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    39992839 brand-audit-louis-vuitton - copy 39992839 brand-audit-louis-vuitton - copy Document Transcript

    • BRAND AUDIT MMS – Sem III / Marketing Subject:Product and brand management Submitted by:Gurpreet Arrora A/04 Nihal Fernandes A/18 Kalpesh Nahata A/38
    • Abstract This brand audit report is for Louis Vuitton. The purpose of doing this is to evaluate the brand equity of Louis Vuitton, both from the customers' and firm's perspective. As the brand equity is based on brand knowledge, (Keller, 2003) the brand audit is carried out through a survey designed to measure two components of brand knowledge; namely brand awareness and brand image. In conclusion, it was found that the consumer can recall Louis Vuitton and they do recognize the brand. They also see Louis Vuitton as a brand that represents quality, expensive and exclusive and is unique when compared to other brands such as Gucci. This result will hopefully be able to set the strategic direction for the Louis Vuitton brand. Introduction Louis Vuitton was formed in 1854, its earliest inventions included the idea of designing luggage that was flat and could easily stack in railway carriages. 152 years later, Louis Vuitton is a well-known international fashion label and its company, LVMH Moet Hennessy - Louis Vuitton, believes it still stands for the highest quality products. With a wide range of products comprising of leather goods, ready-to-wear, shoes, watches, jewelry, textiles, writing instruments and accessories, Louis Vuitton have branded themselves as traditional yet innovative to capture its target market. Is what it believes in correct? This report will attempt to measure the brand equity of Louis Vuitton, based on Keller's brand knowledge model by conducting a brand audit.
    • Methodology The Brand Inventory: In conducting the brand inventory for Louis Vuitton, the brand's website was closely examined. On the website the products were clearly listed, with most of the associated brand elements being displayed on the products. Secondly, an examination of a trade mark Louis Vuitton store completed the gathering of brand elements. This information enables an understanding of the brand from the firm's perspective, since it shows the possible sources of brand knowledge available to the customer. Louis Vuitton has a large range of bags under its brand, and so this section will focus on the different lines available. Women: Monogram Monogram Monogram Monogram Monogram Monogram Monogram Canvas Denim Multicolore Mini Vernis Vienna Ambre
    • Damier Canvas Suhali Leather Epi Leather Antigua Cruise Collection Fall-Winter 2005/06 Collection Men: Monogram Canvas Damier Canvas Damier Geant Canvas Taiga Utah Nomade Leather Epi Leather In Mumbai the range of products that is available is as follows: Product Range: Women shoes, mens shoes, handbags, wallets, luggage bags, watches and sun glasses. Price Points: A. Women Hand bags - Rs.18000-250000 B. Men Hand Bags - Rs.60000-300000 C. Wallets - Rs.12000-15000 D. Men shoes - Rs.25000-75000 E. Women shoes - Rs.25000-75000
    • The Brand Exploratory: A variety of research procedures were used to obtain timely and accurate information about the knowledge that exists in the market on Louis Vuitton. In conducting the research, both qualitative and quantitative methods were required. Thus, a descriptive research design was used. A survey was designed to measure the brand equity of Louis Vuitton. As this brand audit is based on the brand knowledge model (Keller, 2003), the survey aimed to measure the level of brand awareness and brand image that exists amongst consumers of the Louis Vuitton (LV) brand. Firstly, before the survey was created, qualitative research was conducted to gather background information to increase the quality of the questions asked in the survey. A variety of questions were asked to help identify a range of brand associations, which aided in the crafting of the questions in the survey. These questions were given to a
    • non-random sample group of friends and family. It was administered through emails and face-to-face collection of the data. Secondly, a quantitative survey measuring brand knowledge was crafted. This again was given to a nonrandom sample group of friends and family. The population of this survey can be concluded as anyone living in Mumbai who has heard of the brand LV. Initial demographic questions were asked to gain an understanding of the respondents being surveyed. The series of questions surrounding brand awareness were broken up into questions based on depth and breadth of LV. Under the depth of awareness, recognition and recall were measured. An aided recall question surrounding luxury leather bags was asked. An image of an LV bag was presented to test brand recognition. Under breadth, consumption and purchasing situations were also tested. Results from all these questions were then tallied. The series of questions surrounding brand image were broken up into three sections; strength, favorability and uniqueness of LV. The questions asked respondents to tick one answer from the given options. One essentially meant The attributes chosen were expensiveness, quality, exclusiveness, fashionable, used by woman. These were based on the findings of the initial qualitative studies. Based on the questions the consumer behavior was found out which has been mentioned below in detail with the help of pie/chart diagrams. The Brand exploratory concentrated on uncovering consumer perceptions of LV. The depth of awareness was seen as very high. When
    • presented with the picture of the LV bag every single participant in the survey recognized the brand. Also with aided recall pertaining to luxury leather bags almost all thought of LV. It has been shown that the LV products are selected with much planning in people's minds, thus recall becomes a much more important factor than recognition and the marketing mix designed in the future should reflect this. The breadth of awareness was seen as very high as when placed in consumption and purchasing situations through the survey LV was mentioned more than any other brand. This strength of awareness of LV was to be expected as it is one of the most well known apparel brands. Consumers awareness of the brand fell under the association of luxury leather bags and luggage. This seems a rather limited awareness level of the range of products LV has to offer. Consumers appeared to be more aware of LV than any other luxury bag brand; this can be seen as due to ideal positioning by the company. The overall result is that LV has built up strong brand equity in terms of brand awareness. Similarly, brand image of LV is quite strong, unique and favorable. It is known that a positive brand image is created by a marketing mix which links strong, favorable and unique associations of the brand to consumers' memories. Regarding strength, the more deeply a person thinks about product information and relates it to existing brand knowledge, the stronger the relating brand associations. The brand associations that consumers felt the most strongly towards were clearly expensive, quality, exclusivity and fashionable. All this attributes are inexplicably linked to each other, thus it is understandable
    • that consumers felt strongly towards them all. These strong brand associations are intentional by LV and thus, this knowledge of the brand is ultimately building their strong brand equity. A brand must have a unique selling position to have a sustainable competitive advantage against other similar brands. It appears that the shared associations between the competing luxury leather bags market are that of expensiveness, quality and that they are used by women. Thus this would be their point of parity. LV's unique competitive advantage comes from its tendency to be exclusive and fashionable. Thus this would be their point of difference. These positive attributes are an ideal point of differentiation, and further emphasize the strength of LV's brand equity. Advertising/Marketing: A. Do not advertise on TV and newspapers. B. They promote the brand through local events to reach a wider audience. C. The company, made the opening of their Mumbai store coincide with the 150-year celebrations of the brand Louis Vuitton. The Chairman and CEO of Louis Vuitton, Yves Carcelle, came down from France specially to host this event, which was a tremendous success. D. They have unique business strategy where in they do not believe in hiring any one person to represent the brand. LV treats each client as its brand ambassador. E. Moreover, they are registered on various search engines and have their
    • own website Result of survey Demographics:
    • Gender Ag e 13% 17% 18-24 40% 60% 25-40 70% 41-55 Male Female Incom brack (Monthly) e et 10% 77% 13% 25,000 - 35,000 35,000 - 65,000 65,000 - 100 ,000 The survey taken reflects a majority of respondents between ages 25 - 40 years old. Also, the survey had a 6:4 ratio of female to male respondents, which were spread out quite evenly between the Rs. 65,000 to Rs. 1,00,000
    • (per month) income brackets. Brand Awareness: B randR ecall 14 12 13 12 10 8 6 4 2 2 3 Brand Recall 0 When posed with the aided recall question of brands associated with expensive luxury leather bags, 13 respondent preferred Louis Vuitton followed by 12
    • respondent saying Gucci, 2 and 3 respondents respectively for Roberto Cavalli and Prada. All respondents recognized the Louis Vuitton bag in the image presented to them. P re-purchaseplanning 0 4 No planning Some Planning 26 Most Planning 26 out of 30 respondents said that most of the planning takes place before the purchase of the Louis Vuitton bag. However, the remaining 4 respondent said that some planning is required.
    • C onsum ptionofthe product 15 12 12 10 5 3 3 Louis Roberto Gucci Vuitton Cavalli Consumption of the product Prada 0 When faced with the consumption situation posed in Question 8, 12 people chosed LV and another set of 12 people chose Gucci as a bag that they would take out for social gathering. 3 respondents for RC and 3 respondents respectively voted for Prada. Brand Image:
    • B ndAssociation ra 3 1 Expensive & Quality 4 Exclusiveness Fashionable 22 Used by Women Several factors were examined based on their strength of association with Louis Vuitton. 22 out of 30 Respondents selected expensive and quality as the strongest association with Louis Vuitton, the remaining respondent feel that it’s all about exclusiveness, fashion, used by women. 0 B randUniquness 0 Expensive & Quality 3 Exclusiveness 27 Fashionable Used by women The same factors were tested for uniqueness with respect
    • Influenceforbuying 5 4 21 Advertising Brand image Family & Friends to Louis Vuitton. 27 respondent out of 30 said that the uniqueness factor of the brand is its exclusiveness, the remaining 3 respondent said that its fashionable. 21 respondent out of 30 said that the factors responsible for their purchase is the Brand Image followed by family and friends and then advertising. Therefore, we can say that it’s a Brand name that sells.
    • Motivationfor B uying 9 18 Attention 3 Interest Desire When respondent were asked the motivation behind buying the Louis Vuitton product most of them said that it is the desire to buy LV followed by attention and interest.
    • F requencyof P urchase 7 3 12 months 20 6 months 2 months Moreover, when respondent were asked that when is it that they would purchase a LV, 20 said 12 months down the line, 6 said 7 months down the line and 2 said within 3 months. This shows that one does not purchase the LV brand very frequently, the reason being its price (Expensive). Conclusion Louis Vuitton has high amounts of brand knowledge due to the strength of favorable and unique associations in its brand awareness and image components. Moreover, LV entered India early and therefore, enjoys the first mover advantage. Thus it can be concluded that it is a very equitable brand. Work needs to be done however to increase the awareness among the masses also, because they are the customers of tomorrow. Also, more
    • assortment and variety of products should be brought in India instead of restricting more towards bags. The survey was done using the following questionnaire: Q1.Which of the following age categories do you currently fall under? About: (Demographic) A. 18 - 24
    • B. 25 - 40 C. 41 - 55 Q2.Please select your gender About: (Demographic) A. Male B. Female Q3. Approximately which of the following monthly income categories do you fall? About: (Demographic) A. INR 25,000 – 35,000 B. INR 35,000 – 65,000 C. INR 65,000 – 1,00,000 Q4. When you think of expensive luxury products (leather bags), which brands come to mind first? About: (Brand Recall) A. LV
    • B. Roberto cavalla C. Gucci D. Prada Q5. Please take a look at the picture below and answer the following question: About: (Brand Recall/Recognition) Can you recognize which brand does the bag belong to? A. Yes. It's _________________________. B. No. Q6. When purchasing a Louis Vuitton leather bag, how much planning goes into it beforehand?
    • About: (Knowledge about the brand/ Recognition) A. No planning B. Some Planning C. Most Planning Q7. If you were attending a social gathering, what brand of luxury leather bags would you bring along? About: (Consumption situation) A. LV B. Roberto cavalla C. Gucci D. Prada Q8. To what extent do you think that the following product characteristics are descriptive of Louis Vuitton leather bags? About: (Brand Association) A. Expensive B. Quality C. Exclusiveness D. Fashionable E. Used by women
    • Q9. How unique are Louis Vuitton bags in terms of the following product characteristics? About: (Brand Uniqueness) A. Expensive B. Quality C. Exclusiveness D. Fashionable E. Used by women Q10. Which are the following factors that influence you in buying Louis Vuitton? About: (What influences you in buying LV) A. Advertising B. Brand Image C. Family and Friends Q11. What motivates you to buy the Brand Louis Vuitton? About: (Why one would like to buy LV) A. Attention B. Interest C. Desire Q12. Indicate likeliness towards buying the Louis Vuitton brand in the future? About: (Frequency of purchase) A. 12 months B. 6 months C. 2 months
    • References Keller, K (2003), Strategic Brand Management: Building, Measuring, and Managing Brand Equity, Louis Vuitton Catalogue, from http://www.louisvuitton.com