BRAND AUDIT

MMS – Sem III / Marketing

Subject:-
Product and brand management

Submitted by:-

Gurpreet Arrora A/04

Nihal Fernandes A/18
Kalpesh Nahata A/38
Abstract

This brand audit report is for Louis Vuitton. The purpose of doing this is
to evaluate the brand equity of Louis Vuitton, both from the customers'
and firm's perspective. As the brand equity is based on brand knowledge,
(Keller, 2003) the brand audit is carried out through a survey designed to
measure two components of brand knowledge; namely brand awareness
and brand image. In conclusion, it was found that the consumer can
recall Louis Vuitton and they do recognize the brand. They also see Louis
Vuitton as a brand that represents quality, expensive and exclusive and is
unique when compared to other brands such as Gucci. This result will
hopefully be able to set the strategic direction for the Louis Vuitton
brand.

Introduction

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.
Methodology

The Brand Inventory:

In conducting the brand inventory for Louis Vuitton, the brand's website
was closely examined. On the website the products were clearly listed,
with most of the associated brand elements being displayed on the
products. Secondly, an examination of a trade mark Louis Vuitton store
completed the gathering of brand elements. This information enables an
understanding of the brand from the firm's perspective, since it shows
the possible sources of brand knowledge available to the customer.

Louis Vuitton has a large range of bags under its brand, and so this
section will focus on the different lines available.

Women:
Monogram Canvas
Monogram Denim
Monogram Multicolore
Monogram Mini
Monogram Vernis
Monogram Vienna
Monogram Ambre
Damier Canvas
Suhali Leather
Epi Leather
Antigua
Cruise Collection
Fall-Winter 2005/06 Collection
Men:
Monogram Canvas
Damier Canvas
Damier Geant Canvas
Taiga
Utah
Nomade Leather
Epi Leather

In Mumbai the range of products that is available is as follows:

Product Range:

Women shoes, mens shoes, handbags, wallets, luggage bags, watches

and sun glasses.

Price Points:

A. Women Hand bags - Rs.18000-250000

B. Men Hand Bags - Rs.60000-300000
C. Wallets - Rs.12000-15000
D. Men shoes - Rs.25000-75000
E. Women shoes - Rs.25000-75000
The Brand Exploratory:

A variety of research procedures were used to obtain timely and accurate

information about the knowledge that exists in the market on Louis
Vuitton. In conducting the research, both qualitative and quantitative
methods were required. Thus, a descriptive research design was used. A
survey was designed to measure the brand equity of Louis Vuitton. As
this brand audit is based on the brand knowledge model (Keller, 2003),
the survey aimed to measure the level of brand awareness and brand
image that exists amongst consumers of the Louis Vuitton (LV) brand.

Firstly, before the survey was created, qualitative research was

conducted to gather background information to increase the quality of
the questions asked in the survey. A variety of questions were asked to
help identify a range of brand associations, which aided in the crafting of
the questions in the survey. These questions were given to a non-random
sample group of friends and family. It was administered through emails
and face-to-face collection of the data.

Secondly, a quantitative survey measuring brand knowledge was crafted.

This again was given to a non-random sample group of friends and
family. The population of this survey can be concluded as anyone living in
Mumbai who has heard of the brand LV. Initial demographic questions
were asked to gain an understanding of the respondents being surveyed.

The series of questions surrounding brand awareness were broken up

into questions based on depth and breadth of LV. Under the depth of
awareness, recognition and recall were measured. An aided recall
question surrounding luxury leather bags was asked. An image of an LV
bag was presented to test brand recognition. Under breadth,
consumption and purchasing situations were also tested. Results from all
these questions were then tallied.

The series of questions surrounding brand image were broken up into

three sections; strength, favorability and uniqueness of LV. The questions
asked respondents to tick one answer from the given options. One
essentially meant The attributes chosen were expensiveness, quality,
exclusiveness, fashionable, used by woman. These were based on the
findings of the initial qualitative studies. Based on the questions the
consumer behavior was found out which has been mentioned below in
detail with the help of pie/chart diagrams.

The Brand exploratory concentrated on uncovering consumer

perceptions of LV.

The depth of awareness was seen as very high. When presented with the
picture of the LV bag every single participant in the survey recognized the
brand. Also with aided recall pertaining to luxury leather bags almost all
thought of LV. It has been shown that the LV products are selected with
much planning in people's minds, thus recall becomes a much more
important factor than recognition and the marketing mix designed in the
future should reflect this.

The breadth of awareness was seen as very high as when placed in

consumption and purchasing situations through the survey LV was
mentioned more than any other brand. This strength of awareness of LV
was to be expected as it is one of the most well known apparel brands.
Consumers awareness of the brand fell under the association of luxury
leather bags and luggage. This seems a rather limited awareness level of
the range of products LV has to offer. Consumers appeared to be more
aware of LV than any other luxury bag brand; this can be seen as due to
ideal positioning by the company. The overall result is that LV has built up
strong brand equity in terms of brand awareness.

Similarly, brand image of LV is quite strong, unique and favorable. It is

known that a positive brand image is created by a marketing mix which
links strong, favorable and unique associations of the brand to
consumers' memories.

Regarding strength, the more deeply a person thinks about product

information and relates it to existing brand knowledge, the stronger the
relating brand associations. The brand associations that consumers felt
the most strongly towards were clearly expensive, quality, exclusivity and
fashionable. All this attributes are inexplicably linked to each other, thus
it is understandable that consumers felt strongly towards them all. These
strong brand associations are intentional by LV and thus, this knowledge
of the brand is ultimately building their strong brand equity.

A brand must have a unique selling position to have a sustainable

competitive advantage against other similar brands. It appears that the
shared associations between the competing luxury leather bags market
are that of expensiveness, quality and that they are used by women.
Thus this would be their point of parity. LV's unique competitive
advantage comes from its tendency to be exclusive and fashionable. Thus
this would be their point of difference. These positive attributes are an
ideal point of differentiation, and further emphasize the strength of LV's
brand equity.

Advertising/Marketing:

A. Do not advertise on TV and newspapers.

B. They promote the brand through local events to reach a wider
audience.
C. The company, made the opening of their Mumbai store coincide with
the 150-year celebrations of the brand Louis Vuitton. The Chairman and
CEO
of Louis Vuitton, Yves Carcelle, came down from France specially to host
this event, which was a tremendous success.
D. They have unique business strategy where in they do not believe in
hiring
any one person to represent the brand. LV treats each client as its
brand ambassador.
E. Moreover, they are registered on various search engines and have
their
own website
Result of survey
Demographics:

Age Gender

17% 13%

18-24 40%
Male
70% 25-40 60%
Female
41-55
 Income bracket (Monthly)

10%
13%
25,000 - 35,000
35,000 - 65,000
77%
65,000 - 100 ,000

The survey taken reflects a majority of respondents between ages 25 - 40

years old. Also, the survey had a 6:4 ratio of female to male respondents,
which were spread out quite evenly between the Rs. 65,000 to Rs.
1,00,000 (per month) income brackets.

Brand Awareness:
 Brand Recall
14 13
12
12
10
8
6
Brand Recall
4 3
2
2
0

When posed with the aided recall question of brands associated with
expensive luxury leather bags, 13 respondent preferred Louis Vuitton
followed by 12 respondent saying Gucci, 2 and 3 respondents
respectively for Roberto Cavalli and Prada.

All respondents recognized the Louis Vuitton bag in the image presented
to them.
 Pre-purchase planning
0
4
No planning
Some Planning
26 Most Planning

26 out of 30 respondents said that most of the planning takes place

before the purchase of the Louis Vuitton bag. However, the remaining 4
respondent said that some planning is required.

Consumption of the
product
15
12 12

10
Consumption of
5 3 3 the product

0
Louis Roberto Gucci Prada
Vuitton Cavalli
When faced with the consumption situation posed in Question 8, 12
people chosed LV and another set of 12 people chose Gucci as a bag that
they would take out for social gathering. 3 respondents for RC and 3
respondents respectively voted for Prada.

Brand Image:

Brand Association

3 1
Expensive & Quality
4 Exclusiveness
Fashionable
22 Used by Women

Several factors were examined based on their strength of association

with Louis Vuitton. 22 out of 30 Respondents selected expensive and
quality as the strongest association with Louis Vuitton, the remaining
respondent feel that it’s all about exclusiveness, fashion, used by women.

Brand Uniquness
0
0
Expensive & Quality
3
Exclusiveness
27 Fashionable
Used by women
The same factors were tested for uniqueness with respect to Louis
Vuitton. 27 respondent out of 30 said that the uniqueness factor of the
brand is its exclusiveness, the remaining 3 respondent said that its
fashionable.

Influence for buying

5 4
Advertising
Brand image
21
Family & Friends

Influence for buying

5 4
Advertising
Brand image
21
Family & Friends

21
respondent out of 30 said that the factors responsible for their purchase
is the Brand Image followed by family and friends and then advertising.
Therefore, we can say that it’s a Brand name that sells.
 Motivation for Buying
9
Attention
18 3 Interest
Desire

When respondent were asked the motivation behind buying the Louis
Vuitton product most of them said that it is the desire to buy LV followed
by attention and interest.

Frequency of Purchase
3
7 12 months

20 6 months
2 months

Moreover, when respondent were asked that when is it that they would
purchase a LV, 20 said 12 months down the line, 6 said 7 months down
the line and 2 said within 3 months. This shows that one does not
purchase the LV brand very frequently, the reason being its price
(Expensive).

Conclusion

Louis Vuitton has high amounts of brand knowledge due to the strength
of favorable and unique associations in its brand awareness and image
components. Moreover, LV entered India early and therefore, enjoys the
first mover advantage. Thus it can be concluded that it is a very equitable
brand. Work needs to be done however to increase the awareness
among the masses also, because they are the customers of tomorrow.
Also, more assortment and variety of products should be brought in India
instead of restricting more towards bags.

The survey was done using the following questionnaire:

Q1.Which of the following age categories do you currently fall under?

About: (Demographic)

A. 18 - 24
B. 25 - 40
C. 41 - 55

Q2.Please select your gender

About: (Demographic)
A. Male
B. Female

Q3. Approximately which of the following monthly income categories do

you fall?
About: (Demographic)

A. INR 25,000 – 35,000

B. INR 35,000 – 65,000
C. INR 65,000 – 1,00,000

Q4. When you think of expensive luxury products (leather bags), which
brands come to mind first?
About: (Brand Recall)

A. LV
B. Roberto cavalla
C. Gucci
D. Prada

Q5. Please take a look at the picture below and answer the following
question:
About: (Brand Recall/Recognition)

Can you recognize which brand does the bag belong to?
A. Yes. It's _________________________.
B. No.

Q6. When purchasing a Louis Vuitton leather bag, how much planning
goes into it beforehand?
About: (Knowledge about the brand/ Recognition)

A. No planning
B. Some Planning
C. Most Planning

Q7. If you were attending a social gathering, what brand of luxury leather
bags would you bring along?
About: (Consumption situation)

A. LV
B. Roberto cavalla
C. Gucci
D. Prada

Q8. To what extent do you think that the following product

characteristics are descriptive of Louis Vuitton leather bags?
About: (Brand Association)

A. Expensive
B. Quality
C. Exclusiveness
D. Fashionable
E. Used by women
Q9. How unique are Louis Vuitton bags in terms of the following product
characteristics?
About: (Brand Uniqueness)

A. Expensive
B. Quality
C. Exclusiveness
D. Fashionable
E. Used by women

Q10. Which are the following factors that influence you in buying Louis
Vuitton?
About: (What influences you in buying LV)

A. Advertising
B. Brand Image
C. Family and Friends

Q11. What motivates you to buy the Brand Louis Vuitton?

About: (Why one would like to buy LV)

A. Attention
B. Interest
C. Desire

Q12. Indicate likeliness towards buying the Louis Vuitton brand in the
future?
About: (Frequency of purchase)

A. 12 months
B. 6 months
C. 2 months
References

Keller, K (2003), Strategic Brand Management: Building, Measuring, and

Managing Brand Equity,

Louis Vuitton Catalogue, from http://www.louisvuitton.com