Description
The PPT is about Louis Vuitton strategy.
Click to edit Master subtitle style
Group 3
1/22/13
History
LVMH Moët Hennessy • Louis Vuitton usually shortened to LVMH, is a French holding company and one of the world's largest luxury goods conglomerate. It is the parent of around 60 subcompanies that each manage a small number of prestigious brands. These daughter companies are, to a large 1/22/13
Strategy
1/22/13
Strategy
1/22/13
Price Adjustment?
They do not believe in slashing prices. To maintain its position as a super luxury brand, products that remain unsold at the end of the season are destroyed rather than sold at a discount. They take drastic steps like obtaining supreme court rulings against mass retailers selling their products. The rationale could be LVMH aims to cater only to the extremely rich 1/22/13
Price Adjustment?
On the other hand, markets cannot be ignored: hence steps like raising wholesale prices, reduction in advertising, raising of prices to offset devaluation. Also, control of their own distribution gives them a cost advantage, whereby they are able to negotiate longer lease terms etc. Also, steps like moving production to a more cost effective and labour intensive place is also looked at.
1/22/13
Do you think that high retail prices are worth paying?
•
Product
• •
•
Designed by high profile designersNo Manufactured at the lowest possible Val or cost u possibly at a very low cost in one of thee f o ‘developing’ nations through sweat shops r M High operating margins with the company, one y sometimes also passed on to subsequent supply 1/22/13 chain partners
But…Looking at the Brand
Pr i ce m ay
be ju st i
fie d
1/22/13
How will luxury goods marketers be affected by slow down in tourism post 9/11?
? Typical
Customer of LV
› Very brand conscious › Frequently travels abroad › Prefers to shop abroad instead of home
country
› Style conscious
? If
this customer does not travel abroad or travels less frequently
› Will he stop shopping from home country?
1/22/13
Implications on the business
1/22/13
1/22/13
doc_244339778.pptx
The PPT is about Louis Vuitton strategy.
Click to edit Master subtitle style
Group 3
1/22/13
History
LVMH Moët Hennessy • Louis Vuitton usually shortened to LVMH, is a French holding company and one of the world's largest luxury goods conglomerate. It is the parent of around 60 subcompanies that each manage a small number of prestigious brands. These daughter companies are, to a large 1/22/13
Strategy
1/22/13
Strategy
1/22/13
Price Adjustment?
They do not believe in slashing prices. To maintain its position as a super luxury brand, products that remain unsold at the end of the season are destroyed rather than sold at a discount. They take drastic steps like obtaining supreme court rulings against mass retailers selling their products. The rationale could be LVMH aims to cater only to the extremely rich 1/22/13
Price Adjustment?
On the other hand, markets cannot be ignored: hence steps like raising wholesale prices, reduction in advertising, raising of prices to offset devaluation. Also, control of their own distribution gives them a cost advantage, whereby they are able to negotiate longer lease terms etc. Also, steps like moving production to a more cost effective and labour intensive place is also looked at.
1/22/13
Do you think that high retail prices are worth paying?
•
Product
• •
•
Designed by high profile designersNo Manufactured at the lowest possible Val or cost u possibly at a very low cost in one of thee f o ‘developing’ nations through sweat shops r M High operating margins with the company, one y sometimes also passed on to subsequent supply 1/22/13 chain partners
But…Looking at the Brand
Pr i ce m ay
be ju st i
fie d
1/22/13
How will luxury goods marketers be affected by slow down in tourism post 9/11?
? Typical
Customer of LV
› Very brand conscious › Frequently travels abroad › Prefers to shop abroad instead of home
country
› Style conscious
? If
this customer does not travel abroad or travels less frequently
› Will he stop shopping from home country?
1/22/13
Implications on the business
1/22/13
1/22/13
doc_244339778.pptx