Group: LV2

Students: HongWei, Jasmine, Quintus, FreD.

CONTENT1. DIAGNOSIS

IMAGE, IDENTITY, VALUE

2. NO LOGORESEARCH, GOOD STRATEGY FOR CHINA?

3. BRAND EXTENSION: PERFUMEPRO, CONTRA, ALTERNATIVES

4. CONCLUSION

1. Diagnosis of LV: a. keywords

Leather

LV logo

Brown&Gol

d

expensive

costly

luxury

High quality

French

new rich

rigorous

bags

1. Diagnosis of LV: b. Brand Image (Michel 97)

central coreperipheral system

travel

adventure

EMBLEMS:• luxury travel trunks

• “Speedy 30 Monogram”

1. Diagnosis of LV: c. Brand Identity

SIGNS::• logo L&V• monogram• damier canvas • Colors: natural leather

with dark brown

PERSONALITY:• Luxury• Travel, enjoying quality

time• hedonism• status• Timeless

IDEOLOGY:• Life is a journey• Pure Timeless Collection • Respect yourself• Class cannot be replicated

1. Diagnosis of LV: c. Brand Identity (Kapferer prism 1)

1. Diagnosis of LV: c. Brand Identity

(Kapferer prism 2)

Personal Value: Louis Vuitton strives for a maximum of perfection and glamour with a lascivious-looking lady in transparent gloves, red lips and extra-shiny hair.

Source: http://www.marketing-trends-congress.com/archives/2010/Materiali/Paper/Fr/Heine_Trommsdorff.pdf

1. Diagnosis of LV: d. Brand Value / identity

Survey: What would motivate you to buy LV?

3 distinct categories:• quality seekers • status seekers• self-indulgers

Source: https://louisvuittonbrand.wordpress.com/customer-segmentation/

1. Diagnosis of LV: d. Brand Value / psychographic segmentation

2. No logo: a. researchCopied too much? Anteriority research China

> applicant: Louis Vuitton Malletier

It is an EVOLUTION to SOPHISTICATIOIN

started in EU, USA, Japan, now Chinatrend with all luxury brands (some exceptions)“most aspired brand”: 18% 1st tier VS 38% 3rd tier

citieszeitgeist for more individuality and exclusivity

many Chinese consumers think, “I can’t buy Vuitton, I’ve seen it too much, it’s a brand for secretaries.”

PR manager China: “we hope that people can pay attention to the history and culture behind the Louis Weedon brand, with more emphasis on the spirit of travel: freedom, independence, pay attention to quality.“

2. No logo: a. research > China quotes

2. No logo: good strategy for China?show off is more important in Chinasophistication in 1st tier citiescannot completely do without damier / pattern

Suggestions:educate consumers about LV’s spirit and cultureput different local focusses“Tuhaos” remain important clients for LV

3. Perfume: history and context1920’s LV made perfumeIt already exists (fake, see

eBay)Planned 2013, delayed China’s tradition

VS booming product

China and fragrances:

• Almost inexistent before 1980• Start selling form 1990

onwards• Per capita spending on

perfume• US = 10 USD• UK = 33 USD• China = 0.5 USD (2011,

mintel)• Still not considered necessary• Also in Japan it’s small

LV’s brand identity and territory can matchMake very exclusiveOnly sell via LV channels (no Sephora etc…)“Eau de Voyage” is different and very LVRisk: “it’s not their “savoir faire”” (>discontinued brand

extension)

3. Perfume: IF start selling

Arguments:little added valuesurely in China it’s limited

Make very exclusiveOnly sell via LV channels (no Sephora etc…)“Eau de Voyage” is different than other “perfumes”

and “very LV”Risk: “it’s not their “savoir faire””

3. Perfume: if NOT start selling

3.Perfume VS other brand extensionsLine extensions: already fully exploited?Brand extensions:

car interiors (Range Rover), home accessories/furniture (related with travel/style)

Vertical brand line extensions: Upwards: VVIP, VIC (see SGP), limited series, …Downwards: young-collection

3.Perfume VS other brand extensions

Leather

LV logo

Brown&Gol

d

expensive

costly

luxury

High quality

French

new rich

rigorous

bags

3. LV brand extension: Range Rover

central coreperipheral system

big

adventure

sport

expensive

English

luxury

High quality

trave

lnew rich

robust

engine

adventure

trave

l

3. LV brand extension: Range Rover VS Chrysler

Relevant and added

value,

but does it FIT?

conclusionAs is always the case when doing business “in China”, it is wrong to

think of ONE single market; we need to consider various areas/markets! Modern cities vs second tier vs countryside

We would suggest focus on different products for different area’s (only in first tier places “less logo” and perfume)

Connect with clients: more exclusive allure, VIP travels, …Experience centers, flagshistores, clubs

Pay enough attention to MEN (products)STRATEGY? LV has not been the most expensive brand (below

Hermes for ex.), so if want to become more exclusive, then do it via “limited series”, special VIP collections, etc…

Want to know more? Contact?If you want to know more about this study or want to

know where we got the information from, please contact:DERBAUDRENGHIEN Fredericfrederic@kngasia.comwww.kngasia.com

Linked in:https://cn.linkedin.com/in/frederbau