The Study Of Louis Vuitton For Marketing Strategy In China Mainland Market

Since luxury brands entered China mainland market 20 years ago,we have witnessed their most splendid bull run of two-digit rapid growth.However,due to the price gap between home and abroad and the anti-corruption campaign launched by Chinese government,many luxury brands began to suffer negative growth in 2014.Thus,in order to balance those negative impacts,this article focuses on Louis Vuitton,the world’s leading luxury brand,strive to boot its sales by making some breakthroughs in its current marketing strategy.This article applied theory from marketing,strategy and statistics.Firstly,by using PEST model,we analyze Louis Vuitton’s external environment,including policy,economy,society,technology,market demand and competitive structure.After that,we analyze its internal environment,including history and current problems,and come up with the conclusion that many customers think Louis Vuitton is not high-end enough because it is over exposed so that its brand image does not match its key customers’ need for "rare product" and "exclusive service".By raising the pyramid hypothesis,we can further conclude that if a luxury brand loses its first tier customers,it will lose the second tier customers accordingly and ultimately become a common brand.This is due to the fact that second tier customers are deeply impact by the behavior of first tier customers.To avoid this,we use STP model to divide the whole market into several segments,choose one segment as our target,and finally precisely posit the brand in the target market.According to the market positioning,we adjust Louis Vuitton’s current marketing strategy by making innovative product,price,place and promote strategies,by doing this,we can finally achieve the goal of "rare product" and "exclusive service".