Chapter 4. The Marketing Environment

Louis Vuitton is historically known to serve the powerful and the wealthy. Its target market is both men and women from 22 to 65 years of age. In its marketing strategy all the key factors play a very important role and are fully executed. Louis Vuitton offers to its customers a lifestyle experience, while analyzing the lifestyle components of its target market.
When Louis Vuitton opened the first store in China people asked: Why have you come here? We don't understand luxury - and the answer of Yves Carcelle the CEO of Louis Vuitton was: "No, you are sophisticated and one day soon you'll be the biggest superpower."
Louis Vuitton has pursued a consistent approach to developing the 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.

In India, Louis Vuitton will soon open its third store, which will be the second in Delhi. India has phenomenal potential and the growth has been exceptional. In fact, the volume of business in India is proportionally larger than when the company started in China. However, the market for luxury products remains marginal.

As the expansion of the brand continues in these new markets, Louis Vuitton is also adopting new ways of stimulating innovation in existing audiences. In Japan the company is introducing New- Generation stores, revolutionizing the ceremony that surrounds the sale of a luxury product. Architecture has become an integral part of the brand identity. This is manifested in the Omotesando building designed by Jun Aoki as a stack of trunks. A new era has begun where the in-store experience is almost as important to the customer as the product itself.
Louis Vuitton has a zero tolerance policy on counterfeit products. In 2012 Louis Vuitton won a U.S. Trade ruling that will help it keep knockoff Louis Vuitton handbags, luggage and accessories from entering the U.S. The order, which will go into effect in 60 days, directs Customs and Border Protection to turn away any products that are made in a way that is similar or copies the Louis Vuitton trademarks.
Louis Vuitton and the Recession
How did the recession affect Louis Vuitton? LVMH, saw it's stock  plummet from 40 to 10 at the end of 2008, but Louis Vuitton didn't change its message to fit with the time. Louis Vuitton refused to lower the prices and cheaper its quality products. A strong brand reduces its business risk because stands for something more than affordability.  Louis Vuitton has been very agile and sensitive with international expansion. The firm is aggressively expanding into the lucrative Chinese market but with the same exact standards that would befit a store in Milan or New York. In 2010  Louis Vuitton's net profit jumped to 73% led by the Asian market.

Sources: Bloomberg Business week.com LouisVuitton.com  Thealtantic.com LVMH.com