Present

MM6016 Branding and Marketing Communication

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Haidir Afesina Wirania Swasty Chairunnisa Mirhelina F X Kresna Paska Aqsa Adhiperwira Fajar Liem

IN INDIA

Case Highlights

Prepared & Presented by:

LVs Products

LVs Store
Found In 1854 in France Merge with 1987, with Moet Hennessy to from LVMH Group Business segment: Fashion & Leather, Wines & Spirit, Perfumes & Cosmetics, Watches & Jewelry, Retail Almost staff worked overseas (out of 72,000) Net Income in 2007 -> USD 2.3 Billion

LV is all about travelling

Prepared & Presented by:

Prepared & Presented by:

Prepared & Presented by:

Luxury Consumers

Functional & Quality (Logical)

symbols (reward) / Feel Good Factor (Emotional)

Status

Self-indulgence

Prepared & Presented by:

Luxury Consumers in India

Status

symbols

personal statement I have made it Pride and Power Social acceptance Crme de la crme (People of the highest social level).

Prepared & Presented by:

High-end Product vs. Low-Income Economy

Can this contradiction Be resolved?

Prepared & Presented by:

MARKET SIZE
ECONOMY
India 2nd

TARGET MARKET
Target

biggest population in the world (1.03 billion) 3rd biggest Economy in Asia (China, Japan) 12th Biggest Economy in the World HNW in India is worlds second fastest growth 19.3%

High Net worth Consumers CEO, Non-Resident Indians, and Bollywood actors Cocooners rise from 97 million to 583 million in 2025 Tourist

Prepared & Presented by:

Customer Segmentation
INDIA's HNW TARGET AND NUMBER OF HOUSEHOLDS
Near Rich 23,000 - 46,000 USD Rich 46,000 - 228,890 USD Super Rich Over 228,890 USD

1995-1996 2001-2002

188,000 546,000

74,000 242,000

5,000 19,000

2005-2006
2009/2010

1,576,000
2,374,000

557,000
1,320,000

52,000
142,000

128,000 INR = $ US 2,370

128,000 INR = $ US 2,370

25,000 INR = $ US 462

189,000 INR = $ US 3,500

Prepared & Presented by:

External factors hindering The purchase of luxury goods

Prepared & Presented by:

Negative External Factors

Political :

Lack of Government Support (banned) Increased in Custom Duties (high tariffs)

Environment:

Lack of Advertising to Communicate Distribution Channel (Infrastructure)

Great Knock-off Item (High quality fake product) Credit Card Issues

Technological:

Social:

Rich people leave India Culture

Recession

Economical:

Prepared & Presented by:

Luxury goods marketers form retail clusters

1. One stop shopping
enhances access to customers by gathering products

2. Saving costs & maintaining customers

High Quality Products & Value Chain. give scale to individual store by the sheer number of shoppers

3. Achieving higher value together

each brand has to maintain and improve the quality & value.

luxury goods marketers are right in forming a luxury retail clusters in the purpose of sale and cost effectively

Prepared & Presented by:

Luxury brands look for luxury hotels

The current luxury customer is

highly sophisticated and brand literate

1. attract the customers awareness

-gathering point for society and a hub for travellers -wealthy people would like to come & enjoy their wealthy life

-feel special as well as their lifestyle is proved

2. support for the brand status

- luxury usually goes with luxury

-selling approach methods to these customers.

Prepared & Presented by:

Luxury Malls
a collection of stores bonded by

shared facilities

and a common infrastructure best alternative for store location after luxury retail cluster

Prepared & Presented by:

A luxury mall works for luxury marketers

1. Has strength of gathering several different luxury brands in one place
2. Once the luxury mall is doing well, the luxury goods are known well too.
marketers do not need to do many things on create awareness, develop strategy and promotion sales.

3. Give 4P advantages :
Dont need to find the store location with highly selling potential again. dont have to do market research to identify a suitable price at a special point. no more need to create customer mind set about their luxury brand. has various promotions that suitable for each season

Price

Products

Promotion

Place