Brand Analysis – Louis Vuitton
Brand Analysis – Louis Vuitton
Consumers are stylish, fashionable, aware of designer’s brands and look for quality and after sales services. Most of the users are mature (25+), female, working population with stable financial background. There is an increasing number of young LV users, who are fashionable trend-followers. LV users are usually less price-concerned. LV products are frequently used by the rich and famous, celebrities, models all over the world.
LV produces series of leather goods for the business world, including briefcases, organizers, palm-cases… all could be easily found in business meetings and offices. LV luggage could be found in Airport all over the world. Personal accessories like handbags, wallets, shoes, and clothing by LV are used by the celebrities in fashion shows, PR events, social gatherings….
Distinctive from Competitors
In the challenging luxury market, LV faces quite a number of competitors. Hermes, Chanel, Gucci, Ferragamo and Prada are main competitors of LV. Just like LV, all of these international brands have their outlets around the world.
We are living in an age of access to an incredible amount of product, consumers are no longer brand loyal to companies, and they want to know how the product will benefit them. To satisfy the potential customers, LV is promoting its image that provides consumers with added benefits on top of the practical use of its products. A person purchase a piece of the Louis Vuitton luggage, he is not only purchasing a piece of luggage, but prestige and style. Consumers buy LV luggage not just because they need luggage, but they want people to think that they are wealthy and stylish because this is the perception that Louis Vuitton sells with its luggage. It works because LV advertises its luggage as an exclusive line, not everyone can have it.
To stand out from its competitors, LV positions itself as the leader for luxurious luggage. This could be seen in the advertising in magazines LV uses to communicate with their customers.
And in the LV web page, a “Guide for the cosmopolitan traveler” is included, offering useful information to help prepare for international trips. Travelers can check out time differences, currency conversion tables, clothes sizes and measurement conversion charts, as well as useful addresses in the world’s major cities.
LV’s strength is the worldwide known good service to customer, its good quality for value and new designs. LV’s products safety exceed the requirements globally.
A lot of the LV products are illegally replicated, but due to the unique canvas used for production; none of the fakes could achieve the quality and standard of the originals.
After using LV products, consumers are reassured of the good quality and value-for-money as promised by the advertising and promotions.
Experience & Differentiation
Consumers use and experience LV products, feel the difference between LV and other brands, lead to the differentiation of LV from the competitors.
To the Louis Vuitton consumers, a LV handbag isn’t just a handbag, it’s a Louis Vuitton. Consumers will generally pay more for the LV name brand because it signifies some extra quality besides a handbag.
LV products are appealed to people who would like themselves to be stylish, and want others to think that they are fashionable, they want to differentiate their tastes from others and try to do so by purchasing LV products. Consumers were not looking so much to buy the non-brand products as everyone else. Instead, they looked to brands to help make a clear statement about their own identities.
Consumers buy LV products are not just looking for quality and after sales services, they want people to think that they are wealthy because they can afford a pair of luxurious Louis Vuitton shoes.
More Distinctive from the Competition
Louis Vuitton was very successful with consumers. It benefited from strong local in Japan, Europe and the US. This continued demand is due to the new products created by designer Marc Jacobs and the sustained quality of all Louis Vuitton products.
To be more distinctive from the competition, Louis Vuitton may consider concentrating its business model to production of leather goods only. As most of the competitors are doing many business other than only leather goods. If LV could concentrate on leather goods production alone, it could become not just the leader, but the specialist of producing different leather goods.
More Appealing to Consumers
Branding and Lifestyle advertising is becoming increasingly popular because advertisers are trying to revive the idea of brand loyalty.
To make LV more appealing to the consumers, here is also the idea: to make some products of the brand available only in small quantities, by limiting its production of certain products from time to time, or producing special edition of the same handbag in different markets, LV products could become even more premium. This can satisfy the consumers who want to differentiate themselves from other LV users. LV could even create a trend for collection of limited edition LV products by the consumers.