Features of the global marketing of luxury goods

(Louis Vuitton)

scientific adviserButkovskaya G.V.

studentVardanyan D.A.

Aim determine the features of the global marketing of luxury goods and

develop recommendations for the companies to implement global marketing strategies

Tasks• study the international marketing strategies• identify the features of the global marketing of luxury products• examine the activity of LVMH• analyze the market for luxury goods and the competitive

environment• develop recommendations for Louis Vuitton in global marketing• develop practical recommendations in the global marketing field

for companies operating in the sphere of luxury goods

Сontents

1. Theory1.1 International marketing strategies

1.2 Features of the global luxury marketing

1. Analysis2.1 LVMH

2.2 Luxury market and competitive environment

1. Project3.1 Recommendations in global marketing for Louis Vuitton

3.2 Recommendations in global marketing for luxury products

Marketing Strategies

Multinational and global strategiesmultinational strategy global strategy

the principle of selection of the market and market share

assessing the potential of each of the markets in terms of profitability for the company

focus on increasing the market area on a limited number of key segments

market supply offers at each local foreign market products and services tailored to local needs

offers a standardized core product on the world market

location of production production takes place in each country

Production is divided into stages, which are implemented in different countries

competitive action company competes within the boundaries of the foreign country, despite the competitive wars abroad.

competitive decisions are made based on the nature of competition in the global scale

Types of luxury consumers

LVMH capital structure (2011)

source:www.lvmh.com

LVMH (2011)employees assets, €m sales, €m

total foreign total foreign total foreign

83 000 58 100 47 100 29 673 23 659 20 110

transnationality index = 70%

markets:• France• Europe• Japan• USA• Asia• Other markets

source:www.lvmh.com

Change in revenue,%

LVMH performance

source:www.lvmh.com

LV marketing mix

Product• bags• cases• leather goods• accessories• shoes• clothing• watches• jewelry• books• stationery

Price• focus on costs• same price• no sales

Place• exclusively

through its own network of shops

• site

Promotion• sponsorship• charity• book• cultural center in Tokyo• exhibitions • Maroquinaris Zoologicae• product placement • advertisement

The luxury market analysis

sources: www.bain.com, www.goldmansachs.com

Performance of competitors (2011)

Revenue €12,227 m

Profit €986 m

Employees 21,387

Revenue €6,892 m

Profit €1,079 m

Employees 21,387

Revenue €2,841 m

Profit €421,7 m

Employees 8,370

PPR S.A.

Richemont

Hermès

sources: www.ppr.com, www.richemont.com, www.hermes.com

LV SWOT analysis

Recommendations for Louis Vuitton

3 questions relating to the policy of international marketing

Features of the global marketing of luxury products

Brand value in luxury sector and Louis Vuitton brand value

source: www.interbrand.com