favourite
artists.

 For Quality Seeker

Quality of the product is the most
important factor to some consumers
when purchasing a luxury product. As
LV is perceived to have absolute
quality, we ascertain there is a potential
market that LV can tap on. However,
comparing to the status seeker and self-
indulger, a lower percentage is given
because this group of consumers
believe that LV products can last a long
period, hence they do not purchase
them often. The growth rate will
therefore be gradual but slow, which
justifies our assumed figure.

LV should stay at a high end brand, work with other famous magazines and newspapers, and
such as do more ads on of Forbes or New York Times (in both print and online version).

 For male user

Another key objective of the future strategy
surrounding male products will be as such: to build a
desirable portfolio of brand associations in LV’s male
consumers in order to change current male perceptions
that the LV brand is feminine and therefore
undesirable in a male product.

To summarise, the bid idea for Louis Vuitton’s social

media strategy is, bringing customers closer to its
brand, creating a lasting relationship, remaining the
most socialy active social media fashion brand and
selling more product.

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