A company must differentiate itself from others during the product life cycle by creating an image that demands attention and fosters unique brand awareness. Louis Vuitton is a company that continuously rejuvenates itself and has maintained a highly coveted brand for 150 years. A $1,000 monogrammed Louis Vuitton handbag is in such demand that it has spawned a multi-million dollar market of counterfeit products, most commonly referred to as “knock-offs.” The demand is so high for these knock-off products that LVMH Moet Hennessy, owner of the brand, has a special team that works with international police organizations. Last year there were 6,000 raids by police, resulting in the arrest of nearly 1,000 counterfeiters (LV, 2005). The LV logo has become an icon in the designer luggage, handbags and accessories market. The words Louis Vuitton are the code for describing an internationally recognized and exclusive fashion empire.
LVMH Moet Hennessys target market is aimed at women aged between 18-35 who have a love of fine design, and the taste for tradition and luxury. Louis Vuitton has maintained its lead in fashion through clever advertising in magazines like “Vogue” with print ads that focus on LV logo products as chic. In recent years the company has expanded is product line into ready-to-wear, shoes, watches and jewelry. Since 1998, Marc Jacobs has provided the artistic direction to develop and market these new collections. Tapping actress/singer Jennifer Lopez as a model was another key move in skewing younger and getting some zest in print ads. Clearly LVMH Moet Hennessys market strategy is its high-quality and high-priced image which is promoted via elaborate packaging, exclusive distribution, and status symbol advertising. This ability to differentiate themselves from the crowded designer marketing place is why they continue to be highly successful and have significantly extended the product life cycle.
Our text discusses the product life cycle and how companies must position and differentiate their market offerings throughout the cycle. Youngme Moon points out “theres nothing inevitable about the product life cycle. Marketers are disrupting it by redefining the boundaries between product types. In the process, theyre rejuvenating categories and creating whole new markets (Moon, 2005).” A great example of this is Louis Vuitton, a trunk-maker in Paris since 1854, who became a legend in the art of travel by creating luggage, bags and accessories as innovative as they were elegant and practical. A century and a half later, the LV logo lives on. Strengthened by its international renown, Louis Vuittion is personified by the Monogram canvas product line, which has enjoyed great success since 1896 and played a key role in the development of modern luxury. Innovation shapes the story of Louis Vuitton and how they have reinvented themselves time and again.
Why are designer brands like Louis Vuitton so coveted? Designer branding is deeply anchored in psycho-sociology; it takes into account both tangible and intangible attributes, e.g., functional and emotional benefits. Therefore, those attributes compose the beliefs that the brands customers recall when they think about the brand in its context. Image psychology plays an important role in Louis Vuittons Vogue magazine advertisements. For example, a recent two page ad shows a blonde woman very smartly and immaculately dressed and carrying luggage. She appears to be boarding a train at a deserted train station with a mountainous background. The woman covers most of the right page, which also features the brand name Louis Vuitton, whereas the left page shows the rest of the train station platform and reference that the products the women is wearing is sold exclusively in Louis Vuitton stores. In short, the ad is intended to point out that by using and wearing Louis Vuitton leather goods, shoes and accessories, the woman is making a statement, one which connotes a classy and chic lifestyle. In addition, that the woman is successful, mature and sophisticated (Vogue, 2003).
LVMH Moet Hennessy has also used events and sponsorships to build its brand image. The main ones are the Louis Vuitton Classic, which is an annual automobile collectors event, with cars from all over the world. Another is the Louis Vuitton Cup, which decides the challenger for the Americas Cup, the most prestigious trophy in international yachting. Both of these events focus on high quality with an international theme, which clearly
Designer brands like Louis Vuitton are highly coveted due to their deep understanding of psycho-sociology and their ability to create a strong brand image. These brands consider both tangible and intangible attributes, such as functional and emotional benefits, which form the beliefs that customers associate with the brand.
In the case of Louis Vuitton, image psychology plays a significant role in their advertising campaigns. For example, a recent two-page ad in Vogue magazine features a blonde woman dressed impeccably and carrying Louis Vuitton luggage. The ad portrays her boarding a train at a deserted station with a mountainous background. The woman dominates the right page, accompanied by the Louis Vuitton brand name, while the left page shows the rest of the train station platform and indicates that the products she is wearing are exclusively sold in Louis Vuitton stores.
This advertisement aims to convey the message that by using and wearing Louis Vuitton leather goods, shoes, and accessories, the woman is making a statement about her classy and chic lifestyle. It suggests that she is successful, mature, and sophisticated. This kind of imagery appeals to consumers who aspire to project a certain image and associate themselves with the values represented by the brand.
In addition to advertising, LVMH Moet Hennessy, the parent company of Louis Vuitton, utilizes events and sponsorships to enhance its brand image. Two notable events are the Louis Vuitton Classic and the Louis Vuitton Cup. The Louis Vuitton Classic is an annual automobile collectors event that showcases cars from around the world. This event emphasizes high quality and an international theme, aligning with the brand’s values. The Louis Vuitton Cup, on the other hand, determines the challenger for the Americas Cup, a prestigious trophy in international yachting. By associating with these events, Louis Vuitton further establishes its reputation as a luxury brand with a focus on excellence and sophistication.
Overall, the success and desirability of designer brands like Louis Vuitton stem from their ability to tap into psycho-sociological factors, create a compelling brand image, and align themselves with events and sponsorships that reinforce their values. These strategies contribute to the perception of exclusivity, quality, and prestige, which in turn generate strong customer loyalty and desire for their products.