at least 300 words
11-17. What were the possible risks of Louis Vuitton’s first-ever television advertising campaign?
11-18. In fall 2011, the euro/dollar exchange rate was 1=1.10. Assume that a European luxury goods marketer cut the price of an $8,000 linen suit by 10 percent when launching its spring 2015 collection. How would revenues have been affected when dollar prices were converted to euros?
11-19. Louis Vuitton executives raised prices in the late 2000s, and sales continued to increase. What does this say about the demand curve of the typical Louis Vuitton costumer?
11-20. Compare and contrast LVMH’s pricing strategy with that of Coach
(same questions in the new edition case, but different numbering. Case description is identical (i.e., the written information is the same):
Exchange Rate Math
$8,000 – 10% ($800) =
7,200 USD / 1.1 = 6,545 €
$8,000 / 1.35 = 5,925 €
6545-5925 = 619 € more
Or 619 € x 1.1 = $680 more
Positioning Map for Hand Bags
#6 Hermes Matte Crocodile Birkin Bag – $120,000. …
#5 Urban Satchel Louis Vuitton Bag – $150,000. …
#4 Lana Marks Cleopatra Bag – $250,000. …
#3 Chanel “Diamond Forever” Handbag – $261,000. …
#2 Hermes Birkin Bag by Ginza Tanaka – $1.9 million. …
#1 Mouawad’s 1001 Nights Diamond Purse – $3.8 million.
Most Expensive Handbags
Commercials for other
Coach is a luxury bag brand, but it is at an entry level price point, that is, for luxury – meaning the lowest price of the luxury brands.
Information from your textbook is below:
· For example, suppose that a luxury goods marketer such as Coach initiates a study of consumer perceptions Exhibit 6-5 Managers at luxury goods brand Coach rely on extensive qualitative and quantitative consumer The figure shows that Burberry and Coach are perceived as the most similar while Coach and Dior are the Different 1 2 3 4 5 Burberry/Gucci Burberry/Coach designer could find an optimal ubiquity/accessibility balance and fit in the gap between Burberry, Coach
· Burberry, Chanel, Coach, Gucci, and other luxury brands are cultivating official online communities on
· Coach has been described as “a textbook lesson on how to revitalize a brand.” Are the approaches evident at Burberry and Coach similar?
· Price: “Affordable luxury” is central to the value proposition: more expensive than Coach, less expensive intends to leverage consumer insights gleaned from Burberry’s strong digital presence