Long Champ Case Analysis

Back Ground

 Jean Cassegrain turned a partisan tobacco shop into a shop that sold tobacco pipes with
finest exotic leather, in 1948.
 By the 1960’s, Longchamp products were sold in more than 100 countries through 1500
points of sale
 In 1972, Phillip took leadership in growing with business, Sophie Delafontaine & Olivier
Cassegrain later joined the business
 In 2000’s , Cassegrain bought in outside expertise to expend the business

Competitive Advantage

 Stylishness
 Timelessness
 Luxury
 Quality
 Discretion
 Whimsy
 Elegance
 Modernity

Longchamp Success Mantras

 Private family owned Company

 Decision making more internal not influenced by stake holders
 495 euro company much smaller than public competitor
 Healthy growth rate i.e. 13% on an average
 Continue to be innovative
 Le Piliage is their star product, can be redesigned with new colours
 Continue to maintain its status in both Affordable and Luxury markets
 Can create a new product line in between
Longchamp Swot Analysis

Strengths:-

 Family Operation
 Craftsmanship
 Timeless designs
 Available in 100 Countries
 Strong popularity of Le Pliage

Weaknesses:-

 Not so focused on marketing

 Customer service
 Brand image confusion ( High Luxury vs accessible luxury)
 No clear positioning strategy for current and future

Opportunities:-

 New product categories “Optimistic luxuries “

 E-Commerce
 International Expansion
 Product line Expansion
 Buyer price sensitivity

Threats:-

 Available in many location hence huge rent expanses

 Oversaturation of markets
 Cost impact of change
 Competitors price & product substitute

Suggestions:-

 Lessen the price gap through customization (Nylon & Fabric mix product designs)
 Use pattern & Prints that are offered in limited time only collection as customization option
 Introduce men’s product line effectively to access new markets
 New Market segment while improving brand awareness & Perception
 Restructure Longchamp showrooms to look more appealing and Luxurious
 Should focus on service quality along with product quality
 Test marketing in selective retail stores , hire salespeople with experience in men’s fashion
to assist male customers
 Proper setup for after sale service and customer experience