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Louis Vuitton Business Model Evolution
 

Louis Vuitton Business Model Evolution

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ouis Vuitton Malletier – commonly referred to as Louis Vuitton (French: [lwi vɥitɔ̃], commonly /ˈluːiː viːˈtɒn/), or shortened to LV – is a French fashion house founded in 1854 by Louis ...

ouis Vuitton Malletier – commonly referred to as Louis Vuitton (French: [lwi vɥitɔ̃], commonly /ˈluːiː viːˈtɒn/), or shortened to LV – is a French fashion house founded in 1854 by Louis Vuitton. The label is well known for its LV monogram, which is featured on most of its products - this ranging from luxury trunks and leather goods to ready-to-wear, shoes, watches, jewellery, accessories, sunglasses, and books. Louis Vuitton is one of the world's leading international fashion houses; it sells its products through standalone boutiques, lease departments in high-end department stores, and through the e-commerce section of its website.[2][3]

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  • Purpose of the research :
  • Status: The high status has been enforced through carefully targeted advertising in high-end publications and selective distribution.

Louis Vuitton Business Model Evolution Louis Vuitton Business Model Evolution Presentation Transcript

  • Course: Strategic Management Lecturer: Alar Kolk Group presentation: Jekaterina Antsiferova Anna Shishkova Heli Tõnstein
  • T he Art of Travel
  • How Louis Vuitton took over the World?
  • Brand Ranking
    • Global Ranking
    Source: http://interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx (25.03.2011)
    • Luxury Brand Ranking
    • LV - Absolute Leader
  • MODERN AGE (1937-1996) PRESENT (1997 - now) Business Models for different periods EARLY DAYS (1854-1892) GOLDEN AGE (1893-19 3 6)
  • CAPABILITIES Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers EARLY DAYS (1854-1892) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Stores in France and London CUSTOMER RELATIONSHIPS P ersonal assistance TARGETED CUSTOMER Travellers of high class society and royalty VALUE PROPOSITION Luxury Quality Luggage boxes Trunks Special orders
  • CAPABILITIES New Stores Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partner - ship in the US GOLDEN AGE (1893-1936) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Limited number of stores Exhibitions Newspapers Gossip CUSTOMER RELATIONSHIPS P ersonal assistance Lifetime free repairs TARGETED CUSTOMER Imperial familys Aristocrats Artists Writers Cosmopolitan travellers Rallie drivers Rich Americans Loyal clients VALUE PROPOSITION Timeless & Modern Quality product Status symbol Special orders Boxes Packing Trunks Women handbags Perfumes
  • CAPABILITIES Globalizing Production COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partner - ship s Known personalities MODERN AGE (1936-1996) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Limited number of stores Global campaigns CUSTOMER RELATIONSHIPS P ersonal assistance Lifetime free repairs TARGETED CUSTOMER Prestigious clients Luxury shoppers (Americans, Japanese, Chinese) Loyal clients VALUE PROPOSITION Timeless & Modern Quality product Status symbol Special orders Boxes Trunks Women handbags Perfumes Briefcases Bags for Men
  • CAPABILITIES Globalizing Production Marketing Fighting counterfeit products COST STRUCTURE Production related costs PARTNERS Raw material suppliers Local partnerships (no franchise) Known personalities Model agencies THE PRESENT (1997-...) KEY RESOURCES Know-how Staff Material REVENUE MODEL Sale of goods DISTRIBUTION CHANNELS Limited number of stores Global campaigns Magazines louisvuitton.com CUSTOMER RELATIONSHIPS P ersonal assistance Lifetime free repairs Exclusive club TARGETED CUSTOMER Luxury shopper s age 50- ... age 25- ... High income men & women Loyal clients VALUE PROPOSITION Timeless & Modern Quality product Status symbol Special orders Leather goods: Luxury luggage Bags Accessories Fashion goods: R eady-to-wear S hoes Watches Jewelry
  • Keys to success
    • Mass marketing
    • Deploying mass-marketing techniques- celebrity endorsement and sport sponsorship.
    • Control
    • “ We do everything ourselves from creativity through manufacture and design.” - CEO Yves Carcelle.
    • Status
    • Gain higher sales, retain your high status.
    • Differentiation
    • By its products, services, channels.
  • Future Business Model RECOMMENDATIONS I nnovation and Diversification : 1.      clothes for Kids (ready-to-wear) 2.      shoes for Kids (shoes) 3.      schoolbags, briefcases (bags) 4.      leather covers available for Kindle e-book (bags)
  • Future Business Model RECOMMENDATIONS To develop new ideas into marketable products: 1.  cooperation with Amazon ( e-books - Louis Vuitton City Guides and Travel Books) 2.  cooperation with Russian artists to launch limited edition of special designed items 3.  distributed concreation with customers. Create a trend for making collection of limited edition of products in collaboration with consumers.
  • Future Business Model Belts, Scarves & Accessories Watches Jewelry Eyewear Books and pens
    • R eady to wear
    • clothes for Kids
    • Shoes
    • Shoes for Kids
    • B ags and boxes
    • schoolbags
    • leather covers for Kindle
    • E -books to amazon
    • C ooperation with Russian artists
    • C o-creation with customers
    New directions INNOVATION NEW PRODUCTS SERVICES
  • Future Business Model
    • RECOMMENDATIONS
    • Diffusion
    • Geographic expansion .
    • T o venture into untapped market - Russia , China, India .
    RUSSIA
  • Conclusion Current rise of Louis Vuitton is not a coincidence - rather something achieved through a good business strategy. Innovation is the key to make the Universe !