Marketing Principles of Louis Vuitton
WASEDA
BUSINESS
& ECONOMIC
STUDIES 2008 NO.44
Marketing
Principles
of Louis
Vuitton
The Strongest Brand Strategy by Shin 'ya Nagasawa*
Abstract: By systematically breaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Headed up by the Louis Vuitton (hereinafterreferred to as "Louis Vuitton") fashion label, the colorful array of over 50 brands managed by LVMH Moet Hennessy. Louis Vuitton S.A. (hereinafter referred to as "LVMH") includes Christian Dior, Givency, Celine, Fendi, Donna Karan, Loewe, jeweler Chaumct, Fred, watchmaker Zenith, Tag Heuer, alcoholic beverage maker Moet & Chandon, and the premium champagne Don Perignon, as well as DFS and Le Bon March€-the world 's first department store. The management and history of the company 's development were elucidated in the author 's previous book (Nagasawa2002). * Shin 'ya Nagasawa is a professor of MOT (Management of Technology) at Waseda Business School, Graduate School of Commerce, Waseda University,Tokyo, Japan, and also a visiting professor of ESSEC BusinessSchool, Cergy, France (2008-2009). He holds a Doctor of Engineering from Waseda University. This paper is revised from the paper presented on the International Conference on Management Engineering 2008, Kitakyushu,March 2008.
41
The previous book also had another theme: considering the nature of luxury brands as distinct from commodity
BUSINESS
& ECONOMIC
STUDIES 2008 NO.44
Marketing
Principles
of Louis
Vuitton
The Strongest Brand Strategy by Shin 'ya Nagasawa*
Abstract: By systematically breaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Headed up by the Louis Vuitton (hereinafterreferred to as "Louis Vuitton") fashion label, the colorful array of over 50 brands managed by LVMH Moet Hennessy. Louis Vuitton S.A. (hereinafter referred to as "LVMH") includes Christian Dior, Givency, Celine, Fendi, Donna Karan, Loewe, jeweler Chaumct, Fred, watchmaker Zenith, Tag Heuer, alcoholic beverage maker Moet & Chandon, and the premium champagne Don Perignon, as well as DFS and Le Bon March€-the world 's first department store. The management and history of the company 's development were elucidated in the author 's previous book (Nagasawa2002). * Shin 'ya Nagasawa is a professor of MOT (Management of Technology) at Waseda Business School, Graduate School of Commerce, Waseda University,Tokyo, Japan, and also a visiting professor of ESSEC BusinessSchool, Cergy, France (2008-2009). He holds a Doctor of Engineering from Waseda University. This paper is revised from the paper presented on the International Conference on Management Engineering 2008, Kitakyushu,March 2008.
41
The previous book also had another theme: considering the nature of luxury brands as distinct from commodity
References: 4. Kyoto Shimbun, "Reading" column, October 28, 2007