The Louis
Vuitton luxury French fashion and leather goods brand began manufacturing trunks in Paris
in 1854, and the company 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".
LVMH group
is a world leader in luxury, which possesses a unique portfolio of over 60
prestigious brands.
The Group is active in five different sectors: wine & soirits,
fashion & leather goods, perfumes & cosmetics, watches & jewelry,
selective retailing.
The Vuitton collection of bags and purses has also
created a cult-like following among consumers. Owners of the bags and
accessories often refer to the products as their “Louis.” This cult following
by both celebrities and wealthy consumers has elevated the Louis Vuitton brand
to the foremost position in accessory design alongside houses such as Gucci, Prada, and Fendi.
In 2006,
the LVMH group announced a 10% increase in income, and 16% increase in profits.
Nowadays,
in its 152nd year of operations, there are 362 shops in 52 countries
around the world, all owned and managed by Louis Vuitton, including the Tel
Aviv store which opened in 2002.
The
products are sold only through their stores- they do not use any other
distribution channels. Their extreme know-how, legacy and craftsmanship have
turned the brand into a well known status symbol.
Using the knowledge we have acquired in
the past few years of our studies, we are very excited to work with Louis
Vuitton on trying to create a marketing strategy as to penetrating the Israeli
market, which the company has been doing since 2002.
Israel is a very special
country, and a very unique and different market. There are numerous differences
in the wealth sector in Israel
than that aboard; there are differences in the size of the market and consumer
behaviors, complete difference in the Celebs culture, in the political scenery,
in the fashion industry and in the social-economic gap that is very
representative of this country.
We will be providing you with an
analysis of the Israeli luxury goods market, and an analysis of the consumers
in the target audience, and from there we will elaborate on directions we think
should be further explored to successfully penetrate this market.
This paper is the first part of
the yearly seminar, which includes the current situation analysis.
It
includes:
1. Introduction
1.1. About Louis Vuitton
1.2.
About the project
2. Market
Analysis
2.1. The Market
2.2. Environmental analysis
2.3. Competitive analysis
2.4.
Porter model of five forces
2.5. SWOT analysis
2.6.
Expected developments and innovations in the market
2.7. Price levels
2.8. Marcom activities
2.9. Distribution channels
2.10. Major trends in the global market
3. Consumer Analysis
3.1. Segmentation bases and Actual
Consumers
3.2. Buying habits
3.3. Consumption opportunities
3.4. Restrictions and problems with existing products
3.5. Consumer perceptions towards existing brands
3.6. Factors
that influence consumer choice
3.7. Effectiveness of advertising and other Marcom tools
4. Preliminary strategic options
