LOUIS VUITTON: The IMC Campaign

Erin Alleman Lindsay Huff Ashley Schuler Amanda Woodrow

THE MARKETING SITUATION

Louis Vuitton Moet Hennessy - owns over sixty global brands In 2009, Louis Vuitton spent over $687 million in advertising, making them the 58th largest advertiser Currently the leading luxury brand provider in the world

THE MARKETING SITUATION

Louis Vuitton Moet Hennessy Chairman and CEO, Bernard Arnault Sales have increased since the beginning of the recession Perfumes and cosmetics grew eight percent The watches and jewelry sector of the company increased 12 percent, which is said to be caused by other brands also in the Moet Hennessy Corporation No Vuitton bag has ever been marked down

$6,000,000,000 $5,145,000,000 $5,000,000,000

$4,000,000,000

$3,000,000,000

$2,000,000,000

Top Brands: Louis Vuitton, Fendi, Dom Prignon, Tag Heuer, De Beers

Top Brands: Yves Saint Laurent, Gucci group (Bottega Veneta, Balenciaga, Gucci), Puma
$2,575,190,782

$1,000,000,000

$Louis Vuitton Pinault-Printemps-Redoute (PPR)

Operating Income of LVMH relative to its primary competitor.

THE CELEBRITY AD CAMPAIGN

CAMPAIGN OBJECTIVES
Expand the target market Satisfy the emotional needs of current and prospective customers for status and luxury Increase revenue

CAMPAIGN OBJECTIVES
To refresh and reintroduce this 150-yearold brand Keith Richards as a rock music legend and Madonna as an international icon
targets a broader age demographic of their target audience

Personal needs (accomplishment, ego-building, selfesteem)

Social needs (status, esteem, acceptance by others, evidence of affluence)

Safety needs

Physiological needs (sex)

The PSSP hierarchy of needs as it pertains to the Louis Vuitton target audience.

THE TARGET AUDIENCE

Women of a non-specific ethnic group Between the ages of 25 and 55 It all comes down to status & flaunting affluence.

THE TARGET AUDIENCE

Demographic variables Geographic variables
age, race, gender, & income regions and size of state and or county No set state or county size more prevalent in larger metropolises interest in club membership shopping fashion media Achievements

Psychographic variables

Behavioristic variables
benefit expectations brand loyalty

SIX MAJOR STRATEGIES OF PRODUCT POSITIONING

Based on product features crme de la crme, highest quality & status Based on benefits, solutions or needs quality, status For a specific usage occasion everyday, work, clubbing, dinner out, school, work, etc. For a specific user category affluent men & women between the ages of 25 and 55, status and ego-oriented individuals Against another product playing up the benefits of owning a real Louis, rather than a competing luxury brand (they never name their competitors, they simply portray their brand as being in a league of its own) For product class disassociation comparing it to its direct competitors in the luxury industry

THE CREATIVE STRATEGY

Goal is to refresh and reintroduce a 150-year-old brand Use of celebrities for different age groups and genres It is also said that the campaign with Keith Richards, restates travel as the fundamental and defining value of Louis Vuitton, interpreting it as a personal journey.

THE CREATIVE STRATEGY

The celebrity campaign reinforces the idea that these luxury items are not necessarily intended for purchase by everyone. Celebrities are good symbols to use when trying to illustrate status. Celebrity advertising campaigns make consumers desire the status associated with the brand. Desire to branch out of traditional target market.

THE MEDIA STRATEGY

Main Objectives
define their luxury brand build a solid marketing foundation keep their audience engaged in the products

THE MEDIA STRATEGY

The celebrity handbag campaign of 20082009
Keith Richards, Madonna Word-of-mouth marketing

Use of traditional media vehicles

billboards First-time 90-second commercials Print Ads featured in popular magazines such as People, InStyle and Shape

THE MEDIA STRATEGY

Ultimate goal is to achieve brand resonance Louis Vuitton spent $687.3 million on advertising in 2009 (Marketer Trees 2009).

THE MEDIA STRATEGY

Brand monitoring
Discover the customers needs in real time on the social web Discover consumer sentiment and their media perceptions

OTHER COMMUNICATION PROGRAMS

The Social Media Use of creative designs, colors, and logo placement Facebook account 68,942 friends In-store marketing tactics Charity event celebrating the brands 150th birthday percentage of its sales donated to the American Red Cross

Figure 1: Emotion CurveLouis Vuitton Retail Store

EVIDENCE OF RESULTS
Still #1 in luxury industry Fashion and leather goods division accounts for thirty-five percent (35%) of the companys $8.4 billion total divisional revenue Sales in the fourth quarter of 2008 rose 6% to 7% Reputation has catalyzed its sustainability during difficult economic times

EVIDENCE OF RESULTS
High amount of brand recognition and brand resonance
cult-like circle to which Louis owners belong

The luxury industry has only been phased slightly by the sluggish economy Celebrity advertisements maintain favorable consumer perceptions Opening new boutiques

REFERENCES
"Luxe

Strategy: Luxury Brands Using Social Media". Fashionably Marketing. November 12, 2009 <http://fashionablymarketing.me/2009/10/luxury-brands-social-media-marketing-strategies/>. Scott, Lesley. "Fashion Tributes". November 12, 2009 <http://fashiontribes.typepad.com/fashion/2009/11/louis-vuitton-celebrate-150-years-of-fabulouswith- charity-bags.html>. Bowser, Jacquie. "OgilvyOne scoops Louis Vuitton global digital accout". Brand Republic. November 1, 2009 <http://media.asia/Newsarticle/2009_10/OgilvyOne-scoops>. "LVMH Moet Hennessy L.V. (LVMUY)." Wikiinvest. 2009. Web. 6 Nov 2009. <http://www.wikinvest.com/stock/Lvmh_moet_hennessy_L.V._(LVMUY)>. Wendlandt, Astrid. "WRAPUP 1-Hermes, LVMH bring relief to luxury sector." Reuters. 6 Feb 2009. Web. 7 Nov 2009. <http://www.reuters.com/article/rbssRetailDepartmentStores/idUSL62805520090206>. Gumuchian, Marie-Louise, and Mathilde Gardin. "Louis Vuitton "very optimistic" on Christmas sales." Reuters. 7 Oct 2009. Reuters, Web. 7 Nov 2009. <http://www.reuters.com/article/ousivMolt/idUSTRE5963VL20091007>. Marketer Trees 2009. Advertising Age. Web. 18 Nov. 2009. http://adage.com/marketertrees09/. http://stylenews.peoplestylewatch.com/2009/06/30/sneak-peek-madonnas-fallwinter-louis-vuitton-ads/ http://www.customerthink.com/blog/louis_vuitton_effective_experience Images courtesy of: http://dgimanagement.com/blog/wp-content/uploads/2009/07/louis-vuitton-madonnafall-winter-2009-ad.jpg, http://worldclassshitty.files.wordpress.com/2009/08/keith_richards1.jpg, http://earsucker.com/wp-content/uploads/2009/06/madonna_louis_vuitton_new_campaign_ad.jpg