Louis Vuitton Case Study
The LV brand is most recognizable for its logo, quality, uniqueness and price. It resonates a sense of prestige, quality and longevity in the minds of the consumer and in the fashion world.
Previously tailored to the more affluent social strata, LV is now tapping into a more youthful middle class demographic by setting new trends in global high fashion.
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As a result Louis Vuitton is feeling the negative impact. This strategy aims to maintain market share.
The courses of action proposed in the case each have their strengths or weaknesses.Firstly, the rental of bags proposed, may have a negative impact to the Louis Vuitton brand. Since LV is a luxurious, high end brand, renting of these bags may cheapen and devalue the power of the LV brand. Luis Vitton bags are targeted to the elite and prestige and because of the price only they can afford to wear them. If renting is implemented this means that almost anyone can wear a bag for a period of time. Consequently, the brand image will falter as it will no longer be considered luxurious and exclusive.
Secondly, Targeting the Aging population could be seen feasible, however, while this target market in Japan is constantly growing, there is no absolute assurance that this target market will always be successful. Therefore, this action should be thoroughly scrutinized as there is room for growth and success but must be mindful of the possibility that older individuals may or may not purchase the LV brand. In this instance, the LV Company can take into consideration of Japan’s cyclical market. Since this is based on past trends, evidence shows periods of high buying and periods of low spending.
Another action taken by LV is opening to Mid- Size market. This can be a successful strategy since it will tap into new