Strengths :
Louis Vuitton’s quality reputation: they qualify themselves as a traditional brand and as the largest producer of Luxury Goods . they tend more recently to become creative . Consumers across the world : European countries (21% , United States but also a new emerging market in Asia (27% in 2011) *
Bernard Arnault named Marc Jacobs in 1997 as an artistic Director of Louis Vuitton Marketing with different star icons : Gisele Bundchen ,Gorbatchev , Caterine Deneuve, Bono , Keith Richards , Madonna => helps to identify to the product . Project an image of the product. They sell their product only in their own stores , in Paris , London , New York , Asia ( new Chinese store opened in Shangaï ) called « maisons ».This permits to stay leader in the sell of their product ,and avoid any discount sales , or promotion of their product. Tight Control on the quality, and the sell of their product . Personalize your own wallet, bags and other leather goods : « Mon Monogram » . It adapts its design to consumers’ tastes.
Louis Vuitton continue to explore new markets , THIS will enable Vuitton to continue producing double-digit growth for years to come: They opened their first shop in Latin America : Sao Paulo , another store in China in Shangaï( 39 boutiques in China others in Beijing, Changchun…).=> aims at projecting exclusivity for top-ends costumers . Being too accessible can lead to “banalization,” The Paris company, which doesn’t anticipate a slowdown in second-half
Klein talks about how these companies brand their products to the point it's not actually about the product. It's about what status the brand gives to the person who's buying the product, and it has nothing to do with how good the product is. Klein could show how much these companies brand their products with numbers she has found. She uses logos to shock us with statistics, and make the reader think if they have fallen prey to the advertisement these companies are using. In her article it said, “In 1991 alone, Reebok upped its ad spending by 71.9 percent.
Lululemon fully depended and worked on retail model, as well as management team relied on customer feedback to make changes.
Employees would also give instructions how they were supposed to rearrange the product each week. Moreover, employees were instructed to wear athletic outfits.
II. A. Company Info
Since the beginning in 1993, Kate Spade has been known for their use of colors and patterns, but it all started with a purse. Kate Brosnahan Spade designed a line of 6 purses completely different from the trends she saw on the runway. This was just the beginning for Kate Spade as they now sell everything from jewelry, to clothing, to home decor. In 2007 Spade sold the company to Liz Clairborne with Deborah Lloyd as the President.
Their unique shopping experience stems from their smaller store locations with the chevron pattern. They don’t have a large array of products, but they provide high quality goods under their brand name that continues to attract customers.
Premier Inn is a famous British hotel brand with over 700 facilities worldwide. Being founded by Whitbread in the year 1987, the company is the result of a merge between Premier Lodge and Travel Inn. Premier Inn hotels operate under the strategic partnership between the leading international companies and Britain’s leading hospitality firm Whitbread PLC. This allows enhancing the popularity of the Premier Inn brand all over the world.
Burberry is a global luxury brand that has a unique democratic positioning within the luxury arena. This internationally recognized brand positioned itself with its luxury and functionality in the minds of consumers. Its positioning method has been consistent throughout the life of the Burberry brand and is a primary driver in propelling Burberry into its current market position (“Burberrys Market Position And Its Competitors Marketing Essay,” 2015). Burberry provides a great depth and wide range of product line. Burberry has widened its scope with variety of products.
This seems quite odd as the concept of luxury is tied to rarity and exclusivity. This has put a question mark on the sustainability in the growth of Louis Vuitton, for how long it will be maintained. But it is to be noted that the growth in revenue due to more
The brand have been known to be notorious on pricing their bags and other collections at the most measly tags possible. The established name within the fashion industry have given Louis Vuitton the right to accordingly rate their stuff with prices that are sometimes ridiculous, but we all know that they are not even closing to joking. Just recently, the brand have made public their most expensive handbag to date, the all-new Louis Vuitton City Steamer Bag. Despite the fact that the bag 's design line is already existing, this doesn 't stop the company on finding ways to upgrade it with the use of only the finest materials, some tweaks here and there, et voila, a new fad that women can lust forever.
Victoria Secret was profitable enough in their first year, for the company to open four more
physical locations, as well as a mail order catalogue. Although Roy Raymond’s policy was
initially profitable, but as we will discuss in the later parts of this paper, it also had its
downsides that almost led to the bankruptcy of Victoria Secret. Today, Victoria Secret is a
multi billion dollar conglomerate with more than a thousand stores in more than 180
countries generating an annual income of over five billion.
2. PESTEL ANALYSIS
The external environment of a company can affect everything from company policies,
finances, sales, targeted customers and can be a deciding factor in whether the company
remains for another season.
Customers do not want to switch to purchase different brands, as such they hold some bargaining power to drive the demand.
In the luxury industry, it is possible that existing companies or new designers could enter internationally. However, the brand positioning serve as a serious barrier to create awareness due to customer loyalty and acceptability of the brand. In this case, threat of new entrants is relatively low.
All the concepts will go through a screening process from which, it will be chosen the idea that best represents the brand’s identity through the use of the latest and most fashionable styles. After that, each brands design team, in collaboration with other departments, start developing a prototype, that if needed will be exposed to some improvement on details. The final designs will then be produced by Prada’s in-house facilities: ten in Italy and one in the United Kingdom . The production of the final products is subdivided into three sectors, which are: bags and accessorizes, footwear and ready-to-wear . In order to achieve the highest quality possible on its products, the PRADA Group controls directly each phase of the production process.
1.1. Positioning the company – Competition
Porsche Automobile Holding SE, usually shortened just to Porsche, is a German holding company with investments in the automotive industry and has about 18,000 employees all over the world (Porsche, 2014). The main competition for Porsche’s high-end cars like the 918 Spyder or the 911 Turbo or Turbo S is arguably from Italian specialty automaker Ferrari. In similar demographics the brands appeal through traditionally vehicles to quite different personalities.
The company’s logo and monogram being seen on their products is something which is easily recognized by every customer. It is not only well known but has a rich history. Louis Vuitton is known globally and has a strong image in Singapore, China, Hong Kong and Japan which are leading financial hubs and individuals with high net worth.
Largest luxury brand with exclusivity
Traditional craftsmanship is not compromised by Louis Vuitton as these products are made to fine details and of exquisite material, discount and promotion does not happen and defective products are disposed immediately as written in their policy. Louis Vuitton products are highly priced due to superior quality, degree of scarcity and exclusivity.
The company Fast Retailing Co., Ltd was found and established on 1 May 1963 in Japan by Tadashi Yanai. Presently, they have launched several apparel and lifestyle brand of UNIQLO, GU, Theory, Comptoir des Cotonniers, Princesse tam.tam and J Brand.
UNIQLO was first, to be introduced by Fast Retailing in 1984. It was a brand created to provide comfortable causal clothing to everyone, women, men, kids and babies. A lifestyle wear that was made for all, for everyday activities.
Introduction
Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix.
Question 1:
