Saturday, October 29, 2011

Ch. 10 - Product Concepts


Louis Vuitton's products are undeniably recognizable to the general public. Whether or not a person owns, admires, despises, or cannot afford to buy Vuitton, nine times out of ten they can recognize a Vuitton product from a mile away.

The products Vuitton manufactures are of the utmost quality, ensured by warranty. Their brand is worth more than Tiffany, Fendi, Cartier, Rolex & Chanel combined. Their products are only sold thought its own superbly run boutiques with a no discounting policy (last sale in 1986).

With multiple collections under their brand umbrella, Vuitton represents a lifestyle. Through their branding and marketing strategies, they have made the idea of  lifestyle brand quite desirable. One can shop for handbags, luggage, small leather goods, shoes, ready to wear, watches, fine jewelry, books and stationary, and can add personalized monograms to any leather good. 




Their branding is genius, most recently they have felt that travel has lost its romanticism. Using this idea that traveling has fell short of a romantic experience, they decided to make a statement. Starting In 2007, Vuitton started showcasing their roots as a luggage maker using people who represent their core values as a company in their print ads. Colin Mitchell oversees Ogilvy's Global Strategy and Planning Group, which handles some of the world's most famous brands, including Louis Vuitton states: 
"We use Sean Connery, Keith Richards, Bono. These are famous travelers. They're more aligned with where we want to take the brand." He goes on to say, "We talk a lot about roots and wings...We need roots, a back story, but also we need wings to stretch forward into the future."


This idea of a solid vision enables Vuitton to be the most valuable luxury brand. The products represent so much more than wealth and materialism, it holds a high standard representing those who are (or would like to be) perceived as cultured and well traveled. 

Friday, October 21, 2011

Ch. 18 - Sales Promotion and Personal Selling

Louis Vuitton is a company that lacks sales promotion. Their items are never on sale, they never offer deals, and they certainly never give away samples. The brand that is Louis Vuitton is so coveted that it is unnecessary to offer deals. In fact, offering any type of discount would hurt the brand. The primary target market view themselves as elite, and use Vuitton to differentiate themselves; these people do not need to shop during times of sale prices.  Lack of promotion is something that draws them to Vuitton. 


Vuitton's producers insist that the product is of high quality, therefore any type of outlet to discount prices is unnecessary because their products are highly warranted. Furthermore, sales can promote a mentality that the discounted product is outdated, undesired, and/or overpriced. The perception of the products to the consumer can become tainted. I certainly have had this happen to me when shopping- my thought process is something like this: "Why would I buy from this particular store when there isn't a sale when I know I can get it for cheaper, and they are still making a profit!" If Vuitton offered discounts they would lose their power of prestige.  


Instead, Vuitton focuses on engaging customers in memorable experiences. Their employees work to emphasize the unique products and ensure a distinguished retail experience. The sales associates develop relationships with customers and create a comfortable, organized environment where the customer feels relaxed- not rushed. 


Something that adds the overall experience is the option to custom make a bag.  On Vuittons website they offer "Custom Made"... "Whether it is designed to fulfill a practical purpose or is an expression of individual creativity, custom-made leather goods is both functional and exceptional. All our special orders are hand made in our historical workshop in Asnieres near Paris. founded by Louis Vuitton himself." Here you are given the option to chose your design, leather and lining. 


Here is an example of what my personalized luggage tag would be...





Vuitton is a sponsor of the elite sporting event of yachting. The "America's Cup" trophy awards the winner of America's Cup match races between two yachts. This reaches the audience and target market of those who attend events such as yacht racing, these people most likely sport (pun intended) Louis Vuitton during their day-to-day lives. 





“We are extremely privileged that our vision for the next America’s Cup has attracted the return of a company like Louis Vuitton,” said Richard Worth, Chairman, America’s Cup Event Authority. “The 34th America’s Cup will culminate in 2013, marking the 30th anniversary of Louis Vuitton’s support of the sport of sailing, so we could not be more proud to see this great partnership continue and strengthen.”


Monday, October 17, 2011

Ch. 17 - Advertising and Public Relations

In 2007, Vuitton began using people who represent their core values as a company in their print ads. The idea behind this is to showcase Vuitton's roots as a luggage maker. These "real” people aka celebrities, run alongside their seasonal fashion campaigns. Most recently, U2 front man, Bono and his wife, are featured in Africa where they have long time fought to end poverty. Actor, Sean Connery’s ads showcase him in front of this home in the Bahamas.  Previous faces of the campaign include Sofia Coppola and her father Francis Ford Coppola sitting in Buenos Aires. Rolling Stone, Keith Richards in a hotel suite with a Vuitton guitar case, and Nobel Peace Prize winner and former President of the Soviet Union, Mikhail Gorbachev- in a limo passing the remaining part of the Berlin Wall.

Angelina Jolie is the new face of their Core Values Campaign. Shot in Cambodia where she is known to have adopted her first child, Maddox. It is undisclosed as to how much Jolie was paid for the campaign, but rumored to be around $10 million.

Running with Jolie's print ads, is a video featuring the actress in Cambodia, speaking about the life changing experiences she has had there. The video does not talk about Vuitton products, but focuses on lifestyle of travel and leisure. It showcases that Vuitton products not only accompany those who live a privileged lifestyle of ritz and glamour, but accompany those who have something to offer the world. 




Saturday, October 15, 2011

Ch. 15 - Retailing

Retailing Mix Elements for Louis Vuitton


In terms of product offerings, Louis Vuitton offers the utmost craftsmanship. Contrary to popular belief most Vuitton bags are of canvas material, not leather. The canvas, designed by Louis Vuitton himself, is coated in layers of shellac for waterproofing purposes. The products represent luxury, therefor, enticing consumers to purchase enhancing their ideal self- image, making their lives a tad- bit more luxurious.


Among it's 2,468 retail stores, Vuittons are strategically placed in cities and countries with pockets of wealth. They are continually growing in the Asian- Pacific market, as the mainland Chinese stimulate the majority of Vuitton's revenue. They are currently focusing on improving the art of luxurious retail experiences by improving the size and aesthetics of their current locations.


Vuitton's products are greatly recognizable to many, that their promotional strategies veer on the side of simplicity. Louis Vuitton print ads lack verbage stating "Louis Vuitton". Their ads tend to feature celebrities- these celebs are esteemed individuals to the general public, Vuitton uses this to their advantage. The ads are done extremely tactfully by various renowned photographers, like Annie Leibovitz,  Mert Atlas, Marcus Pigott, and Patrick Demarchelier.  The ads all exhibit beauty and an air of a desired lifestyle people feel Vuitton will grace them with. They are geared towards many different demographics, below are some examples:


Jennifer Lopez, actress, model, singer/songwriter. 


Angelina Jolie actress, humanitarian, and Goodwill Ambassador.


Filmmaker Francis Ford Coppola, author and director with daughter Sofia Coppola.


Mikhail Gorbachev, former  Soviet Union President Mikhail Gorbachev.


Kate Moss, Model.






The prices of Louis Vuitton products usually inflate every few years. They never offer discounts, deals, or sales. There is an enormous fluctuation in various price points within their stores. They offer a "lower" end of small leather goods, and certain designs enabling the general middle class the attainability to own the products. Thus increasing their overall revenue due to the availability they allow to many different social classes. 


The elevator in the Paris Louis Vuitton is completely black, it lacks any signals, lights and sound. When the doors open the consumer is open to every element Vuitton has in store for them! The presentation within Vuitton stores is consistent; always catering to people senses. The aura, display, and vibe in the stores are always synonymous to each other, creating a consistent shopping experience for the consumer.   One can expect the same atmosphere, display, and personalized service from every Vuitton store across the globe.  By consistently maintaining an aura of prestige in their stores, it builds confidence in the shopping experience for the consumer. The consumer is more at ease spending top- dollar for a piece when they feel they are getting top- notch service to accompany it. Vuitton stores do not just provide a retail transaction, but a retail experience. The experience is provided by the well trained sales personnel, who when faced with a potential buyer, help to make the purchaser feel good about their decision thus enforcing the final step: buying. 

Friday, October 14, 2011

Ch. 6 - Consumer Decision Making

In a world filled with different social classes and values, Louis Vuitton does a brilliant job targeting all of these groups. Like mentioned in the mission statement  section, Vuitton's products notoriously represent wealth and luxury. The wealthy want Vuitton in order to differentiate themselves from the lower classes, while the less wealthy want Vuitton to feel like they have achieved what the wealthy has.

The social influence of Vuittons products are extremely apparent in many areas. Their ads are not overly done and in your face, but their products are worn by many, acting as a nonmarketing- controlled information source. When it comes to consumers decision making process the Louis Vuitton brand is strong enough to influence consumers perception of prices, hitting all types of social classes with the desire to buy the product.

Louis Vuitton began streaming certain runway shows in 2010. This made fashion shows available to the world, instead of the select few in the fashion and entertainment industry. This marketing move enabled people who will never get to a fashion show feel they were apart of it- making them feel they could be apart of the brand too! Very smart! Both this year and last year, head designer for Vuitton's Ready to Wear, Marc Jacobs had Kate Moss walk last at his shows. Being the face of many different brands, Kate Moss is a recognizable face to a majority of the population. Again, making the majority of the population feel that Vuitton is an attainable brand. This years show was a work of art.



I would say that the majority of Louis Vuitton's consumers are those that feel Vuitton will enhance their ideal self- image. Although there is a small percentage that buy Vuitton products like luggage and clothing  that lack monograms and extensive design because they are of the utmost quality. To them the products are a smart investment that will serve to assist in their travels and wardrobes.

Overall I feel the decision making process for Vuitton mostly entails want. Price is secondary to the initial desire for the product. Most consumers will find a way to save and purchase if the yearning for a higher self- image is present.