Louis Vuitton is among the fastest growing French fashion houses that have been in existence from the 1850s. It has developed over the years producing the best of the luxury fashion products. This paper presents the situational analysis of the macro and micro factors that impact on marketing strategies. Additionally, it presents the SWOT analysis of Louis Vuitton. Also, it discusses the role of segmentation, targeting and positioning process. Consequently, the paper indicates the criteria used to segment markets and development of positioning strategy.
Just like other fashion houses worldwide, the company deals with a range of products that get sold in various regions. Among the products that Louis Vuitton deals in include quality watches, leather products, jewelry, sunglasses and many more products. Most customers prefer products from the company because it sells genuine and long-lasting goods. The technological advancements have resulted to the maximization of the sales (Luo, Xueming & Chitra 18). Following global demand for the goods from the firm, it sells its products through e-commerce section of its website. The main competitors to Louis Vuitton are the Gucci and Prada. Louis Vuitton, therefore, strives to retain customers’ confidence by producing quality products.
For any business to be successful, there must be marketing strategies to ensure that the firm’s products sell more. In as much as the fashion house is determined to improve on its sales, some factors affect such an objective. The macro factors may include political, technological and social factors that are considered to be external factors as they are beyond the operating system of the company. For instance, luxury products sold in the house have been exposed to higher taxes by the government to increase government revenue. Additionally, the government imposes high taxes on such products so as to boost the nation’s income distribution. Therefore, political factors affect the house’s strategy of maximizing the sales through selling at lower prices. Moreover, social factors also impact negatively on marketing strategies of the firm. Social factors, for instance, values, beliefs, and other religious teachings do not appreciate fashion products (Luo, Xueming & Chitra 18).
Strengths of Louis Vuitton
Louis Vuitton has been operational for decades. Therefore, most customers prefer products from the house due to the good name. The products from the firm are well designed, and the stores selling the products are in convenient locations. The stores dealing in the products are eye-catching and properly arranged that attracts more customers (Vargo, Stephen & Robert 17). On the other hand, Louis Vuitton has remained relevant to its clients over the decades. In 2012, it was ranked the best luxury fashion brand. It emerged the best ahead of its top competitors for instance Gucci and Hermes.
Opportunities of Louis Vuitton
The advancements in technology are employed by Louis Vuitton to create more innovations. The generated innovations aid in promoting the firm’s goods that facilitate increased sales. Additionally, there is a growth in demand for luxury products in Asian countries. The increasing market in the Asian countries may increase the total sales that in turn results in more profit realized by Louis Vuitton.
Explain the role of the segmentation, targeting and positioning process
Segmentation, targeting, and positioning are terms used in the business field to show various stages for successful sales of products. The first stage, Segmentation, involves the identification of different groups of customers that exist in a given locality. The second stage, Targeting, includes the selection of a particular group of clients to serve. Finally, the third stage, Positioning, involves the implementation of the group by optimizing the products to that group (Palmatier, Robert, Rajiv & Dhurv 194). The process is important to Louis Vuitton as it enables the firm to recognize their ideal customers.
Identify and describe the criteria used to segment markets
To effectively segment a market, some considerations should be in place. For a successful segmentation, the market segment should be:
1) Measurable: The size of the market should be established so that the strategists could evaluate the kind of effort to be put in such a segment.
2) Substantial: It should be determined that the market segment has spending power. Additionally, characteristics of the segment should be defined.
3) Accessible: The market segment should be easily accessible so that products reach the market in time.
4) Differentiable: An efficient market segment should consist of customers who have relatively similar preferences. Distinguishing different market segments is essential.
5) Actionable: The market segment should have a practical value
Develop a profile of the typical customer in the target market using the segmentation characteristics identified above
1) Geographical profile: Clients can be identified based on their geographic location. For instance, Louis Vuitton products target the young the young people. Advertisements of the products should be done in social media as most of the young generation obtain more of information in social media.
2) Demographic profiles: Louis Vuitton should establish the characteristics of its customers, for instance, their age, income, and marital status.
3) Psychographic profiles: The firm should segment the market regarding the personality and lifestyle of the targeted market.
4) Behavioral profiles: It analyzes buying patterns of the customers and what changes that may affect the pattern.
Develop a positioning strategy
In developing positioning strategy involves brainstorming. The objectives of the firm should be identified. Ways to satisfy customers’ needs should also be identified. Also, possible challenges and their remedies should be established.
Marketing mix strategies
The prices should be relatively lower to boost the sales. Additionally, to obtain more profits, product promotion should also be employed.
Briefly, explain which of the four main marketing metrics you will use to measure the success of the marketing mix
To gauge the success of the marketing mix, the number of opportunities created should be employed. It is because increased number of opportunities created reflects the success of the product in the market.
In conclusion, for any business to be successful, there should be strategies to ensure the success of the firm. Louis Vuitton is an example of a company that has grown over the years as a result of right policies.
Luo, Xueming, and Chitra Bhanu Bhattacharya. “Corporate social responsibility, customer satisfaction, and market value.” Journal of marketing 70.4 (2006): 1-18.
Palmatier, Robert W., Rajiv P. Dant, and Dhruv Grewal. “A comparative longitudinal analysis of theoretical perspectives of inter-organizational relationship performance.” Journal of marketing 71.4 (2007): 172-194.
Vargo, Stephen L., and Robert F. Lusch. “Evolving to a new dominant logic for marketing.” Journal of marketing 68.1 (2004): 1-17.