Louis Vuitton Case

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Cuprins

Table of Contents

Summary 4

Introductory 5

Motivation 5

Research question 5

Interpretation 5

Scope 5

Method 5

Five Forces 5

Competitors 5

Louis Vuitton 6

Gucci 7

Prada 8

Hermes 9

Buyers 10

Suppliers 11

Substitutes 11

New Entry 12

Define the brands of Louis Vuitton and the products. 14

Louis Vuitton’s behavior in the industry 15

Swot Analysis 19

The Marketing Mix 20

Place 20

Product 21

Promotion 21

Price 22

Conclusion 22

Bibliography 23

Appendix 1 25

Reflections 25

Extras din document

Summary

This case should prove the position of LV in the fashion and leather goods industry. Different kinds of analyses were used.

Competitors constitute of few larger brands. LV makes the most revenue and is stood its position by ability to withstand in economic downturn. The Buyer constitutes of three segments and every one of them is searching for something else. In this industry they need to get supplied only very little of components. Replicas and cheaper products can be considered as substitutes. It is hard to enter this market.

LV is old and well-known brand and is very strong in the market evidently the best from all of the competitors. They do not have supplied many products and they have many rules in connection with the production of their products.

Who, what, why, when, where and how are the main question for the answers about the B2C behavior of LV consumers.

Strength like tradition, weakness like limited number of consumers, opportunities as renew of the economy and threat like fakes are needful information of company situation.

Their marketing mix is made from the direct-owned stores, high-quality product and that have wide and well-aimed promotion with the high price

Introductory

We have made a small introductory to the industry and the brand.

Motivation

We have been given this case to solve, and we have chosen this problem because it takes a look on the whole industry and not just the brand itself. As the company LV is the world leader, we want to prove its status through the fashion and leather goods industry analysis as well as we want to show how the company responds to the industry’s needs to maintain its champion position.

Research question

What is Louis Vuitton’s status in the luxury fashion and leather goods industry?

1) What is the fashion and leather goods industry?

2) How does Louis Vuitton perform in the industry?

3) How did Louis Vuitton archive its position?

Interpretation

In our research question, status means the position and the performance of the company in the fashion and leather goods industry, which is the most profitable part of the luxury goods industry.

Scope

We are focusing on fashion and leather goods in the global market and in the company Louis Vuitton.

Method

We have used a lot of different analysis, We started out by using the Five forces analysis, then we moved on to the 7O analysis concentrated about the buyers. We decided to use the marketing mix, to look specific on LV.

Five Forces

On the next few pages we are going to look into the industry, by using the five forces analysis. To get a better understanding of the industry.

Competitors

The fashion & leather goods luxurious industry is a topic which brings billions of dollars year after year from few exclusive brands, representative houses of fashion in this area with well founded roots which are in a tough competition since they’re beginnings. The symbols of this industry are represented by the very-old brands like: Gucci, Prada, Hermes, and Louis Vuitton.Louis Vuitton

The manufacturer with the same name as the brand has founded LV in 1854 as a high quality French fashion house who developed it’s own monogram which appears on most of it’s luxurious production line from leather goods to accessories and ready to wear products. LV is one of the world’s leading international fashion house with over 3,204 stores all over around the world being crowned in October 2012 as the best fashion brand within it’s competitors.

LV in fashion & leather goods succeed to have huge revenues even in financial crisis in 2008 with a total of 6,010 EUR millions that increase in scale up to 9,926 EUR millions in the last quarter of 2012 consolidating the position of the best fashion brand all over around the world.

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