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(France) : A Presentation On Louis Vuitton

This document provides an overview of the luxury brand Louis Vuitton. It discusses the company's founding in 1854 in Paris, France. Key information includes Louis Vuitton's product lines of luxury goods like handbags, luggage, and accessories. The document also outlines Louis Vuitton's business strategies, target markets, and operations in France and other key markets. It summarizes how the company deals with issues in the French market like taxes, licensing, and unemployment to maintain its luxury brand image.

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Adhish Singh Thakur
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537 views

(France) : A Presentation On Louis Vuitton

This document provides an overview of the luxury brand Louis Vuitton. It discusses the company's founding in 1854 in Paris, France. Key information includes Louis Vuitton's product lines of luxury goods like handbags, luggage, and accessories. The document also outlines Louis Vuitton's business strategies, target markets, and operations in France and other key markets. It summarizes how the company deals with issues in the French market like taxes, licensing, and unemployment to maintain its luxury brand image.

Uploaded by

Adhish Singh Thakur
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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A presentation on LOUIS VUITTON

(France)
Module: Sourcing Date: 15-09-11 By- Adhish Singh Thakur Pradeep Somu P. Surendran Semester 3, PGFM 2010-12

Contents Introduction to Louis Vuitton Business Strategy About France The current scenario

Introduction
Founded in: 1854. Founder: Louis Vuitton Malletier Opens its first exclusive store in Paris, offering luggage, Accessories and handbags. Headquarters: Paris (France) Industry: Retail Products: Luxury goods (luggage, accessories, handbags Production workshop: 17 Number of stores: 400 + in 54 countries worldwide. Louis Vuitton (1821-1892)

TimelineTrunk manufacturer, known for his design First store in Paris in the year 1854

Moves to international market in 1885


In the year 1894 Louis Vuitton passes away and his son Georges Vuitton takes over Campaigns for making the company into a worldwide corporation During his tenure, introduced about 700 designs In 1984 the company entered Asian market 1987 - Mot et Chandon and Hennessy, leading manufacturers of champagne merges with Louis Vuitton. the world's largest luxury goods conglomerate, LVMH. The group is partly owned by the Christian Dior group, currently led by Bernard Arnault who is Chairman and CEO of both companies

Mission Statement
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
These priorities reflect the fundamental values shared by all Group stakeholders: - creative and innovative - Product excellence - Bolster the image of our brands Louis Vuittons Quality Emphasis Extensive laboratory equipment test products (e.g. opening and closing zippers 5,000 times). Leather is sourced from Northern Europe, as they tend to have fewer insect bites. The company offers a lifetime repair guarantee. Integrate manufacturing initiatives such as quality circles in the production process.

Target Market
LV uses demographic targeting strategy to target their customers Demographic segmentationAge: 30 + Sex: Male & female Family size: 1-2, 3-4, 5 + Income: +5,000 $ per month Occupation: Celebrities, Sports people etc

Education: High qualification achieved

SELLING POINT
Fashionable Durable goods

- Good quality product


- Long product life Exclusivity

Prestige image
- Feel good - Fit into high-class society

- Practice ego and power

KEY PRODUCTS: Leather Bags and Wallets


Handbags Luggage Cosmetic Bags Watches Eyewear Timepieces Shoes Agendas Jewellery Belts scarves & Accessories

Premium Pricing
- Luxury image - Selling Point - Never on sale!!

Price range: Handbags: $550 - $3,700 Wallets: $200 - $700

DIRECT CHANNELS: Free-standing store

Department Stores:
- Macys New York - Bloomingdales - Saks Fifth Avenue
Exclusive Distribution Limited number of stores and retailers E Retailing

PROMOTION
Emphasize on personal selling No sales promotion, to reinforce their luxury image Public relations Sponsorship Louis Vuitton Cup 2007 LVMH Young Artists Award LVMH Website - The Magazines

Endorsements: Jennifer Lopez, Kate Moss, Uma Thurman, and Scarlett Johansson

Counterfeiting is a continuous problem, Spend $10 million a year on rip off battle Biggest sources of counterfeit goods: Turkey, China, Morocco LV has adopted a zero tolerance policy against counterfeiting

Britney Spears along with Sony Music were charged a sum of 80,000 Euros each
In 2008, the zero tolerance policy led to15,000 legal actions 8000 raids 1500 arrests

FRANCE
Capital- Paris 5th largest economy in the world Population- 65 million

Ranks 5th in terms of import $577.7 billion (2010 est.) and 6th in terms of exports ($508.7 billion (2010 est.)
Number one tourist destination Unemployment- 9.3 % Poverty- 6.1%

The Current Scenario


1. The Income tax law

2. Wealth Tax
3. Retail license 4. Distributor s commission 5. Right to sue for copyright 6. Unemployment

How the company deals with it1. Retail License: A research team works with legal team works for opening of a new store. The brand never expands its store to every corner of country, it is a to maintain the luxury image of Louis Vuitton. 2. Distributor s commission: This channel of distribution was followed earlier But as the time changed they have stopped using this channel because of the rising cases of counterfeiting. Now the brand is only in MBOs controlled by the Company itself. 3. Right to sue for copyright: The most extensive law used by the company. It Follows Zero tolerance policy against counterfeiting. 4. Unemployment: The company has under its social service campaign hires un skilled employees, gives them free training and accordingly hires them for the Manufacturing units etc.

BIBLIOGRAPHY

http://images.businessweek.com/ss/10/06/0615_global_millionaires/9.ht m http://www.euromonitor.com/retailing-in-france/report http://internationalbusiness.wikia.com/wiki/French_Political_and_Legal_S ystem--Import_Laws/Regulations http://www.sathguru.com/Note_on_Retail_Industry.pdf

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