LOUIS VUITTON
Carmen Maria Ponce Daniella Castro Cookie Betances Madison Todd FASM 400 | Fall 2018 Professor Meloney Moore
AGENDA
1. Company Overview 2. Sustainability Efforts 3. Product Concept 4. Product Process 5. Product Competitors 6. 5Ps 7. Target Consumer 8. SWOT Analysis 9. Marketing Strategies
COMPANY OVERVIEW
OVERVIEW Founded in Paris in 1854, Maison Louis Vuitton has inherited the ambition and vision of its founders. Today, Louis Vuitton’s spirit of adventure is expressed through its unique heritage, values, rigorous spirit of innovation and ingenuity, the boldness of creations and the demand for perfection in its designs. The House currently carries leather goods, ready-to-wear, accessories, shoes, watches, and jewelry. Each piece that is created at the House has become legendary. Nicolas Ghesquiere has been the Creative Director of Women’s Collections since 2013. Virgil Abloh has been the Creative Director of Men’s Collections since March 26, 2018. The current Louis Vuitton CEO is Michael Burke.
TIMELINE Icon created 1896
Creation 1854 Founder Georges Vuitton
Headquarters in Paris
CEO Michael Burke
Nicolas Ghesquiere Creative Director
430 stores worldwide
MISSION Our company is more than a name. It is a mindset. A challenge. A responsibility. Pioneers crafting unique journeys. Louis. Timely. Timeless. Audacity. Legacy. We find balance in constant motion. Impossible triggers our creativity. We pave the way. Passion in action. Human adventure. Collective enthusiasm. Unique talents and savoir - faire. People. Personalities. Possibilities. We never stop dreaming. We craft realities.
COMMUNITY EFFORTS The Foundation Louis Vuitton This phase in philanthropic efforts epitomizes the support for art, culture, and heritage. Climate Change Half of the company’s CO2 emissions are generated by the consumption of energy. Over the past 15 years, Louis Vuitton has reduced this impact by 12% by making better lighting choices. Also, by reducing waste in packaging costs, they helped the environment. Louis Vuitton for UNICEF The partnership between Louis Vuitton and UNICEF has already raised over five million dollars to provide humanitarian support for children in urgent need.
SUSTAINABILITY ISSUE Louis Vuitton has been publicly known as one of the high-end luxury brands that burn their unsold leather merchandise. This is done in order to not tarnish the perceived brand image and so that the products don’t fall into the black market. This action is harmful to the environment. LVMH as a whole had over 1,072 metric tons in hazardous waste from their fashion brands in 2017. This is a 1% decrease from 2016. Each Louis Vuitton handbag goes through over 250 operations until the final product is produced. Hazardous waste is considered anything that has corrosive, reactivity, and toxicity features. When leather is treated, it is coated with flammable chemicals and other harmful materials. Burning this hazardous waste is extremely harmful to the environment.
PRODUCT CONCEPT After analyzing the issue and observing the market, we decided to use the unsold product from Louis Vuitton manufacturers. By using this material to create an accessories collection, we strive to be more sustainable and to improve the use of resources. We developed two products to better showcase our concept: earrings and bracelets.
PRODUCT OVERVIEW
INSPIRATION
PRODUCTION PROCESS
PRODUCT We have decided to create a sustainable accessories line for Louis Vuitton. By recycling the older bags that the company would normally burn, we will be saving many hazardous emissions from entering the atmosphere. Also, by reusing these materials, we will be able to create new products that will be unique to the vintage legacy pieces the company has carried before. The name of this campaign will be Residue Revolution. This name was chosen due to the effect that each word has on society and on sustainability. Residue means scraps and leftovers from pieces that have already been made. Revolution is a cycle constantly spinning around one factor, which in this case, is sustainability. We believe this is a strong campaign name.
PRICE Our main strategy regarding pricing strategies is to set our price point in the same area as other competitors. Because we know that these products are selling for other retailers and that they are similar in make, we should set the prices respectively. Pure Leather Bracelet, Small: $350 Pure Leather Bracelet, Large: $400 Sincere Leather Earrings: $450
PROMOTION The products will be advertised through different social media outlets, press, printed magazines, and billboards. Our primary marketing tool will be through Instagram and Twitter. This will be an ever-revolving door of communication between new Louis Vuitton products and consumers. The company will have press releases to communicate to a wider audience. This will also be key to magazine ads. Louis Vuitton will also create a video advertisement that will describe the steps they are taking to become more sustainable.
PLACE In terms of location, the product will be launched and only offered in major cities. These will be Paris, London, New York, Milan, Tokyo, and Hong Kong. After analyzing the sales in each of these markets, we will be able to better understand the reception of the consumer towards the product and then make corrections where necessary. After this process, we expect to launch these products on a larger scale. We will also analyze the market for a pop - up shop for this concept. We want to create as much awareness as possible regarding sustainability and our new product line.
PEOPLE The product will be ideally targeted to a diversified audience that our products aim to approach. The product target market are women from diverse backgrounds and cultures. These individuals are conscious about the environment and the misuse of resources in the fashion industry. These are wealthy women living in major cities. Our aim is to empower women by creating beautiful pieces that transmit the importance of today’s issue.
TARGET CONSUMER Louis Vuitton operates in 50 countries with more than 430 stores. These are mainly located in metropolitan areas, such as Paris, London, Hong Kong, New York, and Tokyo. Most of the market is based on Europe, North America, and northeast Asia because of the current economic status in those areas. Louis Vuitton depends highly on the Japanese consumer; this is a large part of their consumer base.
CUSTOMER PROFILE Yoko
The Independent Woman - 32 years old - Lives in Tokyo, Japan - Currently works as a Creative Director at Dentsu, an advertising company, the fifth largest in the world. - Average annual income $125,000 - Social, feminist, active, and art driven - Enjoys visiting museums and art installations, travels frequently for her job and pleasure, loves photography and yoga - Loves following up on the latest trends in fashion, but also sticking with classic designers - Yoko’s grandfather has had respiratory illnesses before due to the air pollution from the surrounding manufacturers.
COMPANY STATISTICS
COMPETITORS Bottega Veneta Known for Italian luxury products Part of the Kering Group Bracelet: $270 Earrings: $450 Hermes Well known for quality of leather Bracelet: $410 - $500 Earrings: $670 Prada Known for cutting edge style and experimental pieces Bracelet: $235 Earrings: $570
ANALYSIS Less waste and loss High demand for high - end leather goods Known for quality of products Brand recognition Wide target market Low cost of production Less counterfeit
STRENGTHS
Reuse of leather instead of recyclable Time consuming Potential lead to consumption Reliance on Japanese market
WEAKNESSES
OPPORTUNITIES Use of leather Reuse more as a company Empower women Forefront on trends and issues
THREATS Recreating even more waste Uneven amount of leather per season
MARKETING STRATEGIES
MARKETING Marketing Strategy Marketing through social media platforms such as Instagram, Twitter, and Facebook to engage and reach out to customers and promote the new line of recycled leather accessories. Products available to shop through the website and in stores. Billboards in Metropolitan cities with the campaign. Print Advertising in magazines.
MARKETING MOOD
PRODUCT SHOTS
WEBSITE
MAGAZINE
BILLBOARD
WINDOW DISPLAY
SOCIAL MEDIA
SOURCES https://www.humblebunny.com/japans-top-social-media-networks-2018/ https://sustainabledevelopment.un.org/sdgs https://www.lvmh.com/houses/fashion-leather-goods/louis-vuitton/ https://www.marketing91.com/swot-analysis-louis-vuitton/ http://www.thefashionlaw.com/home/burned-bags-destroyed-watchesthere-is-more-to-the-alleged-destruction-of-luxury-goods-than-you-think https://us.louisvuitton.com/eng-us/women/timepieces/_/N-1wv8w4e/ to-2 https://www.dictionary.com/
LOUIS VUITTON