What is Louis Vuitton's target audience?
More specifically, Louis Vuitton targets the following two segments: wealthy middle aged women from 35 to 54 years old and affluent young fashionable female adults aged 18 to 34 years old who have disposable income and are brand aspirants.
Louis Vuitton uses value based pricing in its marketing mix for its products. Since customers perceive the company's products as high value products, the customers are willing to pay the amount. Louis Vuitton pays special attention to the quality of the material, the designs and make of the products.
Founded at the dawn of the modern travel era, Louis Vuitton is on a perpetual mission to explore new horizons, propelled by an innovative spirit, boundless creativity, and unparalleled savoir-faire.
Therefore, Gucci's target market has primarily included celebrities, the wealthy, fashionistas, and the upper class. the target market has now been expanded to include the middle and upper middle class to make it more affordable for the middle-class women.
Hermes's target customers are both young adults and teenagers who love fashion. Their customers look for high quality, good features, and wonderful after sale services in Hermes's products. The buyers of Hermes have high incomes so they do not seem to care about expensive prices.
Apple's Target Market
The main target market for Apple's products includes middle and upper-income consumers who are capable and willing to pay a higher amount after being enticed by a better user experience.
LV follows a differentiation strategy based on the generic strategies model where it develops high-quality products and sells them at a high price. Its products are luxury-oriented and include leather bags and accessories (Mahbubani 4).
This logo was widely recognized as the brand's corporate identity in 1896. The design depicted a Japanese-inspired flower motif, chiefly created to prevent any duplicity of the Parisian company's designer luggage. This iconic LV logo has now become synonymous with class, comfort, grandeur and luxury.
The industry structure is an oligopoly where a few large luxury groups dominate the market. The dominating firms are LVMH, Richemont and Kering. The companies operate in a decentralized manner, where the brands are working independently of each other even under the same company.
The secret to success? Louis Vuitton doesn't bother with marketing; instead, they just create exceptional products that boast world class craftsmanship and a lifelong guarantee. Every bag, wallet or belt made by Louis Vuitton is individually handmade with the utmost care.
Which brands use market segmentation?
- Volkswagen. The Volkswagen group is an excellent example of how market segmentation allows a brand to appeal to very different groups of people. ...
- Coca-Cola. When it comes to understanding a broad customer base, few brands are as effective as Coca-Cola. ...
- Kellogg's.
Bases of Market Segmentation – 4 Main Bases: Geographical, Demographic, Psychographic and Behavioural Segmentation.
According to UBS, Louis Vuitton made about 33% of its profits to consumers aged 21 to 37 years.
Quality craftsmanship, heritage, and history are key factors of success for the luxury brand. The LOUIS VUITTON brand and the famous LOUIS VUITTON monogram are also among the most valuable brand that creates competitive advantages. Japanese consumers are among the world's biggest…show more content…
The LVMH group places priority on organic growth and commits significant resources to develop its Maisons, as well as to encourage and protect creativity. Our people are key to this approach, making it essential to support their career growth and encourage them to excel.
Ever since they hit the current market, Louis Vuitton handbags have been sought after for their fine craftsmanship and unmatchable aesthetic appeal. The luxurious handbags are the international standard in baggage, the suitcases and bags out of which others are compared.
The label's LV monogram appears on most of its products, ranging from luxury bags and leather goods to ready-to-wear, shoes, watches, jewelry, accessories, sunglasses and books. Louis Vuitton is one of the world's leading international fashion houses.
A target customer is an individual that's most likely to buy your product. And it's a subset of the broader target market. For example, if your target market is female athletes between the ages of 13 to 25, a target customer could be female athletes in the specific age range of 13 to 16.
Examples of demographic segmentation include age, income, family size, education, or gender. Dive into these segments to cut down on time and resources to understand your target audience. Or tap into potential consumers that you have yet to reach.
Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types.
How do you attract more customers?
- Offer new customers discounts and promotions. ...
- Ask for referrals. ...
- Recontact old customers. ...
- Network. ...
- Update your website. ...
- Partner with complementary businesses. ...
- Promote your expertise. ...
- Take advantage of online ratings and review sites.
The selection of potential customers to whom a business wishes to sell products or services. The targeting strategy involves segmenting the market, choosing which segments of the market are appropriate, and determining the products that will be offered in each segment.
According to UBS, Louis Vuitton made about 33% of its profits to consumers aged 21 to 37 years.
Gucci is another well known name in the world of luxury fashion and a leading competitor of Louis Vuitton. The brand is known for its modern and innovative approach to fashion. It has been named after its founder Guccio Gucci, who founded the brand in 1921.
As implied by Gucci's segmentation, its target market is the high-status, high-income, and middle-aged employed consumers. Their customers have prestigious lifestyles and belong in high social classes, including celebrities, politicians, and other representatives of high-paying professions.
Louis Vuitton's idea of travel is in fact rather philosophical – it's about the journey, not the destination. This concept was verbalized in one of the brand's campaigns: “Return to a time when travel itself was a destination, getting there was not as important as the experience of going.
UBS Groups' survey revealed that Chinese millennials are responsible for the purchase of 30 percent of the world's luxury goods. American consumers of the same age account for 23 percent, and European millennials command 19 percent of the market, followed by Japanese consumers with 11 percent.
In The RealReal's 2021 Luxury Resale report, Gen Z was the demographic with the largest buyer and consignor growth at 33% and 86% year-over-year, respectively. Eyeing the opportunity, luxury brands are increasingly seeking the favor of Gen Z consumers, a demographic they've historically ignored.
Louis Vuitton is currently ranked as the world's No. 1 luxury brand, with a brand valuation topping $30 billion, While Gucci is ranked at No. 4 luxury brand.
1. Strong and well-known luxury brand with global presence: It is one of the most well-known fashion boutiques in the world with more than 160 years of history. The brand is easily recognizable because of its logo and monogram canvas on most of its products.
How does Louis Vuitton have a competitive advantage?
Quality craftsmanship, heritage, and history are key factors of success for the luxury brand. The LOUIS VUITTON brand and the famous LOUIS VUITTON monogram are also among the most valuable brand that creates competitive advantages. Japanese consumers are among the world's biggest…show more content…
Louis Vuitton doesn't do marketing; they just create products that are exceptional in their design and craftsmanship. Every bag made by Louis Vuitton is individually handmade with the utmost care. And even though the company now operates on a very large scale, they still know how to maintain that small company feeling.
The brand launched its first global tagline, Quality is remembered long after price is forgotten.
In the first half of 2018, Gucci's sales nearly doubled. And 55% of those sales were made to consumers under 35. Considering how 18- to 35-year-olds contributed to an 85% growth in the luxury-goods market in 2017, this is a big deal. Jessica Tyler: Millennials definitely matter in the luxury market.
This logo was widely recognized as the brand's corporate identity in 1896. The design depicted a Japanese-inspired flower motif, chiefly created to prevent any duplicity of the Parisian company's designer luggage. This iconic LV logo has now become synonymous with class, comfort, grandeur and luxury.
Elegant, subtle, comfort and classy are the personality traits that define this brand. It also cultivates within an individual an entrepreneurial spirit while leaving behind a hint of traditionalism. If you like a beautiful blend of heritage with modern innovativeness, Louis Vuitton is the brand for you.
At its simplest, brand positioning is the process of setting your business apart from your competitors in a way that builds preference for you among your target audience. Its goal is to associate your firm with an idea or category in the minds of people who might buy your services.
