How Does an Exclusive Brand Grow and Stay Fresh While Retaining Its Cachet - Assignment Example

?Louis Vuitton Case Study How does an exclusive brand such as LV grow and stay fresh while retaining its cachet? Branding for Louis Vuitton is oneof the major strategic marketing strategies they used to attract high-end customers. Since Louis Vuitton brand is known to be the world’s legendary luxury brand in terms of fashion, their strategy to stay fresh, at the same time, retain its cachet is very essential to the company itself. Louis Vuitton retains its freshness and still continues to grow by using the same logo while avoiding any changes on its price and never offers discounts so that it will not affect its cachet. The logo plays a vital role in branding because it is one way to attract and build a brand relationship to the customers. As what the statement goes: A logo has the same value as the brand it represents (“Louis Vuitton|Truth,” 2010, para. 6). The value of the logo when it comes to branding should be partnered with creativity and innovation. Hence, it may be a challenge to stay fresh in the luxurious fashion industry for Louis Vuitton, the company never failed to promote its brand by giving the best quality product they can offer to the customers. Louis Vuitton has always been a cash-stuffed suitcase that never loses its cachet by creating the best flawless products using the best leather (“LVMH: The Empire of Desire,” 2012, para.14). Further, it markets them gently but with dexterity. Though Louis Vuitton brand shows fear of the customers changing preference, the firm shows maturity in handling it by launching Louis Vuitton’s own scent (“LVMH: The Empire of Desire,” 2012, para. 14). Spreading the brand to different industries like soft luxury which includes leather and accessories, hard luxury which includes watches and jewelry, and even champagne, as well as cognac can make the brand remain fresh and continue growing to different markets at the same time remain its cachet. 2. Is the counterfeiting of LV always a negative? Are there any circumstances where it can be seen as having some positive aspects? At one point, counterfeiting LV brands can damage the brand’s reputation, as well as can cause decrease of loyal consumers that the brand has (Robles, 2012). Obviously, brand’s reputation is valuable especially in the luxury fashion industry where trademarks and brands showed the difference of Fashion Company among the rest. Same goes with Louis Vuitton, counterfeiting is a very serious issue to deal with. On the other hand, Qian (2011) stated that counterfeiting can also be seen as positive for it promotes brand awareness to the customers and even promotes advertisements (p. 5). Thus, it can result to increase sales of the original product because it somehow urges the customers to buy the original ones (Qian, 2011, p. 5). References Louis Vuitton|Truth in the Telling. (2010). [Web log post]. Retrieved from http://www.girvin.com/blog/?p=5634 LVMH: The Empire of Desire. (2012). Retrieved from http://www.economist.com/node/21556270 Qian, Y. (2011). Counterfeiters: Foes or friends? Retrieved from http://www.nber.org/papers/w16785.pdf?new_window=1 Robles, M. (2012, November 14). Counterfeiting in the fashion industry. Fashionbi. Retrieved from http://www.fashionbi.com/newspaper/counterfeiting-in-the-fashion-industry Ritz-Carlton Case Study 1. How does The Ritz-Carlton match up to competitive hotels? What are the key differences? Human innovation as what Seidman (2011) stated that The Ritz-Carlton applied to match up to competitive hotels. According to Seidman (2011), innovating to human variables is one of the reasons why The Ritz-Carlton differs from other hotels. Ritz-Carlton hotel cultivates the behavioral preferences of their customers so that they can sustain competitive advantage against their competitors. They want their employees to build a customer relationship on their own ways. They can develop a customer relationship by means of giving quick resolutions and even attending to simple opportunities that can please the customer. Ritz-Carlton differs from other hotels because of its way of handling customers by innovating human behavior (Seidman, 2011). They develop an organizational culture that gives employees the freedom to invest their creativity and time to enhance, as well as provide quality customer experience. Though they know that there are many hotels just like them that can provide luxurious rooms, they still cannot be matched when it comes to its unique behavior in approaching customers. The company trusts their employees that much to even give them up to $2,500 to spend whenever they want to impress a customer or simply help the customer. This trust that Ritz-Carlton entrusted to its employees is the main key regarding the success of the company. It helps the employees to show to the customer a personal care that can make the guest feel special. Sustaining this kind of competitive advantage among other hotels is much effective because customer coming back to experience the same customer service that they want is part of the strategic ways for a firm to increase sales (Seidman, 2011). 2. Discuss the importance of the “wow stories” in customer service for a luxury hotel like The Ritz-Carlton? As what Thomas (2010) quoted “stories speak to both parts of the human mind, its reason and emotion”, it showed the importance of the ‘wow stories’ that The Ritz-Carlton has been doing to maintain its customer service. Sharing ‘wow stories’ to every employee everyday provides encouragement and inspirations to other employees for them to better provide extraordinary customer service. These true ‘wow stories’ that are based on experiences of other employees on the company in giving exemplary customer service can actually affect other employees’ behaviors. The importance of sharing ‘wow stories’ in the Ritz-Carlton hotel, except from providing motivation to other employees in doing their best in terms of customer service, is that it builds employee recognition (Thomas, 2010). Thus, it can boost up the self-esteem of the employee which results to effective customer service. References Seidman, D. (2011). Innovating in humanity. Retrieved from http://www.businessweek.com/managing/content/jan2011/ca20110127_955344.htm Thomas, L. (2010). Use stories to improve customer service. Retrieved from http://lindathomasentrepreneur.com/2010/ use-stories-to-improve-customer-service/ Amazon Case Study 1. Why has Amazon.com succeeded online when so many other companies have failed? Chaffey (2012) cleared the reason why Amazon.com succeeded online is because they achieved customer loyalty at the same time achieved the repeat purchase of the customer. Though other companies achieved awareness, they did not achieve loyalty which is important to any online businesses. Loyalty from the customer can generate an increase in sales. Hence, that is the edge of Amazon.com against other companies. Aside from good customer experience, they also offer wide selection for customer in terms of merchandise and even provide low prices (Chaffey, 2012). Amazon.com, in addition, never failed to give the customers the convenience that they need. They promote free shipping to encourage customers in increasing their basket size to avail such promotion. Further, Amazon.com provides fulfillment promise to the customers. Providing estimation of delivery dates, latest information regarding inventory availability, and updated facilities are ways that the Amazon.com did for them to succeed online (Chaffey, 2012). 2. Will the Kindle revolutionize the book industry? Why or Why not? No, Kindle will not revolutionize books just like what happened to music when iPod was introduced (“Kindle Vs Books,” 2010, para. 12). There are still books from popular authors that are not available in digital form due to royalty issues. However, since Kindle makes the reading in a digital manner, it will definitely change the way people usually read. Although it may not revolutionize books as how iPod revolutionized music, it still creates changes because once people go digital, it is quite impossible to go back in an analog way. Through Kindle, it can quickly give customers what they want to read due to easy downloads (“Kindle Vs Books,” 2010, para. 12). 3. What’s the next for Amazon.com? Is cloud computing the right direction for the company? Where else can it grow? Cloud computing can be the next step for Amazon.com. According to Scheier (2013), there is a rapid growth in cloud services due to its beneficial factors for the businesses. Thus, Amazon.com can be in the right direction for their company when it comes to cloud computing. Since the demand for cloud services will continue to grow for years to come, it would be the best step for Amazon.com to offer such services to other businesses. Scheier (2013) even added that through the use of cloud computing, it helps businesses to be more economical. It helps businesses in an economical way because it provides and shows the changes of demands, as well as the change in customer requirements (Scheier, 2013). Thus, companies can easily roll out other new products, at the same time, create and attract new markets. It can even let businesses enter to different geographies. Another suggestion that Amazon.com can possibly grow and be successful in terms of online retailing could be on video services. As what Eberhard (2012) points out that Amazon.com is known to be a one-stop-shop online for mostly any item that you want to buy, and so video service can help expand another market. Thus, Amazon.com can give additional entertainment to the customers by adding video services. References Chaffey, D. (2012). A summary of Amazon’s business strategy and revenue model. Retrieved from http://www.smartinsights.com/digital-marketing-strategy/ online-business-revenue-models/amazon-case-study/ Eberhard, R. (2012). The next step Amazon needs to take to remain competitive. Retrieved from http://www.fool.com/investing/general/2012/02/02/ the-next-step-amazon-needs-to-take-to-remain-compe.aspx Kindle Vs Books. (2010). Retrieved from http://kindlevsbooks.blogspot.com/ Scheier, B. (2013). What direction blows the cloud? [Web log post]. Retrieved from http://boundary.com/blog/2013/01/31/what-direction-blows-the-cloud/ Read More