Luxury or Luxus comes to mind when we here of Louis Vuitton. Louis Vuitton started as a handmade leather bag unit and later expanded into leather accessories. The brand is targeted to Super rich customers in the world, be it in Europe, America and Asia.
Background: Louis Vuitton was started in 1854 in Paris. The company flourished during the era of rail and ship expansions. It soon opened up new stores in London, UK. Louis Vuitton remained as single product brand till 1987. In 1987, Louis Vuitton merged with Moet Hennessy, a French wine maker of 1743 to form the LVMH group.
LVMH went on acquiring brands and till 1990 it had around 60 brands under its belt covering products in four different business segments: wines and spirits, watches and jewellery, perfumes and cosmetics, fashion and leather goods. Louis Vuitton Travel brand is still one of the flagship product which brings more than 50 percent revenue for the company.
Product and Services: Louis Vuitton at the beginning had just the leather bag as the only product but after seven decades it expanded and went on to acquire new brands and beautiful men and women luxury accessories in leather segments and perfumes and cosmetics. It has products like handbags, iconic bags, travel bags, small leather bags, accessories, shoes, ready to wear, timepieces, jewellery, books and stationary and monograms
Identification of Problem:
The problems that Louis Vuitton was facing are
* The marketing of high end brand in a low income nation.
* Identifying the target customers
* The lack of media to build its brand
* The absence of high streets to open stores.
* How does the luxury brand deal with changing customer profile and concept of luxury?