TANMAY TANDON

BBA-1

Ans: Marketing is the process of understanding consumer needs and serving to fulfill them.
In a market-oriented company all activities are focused upon providing customer
satisfaction. The company understands that the achievement of customer satisfaction is
dependent on integrating company wide efforts. The belief that customer needs are central
to the operation of the company runs through production, finance, research and other
departments. Decisions are taken in these departments keeping in consideration the
impact that the decisions will have on the customers. The essence and role of marketing is
to champion the cause of the customer and to orient the whole organization towards
serving customer needs. A company can achieve its corporate goals only by satisfying its
customers.

Ans: FMCG refers to fast moving consumer goods. Louis Vitton is among the top 50 FMCG.
Famously known as LV, is an iconic French luxury goods, this is the world's largest luxury
group with a strong presence all over the world. LV is a part of retail and lifestyle sector and
a luxury brand that caters to the elite section of society and to people who are fashion
conscious.

Marketing Mix of Louis Vitton (LV):

Product: Louis Viton is a luxurious brand and was put together to cater the fashion sense of
the high-class. Louis Viton Label includes offerings mostly for women but the company
has LV Homme for men and Baby LV for kids. Louis Vitton designs
and markets leather goods, ready-to-wear, footwear, fashion accessories, timepieces,
jewellery, makeup, fragrances and skincare products.

Place: LV products are exclusive and original. LV’s franchise stores are located at prime
locations in important cities like New York, London, Tokyo, Beijing and Paris. Headquarter
base of the company is located in the Paris in France. LV sells all its products through its
chain of retail stores in the global market and also through its various online stores at
lousivitton.com.
Price: LV markets its products for high-income group with help of its quality assurance and
exclusive creations. It targets customers who are elegant with a social distinctiveness. As its
products are of premium quality it has adopted a premium pricing policy for its products. LV
products at premium prices because at the end of a day it is a status symbol to be seen with
a Louis Vitton product.

Promotion: Louis Vitton is all about trust and relationship. Brand rewards the loyalty of its
regular customers by sending latest news about its products through email or mail. It also
offers invitations for pre-sale to selected few who are exclusive and regular buyers. Ziyi
Zhang, Blake Lively and Madonna are some of the celebrities who have been seen in public
wearing this brand. As promotion is a big aspect of marketing LV has published its ads at
proficient magazines like Vogue that caters to premium clients.

Ans: The concept of the 5Cs is used to analyse the five key areas in marketing decisions for
a company and includes:
Company, Customers, Competitors, Collaborators, and Climate.

1. Customer – Establish what are the needs of customers and clients that the organization
is trying to satisfy. A few areas of focus and research can be market segments, frequency of
purchases, and quantity of purchases, retail channel, and customer needs depending on
trends over time.
2. Company – Determine if the company is in a position to meet those customer needs. this
involves an analysis of the company’s product line, its culture, goals and objectives, and
image in the market. We also look at the company’s technology and experience. The main
aim here is to determine whether the company is in the best position to meet customer
needs.

3. Competition – The company needs to know who it is competing against in meeting the
customers’ needs. Is the other company a potential threat or an active competitor? How
many of them are there?

What are the rivals’ weaknesses and strengths? Is there anything you can do regarding
those weaknesses and strengths?

4. Collaborators - Collaborators are businesses or entities that can help the company
achieve its goals and objectives. Suppliers and distributors, for example, are collaborators.

5. Climate - When looking at climate, we are assessing macro-environmental factors, i.e.,

external factors.
 - The economic environment, political environment,
- regulatory environment, for example, are part of the ‘climate.’
- Society’s fashions and trends, i.e., the social/cultural environment, are also part of the
‘climate.’
- Examining the climate also includes analysing the technological environment

Ans: Firm can gain competitive advantage through differentiation of their product offerings
which provides superior customer value, or by managing for lowest delivery cost. In most
cases, an industry’s return on investment leader opts for one of the strategies, while the
second placed firm pursues the other. The two means of competitive advantages are low
cost of delivery and differentiation when combined with competitive scope of activities of
board versus narrow. This results in four strategies:

1. Differentiation (broad range of market)

2. Cost leadership (broad range of market)
3. Differentiation focus ( narrow range of market)
4. Cost focus (narrow range of market)

Ans: The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to
help with long-term strategic planning, help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue or develop
products. It's also known as the Growth/Share Matrix.

The Matrix is divided into 4 quadrants based on an

analysis of market growth and relative market share.

• Dogs: These are products with low growth or market

share.
• Question marks or Problem Child: Products in high
growth markets with low market share.
• Stars: Products in high growth markets with high
market share.
• Cash cows: Products in low growth markets with high market share
Ans:
Skimming Pricing : Product pricing strategy by which a firm charges the highest initial price
that customers will pay and then lowers it over time. As the demand of the first customers
is satisfied and competition enters the market, the firm lowers the price to attract another,
more price-sensitive segment of the population. The skimming strategy gets its name from
"skimming" successive layers of cream, or customer segments, as prices are lowered over
time.

Penetration Pricing: Penetration pricing is a marketing strategy used by businesses to

attract customers to a new product or service by offering a lower price during its initial
offering. The lower price helps a new product or service penetrate the market and attract
customers away from competitors. Market penetration pricing relies on the strategy of
using low prices initially to make a wide number of customers aware of a new product.

Predatory Pricing: Predatory pricing is the illegal act of setting prices low in an attempt to
eliminate the competition. Predatory pricing violates antitrust law, as it makes markets
more vulnerable to a monopoly.