Presentation on Louis Vuitton in India Case Study and beyond case

1. Louis Vuitton In India
PRESENTED BY: GROUP 1
JUBANLAK J KHARJANA – PGP30200
PIERRE MARIE DUMAINE-IEP16002
PREET KOMAL SINGH – PGP30332
THÉO CAPOUL-IEP160001
SUMAN SANYA – PGP30346
SUMIT PRAKASH – PGP30120
SWAPNIL PATIL – PGP30158

2. Company Background
Created in 1854, Louis Vuitton sell flat topped trunk with canvas cover
In 1987, merger with Moët Hennessy and the group LVMH is born
Diverse range of leather accessoires and goods
A mass of brands : Fendi, Marc Jacobs, Kenzo, Givenchy, Celine…
Distribution and sales is very much controlled
14 production workshops and 382 stores (3 in India)

3. India Entry: Market Size
Product
Segment
• Luxury products segment of market (watches, jewellery, high end electronics, wines, spirits, perfumes, apparel, personal
accessories) estimated to be $444 million & growing at 20% annually
Market
Size
• Overall size of Luxury market (including car, homes, yachts, vacations, etc.) was about $4billion & expected to grow to $30
billion by 2015
Potential
Custome
r
• 20000 families with annual income more than INR 100 million in 2001-02
• 83000 HNW individuals (liquid assets of $1 million or more) in 2005, and recorded world’s second fastest growth in the
number of HNWs (19.3% in 2005)
New
customer
Group
• Cocooners- potential new customers undergoing change in their spending habits, estimated to go up to 583 million by 2025

4. Luxury Consumers Segment
1. For superior functionality
& quality
• wealthier, older, extensive pre
purchase search, logical buying
decision, willing to pay premium
for high value
2. As a reward
• status symbols, personal
statement that they have
“arrived”, highly driven by desire
to succeed, but keen on not
appearing lavish
3. As means of self-
Indulgence
• feel good actor, emotional buying
decision, not concerned with
product longevity or value,
younger consumers, and males
are more than females
American Express study- the mindset of the Indian consumer was a desire to prove that “I have
made it”- placed in 2nd category

5. Problem Statement
1. Retail Outlets
Physical presence of Louis Vuitton in India. What are the alternative they have?
2. Marketing Strategies
What should be marketing strategies to identify and develop (influence) more customer in Super rich
category ?
3. Newer Customer Profile
Should they enter into any new customer profile segment?

6. 1. Physical Presence Of Louis Vuitton In India-All Alternative
ALTERNATIVE 1: EXPAND THROUGH LUXURY MALLS
Pros Cons
larger store size very few luxury Malls in India
less expensive to operate potential windows shopper
Tapping into larger customer
base
possibility of non-luxury stores
next to LV
adequate customer traffic potential lost of Exclusiveness
ALTERNATIVE 2: EXPANSION THROUGH LUXURY RETAIL
CLUSTER
Pros Cons
Maintain LV’s Exclusiveness veryfewLRCinIndia
Morevisibilitytotarget customer limited customers
ownership of the Store moreexpensivetooperate
ControloverLV’sstoredesign Require more Investment
Inference: Expanding through Luxury malls include the
possibility of having a larger customer base that fit the
profile of LV’s target market.
Inference: It will help in positioning the brand in the
customer’ mind. It allows LV to have a better display of its
products and a greater visibility to its customers.

7. Physical Presence Of Louis Vuitton In India-All Alternative
ALTERNATIVE 3: EXPANDING THROUGH MORE HOTELS
Pros Cons
Experience in doing so losing other expansion
possibilities
Less Costly less visibility
targeting both locals and
foreign
less control
Awareness of LV’s Status limited customers
ALTERNATIVE 4: OPEN LV’S INDEPENDENT STORES
Pros Cons
More Flexibility to company Costly
flexibility in designing LV’s
stores
Troublesome
More visibility and a more
precise targeting of
customers
very loose regulatory
framework on property
ownership
Legal Disputes
Inference: LV’s original choice of expanding through hotels in
India is understandable, as it allowed the company not to
expose itself to India’s uncertain environment and maintain the
LV’s standing as an exclusive luxury brand.
Inference: In doing so, the company will not be relying on
existing infrastructure and will be fully in control of its
destiny in the Indian market

8. Physical Presence Of Louis Vuitton In India-Recommendation
ALTERNATIVE 5: A COMBINATION OF THE ABOVE STRATEGIES (BEST ALTERNATIVE):
Pros Cons
Flexible Not consistent
Meeting India’s realities
Reaching a large audience
Adjustable and less risky
Inference: In the absence of both LRC, luxury malls and without the possibility to locate in a luxury hotel, LV
may choose to create its independent store as its last alternative, should that market really be worth the effort

9. 2. Marketing strategies: objectives
Awareness: The goal is to make the ‘new elite’ aware of the brand.
Exclusivity: To show that Louis Vuitton is a premium brand that distinguishes the
target(super rich and the near rich) from other lower tiers of the population.
Deliver the message: ‘I have succeeded’, ‘I made it’ – this theme will give the sense
of achievement for those who aspire to own one Louis Vuitton

10. Prestige Event : Fashion Week
Brand awareness: To increase the brand awareness, create some Fashion show like
a Fashion week in Metro City.
Goal: To make people aware of the brand with a typical ‘French theme’.
Dinner: Organizing a special dinner only for exclusive audience. Super rich & near
rich audience will be invited and asking them to pay for ‘exclusive dinner by Louis
vuitton only for select few‘. This will increase the credibility of the event and will
separate niche audience from others

11. Bollywood Movies:
Product placement: Due to the influence of Bollywood Movies in Indian society, it
will increase the brand awareness to the whole society.
Pro: People will aspire to buy it like they dream about when they see something
big in movies
Con: Could portray Louis Vuitton as a common brand

12. Successful Indian Women as ambassador:
Influence: Take an influencial woman who have been successful, who is also a role
model. A strong, successul woman will show that ‘When you have a Louis Vuitton,
you succeed in overcoming the problems and make it even if you are a woman’
Example: This ambassador can typically be someone like Indra Nooyi (CEO of
pepsico)

13. LV Exclusive Card:
• Cards to those people who are already familiar with the brand.
• Different cards relate to your level of purchase (Silver, Gold, Platinum)
• This card will have some advantages and extra services
• Increase the brand loyalty and the feeling of the exclusivity

14. 3. Newer Customer Profile
“Cocooners” segment:
Limited to the middle class
Numbering 97 million, would rise up to 583 million by 2025
Income levels and spending habits were high
Potential to develop a taste for luxury and become loyal consumers
Fact: Country’s per capita income is below the unit price of a LV product

15. Cocooners - Details

16. How To Target This New Segment
New product line at lesser price
Bringing in more variety
Make brand more attractive to younger generations as 51% of population is below 25
years old
Shift from super expensive luxury to affordable high class desire

17. Thank You !