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FASHION MARKETING AND BRANDING 2 1
Fashion Marketing and Branding 2
Louis Vuitton brand: Female Handbag in Canadian Market
Source; LUXEPOLIS. Retrieved from https://www.luxepolis.com/all-brands/louis-vuitton/
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Abstract
Figure 1: Louis Vuitton brand Female Handbag
FASHION MARKETING AND BRANDING 2 2
Leading fashion brands faces several global and local challenges. As a result, they have to
implement appropriate marketing strategies to survive and grow in an increasingly competitive
and challenging market. This report outlines critical situational analyses for Louis Vuitton
fashion brand in the Canadian market, identifying key opportunities and threats. Building on the
situation analysis, the report further outlines a developed marketing strategy for Louis Vuitton's
female handbag. It also presents how the proposed strategy will help the brand achieve a
successful competitive position in the Canadian market. Besides, the report outlines the
developed integrated marketing communication plan for the female Louis Vuitton handbags in
Canada.
Table of Content
FASHION MARKETING AND BRANDING 2 3
Fashion Marketing and Branding 2.............................................................................................................1
Louis Vuitton brand: Female Handbag in Canadian Market........................................................................1
Abstract.......................................................................................................................................................2
List of Tables...............................................................................................................................................4
List of Figures.............................................................................................................................................4
1. Introduction.........................................................................................................................................5
2. Situational Analysis.................................................................................................................................6
2.1 PESTEL.............................................................................................................................................6
2.2 SWOT................................................................................................................................................7
2.3 Competitors Analysis........................................................................................................................8
2.3.1 Major competitors.......................................................................................................................8
2.3.2 Competitor’s goal and objectives................................................................................................9
2.3.3 Competitor’s Strategies and Tactics............................................................................................9
2.3.4 Competitor’s strength and weakness...........................................................................................9
2.4 Which brands to attack?...................................................................................................................10
2.5 Market Segmentation.......................................................................................................................11
2.6 Target Market..................................................................................................................................11
2.7 Louis Vuitton Business model.........................................................................................................12
3. Key objectives.......................................................................................................................................13
4. Marketing strategy.................................................................................................................................13
4.1 Ansoff’s Matrix...............................................................................................................................14
5. Marketing Programmes.........................................................................................................................16
5.1 Product............................................................................................................................................16
5.2 Price.................................................................................................................................................16
5.3 Place................................................................................................................................................16
5.4 Promotion........................................................................................................................................17
5. Marketing Communications Plan..........................................................................................................17
5.1 Aim..................................................................................................................................................17
5.2 Message...........................................................................................................................................18
5.3 Objectives........................................................................................................................................18
5.4 Channel............................................................................................................................................19
FASHION MARKETING AND BRANDING 2 4
5.5 Communication Plan.......................................................................................................................20
5.6 Measuring effectiveness of the Communication Plan......................................................................22
6. Conclusion.........................................................................................................................................22
References.................................................................................................................................................23
List of Tables
Table 1: Canada Fashion Industry PESTEL/PESTLE Analysis......................................................6
Table 2: Louis Vuitton SWOT Analysis.........................................................................................7
Table 3: Louis Vuitton Business model.........................................................................................11
Table 1: Communication Plan.......................................................................................................18
List of Figures
Figure 1: Louis Vuitton target market...........................................................................................11
Figure 1: The Ansoff Matrix..........................................................................................................13
FASHION MARKETING AND BRANDING 2 5
1. Introduction
Different fashion brands exist in the current market places. However, brands vary
significantly depending on their target market. Some are luxury, while others are regular brands.
Louis Vuitton is among the globally known luxury fashion brand (Kim, 2019). This brand has
exemplary flourished in numerous countries such as Canada because of several reasons.
Louis Vuitton was chosen because of several reasons. First, Louis Vuitton is among the
oldest fashion brands globally. It was established in 1854, specialized in monograms and
personalized luggage and handbags (louisvuitton.com, 2020). Currently, the brand leads to the
production of luxury briefcases and suitcases, jewellery, watches, shoes, accessories, ready-to-
wear leather merchandise, books, and sunglasses (Park and Yim, 2018). Louis Vuitton is also
the preferred choice for public personalities and celebrities. The brand is thus suitable for the
working class and high-income class in the community. As stated by Park and Yim (2018),
company distributes its products through its website, chain of stores, and high-end retail chains.
Louis Vuitton was voted as the most valuable luxury brand globally for six consecutive years
from 2006 to 2012 (Forbes (2020).
Although the brand has been established in numerous countries, it has been in Canada for
over 35 years (louisvuitton.com, 2020). It was, therefore, necessary to focus more on the Louis
Vuitton fashion brand in Canada. Besides, despite operating with only three retail stores in the
country, the company is planning to add five more standalone stores in the country (Patterson,
2019). Such indicate the potential for growth within the country than any other. Moreover,
Patterson (2019) further reports that Louis Vuitton has initiated its ‘Time Capsule’ exhibitions in
the north side of Toronto with an artisan’s room on the entrance that features and showcases the
FASHION MARKETING AND BRANDING 2 6
brand's archives ranging from its first products to the current contemporary collections. Canada
thus becomes the eleventh country to host the exhibition in the world that indicating the potential
growth of the city for Louis Vuitton products.
Despite the many accessories and wears produced by Louis Vuitton, it is widely known
for producing luxury bags. Thus, it was found most appropriate to discuss Louis Vuitton
handbags in the Canadian market. Louis Vuitton's women handbags in Canada were selected
because the participation of Canadian women in the labor market has been on the rise for many
years. Currently, over 74% of women in the country are either employed or looking for jobs
(McAllister et al., 2019). In addition, women occupy the largest share of professional and tech
jobs in the country, accounting for 57.6% of the workforce (Usalcas and Kinack, 2017). Around
35.4 % of women in the labor market occupy senior positions. Thus, although the Louis Vuitton
brand is expensive, women in Canada can buy such products. Most of them are within the Louis
Vuitton target market; high income and working class.
2. Situational Analysis
2.1 PESTEL
The PESTEL analysis was considered for the fashion industry within the Canadian market.
Some of the key factors influencing the industry were identified as below;
Table 1: Canada Fashion Industry PESTEL/PESTLE Analysis
Canada Fashion Industry PESTEL/PESTLE AnalysisPolitical EconomicThe government encourages companies to but most fabrics from local industries.
Canada is ranked as the 10th Largest economy in the World as by April 2018 (U.S. News, 2020
FASHION MARKETING AND BRANDING 2 7
Volatility due to political factors is not expectedThe country is currently politically stable expect the tension created by the Brexit which is expected to increase the pervasive sense of global economic uncertainty
The country has membership in the World Trade Organization (WTO), G20, Organisation for Economic Co-operation and Development (OECD), and the Commonwealth of Nations (Stephens and Navarro, 2018)Besides, the country has a free trade agreement with several other countries such as the Comprehensive Economic and Trade Agreement (CETA) that was signed with the EU in September 2017Canada developed a mixed economy
Social TechnologicalCanada has the highest living standards globally. Customers in the country are confident about their job sustainability and the economy in general. Thus, people in Canada are willing to spend than any other country.Most people prefer high standard products with excellent after-sale services (Nalchigar et al., 2016).Most people in the country are embracing online shopping, with most young customers increasing the use of tech devices for online shopping.
Canada has diversified its technology application in education, leisure, and career.Tech devices use in online shopping is also on the rise.The millennial is the highest online shoppers with a preference for personalized experience in terms of both customer services and shopping terms (Nalchigar et al., 2016)
Environmental LegalMany Canadian are highly committed to protecting the environment.There is currently pressure for people to boycott fabrics derived from animal products creating demand for natural fabrics over synthetic.
The government of Canada protects certain employees’ rights.A corporation is a preferable means of entering Canada for most international businesses.
2.2 SWOT
Louis Vuitton has several strengths, weaknesses, opportunities, and threats it faces within the fashion industry.
FASHION MARKETING AND BRANDING 2 8
Some of them are as listed below;
Table 2: Louis Vuitton SWOT Analysis
Louis Vuitton SWOT AnalysisStrength Weaknesses
Brand recognition Strong association to
quality Wide network Top celebrity
endorsements Top designers Exclusive
merchandise
Over-reliance on the Japanese market Lack of foreign culture sensitivity Excessive centralization Exorbitant pricing
Opportunity Threats Rise in per capita
income Growing market
potential Increase in the number
of working women
Managing multinational customization Counterfeiting
Source: Bhasin, 2019. Retrieved from https://www.marketing91.com/swot-analysis-louis-
vuitton/
2.3 Competitors Analysis
2.3.1 Major competitors
Louis Vuitton is a luxury brand; however, it suffers competition from both other luxury
brands and also regular brands.
FASHION MARKETING AND BRANDING 2 9
The most identifiable Louis Vuitton women handbag competitors in the Canadian market as
listed by Brydges (2018) include Gucci Jackie, Chanel, Michael Kors, Kate Spade, Matt and Nat,
and Montreal-based Partoem.
2.3.2 Competitor’s goal and objectives
The primary aims of competitors to penetrate the Canadian market and occupy the largest
market share. Besides, most competitors aim at covering all market segregation while
maintaining their strong market brand image.
2.3.3 Competitor’s Strategies and Tactics
Numerous handbag brands in the Canadian market employ diverse strategies and tactics to
remain competitive.
Among the luxury brands such as Gucci Jackie, Chanel, Michael Kors, and Kate Spade they have
used the following strategies (Kim, 2019);
1. Offering high-quality products
2. Maintaining product value
3. Use online platforms to improve and promote sales
4. Diversifying products
Other marketing strategies for local brands include (Brydges, 2018);
1. Frequent advertising
2. Promotion campaigns
3. Producing affordable products
FASHION MARKETING AND BRANDING 2 10
4. Diversifying their products to suit different occasions
2.3.4 Competitor’s strength and weakness
Louis Vuitton's competitors have several strengths and weaknesses.
Strengths;
1. Brand such as Gucci are also luxury but have lower prices compared to Louis Vuitton
(Pastore, 2018)
2. Market share of local brands is high compared to imports (Brydges, 2018)
3. Some of the brands have a strong brand image (Kim, 2019)
4. Most competitor brands have diversified their products
5. The local government promotes local brands while imposing a hefty tax on international
brands (Liu et al., 2018).
Weakness;
1. Local brands lack customer loyalty (Brydges, 2018)
2. Some brands such as Gucci have become common hence no sense of product value
(Pastore, 2018)
3. Some brands such as Chanel, Michael Kors, and Gucci have handbags entirely made of
animal skin, which has less market demand in Canada (Lee, A., 2018).
2.4 Which brands to attack?
Louis Vuitton is currently penetrating exemplary in the Canadian market. The company
is even increasing its stores in the country, indicating a more significant market share (Patterson,
FASHION MARKETING AND BRANDING 2 11
2019). The company should currently target at introducing exclusively none animal products
related to handbags. The Canadian market is embracing this culture and thus has a high potential
for growth for Louis Vuitton.
2.5 Market Segmentation
Given that Canada has a higher number of women in the employment sector, Louis
Vuitton should highly focus on working officials (Usalcas and Kinack, 2017). This market is
characterized by people with a good sense of fashion due to their income capabilities. The
company’s dominant market segment includes high-class families. Most wealthy families prefer
luxury brands with a sense of creativity, uniquely suited for them (Amatulli, et al., 2017). The
last segregation is celebrities and public figure individuals such as those in leadership. The group
of people prefers tailor-made products that suit their preferences (Kim, Lloyd, and Cervellon,
2016).
FASHION MARKETING AND BRANDING 2 12
2.6 Target Market
Louis Vuitton as a luxury brand currently targets more on working class, high class families,
public personalities and celebrities (Guo and Zhang, 2020).
2.7 Louis Vuitton Business model
Several scholars have outlines the current Louis Vuitton Business model (Guo and Zhang, 2020;
Manlow, 2016) . Although there are disparities between their outlined business model canvas,
most of the scholar have the below outlined factors.
Louis Vuitton Target Market
Public Personalities
Celebrities
High Class Families
Working officials
Figure 2: Louis Vuitton target market
FASHION MARKETING AND BRANDING 2 13
Table 3: Louis Vuitton Business model
Key Partners Key activities Value proposition Customer relationships
Customer Segment
Model agenciesKnown personalities Raw material suppliers Local partnerships
Production New stores
Status symbolSpecial ordersQuality products Timeless products Modern fashion
Fashion goods; ready-to-wear shoes, watches, and JewryLeather goods; Luxury luggage, bags, other accessories
Lifetime free repairsExclusive clubPersonal assistance
Luxury shoppers aged 25-50Loyal clientsHigh-income men &women
Key resources ChannelsKnow-how staffmaterial
Exhibition A limited number of storesNewspapers
Cost structure Revenue StreamProduction related costs Sale of goods
3. Key objectives
The main marketing objective for Louis Vuitton women handbag in Canada is to build
brand awareness to grow market potential and extend its target market to cater to college
students. From SWOT analysis, one key opportunity for the company is its growing market
potential. At the same time, a significant threat faced by the company is counterfeiting.
Increasing market awareness on the existence of counterfeit products will help grow Louis
Vuitton in Canada.
FASHION MARKETING AND BRANDING 2 14
Arguably, considering the number of high school students with the ability to purchase
such products, there is a need for the company to consider this segment. Many students in
college are employed on part-time terms. Thus, they have an income additional to family
support. As such, this segment is highly influenced by peer pressure and thus likely to buy if
influenced.
4. Marketing strategy
Choosing the best marketing strategy that fits the identified target market is essential for
the success of Louis Vuitton women's handbag in the Canadian market as well as achieving the
set objectives. Considering the primary target market are college students, the working official,
and high class aged between 20 years to 50 years, use of social media will be the most
appropriate strategy.
According to a study by Winseck (2019), about 94% of households in Canada have
internet access. For the remaining population not connected, only 8 % reported unavailability of
the internet. Such indicates that the country is well developed in terms of internet use. Also, 88%
of the population has access to smartphones. Another report by Clement (2019) indicated that
Canadians are leaders in social media usage. As a result, marketers have found social media to be
the best place to reach the audience. The government has also maneuvered ways of utilizing
social media to reach its citizens.
FASHION MARKETING AND BRANDING 2 15
4.1 Ansoff’s Matrix
Figure 3: The Ansoff Matrix
Source: Corporate Finance Institute. Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
According to Ansoff’s matrix, Louis Vuitton should focus on market development. The company
should target on reaching a broader market segment to include college students. Since the
company has already penetrated the Canadian market, it should now focus on a new segment to
increase its sales and market share in the country.
4.2 How the strategy will enable the brand to achieve a successful competitive position in
the market
Different Louis Vuitton women handbag competitors in Canada use several means of
marketing. For most luxury brands such as Gucci, highly depend on advertisement and
promotion (Clow, 2016). Consequently, the local brands within the market also use diverse
FASHION MARKETING AND BRANDING 2 16
marketing strategies to reach their target market. Although some have embraced advertisements
through social media to create awareness and attract more customers, there is still non ventured
approach of using social media that Louis Vuitton should focus on.
From a study by Clement (2019), Facebook occupies 77%, with LinkedIn and Instagram
occupying only 35% each. The least include Twitter and Snapchat, with 26% and 19%,
respectively. However, Reddit also an upcoming social media in Canada with great reach
(Bogers and Wernersen, 2014). With this information, Louis Vuitton can diversify its strategy
among the different social media and different strategies to become competitive among its
competitors.
5. Marketing Programmes
Several strategies based on the marketing mix should be employed to achieve the set target.
5.1 Product
As analyzed in this report, the primary focus on the product is women handbags. Women
handbag is among the most selling accessories in many fashion brands. Besides, despite the
diversification in Louis Vuitton products, the company is widely known to be producing the best
bags globally. Besides, a handbag is a significant component that defines fashion for ladies.
5.2 Price
According to Clement (2019), Louis Vuitton is widely regarded as the most luxurious
brand for many years. Even though its high cost compared to other brands in the market, Louis
Vuitton has maintained its brand image through higher prices. Therefore, making it highly
FASHION MARKETING AND BRANDING 2 17
affordable will kill its brand image and value. Although proposing for a new segment, the
company should maintain its price ranges.
5.3 Place
Louis Vuitton currently operates three chain stores across Canada. Thus there is a need to
increase the number of stores where customers can get the products. Although it’s not possible
to open a retail store every city across the country, the company can partner with other agencies
to make them outlets for their products. However, to cater for the new market segment, the
company should consider agencies that are closer to learning institutions (Pawlowski, 2018).
5.4 Promotion
Considering the new trend in the use of the internet and social media among the millennials
in Canada, Louis Vuitton should focus on reaching the new market segment through social
media. The following strategies can be employed to ensure a broad reach and enhance
awareness;
1. Creating video tutorials- the company can employ the use of a short video of almost 15
seconds to enable faster sharing across different social media platforms.
2. Use leverage influencers- since penetrating to all colleges’ social media platforms might
be challenging, the company should select specific people with many followers ans broad
connectivity to help them reach the new target market.
3. Use Facebook ads with re-targeting- currently, Facebook commands 78% of the social
media users, thus making Facebook ads would be the best approach to reach this
population.
FASHION MARKETING AND BRANDING 2 18
5. Marketing Communications Plan
5.1 Aim
Critically, as indicated in this report, there is room for the Louis Vuitton brand to expand
its target market segment to cater for college students in Canada. This market has potential
growth for the company in this country because of the social-economic status and willingness to
spend. Besides, the market has a higher sense of fashion compared to Louis Vuitton 's initial
target in Canada. However, to let this new segment be aware of the brands and its associated
perceived value of luxury and prestige, there is a need to create awareness. The primary aim of
this communicant plan is thus to let female college students know about the Louis Vuitton
brand handbag brand (Pawlowski, 2018).
5.2 Message
For the success of the communication and campaign to increase awareness of the Louis
Vuitton handbag brand among female college students, drafting a message made explicitly
for this market should be made with specific consideration. First, the message should be
drafted informally. Many millennials are highly attracted to an informal mode of
communication than formal (Pawlowski, 2018). Besides, this group communicates typically
in an informal way to each other.
The following are the most appropriate proposed messages;
FASHION MARKETING AND BRANDING 2 19
1. “Carry your staff in style. Try Louis Vuitton handbags and have the best brand
experience. Be updated; choose fashion.”
2. “Louis Vuitton offers the best handbags with the latest swag. Study in style, choose
Louis Vuitton .”
5.3 Objectives
The primary objective of the communication plan involves;
1. Creating awareness of the Louis Vuitton handbags among the new market
segment
2. Campaigning against counterfeit and insisting on buying the products from a
verified vendor
3. Promoting the brand image
4. Creating purchase desire among female college students
5. Increasing sale
6. Creating and enhancing brand loyalty in the selected segment
7. Emphasizing the importance of being classy and up to date with fashion
5.4 Channel
From the analysis done while coming up with the market strategy, the use of social
media was found to be the most effective method of promoting Louis Vuitton handbags
sales among female college students in Canada. A combination of several social media
platforms will be used to enhance its effectiveness.
FASHION MARKETING AND BRANDING 2 20
The communication should be done through Facebook, LinkedIn, and Instagram.
However, it can further be extended to snapshot. On average, these mark the significant
social media among millennials in Canada. As such, it will be possible to achieve at least
90% of the targeted audience.
Several means will be used to pass the message. First, the company should rely on
Google ads posted on both Facebook and Instagram. Google has enough information from
data collected while people are browsing; hence can post the ads to the right target market.
Besides, since the selected segment is highly influenced by peer pressure according to
Inguglia et al. (2019), it will be essential to find influencers within the colleges. Those with
the highest followers or connections in their network will be preferred. The identified
influencers should be given the bags on promotion in addition to being paid a stipend to
enhance their ability to reach a wider market.
5.5 Communication Plan
According to Inguglia (2019), several plans should be put in place to ensure the
identified objectives are met. For easy following and monitoring, the plans should be
broken down in steps with each step having the duration and activity required. Such will
ensure that the plan is done within the given schedule and can be achieved easily. Besides,
the plan will help maintain focus on the laid objectives.
Table 4: Communication Plan
Steps Duration TaskCommunication Plan audit Three weeks Market research and analysis Developing the ads and Nine weeks Contracting producers and animators
FASHION MARKETING AND BRANDING 2 21
short videos Analyzing the proposed ads and videosPlanning Five weeks Rechecking the outlined communication
plan and viability of the produced ads, and videos
Choosing influencers Nine weeks Researching on numerous social media to find female college students with the broadest network
Liaising with Google ads One week Following up with Google ads to identify numerous ways of doing the advertisements in social media
Implementation Continuous Constant evaluation and analysis of the plans and steps put in place. Identifying errors and areas of improvement to maximize the communication plan.
The Communication Plan audit is projected to take at most three weeks. Such is because;
this report has already reviewed most aspects of the target market and market strategy.
However, to have a better view of the situation and support this report, another through a
study is necessary. The study will further break down how the outlined social media has
penetrated among the segment market to determine the best media to emphasize more on.
In Developing the ads and short videos, although most advertising companies can help
develop the best videos, Louis Vuitton should consider hiring animators and producers on
contract. Their work will be to come up with the best short ads and videos to be shared
across numerous social media. Nine weeks will be enough to allow the company to analyze
the ads and videos and suggest charges if need be.
FASHION MARKETING AND BRANDING 2 22
In planning, the company will analyze the laid down strategy and evaluate the produced
clips and ads to determine where they suit best. The five weeks will be enough for the
company to do a case study and even try to investigate how a particular population behaves.
In choosing influencers, the company will search the different identified social media and
outline the female student with the highest number of followers within the colleges.
Besides, the study will also aim at identifying the most stylish students. Such can be
achieved through raising a campaign within the social media for the student to compete
among themselves in regard to the most followed person or the most stylish student in their
school. Basically, the step will also involve contacting the influencers informing them of
the planned campaign for the Louis Vuitton brand.
Liaising with Google to post ads on Facebook and LinkedIn will not take long; one week
will be enough. Although separate entities, Google is currently liaising with different social
media to help companies advertise.
The implementation step will run throughout the schedule. After every step, the company
should evaluate its effectiveness and identify errors to ensure the smooth running of the
communication plan.
5.6 Measuring effectiveness of the Communication Plan
Several strategies will be employed to measure the effectiveness of the proposed
communication plan. First, considering the objectives, an evaluation of the objectives will be
done monthly. Such will help identified unachieved targets and evaluate the effectiveness of the
laid plan in achieving the objective. Besides, the identified influences will be required to send
FASHION MARKETING AND BRANDING 2 23
weekly reports on the number of students reached as well as a summary of the responses to
evaluate how the target population or the general public perceives the brand. Additionally, a
follow up will be done daily to evaluate the effectiveness of Google ads on social media.
6. Conclusion
The Louis Vuitton brand is well established in Canada. Among the most selling products of
this brand include female handbag. However, the country can increase its sales and market in the
country by strategizing for market development. Such can be achieved through planning to
include female college students as a new market segment. With the highest number of this
segment using social media, the company should use social media as the best marketing strategy.
Such can be done through following a well laid down communication plan to Facebook,
Instagram, LinkedIn, and Snapchat.
FASHION MARKETING AND BRANDING 2 24
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