Development and launching of a perfume, Louis Vuitton
- Marketing strategy
- Marketing mix
The beauty market in France comprises 5.2 billion euros as turnover in 2006 of which 37.3% was achieved by beauty care products and makeup, 23.4% from hair products, 19.9% from the perfumery and 19.4% by toiletry products. The French market occupies the fourth place in the world and is the second in Europe.
The French production of perfumes and cosmetics has been directed in 2006. Indeed, the production of perfumes has increased significantly with an increase of 60%. The production of perfumes and lotions, and shaving products has seen a significant acceleration. It rose by 7% in 2006.
Body care products have also seen an upward trend due to industrial innovations. The production of makeup was down by 1%. The consumer prices of perfumes and cosmetics increased by 2% between 2005 and 2006. Segments including perfumes had a higher average price due to a decline in launches in 30 ml sizes for the benefit of 50 ml and 100 ml.
By analyzing some data, it is found that sales of perfumes evolve differently in different periods of the year. There are double sales at Christmas, Valentine's Day, and during celebrations of various days dedicated to mothers, fathers, grandmothers, etc.
The French spend an average of 205 euros in the products ofcosmetics and hygiene every year. The first items are personal care products (40% of spending), beauty care (35%) and hair products (+20%).
Household consumption in perfumes and toilet preparations is 12.4 billion euros in 2006. She left after a disappointing 2005.
Women are the primary clientele of the market. They represent 81.7% of value sales in 2004. Purchases and expenses of women in hygiene products fell in 2005. A woman bought an average of 40.1 against 41.1articles articles in 2004. They buy mostly perfume. On average 80% of women perfume themselves.
However, the men's cosmetics market is booming. It is taken by the beauty. Sales of health and beauty have tripled in 10 years. This markethas grown thanks to new sociological concepts: the metrosexual or the ubersexual. The cosmetics market for men is only 10% of the comets in France.
The distribution of perfumes and cosmetics has two main channels:the retail (GSA 54%) and selective perfume (28%). The mass market is mainly hair products and toiletries as the market focuses primarily on selective cosmetics and perfumes. 48% of selective perfumery chain are integrated. Therefore, non-integrated networks are becoming scarce. Today, only big names remaining major independent trade: Beauty Success, Beauty and Passion.
Louis Vuitton is a brand synonymous with French luxury. It is well-known for its leather goods, mainly but also for its watches, sunglasses, belts,books and pens. Today, Louis Vuitton will also sell its own perfume and so engage in the competitive sector of own brand perfumery.
At the launch of the perfume, Louis Vuitton will align itsself with its upscale competitors Lancôme, Chanel or Yves Saint Laurent. Indeed, for the image of Vuitton, it is essential that the consumer finds it by comparing the various luxury brands. This will allow them to regain their bearings.
Tags: launch of Louis Vuitton perfume, market survey, data analysis, product distribution strategy