Prestigious and Luxury brands such as Gucci, Louis Vuitton and Vertu represent the uppermost level and form of craftsmanship. They demand and hindercustomer loyalty that is not affected by trends. These brands set seasonal trends and are capable of generating consumers, wherever they are established.
In luxury marketing, there is a delicate relationship between 4 factors that most strongly influence the purchase of the luxury consumer. They are the exclusiveness of the brand, the reputation of the brand, forms of distribution and price/value affiliation. Exclusivity cannot always be ensured due to immense competition. But by consequence, it is not the key requirement ...view middle of the document...
There are many threats the fashion industry faces on a large scale. One of the main issues is counterfeiting. The report discusses many other impending risks and threats and how the three brands can counter attack them. Furthermore, it suggests theories and practices on how the three brands can sustain their aura of exclusiveness and fashion status.
Finally, the report is concluded with a conclusion and recommendations on how to solve problems; one of which is counterfeiting.
Luxury brands are an innovative concept both from the perspective of a marketer and the consumer.
This case study specifically discusses and analyses the three brands i.e. Gucci, Louis Vuitton and Vertu. It contains information about their histories, products, business strategies, expansion strategies and more.
This report will aim to criticise and discuss the key factors that help in maintaining their exclusivity, the global Marketing strategies they have put to practice and its pros and cons, how the three brands can maintain their aura and fashion status and finally a conclusion with recommendations on areas of improvements.
Creating a luxury brand or product is a complex marketing task. The key success factors that impact on the exclusivity of a product or service are ; The brand image
Quality of service
The management structure of the company
Product range, Aesthetics and prestigious pricing.
(Carrol_ C, Hurley K, Treacy A: Case Study: Gucci, LV and Vertu)_
All these and many other distinctive/ unique factors help in creating the brand image and add to the exclusivity of the brand.
Gucci, LV and Vertu may want to go global to build a more brand and shareholder value, diminish reliance on their respective home countries, influence or leverage the active corporate technology, investing in growing markets to add revenue sources and more. Other factors or problems that impact whilst globalising LV, Gucci and Vertu are the unsteadiness in emerging markets, the change in consumer trends and purchasing behaviour, the economic slowdown, competition, management of global relationships and more. If Gucci, LV and Vertu were to expand in international markets Labour laws and taxations can be a problem too. For example, In Indonesia there many corporate tax implications i.e. extra corporate tax fillings. If the three brands wanted to expand in Israel the law would only permit them to do so if they had an Israeli joint partnership (www.primacy.com).
Other exertions that may arise if Gucci, LV and Vertu went global are the laws and regulations of the country, tariff costs, control and limits on exports, ensuring high levels of standards while producing goods in all countries and standardising them, technology and more. For example, if Vertu was to extend its market and go global they would have eventually had to open more factories....