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No longer are brands treated as concepts that are created solely by the marketers.
Alternatively, brands are the systems that are evolving to interact with their
backgrounds. By the brand creators, brands have been shaped up by the looks,
views and practices of the end-users, various influencing factors and distributors.
With the increase in the international trade, more brands have been introduced to the
innovative
cultural
perspectives.
These
innovative
situations
have
to
be
systematically taken and analysed into various accounts at the time of global brand
management. In this assignment the brand selected as case study is Louis Vuitton
which is the prominent luxurious sector in France and in Japan, issues related to
marketing environment and culture integration in those countries will be analysed.
Previously Japan has been the better profitable place for Louis Vuitton, but the
economic crisis globally has bought various challenges. By facing the weaker
economy and change in the preferences of the consumers, Louis Vuitton has come
up with various strategies to win in the Japanese market. Previous days like
depending on higher price and logo is no more and people shall been showing more
interest on the money value and craftsmanship.
Introduction
Louis Vuitton from France has started its expansion operation since the year 1885.
The company has opened its primary store in London. During the year 1904 the
organisation has participated in the global trade fair in the United States and
marketed well hence to promote its brand and to get recognition by Americans. By
the year 1987 this brand has made its presence and established in Japan by way of
getting better share in the Asian Market and then expanded its operation all over the
globe with more than 1500 stores and has started the e-commercial site as the
multinational corporation (Waseda Business and economic studies, 2012). The
organisation has its factories in Spain, Italy, Switzerland, France and United States
and majority of the products made with leather are made in Italy and France. On the
other hand the watches from this brand are made in Switzerland. The company
outcomes will differ from that of various competitors as the organisation outsources
are to increase the prestige and quality of the product (Globalebrands, 2014). This
company is one of the first organisations for producing the luxurious product and has
seen the probable economic growth in the markets that are emerging like India and
China. With the huge economic growth of the international market the organisation
took an advantage by seeing the people need in showing their social status. In fact
present the organisation Louis Vuitton is the top luxury brand preferred in all the
markets globally (Waseda Business and economic studies, 2012).
aspect (Reuters, 2013). This approach which is unique has helped the Louis Vuitton
for its present position as the most luxurious successful brand in Japan. France as it
has introduced and its home country, it has very effective and good sales, but with
the various recent competitors and other brands coming up to the country after
globalisation, it also has been facing the problem of heavy competition in the market.
But its marketing strategies have helped in overcoming all the situations
(Globalebrands, 2014).
In japan, with various stores its growth and phenomenal potential has been unique
and extraordinary. In fact the business volume in Japan has been become slowly
larger at times than that of France, even though the luxury products market has
become marginal. With the continuing of the brand expansion in these markets,
Louis Vuitton also has slowly adopted innovative ways for stimulating the audiences
that are existing now (Waseda Business and economic studies, 2012). In japan the
organisation has introduced the stores with New-Generation which has been
revolutionizing the ceremony that has been surrounding the sale of the luxurious
product. The company has made the architecture as an essential part of the brand
identification. This innovative era has started with the in-store experience which is
significant to the consumer as the brand itself (Reuters, 2013).
Louis Vuitton has the policy of Zero tolerance on the products of counterfeit. During
the year 2012, Louis Vuitton has won the United States trade rule that it would help
in keeping knockoff handbags of Louis Vuitton to enter into United States. Where in
the order which takes into effect of nearly 60 days, directing the customs and
protection from the boarder hence to turn back the products that are made in the
same way or copies of the trademarks of Louis Vuitton (Aiello, G. et al. 2010).
Because in various countries the company brand identity has lost due to the copies
of the brand. The company has also been affected by the recession during the year
2008 and 2009 globally where most percentage of their stock has not been sold, but
the company is strong and has not changed its values or message just to fit into that
time. It has not lowered the prices and has not reduced its quality (Aiello, G. et al.
2010). A stronger brand would reduce the risk in business which stands for
something than that of the affordability. This organisation has been very careful with
the sensitive issues and been agile with the global expansion. This organisation has
been expanding its business aggressively into the various lucrative markets with the
same standards. Asian market is the profitable business for this organisation
(Globalebrands, 2014).
value and in ensuing the purchasing motives into account (Wiedmann, K.-P.,
Hennigs, N., & Klarmann, C, 2012).
differences in the economies including the differences in the culture. When this
concept is brought up for the strategy adaptation to that of the requirements of the
local market, the standardization includes the various applications of the similar
elements of the marketing mix across the various number of the global markets,
whereas the adaptation has been characterized by the execution of the marketing
mix that is exceptional for every country separately in a different way as per the
needs and requirements of the consumers. Hence the total dimension adaptationstandardisation includes together.
Reflecting on the existence of the particular variations among the economies and
thoughts, the standardisation will result in various benefits, but the main significant
task is to track the responsiveness from the local and the simultaneous
standardisation and hence to identify and distinguish the approaches to the global
marketing which vary across the products and through different activities of
marketing. When coming to the full standardisation and partial standardisation and
adaptation together with the various dimensions like the products, business
functions, elements of marketing mix and various economies. The adaptation and
standardisation has brought various benefits in the approach of multidimensional
strategy of marketing (Kotler, Ph. et al., 2009)
The importance and balance among the Arctic views and its influence on various
products higher performance in the global markets. It is contended that the
assimilation of the inputs which are combined with the home and subsidiary country
into the adaptation-standardisation of products will balance critically and determines
the performance of the product adaptation-standardisation balancing which
determines the performance of the product in the local market. Thus the contact
among the global and local and sharing the inputs jointly helps in creating a
significant platform of the innovative knowledge (Kapferer, J.-N. 2012). The platform
will enable the sharing of knowledge and will open the discussion on different
development of products viewpoint, which will lead to the reduction in the
improvements of the design of the product. The organisations marketing their
services and products abroad are faced by various decisions whether to adapt or
standardize the offerings of their products. This decision will concern the companies
from commencing to market the products and services in the international countries
and also those who are internationally operating and is seeing in the expansion into
the future markets (Kotler, Ph. et al., 2009). The products standardisation crossways
the cultures have been progressively become a significant issue that the
management of the international companies that today are facing. In the 21st century
international marketing has been receiving the important attention to research, as the
benefits of the cost and direction of the strategies of standardisation have been
simplified the approach of global marketing and also being the attractive choice to
most of the organisations (Wiedmann, K.-P., Hennigs, N., & Klarmann, C, 2012). On
the other side, strategies of the product adaptation have also been considered as the
most important influential feature for the MNCs. From the past researched it is
concluded that the standardisation has been enhancing the outcomes of the
performance and various theories suggest that this might not be true in all the cases.
In the present globalised world, the standardisation choices and adaptation choices
of the global products are no longer be seen as the choice of inflexibility. As an
alternative the two options combinations have been regarded as the factors that are
dependent at the time on a particular market. Though with the advent of the identical
markets globally, the multinational companies might or might not intermix both the
strategies of adaptation and standardisation of the strategies of the product (Kotler,
Ph. et al., 2009), Coming to the case of Louis Vuitton it follows the concept of
standardisation of the product with the same quality and price globally. But if it goes
with the localisation strategy the benefits might be advantageous to the company in
few countries, but its strategy of same standardisation has still been winning the
market globally (Kapferer, J.-N. 2012).
Conclusion
Hence the Luxury brand is ubiquitous, but it is rare and has been bound with the
cultural heritage and traditions, but as well-known as the capability to set the various
trends and innovation. The marketing environment of the Louis Vuitton Company has
been going well as following the same and unique standards all over the globe and
the strategy of providing the luxurious prestige bags has win their market in Japan
and France. With various variations at the time of the recession and with various
competitors in the global market, it has been winning in the market with its
standardisation strategy and its marketing standards.
References:
Wiedmann, K.-P., Hennigs, N., & Klarmann, C. 2012. Luxury consumption in
the trade-off between genuine and counterfeit goods: What are the
consumers underlying motives and value-based drivers? Journal of Brand
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Hennigs, N. et al. 2012. What is the Value of Luxury? A Cross-Cultural
Consumer Perspective. Psychology and Marketing, 29(12): 1018-1034.
Aiello, G. et al. 2010. Luxury brand and country of origin effect: results of an
international empirical study. Journal of Marketing Trends, 1(1): 67-75.
Kapferer, J.-N. 2012. Why Luxury Should not Delocalize: a critique of a
growing tendency, European Business Review, 3: 58-63.
Ball, D.A. et al, (2003), International Business: The Challenge of Global
Competition - ninth edition, Boston: McGraw-Hill/Irwin, p. 478
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Reuters. (2013). Louis Vuitton slows expansion to protect image.Available:
http://www.theglobeandmail.com/report-on-business/internationalbusiness/european-business/louis-vuitton-slows-expansion-to-protectimage/article806926/. Last accessed October 15 2014.
Globalebrands. (2014). Louis Vuitton: Retailing the International Way.
Available:
http://globalebrands.com/louis-vuitton-retailing-the-international-
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