Louis Vuitton Research

Louis vuitton, usually shortened as LV, is a French fashion house, which was founded in 1854, and offers a wide range of products, among them luxury trunks and leather goods such as bags and clothes, watches, jewelry, sunglasses, books, accessories, and shoes. LV is one of the leading fashion houses in the world, and distributes its products through boutiques e-commerce section of its website, and lease department in high-profile departmental warehouses. Within the last six years, that is from 2006 to 2012, Louis Vuitton is the leading valuable luxury brand in the globe (Locobucci, 2001). It is famous for distribution of products to the wealthy and powerful people in the society. It often combines quality fabrications with innovative design to meet the demands of their customers, and the then constantly challenging models of the world travel.

Louis Vinton is a price oriented fashion house. This firm takes advantage of the strength of pricing to compete in the markets. They alter the prices of their products with an aim to suit the constantly competitive reality. Many a times, they lower the prices of their products, compared to their competitors, and still manage to make the profits as targeted. For instance, they sell New Jimichoo handbags at a reasonable price of 89 dollars as opposed to their competitors, who sell the same commodity at 120 dollars each.

Research confirms that luxury brands, which Louis Vuitton has enormously invested in, do not attract the larger numbers in the markets. This is a marketing strength, where these brands can manage to engender the small minority in the markets, who are very passionate. In so doing, many brands offered by Louis Vuitton experiences great success. Within the past few years, the company has had a number of innovative products, and persuasive prices. This has enabled a rapid growth in the store’s gross margins. In 2012, its sales increased by 17%, an estimate of 1.11 billion dollars, a factor that steered the gross margin of the company from 18%, a low margin, to 34%, a medium margin (Schmidt, 2001).

Furthermore, Louis vuitton’s promotion strategy is an important aspect that has contributed majorly to the long-term success of the company. These strategies include ordering ease, where customers visit any of their outlets and place a special order. These orders are then delivered to them through a door to door service by the company. The company also employs highly trained staff that is flexible to further trainings in order to produce the best, and professional results required by the customers. These employees are highly paid to motivate them to produce products of the highest quality and standards (Jacobs, 2009).

Moreover, the company works hard to maintain a good reputation among its customers as well as the entire society. It also uses celebrity brand strategy, where models and famous actresses such as Jannifer Lopez and Madonna to market their company. In addition, it has many high departmental stores across the world. These stores enhances marketing of the company and its products in various parts of the world.

In the near future, Louis Vitton company could spend 87 billion dollars to partner with the Burberry Group Plc, which is the leading producer of luxury goods in the U.K., aiming to increase its revenue. It also works to position its brands with the Burberry Group Plc to increase its popularity in the U.K. It as well targets to purchase the Italian Jewelry maker Bulgari SpA in 2011, and plans to pursue several other companies such as Tiffany & Co, which located in New York (Queensberry & Szuc, 2011).

In conclusion, Louis Vuitton is among the most successful companies offering luxury goods. It has good strategies, which help to propel its success. All companies should embrace such a spirit in order to get the profits required.

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