Promotions Mix of fashion brand Louis Vuitton
Louis Vuitton is the most valuable luxury brand in the world. It was founded in 1854. According to the Forbes list, it is among the top ten most valuable brands in the world.
Its estimated brand value according to Forbes was $47.5 billion in 2020.
Louis Vuitton is a division of the LVMH group, which was formed after the merger of Louis Vuitton and Moet Hennessy in 1987.
The Chairman and CEO of the LVMH group is Bernard Arnault.
He gave the group the vision to become the world leader in luxury, which the brand has followed to reach the top position in the world of luxury goods and accessories.
The brand philosophy of LVMH is summed up in its motto: Passionate about creativity.
The brand was named after its founder, Louis Vuitton.
The LVMH group sells a large range of products including leather goods, handbags, trunks, shoes, watches, jewellery and accessories.
Its products mostly carry the LV monogram.
The group does business across 80 countries and runs more than 5000 stores. 866 of these stores are located in the United States.
It generated € 44.7 billion in 2020 as net revenues.
It owned several leading luxury names including Christian Dior, Bvglari, Louis Vuitton, and Tag Huer.
This marketing mix of Louis Vuitton includes a description of the four Ps including product, place, price and promotion.
| Company | Louis Vuitton |
| Founded | 1854 (France) |
| Industry served | Luxury fashion |
| Net Revenues | € 44.7 Bn |
| Employees | 150,479 |
| CEO | Bernard Arnault |
| Competitors | Gucci, Prada, Hermes, Chanel, Christian Dior, Ralph Lauren, Prada, Zara, Gucci. |
| Free cash flow | € 6.12 Bn |
Product:
The LVMH Group (Louis Vuitton Moet Hennesy) offers a large range of luxury products including leather goods, handbags, trunks, shoes, watches, jewellery and accessories.
Its product categories include fashion and leather goods, wines and spirits, perfumes and cosmetics, watches and jewellery, selective retailing, and other activities.
It owns several leading brands of wines and spirits. Here is a list of these brands:
- Ao Yun
- Ardbeg
- Belvedere
- Bodega Numanthia
- Cape Mentelle
- Chandon
- Chateau Cheval Blanc
- Chateau d’Yquem
- Cheval des Andes
- Clos des Lambrays
- Clos 19
- Cloudy Bay
- Dom Perignon
- Glenmorangie
- Hennessy
- Krug
- Mercier
- Moet & Chandon
- Newton Vineyard
- Ruinart
- Terrazas de los Andes
- Veuve Clicquot
- Volcan de mi Tierra
- Woodenville
The fashion goods and leather brands owned, marketed and sold by LVMH group include :
- Berluti
- Celine
- Christian Dior
- Emilio Pucci
- Fendi
- Givenchy
- Kenzo
- Loewe
- Loro Piana
- Louis Vuitton
- Marc Jacobs
- Moynat
- Patou
- RIMOWA
The perfumes and cosmetics brands owned, sold and marketed by LVMH Group include:
- Acqua di Parma
- Benefit Cosmetics
- Cha Ling
- Fenty Beauty by Rihanna
- Fresh
- Givenchy Parfums
- Guerlain
The watches and jewellery brands owned, marketed and sold by LVMH include the following:
- Bulgari
- Chaumet
- Fred
- Hublet
- Repossi
- Tag Heur
- Tiffany & Co.
- Zenith
LVMH (Louis Vuitton Moet Hennessy) offers a large and diverse product range targeted at affluent customers.
Its product range is known for excellent craftsmanship, design, elegance and style.
The well known luxury brand has a proud heritage of more than 160 years.
It has also made several dozens acquisitions in its history to grow its product portfolio and make it more attractive.
Place:
Louis Vuitton has its headquarters in Paris, France.
The LVMH group, which owns the Louis Vuitton brand, does business across 80 countries.
It operates its global business through 5,003 stores.
The sales and distribution strategy of LVMH is a crucial pillar of its marketing strategy.
The company uses exclusive company owned distribution channels for sales.
It does not use franchisees or resellers to sell its products.
It makes it easy for customers to find if a product is real or fake.
Suppose a store claims that it sells Louis Vuitton products, then it is a fake.
There is also another way to identify fakes. If a Louis Vuitton product is discounted, it is a fake. (Some businesses and online stores offer pre owned authentic Louis Vuitton products.)
The company has opened branded stores in prime locations to attract customers.
Louis Vuitton (LVMH) stores are open across all the leading fashion destinations around the world.
The company has strategically opened its physical stores in prime locations across big cities where it is easier to reach its target customers.
Apart from its physical distribution channels, the company has also adopted a digital sales and distribution strategy and sells its products through louisvuitton.com and other brand websites.
Price:
A brand’s pricing strategy plays a crucial role in its marketing.
It affects their brand image, customer loyalty and other factors that can affect sales and demand. The pricing strategy of a brand also affects growth rate and bottom line.
Louis Vuitton is a well known luxury brand that follows a premium pricing strategy.
The company maintains a strong focus on product quality, design, and style.
It has helped the company maintain a strong brand image and the high costs of its products can be attributed to the high costs of raw materials, high labor charges, marketing and other costs. Competition is also an important factor that affects the pricing strategy.
The competitors of Louis Vuitton include leading luxury brands like Gucci, Prada, Hermes and Chanel.
These brands also follow a premium pricing strategy.
Louis Vuitton enjoys solid profit margins, which have generally remained above 30%.
Its pricing strategy and premium image are interrelated.
Promotion:
The higher end fashion and luxury brands employ both digital and traditional channels for marketing and promotions.
Some of the common marketing techniques used by luxury fashion brands include fashion shows, celebrity endorsements, social media marketing and online marketing campaigns.
Louis Vuitton is a globally famous luxury fashion brand that is enjoying a strong brand image.
It has its own distinct identity and image.
The LVMH name is synonymous with quality, style and excellent craftsmanship.
It is known as a brand that represents ultimate luxury, innovation, and exploration.
LVMH is also a name associated with tradition.
It is a brand that strikes a fine balance between the old and the new.
LVMH’s brand image and premium quality are among the key drivers of demand and sales.
However, it also focuses on the other aspects of marketing to drive higher popularity and faster growth.
For example, it runs regular marketing campaigns online and through social media. Its latest marketing campaign is called Towards the Dream.
Celebrity endorsements and sporting events are the other promotional methods LVMH uses for promoting its brands globally.
Several celebrities like Madonna, Angelina Jolie, Uma Thurman, Scarlett Johansson, and Jennifer Connelly have been associated with Louis Vuitton.
The Louis Vuitton Cup (sailing competition) has an illustrious history of more than 30 years.
LVMH promotes its brand and latest innovations on social media channels including Instagram, Twitter, YouTube and Facebook.
It reaches its millions of followers around the globe through these social media channels.
Other Sources:
Abhijeet Pratap is a passionate blogger with seven years of experience in the field. Specializing in business management and digital marketing, he has developed a keen understanding of the intricacies of these domains. Through his insightful articles, Abhijeet shares his knowledge, helping readers navigate the complexities of modern business landscapes and digital strategies.