Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
Founded “House of Louis Vuitton” in 1854
Headquartered in Paris Louis Vuitton merged Moët Hennesy in
1987 Distinguished five business lines
• Wines & Spirits • Fashion & Leather • Watches & Jewellery • Perfumes & Cosmetics• Selective Retailing
Operated around 1500 stores and 50 Brands over the world
Company Profile
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
LVMH Gucci Richemont Bulgari Hermes
Main market Asia-Pacific
Europe, North
America, Japan
Europe US, Japan, Asia-Pacific
Outside French, Japan
Stores 1500 348 99 200
No. of brand 50 10 19 4
Luxury products goes up high quality and unique design in the world ( Total spending $88 billion)
The main customers shift from exclusive to middle class
Market and Industry (World)
2001 2002 2003 2008E$0.0$5.0
$10.0$15.0$20.0$25.0$30.0$35.0$40.0$45.0
$26.0 $26.7$28.8
$40.7
Financial Wealth of Millionaires Worldwide (trillions)
Market and Industry (Asia)
Japan
• Stores 47• Mature
market
China
• Stores 16• Business
chance• New
lifestyle
India
• Stores 22• Economi
c growth• Culture
difference
South Korea
• Stores 15• Young
age customer
As high potentials. middle class with having stable income and the increased of population exist in Asia market.
Although Asian market is attractive, each countries has difference environment and behavior.
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
Company Performance
2001 2002 2003-500
- 500
1,000 1,500 2,000 2,500 3,000
Income from Operation by Business Group
Selective RetailingWatches & JewlleryPerfumes & Cosmet-icsFashion & Leather GoodsWines & Spirits
Income increased, but
sales flactuated for 2001-2003
Reduction administrative
cost
Financial condition remained stable not improve
2001 2002 2003 -
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Sales by Business Group
Selective RetailingWatches & JewlleryPerfumes & Cosmet-icsFashion & Leather GoodsWines & Spirits
27%
20%17%
15%
15%6%
26%
21%
17%
16%
13%
7%
Sales by Geographical Regions 2002-2003
America Europe (excl.France) France
Japan Asia (excl.Japan) Other
Regional shares are relatively
equal
Sales results remain over
years
Asia market slightly reduced
Company Performance
Strengths Weaknesses
High brand value Large global distribution
network 50 luxury brands Wide range of product lines High sales in different
regions Key player in Asia-
Pacific
Limited distribution in
Asia
Focus mainly in big
countries
Some products do not suit
local taste
Opportunities Threats
Prosperity on the rise
Fast growing economies
New middle-class
customers
Japan remain strong
consumption
High competition
Macro-problems (political,
culture,…)
Counterfeit products
Gray market in Japan
SWOT Analysis
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
French culture in Asia market
Diversification of lifestyles in Asia especially new entrepreneurs
Narrow distribution in Asia excl. Japan
Marketing Issues
Japan China India S. Korea
No. of store
47 16 22 15
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
Challenges in Asia
Counterfeit Products
Gray Market in Japan
Different Customer
behavior in Asia
Cultural and lifestyle
difference
Economic and Political Risk
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
Addressing solutionsSolution Pros Weig
ht Cons WeightProduct
customization and Government interference
• Suit local tastes• Fix counterfeit
problem• Increase sales
4
• Long time to build relationship with Governments
• High investment-2.5
Production in China and India
• Reduce production and distribution costs 3
• Lower brand image
• High management investment
-2Price differentiation by regions and social classes
• Expand customer range
• Higher market penetration
4
• Lower brand image
• Encourage gray market
-1.5
Enhance brand and customer values and distribution network
• Suit local taste• Enhance market
penetration• Improve brand
image4.5
• High capital investment
-1
Addressing solutionsSolution Pros Weig
ht Cons WeightProduct
customization and Government interference
• Suit local tastes• Fix counterfeit
problem• Increase sales
4 • Long time to build relationship with Governments
• High investment
2.5
Production in China and India
• Reduce production and distribution costs
3 • Lower brand image
• High management investment
2
Price differentiation by regions and social classes
• Expand customer range
• Higher market penetration
4 • Lower brand image
• Encourage gray market
1.5
Enhance brand and customer values and distribution network
• Suit local taste• Enhance market
penetration• Improve brand
image4.5
• High capital investment
-1
Company Profile Market and Industry Company Performance Marketing Issues Challenges in Asia Addressing solutions Key solution implementation
Content
Customer Value and
Relationships
SegmentationTa
rgetin
g
Differentiation
Posi
tion
ing
Product
Promotion
Pla
ce
Pric
eSEGMENTATIONYoung people, old people, new entrepreneurs, lineage wealthy people and middle class buyers
TARGETINGYoung people, new entrepreneurs, middle class buyers
DIFFERENTIATIONProducts based on lifestyle and culture. Designs in bags and fragrances in perfume for example
POSITIONINGPositioning products that can be bought to celebrate success and for social status people, new entrepreneurs, lineage wealthy people and middle class buyers
Quality products with differentiation
Should not compromise in price. Continue
charging the same price
Promotion through
testimonials and celebrity
events.
Setting up more stores in financial
hubs such as Shanghai, Mumbai
etc.
Marketing Mix & STP approach
Key solution implementation
Sustain luxury brand image, remain premium price strategy
Exclusive luxury events
to promote brand
Testimonials
Strengthen advertisement
in high-end channels
Enhance Brand value
Key solution implementation
Improve customer benefit to gain loyalty and reduce impacts from counterfeits
VIP club/ high value membership
Lifestyle activities (parties, Xmas,..)
Enhance customer
values
Key solution implementation
Dragon Elephant Sakura
Assimilate indigenious cultural elements into product design to cater for local consumers’ tastes.
Foster local market by embedding the European way of living and lifestyle into the Asian culture.
Product customization
based on lifestyle/culture
Improve customer benefit to gain loyalty and reduce impacts from counterfeits
Enhance brand and customer values and distribution network
Capture more customers, enhance brand, reduce counterfeits
Key solution implementation
Producers
India China S.Korea Japan
Wholesaler/Stores
Wholesaler/Stores
Wholesaler/Stores
Wholesaler/Stores
CUSTOMERS
Unified System
Vertical Marketing System
Prime & Flagship stores
Top Related