Brand Management: Louis Vuitton
- Brand positioning
- Brand image
- Brand prism identity
- Social media
- Extend without spreading
Louis Vuitton was founded in the XIX century as a packing-case making firm. These packing cases were very useful because at that time people used to travel a lot for a long duration that lasted several months, and even several years. Packing cases of those times represent suitcases on castors. However, old packing cases are useless presently and are more a symbol of art than as a tool to transport affairs.
Vuitton is part of the LVMH group managed by Bernard Arnault, the captain of the industry. In 2005, LVMH was composed of at least of fifty different brands with a turnover of 14 billion of euros and a profit of 2.7 billion of euros. With 2.8 billion of turnover, Louis Vuitton is the most significant brand of the LVMH group and one of the most well-known. Louis Vuitton is ?the McDo of the luxury industry? (Dana Thomas, Luxe & Co: Comment les marques ont tué le luxe, 2008). As an uncontested leader of the luxury sector, with its skyrocketing sales, shops present everywhere worldwide and on most important tourist places, Louis Vuitton has indeed come a long way. Mostly located close to a McDo, it has a logo as recognizable as the famous M gilded of the famous American fast food chain.
?A brand cannot function without a strategy and the function of brand management is to implement brand strategy.? How we can evaluate the Louis Vuitton brand? And how could Louis Vuitton brand be developed in the next 5-10 years? We will try to study these two points by analyzing the Louis Vuitton brand through appropriate theories and models from inception to the present day.
[...] Brand image Louis Vuitton has a strong reputation and it can be explained by the association with LVMH Group that is owned by Bernard Arnault. In all these years, LV has acquired an image of starlets because of the various famous models used in their advertising campaign like Jennifer Lopez, Eva Herzigova, Madonna giving a celebrity and high-class image. One must not forget the legendary Mikhail Gorbachev in one of their last campaigns based on travel theme, and one of the foundations of the luxury brand. [...]
[...] On the one hand, an excess of a large number of ranges could create confusion in minds of consumers: Louis Vuitton should be careful about the effect that the everyday acceptance of its brand does not occur. On the other hand, by its diversified range of products such as in creating accessories as key rings, phone accessories at medium prices, Louis Vuitton is creating an affordable luxury product range that is devaluating its brand image. Social media: Louis Vuitton is already well presented online with Vuiton.com which maintains its reputation by its high quality finishes and has created a virtual experience to customers. [...]
[...] Conclusion With $ 21,860 billion in terms of brand's value in 2010 (Interbrand report), Louis Vuitton is the first luxury brand of the world and performed more than the previous year. That result can be explained by the result of its expansion and growth in Asia and its diversification which makes Louis Vuitton exempt from the economic crisis. The controlled diversification helps in extending and avoiding a dilution (E. Martinez and L Chernatony Journal of Consumer Marketing S. Balachander and S. [...]