Louis Vuitton position in the Japanese market - Case Study Example
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In light of the market trends, Louis Vuitton has strategically adapted new market approaches to the Japanese market. Following the global economic recession of 2008-2009, Japanese luxury goods consumers have become more price conscious. Vis a vis, Louis Vuitton has been forced to re-evaluate its primary marketing strategy of premium brands in the case of the Japanese economy. The company lacks a comprehensive Japanese culture-oriented marketing strategy that would differentiate between the dynamics of the western market and the Japanese market. Employment of the Louis Vuitton global strategy fails to incorporate the cultural aspects of Japanese consumers in terms of price, quality and value addition. The company’s success in the Japanese market has been driven principally by the group- culture that strongly promotes possession of luxury goods by consumers (Paul and Feroul, 2010). However, the market has been characterized by consumers increased value for their money, thereby avoiding premium-priced luxury goods. Louis Vuitton position in the Japanese market has further been weakened by new marketing strategies by rival brands who have lowered their prices to attract price-sensitive consumers. To maintain its customer base, Louis Vuitton has been forced to also reevaluate its pricing strategies. To cushion themselves from harsh trends in the luxury goods market, rival firms have diversified their services and product portfolio to include non-traditional products. Chocolatier Godiva had announced plans to open up cafes in Tokyo while Vertu a mobile phone company had plans to open up shops in Ginza. Therefore, Louis Vuitton runs the risk of solely depending on luxury goods market. The Japanese market has been identified to be cyclical, characterized by periods of extensive consumer spending, which are followed with reduce consumer expenditure.
This essay describes Louis Vuitton marketing strategy has been significantly impacted by the dilution of the limited edition sales tactic. The growth and expansion of the company’s product portfolio in Japan have resulted in mass possession of the company’s products…
Moet Hennessy Louis Vuitton is, as the company describes itself, a world leader in luxury (LVMH, 2010). The group was founded in 1987 and now possesses more than 60 famous brands in 5 different categories: wines and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, and selective retailing.
Established in 1854, the brand Louis Vuitton was opened by designer Louis Vuitton who entered the art circle by making travel accessories but soon began exploring the industry of fashion, which lead him to make his mark as a premium fashion brand. However, LV is still known for its premium handbags and luggage collection.
Advertising has become an integral part of the modern face of the business industry. It is considered almost impossible to promote a service or product without this aspect. Advertising points out the differences among products and convinces customers about their need of that specific commodity.
Louis Vuitton previously opened two stores in luxury hotels in India but this time it has planned to open its store in a luxury mall. The luxury malls in India are rising at a rapid speed. It would facilitate the company to make its expansion in the luxury brand market of India by providing with sophisticated infrastructure.
It is estimated that Japan consumes close to 30 per cent luxury goods, which is twice the percentage consumed by Europe and America. Therefore, this is another factor, which has contributed to many companies struggling to establish their market and brands in Japan.
Japan has boasted of being Louis Vuitton’s most profitable market, and after the economic downturn, Louis Vuitton had to adapt to the Japanese market to allow it to sustain its consumer market. The iconic brand is considered French, but over the past decade, Japan has demonstrated its love and passion for its products (Feroul & Paul 2010, p.
The LV brand symbol sharply defines the brand identity by mining the company history and designed to express that. Their mission statement is "Louis Vuitton must continue to be synonymous with both elegance and creativity. The products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy."
All of these factors have contributed to the success of Louis Vuitton in the Japanese market. The reason for this is that the Japanese consumers are already used to spending on luxury goods so there is no need
The author states that the success story of the brand clearly reflects that it was not a coincidence rather Louis Vuitton achieved this peak position in the business world through the use of perfect marketing strategies. LVM has always been very creative in introducing new products with the supreme quality services.
The entity has a luxury and exclusive brand that seeks to sell itself through premium quality production rather than through mass marketing. The television, however, avails the brand to mass audiences thereby placing the
2 pages (500 words)Case Study
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