CONTENTS

CHAPTER PAGE NUMBER

CHAPTER -1 INTRODUCTION
 OBJECTIVES OF THE
STUDY
 SCOPE OF THE STUDY
 METHOLOGY
 CHAPTERISATION

CHAPTER – 2 COMPANY PROFILE

 GENERAL PROFILE
 FUNCTIONAL PROFILE

CHAPTER – 3CONCEPTUAL PROFILE

 THEORETICAL ASPECTS OF THE
CONCEPT
 APPLICATION OF THE CONCEPT
IN THE COMPANY

CHAPTER – 4 DATA INTERPRETATION

AND ANALYSIS

CHAPTER–5
SUMMARY&SUGGESTIONS
ANNEXURES

BIBLIOGRAPHY
 CHAPTER – 1

INTRODUCTION
The first few words that usually pop into a person's head are 'marketing equals sales!' Marketing
is NOT just personal selling or even just advertising. Most people define marketing in a very
limited way. Marketing includes activities such as public relations, sales promotion, advertising,
social media, pricing, distribution and many other functions.

Companies have increased their marketing budget's dramatically. For example, it is estimated
that companies spend over 15 billion dollars annually on marketing to JUST KIDS. This is an
increase of over 2.5 times more than they were spending in 1992. The cumulative function of
marketing is to communicate, deliver and create value to the consumer. In addition, companies
must take into consideration their employees, stakeholders and society. The most successful
companies around engage in very consumer-oriented marketing. They spend enormous amounts
of time, money and resources examining the everyday lives of their customers and create
products to fill a need. Examples of companies that are known for creative, leading-edge
marketing are Disney, Pepsi, Apple and Procter & Gamble.

Advertisement (ad) is an efficient and effective technique to promote goods, services, and ideas.
It is a paid form of non-personal communication wherein business information is made available
for potential customers.

Advertisement, is derived from the Latin word “Advertere” which literally means “to turn the
minds of towards”. Advertisement promotes and supplements selling of products, services, and
ideas to a great extent. The most interesting part of an advertisement is – it carries factual
information with fascinating emotional appeal. Hence, without a proper advertisement no
business can prosper.
The study of consumer behaviour (CB) is very important to the marketers because it enables
them to understand and predict buying behaviour of consumers in the marketplace; it is
concerned not only with what consumers buy, but also with why they buy it, when and where
and how they buy it, and how often they buy it, and also how they consume it & dispose
it.According to Professor Theodore Levitt of the Harvard Business School, the study of
Consumer Behaviour is one of the most important in business education, because the purpose of
a business is to create and keep customers.

Customers are created and maintained through marketing strategies. And the quality of
marketing strategies depends on knowing, serving, and influencing consumers. In other words,
the success of a business is to achieve organisational objectives, which can be done by the above
two methods. This suggests that the knowledge & information about consumers is critical for
developing successful marketing strategies because it challenges the marketers to think about and
analyse the relationship between the consumers & marketers, and the consumer behaviour& the
marketing strategy.
OBJECTIVES OF THE STUDY

 To study about the Post-purchase behaviour of Louis vuitton products.

 To find the expectation of customer’s desirable or wishful factors in future they want in
mall.
 To find out the customers perception towards Louis Vuitton products.
RESEARCH METHODOLOGY

RESEARCH

Research is a scientific and systematic search for pertinent information on a specific topic.
Research comprises defining and redefining problems, formulating hypothesis or suggested
solution, collecting, and evaluating data, making decisions and reaching conclusions to determine
whether they fit the formulating hypothesis.

RESEARCH DESIGN

A research design is simply the frame work or plan for a study that is used as a guide in collecting
and analysis the data. It is blueprint that is followed in completing a study.

According to Ker linger research is the plan structure and strategy of investigation conceived so
as to obtain answers to research questions and to control variance.

COLLECTION OF DATA

Data refers to information or facts. It includes numerical figures, descriptive facts, and qualitative
information. The task of data collection begins after research problem has been defined and
research plan has been decided. The nature if the data is classified into two:

1. Primary data
2. Secondary data

PRIMARY DATA
Primary data is one which is collected by the investigator the first time. Primary data were collected
through questionnaire and direct personal interview. The questionnaire was framed as such a
manner to obtain correct information, graded suitably for the study. All questionnaires were
distributed to respondents. I even contacted few respondents through telephone and got the results.

SECONDARY DATA

Secondary data is refers to the statistical material which is not originated by the investigator
himself but from someone else. This type of data generally taken from newspapers, journals.
Magazines, bulletins, reports etc.

SAMPLE SIZE

The sample size considered for the present study is 100.

RESEARCH INSTRUMENT

The research instrument used in this study structured questionnaire. Structured questionnaire are
those questionnaire in which there are predetermined question relating to the accepts for which the
researcher collect data. The questions are presented with exactly the same wording and in the same
order to all the respondents.

TOOLS OF ANALYSIS

Tables

Bar and Pie diagram

Graphs

LIMITATIONS OF STUDY

Time allocated for the study was less which was not sufficient for the indepth study .As the project
is random sample study and is confined to 100 customers, it may not or may give a clear view
regarding customer feeling. The study has been restricted to Visakhapatnam city only. The
perceptions of the customer may change from time to time so there is a possibility of changes in
the research results.
 CHAPTERISATION

Chapter -1 Introduction

It is all about the Introduction part. It mainly consists of introduction to marketing and customer
satisfaction. Then comes the objectives of the study which states which states various aims of the
project. The scope of the project is also shown under this chapter. The research methodology is
clearly stated with various sub-headings.

Chapter-2 Company profile

This chapter consists of establishment of uber, different products of Uber SWOT analysis, vision
& mission, awards and recognitions.

Chapter-3Conceptual profile

Theoretical aspects of consumer satisfaction its objectives Advantages, limitations. And the
marketing strategies followed by the company

Chapter-4Findings, Analysis, and Interpretations

This chapter consists of the analysis and interpretations drawn from the questionnaires, tables and
graphs. It consists of the findings and conclusion derived from the analysis.

Chapter-5 Summary and Suggestions

This chapter consists of the short briefing of the overall report and some suggestions to the
company.
 CHAPTER-2

INDUSTRIAL PROFILE
Louis Vuitton
The brand Louis Vuitton is run by the company, LVMH, which stands for Louis Vuitton Moet
Hennessy. The brand itself does not have information regarding its objectives, strategy, tactics,
vision statement, or mission statement, but the company that owns it, LVMH, does

MISSION

The mission of the LVMH group is to represent the most refined qualities of Western "Art de
Vivre" around the world. LVMH must continue to be synonymous with both elegance and
creativity. Our products, and the cultural values they embody, blend tradition and innovation, and
kindle dream and fantasy

In view of this mission, five priorities reflect the fundamental values shared by all Group
stakeholders:.

Be creative and innovate

- Aim for product excellence
- Bolster the image of our brands with passionate determination
- Act as entrepreneurs
- Strive to be the best in all we do”
 Although they did not provide a vision statement, the first line of the mission statement can act as
their vision statement, as it defines the company’s long term goal. With “Are de Vivre” meaning
“The art of living”, their overall objective is to give people a taste of the qualities of the art of
living. They are an enterprise that owns countless of luxury brands that retail a range of high-
quality goods such as champagne, spirits, and apparel, accessories, etc, so the goal they want to
achieve is to represent Western luxury living around the world, as they are a multinational
corporation.

As an entire mission statement, it provides more specific information, such as strategies that
connect back to the overall goal. For example, their objective is to represent luxury life, so they
must “continue to be synonymous with both elegance and creativity”, because luxurious living is
often correlated to these two adjectives, and their goods must be elegant and creative in order to
symbolize luxury living. They say they must “continue” to be synonymous with both elegance and
creativity, so it shows us that they already possess these traits in the present. Also, they listed five
of their main strategies that build up to the overall aim. To be the best at representing Western
luxury living, they must be creative and innovative so that their goods are unique from others, aim
for product excellence so that their goods are the best quality possible, and strengthen the
company’s brands with passionate determination, as perseverance of an organization often leads
to the best quality of work. They also aim to act as entrepreneurs and strive to be the best in all
they do.

Louis Vuitton Malletier, commonly referred to as Louis Vuitton or shortened to LV, is a French
fashion house and luxury retail company founded in 1854 by Louis Vuitton. The label's LV
monogram appears on most of its products, ranging from luxury trunks 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; it sells its products through standalone boutiques, lease
departments in high-end department stores, and through the e-commerce section of its website.[5][6]
For six consecutive years (2006–2012), Louis Vuitton was named the world's most valuable luxury
brand. Its 2012 valuation was US$25.9 billion.[7] The 2013 valuation of the brand was US$28.4 billion
with revenue of US$9.4 billion.[8] The company operates in 50 countries with more than 460 stores
worldwide.

The Louis Vuitton label was founded by Vuitton in 1854 on Rue Nerve des Capucines in Paris,
France.[10] Louis Vuitton had observed that the HJ Cave Osilite [11] trunk could be easily stacked. In
1858, Vuitton introduced his flat-topped trunks with trianon canvas, making them lightweight and
airtight.[10] Before the introduction of Vuitton's trunks, rounded-top trunks were used, generally to
promote water runoff, and thus could not be stacked. It was Vuitton's gray Trianon canvas flat trunk
that allowed the ability to stack them on top of another with ease for voyages. Many other luggage
makers later imitated LV's style and design.[6]

The company participated in the 1867 Universal Exhibition in Paris.[10] In 1871, Ōyama Iwao became
the first recorded Japanese customer, ordering a set of luggage while in Paris as a military observer
during the Franco-Prussian War.[12] To protect against the duplication of his look, Vuitton changed
the Trianon design to a beige and brown stripes design in 1876.[6] By 1885, the company opened its
first store in London on Oxford Street.[10] Soon thereafter, due to the continuing imitation of his look,
in 1888, Vuitton created the Damier Canvas pattern, which bore a logo that reads "marque L. Vuitton
déposée", which translates into "L. Vuitton registered trademark". In 1892, Louis Vuitton died, and
the company's management passed to his son.[6][10]
After the death of his father, Georges Vuitton began a campaign to build the company into a
worldwide corporation, exhibiting the company's products at the Chicago World's Fair in 1893. In
1896, the company launched the signature Monogram Canvas and made the worldwide patents on
it.[6][10] Its graphic symbols, including quatrefoils and flowers (as well as the LV monogram), were
based on the trend of using Japanese Mon designs in the late Victorian era.[13] The patents later proved
to be successful in stopping counterfeiting. In this same year, Georges travelled to the United States,
where he toured cities such as New York, Philadelphia, and Chicago, selling Vuitton products. In
1901, the Louis Vuitton Company introduced the Steamer Bag, a smaller piece of luggage designed
to be kept inside Vuitton luggage trunks.

By 1913, the Louis Vuitton Building opened on the Champs-Elysees. It was the largest travel-goods
store in the world at the time. Stores also opened in New York, Bombay, Washington, London,
Alexandria, and Buenos Aires as World War I began. Afterwards, in 1930, the Keepall bag was
introduced. During 1932, LV introduced the Noé bag. This bag was originally made for champagne
vintners to transport bottles. Soon thereafter, the Louis Vuitton Speedy bag was introduced (both are
still manufactured today).[10] In 1936 Georges Vuitton died, and his son, Gaston-Louis Vuitton,
assumed control of the company.[10]

OBJECTIVES

The business objectives of the company are:

 To represent the most refined qualities of products around the world.

 To be creative and innovative.
 Strongly aim for product excellence.
 To strive to be the best in what they do.
 Product should be unique from others.
SWOT ANALYSIS

SWOT analysis is a strategic planning tool that can be used by Louis Vuitton managers to do a
situational analysis of the company . It is a useful technique to evalauate the present Strengths (S),
Weakness (W), Opportunities (O) & Threats (T) Louis Vuitton is facing in its current business
environment.

The Louis Vuitton is one of the leading firms in its industry. Louis Vuitton maintains its dominant
position in market by carefully analyzing and reviewing the SWOT analysis. SWOT analysis a
highly interactive process and requires effective coordination among various departments within the
company such as – marketing, finance, operations, management information systems and strategic
planning.

The SWOT Analysis framework facilitates an organization to identify the internal strategic factors
such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It
leads to a 2X2 matrix – also known as SWOT Matrix.

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of

the Louis Vuitton to develop four types of strategies:

 SO (strengths-opportunities) Strategies
 WO (weaknesses-opportunities) Strategies
 ST (strengths-threats) Strategies
 WT (weaknesses-threats) Strategies
SWOT Matrix Strategies Objective

The central purpose of SWOT matrix is to identify the strategies that an organization can utilize to
exploit external opportunities, counter threats, and build on & protect Louis Vuitton strengths, and
eradicate its weaknesses.

Step by Step Guide to Louis Vuitton

Step by Step Guide to Louis Vuitton SWOT Analysis

Strengths of Louis Vuitton – Internal Strategic Factors

As one of the leading firms in its industry, Louis Vuitton has numerous strengths that help it to thrive
in the market place. These strengths not only help it to protect the market share in existing markets
but also help in penetrating new markets. Based on Fern Fort University extensive research – some
of the strengths of Louis Vuitton are –
  Automation of activities brought consistency of quality to Louis Vuitton products and has
enabled the company to scale up and scale down based on the demand conditions in the
market.
 High level of customer satisfaction – the company with its dedicated customer relationship
management department has able to achieve a high level of customer satisfaction among
present customers and good brand equity among the potential customers.
 Good Returns on Capital Expenditure – Louis Vuitton is relatively successful at execution of
new projects and generated good returns on capital expenditure by building new revenue
streams.
 Successful track record of integrating complimentary firms through mergers & acquisition. It
has successfully integrated number of technology companies in the past few years to
streamline its operations and to build a reliable supply chain.
 Strong Brand Portfolio – Over the years Louis Vuitton has invested in building a strong brand
portfolio. The SWOT analysis of Louis Vuitton just underlines this fact. This brand portfolio
can be extremely useful if the organization wants to expand into new product categories.
 Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the
company to overcome any supply chain bottlenecks.
 Successful track record of developing new products – product innovation.
 Highly skilled workforce through successful training and learning programs. Louis Vuitton is
investing huge resources in training and development of its employees resulting in a
workforce that is not only highly skilled but also motivated to achieve more.

Weakness of Louis Vuitton – Internal Strategic Factors

Weakness are the areas where Louis Vuitton can improve upon. Strategy is about making choices and
weakness are the areas where a company can improve using SWOT analysis and build on its
competitive advantage and strategic positioning.

 Days inventory is high compare to the competitors – making the company raise more capital
to invest in the channel. This can impact the long term growth of Louis Vuitton
  Not highly successful at integrating firms with different work culture. As mentioned earlier
even though Louis Vuitton is successful at integrating small companies it has its share of
failure to merge firms that have different work culture.
 The marketing of the products left a lot to be desired. Even though the product is a success in
terms of sale but its positioning and unique selling proposition is not clearly defined which
can lead to the attacks in this segment from the competitors.
 High attrition rate in work force – compare to other organizations in the industry Louis
Vuitton has a higher attrition rate and have to spend a lot more compare to its competitors on
training and development of its employees.
 There are gaps in the product range sold by the company. This lack of choice can give a new
competitor a foothold in the market.
 The profitability ratio and Net Contribution % of Louis Vuitton are below the industry
average.
 Investment in Research and Development is below the fastest growing players in the industry.
Even though Louis Vuitton is spending above the industry average on Research and
Development, it has not been able to compete with the leading players in the industry in terms
of innovation. It has come across as a mature firm looking forward to bring out products based
on tested features in the market.

Opportunities for Louis Vuitton – External Strategic Factors

 Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window of opportunity for Louis Vuitton in other product
categories.
 Decreasing cost of transportation because of lower shipping prices can also bring down the
cost of Louis Vuitton’s products thus providing an opportunity to the company - either to
boost its profitability or pass on the benefits to the customers to gain market share.
 Economic uptick and increase in customer spending, after years of recession and slow growth
rate in the industry, is an opportunity for Louis Vuitton to capture new customers and increase
its market share.
  Government green drive also opens an opportunity for procurement of Louis Vuitton products
by the state as well as federal government contractors.
 The market development will lead to dilution of competitor’s advantage and enable Louis
Vuitton to increase its competitiveness compare to the other competitors.
 New customers from online channel – Over the past few years the company has invested vast
sum of money into the online platform. This investment has opened new sales channel for
Louis Vuitton. In the next few years the company can leverage this opportunity by knowing
its customer better and serving their needs using big data analytics.
 Organization’s core competencies can be a success in similar other products field. A
comparative example could be - GE healthcare research helped it in developing better Oil
drilling machines.
 New environmental policies – The new opportunities will create a level playing field for all
the players in the industry. It represent a great opportunity for Louis Vuitton to drive home its
advantage in new technology and gain market share in the new product category.

Threats Louis Vuitton Facing - External Strategic Factors

 New environment regulations under Paris agreement (2016) could be a threat to certain
existing product categories .
 Imitation of the counterfeit and low quality product is also a threat to Louis Vuitton’s product
especially in the emerging markets and low income markets.
 New technologies developed by the competitor or market disruptor could be a serious threat
to the industry in medium to long term future.
 Increasing trend toward isolationism in the American economy can lead to similar reaction
from other government thus negatively impacting the international sales.
 Rising raw material can pose a threat to the Louis Vuitton profitability.
 Rising pay level especially movements such as $15 an hour and increasing prices in the China
can lead to serious pressure on profitability of Louis Vuitton
 Changing consumer buying behavior from online channel could be a threat to the existing
physical infrastructure driven supply chain model.
  As the company is operating in numerous countries it is exposed to currency fluctuations
especially given the volatile political climate in number of markets across the world.

Limitations of SWOT Analysis for Louis Vuitton

Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its
share of limitations.

 Certain capabilities or factors of an organization can be both a strength and weakness at the
same time. This is one of the major limitations of SWOT analysis . For example changing
environmental regulations can be both a threat to company it can also be an opportunity in a
sense that it will enable the company to be on a level playing field or at advantage to
competitors if it able to develop the products faster than the competitors.
 SWOT does not show how to achieve a competitive advantage, so it must not be an end in
itself.
 The matrix is only a starting point for a discussion on how proposed strategies could be
implemented. It provided an evaluation window but not an implementation plan based on
strategic competitiveness of Louis Vuitton
 SWOT is a static assessment - analysis of status quo with few prospective changes. As
circumstances, capabilities, threats, and strategies change, the dynamics of a competitive
environment may not be revealed in a single matrix.
 SWOT analysis may lead the firm to overemphasize a single internal or external factor in
formulating strategies. There are interrelationships among the key internal and external
factors that SWOT does not reveal that may be important in devising strategies.

Weighted SWOT Analysis of Louis Vuitton

In light of the above mentioned limitations of the SWOT analysis / matrix, corporate managers
decided to provide weightage to each internal strength and weakness of the firm. Organizations also
assess the likelihood of events taking place in the coming future and how strong their impact could
be on company's performance.
This method is called Weighted SWOT analysis. It is better than doing simplistic SWOT analysis
because with Weighted SWOT Analysis Louis Vuitton managers can focus on the most critical
factors and discount the non-important one. It also solves the long list problem where organizations
ends up making a long list but none of the factors deemed too critical.

Limitation of Weighted SWOT analysis of Louis Vuitton

This approach also suffers from one major drawback - it focus on individual importance of factor
rather than how they are collectively important and impact the business holistically.

UNIQUE ACHIEVEMENTS
Founded in Paris in 1854, Maison Louis Vuitton has inherited the ambition and vision of its founders.
This legendary history built around travel continues to place the House at the forefront of Creation.
Still today, Louis Vuitton’s spirit of adventure is expressed through its unique heritage, values and
rigorous spirit of innovation and ingenuity, the boldness of its creations and the demand for perfection
in its designs. Leather goods, ready-to-wear, accessories, shoes, watches and jewellery.

The House’s creations leave their mark with objects that have become legendary. All over the world,
the House welcomes its clients into a world that reflects its founding values and that is sold
exclusively in Louis Vuitton boutiques.

Created by Georges Louis Vuitton in 1896 as a tribute to his father’s genius, the Monogram canvas
was quickly adopted by great travelers and adventures. The Steamer, Keepall and Speedy bags,
originally designed in leather and canvas, were reborn in the brand new Monogram canvas which
became a sign of distinction, excellence and rarity.

Since its foundation, the craft of trunk-making has forced the House to develop additional savoir-
faire, such as leather goods making, locksmithing and box making. Historically known for its
Monogram and Damier canvases, the House has created leather products bearing the now famous
signatures of Epi and Taiga, but also increasingly sophisticated leathers such as the leather of the SC
bag designed by Sofia Coppola and the already legendary Capucines bag. In the same spirit, since
1997, Louis Vuitton has taken on the role of a true “fashion house” with lines for men and women.
The Fashion Awards is a ceremony held annually in the United Kingdom since 1989[1] to showcase
both British and international individuals and businesses who have made the most outstanding
contributions to the fashion industry during the year. The ceremony is organized by the British
Fashion Council, and is the primary fundraiser for the BFC’s Education Foundation; a charity that
promotes excellence in design by financially supporting students with the ability and potential to
make an exceptional contribution to the fashion industry.

In 2016, the British Fashion Awards was rebranded as The Fashion Awards.[2]

The Fashion Awards 2017 in partnership with Swarovksi was held at the Royal Albert Hall on
Monday, 4 December.

FUTURE PLANS

LOUIS VUITTON is gearing up for expansion: this year the luxury fashion label has plans to open a
store in Lebanon and one in Mongolia, having just opened its latest store in Dubai yesterday. But
that doesn't mean the label is getting too big for its luxury fashion house boots.

"Sometimes in our industry there is a tendency to follow your ego and sometimes open stores where
you don't have the market, or stores too big for your potential — we never do that. When we open a
big store, we know that there is a market, we know the financials. So we never have to close a store
for economic reasons," Louis Vuitton chief executive Yves Carcelle tells DRAPERONLINE.COM.

He added that during 2009, no cuts had been made to investment and, despite there having been fewer
store openings this year in comparison to 2008, the same in terms of square metres had been opened.

Louis Vuitton is part of the French luxury retail group LVMH, which counts Marc Jacobs and Donna
Karan among its portfolio.

b. FUNCTIONAL PROFILE
Fiscal year is January-December. All values EUR 30-Jun-2019 31-Dec-2018
Millions.
Cash & Short Term Investments 4,787 5,276

Cash Only 3,999 4,610

Cash & Short Term Investments Growth -9.27% 3.55%
Cash & ST Investments / Total Assets 5.26% 7.10%

Total Accounts Receivable 4,896 5,021

Accounts Receivable Growth -2.49% 10.99%
Accounts Receivable Turnover 5.12 4.99

Inventories 13,751 12,701

Other Current Assets 672 553
Prepaid Expenses 513 430
Miscellaneous Current Assets 159 123
Total Current Assets 24,106 23,551
Net Property, Plant & Equipment 27,761 14,510
Property, Plant & Equipment - Gross 39,633 25,686
Construction in Progress 1,432 1,238
Accumulated Depreciation 11,872 11,176
Total Investments and Advances 2,923 2,976
LT Investment - Affiliate Companies 715 638
Other Long-Term Investments 2,208 2,338
Intangible Assets 33,299 30,981
Net Goodwill 16,406 13,727
Net Other Intangibles 16,893 17,254
Other Assets 453 47
Total Assets 90,924 74,300
Liabilities & Shareholders' Equity:

All values EUR Millions. 30-Jun-2019 31-Dec-2018

ST Debt & Current Portion LT Debt 9,919 5,008
Short Term Debt 7,890 4,982
Current Portion of Long Term Debt 2,029 26
Accounts Payable 5,163 5,314
Accounts Payable Growth -2.84% 15.32%
Income Tax Payable 800 538
Other Current Liabilities 5,166 5,973
Miscellaneous Current Liabilities 3,706 4,200
Total Current Liabilities 21,048 16,833
Current Ratio 1.15 1.40
Quick Ratio 0.49 0.64
Cash Ratio 0.23 0.31
Long-Term Debt 15,727 6,005
Long-Term Debt excl. Capitalized Leases 5,588 5,690
Capitalized Lease Obligations 10,139 315
Deferred Taxes 3,046 3,104
Deferred Taxes - Credit 5,123 5,036
Deferred Taxes - Debit 2,077 1,932
Other Liabilities 12,236 10,039
Other Liabilities (excl. Deferred Income) 12,236 10,039
Total Liabilities 55,534 40,343
Total Liabilities / Total Assets 61.08% 54.30%
Common Equity (Total) 33,678 32,293
Common Stock Par/Carry Value 152 152
Additional Paid-In Capital/Capital Surplus 2,319 2,298
Retained Earnings - 28,816
 Cumulative Translation Adjustment/Unrealized For. 675 573
Exch. Gain
Unrealized Gain/Loss Marketable Securities - -
Other Appropriated Reserves (263) (242)
Treasury Stock (411) (421)
Common Equity / Total Assets 37.04% 43.46%
Total Shareholders' Equity 33,678 32,293
Total Shareholders' Equity / Total Assets 37.04% 43.46%
Accumulated Minority Interest 1,712 1,664
Total Equity 35,390 33,957
Liabilities & Shareholders' Equity 90,924 74,300

 MARKETING:

Marketing Mix of Louis vuitton analyses the brand/company which covers 4Ps (Product, Price, Place,
Promotion) and explains the Louis vuitton marketing strategy. The article elaborates the pricing,
advertising & distribution strategies used by the company.

Let us start the Louis vuitton Marketing Mix:

Product:
The product strategy and mix in Louis vuitton marketing strategy can be explained as follows:

Louis vuitton is one of the top most luxury fashion brands well known globally. Louis vuitton has a
diverse product portfolio in its marketing mix with great length, width and depth. Louis vuitton
product line ranges from handbags, shoes, ready to wear products, jewelry, watches and other
accessories. It has products for men, women and children. It has great length in each of the product
category. In handbags it has totes, shoulder bags, backpacks, clutches, crossbody bags etc. Each bag
has different variety of colors to choose from. Louis vuitton have duffle bags, briefcases, portfolios,
totes and backpacks for men. In their ready to wear segment they have jackets and coats, denims,
leather and fur, skirts, tops and shirts, pants and shorts, sweaters and cardigans, sweatshirts, T-shirts
and suits for men. Louis vuitton have a range of fancy shoes for women like pumps, sandals,
ballerinas, moccasins and loafers, slides and mules, boots and wedges. For men they offer laceups,
boots, sneakers, sandals, loafers. Some of the loafers are made from precious skin. Louis vuitton offer
accessories like sunglasses, belts, scarves, luggage bags, wallet, hats, gloves etc. Louis vuitton also
has beauty products ranging from fragrances to nail paints, eye and face makeup. In the children
section one can find clothes and shoes for new born and grownups of age 12.

Price:

Below is the pricing strategy in Louis vuitton marketing strategy:

Louis vuitton mostly offers premium priced products. The price of the apparels depends on the quality
of fabric and the work done on the apparels. The pricing strategy in its marketing mix includes all
sort of charges and expenses it incurs. When the products are exported the rate of the products
increases due to several charges imposed on them. The materials used in making of Louis vuitton
products are of premium quality therefore the pricing of the products are also high. Their finished
goods have a made in Italy trademark on them. Their prestigious pricing makes the product act as a
status symbol. Even in other products Louis vuitton follows premium pricing. Louis vuitton’s
customers are not affected by this because they get high quality products. Louis vuitton tries to offer
discounts time to time to enhance sales and keep their loyal customers happy.

Place:
Following is the distribution strategy of Louis vuitton:

Louis vuitton is optimizing its existing network to drive organic growth and profits. Louis vuitton
operates in Europe, United States of America, Asia, Middle East, Australia. Its major business
functions are merchandising, marketing and communication, store planning. The collateral aspects of
the Louis vuitton’s business are handled by the support staff functions like Human resources, Finance,
Corporate social responsibility, legal and corporate affairs. From product development to the
technical area Louis vuitton’s supply chain is very efficient and helps in delivering products with
cutting edge innovation. It has 500+ directly operated stores, a directly operated online store which
works in 28 markets. Louis vuitton have limited no. of franchises and selected departments and
specialty stores through which they sell their products. Their stores are placed in expensive up street
locations keeping in mind their clientele. They have visually appealing outlets which give a great,
relaxing experience to the customers. Each Louis vuitton store is uniquely designed and have classic
interiors.

Promotion:

The promotional and advertising strategy in the Louis vuitton marketing strategy is as follows:

Louis vuitton makes itself visible through advertisements, banners, look books, social and print media
as a part of its marketing mix. Their marketing campaigns features on various social media platforms
like Facebook, Pinterest, YouTube, Instagram, Tumblr. They have hired various bloggers to promote
their content on social media. Louis vuitton also has an app in eight different languages and it is called
Louis vuitton style app. It acts as a magazine consisting of fashion, geo location tips, interactive
videos etc.

Alessandro Michele has been driving Louis vuitton’s advertising campaigns effectively. He
understands the importance of connecting the past history of Louis vuitton with the contemporary
outlook of the customers. It leverages the rich heritage of Louis vuitton and its craftsmanship. Louis
vuitton’s fashion shows are well accepted and recognized by the fashion experts and by the targeted
audience. Louis vuitton has an excellent customer relationship services which acts as a huge means
of word of mouth promotions. Louis vuitton offers its client a repair service and also allows them to
pre order items that are still under production. Hence, the marketing mix of Louis vuitton luxury
fashion brand is completed.
 CHAPTER 3

Conceptual Profile

a) Theoretical aspects of the Concept

Introduction

Advertising is a way of communication to encourage an audience for making purchase decision

about a product or service and conveying information to viewers. It is considered as a vital and
essential element for the economic growth of the marketers and businesses (Ryans, 1996).
Advertising is usually a paid form of exposure or promotion by some sponsor that reaches through
various traditional media such as television, newspaper, commercial radio advertisement,
magazine mail, outdoor advertising or modern media such as blogs, websites and text messages
(Ahmed & Ashfaq, 2013).
Marketers have always adapted to changing business demands when it comes to creating new
advertisements. The use of advertisements has significantly increased in the 20th Century as
industrialization expanded the supply of manufactured products. However, not many businesses
practiced advertising at the time. During the late 80s advertisements were fairly limited to
television, radio, billboards and newspapers. In the modern times, businesses are leaning towards
Digital Advertising. Companies are so focused in social media and mobile advertisements that
they may take over Television advertisement very soon. In Bangladesh, the trend of Digital
Marketing is just on the bloom. Most large local and multinational giant companies are now
practicing digital marketing in full swing.

The major aim of advertising is to impact on buying behaviour; however, this impact about brand
is changed or strengthened frequently through people’s memories. Memories about the brand are
formed by associations that are related to brand name in consumer mind (Khan, Siddiqui, Shah &
Hunjra, 2012). These brands continuously influence consideration, evaluation and finally
purchases (Romaniuk & Sharp, 2004).Consumers buying behaviour has always been given so
much importance and space in the literature study of impact of advertising regarding its
effectiveness (Ajzen, 2002). Most of the time consumers buying behaviour depends on liking or
disliking of consumer towards the advertisement of the product advertised (Smith et al., 2006). A
good quality advertisement is likely to influence consumers into buying that product while a poor
quality advertisement will do the opposite.

Previous studies have been conducted on effectiveness of advertisement and on advertisement’s

impact on consumer buying behaviour which depicted positive relationships. However, in this
paper we have introduced a combination of different variables and attempted to examine their
influence on consumer behaviour. This paper aims to determine which of these variables carries
the most importance in terms of effecting consumer behaviour and which of these variables carries
less significant impact. This will help marketers to focus on the right factors and achieve maximum
benefit from their advertisement.

We believe that the study will offer useful insights for both advertising scholars and executives to
understand the ins and outs of advertising and to assist marketers in introducing better approaches
to advertising.
Consumer Buying Behaviour

Consumer buying behaviour refers to the methods involved when individuals or groups choose,
buy, utilize or dispose of products, services, concepts or experiences to suit their needs and desires
(Solomon, 1995). A behaviour that consumers display in searching for, paying for, using,
evaluating and disposing of products and services that they think will satisfy their needs
(Schiffman & Kanuk, 2007). It is a convergence of three fields of social science, they are,
individual psychology, societal psychology and cultural anthropology (Ramachander, 1988). A
theory that answers what, why, how, when and where an individual makes purchase (Green, 1992);
it is particularly important to study the subject of consumer buying behaviour as it facilitate firms
to plan and execute superior business strategies (Khaniwale, 2015).

In this research we will attempt to find what factors effect consumer buying behaviour. In previous
studies certain variables were found to have an impact in consumers. This is briefly discussed
below:

Nowadays, people have access to the endless supply of advertisements. However, they fancy
something new, entertaining and something that can grab their attention. Boring advertising will
not sustain in consumers’ minds long enough. Therefore, entertainment has been termed as a
significant advertising strategy for increasing advertising effectiveness and imploring them to
make a purchase (Madden & Weinberger, 1982).

Familiarity created by advertisement for a certain brand is also an important factor that affects
consumer buying behaviour. Macinnis and Park (1991) carried out a study with consumers to
investigate the effects of familiar songs in advertising and consumer behaviour. In their research,
consumers depicted satisfaction for products with familiar songs and a significant relationship was
confirmed between the level of familiarity of the songs in the advertising and its amiability.

Social role and image reflects that ads influence individual life style and the extent to which an
individual seeks to present him or herself in a socially acceptable manner. In addition to selling
products and services, ads sell image and life style. Consumers learn about new life style, image
and trend through ads (Pollay & Mittal, 1993; Burns, 2003). Advertising promote social messages
and life style through illustrating the position of ideal consumer and stimulate social action toward
purchase of that product.

Advertising spending also creates positive impression about a brand in the minds of the consumers.
Aaker and Jacobson (1994) also find a positive relationship between advertising and perceived
quality. Hence, advertising spending is positively related to perceived quality, which leads to
greater amount of purchase from that brand as consumers generally prefer to purchase from a well
know brand in order to avoid disappointments over quality.

Conceptual Framework

The influence of advertisement and how advertisements work is a question that most marketers
and managers try to find an answer to. The primary objective of advertisement is usually to impact
the consumer’s buying behaviour. Most of the time consumers buying behaviour is influenced by
liking or disliking of consumer towards the advertisement of the product, advertised (Smith &
Neijens, 2006). In the words of Gorn (1982), the consumer behaviour towards a product is wholly
depending on advertising, without any consideration of the features of the product.

To analyse more about the effects of advertisement and the factors of advertisement that influences
the consumer buying behaviour, a conceptual framework is built. The hypotheses for this research
are formulated based on the literature review to build a conceptual model for the research (Figure
1).
Figure 1.Consumer Buying Behavior

Psychology Plays a Role

Consumers choose businesses and brands based on how they think, feel and reason. Analyzing
what drives consumers’ emotions and responses through research can help companies position
their products or services to be chosen more often.

Environmental Influences

A consumer buys based on what they see and hear. Factors like culture, family, advertising and
media messages shape decisions. For example, teenagers want to buy clothes like their friends
wear. Or, if a consumer grows up using a particular soap or laundry detergent that their family
prefers, they might be more apt to buy those same brands as an adult.
Individuals and Groups Model Behavior’s

Consumer behavior can be studied in terms of individuals or groups. Businesses can identify
audiences that are similar in demographics such as age, gender, race or income. Then they can
identify common motivators among those groups, like individuals who want the lowest price or
consumers who are willing to pay more for luxury.

Goods and Services Matter

Consumers don’t just buy items. They also purchase services, lifestyles or images. Whether it is a
tangible product like a household cleaner or a service like preparing an income tax return,
consumers base their decisions on the same values and variables.

Consumer Behaviour Impacts Society

Consumers become what they buy. If, for example, consumers buy healthier food then overall
wellness could improve. Or, conversely, if people consume more alcohol, tobacco or junk food,
then overall health care costs could rise due to problems like obesity, cancer or heart disease.

Personalization Is Preferred

Personalized products and services have become popular because consumers like to be sold to
specifically. One company has gone so far as to create earphones that are customized for their
customers so that they get the best fit for their ears.

Convenience Is Desired

Consumers crave convenience because technology has made everything easier. Whether
consumers are buying cars, booking trips or communicating with friends online, a business can
benefit by capitalizing on the quest for more efficiency.

Companies Matter
One of the most important characteristics of consumer behavior is that they often care as much
about who they buy from as what they buy. Consumers like cool brands. Businesses that offer a
compelling reason to buy from them, like cutting-edge technology, leading fashion or social
consciousness, can score big. This can create a habit of repeat buying, a brand loyalty that will
drive consumer action.

Knowledge Is Power

The first step in creating a marketing plan is studying consumer behavior. Knowing consumer
behavior characteristics can help companies create more effective marketing strategies. For
example, a business with a first-of-its-kind product would fare better by targeting early adopters
who pride themselves on having the latest and greatest goods.

Shaping Without Selling

Companies also can influence consumers to take actions other than buying, like perhaps donating
to charities or supporting public health initiatives, by knowing that consumers care about more
than shopping. Consumers are more likely to support a business if they believe that the business
shares their concerns.

Lessons Learned

People who run businesses can become better consumers themselves by studying characteristics
of consumer behavior. By knowing consumer habits and desires, business owners can be more
responsive to the market, offering more desirable products and creating more successful marketing
programs.

Limitations

Consumer buying behavior is a psychological process that is important to businesses and marketing
professionals. Consumer buying behavior relates to the identification of consistent stages of decision
making used in every purchase situation. The process begins with need recognition, followed by
information gathering, a purchase and finally, post-purchase evaluation. Marketers rely on an understanding
of buyer behavior to effectively position products and services. However, consumer buying behavior does
have limitations.

Inconsistency

One of the biggest drawbacks of relying too heavily on consumer buying behavior is that
consumers rarely apply the same steps in the same way for every product and service purchase.
This makes it more difficult for marketers trying to stimulate a need or to offer messages that
enhance the likelihood of a purchase for their brand. Thus, most companies have to perform more
research into their particular market segments and how they approach their brand.

Limited Buyer Interest

Another primary limitation for marketers using the consumer buying behavior model is that
consumers sometimes are much less involved in a purchase decision. For instance, someone
buying laundry detergent is generally less involved in the purchase than someone buying a car or
washer and dryer. Thus, the ability of marketers to affect consumers by analyzing buyer behavior
is limited. Consumers that are less involved spend less time seeking or viewing information about
the purchase.

Social and Cultural Influences

Marketers spend significant time trying to interpret consumer buying behavior related to their
products, but they must also understand how each given customer is influenced externally by social
relationships and culture. Selling barbecue to Americans for the Fourth of July is fairly predictable.
However, knowing how a given customer is influenced by family, friends and their community for
purchases of appliances, food and household items is significantly more complex.

Applying Stimuli
In its "Buyer Behavior" overview, MMC Learning points out that marketing tries to respond to
consumer buying behavior by communicating with stimuli expected to elicit the desired consumer
response. For instance, a fast food restaurant may promote its late night drive through window to
inspire a desire from the market for a late night meal. Unfortunately, MMC Learning notes that
buying behavior involves a number of complicated psychological variables related to consumer
perception, motivation, learning, memory, attitude and personality. Accurately predicting response
to a given message often demands significant marketing research and focus group studies

Advantages of Study of Consumer Behaviour

Saves from Disaster:

The failure rate of new products is surprisingly high not only in highly competitive economies of
USA, Europe and Japan etc. but even in India. For instance, Roohafza of Hamdard succeeded well
but when other companies tried like Dabur to produce similar products they could not succeed.
Dabur had to stop production of Sharbat, because consumers did not like its taste. Meghee became
very popular with consumers but when other companies tried they failed, some of them have
become sick. There are many more such examples. If one tests the market before launching a new
product this type of disaster can be avoided or minimized.

Helps in Formulating Right Marketing Strategy:

If one studies well what factors will influence demand of a product accordingly production and
marketing strategies can be framed. Nirma in initial stages succeeded in its washing powder only
on account of its price. It gave tough competition to Hindustan Lever, Surf the market leader and
today Nirma has become a big producer.

In food items it is taste which decides whether consumer will buy it or not. Besides big names
even small producers have succeeded because of proper product. For instance, a small producer of
Sikanji (cold drink prepared by mixing syrup and lemon) at Modinagar has become a name in the
region and now he provides franchise to others. From a small pan shop he has become a well
known name in the area of Delhi-Modinagar and made huge profits. Helps in Sales Promotion
If through the study of consumer behaviour one is able to know correctly the factors which
influence buying decisions of the consumer one can promote sales of existing or new product. The
scheme of buying back old items has helped a lot LML in pushing sales.

This strategy was followed, by Akai T.V. and number of other companies like Bajaj Auto Akai.
T.V. Manufacturers of diesel generator sets, refrigerators, electric iron, pressure cookers etc. also
adopted the strategy and benefited.

Similarly, introduction of small packs of shampoos, washing powder and pan masala etc has
helped the companies to expand their market. “When producers found that even a poor person does
not mind trying a new costly product if it is available in affordable price pack many companies
introduced such packaging and when the product was liked they became regular customers.

Segmentation of Market is Helped:

The study of consumer behaviour suggested that everyone does not buy on price consideration or
utility consideration only. For high income group’s high priced cloth, cars, etc have been produced.
In certain cases the price of such cloth is three to eight times of normal suiting price but some
section still buy it for prestige or show.

The producers of such items make heavy profits which would not have been possible without study
of consumer behaviour because it is against basic economic theory. Even some producers to cater
different segments produce varieties of products such as soaps, creams, toothpastes etc.

Helps in Development of New Products:

Before launching a new product proper study of consumer tastes i.e. behaviour avoids later failure
and loss. This is particularly true for food items and daily consumption products. It is equally true
for fashion goods like garments, cosmetics, cigarettes and new flavours of existing products. In
certain cases if a product is reintroduced after a long gap this type of study helps.
For instance, Coca-Cola was banned in India in 1977 and consumers by and large forget its taste
and liking. Thumps up and other drinks took its place. When Coca-Cola was reintroduced in 90’s
it could as yet not reach the same supremacy. Life Bouy re-oriented its product and produced
different items like Life Bouy Gold, Life Bouy Plus to meet demand of different consumers.

Helps in Product Orientation:

The study of consumer behaviour helps to find-out why consumers are drifting away from a
product or why they are not liking it. For instance, some of Indian toothpastes are being produced
for long like Neem but it could not capture the market. There are many other instances when a new
product has been developed or reoriented to again capture its old glorious position.

Those who do it scientifically succeed and others who do not study consumer behaviour properly
or do not orient loose the market, merely by pretty faces or fancy claims he wants to be assured
that what is claimed is really true.

Therefore, based on consumer research new techniques are used Hindustan Lever and Procter &
Gamble for Surf Ultra and Ariel has brought in producers of cloth Bombay Dyeing and Reliance
to testify claims of producers of these washing powders. This is not an isolated case but this type
of study had paid good results to others also.

Helps in Reorientation of Packaging:

A great deal of importance is being given to packaging for quite some time by marketing
department and market research. But whether a particular packaging is liked by consumers or not
is a recent phenomenon. Consumer if likes a packing helps in pushing sales.

Producers of Vanaspati (hydrogenated oil), milk, drinks items, etc. have developed utility
packaging so that once container becomes empty they can be used for refilling. In certain cases
this fact is advertised also. But in many cases this has been done without study of consumer
behaviour and his attraction or disliking of a particular packaging. The fact however remains that
proper study can help in pushing sales.
Helps Consumers to Study their Behaviour:

The consumers often are guided by their income, emotions, opinion of others and they do not
undertake study of their behaviour whether it is scientific or not. The science, however, can help
them to study cost benefit of their buying decisions. The study can reveal them whether buying an
expansive item is rational, or not.

Whether they should buy Rs. 2 ball pen or fancy pen costing Rs. 100 or more. Whether they should
decide in favour of expensive cloth, car, consumer durables and other fashion goods or should they
buy on utility consideration. If there are competitive goods it can help them to make consumer
preference chart and then decide what to buy immediately and what to postpone and what should
be rejected.

Disadvantages of Study of Consumer Behaviour:

The marketers study the behaviour of consumer to mold it in favour of their product and sometimes
make fancy claims and use objectionable techniques. They also take the help to produce and market
such products which have no utility. In many cases consumers are exploited by sexy or otherwise
attractive advertisements through the media.

They take full advantage of weaknesses of consumers to mold it in their favour whether it is
scheme of exchange, gifts, lotteries or otherwise. All over the world consumers have been
exploited by sales promotion schemes and campaigns. For instance producers certain producers
claim that use of their tooth paste will guard against germs and cavity.

Producers of medicines claim cure of certain diseases. Producers of hair oils claim that it will stop
falling of hairs and/or new hairs will start growing. Slim centres claim to reduce weight in magic
speedy manner. Someone claims that baldness can be cured by replanting of new hairs in short
period. Someone claims regeneration of vitality even in old person.

Any number of examples can be given but such claims sometimes even by big companies are only
partially true. High priced products are introduced to take advantage of consumers weakness just
by changing shape, packing etc. Customers are attracted by gifts, lotteries, exchange schemes, etc.
In such cases often claims are exaggerated and benefits in the form of sales promotion scheme is
only to seller and not to buyer. The government in most of the countries has found that though
consumer is the king he is exploited. Hence most of countries have framed and enacted many acts
and regulations to safe guard the interest of consumers.

In India also there are a large number of laws in this direction like Monopoly and Restrictive Trade
Practices Act (MRTP)., Essential Commodities Act., Consumer Protection Act, compulsory
printing of maximum retail price on each packing, weights and Measures Act and Code of
Advertising.

Conclusion:

The study of consumer behaviour basically is to mold consumer behaviour and his decisions by
market man and to avoid failure of their product, promote new products and for sales promotion.
The science at times is misused and to protect consumers there are a number of enactments both
in India and other countries. Actually consumer movement in India is much weaker than other
developed countries because till a decade back India was sellers market and competition is of
recent origin.

b) Application of the “Concept “in the company

Louis Vuitton or shortened to LV – is a French fashion house founded in 1854. The label is well
known for its LV monogram, which is featured on most products, ranging from luxury trunks and
leather goods to ready-to-wear, shoes, watches, jewellery, accessories, sunglasses, and books.
Louis Vuitton is one of the world’s leading international fashion houses. Louis Vuitton sells its
products through small boutiques in high-end department stores, and through the e-commerce
section of its website.

In this report, there will be some market research conduction, which is often needed to ensure that
we produce what customers really want and not what we think they want. There are two main
approaches: primary and secondary research methods. For primary research data, we select one
focus group of target customer and then we conduct a survey with 50 correspondents. Secondary
literature involves using existing information that others have already discussed and experienced
about the customer service level of LV stores. By then, the understanding from various data
obtained will be analyzed as well as the involved influence factors during the luxury apparels
purchasing process.

Introduction

Obviously, in order to improve in marketing plan and strategy, it is essential for marketers to
understand the consumer behavior process and the key factors influencing the process. With
intensive research conducted, this report aims to provide the understanding of Louis Vuitton target
market as well as the consumer purchasing process towards Louis Vuitton brand. Base on that,
there would be analysis, discussion and recommendation for Louis Vuitton in the future.

Product description and Target market

Product description

Louis Vuitton has maintained its leading position in the world fashion industry for decades as a
luxury brand. It can be seen clearly that Louis Vuitton bag is a tangible product. Being different
from services which cannot be seen and touched, Louis Vuitton bag can be touched, felt physically
with the fingertips by the users. For instance, even if the customer see the products’ images online
and make an order, it is still not a tangible product until the consumers can hold the product in
their hands, feel the leather, the zip, smell the fragrance. Louis Vuitton bag is not only functional
in containing things as a bag itself but also help people feel confident and valued since Louis
Vuitton is a luxury and fashionable brand.
Target Market

From our research, we identify this brand into two main target market segments, which are from
the demographic marketing segmentation and geographic marketing segmentation.

Demographic segmentation includes some components such as: age, gender, income, occupation,
social class and so on. Louis Vuitton’s target market consists of individuals who have a higher
income and thus they have found that the higher the income of an individual, the higher the
propensity to purchase luxury goods. Louis Vuitton’s target market is also one that can identify
with the communicate messages of Louis Vuitton because the company has created images that
are in accordance social identity theory. People are posited to take action and to consume products
at least in order to follow the ideas consistent with their ideal-self image. The products can also be
bought for personal use or for gift. Therefore, for this segmentation, our targeted clients are both
sex, aged between 25-50 years old, who have earned an income between 50,000 SGD ~ 200,000
SGD yearly and most of them would be graduate professionals with sense of self-worth and high
social status.

Geographical segmentation divides markets into different geographical areas. Marketers use
geographic segmentation because consumers in different areas may display certain characteristics
and behaviors in that particular region. This segmentation will help the brand to do better
positioning by enhancing its status symbols in its wealthy market such as China, Japan, India and
other developing countries. One of the most important markets of Louis Vuitton is not from Paris
where its original is, but Asia. The brand has pursued a consistent approach to developing the
foreign market, never compromising in the face of difficult operational obstacles, and, as always,
controlling every aspect of the business. This unique approach has powered Louis Vuitton to its
current position as the most successful luxury brand in China. And it is said that the mainland
Chinese were Louis Vuitton’s third-largest customer segment in the world nowadays.

After thorough research and analysis, this report will focus mainly on demographic market
segment for the remainder.

Consumer Behavior Process

Problem recognition

The first stage that all purchasers will go though is the problem recognition stage.From our survey
among 50 correspondents, most of the purchase recognition stages are from the needs of a luxury
handbag to carry. These people believe that carrying a branded product will enhance their status
and wealth as well as fashionable.

Most of the users are mature (25+), female, working population with stable financial background.
There is also an increasing number of young users, who are fashionable trend-followers and these
users are usually less price-concerned and its products are frequently used by the rich and famous,
celebrities, models all over the world.

Information Search

Once the consumer has recognized a problem, they start to search for information on products and
services that can solve that problem. First time buyer will engage a little bit of time to recall their
awareness about brands. And each brand will carry a series of models which are suitable for
different occasions. They are tote bags, evening clutches, top handles and even accessories. From
the needs recognition trigger in the earlier steps, there will be a wide range of choice. External
search may include the opinions and attitudes of friends, families, reviews from the internet, etc.
This information can be easily attainable from those discussion forums, blogs, chat groups and
some official websites of each brand. Pricing and product catalogues are mostly displayed on the
website with all new arrival designs, exclusive designs and also some sale-off for online purchases
as well.

Evaluating and selecting alternatives

At this time, the consumer compares the brands and products that are in their evoked set. They
will have some choices in mind for a luxury bag such as Louis Vuitton, Channel, Burberry, Gucci,
and Salvatore Ferragamo. How the marketing team can increase the likelihood that their brand is
part of the consumer’s decision process is the key value of branding strategies. A buyer’ evaluative
criteria would be the cost of a bag, the colour and whom the celebrities are being captured carrying
the bag. It also depends on the surrounding or working environment where the consumer is in,
especially for those first time buying a luxury brand handbag. The data obtained from the research
shows that 60% of total correspondent have the choices to buy LV bag in their first purchase.

However, for those have bought it before, the evaluation and selective will depends on loyalty,
brand satisfaction or the attractiveness of new design of that brand. At this stage, there will be high
involvement of switching brands. From our survey, 65% of correspondents of those who have
owed an LV bag don’t want to be loyal with the brand and tend to select another brand for their
next purchase. Consumers evaluate alternatives in terms of the functional and psychological
benefits that they offer. Since this is the fashionable products and the consumption may follow the
trendy designs in different seasons. For Louis Vuitton, they have variety of colours and leather
types for several occasions. Consumer can select the classic material named Monogram Canvas,
Monogram Denim, Monogram Idylle, Monogram Multicolore, Monogram Miroir, and Monogram
Vernis. For those young-age-customer groups who are going for another line of design, they can
look for Damier Ebene, Damier Azur. And for leather bags, LV carries Normad Leather, Suhali
Leather, which brings the prestige and professional to working executives. After choosing the
brands, consumer will proceed to the step of looking for the design and colour even though it may
happen in reserve cycle to some other buyers, who choose the design and colour first and then go
for brand selection.

Outlet selection and product purchase

Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.
Sometimes purchase intention does not result in an actual purchase. The marketing organization
must facilitate the consumer to act on their purchase intention. The organization can use variety of
techniques to achieve this.

For branding and luxury handbag boutiques like Louis Vuitton, they are located in prestige
shopping malls, whereby the customers are being well-taken care of and being served as a queen
when shopping. Therefore, we will never experience that an LV boutique outlet is located in any
wet-markets or any neighbour-hood shopping market. All the shoppers believe in the luxuries
where the shop is located.
For some detail customers, there might be a call to the LV shop in advance to check the stock
availability regarding the model, the design that she wants, and also the price amount. For some
shopaholic consumers, they may just need to visit the shop themselves and pick the one that they
feel like it. And this process is taking shorter time which all stages happens in the shop itself for
those experienced LV bag users.

Post-purchase processes

It is common for customers to experience concerns after making a purchase decision. This arises
from a concept that is known as “cognitive dissonance”. The customer, having bought a product,
may feel that an alternative would have been preferable. In these circumstances that customer will
not repurchase immediately, but is likely to switch brands next time. As mentioned above, 65% of
correspondents of those who have owed an LV bag in our survey don’t want to be loyal with the
brand and tend to select another brand for their next purchase. There are a few negative voices
from Louis Vuitton Shoppers such as: “No one bothered to greet me, other than the security guard
at the door!”, “Long queue, slightly condescending assistant-not the VIP experience it should be.”,
“I don’t look like a typical LV customer, so the salespeople were in a hurry to have me out of
‘their’ store as fast as possible.”

To manage the post-purchase stage, it is the job of the marketing team to persuade the potential
customer that the product will satisfy his or her needs. Then after having made a purchase, the
customer should be encouraged that he or she has made the right decision.

Influencing Factors

Internal Influences

Consumer behavior is influenced by demographics, psychographics (lifestyle), motivation,

knowledge, attitudes, beliefs, and feelings. Consumer behavior concern with consumer need
consumer actions in the direction of satisfying needs leads to his behavior of every individual
depend on thinking. The marketing department needs to understand what benefits consumers are
seeking and therefore which attributes are most important in terms of making a decision.

Perception is how we see ourselves and the world we live in. Buyer’s mind has been stored that
the Louis Vuitton bag is a branded luxury item which shows the prestige and wealth for its owner.
To consumer this is their reality, though it does not mean it is an accurate reflection on what is real
until they experience it. For instance, one person may be able to focus very strongly on a certain
advertisement and be able to retain the information after being exposed only one time while
another person may need to be exposed to the same advertisement many times before he/she even
recognizes what it is. Consumers are also more likely to retain information if a person has a strong
interest in the motivation. So marketers must be creative and use various means to deliver their
message. Once the message reaches consumer, it must be interesting enough to capture their
attention.

Knowledge is the sum of all information known by a person. It is the facts of the world as he/she
knows it and the depth of knowledge is a function of the breadth of worldly experiences and the
strength of an individual’s long-term memory. Obviously what exists as knowledge to an
individual depends on how an individual’s perceptual filter makes sense of the information it is
exposed to. Louis Vuitton product knowledge has been recognized by most of consumer that it is
handmade – product with long history of achievements and success. Moreover, nowadays,
customer can easily access to all the information about LV brand through their official websites,
whereby buyer can view all the new arrival products, new catalogue, new designs as well as all
pricing listed in the stores. This developing method to encourage consumers to explore more
information will help in brand awareness enhancement.

Another influence factors is attitude, which refers to what a person feels or believes about
something. Additionally, attitude may be reflected in how an individual acts based on his or her
beliefs. Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative
attitude toward a particular issue it will take considerable effort to change what they believe to be
true. Although Louis Vuitton is a successful brand, they don’t provide a retail experience that
satisfies customers, unless you are a celebrity or dress like the rich and famous, the sales staffs
usually ignores you. This is one of the main problems of LV marketers at the moment. One
customer’s feedback is the key issue shaping a purchase decision for others. Many responses from
LV bag shopper in Singapore were bad experiences with the shop attendants and brand loyalty is
no longer in their mind.

Motivation relates to our desire to achieve a certain outcome. Many internal factors we have
already discussed can affect a customer’s desire to achieve a certain outcome but there are others.
For instance, when it comes to making purchase decisions customers’ motivation could be affected
by such issues as financial position (e.g., Can I afford the purchase?), time constraints (e.g., Do I
need to make the purchase quickly?), overall value (e.g., Am I getting my money’s worth?), and
perceived risk (e.g., What happens if I make a bad decision?). Highly motivated shoppers will
want to get mentally and physically involved in the purchase process. As they consider the LV bag
is a luxury items, therefore for those first -time buyer, the process will take longer along the higher
perceived risk even though they have strong motivation to buy a LV bag.

External Influences

Consumer purchasing decisions are often affected by factors that are outside of their control but
have direct or indirect impact on how we live and what we consume. One example of this is cultural
factor. Culture represents the behavior, beliefs and, in many cases, the way we act learned by
interacting or observing other members of society. In this way much of what we do is shared
behavior, passed along from one member of society to another. This influenced factor will help
the brand to do better positioning by enhancing its status symbols in its wealthy market such as
China, Japan, India and other developing countries. It has been reported that the important market
of Louis Vuitton is not where its original is, but the Asia countries such as: China, Singapore,
Hongkong, Korea, Japan, etc. The culture of Asian people is likely to show off their wealthy and
their luxury belongings to others. They believe that they will look better and high-class level with
all those branded items.

A purchase decision can be strongly affected by the situation in which people find themselves. In
general, a situation is the circumstances a person faces when making a purchase decision, such as
the nature of their physical environment, their emotional state, or time constraints. Not all
situations are controllable, in which case a consumer may not follow their normal process for
making a purchase decision. For instance, if a person needs a product quickly and a store does not
carry the brand they normally purchase, the customer may choose a competitor’s product instead
of reserving the LV boutique stores. Therefore the efficiency of the staff’s professionalism and the
handling skills are very important in serving customer’s request. They can politely talk to customer
and persuade them to wait for the stock from another store.

Recommendations

Companies are interested in consumer behavior because they can develop marketing strategies to
influence consumers to purchase their products based on consumer analysis. The success of a
company’s marketing strategy will depend on how buyers react to it. To find out what satisfied
customers, marketers must examine the main influences on what, where, when and how customers
buy goods and services. By understanding these factors better, marketers are better able to predict
how consumers will respond to marketing strategies. Ultimately, this information helps companies
compete more effectively in the marketplace and leads to more satisfied customers.

Although Louis Vuitton is a successful brand, they don’t provide a high customs satisfaction.
Improving customer in-store service satisfaction should be a means but not the end. The loyalty
enhancement for a branding strategy is the important attribute to purchases. If they only focus on
product attributes, they can only achieve a great awareness of branding, but no impact at all on
improving sales performance as customer is unlikely to repeat purchase.
 CHAPTER-4

DATA ANALYSIS & INTERPRETATION AND

FINDINGS
DATA ANALYSIS:
1.

RESPONSE NO OF RESPONDENTS PERCENTAGE

Every stores 5 11.1%
Selective stores 30 55.6%
Not available in your area 15 33.3%

INTERPRETATION:
From the given survey we can understand that the majority of respondents are selective stores i.e
55.6% , 5 of the respondents prefer every store i.e 11.1% ,15 of the respondents prefer stores not
available in your area .
2.

RESPONSE NO OF RESPONDENTS PERCENTAGE

Over paid
Slightly over priced

INTERPRETATION:
3.

RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
4.

RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
5.

RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
6.

RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
7.

RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
RESPONSE NO OF RESPONDENTS PERCENTAGE

INTERPRETATION:
 CHAPTER -5

SUMMARY AND SUGGESTIONS

SUMMARY

Recommendations

Companies are interested in consumer behavior because they can develop marketing strategies to
influence consumers to purchase their products based on consumer analysis. The success of a
company’s marketing strategy will depend on how buyers react to it. To find out what satisfied
customers, marketers must examine the main influences on what, where, when and how customers
buy goods and services. By understanding these factors better, marketers are better able to predict
how consumers will respond to marketing strategies. Ultimately, this information helps companies
compete more effectively in the marketplace and leads to more satisfied customers.

Although Louis Vuitton is a successful brand, they don’t provide a high customs satisfaction.
Improving customer in-store service satisfaction should be a means but not the end. The loyalty
enhancement for a branding strategy is the important attribute to purchases. If they only focus on
product attributes, they can only achieve a great awareness of branding, but no impact at all on
improving sales performance as customer is unlikely to repeat purchase.