When you hear LOUIS VUITTON,

what should come to your minds ?

 EXPENSIVE LUXURY

PRESTIGE
ELEGANT

FASHIONABLE GLAMOR
 LOUIS VUITTON BRAND

• Louis Vuitton Malletier company’s founder was born in

1821 in Anchay, Jura, France

• Established : 1854

• First Product : Flat Bottom Trunks with Trianon Canvas

• In 1885 the firm opened its first overseas in London,

England in Oxford Street
 LOUIS VUITTON BRAND

• In 1888 logo Marque Louis Vuitton deposee was created

• In 1896 George Vuitton created Monogram Canvas & attained
worldwide trademarks on it to limit counterfeiting
• In mid 1970s, Louis Vuitton had become the world’s biggest
luxury brand in terms of market share
• 1978 Vuitton opened first stores in Japan, Tokyo and Osaka
• October 2015 , revenue in Japan with 18% growth
 LOUIS VUITTON BUSINESS DIVISON

Fashion and Selective

Wines & Spirit
Leather goods retailing

Perfumes and Watches and

Cosmetics Jewelry
LOUIS VUITTON PRODUCT OFFERING
 JAPAN - A KEY MARKET
• Highest pro capita spending amount on luxury goods

• In 2006, Japanese tourists represented more than 80% of

Louise Vuittons Champ Elysees store sales

• Japan has the biggest amount of ‘middle class’ people

• Japanese women : luxury grants the “experience to be

served”

• Willingness to pay price 1,4 x from French price

 LV’S COMPETITORS

• Gucci

• Prada

• Chanel

• Dolce & Gabbana

• Hermes
 COMPETITIVE MAPS

• Japan has more than 10 luxury brands

• Main competitors : Prada and Gucci

- Well establish luxury brands to the high end market

• Brand positioning compared to another brand based

on prestige value
NUMBER STORES IN JAPAN
 ANALYZING CASE
LOUIS VUITTON IN JAPAN
• After September 11, 2001 Louis Vuitton suffered
from recession in demand in the Japanese market. As
a result, the company faces with political, economic,
environmental and legal challenges

• Louis Vuitton demands innovation and improvement

of marketing strategies to increase rate of cutomers
and profits. Declining sales and shifting consumers
preferences put the company under the threat
IDENTIFICATION
OF
ISSUES
• Internal problems : threat of subtitutes, power of
buyers, threat of new entry, competitive rivalry and
supplier power.

• External problems : politic, legal, economic,

environmental and technological challenges.
• Issue with special design : special design makes Louis
Vuitton bags easy for making counterfeit. Even the
company offers fraud products.

• Issue of internet shopping : online shopping is also a

way selling their goods. There are many customers
who complained about poor online services. Louis
Vuitton doesn’t provide qualitative products through
internet.
• Reaching the target market : target market of Louis
Vuitton includes people with high profits. However,
the prices of this company are so scaring that
customers refuse from buying their bags. They have
a stereotype that everything that is expensive is
qualitative.
• Increasing growth of competitors : increasing growth
of competitors also shifts customers aside Louis
Vuitton.
ALTERNATIVE
SOLUTION
1. Review prices
High pricing doesn’t always prove about high quality
of the item and brand name.
2. Satisfy the customers needs
It’s important to explore the customers interest in
order to create suitable items for them. There
shouldn’t be negative remarks and feedbacks from
the customers.
3. Open stores in small city in Japan

It’s well grounded decision, it will eliminate

the dependence upon the tourist flow.

4. Collaborate with competitors

Bulgari, Coach, Chanel and Gucci represent the key

competitors within the Japanese market. Louis Vuitton

will manage to survive through proactive behavior of the

competitors.
RECOMMENDATIONS
• Recommend first alternative because the company
should implement the decision to sell the product at
appropriate prices. Its well justified action, as the
organization might have lost a percent of target
customers. Establishing an avarage price was one of
strategic reaction for economic environment.
• Recommend second alternative because crativity,
precision, innovation, premium pricing with high
quality are the most important things for choosing
Louis Vuiton. It needs to find a new way of
communication with target audience, online based
shops would be reasonable decision as long as
Japanese market are internet minded.
• Recommend third alternative because it concerns
widening of the target market.

• Recommend fourth alternative because the way of

reinforcing of strengths borrowing something in the
competitors and overcoming weakness.
-THANK YOU-