An info-graphic containing Synopsis, Problem Definition, Situation Analysis and Recommendations of the case- Louis Vuitton.

1. Biggest luxury-goods firm
Japan being its profitable market, contributing 50% to its profitability
By 1989, it has entered 130 countries across the world
After conglomeration, LVMH has been into 5 business divisions: Fashion, leather
goods, selective retailing, wines & spirits, perfumes & cosmetics, watches & jewelry
 Bernard Arnault bought the company in 1989
Boost in manufacturing productivity by 5% per year,2000
30% hike in earnings in 2003
Success of new line product, Murakami in 2003
Focused on problem solving, whenever problem arises, in more efficient way(zipper
problem)
Advertised through every possible medium: print Ads, billboards, magazines, Ads on
TV etc.
Adopting expansion strategy by 2007
New strategy adopted by focusing local customers in Japan
Working on reinventing itself and regained what it used to be in Japan
Focusing children as well now
Establishing the brand as a consistent trendsetter in high
fashion
 Attracting young buyers is a big problem
To maintain the same brand in Japan
VL’s move into new product line could result in Brand
Dilution, is a big problem.
Problem arising due to counterfeit of LV products from
Seoul, Hong Kong, Tokyo, Los Angeles
Japanese consumers’ eagerness to buy LV bags at
inexpensive price
Change in Japanese mindset after global recession
Market leading towards saturation.
 LV had been following aggressive marketing strategy in the country,
opening extravagant stores
 Japan contributing 20% to its revenue and 25% contribution is done by
rest of Asia(exhibit 4)
 LV has decreased its investments in Fashion & Leather goods
 The more the prices were raised, the more the customers come
back(Brand building focused)
 Young buyers were attracted by Brand Image and older clients by quality
and lifetime free repairs
 Manufactured products in France, bearing the expenses of high labor
cost.
 Cultivated a celebrity culture and employed famous models and actresses
Situational Analysis
 Reducing dependency on Japan by focusing on other
developing countries
 Reduce the no. of limited edition throughout the year.
 Generating awareness among children by using Social media
 Focusing high-end consumers through LinkedIn
 Limit its product line, which is leading to customer suspicion
 Launch a new brand and use predatory pricing to kill
counterfeits.
Problem Definition
Recommendation
Sonia Grover