Louis Vuitton's Brand Analysis - Case Study Example

1. Brand Selected Louis Vuitton 2. Background Louis Vuitton is a 150 year old brand which has an image for itself as a luxury brand. Traditionally, Louis Vuitton was a niche lifestyle brand known around the world for creating luxury travel trunks and leather accessories for the well to do. By offering consumers a fresh take on its core product and by broadening the brand's scope of business (Schaffel, 2004). The company uses industrial methods to make luxury products with the help of the skills of exacting professionals of the company who retain the time-honoured values and savoir-faire of true artisans (Louis Vuitton.com). In 1987 Louis Vuitton became a subsidiary of LVMH, the world's leading luxury goods group. The company took full advantage of the many synergies generated within the group while retaining its own identity and remaining faithful to its distinctive difference (Louis Vuitton.com). Louis Vuitton, the founder of the famous French luxury goods brand, began manufacturing trunks in Paris in 1854, and the company he started went on to become one of the world's most famous makers of luxury goods, known especially for its designer luggage pattern: a beige-on-chestnut monogram, "LV." Vuitton's high-quality travelling trunks were such a hit that he had to expand his factory within a few years, relocating to Asnires in 1860. As the years went by the Vuitton line gained international recognition, thanks in part to a bronze medal at the 1867 World's Fair and a gold medal at the 1889 World's Fair, both held in Paris. After Louis died in 1892, his son, Georges, took the company to new heights, developing what is recognized as the first "designer label" on a product. Widespread copying of Vuitton patterns pushed Georges to design the distinctive "LV" monogram. Vuitton's luggage company has since become a world leader in luxury consumer goods, with products that include travel books, perfume, distilled spirits and designer clothing (Answers.com). Louis Vuitton is a truly global brand associated with luxury travel, the LV monogram immediately conveying an aura of status, sophistication, and style. The roots of this success lay in a number of landmark products, commencing with Vuitton's grey Trianon canvas trunk in the year 1854. The stylish LV Monogram canvas that was carried on in the year 1896 and the soft Steamer Bag that was introduced in the year 1901 prefigured the opening of the Louis Vuitton building on the Champs-Elyses in Paris, the largest travel goods store in the world. The famous Keepall Bag, often seen as a forerunner of the duffel bag, was launched in 1924 and was followed by similar products. In the last quarter of the 20th century Louis Vuitton developed as a truly global brand: the first LV stores opened in Tokyo and Osaka in Japan in 1978, in South Korea in 1984, in China in 1992, in Marrakesh in the year 2000, in Moscow during 2003, and in New Delhi during 2003 (Answers.com). 3. Brand Analysis Consumers identify a brand's distinctive capabilities based on their perceptions that have themselves been created by the marketers over a period of time. A genuine brand is "the internalized sum of all the impressions received by the customers and consumers resulting in a distinctive position in their mind's eye based on perceived emotional and functional benefits" (Knapp). A brand, in general, conveys certain aspects like attributes, benefits, values, culture, personality and user each one of which are discussed below. Attributes: Attributes are things that usually speak about the product. A brand usually conveys attributes of the product in order to inform existing customers and at the same time attract new potential customers. If this aspect is compared with Louis Vuitton, the brand that is being discussed in this paper, the attributes of Louis Vuitton products' are stylish, fashionable and modern and are made of high quality premium leather. Benefits: In order for a brand to be successful in the market, it is necessary that the product attributes eventually transform into both emotional and functional benefits of the same. If the same example of Louis Vuitton which was mentioned above is considered attributes like style and fashion will transform into emotional benefits and the quality of clothing will transform into functional benefits. The later one is referred to as functional benefit because the consumer may not have to spend frequently on buying travel accessories or goods. Values: Most of the brands associate some value with themselves. For example, the beige-on-chestnut monogram, "LV" of the brand Louis Vuitton, communicates a value proposition that the luxury goods manufactured by the company are especially designer luggage patterns. Culture: Brands also represent a certain culture. Even this aspect can be better explained with the same example of Louis Vuitton that we've been discussing all through. Louis Vuitton projects a culture of traditionalism in its advertisements. Personality: Brands communicate personality status. Louis Vuitton suggests that it is a brand for people who care for the society and themselves. User: Brands clearly state their user segments. Louis Vuitton is targeted at upper middle class and upper class customers. Brand Image - The Brand Image of Louis Vuitton is clearly visible from the company's official website as the imagery that is visible on the home page of the website reflects the brand's revamped glossy veneer. Shots of sun-glazed men and women wrapped in product, draped across the desert, entice the viewer into opening their signature wallets (Schaffel, 2004). Vuitton.com's added value is the creative glimpse into its inner sanctum. The equal time spent on both the brand's image and on product quality is visible here. For example, the Louis Vuitton online magazine maintains the exclusive vibe long cultivated by this brand by offering users the very latest information about in-demand Louis Vuitton products and providing a glimpse into the minutiae of highly publicized events. Comprehensive information about featured products is prominently displayed in the centre of the page. Accompanying the eye candy is a virtual voyeuristic vault of celebrity stocked store openings and movies showings in the store windows (Schaffel, 2004). Brand Personality can be defined as the immediate "take-away" or response that people have to a brand (Larson). Also, the fact is that whenever a customer sees senses or touches a product, the first involuntary thought that he gets about the product is nothing but brand personality. Most of the advertising specialists and branding consultants' advice that all the activities of a company that are related to advertisements along with the tagline company should ensure that the message they communicate to the customers by way of all these activities should focus on their brand personality. A first impression means a lot when a first-time customer walks into a place of business (NFIB). The appearance and atmosphere of the store, the quality of the products that are displayed at the store as well as the attitude of the service staff can all make that crucial difference as to whether that customer will choose to do subsequent business at that particular store. In order to make that first impression the best one, the essential element is the personality of the store brand. Brand personality is an often overlooked, but crucially important component to develop when creating brand image. When a customer is making a purchase, they are not only looking for a solid product, but also a solid connection with that product. Whenever a brand is being described, it should be done as if it is a person. To be specific, a best description of a brand would be by the use of human adjectives. This way a brand can be given a personality and hence the brand would come alive. Perceived quality can be defined as the customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is, first, a perception by customers (Study Mraketing). In the same way as they perceive the quality of the product, customers also do perceive the personality of the brand. Even this can be defined as the first impression that the customers create in their minds about the personality of the brand. To be specific, the perception of the customer about the personality can be defined as the chosen character that best communicates the brand proposition. It is not the personality of the customers, it is the personality that is most likely to draw their attention, interest them, and encourage them to take action and buy the brand. Value has been recognized as "the fundamental basis for all marketing activity" (Halbrook). Value has also been stated as "a cognitive-based construct which captures any benefit-sacrifice discrepancy in much the same way disconfirmation does for variations between expectations and perceived performance" (Spreng). Therefore, it is the outcome of a cognitive assessment procedure. Moreover, it is an affective evaluative reaction (Oliver). Customer perceived value in commerce marketplace was defined as "the trade-off between the multiple benefits and sacrifices of a supplier's offering, as perceived by key decision-makers in the customer's organization, and taking into consideration the available alternative suppliers' offerings in a specific use situation" (Ulaga). That is, there existed three elements in this definition: "(1) the multiple components of value, (2) the subjectivity of value perceptions and (3) the importance of competition" (Ulaga). The brand pyramid The concept of a brand can be thought of as a pyramid consisting of different layers of meaning and involvement (dobney.com, 2000). At its lowest level a brand is simply an identifying mark to distinguish the product from alternatives. Normally, at this simple level, there is an implicit statement of specification. This, if related to Louis Vuitton, relating to product legacy and quality, the Tradition section allows the viewer to witness step-by-step video demonstrations of the construction of its famous bags and travel gear, complete with a link to an area where the buyer can order customized bags. At the next level, the brand becomes more than a mark of specification; it becomes a mark of assurance (dobney.com, 2000). The luggage of Louis Vuitton was so successful and prestigious that other trunk makers began to copy Vuitton's style and designs. The company has brought in very negligible changes in its methods of manufacturing as the brand is famous for its traditionalism. Suitcases are still made by hand; the craftsmen line up the leather and canvas, tapping in the tiny nails one by one and securing the five-lever solid pick-proof brass locks with an individual handmade key, designed to allow the traveller to have only one key for all his or her luggage (Answers.com). At the next step, the brand provides a mark of association, a badge of a club that the individual wants to be associated with (dobney.com, 2000). Louis Vuitton is a brand that is famous for its luxury monogrammed travel accessories. The beige-on-chestnut monogram, "LV" is an aspect of pride and association which consumers never compromise upon. If customers increase the association with the brand to a next level, it becomes a point of emotional involvement (dobney.com, 2000). A nod to its history as a trunk and travel accessories brand, the Travel section serves as a go-to guide for the cosmopolitan traveller. It contains a City Guide, catering to the jet set target market, and provides recommendations of places to dine visit and, of course, shop in a number of global cities (Schaffel, 2004). 4. Brand Positioning A brand which is positioned well will stay for a longer time in the consumer's mind ((ICMR), 2004). Well positioned brands create differentiation and stay close to the consumers and develop their loyalty, while effectively competing against competitors. Most of the successful brands have clear positioning and differentiation advantages. Companies can also position their brands as the best in the category, or the upscale choice. This way they can cross the national boundaries easily (ICFAI Center for Management Research (ICMR), 2005). High-end premium brands overcome the national or cultural barriers by fulfilling the desire of self-expression inherent in most cultures. This type of positioning helps companies sell their products n international markets. Louis Vuitton has a clear distinction over its competitors as a far superior brand. The company's collection has also created a cult-like feeling among the different genders of the customers. This cult following by both celebrities and wealthy consumers has elevated the Vuitton brand to the foremost position in accessory design alongside houses such as Gucci, Prada, Fendi and Dior (Answers.com). 5. Celebrity Endorsement Brand Sponsorship is a form of publicity, which is done by supporting and linking the organization's name with a particular event, most commonly, sporting events or an activity that involves a large public gathering. Celebrity endorsement is another form of publicity ((ICMR), 2004). The brand's personality should be communicated very clearly to the customers. In order to this, it is necessary that the store owner uses a catchy slogan or even a memorable personality and highlight unique products. Even commercial advertisements would be of help is this situation. The store owner, in his advertisements or slogans, should try and advertise particular company guarantees which are unique. Just as customers will rely on a trustworthy friend, they will have faith in a product that exudes that same personality. Vuitton bags and purses have a considerable list of celebrity adherents who are frequently seen in tabloid and magazine photographs carrying the brand. The Vuitton collection has also created a cult-like following among male and female consumers throughout the world. Owners of the bags and accessories often refer to the products as their "Louis." Artistic Director Marc Jacobs, who assumed the role in 1998, led the charge by commissioning artists such as Stephen Sprouse and Takashi Murakami to lend their cutting edge design ideas to the brand's signature products, creating must-have status symbols that met with a voracious demand. Jacobs also launched the first Louis Vuitton clothing line, which was promptly lauded by the fashion industry. Tapping actress/singer Jennifer Lopez as a model was another key move in skewing younger and getting some zest in print ads (Schaffel, 2004). 6. Special Interest (On-line promotion) As already discussed in the earlier parts of this paper, Louis Vuitton's website - Vuitton's.com reflects its revitalized image. Vuitton.com's added value is the creative glimpse into its inner sanctum. For example, the Louis Vuitton online magazine maintains the exclusive vibe long cultivated by this brand by offering users the very latest information about in-demand Louis Vuitton products and providing a glimpse into the minutiae of highly publicized events. Comprehensive information about featured products is prominently displayed in the centre of the page. Accompanying the eye candy is a virtual voyeuristic vault of celebrity stocked store openings and movies showings in the store windows. Vuitton.com also offers a view of what lies beyond the glamour of the monogram. Relating to product legacy and quality, the Tradition section allows the viewer to witness step-by-step video demonstrations of the construction of its famous bags and travel gear, complete with a link to an area where the buyer can order customized bags (Schaffel, 2004). A nod to its history as a trunk and travel accessories brand, the Travel section serves as a go-to guide for the cosmopolitan traveller. It contains a City Guide, catering to the jet set target market, and provides recommendations of places to shop in a number of global cities. Product recommendations are creatively woven into the travel guide service. For instance, Travel Notebook combines artist's sketches of major cities and information about points of interest along with the location of the Louis Vuitton shop nearest the landmark. The Art of Packing combines instruction, gimmick and promotion, using clickable animated characters (e.g., businessperson on the go, couple on romantic getaway) to demonstrate how to best pack Louis Vuitton luggage for adventures in each featured city (Schaffel, 2004). The Collections section is constructed as an online fashion catalogue, using an easy to navigate pull-down menu. In a smart move designed to retain brand loyalty, visitors can instantly purchase Louis Vuitton products through a connection with eLuxury.com. Other selling techniques include a high quality streaming video, which displays a ringside view of the catwalk to appease the online fashionista which is basically a store locator and an area to create a wish list (Schaffel, 2004). Overall, the company's website maintains a high standard of quality and well-held reputation online by creating a virtual experience that is on par with its product. Bibliography 1. (ICMR), I. C. (2004). Marketing Management. Hyderabad: ICMR. 2. Answers.com. (n.d.). Louis Vuitton. Retrieved April 26, 2008, from Answers.com: http://www.answers.com/topic/louis-vuittoncat=biz-fin 3. dobney.com. (2000, March 3). About Brands. Retrieved April 26, 2008, from Dobney.com: http://www.dobney.com/Strategies/brands.htm 4. Halbrook. (1994). Brand personality. NEw Delhi: Prentice-Hall. 5. ICFAI Center for Management Research (ICMR). (2005). International Marketing and International Business. Hyderabad: ICFAI Center for Management Research. 6. Knapp, D. E. (1998). The Brand Mindset. Delhi: Prentice-Hall of India. 7. Larson, D. (2002). Building a brand's personality from the customer up. United States: Direct Marketing. 8. Louis Vuitton.com. (n.d.). About the company. Retrieved April 26, 2008, from Louis Vuitton: http://www.louisvuitton.com/hr/en/recruit/index.htm 9. NFIB. (2004, 10 11). Brand Personality:Making the Customer Connection. Retrieved 12 18, 2007, from NFIB - The voice of small business': http://www.nfib.com/object/IO_18880.html 10. Oliver. (1996). Brand Management. Delhi: All India Publishers & Distributors. 11. Schaffel, V. M. (2004). Louis Vuitton. New York: Brand channel.com. 12. Spreng, P. a. (1997). Brand Personality: Customer Perception. Delhi: Prentice_Hall of India. 13. Study Mraketing. (n.d.). Brand Mangement. Retrieved 12 19, 2007, from http://www.studymarketing.org/category/Brand_Management/Brand_Management.html 14. Ulaga, E. &. (2002). Managing Brands. Delhi: Vikas Publishing House. 15. Value based management.net. (n.d.). 7Ps - Extended Marketing Mi. Retrieved April 14, 2008, from Value based management.net: http://www.valuebasedmanagement.net/methods_booms_bitner_7Ps.html Read More