BRAND EXTENSION OF

LOUIS VUITTON

PRESENTED BY:
Debopriya Saha, Karishma Raj, Priyanka Kumari, Ridhi Prakash,
Ruchi Ratan, Simran Singh
ABOUT LOUIS VUITTON
INTRODUCTION

 Louis Vuitton is a luxury fashion house that was founded in 1854 by a

French craftsman and trunk maker .

 At the time the company was founded, travelers were using horse drawn
carriages, boats and trains as means of transportation, meaning baggage was
often treated with poor care and travelers were referring to craftsmen in
order to protect and pack their items.

 The company quickly became a success as since the beginning it has been
able to differentiate itself and meet the specific requirements of consumers'
needs by adapting its designs and materials to create distinctive products
always inspired around the theme of travel.
MARKETING MIX
PRODUCT PRICE
 It is a brand that deals in the manufacture and sales of  Louis Vuitton has made handsome investments to maintain
specialized products. the rich quality of its products. The contemporary designs of
 The main emphasis of the company is on the premium quality the products have helped the company to maintain a premium
of the goods. In order to supply the best imaginable products, pricing policy.
the company has always focused on the designs that are  The company is said to have been following a policy of value
intricately created and artisanship that is traditional as well as based pricing strategy.
simply exquisite.  As the cost price of the products is actually much higher
 The portfolio of luxury goods that the company deals in because of its uniqueness, material and quality the value of
includes items like leather goods that are made from hundred the product simply results in premium pricing.
percent original leather and exclusive ready- to-wear clothes  A Louis Vuitton product is actually a style statement and
line that are designed with utmost care and are hundred hence, the customer is happy to pay the exorbitant prices.
percent original.

PLACE PROMOTION
 Louis Vuitton is very clear in its distribution policies. Its  Louis Vuitton has employed a promotional strategy for its
products are highly exclusive and sold with the same mindset products with the help of celebrity endorsements. Famous
of providing exclusive accessibility. actors like Jennifer Lopez, Kate Moss, Scarlett Johansson and
 The sale of these items is through Uma Thurman have been associated with the brand as its
limited channels of exclusive distribution. The company is of ambassadors.
a set and preconceived mindset that allows them to use its  Louis Vuitton has also taken an active part in sponsoring
own outlets for product distribution. mega sporting events like motorsports and yachting.
 The company does not advertise on television but it does
follow a policy of high profile advertisement in newspapers
and fashion magazines. 
SEGMENTATION TARGETING POSITIONING
(STP)
SEGMENTATION STRATEGY

 DEMOGRAPHIC

• Louis Vuitton target consumers both men and women from 18 to 60 years old. The brand has recently decided to extend its
target market to include Generation Z and millennials due to their growing spending in luxury goods and their potential to
drive the luxury market by 50% by 2025. 
• Ethnicity: 68% of consumers come from a white ethnicity.

 GEOGRAPHICAL

• The brand strategically targeting on a global scale. Their target resides mostly in West and Central Europe, US and Asian
countries. The brand is now heavily targeting China due to a rise of a fashion-savvy middle class highly spending on
luxury goods and accounting for one third of the world's luxury sales. 
• Moreover, India has been a potential focus of target due to the growing segment of HENRYS (High-Earners-Not–Rich-
Yet) and a growing middle class who has changed traditional views of luxury products by opening up to innovation and
creativity.
 PSYCHOGRAPHIC

• Louis Vuitton's consumers are in the high resource group of thinkers and achievers as they are motivated by achievements and
ideals.
• They enjoy travelling in a luxurious way, like fine dining and participate in sports activities often for social gathering. Their
interests are in fashion, arts, music and entertainment. They believe spending time with family is important and believe
sustainability is important.
• Furthermore, Louis Vuitton's consumers are also experiencers, which is the youngest group segment motivated by self-expression
and spend heavily on clothing and luxury.

 BEHAVIOURAL

• Occasion: Recognize the need to carry luxury handbags or wear highly fashionable ready to wear.

• Benefit: Quality and craftsmanship are tangible benefits sought for initial purchase, but consumers are also willing to pay the
premium price to demonstrate a prestigious status or fulfillment.

• User status: They are regular and heavy users who engage with the brand and purchase frequently.

• Loyal status: highly loyal customer base who continually purchase the brand to enhance their appearance and status quo and
believe “one Louis Vuitton item in the closet looks too lonely”.
TARGETING

 Differentiating targeting strategy has been used by LV to satisfy the changing needs of the customers.

 Current Target Market:

• Louis Vuitton targets consumers that value fine craftsmanship, tradition, style, and above all else, exclusivity.
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.
• The average Louis Vuitton consumer is a part of the upper economic and social class and is fashionably aware.
These consumers have the need to feel prestigious and emphasize the importance of self-esteem and power.

POSITIONING

 The brand positions itself as a symbol of superiority. It uses value-based positioning strategies to attract the
potential customers in the market.
POSITIONING MAP

 The positioning map is based on price and

exclusivity as shown in the figure.

 Louis Vuitton position itself among

competitors as exclusive and prestigious.
BRAND EXTENSION:
SKIN CARE AND COSMETICS
LUXURY SKIN CARE AND COSMETICS MARKET

 In the twenty-first century, beauty has been reimagined as a result of increased focus of consumers on skincare and
cosmetics needs. The focus has ultimately shifted toward high end luxury products with premium quality and organic
ingredients.
 2018 was the year of expensive skincare for Big Beauty. Per recent earnings reports from beauty industry giants, and
analyses from several research firms, skincare has overtaken makeup and is showing no sign of slowing down.
 Due to the increase in prevalence of skin and health care among individuals worldwide, there is excessive demand for plant
extracts. The urge to improve current lifestyle along with growth in disposable income is considerably affecting the growth
of the cosmetics market.
 The expansion of high-income class and increase in travelers worldwide are two major factors positively impacting the
growth of the luxury cosmetics market. The rise in disposable income among the urban populace of developing economies
and increase in health concerns, have led to an upsurge in demand for luxury products manufactured using organic and
premium quality ingredients. This consumer behavior pattern has essentially driven the growth of luxury cosmetics market
globally.
 Horizontal category extension for the brand to enter in the cosmetics and skin care market.
 It would be an opportunity for the brand to meet existing luxury consumers' cosmetics and skin care needs whilst further
drive a younger market.
REVENUE OF COLOR COSMETICS FOR PREMIUM PRODUCTS

Source: Mintel (2018)

MARKET SHARE OF THE TOP 10 FACE COLOR COSMETICS COMPANIES
 

Source: Mintel (2018)

 According to Mintel (2018), 36% of cosmetics buyers prefer premium brands and 13% of female buyers have
increased their spending on premium products compared to the previous year.

 Furthermore, top products that consumers like to purchase from premium brands are mascara (57%) and lipsticks
(49%) , followed by nail polish (41%) (Mintel, 2019).
REVENUE GROWTH IN FUTURE
RETAIL SALES VALUE OF LEADING FACIAL CARE MARKETS WORLDWIDE
TARGET MARKET

• The new cosmetic line will consider consumers Gen Z and Millennials as their main target market.
• Image and appearances are very important for them and therefore they are willing to pay premium prices
for beauty products from luxury brands in order to improve their feelings toward their appearance.
• Gen Z and Millennials would be highly be attracted as despite driving the luxury spend market, they are
considered highly profitable consumers for Louis Vuitton, which has received 33% of its profits from last
year from consumers aged 21-37.
PRODUCT RANGE

 Water based, Plant based, organic, natural ingredients and creative collaborations are the next market significant
trend (WGSN Skincare products summer 2018 report).
 The high-end beauty and skin care industry is largely driven by fast disappearing fads. The ability to harness rising,
robust trends and understand the bigger implications driving them is vital for brand growth.
 Our proposed skincare line not only will touch bases on these product but will also go one step further by offering
100% recyclable packaging for all product range.
 Product range will include daily regime skin care products like: Facial cleanser, Exfoliator, Moisturizer, Facial
masks, Serum, Eye creams; and cosmetic products like: Foundation, Kohl, Mascara, Face Blush, Illuminator,
Lipstick.
REVITALIZING SLEEPING MASK AMBIENT LIGHTING BLUSH

LIQUID
EXFOLIATING ILLUMINATOR
GLOW POTION

HYDRATING
SOFT FLUID LONG WEAR BEAUTY CLEANSER

COSMETICS AND
SKINCARE PRODUCTS
CURL ELEVATION SMUDGE PROOF KOHL
MASCARA SHIMMER LIPSTICK

EYE CONTOUR CREAM THE DEWY

RESURFACING SERUM
SKIN CREAM
PRICING STRATEGY

 LV will use the premium pricing strategy.

 Prices will be higher than competitors (i.e., SK-II, Christian Dior, Chanel) in order to maintain the brand's
exclusivity.
 Price range for skin care products will be between $80 - $375, and for cosmetics, it will range between $70 and
$450.
 The segment of population targeting for these products are generally not very price conscious and are willing to
pay for the status symbol of these luxurious products and the brand has already developed a loyalty based
relationship with their customers allowing them to charge higher for the products.
 Testers and freebies will be restricted to maintain the value of the brand.
PACKAGING

• Premium packaging • Personalized packaging

• Recyclable packaging • Refillable packaging
TRAVEL KITS FOR SKIN CARE RANGE

• The products will also be provided as customized mini kits in

signature LV pouch which would be travel friendly.
• Elevating skin care from a one-step obligation to a multi-sensory
experience, the tenets of Korean approach involves an arsenal of
varying luxury skin care products that comprise a 7 to 10 step
regimen.
• Thus travel kit will help customers avail there luxury skincare
regime anywhere they are.
• Each kit will be customized by the needs of customer and will
include their initials on pouch.
• They can also choose variety of color options for their pouch which
will give they a great experience.
CUSTOMIZED COSMETICS FOR PREMIUM CUSTOMERS
PLACEMENT STRATEGY
 In terms of value, the four biggest markets for the LV skincare and cosmetics line are the United States, Japan, Italy and
China, collectively accounting for almost half of total luxury good sales.
 Primary and first markets to launch is Japan and China. Distribution channels include department stores and pop up
shops .
 Next launch market will be the U.S. As the skincare line is launching in the U.S., the Milan flagship store will carry the
full line, and a new beauty bar will be added to the store’s layout.
 New LV operated locations across the globe will carry skin care and cosmetics line with each store opening offering a
gift with purchase novelty based on regional preference.
PROMOTIONAL STRATEGY
LIMITED EDITONS AND COLLABS

• The term “Special Edition” or “Limited Edition” when used in

marketing management, intends to give the product something new
and previously unseen in the regular edition. Limited Edition
marketing strategy carries a sense of immediacy and exclusivity as the
products would only be available for a short time and/or in limited
numbers.
• For example if LV cosmetics produces a limited edition run of
Animalier Bronzer.
• LV also can focus on Occasional edition like Christmas or Holiday
season to attract high end customers who would be looking for special
gifting options.
• Also collabs with relevant influencers and celebs will create a buzz
among the customers.
INFLUENCER MARKETING

• Increase brand awareness and connect with their ideal clientele.

• 73% of marketers say that influencer content was “effective“ or “highly effective” for their brand.
• 92% of consumer trusting influencers content more than ads or celebrity endorsements
• We can invite influencers to attend first launch of product, so that they can share from the event. 
• Collaborate with influencers whose content will be on-brand for social sharing so the brand can implement it into their native
publishing schedule with image credits.
FASHION AND AWARD SHOWS

• It will help in creating interest among the public to spread awareness about LV extension products.
• These shows help to draw public attention. 
• After the show LV can open online offer of limited stocks for limited time period, so consumer can’t wait more to buy.
HIGH FASHION MAGAZINE AND LV MAGAZINE
• Collaborate with high fashion magazine and change the concept of consumer about makeup and skin care.
• LV can also promote their extension products range in their magazine.
BENEFITS

• Possibility of attracting a younger segment which have currently less spending, but they can be converted into loyal spenders as
they grow
• Positively increase brand image
• Stronger relationship with loyal customers which can use the brand in another "context“
• Since the beauty market is new for Louis Vuitton, consumers who are currently buying competitors' beauty products but normally
purchase Louis Vuitton products could shift and increase customers' base
• It can boost sales and steal market share to profitable competitors in the market
• Increase its competitive advantage in terms of product and materials innovation
• The brand has already high levels of perceived quality, therefore the extension product should benefit from that relationship and
receive positive associations
• Increase brand awareness and brand recognition by doing events and beauty activities with make up specialists
RISKS

• Damage or weaken to existing brand image in case of negative associations.

• Strong established competitors in the market
• Saturated market and high entry costs.
CONCLUSION

• From the analysis it is clear that despite previous challenges around brand image, the brand has been able to
maintain a strong positioning in the luxury market among competitors by constant product and design innovation.
• The brand's strong positioning and positive associations allow to considerate possible brand extensions in the
cosmetic market.
• In order to attract new consumers in a very challenging industry it can be required to innovate brand's strategies.
• With Asian markets identified as high potential markets for the skin and facial category our brand extension line
will be the strongest vehicle to capitalize on regional consumers habits and purchasing power.
• Also keeping in line with sustainable beauty trends along with focus on natural ingredients this product line will be
operating within the circular luxury economy and consumer demand for ingredient transparency.
• Strong packaging in line with the brand aesthetic that is reusable and recyclable and takes its cues from existing
beauty packaging RTW runway themes will solidify the cosmetic line within its brand portfolio.
THANK YOU