Lv Case Study
Exclusive distribution may limit its presence, limited coverage and network Huge investment on staff training Louis Button adopted ‘big store’ strategy In China, focusing on “Inland expansion”.
Recently, It slows the expansion In China. Reasons may include the lack of well- trained sales force, and diffusion of brand Image by the widely availability. Moreover, it adopted a differentiation strategy, to separate Chinese consumers into 3 categories. The three segments are: aspirations buyers, male customers, and shopping for gift giving purpose.
These different profiles determine how they would emphasize on different appealing factors. 2 After your visit to “Louis Button Manson” at Plaza 66, please list the pros and cons Of such an investment for such a well-known brand as Louis Button.
Pros The Manson would be impressive and possibly it would be a destination itself to most people, help to give a comprehensive artistic and cultural presentation of the brand: the heritage, brand Identity, and range of products. Inside the Manson, they set up a workshop, where they showcase the procedures to customize the product.
This is would put emphasize on the craftsmanship they have ND value. For a new Louis Button customer, the Manson would introduce them to the history, enervate Ana Dragon unless AT Lolls Fulton. Shopping experience at Manson would make customers feel more exclusive and valued, therefore enhances the brand image.
It has the best location possible, helping to promote the brand as a Cons High fixed cost. The investment for building a Manson is huge: the infrastructure to build, the recruitment and training of the staff, and the cost for maintenance. Moreover, it is also more challenging to do in-store retail operation management.
The layout and the product display is basically the same from other stores, might create a “deal v” feeling for the consumers, and this would be tiring and repetitive. 3 “Right now, Louis Button is the dominant player but they are going to have massive problems in the coming five years as people start to buy their second or third luxury handbag. After you’ve bought Louis Button or Gucci, do you go back to Louis Button and Gucci or do you try something different? “. They commented that Luxury brands growth needed to be managed in order to retain its long-term value. Our paradox is owe to grow without diluting our image”, said Carlyle, CEO of Louis Button. What recommendations would you give Yves Carlyle in order to manage this paradox and to deal with the counterfeit of LB products in China? 0(Please be very specific in your suggestions) First of all, any brand loyalty from a customer and a brand involves a personal connection between the two. LB could put great emphasize on building a personal, significant, and long-lasting link to the customers. This might involves personal care for every customer, this caring may not be expensive, but has to be thoughtful.
For example, offering customized products catering to the specific requirements to PIP customers. For example, if there is a family who prefers to use photos to record every important family moment, LB can offer to make personalized family photo album, with the leather and decorations of choice. By demonstrating the thoughtfulness of the brand and the superior craftsmanship, this would differentiate LB from others brands. When it comes to celebrate special family moments and needs, LB is the only brand they will go to. “Louis Button is the leading name in luxury and style.
With its outstanding quality, its exceptional beauty, Louis Button offers for the customers of the world only the best of the best. Louis Button is also a great showcase, reputation and pride for France. ” Second, from a long-term perspective point of view, customer service is one of the most important factors to determine if customers are in favor of the brand or not. I nerve Is a survey snows want ah customers Like ten lease at Lolls Fulton. From the chart we can conclude that bad service attitude and product quality is the main reasons that hinders customers from buying from the brand.
Other major reasons include the poor shopping environment, aggressive service, and incomplete product range.
There is a saying that goes, you can forget what people say to you, but you cannot forget how they make you feel. I believe this is also true when it comes to customer service. Customers would not remember what you said at the moment, but they would always remember if the sale staff was friendly/helpful or not. Moreover, luxury retail is all about the service, if the staffs fail to delivery or be a good brand ambassador, it is a direct damage of the brand. LB should focus on training the sale staff to be hospitable all the time.
The standard should be trying to be thoughtful towards customers, manage to create WOW moments, and to offer unexpected service/help.
Thirdly, in order to be a legit luxury brand that represents personal taste, LB should emphasize on the artistic and historical side of the brand, and associate brand with lifestyle, one that our targeting customer would relate to. In an article on how luxury retail should assemble the charisma through art and magic, they suggests, “Here, brands try to impose their offerings on the market not y responding to customer demand, but by developing an aesthetic ideology that can be diffused to the consumer.
The aim is that the bewitched consumer becomes a willing adorer. He or she becomes receptive to the codes of taste, beauty and fashion that are proposed because this is the way that the creative director, at once creative artist and magical being, has defined these codes. ” For many people, the first LB bag one purchased may represent personal achievement and upgrade of society level, the second and the ones purchased later should represents personal value, taste and personal association with the brand.
One of the reason why LB never do promotions is that they don’t want to dilute and tarnish the brand by discounted products. However, this solely is not enough. In order to show consistency in brand offerings, LB should carefully choose brand ambassadors and link itself with cultural events. A great example is the Louis Button exhibition that took place years back in Beijing National Museum. Although some questioned the legitimacy for a commercial luxury brand hosting cultural exhibition in a Chinese national museum, it did get people curious and thinking.
Overall, this vent elevated the brand image to a cultural and noble level, and it is a good promotion for the brand without showing much marketing purpose. Since this is the first time that any luxury brand host an official cultural exhibition in China, LB therefore successfully became the brand that has the highest brand awareness and media coverage. No matter It Is ten art AT traveling or ten art AT living, teeny are all auto a cert. lifestyle that is beyond the superficial purpose of showing off. If people buy luxury for just showing off, they would tend to be influenced heavily by what is new and popular.
Since there is no way to compete with every luxury brand for having the newest product, as this changes randomly. If LB promotes itself as a brand that represents certain lifestyle, more people would associate with this value and more people would have the aspiration of live up to this life style. To conclude, in order to make people buy again at Louis Button, the company should focus on developing the brand towards a brand that has a deep associate/link with Chinese consumer profile and their value. Making the brand the “standard brand” that they look up to when it comes to aesthetic and cultural aspects.