Pet Series Fangdi Hou LOUIS VUITTON Louis Vuitton was named the world's most valuable luxury brand The company operates in 50 countries with more than 460 stores worldwide Valuation of the brand was US$28.4 billion with a sales of US$9.4 billion LV creates innovative, elegant and practical modern luxuries with quality 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 Customer Identification 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 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- 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 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 Five Years Growth Ideas 1. Chinese Zodiac (Rat, Tiger, Hare, Dragon, Snake, Horse, Sheep, Monkey, Cock, Dog, Boar) *Rat charm, Ox patient, Tiger sensitive, Rabbit articulate, Dragon healthy, Snake deep, Horse popular, Goat elegant, Monkey clever, Rooster deep thinkers, Dog loyalty, Pig chivalrous. On the basis of pet series, we can develop more collection. Use Chinese Zodiac element to design on our handbag, 2016Monkey, 2017Cock Louis Vuitton is an internationally recognized and one of the most popular fashion brand. In fact, there are a lot of rich people in China, they love Louis Vuitton, and they love \"unique\". This element is unique; it doesn't show up at today's market. No competitor right now, compare with other luxury brands, Chinese Zodiac is unique, innovation. **The first idea Chinese zodiac, it is not design bag for pet to stay, twelve Chinese zodiac represent twelve different animals, the animal will design on bag. Understand? 2. Bring out Fragrances and Lipstick, bottle of fragrances intends to use LV classic leather to design. For example: Monogram Canvas Damtier Ebene Canvas Monogram Vernis Leather Amarante/Amethyste/Dune/Indian Rose My \"pet series\" handbags design with monogram canvas, the fragrances and Lipstick can come with handbags, put them together to compose one series for next year. 3. Louis Vuitton didn't develop the collection for teenage and child. Do the research on it, how many rich people have child? How many children do they have? and so on. Search that information that prove this collection can sell well at luxury market. 4. Find a luxury vehicle brand to work with them (use LV leather), such as Rolls Royce, Ferrari and so on Some convertible cars have Phantom Drop head Coupe, we can some designs on it, like put the canvas leather on it, or put into the leather seat. Make this luxury car to get more attention. The last idea, rolls Royce is one of examples, you also can choose other luxury car to design. BUSINESS PLAN FROM SECOND -FIFTH YEAR LOUIS VUITTION SECOND YEAR Develop more collections of pet series. The additional collections will be made from the Chinese zodiac elements to design new handbags. New collections of handbags will be made from dragon,horse,monkey, tiger and cock. Use of Chinese zodiac elements is a unique idea which will attract the luxury customers in China. SECOND YEAR Chinese Zodiac elements will give customers a feeling that the handbags resemble real wild animals. There is no competition for the Louis Vuitton brand both in China and in other global markets. New collection of handbags will be priced highly as customers already trust the brand THIRD YEAR Introduce additional luxury products to the already existing Louis Vuittion brand. Develop luxury brand of fragrance and lipstick. Bottles of fragrance will be made of LV classic leather. Both the lipstick and fragrance will be sold together with handbags as a package. THIRD YEAR The designer lipstick and fragrance will be unique in the packaging. The new products will sell as Louis Vuittion brand is trusted because of its quality and unique design. FOURTH YEAR Louis brand to develop clothing for teenagers and children. On average, every rich Chinese has two children. The clothing brand will be uniquely designed to make teenagers confident while they are in them. Children clothing will soft and comfortable FOURTH YEAR The clothing brand will sell because it will be sold in the same stores with the handbags. As rich Chinese go shopping for handbags, they will identify clothes which will be very appealing because of their unique design FIFTH YEAR Introduce a vehicle into Louis Vuitton brand. The vehicle will be a Rolls Royce whose inner side will be made of LV Leather. Seats will be made of leather which will make it comfortable. It will have Louis Vuitton trade mark as the brand. It will be for the luxury market who want comfort and style. References Drucker, P. (2014). Innovation and entrepreneurship. Routledge. Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership, innovation, technology. Routledge. Christensen, C., Anthony, S., & Roth, E. A. (2013). Seeing what's next: Using the theories of innovation to predict industry change. Harvard Business Press