LVMH campaign consists of various product lines which have a great popularity in the world. Clothes, drinks, cosmetics and other products – are all number one worldwide seller. At the moment they are most stable products among other brands. In our opinion, the constitution of such success is in the price strategy and coalition with other business spheres. Must-have clothes from Christian Lacroix or Givenchy; famous drinks as Moet-& Chandon or Dom Perignon; fragrances from Dior – all of these created a good and well-known trade name for markets. Quality, design, style and price are the most important characteristics for building an image for Luis Vuitton. Also, distributing its product only through official boutiques around the world makes the brand more valuable. Moreover, to maintain an “exclusive” image, LVMH prohibits any advertising or promotion. Such tactics are very useful for stability and value of the products.
LVMH applies a very effective price strategy which helps them to constantly maintain the stability – luxury pricing strategy. Using this way, the campaign do not give any markdowns or sales for its clients; rather, such strategy means high markups and limited availability. High price emphasizes that perfect quality and fashionable design must deserve high markups. Low price can just “devalue the brand”. In addition, product can be found only in the company-owned stores. According to the case, through the stores this keeps margins high and allows maintaining control of its products on each step in the channel. “Controlling distribution, you control your image”. This phrase is major key in constancy of luxury goods.
We can characterize the marketing strategy of LVMH as well-organized and carefully planned. In the text, we see that LVMH built its stores mostly on the most famous and high-fashion avenues in the world, e.g. Rodeo Drive in Los Angeles or the 5th Avenue in New York City. Furthermore, 10 % of its sales LV spend on the promotion and...