Marketing Mix Of Louis Vuitton

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

• The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
• Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

• The marketing mix helps a company choose and decide on a suitable marketing strategy
• The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
• The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for Louis Vuitton

Louis Vuitton makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix Louis Vuitton is presented below:

2.1. Product

Product is one of the most important components of the Louis Vuitton Marketing mix. The distinctive characteristics of the product by Louis Vuitton are:

2.1.1. Quality

• Louis Vuitton maintains the high quality of products
• High product quality is maintained by adding value during different stages of the value chain
• Louis Vuitton procures raw materials from reliable and trusted suppliers only
• These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
• High quality promise and delivery also provides Louis Vuitton with a distinctive competitive advantage

2.1.2. Ease of use

• The products manufactured and sold by Louis Vuitton are relatively easy to use
• All products come with a user manual, which is easy to understand and which provides simple instructions for product use
• The consumers can also call the 24/7 helpline to understand details about product usage
• Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

• Louis Vuitton has a broad portfolio of products
• The broad portfolio helps Louis Vuitton in reaching different target groups in the market
• Also, the broad portfolio allows financial strength to Louis Vuitton
• The broader product portfolio also adds more value for Louis Vuitton

2.1.4. Benefits of product consumption

• Louis Vuitton offers functional benefits to consumers of the product use
• These functional benefits are promised and delivered – however, they are also delivered by other similar products
• The distinguishing aspect of Louis Vuitton is its delivery of emotional benefits to the consumer
• Products manufactured and sold by Louis Vuitton promise consumers an ego boost, confidence, and security
• Louis Vuitton also promises fulfilment of psychological needs on product consumption
• These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

• The products by Louis Vuitton are available in different sizes
• Louis Vuitton has made use of different SKUs to increase market penetration
• Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
• Through the production of different SKUs, Louis Vuitton has also increased the trial rate
• Different SKUs have also helped Louis Vuitton improve its product accessibility

2.2. Price

Louis Vuitton marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix Louis Vuitton uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

• By using premium pricing for some of its product ranges, Louis Vuitton encourages favorable brand and product perceptions in target consumer groups
• Premium pricing for products also encourages a favorable quality perception of Louis Vuitton products amongst consumers
• With premium prices, Louis Vuitton has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
• Premium prices add a touch of privilege and high value in Louis Vuitton products
• Using elements of premium prices in other product ranges has also allowed Louis Vuitton to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

• Since Louis Vuitton has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
• With the use of psychological pricing, Louis Vuitton also successfully adds more value to its products from the point of view of customers
• Louis Vuitton also gains higher sales with psychological pricing
• Consumer purchase a higher amount of Louis Vuitton products because of its use of psychological pricing
• Louis Vuitton is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

• Louis Vuitton is able to penetrate different regional markets optimally with the use of geographical pricing
• For offshore locations, geographical pricing also allows Louis Vuitton to cover shipping and customs expenses
• Geographical pricing also allows Louis Vuitton to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

• For some product ranges, Louis Vuitton is also known to use bundle pricing strategy popularly
• Louis Vuitton also uses bundle pricing during sales
• Bundle pricing increases the trial rate for consumers
• Louis Vuitton experiences higher return on the cost of gaining a new customer
• With bundle pricing, Louis Vuitton is also able to control costs and prices by lowering marketing and distribution expenses
• The use of bundle pricing also adds value to the umbrella brand name of Louis Vuitton.

2.3. Placement

Louis Vuitton places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

• The company maintains stores operated by the management of Louis Vuitton in all markets
• Company-operated stores give Louis Vuitton higher control over operations as well as store layout and design
• Louis Vuitton also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
• The company operated stores also give leverage to Louis Vuitton in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

• Louis Vuitton licensed stores also allow consumers to enjoy the various product offerings by the company
• Licensed stores also decrease the risk of financial and physical investment for Louis Vuitton in unstable markets
• Licensed stores have also given Louis Vuitton high business growth, and a boost for rapid market expansion and penetration
• Through licensed stores, Louis Vuitton has also learned about local consumers and cultures
• Licensed stores and shops encourage sales of products by Louis Vuitton by aligning it with local cultural values
• Licensed stores also help Louis Vuitton in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

• Louis Vuitton has developed a successfully operational website for online order placement and order tracking
• Louis Vuitton also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
• The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
• Online retailing, and using the internet to make sales has boosted the sales for Louis Vuitton and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

• Louis Vuitton also places its products in supermarkets and hypermarkets across the country
• A large number of Louis Vuitton target groups shop from supermarkets and hypermarkets
• Placement in supermarkets and hypermarkets also improve cost efficiency for Louis Vuitton

2.3.5. Partner agents

• In offshore locations, Louis Vuitton also makes use of partner agents for its products’ placement
• These partner agents are assessed and evaluated on strategic compatibility and reliance
• Louis Vuitton contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for Louis Vuitton also places high importance on the promotional tactics and strategies used. The promotional strategies allow the Louis Vuitton to interact with the consumers and influence them directly. Louis Vuitton uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

• Louis Vuitton has corporate profiles on all social media websites and portals
• Louis Vuitton uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Louis Vuitton to understand the customers, their needs and demands
• Louis Vuitton uses this feedback and incorporates it in its broader marketing and organizational strategy
• Louis Vuitton also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

• Louis Vuitton has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
• Each purchase is entered into the loyalty card by Louis Vuitton and is valued for points against the products’ monetary value
• The loyalty card can be purchased or is given complementary by Louis Vuitton on high valued purchases
• Frequent usage and purchase of products by Louis Vuitton also has rewards against the loyalty card

2.4.3. Community Influencers

• Louis Vuitton makes use of community influencers as its on-ground promotional efforts
• Louis Vuitton identifies strong and confident individuals to be brand ambassadors in their communities
• Louis Vuitton provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

• The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, Louis Vuitton also makes use of out of house hoardings
• Hoardings increase visibility for Louis Vuitton and also work towards building stronger brand recall
• Louis Vuitton also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Louis Vuitton have progressed to include a slice of life elements and characteristics
• TV advertisements by Louis Vuitton also highlight the functional benefits of the product

2.5. People

The marketing mix of Louis Vuitton also places an essential focus on people development and people building. This is because Louis Vuitton realizes the importance of employees in building strong customer relationships. Louis Vuitton develops its employee and people by focusing on the following aspects:

2.5.1. Training

• Louis Vuitton makes sure that all employees undergo regular training sessions for skill development and enhancement
• Trainings at Louis Vuitton are not the only field related, but also focus on essential management and organizational skills
• Training sessions and activities at Louis Vuitton also identify with the employee's own needs of progression, development and growth
• All training sessions and activities designed and carried out by Louis Vuitton take into consideration business goals and objectives, as well as employee's personal goals and aspirations
• Louis Vuitton, therefore, tries to develop the employee as an organizational member, as well as an individual
• All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

• Louis Vuitton works on strengthening the organizational commitment in its employees
• Louis Vuitton builds employee loyalty so that people can reflect their optimal best at work
• Louis Vuitton also understands that satisfied employees will lead to happy and satisfied customers
• Louis Vuitton regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
• Louis Vuitton also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

• Louis Vuitton employees are the face of the organization
• Louis Vuitton are motivated through the exciting and creative organizational culture
• Employees are also motivated through different reward programs and bonuses that Louis Vuitton distributes
• Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

• Louis Vuitton remains one of the leading players in the industry also because of its focus on succession planning
• Louis Vuitton conducts succession planning for all managerial levels
• Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at Louis Vuitton
• Strategic succession planning has allowed Louis Vuitton to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

Louis Vuitton has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

• All operations at Louis Vuitton are clearly defined and communicated to the employees
• Louis Vuitton makes sure that employees are well trained, and knowledgeable of all processes relates to operations
• All stages of operational processes focus on maintaining a high quality level and standard of the products
• Systematic process re in place for all operation – from procurement to the final sale of the products
• All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
• The use of online portals for operational processes also builds a strong backup for managerial purposes at Louis Vuitton

2.6.2. People Management

• Louis Vuitton has also defined clear processes for people management through streamlining its human resource management department
• Louis Vuitton has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
• All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
• Progressive people management systems and processes have allowed Louis Vuitton to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

• Louis Vuitton also has defined policies and processes for managing and maintaining quality
• All products undergo triple quality checks to ensure that customers receive the best product
• In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
• The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

• Louis Vuitton manages store management through stringent and closely monitored policies and processes
• These processes relate to not only the floor and space design but also to the performance of the employees at the store
• The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
• The company also has a systematic process for customers who interact with the products and feel them before making the purchase
• The final sale at the store is also clearly defined – for the employees and the customers both
• Processes and policies are important for Louis Vuitton for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for Louis Vuitton as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for Louis Vuitton include:

2.7.1. Store atmosphere

• The store design and management for Louis Vuitton is exciting and creative
• The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by Louis Vuitton at ease
• The store design is also important for Louis Vuitton because it controls the level and nature of experience and interaction that the customers have with the product and the brand
• With company-operated stores, it is easier for Louis Vuitton to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

• Louis Vuitton has unique packaging, which is different from other players in the industry
• Louis Vuitton also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
• The logo for the company is simple, and recognizable by the consumers easily
• The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by Louis Vuitton
• The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by Louis Vuitton

2.7.3. Website design

• The website design is simple and easy to use
• Louis Vuitton has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
• The corporate website of Louis Vuitton also has the brand logo, and is packaged similarly to the products offered by the company
• The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings