The paper "Impact of Female Generation Y on Louis Vuitton Marketing Strategy" is an outstanding example of a marketing case study. This paper seeks to explore the marketing mix framework of Louis Vuitton Company with an emphasis on the female millennial generation. Louis Vuitton is a company which was conceptualized in the year eighteen fifty-four by an individual who the company was named after. Due to his unique designs, he got popular and expanded his fashion business and moved it to a new village. Unfortunately, in the year eighteen ninety-two he passed on but this did not shutter his company’ s dream; his son George took over.
He ensured that the company maintained luxury and worth as he strived to expand it globally (Louis Vuitton, 2013). The company has been and still remains the largest Luxury outlet worldwide. Its net worth is approximately USD $19 Billion. Its accelerating fame is mainly due to creation of a new collection each season that passes and an array of hands-on experts. It has always sought aid in advertising from different celebrities. According to Kim & Ko (2012, p.
1480) luxury brands are the largest number of luxury consumers and had increased to three hundred and thirty million in the year twenty thirteen from ninety million in the year nineteen ninety-five. They have seen this success due to the adoption of social media marketing strategies. Among the target market, the largest group is the females especially the millennia. Market Louis Vuitton market size is huge covering the affluent in the society who wish to be attributed to class and quality products. These are characterized by value for style, tradition, crafted products and exceptionality (Chevalier & Mazzalovo, 2008).
It is present in over fifty countries with approximately four hundred and fifty stores worldwide. It has a market share of about sixty percent in the luxury business. It is ranked as the best quality luxury products seller and preference for customers. Even though it faces counterfeit products like its fellow competitors, its profit margins have not been affected as much as Gucci’ s. It has a broad and deep range of products: Handbags, travel bags, jewellery, books, sunglasses, ready-to-wear and wallets.
The marketing principle of the company operates under the four Ps of the marketing mix (Nagasaw, 2009). It strives to do away with all counterfeit products and their prices are not discounted at all. Competitors Even though Louis Vuitton has been on the lead as the best luxury company for nine years, it faces stiff competition from two main companies who always lurk behind it in the ranking list. Hermes a French-based Luxury Company it is well known for accessories, luggage and apparels. It was founded in eighteen thirty-seven which implies that it is older than its main competitor: Louis Vuitton and The House of Gucci (Hermes).
It has an approximation of fifteen products ranging from jewelry to ties watches bags and many more. Its unique selling point is the creation of unique and quality leather products with the members of high social class as the main target clients. They also create customized products at a higher price in order to cater to customer special requests. It has a wide range of dedicated craftsmen who make the best out every product. Their target markets are wider compared to other key competitors in the industry.
However, their main focus is ladies and men of different age groups. These comprise both low net worth and high net worth clients who. The lowest range is usually $5,500 and the highest been $ one million liquid assets. According to SWOT analysis, the greatest strengths is that is has a strong brand name worldwide, over three hundred stores worldwide of which one hundred and eighty are operated directly (World best Luxury brands, 2012). Its weaknesses are limited coverage worldwide and inadequate adoption on e-marketing strategies.
Chevalier, M. and Mazzalovo, G., 2008. Luxury brand management: a world of privilege. John Wiley & Sons
Hennigs, N., Wiedmann, K.P. and Klarmann, C., 2012. Luxury brands in the digital age–exclusivity versus ubiquity. Marketing Review St. Gallen, 29(1), pp.30-35.
Horton, S. (2010) Bain & Company. “Nearly Two-Thirds of Purchases by Style-Conscious Consumers Favor Durable, Timeless, Classic Styles Over Trendy, Contemporary Styles.” Retrieved from http://www.bain.com/about/press/press-releases/styleconscious-women-actively-spending-in-2010.aspx
Joung, H.M., 2013. Materialism and clothing post-purchase behaviors. Journal of consumer marketing, 30(6), pp.530-537.
Kim, A.J. and Ko, E., 2012. Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), pp.1480-1486.
Kim, D. and Jang, S.S., 2014. Motivational drivers for status consumption: A study of Generation Y consumers. International Journal of Hospitality Management, 38, pp.39-47.
L'invitation au voyage. Louis Vuitton. (2013). Competitor Analysis. [online] Available at: https://louisvuittonbrand.wordpress.com/competitor-analysis/ [Accessed 17 May 2016].
Mo, T. and Roux, E., 2014. Luxury Consumers and Luxury Brand Management in China. Brand Management in Emerging Markets: Theories and Practices: Theories and Practices, p.200.
Nagasawa, S., 2009. Marketing Principles of Louis Vuitton-The Strongest Brand Strategy.
Oliver, R.L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Tokatli, N., 2013. Doing a Gucci: the transformation of an Italian fashion firm into a global powerhouse in a ‘Los Angeles-izing’world. Journal of Economic Geography, 13(2), pp.239-255.
Solomon, M.R., 2014. Consumer behavior: buying, having, and being. Engelwood Cliffs, NJ: Prentice Hall.
Schwartz, S.H., 2012. An overview of the Schwartz theory of basic values. Online Readings in Psychology and Culture, 2(1), p.11.
Hermès International S.A. – Company Profile, Information, Business Description, History, Background Information on Hermès International S.A. (n.d.). Retrieved May Tuesday, 2016 from Reference for Business: http://www.referenceforbusiness.com/history2/4/Herm-s-International-S-A.html#ixzz2ICcgOKP3
World’s 8 best luxury brands 2012. (n.d.). Retrieved 17, 2016, from YahooNews: http://sg.news.yahoo.com/photos/world-s-best-luxury-brands-2012-slideshow/photos-world-s-best-luxury-brands-2012-photo-1349288140.html