Marketing Strategy and SWOT Analysis of Louis Vuitton
Louis Vuitton is a French luxury brand of clothes, shoes, handbags, watched, accessories, etc. It has more than 460 stores in 50 countries worldwide. It has a turnover of 53.79 Billion Euro in 2019. The brand is one of the leading luxury ones in Europe and Asia due to its creativity and uniqueness. As it proved its customers with the ultimate handmade quality and design, it assists them make a difference. If you are already interested in their targeting strategies and SWOT Analysis that prompted the company to nourish, you are welcome to continue reading below.
Let’s commence with the vision and mission statements of Louis Vuitton.
LVMH Mission Statement
The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation and kindle dream and fantasy.
It is apparent from the mission statement of the company what are their cornerstones. It clarified what they actually elaborate on. They are designed in terms of creativity and innovation and style of elegance and modernity.
LVMH Vision Statement
LVMH has successfully preserved a family spirit that places priority on long-term vision. The Group’s vocation is to ensure the development of each of its Houses while respecting their identities and their autonomy, providing the resources needed to create, produce and market their products and services through carefully selected channels. The three fundamental values articulated by Bernard Arnault are shared by every member of LVMH. These three imperatives inspire excellence and constitute the pillars of our performance and long-term success.
The visionary of Louis Vuitton considers it a noteworthy point of making a family and pursuing the proper creation and development process of its channels, which pledges the achievement and maintenance of long-term perspectives and goals.
It’s time to discuss the positioning strategy of Louis Vuitton.
To do so let’s look at the Brand Archetype of the company.
Louis Vuitton is quite active in the Instagram official account, where they frequently post their delightful collection. Here we see a post of a pair of white shoes and handbags in an LV suitcase. After reading the comment on the photo of the company, it becomes apparent that the pair of shoes are designed for game enthusiasts who are creative and sophisticated people. This sends a message about the brand archetype of the company which is Magician. You are welcome to know more about Magician.
Desire: Knowledge of the fundamental laws of how the world is functioning. Strategies to do with exerting every single thing.
Goal: make dreams come true, achieve goals, and succeed.
Strategy: Develop a visionary and live it up.
Level One: unnatural newness and frequent experiences
Level Two: magical and sophisticated moments of newness and transformation
Level Three: the experience of flow
Level Four: fantasy, marvel, from the beginning to the end, in terms of vision to manifestation.
Magician may be a suitable identity for the brand if
- The product or service is something that makes profound changes among people.
- It also has a considerable impact on consumers
- The product or service attract more young age customers
- The user-friendly environment is a must
- It influences the psychological aspect
- Newness, originalism, modernity is thing resembling
- The pricing varies from mediocre to high.
Brand Archetypes. Why do we need them in practice?
All of us know that many companies have problems in presenting their key values and attitudes. Sometimes our messaging leads to misunderstanding or it does not represent what we aimed to say in reality. Here of course the importance of the brand archetypes is very crucial. How to create a good company culture?
What are its values? Here are some questions that need to be answered properly. “8 steps to a complete archetypal branding” eBook tells us a lot. We have written a book that goes deeper in these notions and reveals archetypes in specific ways. Just uncover the brand archetypes with “8 steps to a complete archetypal branding” eBook.
Brand Archetypes. Why do we need them in practice?
All of us know that many companies have problems in presenting their key values and attitudes. Sometimes our messaging leads to misunderstanding or it does not represent what we aimed to say in reality. Here of course the importance of the brand archetypes is very crucial. How to create a good company culture?
What are its values? Here are some questions that need to be answered properly. “8 steps to a complete archetypal branding” eBook tells us a lot. We have written a book that goes deeper in these notions and reveals archetypes in specific ways. Just uncover the brand archetypes with “8 steps to a complete archetypal branding” eBook.
It’s time to begin the SWOT Analysis of the brand.
Strengths
Powerful connection with quality proposed. The focus often Louis Vuitton brand is undoubtedly the quality. They intensively invest in that aspect and pay the greatest attention to. This is also a form to prove its luxury level by providing customers with the best material products. Moreover, employing highly ranked designers is also a great strategy by the company to make people sure about the scrupulous design and latest fashion ideas.
Brand Recognition. Louis Vuitton was ranked the Top of the Best Global Brands in 2017, The World’s Most Valuable Brand in 2018, The Top in 100 Brand Loved List in 2016, etc. The company has widespread recognition through their great distribution management throughout the world. Also, the applied marketing strategies in terms of campaigns, advertisements, special offers, etc., the brand succeeds in achieving brand recognition.
Product Portfolio. Louis Vuitton has a wide range of products that vary from luxury trunks and leather goods to ready-to-wear shoes, handbags, watches, jewelry, accessories, sunglasses. The company claims it produces more than 1500 new goods annually, and above 500 models are being produced within prototype workshops.
Weaknesses
Lack of interest in other cultures. As we already know, Louis Vuitton is a French brand that has an absolute centralization of its origin. It sometimes sounds like segregation towards other nations and cultures that also are prominent and widely valued. It could even play the role of newness and a new breath for the company.
Product Prices. Louis Vuitton is one of the luxury companies that is known worldwide. It has an absolute and comparative advantage over other brands; that is why it has a high price on every single good it manufactures. It begins with at least 1,500 USD for an item, which is undoubtedly near to expensive brands than to a mediocre one. This fact sometimes prompts people to avoid making purchases from original Louis Vuitton stores.
Opportunities
Online Shopping. Louise Vuitton brand has stores in different countries and cities; however, it lacks the opportunity of selling products via online shops. As E-commerce is in the boom, they have a great chance to utilize it and achieve broader auditory through, for example, Instagram or Facebook platforms.
The Use of Subsidies. In developed/developing countries, environmentally conscious nations give much attention and worth to the factor of green energy, pollution, and waste. They do make subsidies to support brands or businesses overall that pursue the points mentioned before. Louis Vuitton has a perfect opportunity to lower costs and products’ prices in general, which indicates the possible demand increase.
Threats
Real Competitors. There are growing competitors frequently that will negatively affect the demand and supply chains accordingly. It is much more dangerous when competitors intensively invest in the Research and Development facet of their business. They bring discounts, promotions, and other enterprises that decrease prices attract customers more.
Change of Taste. As trends and fashion are changing quite often, it is crucial to keep up with rapid changes. People also are adjusting their taste and approach to newness and the uniqueness of style.
Interest Rate. As fluctuations vary consistently, it sometimes makes problems for businesses that rely on one currency. If something happens to that, it will considerably impact each product’s value, where the demand and supply cycles will change.
It is time to refer to the targeting strategies applied by Louis Vuitton
To do so I offer to watch the commercial example below.
I guess the advertisement and its beautiful scenes adored you. The girl is an example of a member of the target segment of LVMH. The brand’s promotion commences with a scene where the beautiful girl was lying in the enormous bunch of nude color sundry flowers.
It displays more than a relaxing and delightful moment when she is looking at the sky with soft blue eyes. The ad persists in going on by showing different beautiful and amusing places like an ocean with a mix of natural colors of trees. The grey rocks with green coverings in the middle zones of the sea resemble a real paradise.
As she continues to enjoy the tranquility and smiles softly, can you guess the reason for her attitude? Here, the key is the perfume she has used. It resembles the odor of the flowers surrounding her, the water of the ocean, and the clean air. Now, you probably feel the captivating aroma of the perfume. Nonetheless, what the commercial was aimed to transmit in aid of these amazing scenes? As we already discussed the nuances, there is remained to reveal that the target audience of Louis Vuitton is Chardonnay Girls.
Who are they, and what do we know about them?
Values and Beliefs
Chardonnay Girls are mostly students or young professionals living in urban areas. They are cheerful, optimistic, and energetic people who love being out and about. The key motivator for them is sharing their life with their friends and making the moments unique. They are open to the world and new changes: they even love it. The target segment is highly friendly people with a large group of friends or acquaintances who make frequent team-ups. They appreciate new places that are from their interest’s field.
They want to get to the top of their career, but they are not ready to pass all difficulties and achieve success if it requires more than keen efforts. Some Chardonnay Girls say they measure the level of success through money. However, another part feels valued or fulfilled by working and have sufficient opportunity to be noticed and recognized for their charisma and intelligence. They need to be seen as attractive, especially to the opposite gender.
Shopping Attitude
Chardonnay Girls pay a lot of attention to their looks. It is essential to be unique and different from others. The target segment is prone to spend without giving much attention and worth. Spontaneous purchases are from their daily businesses. Shopping is another favorite pastime. They like quality products, and this is obvious in the clothing and other good that they purchase.
They will first buy less of something but pay more for its quality. They like to dress stylish and trendy. Large logo’s and very flashy things would seem unattractive because they might reveal the brand’s low class.
Chardonnay Girls like advertising where has been exerted a high level of curiosity and enthusiasm. The ad can be a perfect indicator of the brand’s design thinking and other facets. Thus, in general, Chardonnay Girl values premium brands with products of good quality and originalism.
Other Interesting Facts
- Chardonnay Girls live their life also on an online basis. In other words, social platforms are from their favorite places they frequently visit and are active at. Posting and sharing details from their personal life and being followed by a lot of people appeals to them vitally.
- As the target segment members think they need to know much about what circles them, they tend to read about them and gain knowledge at least through the Internet.
- Family is needed to gather on weekends and talk to each other while sharing essential points and aspects of their lives.
- Loyal and long term relationships are for this group of people.
16 Personalities (why do you need them in your business?)
After you realize the power of Chardonnay girls you may ask now, how can I make my company desirable for them? How to pay their attention in advertisements? What are the benefits of their behavior? You can find all the answers to these questions in our e-book called “16 Personalities”. You will also find all the solutions for your marketing problems, which will obviously change your insights about Buyer Persona.
Of course this is one of the 16 personalities and with this book you will discover all of them. With knowledge of each 16 personalities you will confidently find your ideal buyer persona and change your marketing strategy to achieve new levels.
The book also gives you some hints for selling your product and negotiating with your clients.
To sum up, here we introduced the marketing strategies and SWOT Analysis of Louis Vuitton. We hope this was an interesting post where you found out answers of the questions you were seeking. For more similar posts check out the main page of our website.
