Page 318 - Marketing Management

CRAFTING THE BRAND POSITIONING | CHAPTER 10 295

Marketing Excellence problem very seriously because it feels that counterfeits
dilute its prestigious brand image. Louis Vuitton em-
ploys a full team of lawyers and fights counterfeiting in
>>Louis Vuitton a variety of ways with special agencies and investiga-
tive teams.
Until the 1980s, Louis Vuitton products were available
in a wide variety of department stores. However, to re-
duce the risk of counterfeiting, the company now main-
tains tighter control over its distribution channels. Today, it
sells its products only through authentic Louis Vuitton
boutiques located in upscale shopping areas and high-
end department stores, all run independently with their
own employees and managers. Louis Vuitton prices are
never reduced, and only recently did the company start
selling through louisvuitton.com in hopes of reaching new
consumers and regions.
Over the years, a wide variety of high-profile
celebrities and supermodels have used LV products,
including Madonna, Audrey Hepburn, and Jennifer
Lopez. In its marketing efforts, the company has used
high-fashion celebrities, billboards, print ads, and its
own international regatta—the Louis Vuitton Cup.
Louis Vuitton (LV) is one of the world’s most legendary Recently, LV broke tradition and featured nontraditional
brands and is synonymous with images of luxury, wealth, celebrities such as Steffi Graf, Mikhail Gorbachev, Buzz
and fashion. The company is known for its iconic hand- Aldrin, and Keith Richards in a campaign entitled “Core
bags, leather goods, shoes, watches, jewelry, acces- Values.” LV also launched its first television commercial
sories, and sunglasses, and is the highest-ranked luxury focused on luxury traveling rather than fashion and has
brand in the world. formed new partnerships with international artists, mu-
It was 1854 when Louis Vuitton opened his first seums, and cultural organizations in hopes of keeping
store in Paris and sold handmade, high-quality trunks the brand fresh. That said, Louis Vuitton still spends up
and luggage. In the late 19th century, Vuitton intro- to 60 hours making one piece of luggage by hand—the
duced his signature Damier and Monogram Canvas same way it did 150 years ago.
materials, featuring the famous design still used in most Today, Louis Vuitton holds a brand value of $26
of the company’s products today. Throughout the 20th billion according to Forbes and is ranked the 17th most
century, the company that carries his name continued powerful global brand according to Interbrand. The
to grow internationally, expanding into the fashion company is focused on expanding its luxury brand into
world by the 1950s and reaching $10 million in sales by growing markets such as China and India as well as
1977. In 1987, Louis Vuitton merged with Moët et continuing to grow in strong markets like Japan and
Chandon and Hennessy, leading manufacturers of Europe. It also continues to add new product lines to
champagne and cognac, and created LVMH, a luxury its portfolio.
goods conglomerate.
Louis Vuitton’s products are made with state-of- Questions
the-art materials, and its designers use a combination
of art, precision, and craftsmanship to produce only the 1. How does an exclusive brand such as Louis Vuitton
finest products. The legendary LV monogram appears grow and stay fresh while retaining its cachet?
on all the company’s products and stands for the high- 2. Is the counterfeiting of Louis Vuitton always a nega-
est quality, premium status, and luxury travel. Over the tive? Are there any circumstances where it can be
years, however, counterfeiting has become a huge seen as having some positive aspects?
problem and one of Louis Vuitton’s most difficult chal-
Sources: Reena Jana, “Louis Vuitton’s Life of Luxury,” BusinessWeek, August 6, 2007; Eric
lenges. Louis Vuitton is one of the most counterfeited
Pfanner, “Luxury Firms Move to Make Web Work for Them,” New York Times, November 17, 2009;
brands in the world, and the company takes the www.louisvuitton.com.