Marketing Overview

Jarucha Janmekha
and
Shen Minyan
ADMC-150-0LA
Introduction to Marketing Communications
Market Place Overview
Date assignment given: February 23, 2015
Date assignment submitted: Mar 22, 2015
Alison Durtnall

Contents
Overview of brand 3
Situation Analysis 9
Demographic Forces
Ecomomic Forces
Natural Forces
Technological Forces
Political Forces
Cultural Forces
Competitors 15
Hermès
Coach
Gucci
Prada
The overall traget market 32
Demographic
Psychographic
Geographic
Behavioural
Brand Recommmendations 36

Jarucha Janmekha Shen Minyan
3
Overview of the brand
The brand of Louis Vuitton Malletier (referred to as Louis Vuitton, or
LV) is set up as the king of the fashion jun-
gle. Its history can be traced back to 1821.
The brand became famous for working as
the trunk-maker to the last empress of the
French, known as Eugénie de Montijo and
Napoleon III’s wife. In 1987 Louis Vuitton
merged with Moet Hennessy but is run inde-
pendently and has expanded its business to
50 countries.
Louis Vuitton insisted upon high quali-
ty handmade goods: "Each trunk has a serial number and can take up to 60
hours to make, and a suitcase as many as 15 hours. Many of the company's
products utilize the signature brown Damier and Monogram Canvas mate-
rials, both of which were first used in the late 19th century."(Martin, Rich-
ard, 1995)
Louis Vuitton’s product is positioned as high price while providing
high value in terms of high quality, lifetime warranty, original design, and
first class materials. Louis Vuitton always presents itself grandiosely be-
cause they target upper class customers. According to the background
knowledge of LV, its brand personality can be represented by traits such as
Mercedes-Benz and BMW as cars, the peacock as an animal, Chanel N°5 as
a perfume, and both women’s red and classic brown as colours.

4
Louis Vuitton’s product positioned high price with providing high val-
ue includes high quality, lifetime warranty, original design, and first class
material channel. Louis Vuitton always presents itself grandiosely because
they target upper class customers. According to the background knowledge
of LV, Mercedes-Benz, BMW, and Volvo in car, peacock in animal, Chanel
N°5 in perfume, the women’s red colour and the classic brown colour can
be combined to represent this brand personality.
Overview
Product
Neverfull
Louis Vuitton’s ladies hand-
bags appeared as a category in
1892. Neverfull is the classic pat-
tern amongst these luxury bags.
This series has three sizes- Nev-
erfull GM, MM, PM, with small
inner cases for the Neverfull MM
and PM, the bags conform to the
size of the customer’s belongings.
All the versions are durable because Louis Vuitton stands behind this
piece so that the product can be either exchanged in store or repaired by
the brand. Elaborate crafting like textile lining and heritage details are em-

5
phasized repeatedly in the description of each Louis Vuitton bag.
The manufacture of Louis Vuitton’s goods have not changed since the
19th century. They are really durable for as long as the customer uses them,
and most of them are made from water-resistant canvas so they are suitable
even for rainy weather. (louisvuitton.com, 2014)
In addition to the bag’s capabilities, custom monogramming is the
other feature of the Neverfull bag. Customers can select two or three cap-
ital letters and favourite colors and print them on the bag, giving them
the opportunity to participate in
Louis Vuitton’s design. The other
selling point is the fact that there
are millions of durable versions
-- the works of artists like Stephen
Sroupe, Yayoi Kusama and Takashi
Murakami have all contributed to
LV’s design.
Louis Vuitton has built them-
selves as a luxury, high quality and
timeless brand. (Kaushan, n.d.)
Neverfull fits into this brand seam-
lessly.
http://www.popsugar.com.au/
fashion/Louis-Vuitton-Never-
full-Fall-2013-Campaign-Im-
ages-31078182

6
Price
The bigger sized bags are more expensive. Neverfull bags are catego-
rized into Icon, Personalization, and Legendary Monogram. The Icon Nev-
erfull GM ranks in first place at $1,340 per bag. Followed by Icon Neverfull
PM and Icon Neverfull MM at $1,260 and $1,180, respectively.
http://eu.louisvuitton.com/eng-e1/search/neverfull

7
The Lengendary Monogram pattern is set at the same price as the Icon
pattern, depending on the bag’s size.
Peronalized Neverfull Monogram series follow similar price rules as
the Icon series. The price ranges from $1,790 to $1,650 for this series.

8
http://eu.louisvuitton.com/eng-e1/stores
Place
For the distribution, the company has expanded to more than 500
stores located throughout the world. Louis Vuitton also distributes product
launch and fashion show information on the company’s own website www.
LouisVuitton.com and http://louisvuittonoﬃcialonlinestore.com/.
Promotion
For promotion, every season Louis Vuitton will launch limited edition
bags that are generally only available by reservation through Louis Vuitton
stores. On May 23, 2012, Louis Vuitton announced a team up with Yayoi
Kusama. These products were sold in LV’s 461 stores starting on July 11,
2012 (Cowles, 2012). On the other hand, Louis Vuitton releases advertising
in newspapers and magazines instead of mass media. Louis Vuitton, how-
ever, does not launch advertising on television. (Nagasawa, 2008)

9
Demographic Forces
As the luxury consumer demographic changes, this can
have an impact on luxury brands. For example, the rise of
China in the luxury market is due to a richer middle class that
has more money to spend and is travelling more often. The
recent growth in the European luxury market is in part due to
spending by Chinese tourists on luxury goods. Chinese tour-
ists buy more luxury goods in Europe than in the U.S. because
the Chinese do not need visas to visit European countries.
The younger luxury consumers hold the biggest potential for
growth in the market. As consumers age, they are more like-
ly to save money and less likely to spend it. Luxury brands
need to target the younger generations X and Y and millen-
nials in order to grow their market. This carries through to
their choice in product presenters, who need to be appealing
to younger generations. Even though these younger consum-
ers may not fall into the luxury income range, they are more
willing to make high value luxury purchases than older gener-
ations of the same income range (Luxurydaily, 2014).
Economic Forces
In 2009, the overall Canadian luxury market went down
13 percent. Before this 2009 recession, new luxury customers
had limited purchasing power to buy luxury brands. This is re-
SituationAnalysis

10
SituationAnalysis
flected in the fact that 10 percent of the Canadian luxury buyers
accounted for 74 percent of the money spent on luxury goods –
a strong establishment trend.
In contrast, in 2010 the same luxury market went up 14
percent from 2009 and the first three months of 2011 pulled up
another 12 percent. This increased market revenue was from
new Canadian luxury buyers reflected in the fact that 8 percent
of the Canadian luxury buyers accounted for only 45 percent of
the money spent on luxury goods. The establishment trend had
given way to new luxury customers spending more money than
before. Consequently, new consumers are coming from gener-
ation X and Y instead of from the baby boom and senior gener-
ations. These new consumers are people who had never made a
luxury purchase before 2007, but who in 2011 represented half
of all luxury customers and 35 percent of the money spent on
luxury goods (Timm, 2011).
In 2014, the luxury market in Canada is increasing and it
has more opportunity to grow. New purchasing power is main-
ly male. However, women still have the power to buy luxury
goods as before (Euromonitor International, 2015). Marc Ja-
cobs’ design identity of his products for Louis Vuitton has been
becoming more modern to support the women who were born
in generation X and Y, according to the spring 2014 advertise-
ment campaign featuring Michelle Williams (see appendix A),

11
SituationAnalysis
who was born in 1980, a stunning presenter in their advertise-
ments to new consumers. On the other hand, at the same time
for Louis Vuitton Spring/Summer 2014 they used Catherine
Deneuve (see appendix B), who was born in 1943, to keep
their appeal with older traditional customers.
Natural forces
The luxury industry faces the same challenges as other
industries when it comes to the impact of natural forces. Nat-
ural disasters create high prices for the raw materials that the
luxury market needs, such as cotton, leather, silk, and cash-
mere. Flooding in Pakistan and China due to clear-cutting
of forests, and also in Australia and Bangladesh due to large
tropical storms is disrupting the textile factories in these areas.
Urbanization of Shanghai has resulted in a huge loss of silk
trees from the area. A long and harsh winter in Mongolia is
lowering the availability of animal products from that country.
These natural forces aﬀect the supply chain of luxury compa-
nies. Even transportation costs are rising due to the rising fuel
costs linked with storm damage at refineries and wildfires at
African oilfields. This could eventually aﬀect the mindset of
the consumer, who may not want to bring their luxury goods
outside in case they might get ruined by a storm or other bad
weather (Globalization 101, 2011).

12
SituationAnalysis
Technological Forces
Modern day technology is helping people’s lifestyles and
habits with almost everything. According to the comScore
report, people in Canada spent 43.5 hours on the Internet per
month, almost double the worldwide average of 23.1 hours.
This average monthly internet usage remained consistent
across all income groups (Omar El Akkad, 2012). Moreover,
87 percent of internet users use the internet to get information
before they go to a store(see appendix C), and 70 percent of
internet users use the store’s own website or App before they
go to the store’s location (Google, 2014). Brands not only must
try to upsell their products, but they have to maintain their
products to hold their own in the market. To this end, many
luxury brands have begun selling their products online (Mau,
2013).
Designing is being done faster than before because new
types of synthetic fabric and materials are being created faster
than ever before. For example, NASA Aerogel, sweat-wicking
fibers, and fire retardant garments all open up new design pos-
sibilities that weren’t there before. Most textile companies that
make designer bags, clothes, belts, and shoes are going auto-
mated as a means to cut cost and speed up production. This is
a major development for traditional luxury brands who pride
themselves on hand craftsmanship (Think run way, 2013).

13
SituationAnalysis
Political forces
Around the world, changing politics are having an im-
pact on the luxury market, Luis Vuitton included. Mod-
ern day Russia is a democracy, but just 25 years ago it was a
communist country. Russian businessmen grew up in an era
where luxury was not possible because everyone was equal
under the communist government, and now they are the
main luxury consumers in Russia. With the new democratic
Russia, rich people can show oﬀ their money by buying luxu-
ry products. Wealthy Russians spend an average of 13 percent
of their household budgets on clothes and shoes, which is
more than double the percent of wealthy Japanese and Brit-
ish.
China is another country where politics are impacting
the luxury market. With the biggest luxury market in the
world, the Chinese market is a boon for European and Amer-
ican luxury brands. The government in China is very focused
on controlling and protecting its country. Websites like Twit-
ter and Facebook are blocked, and Chinese-sponsored web-
sites are used instead. In time, the Chinese will be focusing
on developing their own luxury brands. There is a generation
of young Chinese fashion designers, trained in Paris and

14
SituationAnalysis
Milan, which are now opening their own boutiques in Bei-
jing and Shanghai. If the Chinese government decides that
European luxury brands are a cultural invasion, they could
easily block their access to the country and promote Chi-
nese-owned luxury brands instead. Companies such as Lou-
is Vuitton must be careful to avoid looking like they are tak-
ing advantage of Chinese people (Globalization 101, 2011).
Cultural Forces
A recent study shows some cultural eﬀects related to
luxury brands. The same designer glasses were given to all
participants, with half being told they were genuine brand
name glasses and half being told they were fake. When giv-
en a math test only 20 percent of the “real” group cheated,
while 60 percent of the “fake” group cheated on the test.
This shows that the eﬀects of counterfeiting go beyond the
damage to the luxury brand involved (Mull, 2009). Canadi-
an culture has strong ethic and pride which carry over to its
luxury market. Moreover, the industry of luxury brands has
been losing as much as $12 billion every year to counterfeit-
ing (Wilcox, Kim, Sen, 2014). Paparazzi caught some celeb-
rities using fake luxury brands, so people might think that
this is not a serious concern.

15
Competitors
Broadly, the parent company of LV, LVMH has competitors includ-
ing the conglomerates PPR and Richemont. PPR markets a wide range of
products from fashion and beauty care to home appliances. PPR also sells
leather handbags and luggage. Gucci is one of the brands owned by PPR. In
addition to the large players PPR and Richemont, LVMH has small com-
petitor companies such as Hermès, Prada, and Chanel. (Aaboe-Ring, 2013)
Competitors

16
Hermès
Hermès sets itself up as a luxury
brand producing exclusive and exqui-
site high quality goods made by sixth
generation experienced craftsmen using
high quality materials. Hermès’ range of
products can be categorized into leather
goods (including bags), apparel, saddlery, silk products, shoes, accessories
and fragrances. In particular, Hermès is famous for designing and man-
ufacturing high-end handbags to customer specifications. Leather goods
make up 46% of its sales revenue with 1.597 million Euro (Hermès 2012
Annual Report, 2013, P.31)
Unique sales proposition
Due to the high quality of design and creation of unique customized
products, the brand urges its customers to “faites nous rêver” (make us
dream.) Hermès skilled designers and craftsmen will fulfil special and un-
usual customer requests. Customers need to pay a high price tag to get a
limited edition product that is the symbol of value. Hermès products are
not only for purchasing and consuming, they are also for collecting. (Com-
petitor analysis, n.d.)
Competitors

17
Product
Birkin bags come in different sizes, colours and leathers. The leath-
ers include calf, ostrich, crocodile, and lizard. Birkin bags have a variety
of sizes from 25, 30, 35, and 40 centimeters to even 50 and 55 centimeter
bags. Also on offer is a wide range of colors such as pink, red, brown, baby
blue, navy blue, olive green, orange, white, black, gold, tan, even diamond.
( "Can a Birkin bag Get You Special Treatment?", 2008) An average Birkin
bag is created in 48 hours. Leathers are obtained from different tanners in
France. (Rainey, 2015) The metallic hardware (the lock, keys, buckle hard-
ware, and base studs) plated with gold or palladium to prevent tarnishing.
(How to Bag a Birkin, 2008)
The Birkin bag is named after actress and singer Jane Birkin who com-
plained to Hermès chief executive Jean-Louis Dumas that it was hard to
find a leather weekend bag she liked on a flight in 1981. In 1984, he created
a black leather bag especially for her. (Lewis, 2014)
Hermès provides telephone and email customer service. It gives customers
2 years worldwide coverage. In Canada, Hermès international warranty
will follow this law. (General terms and conditions, 2014)
Competitors

18
Price
The price of a Birkin bag starts at US$5,000. The company produced
some of the most expensive handbags in the world. Birkin handbags craft-
ed from platinum and diamonds were priced at US$1.9 million each in
2012. (Top 10 most, n.d.)
Promotion
Hermès never oﬃcially gives clients any discounts. However, the second-
hand bag market is booming. Second-hand Hermès Birkin bags can be
priced up to $56,000 online. (LAU, 2012)
Place
Hermès has four stores in Canada, specifically, in Vancouver, Calgary,
Montreal, and Toronto. Even so, the company has created an online shop-
ping website for Canadian customers. (Find a Hermès, n.d.)
Competitors

19
Competitors
Coach
Coach prides itself as a design house
of modern luxury accessories and life-
style collections. However, it is not a di-
rect competitor of Louis Vuitton, because
the product price range does not overlap
with that of LV. A majority of its handbags for women are priced between
US$200 and US$600. (Company profile, n.d.)
During its 2012 fiscal year, the market share of Coach’s leather prod-
ucts dominated 65% of its total revenue. (Coach Annual Report, 2012)
Unique sales proposition
Over the past years, Coach has positioned itself as “accessible luxu-
ry” for any generation, and now Coach has a vision to become the com-
pany that defines global modern luxury. Coach’s design is known for its
distinctive combination of style and function with New York spirit. Coach
owns a long-standing reputation and a distinctive image that it consistently
launches seasonal new products, expanding channels and exploring inter-
national markets. (Our story, n.d.)

20
Product
The Coach classic women’s bag is named Classic Duﬄe in Leath-
er. From the description of this bag on the company’s homepage, Coach
provides five colours in black, mahogany, tan, vermillion, and olive moss.
Duﬄe became famous in 1973. The conception of design is to be lighter in
weight. It's one of five iconic designs being reissued in a limited edition col-
lection crafted entirely in an updated version of the original Glove Tanned.
("Coach, Inc.," 2013)
The customer service Coach provides includes order status, shipping
information and returns and exchanges. Customers can order the bags on
the Coach website and ask them to ship the products to a specific location
in Canada. Customers can return the product within 60 days in its original
condition.
Promotion
Coach launches occasional advertising in national and international
media during vacations such as Thanksgiving and Christmas. In addition,
it adopts the flash sales strategy, which reduces prices for select periods on
its website and in stores.
Coach is one of the first luxury brands to leverage social media such as
Competitors

21
Competitors
Facebook, Twitter, Instagram, Pinterest and even Sina and Weibo (social
websites in China) to reach out to their customer demographic.
Price
The average price of Coach Classic Duﬄe in leather is $398 per bag.
Place
Coach’s products are sold through 39 stores mainly located in Toron-
to, Niagara Falls, Montreal and Vancouver. Most of the stores are in shop-
ping malls and 10 of them are company owned stores, with 2 outlet stores.
Coach has an international order website.

22
Gucci
In 1921, Guccio Gucci started his
small leather goods business in Flor-
ence, Italy. To further his brand, he
used his family to launch the GG logo
to make it more memorable for peo-
ple (Gucci, 2012). In this day and age,
Gucci is one of the most successful
luxury brands in the world. This is in part due to their oﬀering of multiple
categories of products to meet the demands of their consumers. In the U.S.,
Gucci held 32 percent of the market share in 2013, and thus became the
biggest and most powerful luxury brand in the United States (Shopping 24
H, 2013). Revenue for 2014 topped 16 million dollars. In conjunction with
that, Gucci was at number 60 (see appendix D)on the list of Top 100 Most
Valuable Global Brands 2014 (Millward Brown Optimor, P. 29, n.d.). The
brand focuses on both men and women consumers from middle class to
high class, and their consumers are likely to be stylish and fashionable (An-
wers, n.d.).
Competitors

23
Competitors
Unique Selling Proposition
The combination of fashion and craftsmanship has become a strong
identity for Gucci, with diﬀerent kinds of materials used in Gucci prod-
ucts such as bamboo and other flora. In addition, sometimes throughout
the year they oﬀer discounted prices to customers (Gucci, 2012) under the
premise “Quality is remembered long after price is forgotten.” Gucci’s cli-
entele are left feeling personally fashionable. Every product from Gucci is
made in Italy which is important to this brand, with over 370 shops global-
ly (Competitor Analysis, n.d.).
Product
Gucci nice GG supreme canvas tote is a multipurpose bag that match-
es with a woman’s lifestyle, going everywhere from casual events to an eve-
ning celebrity party (see appendix E). In order to satisfy such varied needs,
it has many options for colour, double handles with 7” drop, light gold
hardware plus maple brown leather trim in a medium size. Featuring nat-
ural cotton linen lining, inside hook closure, small spur details with eques-
trian inspired numbered holes on the handles, interior zipper and smart
phone pockets, all of course made in Italy (Gucci, 2012).
Price
C$ 1025

24
Promotion
The company has advertised their Gucci nice GG supreme canvas tote
by focusing mainly on print media such as outdoor media or magazines
featuring a presenter. Furthermore, Gucci had Li Bing Bing (see appendix
F), a Chinese superstar famous in China, to represent an independent feel-
ing by which classical style mingled with modern creativity (Butterboom,
2013). Some seasons feature promotions to discount their products, for
example, buy one get one free, or 20-50 percent oﬀ.
Place
This bag is available at Toronto’s flagship 130 Bloor Street West Gucci
store and at The Fairmont Hotel in Vancouver at 900 West Georgia Street.
Gucci also makes the bag available through their own online shopping
website.
Competitors

25
Prada
Italian Mario Prada started
the almost 100 year old luxury
fashion brand, Prada in 1919 in
Milan, Italy. The company started
by selling luxury accessories such
as beauty cases, leather bags, and trunks (Prada Group, 2014). The Prada
family name became the brand for their independent ready to wear luxury
apparel. The brand has developed successfully to be number 96 on the list
of Top 100 Most Valuable Global Brands 2014 (Millward Brown Optimor,
P. 29, n.d.). Presently, Prada still sells luxury goods to upper class wom-
en aged 25-55 years old. In 2014, Prada’s year over year report in January
showed that net sales in the Americas increased 10.9 percent from Euro
440 million to Euro 488 million (Prada Milano, P. 38, 2014).
Unique Selling Proposition
Prada has a long history and is a diﬀerent, independent product for
upper class businessmen who like to do activities, and for women from
a high social class who are proud of themselves. The value of their high
priced product is for anyone who wants good quality products. Further-
more, they have communication technology to communicate with their
Competitors

26
customers both online and oﬄine. They are rich in production houses, so
they have more than 12 locations within the United Kingdom and Italy
(Prada Milano Dal 1913(2), P. 15, 2014). Prada make themselves out to
be a product that also provides for men, and their products are high value.
People know the Prada brand to be for high social class customers. More-
over, they are good at selling clothing and accessories that people can see
on runways worldwide.
Product
Prada twin-pocket tote (see appendix G) is intended for women in
high social positions. This tote is made from glace calf leather with double
leather handles. Moreover, the product design incorporates a metal letter-
ing logo on a leather triangle on the outside with Prada logo lining and two
inside pockets, including one with zipper closure and center snap closure
(Prada, n.d.).
Price
C$ 1,830
Competitors

27
Price
C$ 1,830
Promotion
They use model “Vanessa Axente” (see appendix 8) to present this
product on Stylistically simple, high-end products spring 2013 collection
because they want to use young woman to present this product to stunning
they costumers and feeling femininity model women (Ikifashion your style
inspiration, 2012).
Place
Prada shops located three shops in Ontario, one shop in Montreal,
One shop in Calgary. Moreover, their costumers buy this product online
Brand personality
Competitors

28
Competitors Analysis
Louis
Vuitton
Hermes Coach Gucci Prada
Product Neverfull Birkin Classic Duﬄe
in leather
Gucci
nice GG
supreme
canvas tote
Prada
twin-pock-
et tote
Price ($) 1,340 –
1,790
More than 5,000 398 1,025 1,830
Place 8 Stores 4 Stores 39 Stores 2 Stores 3 Stores
Promotion - New edi-
tion prod-
uct every
season
- Never oﬀer
discounts
-Second hand bag
- Price is higher
- Occasional
advertising
-Flash sales
strategy
-Social media
public account
- Discounts
during
some sea-
sons
- Buy one
get one in
some sea-
sons
- Use
young
model to
represent
their brand

29
Positioning map
Price
Distribution
Price
Price
Distribution Distribution

30
Key Brands Characteristics
Louis Vuitton Hermes Coach Gucci Prada
1. Louis Vuitton’s
goods extend
lasting and wa-
ter-resistant
Hermès has
both innova-
tion design
and iconic
design
Wide market
channel
A storied past. High price with
great value.
2. The design of
product com-
bines with the
work of artists
Long waiting
list marketing
strategy
Low prices Many kinds of
products available
for men and wom-
en.
Popular for acces-
sories.
3. The trademark
LV logo can
be recognized
easily
Never make
discount
product
Use social
media
Supports not-for-
profit organizations
such as women and
children’s programs
in Africa and Asia,
the Kering Corpo-
rate Foundation
to end violence
against women, and
UNICEF.
They costumers
have loyalty.
4. The price of
bag depends
on its size and
edition
The inacces-
sible price
has thrived a
valuable as-
sets in social
status
Long history High quality prod-
uct.
- Using young
model to represent
their brand

31
5. Market channel
sets up both
in stores and
online
Hermès only
use natural
materials and
new exotic
materials
such alligator,
crocodile and
even ostrich.
Long war-
ranty time
Varied raw mate-
rials, for example,
bamboo, flora, and
gold.
The products have
known as a good
quality
6. Low-proﬁle
promotion
measurement
Hermès
heritage is a
long history
of more than
170 years.
Various pro-
motion event
Customizable,
made to order
handbags
Compete know as
for businessmen.
Key Brands Characteristics

32
TheoverallTargetMarket Demographic
Louis Vuitton segments the market demographically
based on age, gender, household income and generation. To be
more specifically, The target market is the segment with yearly
income over 75,000 dollars, yet those women who have lower
incomes than this can still buy lower priced LV items such as
Neverfull (Purse forum, 2007).
The intended customer is the woman aged from 24-45
who loves fashion and lives in an urban city. Reaching mil-
lennial women and beyond has been the apparent motive in
advertising during all twelve of Marc Jacobs’ time as creative
director, from 2000 to 2012 (see Appendix 1).
The generation covers from Generation X to Millennial.
People who were born in the baby boom and generation X can
have their brand loyalty because they can feel that Louis Vuit-
ton is part of their life. Jacobs method of keeping millenials
in the target has won over various celebrities who are popular
with this age bracket. Stars such as Lady Gaga, Michael Phelps,
Kim Kardashian, Sarah Jessica Parker, Geri Halliwell, Chris-
tina Ricci, Britney Spears, and Anne Hathaway have all made
their love of the brand known and have been spotted by the
paparazzi with LV products (Anderson, 2012).

33
TheoverallTargetMarket
Psychographic
Louis Vuitton uses psychographic segmentations such
as social class, lifestyle to further identify their target mar-
ket. Louis Vuitton targets upper social class, jet setters, trend
setters and those who pursue prestige, ambition and sense of
identity.
The reason why it focuses on the upper social class can
be tracked back in 1867. During that time, travel by boat was
popular. In addition, the upper class traveled more and more.
Louis could see the opportunity to sell high quality products
to these travellers. He used materials to cover his trunk and
protect it from water. For example, thin sheets of metal, bone
dry wood, zinc, copper, oil-coated canvas, and natural rubber
were all crafted together to keep water from penetrating. These
kinds of materials at that point in time were lightweight and
good quality, making LV trunks easier to lift and carry while
being waterproof against the sea and rain so common on boat
voyages (Golbin, P.69, 2012).
Nowadays, most Louis Vuitton products are made from
coated canvas known as Damier, using exotic leather trims
such as ostrich, python, calf, and crocodile. The stitching is
linen thread that has been made stronger using beeswax (The-
brownpaperbag.net, 2015)

34
Geographic
Louis Vuitton owns 8 stores in Canada located in Edmon-
ton, Vancouver, Montreal, Toronto, and Calgary. Amongst
those 8 stores, only the one located in 150 Bloor Street West,
Toronto is company owned shop, the rest of them are open in
shopping mall or hotel. ("Stores,”)
Behavioural
Louis Vuitton segments consumers by occasions, usage,
user rates and loyalty status and attitude toward product. Lou-
is Vuitton targets heavy users and those who sent seasonal
catalogues. That encourage repeat sales and launch exclusive
product collections. Buyer information is collected at the point
of sale and stored in a database.
Two Segmentation
Luxury products have the price gap between diﬀerent
countries. The vendors who have excellent buy experience
would purchase the products.
The recent material EUR devaluation has caused soft luxu-
ry goods prices to be 60% higher in ML China vs. the Eurozone.
In the past, the “normal” price gap has been c.50%, falling to
c.40% during Q3 14. Coincidentally, the price gap between the
USA and Europe is also at an all-time high. ("Luxury goods:
Fx," 2015)

35
The second segmentation is the accessible customers who
wants to purchase the luxury product in order to experience
being an elite group. Even though they are not rich enough
and price conscious, they will pay the bill by credit card.
That is the group that BMO world elite MasterCard targeted.
("World elite MasterCard®, n.d.)

36
Brand Recommendation
1. Build up Company image and focus on Corporation Social Responsibility
In using exotic leather trims such as ostrich, python, calf, and croco-
dile to make high-end handbags, LV thereby forces additional pressures on
the natural environment. Compared with Hermes and Gucci, who provide
the substantial environmental report every year to the public. Louis Vuit-
ton needs to pay more attention to protecting the environment as well as
other charity work in order to build its brand image.
2. Oﬀer 100% handmade products
Handmade is the feature and advantage of its luxury bags. However,
Louis Vuitton has adopted advanced technology to increase its benefits and
revenue, which has already influences sales performance in some regions.
It is time for Louis Vuitton put more value into their products and keep the
high quality of its brand.
3. Promote the quality of design
Compared with its competitors, Louis Vuitton has shown weakness
in the field of design over the years. Although their trademark logo is the
classic pattern of Louis Vuitton, other brands are insisting on launching a
variety of handbags consistent with the custom requirements of their cus-
tomers.

37
4. Take more action to avoid fake products
From customer feedback and comments, we find that fake products
are a very common illegal activity, which is one major benefit of online
shopping at the company’s oﬃcial website. This can oﬀer more benefits to
buyers. Furthermore, tips on how to figure out fake Louis Vuitton bags can
be researched easily on the Internet. Louis Vuitton should attack these ille-
gal behaviors with the help of law enforcement departments. These actions
can help Louis Vuitton preserve its reputation and credibility.
5. Promote the value of the brand through advertising
Louis Vuitton keeps a low profile when it does promotional activities.
In the meantime, Louis Vuitton needs to tell more about the value of its
brand to potential customers.
6. Partner with other companies for mutual benefit
To get more opportunities for its brand, LV should seek out corporate
partnerships with other high market brands such as Apple, with the aim
of designing specialized accessories and value add propositions to both of
their customers. These limited editions can raise the brand to new heights.

38
7. Refresh their creative director more often
People know that March Jacob was a symbol for LV for a long time, so
this might limit LV to catch on with a new line of customers. Working with
more designers more often will keep the brand relevant, and provide a new
name to the fashion world so that they might get a better opportunity for
themselves.

39
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