Branding and Marketing at LVMH (Louis Vuitton Moet Hennessy)

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A successful project can never be prepared by the single effort or the person to whom project is assigned, but it also demand the help and guardianship of some conversant person who helps in the undersigned actively or passively in the completion of successful project.

With great pleasure I express my gratitude to our project guide                  without their help this would not have been completed. They have given their precious suggestions and constructive guidance has been indispensable in the completion of this project work.

Last but not the least I would also like to thank my friends and all the responded. Who directly and indirectly supported to me during my project work, without the help of whom this project would not have been possible.





 A name used to identify the maker or distributor of a good. A brand was originally a mark burned on the hide of an animal to identify its owner, or on the person of a convicted criminal to warn the public of their character. In some cases a brand name is that of the original maker, which a new owner has retained after the originator ceased to be an independent firm. Brand names benefit producers and distributors, as they facilitate  and building up a reputation for a product or range of products.

Branding may benefit consumers where it is difficult or impossible to discover the quality of a good by inspection before actual purchase. If the maker is easily identified, then a good, which fails to give satisfaction in use, will not be bought again. Producers and distributors know this, and have a strong incentive to maintain quality, and to make amends if they have failed; this incentive is weaker with unbranded.


                A trademark or distinctive name identifying a product or a manufacturer.

Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: Customers, Staff, Partners, Investors etc. Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company(ies) providing them. People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an  theme, as it demonstrates what the brand owner is able to offer in the . The art of creating and maintaining a brand is called .

Careful brand management seeks to make the product or services relevant to the . Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. There are many intangibles involved in business, intangibles left wholly from the income statement and balance sheet that determine how a business is perceived. The learned skill of a knowledge worker, the type of mental working, the type of stitch: all may be without an 'accounting cost' but for those who truly know the product, for it is these people the company should wish to find and keep, the difference is incomparable. A brand, which is widely known in the marketplace, acquires brand recognition.

Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products. Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it.


A luxury brand or prestige brand is a brand for which a majority of its products are luxury goods. It may also include certain brands whose names are associated with luxury, high price, or high quality, though few, if any, of their goods are currently considered luxury goods. Another market characteristic of luxury goods is their very high sensitivity to economic upturns and downturns, high profit margins as well as prices, and very tightly controlled brands.

LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good producer in the world with over fifty brands, including , the brand with the world's first designer label. The  group made a profit of 2bn on sales of €12bn in 2003. Other market leaders include  (after it purchased the  Group) and . A rather small group in comparison, the wealthy tend to be extremely influential. Once a brand gets an "endorsement" from members of this group, then the brand can be defined as a true "luxury" brand. An example of different product lines in the same brand is found in the automotive industry, with "entry-level" cars marketed to younger, less wealthy consumers, and higher-cost models for older and wealthier consumers.

The top ten markets for luxury goods account for 83 percent of the market, and include Japan, China, USA, Taiwan, Germany, Italy, France, UK, Brazil, Spain, and Switzerland. The three dominant trends in the global luxury goods market are , , and . Globalization is a result of the increased availability of these goods, additional luxury brands, and an increase in tourism. Consolidation involves the growth of big companies and ownership of brands across many segments of luxury products. Examples include , and , which dominate the market in areas ranging from luxury drinks to fashion and cosmetics. Leading global consumer companies, such as Procter & Gamble, are also attracted to the industry, due to the difficulty of making a profit in the mass consumer goods market.

Here are the top ten most powerful luxury brands in the world, according to Millward Brown:

1. Louis Vuitton
Last year’s ranking: 1
Overall Brand Value: up 2% to $19.78 billion
Louis Vuitton’s focus on its heritage as a travel brand helped it to retain its core customer–the jet setter.

2. Hermès
Last year’s ranking: 2
Overall Brand Value: up 8% to $8.46 billion
The majority of Hermès is still family-owned (71% is family; 29% is public shares), which means it has the luxury of taking risks when it wants to and staying the course when it doesn’t. For instance, the company–which also owns shoemaker John Lobb–chose at the end of 2009 to buy Shang Xia, a new brand based in China tailored to the Chinese consumer. What’s more, not only does the company charge far more for its handmade leather bags than its competitors, it also keeps tight control on who can sell those bags. (That’s why you shouldn’t find Hermès leather goods anywhere but its own retail boutiques.) This year, the firm also chose to focus on its heritage, sponsoring a horse competition in Paris.

3. Gucci
Last year’s ranking: 3
Overall Brand Value: up 2% to $7.59 billion
Gucci’s partnership with Christie’s–in which the firm appraises vintage Gucci luggage and handbags–gave it a one-up on its competitors. Now, the 
-owned luxury goods maker has a tighter control its secondary market.

4. Chanel
Last year’s ranking: 4
Overall Brand Value: down 11% to $5.55 billion
Chanel’s dip in brand value is a sign of the times, according to Millward Brown Optimor director Pierre Dupreelle. During the recession, consumers turned to more practical products. While Chanel still attracted many with its classic quilted bags, cosmetics and fragrances, those determined to buy just a few investment pieces stayed away from the ready-to-wear. However, Dupreelle feels that consumers are looking for some newness in 2010, which Karl Lagerfeld always brings to the runway. He predicts the fashion house will see an uptick over the next couple of years.

5. Hennessy
Last year’s ranking: 6
Overall Brand Value: down 1% to $5.37 billion
This LVMH-owned cognac brand is ultra popular in China.

6. Rolex
Last year’s ranking: 5
Overall Brand Value: down 14% to $4.74 billion
Rolex, along with many other high-end watch and jewelry makers, suffered greatly throughout the recession.

7. Moet & Chandon
Last year’s ranking: 8
Overall Brand Value: down 12% to $4.28 billion
While it’s not as strong as it once was, Moet is still the top champagne brand.

8. Cartier
Last year’s ranking: 7
Overall Brand Value: down 19% to $3.96 billion
Cartier’s dip in sales affected its ranking. The 
-owned brand reported lower sales through its own boutiques and a more severe decline in sales to third party retailers.

9. Fendi
Last year’s ranking: 9
Overall Brand Value: down 8% to $3.20 billion
Fendi, which is pretty much only known for its string of hit “It” bags here in the US, has an incredible presence in Asia. LVMH is aiming to position the brand, whose ready-to-wear line is designed by Karl Lagerfeld, as its answer to Gucci.

10. Tiffany & Co.
Last year’s ranking: unranked
Overall Brand Value: up 6% to $2.38 billion
While Tiffany didn’t even rank on last year’s list, the brand was heralded in 2009 for its refusal to discount, as well as its plans for expansion in both Asia and Western Europe.




  1. To know about the structure of the brand.
  2. To know about the roles and responsibilities.
  3. To know about the brand strategy.
  4. To gain knowledge on the market.


  1. To understand the various problems faced by the brand.
  2. To get an insight on the future of the brand.




A world leader in luxury, LVMH Moët Hennessy - Louis Vuitton possesses a unique portfolio of over 60 prestigious . The Group is active in five different sectors:

  • Wines and spirits
  • Fashion and leather goods
  • Perfumes and cosmetics
  • Watches and jewellery
  • Selective retailing

Thanks to its brand development strategy, and the expansion of its international retail network (more than 2,500 stores worldwide), LVMH has had a strong growth dynamic since its 

Today, more than 80,000 employees, 77% of whom are based outside France, share the Group's 
. Besides its community action for human development - for example  and the  - LVMH carries out a number of initiatives through its commitment to protecting the . Faithful to its , the Group is also involved in culture and heritage, humanitarian action, education and supporting young artists and designers.


Louis Vuitton was formed in 1854, its earliest inventions included the idea of designing luggage that was flat and could easily stack in railway carriages. 152 years later, Louis Vuitton is a well-known international fashion label and its company, LVMH Moet Hennessy - Louis Vuitton,

believes it still stands for the highest quality products. With a wide range of products comprising of leather goods, ready-to-wear, shoes, watches, jewelry, textiles, writing instruments and accessories, Louis Vuitton have branded themselves as traditional yet innovative to capture its target market. Is what it believes in correct? This report will attempt to measure the brand equity of Louis Vuitton,

based on Keller's brand knowledge model by conducting a brand audit.



Early days

1854- Louis Vuitton opens first store in Paris sells luggage.

1885- First LV store opens in London, on Oxford Street.

1892- Vuitton dies: the Vuitton company starts selling handbags.

Golden age of Louis vuitton

1893- Georges (Louis’s son) begins his campaign to make the company into a worldwide corporation.

1936- Georges Vuitton passes away. Estimates attribute Georges Vuitton with over 700 new Vuitton designs.

Modern age of Louis Vuitton

1978- Vuitton opens its first stores in Asia by opening its first store in korea, in seoul.

1987- Moet et Chandon and hennessy, leading manufacturers of champagne and brandy, respectively merges with Louis Vuitton to form the world’s largest luxury goods conglomerarate, LVMH. The group is partly owned by the Christian Dior group, and Bernard Arnault is chairman and CEO of both companies.

1992- first store in China is opened at the Palace Hotel in Beijing.

Millennium age of Louis vuitton (1997- present)

1997- LV hires designer Marc Jacobs to be the label’s artistic director.

2006- Opens its first store in Norway.

When you think of luxury fashion, the name that instantly pops in the mind is Louis Vuitton. For more than a century, the Louis Vuitton brand has been synonymous with travelling in style. Their bags and suitcases have changed the way you travel. Louis Vuitton managed with their designs to ensure that not only is the exoticness of the place important, but also how you carry your things. And with Louis Vuitton you carry your things in style. Their hallmark is undoubtedly the bags and suitcases but they also design dresses and shoes. Such is the passion for their products that many people are ready to fork huge sums for the bags and accessories. People who don’t understand why some people are ready to pay huge sums for bags and suitcases that are bound to remain hidden should first take a look at the Louis Vuitton signature designs. Even after that, if you don’t go for it then consider yourself blind or tasteless. To know more on the history of Louis Vuitton, read the article given below. 

Information On Louis Vuitton 

This French fashion luxury house was started by Louis Vuitton in the year 1854. He was a Layetier to the wife of Napoleon III and it was during this time that he gained extensive knowledge of the tastes of the French royalty that helped him to start designing his own luggage. He started the LV Company by perfecting the design of the travelling case.


Louis Vuitton revolutionized the design of the travelling trunk. He was the first to introduce the flat-bottomed trunks that were light and airtight. The flat trunks were easy to stack unlike the rounded-top trunks that were prevalent during those days. It became a hit among the travelling folks and subsequently the design was also imitated by other designers. To counter this duplication, Louis Vuitton in the year 1876, changed the Trianon design of the trunks to beige and brown stripes design. He changed the design again in 1888 to the Damier Canvas pattern with a logo.


The first Louis Vuitton store was opened in London in the year 1885 on Oxford Street. In 1892, Louis Vuitton died and the mantle passed on to his son, Georges Vuitton. He steered the company in to a worldwide corporation by holding exhibition of the company’s products, most notably at the Chicago World’s Fair. It was also during his time, in the year 1896 that the Monogram Canvas was launched. The design of this legendary canvas includes graphic symbols like quatrefoils and flowers along with the LV monogram. To prevent counterfeiting the company applied worldwide patents for the design. The Louis Vuitton Building, which was considered to be the largest travel-goods store at the time, was opened in 1913 on the Champs-Elysees. At the start of the World War I, various stores were also opened in New York, Bombay, Washington, and several other places.


When Georges Vuitton died his son, Gaston-Louis Vuitton took over the company. He is responsible for utilizing the leather look in almost all the products. He is also responsible for revamping the Monogram Canvas so that it can also be used for purses and wallets. Seeking to expand its presence in Asia, the company opened its first store in Japan in the year 1978. This was also followed by two more stores in Taiwan and Seoul. To increase its brand value further, the company, in 1983, joined with America’s Cup to form the Louis Vuitton Cup, which is a preliminary competition for the yacht race. In 1987, the Louis Vuitton Company merged with the Moet et Chandon and Hennessy to form a conglomerate called LVMH. By 1989, Louis Vuitton was operating about 130 stores worldwide. 2004 marked the 150th anniversary of the foundation of Louis Vuitton and in that year, it opened its first global store in Shanghai and other stores in New York, Sao Paulo, and Johannesburg.

How a LOUIS VUITTON bag is made?

LV has fashioned its legend of travel adventure by creating luggage, bags and accessories that are as elegant as they are innovative.

Today, as in the past the House cultivates its prized craftsmanship, the passion for the skilled handiwork and the most exquisite materials to create products whose unique value is recognized worldwide. Each stunning detail and signature element respects this long tradition of excellence.

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Bernard Arnault (born 5 March 1949) is a French businessman. He is the founder, chairman, and CEO of , a large luxury goods conglomerate consisting of over fifty luxury brands, including , and . According to , Arnault is the world's 4th and Europe's richest person, with a 2011 net worth of $41 billion.


Marc Jacobs (born April 9, 1963) is an   and the head designer for Marc Jacobs, as well as the  Marc by Marc Jacobs. Jacobs is currently the Creative Director of the French design ...

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