Louis Vuitton in Japan (Essay Sample)

Case Study: Louis Vuitton in Japan
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Institution
Case Study: Louis Vuitton in Japan
Introduction
The French company, Louis Vuitton, is one of the leading stores in Japan. It has outlets in the major cities in Japan such as Osaka, Tokyo, and Nagoya. The company commands a considerable market share in Japan. It specializes in trading in luxury products. The success of this company rests on its ability to employ guerilla marketing strategy. It involves demonstrating aggression in grabbing the potential consumers’ attention. In deed, the company has been successful in expanding its presence in Japan since it inception in the late 19th century. Nearly, every person walking in the streets of major cities in Japan knows about this business. The large publicity and the structure of the retail store have played a critical role in influencing its viability in the Japanese market. Today, the company boost of success because of its strategic marketing approaches that has enabled it to remain relevant in the Japanese markets for a considerable duration.
Analysis
Current Strength
Louis Vuitton has a wide range of luxury products that its offers to its consumers. The products of the company are relevant to the fashions in the market an aspect that significantly enhance the company’s grip in the market. The company embraces the concept of continuous improvement. For instance, the company uses Hollywood celebrities’ fashions and models to brand its product. This marketing strategy has enabled the company to appeal the consumers perceived to love the luxury and immolate the celebrities. The company commands a large market of luxury brand across the globe. In 1970s, the company focused in building its brands by entering a merger with other companies. This approached enhanced the market grip of the company. Merger is a strategic move that helps firms that lack goodwill to boost their relevancy in the market (Shimp & Andrews, 2013). The company’s marketing strategy is to continuously expand his market shares. Since its inception, this organization has been able to expand its presence in Japan by opening extravagant stores in major towns. This strategy is viable because it brings the products close to the target consumers. Consumers for luxury products are concentrated in the major towns as opposed to smaller ones.
The company boost of the best designers across the globe. The versed designers are the epicenter of the company’s success. Since most of the products that the company is selling are luxury, the designers of the products must not only keep to the fashion trends, but also embellish the products that they design to the market. Largely, a number of consumers tend to go for products that are not only displaying the latest fashion, but also unique. Elsewhere, this approach is strategic to the company’s growth it acts as the competitive of age of the company.
Louis Vuitton’s marketing strategy entails branding the product using the image of the celebrities. The company establishes good relationship with celebrities in order to market its products. The strategy has proved effective in placing the company’s products above other products. This strategy assumes that the consumers would associate a given product to the celebrities. The global strategy of the company is to create more stores in the unexploited market. The expansion strategy is instrumental because it has enabled the company to increase it market share hence increased revenue. The company has a large capital base and makes huge profit. The huge capital base is critical to the company’s success because adequate capital tends to influence the success of the business (Aaker & McLoughlin, 2010). In addition, the company attempts to improve it return on investment. Arguably, as the company attempts to increase the return on investment, it engages in strategic practices that increases it market ability.
The company has invested in the latest technology in order to produce goods that are up to date. As the technology changes, the taste and preference of the target consumers tend to change. Thus, firms that are intending to be relevant must develop structures that would enable them to compete in the market. The modern production line enables the company to embrace the philosophy of lean production.
Another reason behind the success of Louis Vuitton is able leadership. The company’s management is sensitive to the business environment. The strategic approaches employed by the management has been instrumental in building the company’s brand, expanding the company in the unexploited markets as well as developing strategies that are relevant to the target market. Varley (2006) agrees that success of a firm depend on its management. Likewise, Louis Vuitton has been successful because of its able leadership.
Since the Louis Vuitton has gone global, it has devised advertising strategy that advance the global strategy. It entails partnering with celebrities and models in order to influence the consumers. Some of the most celebrated celebrities that the company has partnered with include Jenifer Lopez and Madonna. Arguably, many people tend to idolize the celebrities by mimicking whatever they do or like. By creating products that portray the image of the celebrity, it attracts consumers that love the celebrity (Zinkan, 2012). In Japanese towns, the company makes outdoor advertising and adverts in magazines.
Challenges
The company has huge risk dependence in Japan than other destination. It follows that when the Japanese market fail to perform to the expectation of the business, then it would register serious losses. Elsewhere, the company is presently facing the challenge of controlling the firm. As the firm expands, controlling the activities of the firm tends to become a big problem. Worldwide counterfei...