LOUIS VUITTON MOËT HENNESSY
I. Presentation of a giant of the luxury p.
A. The History of Louis Vuitton p.
B. The History of Moët-Hennessy p.
C. The History of LVMH p.
II. A strategic segmentation p.
III. The adopted strategies p.
A. The strategy corporate p.
B. The strategy business p.
C. The strategyof development p.
VMH descended from a fusion of two family small firms, Louis Vitton and Moet Henessi. The group is at present the leader of the world of the industry of the luxury in front of two big groups Richemont and Gucci-PPR. His portfolio contains more than sixty prestigious brands what allows its world fame and its success at the international level. The sector of theluxury represents a world market estimated at 150 billion euro and does not to increase every year. LVMH is in a buoyant market.
We chose LVMH because we are interested in the world of the luxury, and in the future we would like to obtain a work experience to the them in the marketing sector,the communication sector or in the advertising sector during our studies in business school. We found veryinteresting to work for a company which is the leader of the luxury market .
I. Presentation of a giant of the luxury
To understand how LVMH became the world leader of the luxury it is necessary to know at first its history.
LVMH begins with the story of two family-owned Louis Vitton and Moet Henessy. It is thanks to these two companies that a world giant of the luxury was born.A. The History of Louis Vuitton
In 1854, Louis Vuitton opened his own business in Paris. He created handbags and bags with luggage.
His business grew increasingly successful that’s why he opened a new shop outside Paris.
He became famous thanks to the quality of his products and he became the supplier of luggage to many of the most famous people.
In 1876, Vuitton introduced new designsfeaturing red and beige stripes and brown and beige stripes to cover his trunks.
In 1885, his son opened the first Vuitton branch abroad in London.
From 1890, the company did not stop taking out new ranges of products as from very specialized trunks for transporting particular objects to simple bags.
In 1892, Louis Vitton died and his son Georges created a new design featured Louis Vitton’sinitials.
From 1893, Georges Vitton began thinking that sales network abroad was very important that’s why he developed sales in New York city and Philadelphia.The company also expanded its distribution to Boston, Chicago, San Francisco, Brussels, Buenos Aires, Nice, Bangkok, and Montreal in the early 20th century.
In 1954, the company's 100th anniversary, Louis Vuitton moved from theChamps-Elysées to Avenue Marceau. As travel times were cut with the development of trains, cars, and airplanes, the company created and improved its soft-sided luggage. From 1959 to 1965, an average of 25 new models of Vuitton luggage were created each year.
To stop counterfeiters, Vuitton opened a new store in Tokyo and he developped a new market in Asia.
Louis Vuitton stores were opened all over theworld between 1977 and 1987, and Asia became the company's principal export market.
Louis Vuitton began to acquire companies with a reputation for high quality, purchasing interests in the couturier Givenchy and the champagne house Veuve Cliquot.
A large part of the company's success was its ability to respond to the changing modes.
B. The History of Moët-Hennessy
Claude Moet started awine production in the Champagne region. He bought a vineyard and decided selling himself his wine.
In 1743 , he created a company with his son. Their company was named Moët et Cie. They sold their wine to famous people like Mrs De Pompadour and in european countries (Germany, Spain...) and the United States.
Moët and Cie grew much in the early 19th, and people like Alexander of Russia,...