GROUP 4

A A S H I M A G A R G ( 1 9 P 0 0 1 )

AY U S H I G A R G ( 1 9 P 0 1 3 )

I S H I T A J A I N ( 1 9 P 0 2 1 )

S H R E YA N S H A G R AWA L ( 1 9 P 0 5 2 )

T A R U N L A H O T I ( 1 9 P 0 5 7 )

S I D D H A R T H M A R O O ( 2 0 E D H E C 0 2 )
CASE FACTS
 • In 1948, Jean Cassegrain ran a Parisian Tobacco shop
• Exotic leather used to cover tobacco pipes
• Brand name Longchamp was chosen, from the famous Parisian
racecourse
• Diversified the business – started to sell leather goods on
transatlantic steamships
• By the 1960s, Longchamp's products were being sold in over 100
countries – 1500 points of sales – fully owned or franchised
History
History

flagship stores
• In 1972 Philippe took in charge of the business, followed by Jean,
Sophie and Oliver
• The company achieved a CAGR of over 13% over the past 15
years
• In 2000 outside expertise was brought in:
• André Louit from Hermes as Chief Financial Officer, 
• Marie-Sabine Leclercq from Louis Vuitton as Head of Trade
Marketing and Communications, 
• Stéphane Beraud from Estée Lauder and Chanel as
International Director. 
 1970 Boutiques opened in Breakthrough
First women's handbag Hong Kong and Japan (Le Pliage)
Background

30,000-50,000 products
Background

Main workshop in Segré left Segré each day and

2700 employees
opened in 1959 produced 90 to 100
models each season

Most of the fabrication Expanded to clothing in

process artisanal – Upto 2006 and shoes in 2012
250 steps
 • Advertising focused on the 2006 • Alexa Chung hired as
Brand
Longchamp Brand

well-bred elegance of the brand spokesperson

equestrian world • Campaign was vibrant,
• Associating the company’s • Pushed femininity and alive, active, energetic,
fresh
The Longchamp

products with jockeys and fashion

stable boys • Advertising campaigns • The Longchamp woman
• Upscale, masculine brand featuring Kate Moss envisioned wasn’t easy to
• Transformed Longchamp’s characterize

1980s 2015
image
The
Longchamp’s
Longchamp’s Kate
Kate Moss
MossAdvertising
Advertising Campaigns
Campaigns
Longchamp’s
Longchamp’sAlexa
Alexa Chung
ChungAdvertising
Advertising Campaigns
Campaigns
 • Range of foldable, leather trimmed nylon
bags
• Simple, functional and easily recognizable
Pliage
Le Pliage

• 6 different sizes and 12 colours, constituted

12% of the SKUs
product: Le

• More affordable bags distributed alongside

Iconic product:

luxury leather bags

• These bags had a universal appeal
• Celebrated for utilitarian values as well as
non-utilitarian values
Longchamp’s Iconic

• Addressed existential values as well as non-

existential values
Longchamp’s

• Managed conservatively without advertising

support
• Drove high levels of foot traffic in stores
• Challenge to deliver a luxury brand level of
service
 in aa changing
Longchamp in
Repositioning Longchamp sector
luxury sector
changing luxury

Key fashion accessories

Handbags as purely that communicated
functional objects something about the
wearer
Repositioning

Girls introduced to luxury To appear younger,

brands through their women take their style
mothers from their daughters

Handbags were Today an important

provided by leather part of all fashion
goods makers product lines
 • Accessible luxury brands having lower prices and
widespread availability – new competition
• Offered middle class consumers a taste of luxury
luxury
Traditional luxury

• They enjoy a lot of success but for a limited time, while

traditional luxury brands have more brand equity
vs Traditional

• Longchamp not an accessible luxury brand

luxury vs

• More expensive and a higher cost structure

Accessible luxury

• Longchamp manufactured products themselves unlike

Accessible luxury brands
Accessible

• Quality of Longchamp was much better

• Perceived as an accessible luxury brand because of Le
Pliage
• Le Pliage held Longchamp back from joining the most
exclusive companies
 1. Le Pliage: Unleash or Restrain?

Why restrain? 
Le Pliage sells, starting from 55 euros, a wrong proxy for more premium products
Hence, allegedly Le Pliage is responsible for low sales of other range of products.
In most Asian countries, Le Pliage ~ Longchamp. Hence, difficult to upsell

So, Restricted selling. Prescribed Le Pliage sales as % of Longchamp sales

Dilemma
The Dilemma

What did Company do?

Launched Le Pliage (Cuir & Heritage) at higher price range replacing nylon with leather
The

Can you tell the most expensive of the 3?

 2. Brand extension?
Company was envisaging extension into clothing, shoes (exclusive stores)

Why?
Other premium brands had successfully done. 
To successfully establish itself as a fashion house.
Further extension into men's wear and fragrances, eye wear etc.
Dilemma
The Dilemma

Why restrain? 
Significant investment of time (new and more varieties) and money (marketing push like Paris Fashion
week)
The

Expansion may dilute heritage and optimistic appeal

Licensing and outsourcing dilutes control over quality
 DISTRIBUTION CHANNEL
Retailer Wholesaler

Profitability
Less High (Low Cost)
Dilemma
The Dilemma

Distribution
Strategy
Brand Image
The

High Brand Image No Brand Image Control

Maintenance

Outlet Footprint Selective

Expand Distribution
ANALYSIS
 Longchamp

Brand as Brand as a
System

Organisation Symbol
Identity System

• Artisanal fabrication process • Not a fashion addict or victim

• Leather craftsmanship • Real women living a real life
• Hand-made with high quality • Family business • Active, dynamic, self-confident • French Heritage brand
• Traditional Luxury • Focus on future long- • Inclusive and "Optimistic • Equestrian world – upscale
Brand Identity

term growth than now Luxury" • Kate Moss – Express loudly

• Evolution not revolution • Alexa Chung - "It Girl"
• Building slowly and moving in
the same direction
Brand as Brand as
Brand

• "Longchamp made"

Product Person
 Le Pliage

Brand as Brand as a
Organisation Symbol
System
Identity System

• Functional – Resilient, • French savoir faire

lightweight, easily foldable
• Quality, varied colors, fabrics
and patterns
• Accessible luxury
Brand Identity
• Modernity, style and elegance
• Accessibility and constant • Self-proclaimed addicts • Democratic
innovation • "It Bag"

• Fashion forward and moving • Utilitarian and non-utilitarian

• Used by both old and young, with the times
rich and modest

Brand as Brand as
Brand

Product Person
 Customer Objective (future)

• Luxury, premium
Valued
Considerations
Positioning Considerations

Reality Objective (
(present) future)

Owned
Brand Desired Company
Brand Positioning

Customer
• Quality,
Equity • Traditional
functionality, luxury
• Fashion-forward
design
Brand

• Craftsmanship
Claimed and fine
leatherworking

Company Reality (present)

 map
Positioning map Statement Piece

Luxurious
Positioning

Affordable

Le Pliage

Utility Piece
 Statement Piece
No common perception
for both of the products

Americans
map
Perceptual map
Perceptual

Affordable Luxurious
Le Pliage
Modest

France
Le Pliage 
Rich

Utility Piece
RECOMMENDATIONS
 Structure:

HOLDING COMPANY
1. Holding company which would hold the 2 brands separately
(similar to RB)
2. LongChamp disassociated from Le Pliage 
3. Different stores for both the brands based on location and
LONGCHAMP demographics of customers (based on volumes and values)
4. Leadership of Le Pliage to Delafotaine and Longchamp
to Cassegrain
RECOMMENDATION 11
RECOMMENDATION

LE PLIAGE
Pros:
1. No product cannibalisation
2. Individual identity for each product
3. Longchamp goes along with Cassegrain's positioning, while Le
Pliage will focus on Delafontaine's vision
4. Reduces the confused perception for the two products. 
5. Opens new market segment for the company

Cons:
1. Longchamp was known because of Le Pliage, people might not
buy it after
2. Huge upfront investment required for setting up of stores.
 Structure:
1. Reason for low salience is only a symptom.
     Cause: Lower brand equity in premium category. 
2. Hence, same structure with selective distribution
3. Push in marketing to symbolise premiumness, significant brand
building exercise
RECOMMENDATION 22
RECOMMENDATION

Value Unlock in new product lines
Pros:
1. Continued association to 'Le Pliage'; practically Longchamp
2. Currently no brand identity. It was both affordable & luxury
3. Will unlock sale of clothing, shoes with further extension to eye-
wear, fragrances and better margin for men collection
4. Golden goose is not killed

Cons:
1. Risky as brand building is uncertain and expensive
2. Historically, management is conservative in advertising
3. Loss of revenues in limiting supply of 'Le Pliage'
 RECOMMENDATIONS
OTHER RECOMMENDATIONS

Separate logo for Le Pliage to give it its own identity

Partnering with other supermodels (like Naomi Campbell) and replacing Alexa Chung to give Longchamp
a luxurious image

Expanding into product lines for men as per the changing demand for men accessories as fashion and also
since major fashion houses have these lines.
OTHER

No discount should be given on Longchamp products as it makes products more accessible and hence less
of a statement piece
THANK
YOU