Luxury Brand Strategy of Louis Vuitton

In: Business and Management

Submitted By lifewithinu
Words 7622
Pages 31
WASEDA

BUSINESS

& ECONOMIC

STUDIES

2009

NO.45

Luxury

Brand

Strategy

of Louis Vuitton

- Details of Marketing Principles by Shin'ya Nagasawa*

Abstract: By systematicallybreaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power.
1. Introduction Consumers like brand items, while researchers like brand theory. Although scholars

also use the word "brand" to refer to the likes of Coca-Cola and McDonald's, there is a vast gulf between these brands and the luxury brands we explored in the previous book. In researchers' brand management theories, one rarely finds mention of representative

luxury brands like Louis Vuitton or Dior, or of LVMH. Based on this awareness, we carefully scrutinized the ecology of the unique LVMH firm, considering the nature of the brand as distinct from commodity markets, although

* Shin'ya Nagasawa is a professor of MOT (Management of Technology) at Waseda Business School, Graduate School of Commerce, Waseda University, Tokyo, Japan, and also a visiting professor of ESSEC BusinessSchool, Cergy, France (2008-2009), He holds a Doctor of Engineering from Waseda University. This paper is revised from the paper presented on the International Conference of IASDR (International Association of Societies of Design Research)2009, Seoul, October…...

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