Marketing Mix Of Louis Vuitton And Gucci Marketing Essay

Louis Vuitton, a celebrated Gallic trade name, was created by a leather interior decorator named Louis Vuitton ( 1821-1892 ) . In 1837, 16-year-old Louis Vuitton left his hometown, to Paris to pack for the elite. He opened his first shop in London and made the production with high-skilled. Therefore do Louis Vuitton go the most delicate symbol of leather going articles. A century subsequently, it is a leader in the field of leather goods and besides was a favourite in polite society. It includes vesture, places, jewellery and so on. ( Louis Vuitton Iraqi National Congress, 2010 ) . In 1987, Louis Vuitton and Moet Hennessy unifying into prevent LVMH Group.

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In 1906, Gucci Augustine qi established the Gucci trade name and named it after himself. Merchandises of Gucci include manner, leather goods, and tickers. ( Gucci inc, 2010 ) Gucci with its high manner, sexy manner popular around the universe. As a symbol of position and wealth, it is a love of rich society. Now, Gucci is Italy ‘s largest manner group.

1.2 Theory

1.2.1 Market Segmentation.

Market cleavage can be defined as spliting different groups with similar chrematistic in the market. Business accord different characteristics to merchandise and services for each of them. ( Hall et al 2008 p66 )

1.22 Marketing Mix

In order to market its merchandises efficaciously and run into its clients ‘ demands. Business must see its selling mix. ( Hall et al 2008 p75 ) Mastering four chief parts of marketing mix plays a critical function in concern, merchandise, monetary value, publicity and topographic point.

1.3 Purposes

The purposes of this study are to analyse the information of Louis Vuitton and Gucci to compare their differences. The comparing will concentrate on their differences in market cleavage and selling mix, particularly in Chinese market.


17 old ages ago, Louis Vuitton as one of the first luxury trade names to come in Chinese market open its first shop in Beijing. At that clip, none of Chinese can understand why the value of a pocketbook worth more than 10000 RMB. But with its publicity in China and the growing of Chinese economic, the gross revenues of pocketbooks from Louis Vuitton rise rapidly. Reasons of the success in Chinese market are besides the grounds for the success of its trade name, first-class market cleavage and keeping good four parts of marketing market.

The successful grounds of Gucci is similar to Louis Vuitton. For illustration, it launched a series of Chinese imposts production. ( Paris Fashionable Clothing Week Day 9, 2010 ) and utilizing Chinese linguistic communication in its shops. For Chinese market to plan the Chinese manner merchandises it ‘s its cleavage. In add-on, the purpose of Gucci is to open more shops in Asia and eastern Europe. ( Reuters, Nov, 27 )


3.1 Market cleavage

Market cleavages of Louis Vuitton and Gucci are similar. The marks are advancing their trade names and run intoing the rich ‘s demands. The differences are that the monetary value of most Louis Vuitton ‘s pocketbook is higher the monetary value of Gucci and their different manners. aa‚¬A“High quality and civility ” are the selling points of Louis Vuitton which focuses on its classical merchandise leather pocketbook. In the other manus, Gucci adapts to the younger customersaa‚¬a„? demands. Because of the differences of their characteristics and monetary values, their market cleavages besides different. Louis Vuitton targets the clients who are love high quality and baronial. The immature ladies who are fond of “ manner, sex and convenient ” points will take Gucci.

3.2 Marketing Mix

3.2.1 Merchandise

Merchandise is a chief type of marketing mix. Invention is the secret of Louis Vuitton handbags to keep its place, it has a series invention with the alteration of coevals. In order to pull immature adult female, Louis Vuitton cooperated with creative persons Stephen Sprouse, therefore Epi pocketbooks with colorful manner promoted to the market. Now, in order to run into the demands of the younger coevals, launch a series of graffiti pocketbooks. ( Spring and summer manner show of LV in 2010 ) However, Louis Vuitton still continues its manner of baronial and high quality, its pocketbooks more suited in semiformal occasions.

Gucci pays a great attending to its design in its development of 100 old ages. The manner of its pocketbook is convenient and manner, they are besides its alone merchandising points. But compare the quality between Louis Vuitton and Gucci, the pocketbook of Gucci worse than Louis Vuitton. The ground is that Louis Vuitton focal point on the quality of leather and Gucci pay more attending to its manner.

3.2.2 Monetary value

Another component of marketing mix is monetary value. “ The pricing policy that a concern chooses is frequently a contemplation of the market at which it is taking ” ( Hall et al 2008 p75 ) Louis vuitton is more better in leather stuff, the bulk of pocketbooks of Louis Vuitton is more than Gucci. For case, the monetary value of flower pocketbook of Louis Vuitton is RMB 17800, the new manner of pocketbook of Gucci is RMB 6800 in 2008. From these comparative consequences, it can establish that the pocketbook of Gucci is cheaper than Louis Vuitton ‘s. The decision is that Gucci aim the in-between category while Louis Vuitton mark upper category.

3.2.3 Promotion

Presents, publicity plays an of import function in marketing mix. Gucci and Louis Vuitton focal point on the advertisement on Television and manner magazine. Sophisticated manner magazines are their chief publicity media, which help their cleavages become clear and promote worldwide. Such as & lt ; & lt ; Vogue & gt ; & gt ; . The manner of advertisement of Louis Vuitton is baronial and the feeling of Gucci presented to clients is sexy. Both companies promote their production with popular stars. For illustration, Gucci show its new manner with celebrated Hollywood in Oscar or Canned film awards ( 2010 Oscar Movie Award ) . But Louis Vuitton appears its pocketbooks with celebrated theoretical accounts even the successful politician because it meet its practical manner. Furthermore, Louis Vuitton promotes its merchandises with Chinese stars Zhang Ziyi to pull Chinese market. ( 2010, The Waiting City )

3.2.4 Topographic point

Both of Louis Vuitton and Gucci are international trade names and luxury goods, it consequences in their demands on the pick of shops are really high. Therefore, they open shops in the upscale concern territory, such as and Champs Elysees. They divide into different degree shops to run into different society categories, flagship shops and forte shops. Flagship shops with higher degree, in which non merely focused the design of shops but besides reflect the liquors of the trade name. In this twelvemonth, Louis Vuitton opens two shops in major metropolis on the same twenty-four hours in China, Shanghai. ( Shanghai Daily, 2010 ) From this can reflect that the economic system and the population of metropoliss besides are the of import factors to luxury trade names while they taking topographic points.


Harmonizing the comparings between Loris Edition and Guard, acquiring the decision is that these two trade names are quiet similar in market cleavages and selling mix. It can establish that differences in their manners and monetary value, which lead their purposes are different. The manner of Loris Edition is baronial and targets a higher line than Guard, peculiarly reflected in the monetary value of a pocketbook. The characteristics of pocketbooks are convenient and sexy and it more suited for in-between category.

5. Recommendation

Harmonizing the information mentioned above, the line for Louis Vuitton is sophisticated line and its monetary value is excessively high for the immature even it introduce the new manners to run into the yong ‘s demands. Louis Vuitton can advance its merchandises with lower monetary value to run into the immature, it is good for the development of its market cleavage. Gucci needs to care more about its quality of pocketbooks and it can pull more clients to purchase it, particularly the more richer category.


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