Founded in 1854 in Paris, France, Louis Vuitton introduced a flat-top trunk that was not only fashionable, lightweight, and attractive, it was much easier to stack and store than the round-top trunks that were being used before. From there, a fashion empire rose, with its estimated value according to Forbes in 2021 a whopping $39.3 billion.
Now, with the undeniable beige-and-brown tote stamped with the iconic “LV” logo, fashionistas and even fairweather fashion fans can spot a Louis Vuitton bag a mile away and immediately know where it’s from.
But with knock-offs circulating at a much lower price point, what keeps consumers coming back to the real deal?
It all comes down to Louis Vuitton’s genius marketing mix and its four P’s: product, place, price, and promotion.
Louis Vuitton’s First Marketing P: Product
There’s no denying that with its storied history, elite clientele, and high-quality product, Louis Vuitton is a luxury brand.
But customers are paying for more than just the iconic. They’re shopping Louis Vuitton for the promise of a one-of-a-kind luxury product. They paying for an item made by hand by an experienced worker instead of in a factory.
Louis Vuitton is in high demand. They choose to meet that demand with a limited supply of meticulously handmade products. This drives up the public’s desire for these bags, making them willing to pay more and more to get them.
Louis Vuitton Business Strategy #2: Place
You’ll notice that Louis Vuitton bags, at least the newest and best quality bags, are not available in department stores. That’s because part of Louis Vuitton’s marketing strategy includes selling their products exclusively at their own stores.
Usually found along a hall of similar luxury brands and sometimes even with a man in a suit at the door, this store feels like an exclusive club you’re cool enough to get into. That’s how they WANT it to feel.
Because they are not selling you their product, they’re selling an atmosphere. Selling their product only in stores that they’ve designed, staffed with sellers and floor workers that they’ve carefully chosen, Louis Vuitton curates an experience that is entirely under their control.
They can’t let their product out of their sight and allow it to be sold by someone they haven’t vetted themselves. That would be leaving a lot of the customer experience of acquiring their product up to chance.
They guarantee a friendly interaction and a feeling of exclusivity in their store. This is so they’re selling you the Louis Vuitton brand before you even swipe your card at the check-out.
Louis Vuitton Marketing Strategy #3: Price
Like most luxury items, Louis Vuitton products exist at a higher price point than many other products. Yet, people continue to pay those prices.
As it turns out, getting to pay that amount of money is part of the marketing strategy Louis Vuitton employs, too.
To match the high quality and handmade nature of the products, Louis Vuitton charges a pretty penny. In return, you’re paying for the bag and the promise. You know this is a high-quality, durable item you can depend on.
Additionally, the Louis Vuitton distribution network works so that no product can reduce its price. Also, there is no time for it to go on sale or be discounted. It’s an exclusive product that you won’t get to grab later when its price has gone down.
It’s now or never.
We as consumers believe that expensive things must be well-made and, more importantly, desirable.
LV’s price doesn’t just reflect its craftsmanship, it drives it.
The Louis Vuitton Marketing Model #4: Promotion
The final “P” in this business marketing pie is promotion. This, just like everything else Louis Vuitton does, broadcasts a feeling of exclusivity.
They often advertise using celebrity endorsements and brand ambassadors, putting recognizable faces next to their premium product. If you buy this bag, you’re in the same club as your favorite celeb.
Louis Vuitton also sponsors major sporting events like yachting and motorsports, ensuring that the social elite are the ones to see their name all over the venue. They aren’t just trying to create the feeling that only the elite can own this item, they are proving it.
The brand has also made it a priority to encapsulate their lineage in their advertising, only doing so in newspapers and fashion magazines. Elite fashion-forward individuals are who they want using their product.
With exclusivity and social status at the forefront of their marketing strategy, Louis Vuitton has built an empire starting from just a trunk.
Every brand should have an understanding of the marketing mix and the four P’s so that they can apply those lessons, or use them as guidelines, when building their own name. But without a century-long existence in the industry or celebrity endorsements, it can be hard to reach that level of demand.
Luckily, the marketing pros at Web Content Development are trained and dedicated to perfecting your four P’s and using them to build your company, whether through copywriting, social media, or website traffic. To learn more about developing your business strategy with Web Content Development, visit https://www.webcontentdevelopment.com/services/marketing-strategy/
