Louis Vuitton in Japan Case Study Essay example

2223 Words Nov 6th, 2013 9 Pages
Louis Vuitton is the world’s biggest luxury brand for bags and accessories. It was established in France, Europe in year 1854. Louis Vuitton brand and company is an international well-established firm named after the founder and designer Louis Vuitton. Following the death of Louis Vuitton in 1892, his son, Georges Vuitton took over the leadership of the firm. He was ambitious about taking Louis Vuitton to the next step — building a global brand and setting up a multinational corporation. In year 1885, LV opened its first oversees store in London.
In 1936, Gaston-Louis Vuitton took over the direction of the company when his father, Georges Vuitton, passed away. He guided the brand into its modern age. The company expanded its product
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In general the concept of ‘relative quality’ is challenged by the ‘absolute quality’ which has forced customers to LV or nothing attitude. LV has taken action against counterfeiting item by Enlightenment Champagne, involvement of French trademark authorities etc., make there product defendable. Partnership with local artist and Limited edition products has demonstrated that Product Line up and innovation are very strong parts of LV business model in Japan.
Price: Louis Vuitton handbags are priced high. Such high prices are unnecessary for merely stowing and carrying things. In essence, the Louis Vuitton difference is value, not price—this being absolute value, not relative value. Customers of Louis Vuitton are fine paying the prices for the luxury and quality.
Place: In general more distribution channels the company has more sales potential there is. However, in case of LV – they are selling only from few stores and online in Japan after the new CEO. Their main Place of business their stores around the world. The reason being, it’s easy to control few distribution channels then many. Control is the key in the business plan of LV. Also, as the products are fashion products, which needs lime light, and the availability of prime locations and possibility of having multiple LV stores in same vicinity forced the company to have limited distribution channels.
Promotion: Surely, it’s not common to see LV commercial on TV even at primetime. This is not because LV is

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