Brand Problem Identification
Lack of Brand Image
However, the brand faces certain issues in terms of ethics that affect the brand image negatively. There is use of leather and skin of other animals for the purpose of crafting the bags. The luggage pieces and handbags of LV consist of elements that are hand stitched with the painstaking by worker and then are combined by process of merchandise for the increment of productivity.
In addition, the classic logo of LV that was used for the quick establishment of itself in emerging market platforms across the globe have ended up running the course. The handbags and other leather products of the brand are extremely ubiquitous in the current era that they are now being symbolized as accessible luxury brand instead of being symbolized as an exclusive luxury brand. However, the key issue is that LV does not initiate the sale as an affordable or accessible brand of luxury that are extremely expensive in comparison with other brands. More money for accessible luxury is not the imagery of brand that LV is willing to reflect. 44
Relevant Brand Theory to Analyse the Problem
Imagery is referred to as how well the brand is successful in meeting the needs of customers over a psychological and social level. The brand is expected of meeting these needs directly, from the own experiences of the customer with a specific product, or indirectly with word of mouth or target marketing. Louis Vuitton is a good example in this context as it has been making high quality fashion clothes, footwear and accessories. Considering the branding theory for luxury fashion, there appears to be an intra- business synergy of group in LV, and this synergy can be considered as extremely crucial in order to save the brand from the event of financial crisis to be expected in the years to come. LV is known to be facing cut-throat competition from several brands, and especially Chanel. The competition is evident in term of flagship store. As a significant example, as mentioned previously, LV in the city at George Street has made sales of approximately 80 million dollars on yearly basis, while the West Melbourne location of Chanel has reached sales of 20 million dollars on yearly basis. Even though there appears to be a favourable brand position, there is lurking of competitive pressures for LV. The growth of international retailers of luxury has ended up enhancing competition throughout the industry.
It was pointed out by Keller (1993) that the brand image is reflected by the perception of customers regarding a specific brand and this reflection is evident by their association with the brand. Therefore, the company can consider building its brand reputation and boosting its brand association by the creation of marketing approaches linking three key dimensions of association for increasing the recognition of brand among customers. These are uniqueness, favourability of association. There must be increasing linking with the current knowledge of brand and hence, the association of brand will turn out to be extremely strong. There must be increased consideration of sustainability by the reduction in leather products and looking for more sustainable products to attract the wealth eco- conscious customers as well.