Louis Vuitton
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Case Study: Louis VuittonRosie Chong-GumBUS 5040 Marketing Management John F Kennedy UniversityNovember 19, 2016Louis VuittonLouis Vuitton is the world’s most valuable luxury brand (Hossenally, 2016). Over the years, Louis Vuitton has continued to grow internationally, merged with other manufactures, and created luxury goods conglomerate (Best, 2012). Their product includes quality leathered goods, handbags, trunks, shoes, watches, jewelry, and accessories (Hossenally, 2016). Their exclusive and limited brand has allowed them to rank as the 19th most powerful global brand (Best, 2012). Louis Vuitton strong focus on producing quality, exclusive, and prestige products has enabled them to retain its cachet and prevent a unanimous amount of counterfeit. Louis Vuitton (LV) can sell more and retain its cachet by continuous marketing, limiting their products making it exclusive, and endorsing famous well-liked actors (Best, 2012). According to Best (2012), LV has marketed in journals, magazines, billboards, and launched its first commercial campaign. Their mission was to focus on luxury travel rather than fashion. This shows that the products that LV establishes, promotes, and sell are very limited. Their high-end products tend to target audience who admires limited product regardless of the price. LV has not decreased their prices, yet has increased their price approximately 13% and is still able to attract more customers (Best, 2012).
Another great way that LV has kept their brand fresh is by endorsing high end actors such as Keith Richards, Madonna, Angelina Joline, and Jennifer Lopez (Best, 2012). This created a status brand that attracted high end consumers and promoted exclusive, luxurious, and prestige products. According to Suttle (2016), exclusivity in products generates more attention, traffic, limited competition, greater sales, and higher profits. Since the 1980’s, LV limited the distribution of products sold in department stores due to the high rate of counterfeiting (Best, 2012). They have tighter control of distribution channels and only sell the products at authentic stores, upscale shopping areas, and high end department stores which is monitored by LV managers and employees (Best, 2012). Although counterfeiting for LV has increased, due to its products being in high demand, it doesn’t necessarily impact the company in a negative way. There are a few benefits that come from the counterfeit products. This includes building a stronger brand, retaining new customers, and limited products exclusively sold at authorized stores. According to Gosline (2012), most customers who purchase knock-offs tend to enjoy it while it last, then eventually purchase an authentic product. They use this trial period to see if the product suits their needs. Although knock-offs is cheaper than the authentic version, it attracts new customers that can’t afford the real thing. Having knock-offs is like a goal/dream to the customers. They wish to have the real version but can’t afford it (Gosline, 2012). Eventually, in time most customers aim to purchase the real thing once it becomes more affordable. Lastly, knock-offs help LV limit their products and distribute to authorized stores. It makes the brand more exclusive, limited, and fresh, giving the high-end customers more reasons to purchase their product.