Essay on How Has LVMH Keep A Strong

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Pages: 13

How Has LVMH Keep a Strong Brand?

The Luxury Brand of the World

Danielle Nelson

Madonna University

Table of Contents

Introduction 3
History of Louis Vuitton 3
Brand Equity 3-4
BrandAsset Valuator 4
Brand Element 4
Louis Vuitton Group Mission 5
Brand Community 5
Brand Management 5-6
“House of Brand” 6
Brand Extension 6-7
Customer Equity 7-8
Brand Positioning 8-9
Brand Mantra 9
Differentiation Strategy 9-10
Brand Stories 10
Competitive Strategies 10-11
Economic Downturn 11
Conclusion 12

How Has LVMH Keep a Strong Brand?

The Luxury Brand of the World

The brand Louis Vuitton is recognize all over the world. When it comes to building a strong brand Louis Vuitton has succeeded. Louis Vuitton has proven they can create brand equity, manage brand equity, establish brand positioning and deal with competitors. Louis Vuitton moved to Paris at the age of 16 in 1837. He worked for a trunk maker for 17 years before he opened his own shop. Traveling back then was rough so people’s precious belongings had to be secured in a durable piece of luggage. Louis Vuitton workshop was very successful and he expanded in 1859. The new workshop had 20 employees and Louis Vuitton home was attached to it. To this day there are 170 craftsmen that design and create. Today Louis Vuitton has workshops all over the world he has several in the United States. Louis Vuitton trunks were very durable but there was an issue with theft. In 1886 his two sons patented an unpickable lock. A challenge was made by the Vuitton brothers to see if Houdini could escape their trunk. Houdini did not except the challenge and the same lock is used today. 100 plus years later Louis Vuitton is a strong brand. A brand is a name, term, sign, symbol, or design, or a combination of them to identify the goods or service of a company and to distinguish them from competitors. (Kotler & Keller, 2012) Now we know the LV monogram is recognized all over the world as a symbol of luxury. Louis Vuitton has accomplished the definition of a brand like no other company. The next level of a brand is brand equity. Brand equity is added value endowed on products and services. Brand equity can be the way consumers think, feel, and act with respect to the brand. (Kotler & Keller, 2012) Walking into the Louis Vuitton store two years ago and purchasing my first handbag was joy. I remember walking out of the store at Somerset Mall and thinking I had made it to the next level. But the experience is ongoing, now I have three Louis Vuitton handbags and every time I pick them up and swing them on my shoulder I feel special. Louis Vuitton has favorable customer-based brand equity with me. According to BAV (BrandAsset Valuator), energized differentiation-Louis Vuitton has new products every year with a new theme to showcase the products. Relevance-Louis Vuitton has made it clear that there brand is a luxury brand with a history of consistency and authenticity. Esteem-Louis Vuitton customers believe there products are of top quality and respect the company as a top luxury brand. Knowledge-Louis Vuitton is a well-known international luxury brand. The initial LV is known all over the world. (Kotler & Keller, 2012) Louis Vuitton uses several choices to build brand equity: the name Louis Vuitton, the initials LV, the Louis Vuitton website, and celebrity spokespersons. Louis Vuitton uses their LV monogram as…