Kotler, P. (2003).
Positioning and Differentiating Break Free From the Product Life CycleYoungme Moon Harvard Business ReviewSummaryA company must differentiate itself from others during the product life cycle by creating an image that demands attention and fosters unique brand awareness. Louis Vuitton is a company that continuously rejuvenates itself and has maintained a highly coveted brand for 150 years. A $1, 000 monogrammed Louis Vuitton handbag is in such demand that it has spawned a multi-million dollar market of counterfeit products, most commonly referred to as “knock-offs.” The demand is so high for these knock-off products that LVMH Moet Hennessy, owner of the brand, has a special team that works with international police organizations. Last year there were 6, 000 raids by police, resulting in the arrest of nearly 1, 000 counterfeiters (LV, 2005).
The LV logo has become an icon in the designer luggage, handbags and accessories market. The words Louis Vuitton are the code for describing an internationally recognized and exclusive fashion empire. LVMH Moet Hennessy’s target market is aimed at women aged between 18-35 who have a love of fine design, and the taste for tradition and luxury. Louis Vuitton has maintained its lead in fashion through clever advertising in magazines like “Vogue” with print ads that focus on LV logo products as chic. In recent years the company has expanded is product line into ready-to-wear, shoes, watches and jewelry. Since 1998, Marc Jacobs has provided the artistic direction to develop and market these new collections.
The Essay on Ansoff's Product Market Grid
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
Tapping actress / singer Jennifer Lopez as a model was another key move in skewing younger and getting some zest in print ads. Clearly LVMH Moet Hennessy’s market strategy is its high-quality and high-priced image which is promoted via elaborate packaging, exclusive distribution, and status symbol advertising. This ability to differentiate themselves from the crowded designer marketing place is why they continue to be highly successful and have significantly extended the product life cycle. Relationship/Reference to the Text Our text discusses the product life cycle and how companies must position and differentiate their market offerings throughout the cycle. Young me Moon points out “there’s nothing inevitable about the product life cycle.
Marketers are disrupting it by redefining the boundaries between product types. In the process, they ” re rejuvenating categories and creating whole new markets (Moon, 2005).” A great example of this is Louis Vuitton, a trunk-maker in Paris since 1854, who became a legend in the art of travel by creating luggage, bags and accessories as innovative as they were elegant and practical. A century and a half later, the LV logo lives on. Strengthened by its international renown, Louis Vuitton is personified by the Monogram canvas product line, which has enjoyed great success since 1896 and played a key role in the development of modern luxury. Innovation shapes the story of Louis Vuitton and how they have reinvented themselves time and again. Why are designer brands like Louis Vuitton so coveted? Designer branding is deeply anchored in psycho-sociology; it takes into account both tangible and intangible attributes, e.
g. , functional and emotional benefits. Therefore, those attributes compose the beliefs that the brand’s customers recall when they think about the brand in its context. Image psychology plays an important role in Louis Vuitton’s Vogue magazine advertisements.
For example, a recent two page ad shows a blonde woman very smartly and immaculately dressed and carrying luggage. She appears to be boarding a train at a deserted train station with a mountainous background. The woman covers most of the right page, which also features the brand name Louis Vuitton, whereas the left page shows the rest of the train station platform and reference that the products the women is wearing is sold exclusively in Louis Vuitton stores. In short, the ad is intended to point out that by using and wearing Louis Vuitton leather goods, shoes and accessories, the woman is making a statement, one which connotes a classy and chic lifestyle.
The Term Paper on Product life cycle and its stages
In today’s world, where market is unpredictable, strategies play crucial role in defending a firm’s product position. “The main reason why companies must continually develop new products is because products have life cycle”, (Bittel, 1980). Just as operation managers must be prepared to develop new products, they must also be prepared to develop strategies for both new and ...
In addition, that the woman is successful, mature and sophisticated (Vogue, 2003).
LVMH Moet Hennessy has also used events and sponsorships to build its brand image. The main ones are the Louis Vuitton Classic, which is an annual automobile collector’s event, with cars from all over the world. Another is the Louis Vuitton Cup, which decides the challenger for the America’s Cup, the most prestigious trophy in international yachting. Both of these events focus on high quality with an international theme, which clearly is the brand awareness that Louis Vuitton promotes (LV. 2005).
Louis Vuitton continues to focus on a niche lifestyle brand known around the world for creating luxury travel trunks and leather accessories for the well-to-do. By offering consumers a fresh take on its core product and by broadening the brand’s scope of business, the 150-year-old brand has an image that drips luxury. With new product lines focused on the younger generation and the Asian-Pacific market, there seems to be no end to Louis Vuitton’s product life cycle (LV, 2005).
Personal Opinion/Conclusion While I admire Louis Vuitton’s ability to thrive in the designer products market for 150 years, I find it sad that our society is so shallow. Vanity and judgment are two of the most symbolic words suitable for modern shoppers. Everything in the atmosphere of fashion is based on looks, and how much one is willing to spend on attire.
Oftentimes, the more money one spends, the more superior he or she is considered. It is conceived that one’s possessions are signs of personal identity, and most times, this dictates how one is treated. When one sees a women with a Louis Vuitton handbag, there is an immediate reaction that the person is affluent and sophisticated (assuming it’s not a knock-off).
The Essay on Marketing Info Increase Product Brand
C 336 Integrated Marketing Communications 5 A Media Select on Strategies and Budgets Exposure Neverfail have used the following mediums to expose our target audience with our brand name: - Official Website - Print - Poster/Banner Ads on the side of our vehicles As we are planning to explore untapped markets, we plan to implement radio ads in these areas. Creative strategy Not sure whether we " re ...
However, is it practical or even sane to spend $1, 250 for a LV logo diaper bag, when you can buy a decent brand for ~$50 at Target or Macy’s? Will the near perfect counterfeits cheapen the brand and cut into sales to the point that Louis Vuitton won’t last another 150 years? These are the challenges that LVMH Moet Hennessy faces as the Louis Vuitton product line continues through various life cycles. But with strategies like promoting “junior” leather goods and other items at Neiman Marcus department stores, it seems Louis Vuitton continues to find ways to train the next generation of consumers (2005).
Branding is 100% human emotion and everything else is just dressed up as rationality to give people permission to act on their emotions.
Women (or their spouses — like me) are not buying a Louis Vuitton hand bag, they are buying prestige and the ability to demonstrate to others they are different and have achieved a certain level of status. Some will call it the snob factor, others just chic taste. Regardless of your social views of designer products, Louis Vuitton continues to differentiate themselves in the designer market. It constantly looks for ways to extend the product life cycle through innovative new products and advertising strategies to keep the brand highly recognized and coveted.
References Kotler, P. (2003).
Positioning and Differentiating the Market Offering Through the Product Life Cycle, Marketing Management, pp. 307-343 Moon, Y. (2005).
Break Free From the Product Life Cycle Marketplace Harvard Business Review, May 2005, pp.
87-94 Vogue (2003) web Alexandria: FPC Living Louis Vuitton Magazine Online (2005).
web.
