To solve the problems caused by consumer behaviour and competition that lead to consumer loss and sales decline, there are several possible ways that can be taken into consideration.
The most direct way is to lower the prices. So, the company should implement the decision to sell the products at appropriate prices. It is well-justified action, as the organization might have lost a considerable percent of the target customers. As a consequence, establishing an average price was a strategic reaction to the external economic environment. Besides, changes in mindset will happen to some people.
They may shift to purchase general goods that are cheaper in price and with comparable quality. In such condition, competitors, like Zara and H&M, can strength their advantages in global market. Some other customers, especially the Asian, may turn to anther choice to buy counterfeit products. In this perspective, the financial crisis seems to provide a chance to the growth of counterfeiting industry.
The best solution to this problem is to monitor the market and take strict legal action against the people who are involved in counterfeiting. Besides, to reinforce their brand image, LV can uses celebrities’ endorsement as it strengthens the company’s reputation and encourages customers to buy. LV must aims to satisfy the customers’ needs. Exclusivity, creativity, precision, craftsmanship, innovation, premium pricing, and high quality are the main criteria necessary for choosing Louis Vuitton’s items.
Apparently, LV needs to find a new way of communication with the customer. With regard to the young generation, online-based shops would be a reasonable decision as long as Japanese young people are Internet-aware.Marketing Mix used by Louis Vuitton1.
Product: Louis Vuitton is a premium luxury brand that sells finest products. It makes 100% pure leather products and pays utmost care to not let be the designs and make of the product easily imitable. Louis Vuitton has consciously chosen to only make handmade products and not make machine made. The company hires finest craftsmen and ensures that the product is completely unique. The company registers all its designs and product to avoid imitation. Louis Vuitton makes finest bags, unique dresses, designer shoes, and exquisite watches.
They also have other range of products such as wallets, eyewear, jewelry, scarves, briefcases, belts, etc.2. Price:Louis Vuitton uses value based pricing in its marketing mix for its products.
Since customers perceive the company’s products as high value products, the customers are willing to pay the amount. Louis Vuitton pays special attention to the quality of the material, the designs and make of the products. Thus, the cost price of the products eventually goes very high. Since the target customers of the brand are elite and upper middle class customers, Louis Vuitton uses premium pricing policy to price its products. The brand and its product are a style statement and hence customers easily pay the exorbitant prices.3.
Place:Louis Vuitton ensures exclusive distribution channel. Their products are not sold at any departmental stores. The company believes in having their own stores. Louis Vuitton have their highly specialized sales persons trained to treat their customers with utmost care. They treat their customers with high warmth and provide personalised attention.
They have limited stores and hence the customer walks up to the store.4. Promotion:Louis Vuitton employs famous musicians, actors and models in their marketing campaigns.. Its primary source of promotion is print media. In cosmopolitan cities, magazines and billboards work the best for the company.
The exclusiveness of the brand is portrayed through fashion magazines that the elite class reads. Louis Vuitton does not use television as a medium of promotion primarily because it chooses to remain as a luxury brand and there by wants to be seen by a certain class of people. Thus it reaches out at its target audience directly rather than using multiple channels. Hence, this covers the Louis Vuitton marketing mix.