Marketing Paper

Submitted By Abercrom1
Words: 710
Pages: 3

LVMH Moet Hennessy-Louis Vuitton SA is an empire of over sixty upscale refined brands. This luxury focused company sold over twenty-four billion in 2008. Trying to sell you a dream, the status quo, or just a quality product this company can attend to your finer needs. Comprised of a vast selection of high-end goods such as: Fashion and Leather, Perfume and Cosmetics, Wine and Spirits, Selective Retailing, and Watches and Jewelry.
This company and all of subsidiaries are not concerned with average America. The 47% are not even thought of or brought up in meetings except how to keep their products out of their hands. Meaning these products are meant to make you feel elite, superior, and of worth. These products are highly counterfeited around the world and sold at average prices for average people not what Bernard Arnault wants. Spending over ten million annually just to keep them out of their hands. If you want it, buy it but buy the real thing it will make you feel much better than trying to be fashionable and fake. It also destroys the brands reputation when some trashy looking girl with no makeup in sweat pants, stained shirt, gas-station sunglasses, buying off brand everything because she cares really nothing of quality just the look has a Louis Vuitton hand bag on her side.
This is why market skimming is used as a pricing strategy. Price is half of reputation. People who are willing to buy unique product at a premium price are the ones being marketed too. The high pricing strategy limits the introduction of the product in the beginning making it more desirable hopefully to innovators and early adopters wanting to be the leading status quo of their network. In Japan and Hawaii prices are increased in peak times to increase profits whenever possible. In 2001 when the market didn’t look good with interest rates at all time lows and the stock market looking gloomy Louis Vuitton increased prices. Why? To make themselves desirable to let people make sure that they know this is luxury, this is your status quo and that they know you will buy it if you have the money whether you have to save or just have the money lying around because you want to dream because everyone wants to be something more than average.
Playing a 90-second commercial on TV to inform people about Louis Vuitton new corporate branding campaign to highlight the brand’s travel heritage was a wise move in my opinion. First off it’s a 90-second commercial, that’s three regular commercials. So obviously it costs more, it grabs your attention longer, and it’s like hanging a carrot in front of a horse to…