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Features of the global
marketing of luxury goods
(Louis Vuitton)
scientific adviser
Butkovskaya G.V.
student
Vardanyan D.A.
Aim
determine the features of the global marketing of luxury goods and
develop recommendations for the companies to implement global
marketing strategies
Tasks
• study the international marketing strategies
• identify the features of the global marketing of luxury products
• examine the activity of LVMH
• analyze the market for luxury goods and the competitive
environment
• develop recommendations for Louis Vuitton in global marketing
• develop practical recommendations in the global marketing field
for companies operating in the sphere of luxury goods​​
Сontents
1. Theory
1.1 International marketing strategies
1.2 Features of the global luxury marketing
1. Analysis
2.1 LVMH
2.2 Luxury market and competitive environment
1. Project
3.1 Recommendations in global marketing for Louis Vuitton
3.2 Recommendations in global marketing for luxury products
Marketing Strategies
Multinational and global strategies
multinational strategy global strategy
the principle of selection of
the market and market
share
assessing the potential of
each of the markets in
terms of profitability for
the company
focus on increasing the
market area on a limited
number of key segments
market supply offers at each local foreign
market products and
services tailored to local
needs
offers a standardized core
product on the world
market
location of production production takes place in
each country
Production is divided into
stages, which are
implemented in different
countries
competitive action company competes within
the boundaries of the
foreign country, despite
the competitive wars
abroad.
competitive decisions are
made based on the nature
of competition in the
global scale
Types of luxury consumers
LVMH capital structure (2011)
source:www.lvmh.com
LVMH (2011)
employees assets, €m sales, €m
total foreign total foreign total foreign
83 000 58 100 47 100 29 673 23 659 20 110
transnationality index = 70%
markets:
• France
• Europe
• Japan
• USA
• Asia
• Other markets
source:www.lvmh.com
Change in revenue,%
LVMH performance
source:www.lvmh.com
LV marketing mix
Product
• bags
• cases
• leather goods
• accessories
• shoes
• clothing
• watches
• jewelry
• books
• stationery
Price
• focus on costs
• same price
• no sales
Place
• exclusively
through its own
network of
shops
• site
Promotion
• sponsorship
• charity
• book
• cultural center in Tokyo
• exhibitions
• Maroquinaris Zoologicae
• product placement
• advertisement
The luxury market analysis
sources: www.bain.com, www.goldmansachs.com
Performance of competitors (2011)
Revenue €12,227 m
Profit €986 m
Employees 21,387
Revenue €6,892 m
Profit €1,079 m
Employees 21,387
Revenue €2,841 m
Profit €421,7 m
Employees 8,370
PPR S.A.
Richemont
Hermès
sources: www.ppr.com, www.richemont.com, www.hermes.com
LV SWOT analysis
Recommendations for Louis Vuitton
3 questions relating to the policy of
international marketing
Features of the global marketing of luxury
products
Brand value in luxury sector
and Louis Vuitton brand value
source: www.interbrand.com

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The features of the global marketing of luxury products (on the example of louis vuitton)

  • 1. Features of the global marketing of luxury goods (Louis Vuitton) scientific adviser Butkovskaya G.V. student Vardanyan D.A.
  • 2. Aim determine the features of the global marketing of luxury goods and develop recommendations for the companies to implement global marketing strategies Tasks • study the international marketing strategies • identify the features of the global marketing of luxury products • examine the activity of LVMH • analyze the market for luxury goods and the competitive environment • develop recommendations for Louis Vuitton in global marketing • develop practical recommendations in the global marketing field for companies operating in the sphere of luxury goods​​
  • 3. Сontents 1. Theory 1.1 International marketing strategies 1.2 Features of the global luxury marketing 1. Analysis 2.1 LVMH 2.2 Luxury market and competitive environment 1. Project 3.1 Recommendations in global marketing for Louis Vuitton 3.2 Recommendations in global marketing for luxury products
  • 5. Multinational and global strategies multinational strategy global strategy the principle of selection of the market and market share assessing the potential of each of the markets in terms of profitability for the company focus on increasing the market area on a limited number of key segments market supply offers at each local foreign market products and services tailored to local needs offers a standardized core product on the world market location of production production takes place in each country Production is divided into stages, which are implemented in different countries competitive action company competes within the boundaries of the foreign country, despite the competitive wars abroad. competitive decisions are made based on the nature of competition in the global scale
  • 6. Types of luxury consumers
  • 7. LVMH capital structure (2011) source:www.lvmh.com
  • 8. LVMH (2011) employees assets, €m sales, €m total foreign total foreign total foreign 83 000 58 100 47 100 29 673 23 659 20 110 transnationality index = 70% markets: • France • Europe • Japan • USA • Asia • Other markets source:www.lvmh.com Change in revenue,%
  • 10. LV marketing mix Product • bags • cases • leather goods • accessories • shoes • clothing • watches • jewelry • books • stationery Price • focus on costs • same price • no sales Place • exclusively through its own network of shops • site Promotion • sponsorship • charity • book • cultural center in Tokyo • exhibitions • Maroquinaris Zoologicae • product placement • advertisement
  • 11. The luxury market analysis sources: www.bain.com, www.goldmansachs.com
  • 12. Performance of competitors (2011) Revenue €12,227 m Profit €986 m Employees 21,387 Revenue €6,892 m Profit €1,079 m Employees 21,387 Revenue €2,841 m Profit €421,7 m Employees 8,370 PPR S.A. Richemont Hermès sources: www.ppr.com, www.richemont.com, www.hermes.com
  • 15. 3 questions relating to the policy of international marketing
  • 16. Features of the global marketing of luxury products
  • 17.
  • 18. Brand value in luxury sector and Louis Vuitton brand value source: www.interbrand.com