Ansoff Matrix of Louis Vuitton

Louis Vuitton is a retail luxury fashion house and French Multinational Corporation. Louis Vuitton founded the fashion brand in 1854. Today, we’ll discuss the Ansoff matrix of Louis Vuitton; and its four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification growth strategy of Ansoff matrix business example.

Elements of Marketing Penetration Strategy of Louis Vuitton

• Exclusive and limited fashion item range
• Promoting the excellence of craftsman and the quality of their work
• Conduction and organizing Fashion exhibitions
• Focsing on luxury, traveling, and adventure
• Collaborates with world’s top designers, artists, and stylists
• Celebrity endorsement and brand ambassadors
• Unique and immersive experiences at its retail stores

To Selling Markets and Geographical Regions of Louis Vuitton (Growth Rate)

• USA – 32%
• France – 7%
• Europe – 20%
• Japan – 6%
• Asia – 21%
• Wordwide – 14%

Latest and Best Selling Collection of Louis Vuitton

• Sparkling LV earings
• Iconic LV ring
• Slingback pump
• Cardigan jewel buttoned
• Mini bumbag
• Belt LV
• Midi skirt
• Crop top
• Neo sneakers
• Nanogram speaker silver and copper
• Mix pear necklace

The Ansoff matrix of Louis Vuitton would analyze the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here’s the Louis Vuitton Ansoff matrix company example as follows;

Ansoff Matrix of Louis Vuitton

Let’s discuss the four growth matrix strategy analysis quadrants of the Ansoff matrix of Louis Vuitton as an Ansoff matrix company example; they’re as follows;

Market Penetration Strategy of Louis Vuitton

The market penetration quadrant in the Louis Vuitton Ansoff matrix business example as a growth matrix strategy has the lowest risk in the growth strategy. It is because here the fast-fashion brand sells its current products and services in the existing customer market. However, the luxury fashion market is growing, and the market penetration growth strategy is possible.

I-Celebrity Endorsement

Louis Vuitton hires various celebrities as brand ambassadors. They have a huge fan following and their product and brand endorsement help the company to further penetrate the market. Some of the main Celebrities that the luxury premium fashion has worked with are as follows;

• David Bowie
• JO1
• Mikhail Gorbachev
• Gisele Bundchen
• Angelina Jolie
• Mathias Schoenaerts
• Sean Connery
• Madonna
• Kim Kardashian
• Keith Richards

II-Marketing & Advertisement

Louis Vuitton implements marketing and advertisement campaigns for the promotion of its luxury premium fashion products and brands. The company employs various media channels to penetrate the market and offer its existing products to new customers.

III-Customized & Personalized Products

Louis Vuitton offers fully customized and personalized fashion products and goods to rich and wealthy clients. The unique feature helps the company to attract such customers that looking for fully customized offers.

Market Development Strategy of Louis Vuitton

The market development quadrant in the Louis Vuitton Ansoff matrix business example as the growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your luxury fashion market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Global Market Expansion

Louis Vuitton has established a network of 460 stores in 50 countries across the world. There is great room for expansion in the Asian, Middle East, and African markets. The luxury premium fashion house should open up new stores in the new regional markets to amplify its brand name.

II-Collaboration & Alliances

Louis Vuitton collaborates with the world’s leading fashion designers like Nicolas Ghesquiere and others. The company developed strategic alliances with BMW and other brands. However, such types of alliance and collaboration help the company to amplify its market reach, influence, and target new segments of the customer market.

Product Development Strategy of Louis Vuitton

The product development quadrant in the Louis Vuitton Ansoff matrix business example as the growth matrix strategy has a higher risk than the market penetration strategy. It is because here you launch a new product service in the fashion line for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Sustainability Research Center

Louis Vuitton is building a sustainability research facility that focuses on eliminating the usage of plastic from the fashion industry. It will become operational in late 2024 with the objective of sourcing sustainable sources of raw materials and supplies for the fashion industry.

II-New Designs and Styles

LVMH invests a significant amount of capital resources in research for the development of creative fashion designs and styles. According to an estimate, the fashion brand allocated 139 million Euros to research in 2019. It shows the company’s commitment and dedication to creative fashion designs and product variants to improve the existing and new products.

Diversification Strategy of Louis Vuitton

The diversification quadrant in the Louis Vuitton Ansoff matrix business example as a growth matrix strategy has the highest risk growth strategy of all three previous growth strategies. It is because here you launch a new retail luxury fashion clothing product or service in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

Louis Vuitton has successfully expanded its business and product portfolio in the global market. The premium luxury brand plans to do the same in the future. It may seem like a risky business strategy, but the company has the resources, commitment, dedication, and expertise to reach the finish line.

Conclusion: Louis Vuitton Ansoff Matrix Company Example |Ansoff Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of Louis Vuitton; we have realized that Louis Vuitton is the world’s leading retail luxury fashion brand. If you are learning about the Louis Vuitton Ansoff matrix company example; then you should keep in mind the abovementioned growth matrix strategy quadrants; market penetration, market development, product development, and diversification.