4.  Term used for goods and services high in
prestige and credibility (Baek, Kim &
Yu, 2010)
 Association with exclusivity, status and
quality
 Social Marker

5.  ―A luxury item that extraordinary people
would consider ordinary is at the same
time an extraordinary item to ordinary
people‖ (Kapferer &
Bastien, 2009, p.314).

7.  Founded in 1854 by Louis Vuitton

9.  Products:
› Luxury Trunks, leather
goods, shoes, watches, sunglasses, etc.
 Began by building trunks
 Collaborated with the Nazi’s to increase
their wealth
 1896: Patent on monogram
 The monogram created to prevent fakes

12.  Products:
› Luxury Trunks, leather
goods, shoes, watches, sunglasses, etc.
 Began by building trunks
 Collaborated with the Nazi’s to increase
their wealth
 1896: Patent on monogram
 The monogram created to prevent fakes

13.  No promotions or sample sales
› Value will stay high if there is no sales
 The bag represents the story
 Customization to their products
› Mon Monogram
 Bag should demonstrate that the
consumer is:
› Successful, fashionable and elegent

14.  #1 brand preferred by the Chinese
› Social status is important to them
› Chinese manufacturers have created many
products (fake)

16.  90% of Japanese own Louis Vuitton
 Louis Vuitton kept prices high during
recession even though their stock
dropped, in order to keep their status

18.  Print ads and Billboards
 Use of celebrities and models
 Appear in music video’s
› Kanye West, Juicy J, Wiz Khalifa, Britney Spears
› Britney Spears sued for due to fake Louis
Vuitton monogram in music video
 LMVH devotes over 10% of annual sales to
marketing
 Positioned fashion & Lifestyle magazines

19.  3 major goals
› Associate brand to high quality and
emotional values
› Gather testimonials
› Drive them to the site via organic search

28. Extrinsic and Intrinsic

29.  Consumers with extrinsic aspirations
spend money on good that would
display status and wealth in society
(Yann, 2010).
 Conspicuous consumption

30.  Consumers with intrinsic aspirations
spend money on goods solely for their
own pleasure and satisfaction, not for
others to view them as wealthy
(Yann, 2010)
 Quality search
 Psychologically less impacted by the
opinions of others

31.  An advancement from the Middle Ages
(Han, Nunes & Drèze, 2010)
 Male attractiveness is increased by
status manipulation but males are
generally not influenced by status
manipulation, therefore, a females
attractiveness would not increase by
signaling status (Dunn & Searle, 2010)

32.  ―Handbags are the engine that drive
luxury brands today‖ (Han et
al., 2010, p.18).

36.  Wealthy  Wealthy
 Buy discreet branded  Buy conspicuous branded
products (―quiet‖) products (―loud‖)
 Do not want to be  Money does not stop
associated with the them from buying discreet
middle class branded products, but
their desire for status
 Do not buy luxury goods
to show off status (intrinsic  Buy luxury goods to show
aspiration) off status (extrinsic
aspiration)

37.  Not wealthy enough to  Not wealthy enough to
afford authentic luxury afford authentic luxury
goods goods
 Want to be associated  No interest in being
with parvenus since they associated with the
appear to be wealthy due wealthy
to the use of loud
products  Not interested in buying
luxury goods
 Poseurs are more likely to
buy knockoff luxury goods

40.  LVMH: World Wide leader of luxury goods
 Group Mission and values:
› Be creative and innovative
› Aim for product excellence
› Bolster the image of brands with
determination
› Act as entrepreneurs
› Strive to be the best in all they do

41.  60 people work full time against
counterfeiting
 Shut down internet sites, stores and plants
that sell fake goods
 Work’s with the police in France
 Collaboration with external investigators
and lawyers

42.  Actions carried out in
China, Korea, Thailand and Italy
 Louis Vuitton Values: Respect the
company’s heritage – (Brand Protection)

43.  Louis Vuitton vs. Warner Bros – The
Hangover 2
 Louis Vuitton vs. Britney Spears (Sony BMG
& MTV)
 Louis Vuitton vs. Hyundai
 Louis Vuitton vs. Hairdresser in HongKong

45.  Authentication tag
› Could be added to products already bought
through a boutique or via mail
 Long code linking the bag to the website

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everything! Journal Of Brand Management, 16(5/6), 338-346.
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next level. SERI Quarterly, 84-93
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brand prominence. Journal of Marketing, 74(4), 15-30.
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marketing upside down. Journal Of Brand Management, 16(5/6), 311-322.
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http://www.mercedesbenz.ca
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