This presentation gives you a lot of information about segmentation targeting and positioning. It shows how a brand should be positioned on a perceptual map. Major information about Louis Vuitton.

1. Unit: 04 Marketing
Principles
By Shraddha Sharma

2. Contents
 Macro environment
 Micro environment
 Segmentation and it’s bases
 Positioning
 Target strategy for a product
 Customer behavior
 Perceptual map

3. Political
•Tax policy
•Employment
laws
•Environmental
regulations
•Trade
restrictions and
tariff
•Political
stability
Economic
•Economic
growth
•Interest
rates
•Exchange
rates
•Inflation
rates
Social
•Health
consciousness
•population
growth
•Age
distribution
•Career
attitudes
•Emphasis on
safety
Technological
•R&D activity
•Automation
•Technology
incentives
•Rare of
technological
change
Demography
• study of human population
•Includes various criteria's like sex, income, age, education etc.
•Manufacturing depends upon the size of the population
A macro environment is a wide, broad set of economic
conditions rather than the conditions in a specific sector or
industry within an economy.
2.1

4. Impact of macro environment on LV
 Impact of macro environment on LV
Economical
In 2010, Louis Vuitton raised classic accessory
prices in the Eurozone approximately 9% due to
rising leather and cotton prices, IBT
Technological
Counterfeiting is taking a toll around the globe
and it can be highly related with the growing
technology.
It has both good and bad impact on the brand.
Social
LV has a very powerful presence on social
media, it is also ranked as no.1 among other
luxury brands. It has 2 twitter pages, facebook
page, fb app, branded you tube channel and
also an LV Flickr photo stream.
Political
The brand is growing in the Asian market as the
number of high-end customer also rises.
In other countries it still faces some challenges
like supply chain and transportation due to rise in
fuel prices.
Demographic
The impact of this factor varies from country to
country. In China, the market of LV is dipping as
the people feel that the brand has become too
ordinary. Whereas, in Japan it is a must to have an
LV bag for everyone.
2.1

5. Micro Environment
competitorspublic
suppliers
customers Marketing intermediaries
Workers and their unions
The immediate small-scale environment of an organisation or a part of an
organisation, especially as a distinct part of a larger environment is known as
micro environment.
2.1

6. Porter’s Five Forces Analysis
2.1
Industry
competitors
Buyer
Buyers - As they target
the rich and high middle
class people, there
customers are relatively
low.
Substitutes –
threat of
substitutes are
present around
them as high label
brand such as
Prada, Hermes,
Armaani etc also
have the same
line of products
Suppliers –they
have low
numbers of them
as they do not
purchase raw
material from
just any random
shop.
Entrants – low
number of new
entrants will
come in because
of the quality
and the old
brand name of
the company.
 -

7. Bases for segmenting
 -
2.2
Demographic
-income, occupation, gender
etc.
- Most popular bases for
segmenting
Geographic
-different units
-regions, states etc
- Need and wants varies
from region to region
Behavior
- Loyalty towards a brand of
a customer
Psychographic
- Lifestyle
- individual’s attitude and
interest
Bases for
segmenting

8. Positioning
 It is a marketing strategy that helps a brand to occupy a distinct
position, relative to competing brands, in the mind of the
customer
This is a
perceptual
map which
shows the
actual
position of
brand as
compared to
it’s rivalries.
2.2

9. Targeting strategy
 LV has introduced this fun and colorful
collection of bags in September.
 It is being loved not only by their customers
but also by the ones who are not very fond of
this brand (as per the reviews online).
 It is mainly attracting more of the younger
crowd as it more about colors in this
collection and it has a variety of purses, say
zippy coin wallet, mini pochette which
generally attracts more of girls who are in
their teenage.
2.3

10. Selecting a targeting strategy for
the product
 Demographic
- The LVs evasion collection directly targets the youth
segment more than any other age group.
- It is also for those who wants to own a luxury brand
but because of very high prices they do not buy
them.
- This collection are little low at rate as compared to its
other lines.
 Psychographic
- Evasion shows a drastic innovation in the brand’s
design. It has gone a step forward to keep up with
the trend.
- It instantly appeals to the customers because of their
design and frolic colors.
2.3

11. Buyer’s Behavior
2.4
Environmental
factors affecting
buyer’s behavior
Cultural
Cultural trends
social
Social
Family
Social roles
and status
Psychological
Motivation
Perception
Learning
Beliefs and
attitude
Personal
Age
Lifestyle
Purchasing power
Personality

12. Consumer and organisational
buying
 -
problem
recognition or
need awareness
information
search
possible
alternatives
purchase
decision
post-purchase
evaluation
2.4

13. Perceptual maps of luxury brands summer
spring handbags collection 2015
 -
Price
Quality
2.5
Cherche midi bag
evasion
Inside bag
Wallet on chain
Micro belt bag

14. Social presence
 The brand LV already has the strongest social
presence among it’s rivalries.
 Whereas, it should go more aggressive by asking
famous celebs to give them more shout outs on the
social media.
 It should also consider the complaints or the negative
feedback they get for their not-so-good service to
customers and should take a step to improve it.
 The brand should start a system where they
handover a membership card to their loyal customers
and provide them with offers, discounts and other
services so they are retained.
2.5

15. References
 Assael, H., Reed, P. and Patton, M. (1995) Marketing:
Principles and Strategy Harcourt-Brace, Sydney.
 Philip kotler (2008) Marketing Management,
 mahoney dusil, M.E.G.S. (2015, SEPTEMBER 23,
2015). LOUIS VUITTON HANDBAGS AND
PURSES. [Weblog]. Retrieved 09/10/2015, from
http://www.purseblog.com/louis-vuitton/louis-
vuitton-evasion-collection-christmas-animation-2015/
 fashion (2014) Does Louis Vuitton’s Strategy Shift
Make You More or Less Likely to Buy LV
Bags?, Available at: http://
www.handbagnewshow.com/post-996.html
(Accessed: 8th October 2015).