Claudio Diniz
History Founded in 1854, by Louis Vuitton: Malletier a Paris 1858 - Grey trianon canvas 1888 - Damier Pattern 1896  Georges Vuitton designed the famous ‘Monogram Canvas’   Expansion to countries worldover 1930s onwards creation of signature bags – Keepall, Noe, Speedy, Papillon 1959 Monogram Canvas made suppler to be used for purses, bags, and wallets
1983 Louis Vuitton Cup 1987 Formation of LVMH 1990s onwards they launched many new lines and collections By 1989 there were 130 stores worldwide 1998 Marc Jacobs appointed as Art Director, Pret-a-Porter 2000s Collaboration with Stephen Sprouse and Takashi Murakami  Revamped a few old lines History
Portrait of Louis Vuitton (1821-1892) founder of the company Four historical canvas - bottom/right: grey Trianon canvas, bottom/left: Striped canvas, top/right: Damier canvas, top/left: Monogram canvas The Monogram canvas « Wardrobe » (1875) The «Steamer bag »: ancestor of soft bags The fabrication of Louis Vuitton shoes, for which no less than 150 operations are necessary Overview « Vuitton Building » : the façade of the Louis Vuitton store, at 70, Av. des Champs-Elysées (1914) Lock with multiple tumblers, launched in 1890
Launch of Louis Vuitton as a fashion label (1998) The Milano toiletry case, presented by Louis Vuitton at the International Exposition in 1925 Portrait of Patrick-Louis Vuitton, 5th generation of the Vuitton family Yves Carcelle, CEO Louis Vuitton Louis Vuitton workshop in Asnières, France   Louis Vuitton’s 150th anniversary party (April 2004, Hongkong) Overview
Monogram Vernis – Pegase 50 Damier Geant Aventurier Stephen Sprouse – Keepall 50 Monogram Multicolore - Keepall Epi Leather – Sirius 45 Luggage Carried Monogram Canvas -  Case
Monogram Mirior - Small Ring Agenda Cover Monogram Canvas - Mini Agenda Zippy Cover Epi Leather - Small Ring Agenda Cover Monogram Vernis - Agenda Cover PM Desk Agenda Cover – Nomade Leather Agendas Damier Azur Canvas - Pocket Agenda Cover
Watches Montres Tambour 2002 Montre Tourbillon Tambour Monogram  Montres Tambour Diving Montres Speedy Montres Tambour Quartz Small Lovely Montres Tambour Fleurs Précieuses
Monogram Multicolore – Speedy 30 Monogram Mini Lin – Diaper Bag City   Bags   and   Briefcases Damier Graphite – President Briefcase Mahina XL Stephen Sprouse – Neverfull GM Monogram Vernis – Roxbury Drive
Suhali Leather - Lockit Clutch Clutches   and   Pouches Monogram Damier Canvas –  Pochette Compact Monogram Limelight  –  Clutch PM Stephen Sprouse –  Pochette Accessories Afterdark Monogram –  Motard Epi Leather  –  Sellier Dragonne Clutch
Wallets   and   Leather   Goods Mahina - Amelia Wallet Monogram Canvis –  Astrid Wallet Suhali Leather –  Serenata Case Monogram Multicolore –  Flat Coin Purse Epi Leather - Key Holder Monogram Denim – Zippy Wallet
Shoes Harold Loafer in Calf Leather Sofia Sandal in Suede Goat Leather Rose Pump in Glazed Calf Leather Lagoon Thong in Canvas Monogram Damier Canvas - Elan Sneaker Coconut Mule in Monogram Canvas & Leather Patchwork
Fine   Jewellery Fleur Medalllian Necklace, Yellow Gold Small Monogram Gallea Band Ring, White Gold Clous Bracelet, Yellow Gold Large LV Pendant  White Gold & Diamonds Les Luxuriantes Earrings with Pink Sapphires Les Craquantes Small Pendant & Chain
Sun   Glasses Metal - Attraction Monogram Photocromique – Conspiration Pilote Metal and Acetate – Alias Round Desmayo Strass Cat Eye Obsession Carre LV Landscape Acetate - Mahina
Pens Charm Pen Agenda Ballpoint GM Roller Pen LV cup Leather-Covered Doc Ballpoint Pen Rhodium Finish
Books Birth of Modern Luxury City Guide 2009, Mumbai Travel Note Book London History of the LV Cup City Guide 2009 – European Cities Travel Note Book Mumbai
Ties   and   Scarves Olivia Scarf Monogram Shawl Mix Monogram Tie New Denim Square Scarf LV Tie Signature Silk Celestie Tie
Belts Monogram Damier Canvas Belt LV Initials Monogram Belt LV Inventeur Reversible Damier Ebene Belt Boitier Calf Leather Belt LV Intitials Monogram Multicolore Belt 1904 Natural Calf Leather Belt
Accessories Graffiti Brooch Sweet Monogram Headband Candy Bag Charm Monogram Canvas - Baxter Dog Collar GM Cigar Humidor 75 Mahogany and pear  wood Monogram 1001 Nuits Hair Clip
Ready   to   Wear Spring Summer 2009 Spring Summer 2009 Cruise Collection 2009
Ready   to   Wear Spring Summer 2009 Pre Spring Summer 2009 Cruise Collection 2009
Brand   Identity Physical Personality Self-projection Reflection Culture Relationship Luxury leather goods  Monogram Damier Locks, trunks Quality Tradition Heritage Success, Show off  Effortless luxury Art of travel Craftsmanship Sporting tradition Working class origin Elite customers “ La belle époque” French Japanese Elegance Comfort Understated Status Social belonging
Core   Values Traditional and Classic Luxurious and Elegant Iconic Creates Desire Evokes a sense of Style Subtle Changes Sophisticated and Elite
Brand extension-  Why   Perfume? Available by all our competitors, missing from the LV catalogue To cater to the already existing loyal LV customer Fulfill desires of people of owning a LV product Increase the Market Share Increase Revenues
Competitors   Analysis Perfumes when sold through selective distribution channels are clearly luxury products, even if they correspond to low-priced items Brands like Chanel, Lancôme, Estée Lauder, Dior and Lanvin launched perfumes as early as the 19th century  Other luxury brands like Chanel, Dior and Armani have an aided awareness of around 80% to 90% through their perfumes
Competitors   Analysis Gucci by Gucci, 50ml -  £ 48.00 Elizabeth Arden, Badgley Mischka Couture, 100ml - £ 61.00 Marc Jacobs, Daisy, 50ml - £ 49.00 Dolce & Gabbana, Sicily, 50ml - £ 43.00 Emilio Pucci, Sabbia 167, 50ml - £ 39.00 Bond No 9, Nuits de Noho, 50ml - £ 90.00 Dior, Midnight Poison, 50ml - £ 54.00
Competitors   Analysis Cartier, Delicies de Cartier, 50ml - £ 48.00 Giorgio Armani, Armani Code, 50ml - £ 45.00 Valentino, Rock n Rose Couture, 50ml - £ 46.00 Bvlgari, Rose Essential, 50ml -  £ 54.00 Hermes, Kelly Caleche, 50ml -  £ 52.00 Givenchy, Ange ou Demon, 50ml - £ 50.00 Ralph Lauren, Notorious, 50ml -  £ 48.00 Jean Paul Gaultier, Fragile, 50ml -  £ 59.00
Trend   Book   and   Colour Trend   Book   Creation R - 111 G - 173 B - 222 R - 205 G - 55 B - 0 R - 239 G - 120 B - 171 R - 158 G - 0 B - 0 R - 0 G - 0 B - 0 R - 0 G - 138 B - 42 R - 134 G - 25 B - 124 R - 191 G - 173 B -191
Damier Azur R - 255 G - 212 B - 0 R - 212 G - 19 B - 128 R - 232 G - 223 B - 205 R - 125 G - 116 B - 119 Monogram Multicolore Trend   Book   and   Colour Trend   Book   Creation
Creation and design of the   new introduced product
Packaging Creation
Product Identity Material 2: Material 1: Colour 2: Colour 1: Shape 2: Shape1: Luxury , elegance,  quality , clean Thick  transparent glass Classical yet  innovative  (in a perfume bottle) Canvas Traditional yet feminine and  young.  Monogram Multicolore.  Bright  colours and white. Traditional , LV original signature print. Soft, feminine, dream Damier Azur Canvas in light  blue and beige Feminine  yet strong Slightly curvy  corners and edges Elegance , sleek,  modernity Very  slim  and long Meanings Signs
Package Identity Material 2: Material 1: Colour 2: Colour 1: Shape 2: Shape1: Luxury, elegance,  expertise ,  classical, LV heritage Canvas Practical,  moder n Metal Sophisticated  yet modern and  innovative Silver   logo , product name and base Eternal, LV original, symbolic, legendary print Damier Azur Canvas. Light b lue and beige Feminine  and soft Round  corners and edges Practical , elegant, modern Long  and  slim  tin with metal base Meanings Signs
Package Identity An innovative product with classical features that reflect the brand heritage and expertise. It also brings a touch of modernity, fun and agility. It caters to the sophisticated LV female customer and to the younger fans of the LV brand.
Modern Classic Mass market Luxury Perfume Voyager New Product Positioning
0  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15 LOW INNOVATION MEDIUM INNOVATION HIGH INNOVATION Voyager Parfum   Innovation Value Scale
Core business of the brand - Luggage maker LV heritage and signature products The LV customer: jet set. Likes to travel and visit new places but one thing is constant: the LV bags, luggage and accessories Simple name and easy to remember Good sonority Invite the customer to travel and dream. Join the LV universe Semantics – Why “Voyager”
Target Segmentation Our targeted client are both sex, aged between 30-50 year’s old Income between £ 35.000-150.000 + They are graduate professionals with sense of self-worth and novelty seekers Our product can be bought for personal use or as a gift Achievers and innovators
PAST French, Immaterial   Never vulgar  Plug in  ephemeral Trends & Events Artistical statement  Cultural Mobility  Good life  “ Planter ses racines tous les jours”  Contemporaneity & Universal Myths  Desire  Stylish Positive atitude Brand Loyalty Self confidence Status Traditional Facets of Luxury
FIXED COST Production Cost 2.500 euros per colors X 2 = 5.000 euros 3.000 euros per piece 5.000 euros Per piece 3.000+5.000= 8.000 euros 3.000 euros per piece 13x3.000 = 39.000 euros(colors) 3.000 euros per piece (cutting) 39.000+3.000=42.000 60.000 euros  per piece (Glass) 30.000 euros per piece (Cap) = 90.000 euros PRICES Colors films Metallic cutting frame Metallic LV Cutting frame Voyage Colors films Metallic cutting frame Glass injection matrix  Cap injection matrix PRODUCTION TOOLS PACKAGING PACKAGING BOTTLE BOTTLE
VARIABLE COST Production Cost 3 euros 4 euros 5 euros Packaging  Price per unit 4 euros 5 euros 6 euros BOTTLE Price per unit 150.000 100.000 50.000 NUMBER OF MODELS
Production Cost 44.80 euros 53.76 euros 57.25 euros 68.70 euros 74.50 euros 89.40 euros MARGIN : 500 % SELLING PRICES 8.96 euros 11.45 euros 14.90 euros TOTAL PRODUCTION COST BOTTLE + PACKAGING 3.08 euros 4.13 euros  5.26 euros PACKAGING Production cost per unit 3 euros 4 euros 5 euros PACKAGING Variable cost per unit 13.000/150.000  = 0.08 euros 13.000/100.000  = 0.13 euros 13.000/50.000  = 0.26 euros PACKAGING Fix cost per unit 5.88 euros 7.32 euros 9.64 euros BOTTLE Production cost per unit 5 euros 6 euros  7 euros BOTTLE Variable cost per unit 132.000/150.000 = 0.88  euros 132.000/ 100.000 = 1.32 euros 132.000/50.000 = 2.64 euros BOTTLE Fix cost per unit 150.000 100.000 50.000 Number of models
Cost of 50ml perfume bottle is  £  55.00 Pricing
Exclusive only to LV boutiques and concessions in department stores worldwide Also available at LV web site and Duty Free Distribution Strategy
Exclusive/Selective Distribution when appropriate 110% Polo RL Richemont Burberry Tod's Group Bulgari LVMH Escada Group Coach Hermès Gucci Division Louis Vuitton R 2 = 0.8591 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % of Retail Sales EBIT Margin (%) Source : Merrill Lynch Luxury Goods Team estimates
Extrapolated Evolution
Source : Merrill Lynch Luxury Goods Team estimates (trend between in-house production and gross margin highlighted but names of companies are left blank intentionally) Manufacturing Integrity:  Product Quality
Source : Merrill Lynch Luxury Goods Team estimates Source : Merrill Lynch Luxury Goods Team estimates Presence in most    Profitable Product Categories
Characteristics Positioning Global brands with extended product propositions  Target the largest audience by creating desire with permission Accessibility A well established ‘historical brand’ opens its door to YOU for a ‘ luxuryland ’ experience In line with customers looking for personal fulfillment over material / statutory distinction Customers Everyone’s welcome (but not said openly, everyone has to feel privileged)) Price is not a discriminator in absolute terms But remains a filter in relative terms Hypermodern Luxury:  To Have and To Be
Advertisement placement in fashion, lifestyle and travel magazines, newspapers, specialized websites (ex: Style.com), TV and cinema. PR. Beauty session of speciliazied magazines. Advertisement with celebrities. Endorsement. Direct Marketing. Windows’ display. Teasers. Special visual merchandising (especially in department stores) Communication Strategy

Louis Vuitton

  • 1.
  • 2.
    History Founded in1854, by Louis Vuitton: Malletier a Paris 1858 - Grey trianon canvas 1888 - Damier Pattern 1896 Georges Vuitton designed the famous ‘Monogram Canvas’ Expansion to countries worldover 1930s onwards creation of signature bags – Keepall, Noe, Speedy, Papillon 1959 Monogram Canvas made suppler to be used for purses, bags, and wallets
  • 3.
    1983 Louis VuittonCup 1987 Formation of LVMH 1990s onwards they launched many new lines and collections By 1989 there were 130 stores worldwide 1998 Marc Jacobs appointed as Art Director, Pret-a-Porter 2000s Collaboration with Stephen Sprouse and Takashi Murakami Revamped a few old lines History
  • 4.
    Portrait of LouisVuitton (1821-1892) founder of the company Four historical canvas - bottom/right: grey Trianon canvas, bottom/left: Striped canvas, top/right: Damier canvas, top/left: Monogram canvas The Monogram canvas « Wardrobe » (1875) The «Steamer bag »: ancestor of soft bags The fabrication of Louis Vuitton shoes, for which no less than 150 operations are necessary Overview « Vuitton Building » : the façade of the Louis Vuitton store, at 70, Av. des Champs-Elysées (1914) Lock with multiple tumblers, launched in 1890
  • 5.
    Launch of LouisVuitton as a fashion label (1998) The Milano toiletry case, presented by Louis Vuitton at the International Exposition in 1925 Portrait of Patrick-Louis Vuitton, 5th generation of the Vuitton family Yves Carcelle, CEO Louis Vuitton Louis Vuitton workshop in Asnières, France Louis Vuitton’s 150th anniversary party (April 2004, Hongkong) Overview
  • 6.
    Monogram Vernis –Pegase 50 Damier Geant Aventurier Stephen Sprouse – Keepall 50 Monogram Multicolore - Keepall Epi Leather – Sirius 45 Luggage Carried Monogram Canvas - Case
  • 7.
    Monogram Mirior -Small Ring Agenda Cover Monogram Canvas - Mini Agenda Zippy Cover Epi Leather - Small Ring Agenda Cover Monogram Vernis - Agenda Cover PM Desk Agenda Cover – Nomade Leather Agendas Damier Azur Canvas - Pocket Agenda Cover
  • 8.
    Watches Montres Tambour2002 Montre Tourbillon Tambour Monogram Montres Tambour Diving Montres Speedy Montres Tambour Quartz Small Lovely Montres Tambour Fleurs Précieuses
  • 9.
    Monogram Multicolore –Speedy 30 Monogram Mini Lin – Diaper Bag City Bags and Briefcases Damier Graphite – President Briefcase Mahina XL Stephen Sprouse – Neverfull GM Monogram Vernis – Roxbury Drive
  • 10.
    Suhali Leather -Lockit Clutch Clutches and Pouches Monogram Damier Canvas – Pochette Compact Monogram Limelight – Clutch PM Stephen Sprouse – Pochette Accessories Afterdark Monogram – Motard Epi Leather – Sellier Dragonne Clutch
  • 11.
    Wallets and Leather Goods Mahina - Amelia Wallet Monogram Canvis – Astrid Wallet Suhali Leather – Serenata Case Monogram Multicolore – Flat Coin Purse Epi Leather - Key Holder Monogram Denim – Zippy Wallet
  • 12.
    Shoes Harold Loaferin Calf Leather Sofia Sandal in Suede Goat Leather Rose Pump in Glazed Calf Leather Lagoon Thong in Canvas Monogram Damier Canvas - Elan Sneaker Coconut Mule in Monogram Canvas & Leather Patchwork
  • 13.
    Fine Jewellery Fleur Medalllian Necklace, Yellow Gold Small Monogram Gallea Band Ring, White Gold Clous Bracelet, Yellow Gold Large LV Pendant White Gold & Diamonds Les Luxuriantes Earrings with Pink Sapphires Les Craquantes Small Pendant & Chain
  • 14.
    Sun Glasses Metal - Attraction Monogram Photocromique – Conspiration Pilote Metal and Acetate – Alias Round Desmayo Strass Cat Eye Obsession Carre LV Landscape Acetate - Mahina
  • 15.
    Pens Charm PenAgenda Ballpoint GM Roller Pen LV cup Leather-Covered Doc Ballpoint Pen Rhodium Finish
  • 16.
    Books Birth ofModern Luxury City Guide 2009, Mumbai Travel Note Book London History of the LV Cup City Guide 2009 – European Cities Travel Note Book Mumbai
  • 17.
    Ties and Scarves Olivia Scarf Monogram Shawl Mix Monogram Tie New Denim Square Scarf LV Tie Signature Silk Celestie Tie
  • 18.
    Belts Monogram DamierCanvas Belt LV Initials Monogram Belt LV Inventeur Reversible Damier Ebene Belt Boitier Calf Leather Belt LV Intitials Monogram Multicolore Belt 1904 Natural Calf Leather Belt
  • 19.
    Accessories Graffiti BroochSweet Monogram Headband Candy Bag Charm Monogram Canvas - Baxter Dog Collar GM Cigar Humidor 75 Mahogany and pear wood Monogram 1001 Nuits Hair Clip
  • 20.
    Ready to Wear Spring Summer 2009 Spring Summer 2009 Cruise Collection 2009
  • 21.
    Ready to Wear Spring Summer 2009 Pre Spring Summer 2009 Cruise Collection 2009
  • 22.
    Brand Identity Physical Personality Self-projection Reflection Culture Relationship Luxury leather goods Monogram Damier Locks, trunks Quality Tradition Heritage Success, Show off Effortless luxury Art of travel Craftsmanship Sporting tradition Working class origin Elite customers “ La belle époque” French Japanese Elegance Comfort Understated Status Social belonging
  • 23.
    Core Values Traditional and Classic Luxurious and Elegant Iconic Creates Desire Evokes a sense of Style Subtle Changes Sophisticated and Elite
  • 24.
    Brand extension- Why Perfume? Available by all our competitors, missing from the LV catalogue To cater to the already existing loyal LV customer Fulfill desires of people of owning a LV product Increase the Market Share Increase Revenues
  • 25.
    Competitors Analysis Perfumes when sold through selective distribution channels are clearly luxury products, even if they correspond to low-priced items Brands like Chanel, Lancôme, Estée Lauder, Dior and Lanvin launched perfumes as early as the 19th century Other luxury brands like Chanel, Dior and Armani have an aided awareness of around 80% to 90% through their perfumes
  • 26.
    Competitors Analysis Gucci by Gucci, 50ml - £ 48.00 Elizabeth Arden, Badgley Mischka Couture, 100ml - £ 61.00 Marc Jacobs, Daisy, 50ml - £ 49.00 Dolce & Gabbana, Sicily, 50ml - £ 43.00 Emilio Pucci, Sabbia 167, 50ml - £ 39.00 Bond No 9, Nuits de Noho, 50ml - £ 90.00 Dior, Midnight Poison, 50ml - £ 54.00
  • 27.
    Competitors Analysis Cartier, Delicies de Cartier, 50ml - £ 48.00 Giorgio Armani, Armani Code, 50ml - £ 45.00 Valentino, Rock n Rose Couture, 50ml - £ 46.00 Bvlgari, Rose Essential, 50ml - £ 54.00 Hermes, Kelly Caleche, 50ml - £ 52.00 Givenchy, Ange ou Demon, 50ml - £ 50.00 Ralph Lauren, Notorious, 50ml - £ 48.00 Jean Paul Gaultier, Fragile, 50ml - £ 59.00
  • 28.
    Trend Book and Colour Trend Book Creation R - 111 G - 173 B - 222 R - 205 G - 55 B - 0 R - 239 G - 120 B - 171 R - 158 G - 0 B - 0 R - 0 G - 0 B - 0 R - 0 G - 138 B - 42 R - 134 G - 25 B - 124 R - 191 G - 173 B -191
  • 29.
    Damier Azur R- 255 G - 212 B - 0 R - 212 G - 19 B - 128 R - 232 G - 223 B - 205 R - 125 G - 116 B - 119 Monogram Multicolore Trend Book and Colour Trend Book Creation
  • 30.
    Creation and designof the new introduced product
  • 31.
  • 32.
    Product Identity Material2: Material 1: Colour 2: Colour 1: Shape 2: Shape1: Luxury , elegance, quality , clean Thick transparent glass Classical yet innovative (in a perfume bottle) Canvas Traditional yet feminine and young. Monogram Multicolore. Bright colours and white. Traditional , LV original signature print. Soft, feminine, dream Damier Azur Canvas in light blue and beige Feminine yet strong Slightly curvy corners and edges Elegance , sleek, modernity Very slim and long Meanings Signs
  • 33.
    Package Identity Material2: Material 1: Colour 2: Colour 1: Shape 2: Shape1: Luxury, elegance, expertise , classical, LV heritage Canvas Practical, moder n Metal Sophisticated yet modern and innovative Silver logo , product name and base Eternal, LV original, symbolic, legendary print Damier Azur Canvas. Light b lue and beige Feminine and soft Round corners and edges Practical , elegant, modern Long and slim tin with metal base Meanings Signs
  • 34.
    Package Identity Aninnovative product with classical features that reflect the brand heritage and expertise. It also brings a touch of modernity, fun and agility. It caters to the sophisticated LV female customer and to the younger fans of the LV brand.
  • 35.
    Modern Classic Massmarket Luxury Perfume Voyager New Product Positioning
  • 36.
    0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 LOW INNOVATION MEDIUM INNOVATION HIGH INNOVATION Voyager Parfum Innovation Value Scale
  • 37.
    Core business ofthe brand - Luggage maker LV heritage and signature products The LV customer: jet set. Likes to travel and visit new places but one thing is constant: the LV bags, luggage and accessories Simple name and easy to remember Good sonority Invite the customer to travel and dream. Join the LV universe Semantics – Why “Voyager”
  • 38.
    Target Segmentation Ourtargeted client are both sex, aged between 30-50 year’s old Income between £ 35.000-150.000 + They are graduate professionals with sense of self-worth and novelty seekers Our product can be bought for personal use or as a gift Achievers and innovators
  • 39.
    PAST French, Immaterial Never vulgar Plug in ephemeral Trends & Events Artistical statement Cultural Mobility Good life “ Planter ses racines tous les jours” Contemporaneity & Universal Myths Desire Stylish Positive atitude Brand Loyalty Self confidence Status Traditional Facets of Luxury
  • 40.
    FIXED COST ProductionCost 2.500 euros per colors X 2 = 5.000 euros 3.000 euros per piece 5.000 euros Per piece 3.000+5.000= 8.000 euros 3.000 euros per piece 13x3.000 = 39.000 euros(colors) 3.000 euros per piece (cutting) 39.000+3.000=42.000 60.000 euros per piece (Glass) 30.000 euros per piece (Cap) = 90.000 euros PRICES Colors films Metallic cutting frame Metallic LV Cutting frame Voyage Colors films Metallic cutting frame Glass injection matrix Cap injection matrix PRODUCTION TOOLS PACKAGING PACKAGING BOTTLE BOTTLE
  • 41.
    VARIABLE COST ProductionCost 3 euros 4 euros 5 euros Packaging Price per unit 4 euros 5 euros 6 euros BOTTLE Price per unit 150.000 100.000 50.000 NUMBER OF MODELS
  • 42.
    Production Cost 44.80euros 53.76 euros 57.25 euros 68.70 euros 74.50 euros 89.40 euros MARGIN : 500 % SELLING PRICES 8.96 euros 11.45 euros 14.90 euros TOTAL PRODUCTION COST BOTTLE + PACKAGING 3.08 euros 4.13 euros 5.26 euros PACKAGING Production cost per unit 3 euros 4 euros 5 euros PACKAGING Variable cost per unit 13.000/150.000 = 0.08 euros 13.000/100.000 = 0.13 euros 13.000/50.000 = 0.26 euros PACKAGING Fix cost per unit 5.88 euros 7.32 euros 9.64 euros BOTTLE Production cost per unit 5 euros 6 euros 7 euros BOTTLE Variable cost per unit 132.000/150.000 = 0.88 euros 132.000/ 100.000 = 1.32 euros 132.000/50.000 = 2.64 euros BOTTLE Fix cost per unit 150.000 100.000 50.000 Number of models
  • 43.
    Cost of 50mlperfume bottle is £ 55.00 Pricing
  • 44.
    Exclusive only toLV boutiques and concessions in department stores worldwide Also available at LV web site and Duty Free Distribution Strategy
  • 45.
    Exclusive/Selective Distribution whenappropriate 110% Polo RL Richemont Burberry Tod's Group Bulgari LVMH Escada Group Coach Hermès Gucci Division Louis Vuitton R 2 = 0.8591 30% 40% 50% 60% 70% 80% 90% 100% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % of Retail Sales EBIT Margin (%) Source : Merrill Lynch Luxury Goods Team estimates
  • 46.
  • 47.
    Source : MerrillLynch Luxury Goods Team estimates (trend between in-house production and gross margin highlighted but names of companies are left blank intentionally) Manufacturing Integrity: Product Quality
  • 48.
    Source : MerrillLynch Luxury Goods Team estimates Source : Merrill Lynch Luxury Goods Team estimates Presence in most Profitable Product Categories
  • 49.
    Characteristics Positioning Globalbrands with extended product propositions Target the largest audience by creating desire with permission Accessibility A well established ‘historical brand’ opens its door to YOU for a ‘ luxuryland ’ experience In line with customers looking for personal fulfillment over material / statutory distinction Customers Everyone’s welcome (but not said openly, everyone has to feel privileged)) Price is not a discriminator in absolute terms But remains a filter in relative terms Hypermodern Luxury: To Have and To Be
  • 50.
    Advertisement placement infashion, lifestyle and travel magazines, newspapers, specialized websites (ex: Style.com), TV and cinema. PR. Beauty session of speciliazied magazines. Advertisement with celebrities. Endorsement. Direct Marketing. Windows’ display. Teasers. Special visual merchandising (especially in department stores) Communication Strategy