Grading Course Name Louis Vuitton Student's Name Professor's Name [optional] University Table of Contents 1. EXECUTIVE SUMMARY..........................................................................................................3 2. GENERAL COMPANY DESCRIPTION...................................................................................4 3. COMPETITIVE INDUSTRY ANALYSIS.................................................................................7 PORTER'S FIVE FORCES........................................................................................................................7 COMPETITIVE SWOT...........................................................................................................................9 4. MARKET STRATEGIES..........................................................................................................10 COMPETITIVE PRODUCT AND PRICE ANALYSIS..................................................................................10 CUSTOMER DEMOGRAPHICS...............................................................................................................11 MARKETING AND DISTRIBUTION STRATEGIES...................................................................................12 5. DESIGN AND DEVELOPMENT PLAN..................................................................................14 6. OPERATIONS AND MANAGEMENT PLAN........................................................................15 DEVELOPMENT CALENDAR................................................................................................................16 7. FINANCIAL FACTORS............................................................................................................17 8. LOOKING FORWARD.............................................................................................................18 CONCLUSION..................................................................................................................................24 1. Executive Summary Louis Vuitton is an internationally recognized name in the luxury and fashion world. It was awarded six times for the world's most valuable luxury brand. Founded around 262 years ago in Paris (France), the company has its presence in more than 50 countries. It sells a wide range of fashion products including bags, clothing, shoes, accessories and jewellery through standalone boutiques, department stores, and also through the ecommerce website. Total company valuation in 2012 was US$25.9 billion. Michael Burke is the current Chairman and CEO of the company and Nicolas Ghesquiere is the Creative Director. The 'Mens Ready-to-Wear' Style Director is Kim Jones whiel Csar Rubio is also its Creative Director. However, LV is a globally recognized brand that is planning to expand to all the major regions of Asia, America and Europe. Ever since its foundation in 1854, LV has been operating for production of quality products in luxury class of goods and its cost structure of LV is also simply based on the cost of production of these goods. The revenue models is based on sales of these goods. Value increment through high class high quality products that can become a status symbol is the business model of LV. The company specifically targets luxury shoppers, demographically high income class people aged above 22 years. The LV customer base is filled with brand loyal, fashion moving and quality sophisticated customers. The retail fashion industry is full of competition with the availability of a wide range of brands and close substitutes. The major competitors of LV include the names of Fendi, Hermes, Gucci, and Prada. Hence, we are focusing on differentiation and innovation strategies to take an edge over our competitors. In such stiff competition a company needs to move strategically to survive and grow its business. LV has been the top brand of the world a few years ago and the company wants that position back into its name. Also, the position should be retained is the aim LV management is working for. Expansion and differentiation are two most effective and prime business strategies that have worked in fashion industry almost always. There is increased sophistication and customization in the fashion world demanding fashionable accessories like handbags to be more innovative. A company in the industry not only has to follow the prevailing market trends to stay in competition but also needs to identify the unstated preferences of customers and match their expectations in a surprising manner so as to take competitive edge. Besides this, it is also important to expand to the international market. Global recognition is very important a company in any industry today, however in fashion industry trends travel much faster than in any other industry. It is therefore important for a fashion brand to expand globally. For Louis Vuitton there is enough scope in Asian markets like China, Hong Kong and Thailand. Hence, the company should expand its business to these countries with some innovative products that are most likely to attract customers based in these countries. After a deep market research in the industry we have contrived a five year business growth plan for LV. This plan is based on year by year expansion in LV's products and customers base. All these new ideas need to be financed by potential investors. This report provides a brief description of LV's business and details the growth plan for coming five years so that potential investors can be attracted to finance our business growth. 2. General Company Description Louis Vuitton is a top of the line extravagant retail organization, furnishing clients with top quality items running from extravagance trunks and leather products to shoes, watches, adornments, shades, and books. There are currently 1, 25,000 employees in the company and headed by Bernard Arnault. The mission of the Louis Vuitton is to be in congruity with gracefulness and originality through this objective LV speaks to the most refined characteristics of Western design over the world. The items mirror the mix of convention and advancement. This reflection makes an encapsulation of social values that emanate the embodiment and figment of human dream. Generally, the vision to meet the key estimations of all partners is a top need that incorporates item perfection, and an enthusiastic picture of the brand. Louis Vuitton characterizes itself of fulfilling its client base need by creating top of the line items for voyagers and early adopters of vogue as well as the slow developers. Clients of Louis Vuitton make progress toward magnificence in a quality item. This is met with style and inventiveness. Louis Vuitton need to focus on the long haul goals to deal with the present issues and the basic values and morals that represent the company mission. Counterfeiting is the major problem faced by Louis Vuitton presently. Though a lot has been done to get rid of this problem and is the major cause of the declining sales of the brand. Louis Vuitton has made itself a benchmark in history which is reflected through its vision for greatness. Greatness can be seen in numerous parts of the organization and its dealings. This vision is not one met so effectively but rather LV has kept on clearing a street of development, custom, and culture. Skill and the experience Louis Vuitton picked up added to his sharp recognition for quality that has made his legacy survive making a novel picture of the brand. An exceptional brand logo and outline has presented top notch craftsmanship that individuals esteem. Strategy that worked for Louis Vuitton is differentiation. With the advancement in technology and the use of best quality raw materials for production has been the major stepping stone of success for the company. Costing also plays an important role building up the brand image. High pricing straightaway sets an image of the product being of good quality to the customer. Buyers have a habit of comparing between the different brands and it has been observed that preference is given to the one with a high price tag. With the introduction of the pet series, pet enthusiasts are likely to take interest. Louis Vuitton faces high level competition in its industry from brands like Hermes, Gucci, Prada etc. Louis Vuitton is currently looking forward to ramp up the business in countries like China and India. It is also looking an increasing more sophistication into its products range so as to attract more customers in the market. The total estimated worth of Louis Vuitton is $27.3 billion and the total sales worth is $10 billion. The projected revenue of Louis Vuitton for the year 2017 with 56 styles and 224 merchandise is $2, 85,000 with an estimated cost of $99,750 and a total gross profit of $1,85,250. Business Description Louis Vuitton's extravagant products are outstanding for their solidness and uniqueness. Louis Vuitton focused at both female and male working grown-ups with high buying power and the needs to fulfil their social acknowledgment. As per Bloomberg.com "Louis Vuitton is the world's most important extravagance mark for seven sequential years." Louis Vuitton has effectively conveyed extraordinary esteem for cash on their extravagance things to guarantee their clients are happy with their buys. Subsequently, high shot of repurchasing of its extravagance products. The French made extravagance merchandise are high quality in Italy and it makes a decent impression to clients that Louis Vuitton items are all around analysed by experienced artisanal to guarantee the nature of every items. In like manner, Louis Vuitton items give the agreeable sentiments to buyers, as the French made items are strong, strong, and esteem for cash. The brand situating for Louis Vuitton is unmistakably underlined on the high form mark with prevalent quality, straightforward yet great outlines, and selectiveness of the items. The company operates in 50 countries with more than 460 stores worldwide. The valuation of the brand was US$28.4 billion with a sales of US$9.4 billion. With the introduction of the pet series, Louis Vuitton is likely to soar high in terms of capital and is expected to rise above its doom period. 3. Competitive Industry Analysis The Value of the personal luxury goods market worldwide is estimated to be of 253billion. The Brand value of Louis Vuitton is $28,508million while that of Prada's compound annual growth rate 18.1%. The total revenue of the LVMH Group worldwide 35,664million while that of Herms worldwide 4,841million. (Statistia: Facts on the global luxury goods industry) Porter's Five Forces 1. Threats of substitutes: Low There are specific target consumers of Louis Vuitton who are usually brand loyal and hardly switch over to other brands. Affluence is flaunted by owning an LV branded product. Hence, there exists low threat of substitutes. However, there is very small segment of these brand loyal luxury buying customers specially centred to some part of USA and Europe. In the rest of the world, especially in Asian markets like China and India, counterfeit products are very popular and there is huge customer base that prefers those counterfeit products. 2. Threats of new entrants: Low To build up a brand like LV requires a lot of capital. Brand acknowledgment and dependability are among the fundamental components that drive centre to-high pay workers towards extravagance organizations, like, Louis Vuitton. It is hard to accomplish this position in the market without making noteworthy speculations. Hence, high entry barrier exist in this luxury industry which make the treat of new entrants low for LV. 3. Bargaining power of suppliers: Low Louis Vuitton does not fabricate its own items. Rather, it depends on makers situated in different nations. By constraining the ability to play suppliers in opposition to each other, LV would have the capacity to spare expenses on storage room and able in ensuring the nature of items supplied. On account of LV's haggling force of suppliers is generally low. This is on the grounds that the organization frequently buys crude materials from suppliers in premise of committal. With this technique, it diminishes the misfortune checking and builds up economies of scale. 4. Bargaining power of customers: Low Louis Vuitton offers through both, the direct-to-shopper channel and the wholesale channel. The immediate channel, which incorporates Louis Vuitton worked stores and e-trade deals represented around 89% of its aggregate deals in financial 2012. Since wholesale clients represent just around 10% of the aggregate deals, we trust their bartering force is restricted. The dealing force of end-clients is direct. Louis Vuitton has situated itself as a selective extravagance mark and appreciates solid brand acknowledgment because of its superb items. The clients' dealing force will stay low later on as Louis Vuitton's endeavours to reinvigorate its image offer will be balanced by rising rivalry in the market. 5. Rivalry among competitors: Moderate The aggressiveness in the business can be qualified as moderately high, however given the high edges and the client's discernment about the value, the opposition is not on cost, but instead on quality and picture observation, and additionally on the capacity to draw in the right creators with right capacities. LV has increased numerous opponents in the extravagance mark industry, for example, Versace, Hermes, Burberry, Chanel, Prada, Gucci, Versace, Hermes et cetera. After analysing these five forces we can say that the rising rivalry and embellishments market is a superseding sympathy toward Louis Vuitton's stock in the close term. Louis Vuitton is embraced a change system to advance into a worldwide way of life brand secured in frill. Nonetheless, this change will take no less than a couple of more quarters to procure the craved results. Increased private name offerings by wholesale clients additionally increment the opposition for Louis Vuitton. Competitive SWOT LV SWOT Analysis Strengths Weakness Successful entry into various fashion No discount or sales promotion. avenues - fragrance, accessories and Market expansion to new region (China apparel. and Russia). Powerful and prestigious brand image. Restricted retail opportunities. Hand made in Italy and distributed to other countries. Threats Opportunities Increasing labour costs. Frequent exhibitions and events. Government regulation. Intense competition. Prada SWOT Analysis Strengths Weakness Powerful and prestigious brand image. High spending on taxes. Financially sound business condition. Limited presence in emerging markets. Threats Opportunities Increasing labour costs. Mergers and acquisition of other brands. Government regulation. New product lines. Intense competition. New Markets. Strengths Gucci SWOT Analysis Weakness High brand value and strong international market presence. Widely diversified products for fashion industry makes it a one stop shop. Threats Government regulation. Intense competition. Adverse impact on business by counterfeit and trademark infringement. Promotions making erotic brand image. Opportunities Emerging markets. Increasing expenditure on fashion. 4. Market Strategies Competitive Product and Price Analysis Louis Vuitton is clear in its conveyance strategies. Its items are exceptionally select and sold with the same mentality of giving elite openness. To buy a Louis Vuitton item the client needs to achieve its customized stores. The offer of these things is through restricted channels of select circulation. The organization is of a set and biased mentality that permits them to utilize its own particular outlets for item dispersion. The marketing will be carried out mainly through the brand's Website, online advertising on portals like Instagra4.m etc.. The marketing strategy of Louis Vuitton can be broken down into 4 P's namely Product, Price, Place and Promotion. For the most part, low costs are viewed as key to item achievement, however extravagance brands are valued high. In the event that a few people aren't griping about your costs, it's said, they aren't sufficiently high. That might be valid for general market items and administrations, however extravagance items are, in any event to some extent, characterized by their higher cost. Still, trust is vital to extravagance brands, and if your costs are seen to be falsely high the system will reverse discharge. Choose to price in terms of value rather than price. High-price makes consumers feel that they are part of an exclusive society when they carry a Louis Vuitton bag. Driving expense out of an item by tolerating sufficient quality may work for a mass-showcase mark, however extravagance marking is based on an establishment of value, regardless of the fact that it implies a higher cost. An unremarkable extravagant item will never accomplish extravagance status. Louis Vuitton has established itself as a handbag, and it has a unique quality that makes customers choose. Customer Demographics The products are going to resonate with a majority of people falling under the age group of 18-55. The gender ratio is female (60%) and male (40%). Customers with an average income of $75k annually are likely to buy the product. Majority of the customers are located in America, Asia and Europe. Age 18-55 Gender Female 60%, Male 40% Income $75k annually Location America, Asia, Europe Marketing and Distribution Strategies In the general market, the start is that expansive conveyance accomplishes the best deals. Be that as it may, restricted conveyance increments saw elite-ness an imperative segment of an extravagance mark. Louis Vuitton boutique and limited number of high end department stores (under the exclusive control of LV) - make consumers feel that Louis Vuitton is such a valuable product as its stores few in number. Online channel (LV official website). New product launches/Fashion Shows. High-volume mass promoting and hard-offer verbiage may work for general items, yet for extravagance brands, picture advertisements and focused on exposure pass on the right message. Mass media advertisement Sponsorship of events or organizing any pet event at a large platform will help reaching out to potential customers. Celebrities advertisements - done in order to target the affective component of consumers' attitudes Target Customers Louis Vuitton ought to market its items in new markets for better sales. This procedure would empower the organization to gain new clients. The organization ought to then detail a few methodologies that would help in building up these business sectors. Enhancement would likewise help in securing Louis Vuitton. The organization ought to make new items that objective an alternate market section. To target more customers, Louis Vuitton can bring down their costs, so that the clients can serenely purchase and Louis Vuitton sack without feeling regretful for making a costly buy while the economy is terrible. Louis Vuitton never has a deal on its items, so the time might be a good fit for the brand to publicize and have a deal for specific results of its image. The principal deal by Louis Vuitton will stop people in their tracks and it has a tremendous shot of increasing potential clients who might typically by a fake pack in view of the high cost of the credible sacks. It cannot be a hopeless scenario for the organization if there was a deal since offering a few packs underneath the ordinary cost is superior to not offering any sacks by any stretch of the imagination. Something else that Louis Vuitton can do is run a couple of specials on some of their items to lure faithful clients and potential clients to make buys that they regularly would not on account of they couldn't bear the cost of a genuine Louis Vuitton without the unique. Louis Vuitton has a couple of choices that they can actualize to make deals amid this bleak financial environment. Value Proposition Louis Vuitton is characterized by the estimations of amazing extravagance satchels and the assurance of their legacy. Over the traverse of history, LV has fabricated a global notoriety for extraordinary quality, innovativeness and craftsmanship. The production of their purses originates from years of training and experience. Their e-trade esteem recommendation is recounted through a story demonstrating the abnormal state of craftsmanship that is put into the making of the satchels, and the rich nature of materials utilized as a part of generation. LV satchels values quality, imagination, legacy and craftsmanship. The esteem suggestion of the totes to the shopper is particularly solidness, magnificence and class. All items are broadly tried to ensure that they can withstand wear and tear, and that there are no defects. In an exertion, to keep up the eminence picture of a Louis Vuitton item, the organization works a valuing uprightness technique amongst its whole conveyance arrange, a Louis Vuitton sack is never diminished in cost, there are no deal periods. Pets/Animals lover will take high interest in the product. Worldwide dissemination capacities, which Louis Vuitton has since it has circulation, item advancement. In conclusion, Louis Vuitton has demonstrated the capacity to make excellent items. 5. Design and Development Plan It is always a fight between innovation and association. The designs of the handbag mirror a cutting edge over the past designs. In today's consumer industry, the product itself is the greatest marketing tool and hence the design has to be such that it itself attracts customer towards it. By working together with the designers, organizations and the employees dealing directly with the customers, the designs will be further enhanced so as to reach to a large customer base. The design has to be such that it should not compromise with the quality that Louis Vuitton has been providing since years, yet it should also attract new customer base, the ultimate goal being the revenue. The employees will be hired in such a way that there is no employee shortage and all the time slots employees i.e. the full time employees, part time employees etc. will be available so as to ensure proper functioning of the unit. The suppliers will be well informed in advance about the components that are needed to avoid a haphazard situation and an efficient communication will be established with the suppliers. The equipment in use will be checked on a monthly basis and their maintenance costs will be taken care off. Our equipment is way too efficient as compared to the ones with our competitors, hence there is no lagging behind because of the equipment. The expected life cycle of the product depends on how the consumer uses it but as long as the product is used with care, it is going to last for years. 6. Operations and Management Plan The operations and management is headed by expert managers who are assigned with different departments. Manager and employees maintain a healthy relationship and they motivate each other. The team is chosen strategically keeping the ultimate goal in mind. Figure 1: Cost Sheet Figure 2: Tech Pack Development Calendar The development calendar encloses all the details of the tasks that have to be carried out, to whom they are assigned, their proposed starting and ending dates. Figure 3: Development Calendar Figure 4: Development Calendar 7. Financial Factors Yearly deals incomes in the course of recent years have been milder than in years past. From 2013 to 2014 deals have developed from 20.02B to 30.63B, an expansion from 3.25% in 2013 to 5.59% in 2014. This is a decay from the twofold digit increments from years past. The organization delighted in deals development in 2011 of 16.43% and 18.78% in 2012. Contenders, for example, Gucci, Yves Saint Laurent and Prada have additionally reported delicate deals. To battle the moderating deals, LV has introduced a new series i.e. the pet series which is likely to increase the annual sales of the brand. The projected revenue of Louis Vuitton for the year 2017 with 56 styles and 224 merchandise is $2,85,000 with an estimated cost of $99,750 and a total gross profit of $1,85,250. Figure 5: Line Plan Figure 6: Costing Plan 8. Looking Forward Under the discussed above business environment, LV has a growth plan for coming five years which are discussed below: Year 1: Pet Series Bags. Analysis: The pet care industry is getting prosper by leaps and bounce. The high income people are fond of pets and spend a lot on them. As per the American Pet Products Association, the US pet industry has crossed $60 billion in 2015 and is expected to make $62.75 in 2016. The industry is expected to growth 4% annually till 2018 as per projections. As per the following statistics, the pet supplies market has grown sharply from in the last 10 years. Target customers: LV is a supplier of luxury products and its customers highly affluent wiling to own status and sophistication. These customers are quite likely to be interested in the safety and comfort of their pets when they are being carried with them. LV designed and branded pet series bags can become the solution for the need of those customers. Product and market details: These bags would be spacy, made of soft fabric, lightweight, easy to carry and absolutely classy. There are currently no close competitors of LV who are designing the same and hence Louis Vuitton have the first mover advantage in the market. Also, the product would face no tough rivalry from other high end brands. Thus LV this pet series is expected to break all set of records for the company and bring in fruitful results. Year 2: Zodiac Signs Handbags in China Analysis: China is one of the fastest growing retails markets in the world. It is, thus, imperative for a brand like LV to make its official presence in Asian markets and China is the best market to start with. This is because Louis Vuitton is particular favourite brand for the Chines. Research has shown Chinese people chose for brand exclusivity as one of the main reasons for preferring international brands. The main reason for Chinese shop for luxury items abroad is to avoid high tariffs, but another reason should not be ignore is that some collections and items are exclusively sold overseas. According to CLSA in 2010, 16% to 17% of Chinese consumers bought luxury goods as gifts, with handbags, clothing, watches and jewellery being the most popular. In accessories 37% of purchases were made for the purpose of gifting. The Chinese customers have shown high interest in LV products and can be called one of the largest consumer segment preferring LV around the world. Also, the Chinese regard their Zodiac signs as their lucky charms. Target customers: The prime target would be the Chinese customers in the Asian and other markets. These customers are affluent and have deep faith in their astrological dogmas. Product and market details: In light of the above facts, LV would launch Handbags with the Zodiac signs related to the year. For example special edition bags for the year of Fire Monkey in 2016. There may be eleven other signs, thus, eleven other editions to be sold during the respective year. The introduction of zodiac symbol on handbags will not only be an exclusive product for the Chinese market, at the same time due to the importance of Chinese symbols in Chinese culture they will hold a strong background story which would increase sales in China. The association of faith with these signs will promote the sales. Year 3: Dressing-table handbags. Analysis: Cosmetics and handbag both belong to luxury goods industry. Among the lots of things women keep in their handbags, cosmetics are the must to be kept with them. However, a handbags hardly serves to be a dressing table that has specific section for each cosmetic to be kept. Hence, the ladies are going to love a handbag that is going to be an organizer for their cosmetics to be carried with them. This would be as organized as in their dressing table itself. This series would also attract Chinese customers again as there is a growing demand for high end cosmetics in China and this is the market that we want to tap. According to Gentlemen (2015), high end positioning has not been fully exploited by brand from outside countries. Chinese women have formed the habit of wearing make-up over the years. Target customers: This would target ladies from affluent society as well as those striving for sophistication. According to statistics, in China only, the percentage of women in the age group of 20-30 years wearing makeup is 88%. While Percentage of women in the age 31-45 years is 83%. Product and market details: The product will be innovative in the category as well as a prime need server for the ladies. Women buying cosmetics can be pitched easily for this product and soon it would become a complementary product with branded cosmetics. Since this is an innovative idea LV would have first mover advantage in the market. Year 4: Kids Bags Series Analysis: As the following research analysis shows, rich people spend more money on their kids. Kids accessories market has turned into a quite attractive and profitable niche. The Affluent customers, that are prime target market of LV, needs more specialization, hence, they can be easily attracted towards LV branded kids bags series. Target customer: The LV designed kids bags would target the kids of rich and super rich people. These kids would be nurtured in due sophistication and would flaunt their class through accessories like LV bags. Product and market details: These bags would be bright in colour, comfortable, lightweight, cheerful and attractive for the kids. There is no close competitor of LV already present in the segment and this can be a very profitable niche for the luxury producer. Year 4: LV luxury in Tesla Analysis: A look at the statistics on how the affluent buyers spend their money shows that they spend most on luxury cars far more than they spend on personal luxury goods. LV would join hands with luxury car maker Tesla vehicles even more luxurious. Target customer: The superrich people who strive for luxury vehicles. This innovation would target both men and women who love luxury cars of Tesla. The prime competitor of LV, Gucci has already ventured designing the covers of various automobiles before. Product and market details: LV is going to provide Tesla with special quality leather and designs to make an add-on in luxury. LV leather would make the seats even classier. Not only this, LV would design sections of the car where things are kept with its specialization in making bags for the luxury loving world. Conclusion With these five years growth ideas the business of LV is definitely going to succeed in comparison to its rivals since all these innovative products would come with its brand name recognition to enable the rich to flaunt their class through the logo being imprinted on the canvas. References: http://www.forbes.com/sites/tomteicholz/2015/05/18/cult-of-luxury-the-luxury-businessmodel/#75d5f6ed1ffd https://www.lvmh.com/group/about-lvmh/the-lvmh-model/ http://farzanavanessahaider.blogspot.in/2014/11/porters-five-forces-on-louis-vuitton.html https://www.trefis.com/stock/coh/articles/205735/coach-through-the-lens-of-porter-fiveforces/2013-09-13 https://louisvuittonbrand.wordpress.com/company-analysis/ https://www.luxurydaily.com/louis-vuitton-continues-to-raise-brand-value-despite-industrychallenges-report/ http://yousigma.com/comparativeanalysis/lvmhmoethennessylouisvuitton.html http://blog.marketresearch.com/projected-2016-trends-in-the-pet-industry https://www.google.co.in/url? sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwjOsP6vq3QAhVBRY8KHdVFBHAQjxwIAw&url=http%3A%2F%2Ffortune.com %2F2016%2F09%2F07%2Fpets-are-basically-people %2F&psig=AFQjCNGC7YXxXRXtPo1S290XT2HuBd8Dnw&ust=1479393114271203 http://www.americanpetproducts.org/press_industrytrends.asp https://www.google.co.in/url? sa=i&rct=j&q=&esrc=s&source=imgres&cd=&ved=0ahUKEwistrHtvq3QAhULvI8KHQcjB -4QjxwIAw&url=https%3A%2F%2Fwww.pinterest.com%2Fameliabreslin%2Fstatistics %2F&psig=AFQjCNH8caqqjM67JYqF57UJ5DxNsxnV2A&ust=1479393079062809 http://www.americanpetproducts.org/press_industrytrends.asp https://www.pinterest.com/ameliabreslin/statistics/ https://www.google.co.in/url? sa=i&rct=j&q=&esrc=s&source=imgres&cd=&cad=rja&uact=8&ved=0ahUKEwiwjqSzlK_ QAhVLgI8KHdWgBakQjxwIAw&url=http%3A%2F%2Fdaddytypes.com %2F2007%2F03%2F04%2Fwsj_scoop_rich_people_spend_more_money_on_their_kids.php &psig=AFQjCNHziwmiTowQEyFsOJ-Aefh7liWJzw&ust=1479450409997219 https://www.statista.com/chart/3135/how-the-super-rich-spend-their-money/ https://www.statista.com/topics/1110/global-luxury-goods-industry/ http://www.swotanalysis24.com/swot-p/86734-swot-analysis-prada.html New collection business plan Fangdi Hou GFE721 Professor: Amanda lally Content Industry Analysis Industry Porter's 5 Forces Analysis Competitor SWOT Analysis For LV Market Strategy Operations & Management Plan Five Years Growth Plan INDUSTRY ANALYSIS Louis Vuitton Louis Vuitton was named the world's most valuable luxury brand Founded in 1854 in Paris (France), the company has its presence in more than 50 countries with more than 460 stores worldwide LV creates innovative, elegant and practical modern luxuries with quality Valuation of the brand was US$28.4 billion with a sales of US$9.4 billion Example of LV's collections Capucines Monogram Icon Rare and Exceptional Lockit What we do Pet & Luxury Pet series (Handbag/Wallet collection) Under the Louis Vuitton With Pet features Target on rich pet lover Why pets? marketplace.org INDUSTRY PORTER'S 5 FORCES ANALYSIS Competitive Rivalry The brand loyalty is significant various competitors like - Fendi, Hermes, Gucci, Prada ect Each competitor has different line up of their products Target customer is separate among different brands Currently no other luxury brand has entered into the segment of pet series Generally, low competitive rivalry in the case of luxury fashion brands industry Bargaining power of suppliers LV doesn't manufacture its own products, it dependents on getting the materials and designs supplied. Its relied on their manufactures Bargaining power of customers Majority of direct retail store, also ecommerce website The bargaining power is less in terms of luxury fashion brand industry The brand name of LV is established among the suppliers as a one of the biggest clients of apparel accessories and raw materials Being termed as a provider of high quality product, its customer base are less price sensitive Bargaining power Low Low bargaining power Threats of substitute product Specific target consumers - loyal customer base - less fear of substitute Currently no other luxury brand has entered into the segment of pet series Fendi - Monster collection may consider substitute After product launches In maturity stage of product lifecycle, other brand start to copy the idea and offer similar product (substitute) Threats of new entrants High barrier to enter luxury industry High costs for the designer Capital requirement Hard to challenge the brand name Long history while known Key supplier with very less bargaining power Competitor SWOT Analysis FOR LOUIS VUITTON Competitor- Fendi - SWOTs Strength Powerful and prestigious brand image Successful entry into various fashion avenues - fragrance, accessories and apparel Hand made in Italy and distributed to other countries Weaknesses Restricted retail opportunities No discount or sales promotion Fendi- Opportunity/Threats Opportunities Market expansion to new region (China and Russia) Frequent exhibitions and events Threats Government regulation Increasing labor costs Intense competition Competitor- Prada - SWOTs Strength Powerful and prestigious brand image Multi brands stores all over the world Bright wellknown, recognizable advertising company Weaknesses High spending on taxes Weak ecommerce participation Unfriendly policy to environment Prada- Opportunity/Threats Opportunities Product alliances with new partners Digital market Threats Increasing labor costs Government regulation Intense competition in luxury fashion Competitor- Gucci - SWOTs Strength Strong brand image Quality products Diversification Weaknesses Adverse impact on business by counterfeit and trademark infringement Lower margin Gucci- Opportunity/Threats Opportunities Growing market for luxury products in Asia Threats Government regulation Counterfeit/Cheaper substitution Market Strategy Marketing Analysis Pricing: Choose to price in terms of value rather than price High-price makes consumers feel that they are part of an exclusive society when they carry a Louis Vuitton bag Products Louis Vuitton has established itself as a handbag, and it has a unique quality that makes customers choose Pet series - put the pet features to design on the bags Placement/Distribution channel Louis Vuitton boutique and limited number of high end department stores (under the exclusive control of LV) make consumers feel that Louis Vuitton is such a valuable product as its stores few in number Online channel (LV official website) New product launches/Fashion Shows Promotional Strategy Mass media advertisement Sponsorship of events or organizing any pet event at a large platform will help reaching out to potential customers Celebrities advertisements - done in order to target the affective component of consumers' attitudes Customer Demographics Age:1855 Income: >$75k annually Gender: Female 60%, Male 40% Location: America, Asia, Europe Value Proposition Primary target - aged 18-54 with annual income of $75,000 plus. Values of high-quality luxury handbags The international reputation for outstanding quality, creativity and craftsmanship Pets/animals lover Operations & Management Plan Development Calendar Development Calendar Tech Pack Design Detail Bill of Materials Cost Sheet Financial Factors FIVE YEARS GROWTH PLAN 5 Years Growth Plan Idea 1. Pet Collection 2. Chinese Zodiac Signs on Handbags 3. Cosmetics 4. Kids Collection 5. Louis Vuitton & Luxury Cars 2 Year: Chinese Zodiac Signs on Handbags nd Chinese zodiac signs are determined by the lunar year in which you were born. Chinese believe the animal ruling one's birth year has a profound influence on personality, and destiny. There is a saying: "This animal hides in your heart." 12 YEAR CYCLE Whom we Target Target market: Chinese consumer Age :1855 High income $75,000+ annually Oversea Buying Power Avoid high tariff Some collections and items are exclusively sold outside of Chia. Design Year 2016 - Monkey Intelligent Optimistic Romantic Confident Curious, gregarious Year 2017 - Rooster Honest Bright Communicative Ambitious Year of 2019 - Pig Warmhearted Goodtempered Loyal Honest Gentle 3rd Year: Cosmetics Whom we Target Target: Women Age group: 20 and up percentage of women in age 2030 years of wearing makeup is 88% percentage of women in the age 3145 years is 83% High income, striving for luxury beauty Market potential Global cosmetics industry is estimated to amount to $429.8 billion with a CAGR of 4.3% in the coming six years Not only in developed countries, luxury cosmetics market is growing significantly in developing countries like China and India. 4th Year: Kids Collection Kids market has turned into a quite attractive and profitable segment, since wealthy parents do not hesitate in buying luxury clothes for their kids. Whom We Target? Designed kids collection would target on wealthy family, parents who can really afford stylish exclusivity . Age around 3 12 Household income: 20k + Market potential According to survey, kids market was estimated to be of $156.8 billion by the end of 2016 Example: Luxury kids clothing retailer Alex and Alexa are thriving. They sold more than 9,000 items by labels including Dior, Fendi, Burberry and Ralph Laure are thriving Harrods recently expanded its children's wear department to 66,000 square feet 5th Year: LV & Luxury Cars Work with Niche Car manufactures - Tesla Join hands with luxury car maker Tesla Provide Tesla with special quality leather, and designs to make an addon in luxury Design sections of the car keep with its specialization in making bags for the luxury loving world Whom We Target? Why LV luxury in Tesla Spend most on luxury cars far more than they spend on personal luxury goods Reference http://knowledge.wharton.upenn.edu/article/louis-vuitton-and-the-tr aveling-chinese-consumer/ https://www.luxurydaily.com/childrens-wear-market-growth-immuneto-economic-fluctuations-report/ http://www.alizila.com/china-baby-boom-spending-on-kids-is-soaring / http://hkmb.hktdc.com/en/1X0A1WEY/hktdc-research/Childrens-Cl othing-Market-in-China-Trends-and-Dynamics THANK YOU New collection business plan Fangdi Hou GFE721 Professor: Amanda lally Industry Analysis Industry Porter's 5 Forces Analysis Competitor SWOT Analysis For LV Market Strategy Operations & Management Plan Five Years Growth Plan INDUSTRY ANALYSIS Louis Vuitton Louis Vuitton was named the world's most valuable luxury brand Founded in 1854 in Paris (France), the company has its presence in more than 50 countries with more than 460 stores worldwide LV creates innovative, elegant and practical modern luxuries with quality Valuation of the brand was US$28.4 billion with a sales of US$9.4 billion Example of LV's collections Capucines Monogram Icon Rare and Exceptional Lockit What we do Pet & Luxury Pet series (Handbag/Wallet collection) Under the Louis Vuitton With Pet features Target on rich pet lover Why pets? marketplace.org INDUSTRY PORTER'S 5 FORCES ANALYSIS Competitive Rivalry The brand loyalty is significant various competitors like - Fendi, Hermes, Gucci, Prada ect Each competitor has different line up of their products Target customer is separate among different brands Currently no other luxury brand has entered into the segment of pet series Generally, low competitive rivalry in the case of luxury fashion brands industry Bargaining power of suppliers LV doesn't manufacture its own products, it dependents on getting the materials and designs supplied. Its relied on their manufactures Bargaining power of customers Majority of direct retail store, also ecommerce website The bargaining power is less in terms of luxury fashion brand industry The brand name of LV is established among the suppliers as a one of the biggest clients of apparel accessories and raw materials Being termed as a provider of high quality product, its customer base are less price sensitive Bargaining power Low Low bargaining power Threats of substitute product Specific target consumers - loyal customer base - less fear of substitute Currently no other luxury brand has entered into the segment of pet series Fendi - Monster collection may consider substitute After product launches In maturity stage of product lifecycle, other brand start to copy the idea and offer similar product (substitute) Threats of new entrants High barrier to enter luxury industry High costs for the designer Capital requirement Hard to challenge the brand name Long history while known Key supplier with very less bargaining power Competitor SWOT Analysis FOR LOUIS VUITTON Competitor- Fendi - SWOTs Strength Powerful and prestigious brand image Successful entry into various fashion avenues - fragrance, accessories and apparel Hand made in Italy and distributed to other countries Weaknesses Restricted retail opportunities No discount or sales promotion Fendi- Opportunity/Threats Opportunities Market expansion to new region (China and Russia) Frequent exhibitions and events Threats Government regulation Increasing labor costs Intense competition Competitor- Prada - SWOTs Strength Powerful and prestigious brand image Multi brands stores all over the world Bright wellknown, recognizable advertising company Weaknesses High spending on taxes Weak ecommerce participation Unfriendly policy to environment Prada- Opportunity/Threats Opportunities Product alliances with new partners Threats Increasing labor costs Government regulation Intense competition in luxury fashion Competitor- Gucci - SWOTs Strength Strong brand image Quality products Diversification Weaknesses Adverse impact on business by counterfeit and trademark infringement Lower margin Gucci- Opportunity/Threats Opportunities Growing market for luxury products in Asia Threats Government regulation Counterfeit/Cheaper substitution Market Strategy Marketing Analysis Pricing: Choose to price in terms of value rather than price High-price makes consumers feel that they are part of an exclusive society when they carry a Louis Vuitton bag Products Louis Vuitton has established itself as a handbag, and it has a unique quality that makes customers choose Pet series - put the pet features to design on the bags Placement/Distribution channel Louis Vuitton boutique and limited number of high end department stores (under the exclusive control of LV) make consumers feel that Louis Vuitton is such a valuable product as its stores few in number Online channel (LV official website) New product launches/Fashion Shows Promotional Strategy Mass media advertisement Sponsorship of events or organizing any pet event at a large platform will help reaching out to potential customers Celebrities advertisements - done in order to target the affective component of consumers' attitudes Customer Demographics Age:1855 Income: >$75k annually Gender: Female 60%, Male 40% Location: America, Asia, Europe Value Proposition Primary target - aged 18-54 with annual income of $75,000 plus. Values of high-quality luxury handbags The international reputation for outstanding quality, creativity and craftsmanship Pets/animals lover Operations & Management Plan Development Calendar Development Calendar Tech Pack Design Detail Bill of Materials Cost Sheet Financial Factors FIVE YEARS GROWTH PLAN 5 Years Growth Plan Idea 1. Pet Collection 2. Chinese Zodiac Signs on Handbags 3. Cosmetics 4. Kids Collection 5. Louis Vuitton & Luxury Cars 2 Year: Chinese Zodiac Signs on Handbags nd Chinese zodiac signs are determined by the lunar year in which you were born. Chinese believe the animal ruling one's birth year has a profound influence on personality, and destiny. There is a saying: "This animal hides in your heart." 12 YEAR CYCLE Whom we Target Target market: Chinese consumer Age :1855 High income $75,000+ annually Oversea Buying Power Avoid high tariff Some collections and items are exclusively sold outside of Chia. Design Year 2016 - Monkey Intelligent Optimistic Romantic Confident Curious, gregarious Year 2017 - Rooster Honest Bright Communicative Ambitious Year of 2019 - Pig Warmhearted Goodtempered Loyal Honest Gentle 3rd Year: Cosmetics Whom we Target Target: Women Age group: 20 and up percentage of women in age 2030 years of wearing makeup is 88% percentage of women in the age 3145 years is 83% High income, striving for luxury beauty Market potential Global cosmetics industry is estimated to amount to $429.8 billion with a CAGR of 4.3% in the coming six years Not only in developed countries, luxury cosmetics market is growing significantly in developing countries like China and India. 4th Year: Kids Collection Kids market has turned into a quite attractive and profitable segment, since wealthy parents do not hesitate in buying luxury clothes for their kids. Whom We Target? Designed kids collection would target on wealthy family, parents who can really afford stylish exclusivity . Age around 3 12 Household income: 20k + Market potential According to survey, kids market was estimated to be of $156.8 billion by the end of 2016 Example: Luxury kids clothing retailer Alex and Alexa are thriving. They sold more than 9,000 items by labels including Dior, Fendi, Burberry and Ralph Laure are thriving Harrods recently expanded its children's wear department to 66,000 square feet 5th Year: LV & Luxury Cars Work with Niche Car manufactures - Tesla Join hands with luxury car maker Tesla Provide Tesla with special quality leather, and designs to make an addon in luxury Whom We Target? Loyal Customer - LV fans/ Luxury lover Green/Clean Energy - people who care about reducing their impact on the planet Celebrities - pursuing uniqueness Why LV luxury in Tesla Spend most on luxury cars far more than they spend on personal luxury goods Design - LV & Tesla Convertible Reference http://knowledge.wharton.upenn.edu/article/louis-vuitton-and-the-tr aveling-chinese-consumer/ https://www.luxurydaily.com/childrens-wear-market-growth-immuneto-economic-fluctuations-report/ http://www.alizila.com/china-baby-boom-spending-on-kids-is-soaring / http://hkmb.hktdc.com/en/1X0A1WEY/hktdc-research/Childrens-Cl othing-Market-in-China-Trends-and-Dynamics THANK YOU New Collection Business Plan Fangdi Hou GFE721 Professor: Amanda Lally Industry Analysis Industry Porter's 5 Forces Analysis Competitor SWOT Analysis For LV Market Strategy Operations & Management Plan Five Years Growth Plan INDUSTRY ANALYSIS Louis Vuitton Louis Vuitton was named the world's most valuable luxury brand Founded in 1854 in Paris (France), the company has its presence in more than 50 countries with more than 460 stores worldwide LV creates innovative, elegant and practical modern luxuries with quality Valuation of the brand was US$28.4 billion with a sales of US$9.4 billion Example of LV's collections Capucines Monogram Icon Rare and Exceptional Lockit What we do Pet & Luxury Pet series (Handbag/Wallet collection) Under the Louis Vuitton With Pet features Target on rich pet lover Why pets? marketplace.org INDUSTRY PORTER'S 5 FORCES ANALYSIS Competitive Rivalry The brand loyalty is significant various competitors like - Fendi, Hermes, Gucci, Prada ect Each competitor has different line up of their products Target customer is separate among different brands Currently no other luxury brand has entered into the segment of pet series Generally, low competitive rivalry in the case of luxury fashion brands industry Bargaining power of suppliers LV doesn't manufacture its own products, it dependents on getting the materials and designs supplied. Its relied on their manufactures Bargaining power of customers Majority of direct retail store, also ecommerce website The bargaining power is less in terms of luxury fashion brand industry The brand name of LV is established among the suppliers as a one of the biggest clients of apparel accessories and raw materials Being termed as a provider of high quality product, its customer base are less price sensitive Bargaining power Low Low bargaining power Threats of substitute product Specific target consumers - loyal customer base - less fear of substitute Currently no other luxury brand has entered into the segment of pet series Fendi - Monster collection may consider substitute After product launches In maturity stage of product lifecycle, other brand start to copy the idea and offer similar product (substitute) Threats of new entrants High barrier to enter luxury industry High costs for the designer Capital requirement Hard to challenge the brand name Long history while known Key supplier with very less bargaining power Competitor SWOT Analysis FOR LOUIS VUITTON Competitor- Fendi - SWOTs Strength Powerful and prestigious brand image Successful entry into various fashion avenues - fragrance, accessories and apparel Hand made in Italy and distributed to other countries Weaknesses Restricted retail opportunities No discount or sales promotion Fendi- Opportunity/Threats Opportunities Market expansion to new region (China and Russia) Frequent exhibitions and events Threats Government regulation Increasing labor costs Intense competition Competitor- Prada - SWOTs Strength Powerful and prestigious brand image Multi brands stores all over the world Weaknesses High spending on taxes Weak ecommerce participation Prada- Opportunity/Threats Opportunities Product alliances with new partners Innovation Threats Increasing labor costs Intense competition in luxury fashion Competitor- Gucci - SWOTs Strength Strong brand image Customer loyalty Diversification Weaknesses Instability in management Weak financial base Gucci- Opportunity/Threats Opportunities Growing market for products in emerging luxury markets Online Market Threats Counterfeit/Cheaper substitution Market Strategy Marketing Analysis Pricing: Choose to price in terms of value rather than price High-price makes consumers feel that they are part of an exclusive society when they carry a Louis Vuitton bag Products Louis Vuitton has established itself as a handbag, and it has a unique quality that makes customers choose Pet series - put the pet features to design on the bags Placement/Distribution channel Louis Vuitton boutique and limited number of high end department stores (under the exclusive control of LV) make consumers feel that Louis Vuitton is such a valuable product as its stores few in number Online channel (LV official website) New product launches/Fashion Shows Promotional Strategy Mass media advertisement Sponsorship of events or organizing any pet event at a large platform will help reaching out to potential customers Celebrities advertisements - done in order to target the affective component of consumers' attitudes Customer Demographics Age:1855 Income: >$75k annually Gender: Female 60%, Male 40% Location: America, Asia, Europe Value Proposition Primary target - aged 18-54 with annual income of $75,000 plus. Values of high-quality luxury handbags The international reputation for outstanding quality, creativity and craftsmanship Pets/animals lover Operations & Management Plan Development Calendar Development Calendar Tech Pack Design Detail Bill of Materials Cost Sheet Financial Factors FIVE YEARS GROWTH PLAN 5 Years Growth Plan Idea 1. Pet Collection 2. Chinese Zodiac Signs on Handbags 3. Cosmetics 4. Kids Collection 5. Louis Vuitton & Luxury Cars Manfucuture 2 Year: Chinese Zodiac Signs on Handbags nd Chinese zodiac signs are determined by the lunar year in which you were born. Chinese believe the animal ruling one's birth year has a profound influence on personality, and destiny. There is a saying: "This animal hides in your heart." 12 YEAR CYCLE Whom we Target Target market: Chinese consumer Age: 2055 High Income $75,000+ annually Design Year 2016 - Monkey Intelligent Optimistic Romantic Confident Curious, gregarious Year 2017 - Rooster Honest Bright Communicative Ambitious Year of 2019 - Pig Warmhearted Goodtempered Loyal Honest Gentle 3rd Year: Cosmetics Whom we Target Target: Women Age group: 20 and up percentage of women in age 2030 years of wearing makeup is 88% percentage of women in the age 3145 years is 83% High income, striving for luxury beauty Market potential Global cosmetics industry is estimated to amount to $429.8 billion Not only in developed countries, luxury cosmetics market is growing significantly in developing countries like China and India. 4th Year: Kids Collection Kids market has turned into a quite attractive and profitable segment, since wealthy parents do not hesitate in buying luxury clothes for their kids. Whom We Target? Designed kids collection would target on wealthy family, parents who can really afford stylish exclusivity . Age around 3 12 Household income: 20k + Market potential According to survey, kids market was estimated to be of $156.8 billion by the end of 2016 Example: Luxury kids clothing retailer Alex and Alexa are thriving. They sold more than 9,000 items by labels including Dior, Fendi, Burberry and Ralph Lauren Harrods recently expanded its children's wear department to 66,000 square feet 5th Year: LV & Luxury Cars Work with Niche Car manufactures - Tesla Join hands with luxury car maker Tesla Provide Tesla with special quality leather, and designs to make an addon in luxury Whom We Target? Loyal Customer - LV fans/ Luxury lover Green/Clean Energy - people who care about reducing their impact on the planet Celebrities - pursuing uniqueness Why LV luxury in Tesla Spend most on luxury cars far more than they spend on personal luxury goods Design - LV & Tesla Convertible Reference http://knowledge.wharton.upenn.edu/article/louis-vuitton-and-the-tr aveling-chinese-consumer/ https://www.luxurydaily.com/childrens-wear-market-growth-immuneto-economic-fluctuations-report/ http://www.alizila.com/china-baby-boom-spending-on-kids-is-soaring / http://hkmb.hktdc.com/en/1X0A1WEY/hktdc-research/Childrens-Cl othing-Market-in-China-Trends-and-Dynamics THANK YOU