The PPT deals about the marketing strategy of three leading Brands in the world of leather.. the war of brands between COACH, LOUIS VUITTON AND HERMES...

1. INDIAN LEATHER INDUSTRY
LOUIS VUITTON

2. The Leather Industry holds a prominent place
in the Indian economy. This sector is known for
its consistency in high export earnings and it is
among the top ten foreign exchange earners for
the country.

3. With an annual turnover of over US$ 7.5
billion, the export of leather and leather products
increased manifold over the past decades and
touched US$ 4.86 billion in 2011-12, recording a
cumulative annual growth rate of about 8.22% (5
years).

4. The Leather industry is bestowed with an
affluence of raw materials as India is endowed
with 21% of world cattle & buffalo and 11% of
world goat & sheep population.

5. The leather industry is an employment
intensive sector, providing job to about 2.5
million people, mostly from the weaker sections
of the society. Women employment is
predominant in leather products sector with
about 30% share.

6. India is the second largest producer of
footwear and leather garments in the world .
India accounts for a share of close to 3% in
the global leather import trade of US$ 137.96
billion (2010)

7.  Second largest footwear producer
after China.
 Annual Production 2065 million pairs.
Huge domestic retail market 1950
million pairs (95%) are sold in domestic
market.

8. Footwear export accounts for 45.05%
share in India’s total leather & leather
products export.
 The Footwear product mix Gents 52%,
Ladies 39% and Children 9%

9.  Second largest producer with annual
production capacity of 16 million pieces.
Third largest global exporter.
 Accounts for 10.43% share of India’s
total leather export

10. Fifth largest global exporter.
Annual production capacity - 63
million pieces of leather articles, 52
million pairs of Industrial gloves & 12.50
million pieces of Harness & Saddlery
items.

11. Accounts for 23.44% share of India’s
total export.

12. Annual production 2 billion Sq.ft.
Accounts for 10% of world leather
requirement.

14. PREPARATORY
STAGES
CRUSTING
TANNING
SURFACE COATING

17. 4 P “KELLY” BAG
PRODUCT Precisely stitched up using high quality materials, achieving a
level of “product” element.
PRICE Super high price of up to 7,00,000 yens(the most expensive of
all the bags)
PLACE Sold mainly at directly managed stores.
PROMOTION Conduct less mass advertising.

18. 4 P PARTICULARS
PRODUCT Ignores consumers who cannot purchase the high-priced items; Follows
the Principle of Special Orders.
PRICE Fixes the price to stimulate demand of customers at once they are
interested in the products and prevent them to postpone the purchasing
habit. , LV does not adopt pricing in odd numbers; Sales in Value Sets.
PLACE Uses its flagship stores, which are larger than normal in scale, in order to
respond to the need of a great number of customers; stores located in
Prime Area to maintain brand image as exclusive luxury brand.
PROMOTION LV accentuates publicity in newspapers and magazines; queuing up in
front of the store is the one of the strategies that LV employs to appeal to
the general public.

19. 4 P PARTICULARS
PRODUCT Uses Handcraft Leather for manufacturing of the products;
New concept of the brand was "Fun, Feminine and
Fashionable."
PRICE Advocated “Accessible Luxury” thus made available to those
classes of people who could afford luxurious items as a style
quotient.
PLACE Mainly through retail outlets; at a later stage it imbibed the
concept of Flagship Stores as well at various places of the
city.
PROMOTION Used Radical Marketing Strategy Policy for its Promotional
Activities.

20. Hermes achieves satisfactory results
Louis Vuitton is more successful than Hermes
at the moment.
Furthermore, Coach's marketing strategy
exploded faster than Louis Vuitton's despite
marketing being Louis Vuitton's greatest
strength.

23. MODULE HERMES L.V COACH
SENSE  Smooth
touch of
superior
materials.
 Monogram
used not to
define the
product, but
to smarten the
product.
 Monogram
used not to
define the
manufactu
rer, but to
smarten
the
product.
FEEL  Design and
shop display
evoking
horse
carriage
and horse
ride
 Trunk design
and shop
Interior
evoking
travel.
 Accessible
luxury.

24. MODULE HERMES L.V COACH
ACT  Suitable
shape of
handle for
use; can
express
elegance.
 Patrican
Trunk style
produces
grace travel.
 Expression
of Active
Atmospher
e ;
 i.e.
working
class
people.
RELATE  Sponsorship
of horse
races as
cultures of
noble
society.
 Sponsorship
of Yaont Race.
 Street
posters;
outdoor
advertising
media
used.

25. MODULE HERMES L.V COACH
THINK  Many
variations of
colours,
material,
sizes.
 Collection of
Monograms
 Collection
of
Signature
Lines.

27. While group established companies, such as
Louis Vuitton, adopt modern product making
methods and ways of selling which are close to
the traditional marketing principle, they
consistently present extremely advanced and
varied customer experience based on their own
traditions.

28. 1) The luxury fashion brands are divided into
three categories:
traditional established companies, such as
Hermes,
the group established companies like Louis
Vuitton and
 new companies like Coach.

29. 2) Although established companies like
Hermes tend not to conform to
traditional marketing theory, they
consistently present extremely advanced
and varied customer experience based on
their traditions.

30. 3) New enterprises, such as Coach, adopt
rational product making methods and ways of
selling based on the fundamental marketing
principle, and present a modern and tradition-
independent customer experience to a wide
variety of customers.

31. 4) New enterprises, such as Coach, adopt
rational product making methods and ways of
selling based on the fundamental marketing
principle, and present a modern and tradition-
independent customer experience to a wide
variety of customers.

32. 5) Hermes's ways of creating customer
experience are helpful to companies which
have traditional arts and produce high-class
products.
6) Louis Vuitton sets a good example of
more aggressive customer expansion
strategies.

33. 7) Coach's ways of creating customer
experience provide useful information
for companies which are rather -new and
actively trying to develop a market for
products positioned halfway between the
high and moderately priced products.

35.  The leather industry must keep up with the changes
around, in order to survive and compete against its
rivals.
 Marketing activities and e-marketing efforts
following the general tendencies of our time are
among the leading issues that should primarily and
carefully be considered in the leather industry.

36. In business-to-business marketing activities, initially
the deficiencies of companies in marketing may be
identified and training may be provided in this regard
at various levels in order to recover this deficiency.
A portal, which works actively in global terms, can be
created to accelerate cooperation between enterprises
in the global sense.