LVMH vs COACH (Pricing Strategy)
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Louis Vuitton announced in January 2008 that it would launch its first television and cinema advertising campaign, marking the first time it had done so. There were risks to being the first luxury brand to engage in mass market advertising, including potential misunderstanding from consumers and not fitting luxury targets. It would also be risky to fail in choosing appropriate channels and cinemas that matched its targets and lose budget by not achieving objectives.
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2. The target market for Louis Vuitton bags are wealthy women ages 35-45 in Singapore who seek high quality, fashionable products as a symbol of their social status.
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H&M is a Swedish clothing retailer known for fast fashion at low prices. In recent years, it has grown rapidly by opening many new stores globally and through strategic partnerships with fashion designers. For the 2009 fiscal year, H&M saw a 15% increase in sales but weaker growth due to the recession. It plans further expansion in key markets in 2010 through new stores and online sales in the UK. Key strengths are its fashion offerings and quality at low prices, while weaknesses include potential issues with its logistics and risks from oil price fluctuations.
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Lactuell
The document proposes a marketing plan to relaunch the Lactuel cosmetics brand in Egypt. It conducted market research through surveys that found the brand was no longer preferred but customers remembered its slogan. The plan targets females and males aged 18-55. It positions Lactuel as providing effective hair care at affordable prices. The relaunch will feature new packaging, lower prices than competitors, distribution in hypermarkets and stores, and an advertising campaign using TV, radio, magazines and outdoor banners with the slogan "I like it". The budget allocates 50% to broadcast media and 25% to print media. The impact will be evaluated through monthly sales, market share and customer feedback.
Lactuell MBA
The document proposes a marketing plan to relaunch the Lactuel cosmetics brand in Egypt. It analyzes Lactuel's current situation and market trends through a customer survey. The plan targets females and males aged 18-55. It positions Lactuel as providing effective hair care at affordable prices. The marketing mix proposes changes to packaging, pricing 10% below competitors, distributing through hypermarkets and stores, and a multimedia advertising campaign with TV, radio, magazines and outdoor ads to run for one year. The budget allocates 50% to broadcast media and 25% to print media. Success will be evaluated through monthly sales, market share and customer feedback.
Lactuell presentation
The document proposes a marketing plan to relaunch the Lactuel cosmetics brand in Egypt. It analyzes Lactuel's current situation and market trends through a customer survey. The plan targets females and males aged 18-55. It positions Lactuel as providing effective hair care at affordable prices. The marketing mix proposes changes to packaging, pricing 10% below competitors, distributing through hypermarkets and stores, and a multimedia advertising campaign including TV, radio, magazines and outdoor banners. The budget allocates 50% to broadcast media and 25% to print media. The effectiveness will be evaluated through monthly sales, market share and customer feedback.
Discussion Week 7BUS 103Marketing and Distribution Managem.docx
Discussion Week 7
BUS 103
Marketing and Distribution Management
Announcements
SoBA Research Experiment
May 12th to May 18th
Marketing Plan Requirements
Due week 11, everyone will submit through iLearn
Table of Contents
10 or 12 point font, business block, Times New Roman, 1 inch margins
15-20 page, double-spaced, typed document
10 minimum, quality references are required (APA format)
Submission through SafeAssignment is mandatory
No late submission
Marketing Plan
Structure
Executive Summary
Financial Overview
Current Market Situation
Market Description
Product Review
Table A2.1 (Segment Needs and Corresponding Features/Benefits)
Competitive Review
Table A2.2 (Sample of Competitive Products)
Channels and Logistics Review
Strengths, Weaknesses, Opportunities, and Threat Analysis
Table A2.3 (SWOT Table)
Strengths
Weaknesses
Opportunities
Threats
Objectives and Issues
First Year Objectives
Second Year Objectives
Issues
Marketing Strategy
Product
Price
Place
Promotion
Position
Marketing Research
Action Programs
Budgets
Controls
Works Cited
V.) Objectives and Issues
a.) First year objectives:
How much sales volume are you going to achieve?
How much market share are you going to capture?
V.) Objectives and Issues
b.) Second year objectives:
Sales
Market share
V.) Objectives and Issues
c.) Issues:
Key issues that will affect attainment of marketing objectives
How to overcome weaknesses or enhance strengths
Objectives Example: Coca-Cola
First Year Objectives:
During the first year, Coca-Cola Co. aims for Coke to achieve an increase in volume growth by 4.5%.
We also intend to achieve an 18.5% market share for Coke, up from 17%.
Objectives Example: Coca-Cola
Second Year Objectives:
We plan to introduce a new, healthier Coke product.
During the second year, the objective is to achieve 5% growth in sales and market share, equating to a sales increase of $730 million totaling $15.3 billion annually.
Issues Example: Coca-Cola
Issues:
Negative perception of the Coca-Cola brand as unhealthy.
Therefore, we must change consumer perceptions and explain product advantages.
VI.) Marketing Strategy
a.) Product
b.) Price
c.) Place
d.) Promotion
e.) Position
f.) Marketing Research
5Ps/5Cs
VI.) Marketing Strategy
a.) Product
A product strategy identifies, in broad terms, how you plan to sell your products to your marketplace.
a.) Product Strategy
A product strategy is a strategic plan containing any of the following:
Descriptions of target market(s), potential clients and their needs
How you want your product to be viewed by your clients
a.) Product Strategy
Product features and benefits
How your product features compare to your competitors'
Product changes that might enable better market positioning of your product
(focus on this point to write the product strategy)
a.) Product Strategy
Example: Apple iPhone5
… As awareness takes hold and retail availability increases, more variety will.
Ad budgeting
The document discusses advertising budgeting methods. It outlines three common budgeting methods: 1) percentage of past or forecasted sales, 2) competitive-parity based on market share, and 3) objective-and-task based on goals. The percentage of sales method is simple but can result in arbitrary budgets that are too high or low. The competitive-parity method bases the budget on competitors' spending but differences in strategy may require different budgets. The objective-and-task method links objectives to budgets and tasks, but determining the right objectives is important. The document recommends the objective-and-task method for its strategic approach and flexibility. It also notes recent trends in advertising like more promotions, international competition, clutter, advocacy ads
Marketing Strategies of olay,Fair&Lovely and Garnier
The document discusses the Indian beauty products market. It notes that the market size is currently around $1.5 billion and projected to reach $3 billion by 2014, growing at an annual rate of 20%. It then examines the skin care market and major players like Fair & Lovely, Garnier, and Olay. Fair & Lovely has been a market leader since 1976 using low pricing and advertising focusing on fairness. Garnier targets a wider range with moderate prices. Olay is a premium brand targeting older urban women, with higher prices and exclusive showrooms with dermatologists.
TFC Case Study.pptx
The document provides a marketing presentation for The Fashion Channel (TFC) by Dana Wheeler, the Senior VP of Marketing. It summarizes TFC's business, competitors, target audiences, and proposes 3 strategies - mass marketing, niche marketing targeting "Fashionistas", and segment marketing targeting "Fashionistas" and "Planners & Shoppers". Dana Wheeler suggests scenario 3 of segment marketing as it would increase awareness, ratings from 1% to 1.2%, and CPM from $2 to $2.5, generating the highest revenue of $42.75 million and net income of $16.88 million. The presentation analyzes the advantages and potential disadvantages of this approach.
OOH during a downturn
(1) Belgium has been in lockdown since mid-March due to the COVID-19 pandemic, with restrictions on travel, gatherings, and non-essential businesses. (2) Advertisers have significantly reduced out-of-home (OOH) advertising spending due to reduced foot traffic, but some brands have adapted messages to encourage staying home. (3) Maintaining advertising spending during an economic downturn can help brands emerge stronger by preserving brand health and market share in the long run, despite short-term profit losses, according to past studies.
Ppa Advertisingin Recession 27.05.09 Jgv3
The document provides guidelines and information for advertisers during an economic recession. It finds that maintaining advertising spend during a downturn can help brands (1) defend their values and brand-consumer relationship, (2) increase market share by outspending rivals, and (3) position themselves strongly for future growth when the economy recovers. The document also examines how consumer behavior changes during a recession and argues that magazines provide an effective advertising channel as readers actively engage with content and ads.
Ppa advertising in recession
The document provides guidelines and recommendations for magazine advertising during an economic recession. It discusses how maintaining or increasing advertising spend during a downturn can help brands gain market share from competitors and position themselves strongly for future growth. Research shows that magazines are an effective advertising medium in a recession as they reach loyal, upmarket audiences and ads are trusted and seen as relevant by readers.
Francisco Havas Media Mpg
This document discusses strategies for managing marketing budgets during an economic crisis or recession. It provides background on past recessions, including that they tend to be short and mild, lasting around 10 months on average and resulting in around 3% decrease in GDP. It also notes that some industries are hit harder than others in recessions. The document discusses strategies that past companies have used when facing recessions, noting that those who continued or increased advertising saw higher sales and market share gains after the recession compared to those who cut marketing. It provides examples of companies like Findus that increased market share during recessions through advertising. It also discusses how consumer values and purchasing may shift somewhat towards value and promotions during recessions but overall spending patterns do not radically
Zadig & Voltaire
This document discusses the marketing strategy for the launch of Zadig & Voltaire's new "Glam Rock" collection line. It aims to introduce the collection in a way that fits with the brand's rock and roll image while appealing to its target markets of executives and "bobos/kidults" aged 25-35. The marketing plan focuses on limited traditional advertising, exclusive placement in Zadig & Voltaire stores, and buzz marketing events to generate interest and position the products as affordable luxury goods that break conventions of the industry. The budget is estimated at 16-18 million euros with the goal of profiting 15-20% to fund further expansion.
Marketing strategies in business world
MARKETING STRATEGIES
A strategy that integrates an organization's marketing goals into a cohesive whole. Ideally drawn from market research, it focuses on the ideal product mix to achieve maximum profit potential. The marketing strategy is set out in a marketing plan.
TYPES OF STRATEGIES
General Marketing Strategies
Decision Area Strategies
Case studY 1: Evian - Roller Babies
CASE STUDY 2:WHOPPER’s “SACRIFICE”
Sales promotion schemes project report mba
The document discusses various methods used by companies to determine their sales promotion budgets and strategies. It describes four main methods for setting the promotion budget: the affordable method, percentage of sales method, competitive parity method, and objective and task method. It also discusses different levels of sales promotion targeting dealers and consumers, including various incentive-based programs. Overall, the document provides an overview of approaches to planning sales promotion expenditures and implementing promotional activities.
Conferecia Instituto de Empresa pricing
This document discusses pricing strategies in retail. It begins by outlining the speaker's experience in retail management. It then discusses different pricing methods like cost-plus, competition-based, and value-based pricing. It notes that the retail industry is different due to factors like high sales volume, competition, and low margins. As such, different retail formats like supermarkets, hypermarkets, and discount stores require different pricing models due to their varying profit and loss structures. The document also discusses how assortment size, category, channel, and promotions further impact appropriate pricing solutions. It provides the example of Poundland, a UK retailer that prices most items at £1. Finally, it briefly touches on antitrust authorities and comparison shopping
Judy Holm ASPIRATIONS and CMO case studies
The document provides details on several case studies from the work of Judy Holm and her company Aspirations Marketing and PR. It summarizes strategic work done for clients in various industries including financial services, beauty, non-profits, wineries, and events. Specific case studies highlighted include developing a holistic client experience strategy for Schwab that improved branding and saved $20-25 million annually, turning around a struggling non-profit through restructuring and improved PR, and producing a high-profile art exhibition gala that exceeded attendance and funding goals.
Product life cycle
The document discusses the product life cycle which includes four stages: introduction, growth, maturity, and decline. Each stage poses different challenges and opportunities for sellers. Profits typically rise during growth as sales increase rapidly, peak during maturity as sales maximize, and decline during maturity and decline as sales decrease. Different marketing, financial, manufacturing, and HR strategies are needed for each stage depending on factors like sales, costs, profits, competitors, and customers.
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LVMH vs COACH (Pricing Strategy)
- 2. Louis Vuitton's first-ever TV adv campaign • So executive at Louis Vuitton's annouced in January 2008 an adv campaign on television and cinema. • First time ever in this domain. • Risks: • To fall against the misunderstanding of people (risk of being the first). • Mass market not obligatory fits luxury targets. • Don't fail in choosing channels & cinemas. Channels & cinemas has to fit the targets. • Losing advertising budget, if they don't match their objectives.
- 3. EXCHANGE RATE EFFECT • March euro/dollars : 1.50 - November euro / dollars : 1.25 • Variation: -16.6% • Cut of 10% of the $8000 suit to maintain holliday sales in December • Costs : • Production in dollars and euro • Marketing in euros • 50% of wages in euro • Revenue: • 28% in euro • 72% in other currency
- 4. Demand curve 2 facts to take into consideration: • As it is said in the document overall sales decreased in many importat markets • US, Russia and emerging markets. • However this decrease in sales is balanced by higher sales costs > It means that the demand is decreased however it is balanced by the remaining customers who are ready to pay more for the same product. They don't really care about the price > The company has still a margin in terms of price elasticity. They did not reach the psychological limit
- 5. LVMH vs COACH Pricing Strategy
- 6. LVMH vs COACH Pricing Strategy
- 7. LVMH vs COACH Pricing Strategy LVMH is High price, high fashion where in Coach is High price, fragmented fashion
- 8. LVMH vs COACH Pricing Strategy Parameters LVMH Coach Pricing Objective Branding, Image building Sales Escalation Cost Eg: $1000 Eg: $100-$500 Positioning Luxury Products at high end price Affordable luxury products Promotions & Sales Not much Advertising, Focus on specific segment Alot of Advertising intially, to increase footfall COACH commenced with affordable high pricing but lately there has been a decline in their advertising & hence sales wherein LVMH have maintained the same strategy infact have plans to raise prices, reducing marketing budget.
- 9. T H A N K Y O U