Company will sell their goods and services at global level to improve their customer base. For above stated aim, it is fundamental for them to examine cost, risk and in addition advantages to enter into foreign marketplace. As a result, they can introduce their products at international market in an adequate manner. Additionally, it will increase market share of firm and they will able to gain foreign currency (Bodie, Kane and Marcus, 2014). It helps them in improvisation of their revenues. By exporting items into other nation, government will enhance their economic growth. This will aid country to enhancement of their GDP. Present assignment is based on Louis Vuitton which is much famous brand and operating their business worldwide. They are producing variety of products for people, such as watches, accessories, bags, jewellery and many more.
Now, association wants to export their bags into China. Therefore, it is necessary for them to analyse market of that nation. For this, they need to evaluate requisite figures of China, for example: population, GDP, GDP per capita and along with median age. To formulate strategies and policies effectually, it is needed for manager to conduct SWOT investigation. It will help to find out opportunities which can be accept by firm because this will provide them growth and development. Apart from this, it is required for superior to evaluate business potential in export market. Organisation will opt another option for export of bags i.e. India, if they are not selling items in China. To accomplish needs of every individual, firm has to segment their market. Finally, an effective strategy need to be created to launch new item at marketplace. This report is going to highlight elements of marketing mix. To make produce more successful some market activities like, promotion, distribution etc. will be used by Louis Vuitton.
Export market means when products as well as services are sell out to other nations. With assistance of this, an organisation will develop their image at international level. This will aid them in improvisation of profits and in addition goodwill.
According to Malhotra, Sivakumar and Zhu, (2011) Export marketing comprises administration of those activities that are associated with marketing of items which are going to introduce in other country. This will assist association in expansion of market and along with, they can capture attention of numerous people. If organisation is doing their business at global level then, they need to follow rules and regulations which are created by government.
Louis Vuitton is a luxury retail enterprise which is founded in near 1855. They are doing their business in various segments, such as shoes, jewellery, watches, bags, books, accessories and so on (Schwens and Kabst, 2011). They are doing their business in approximately 45 nations with more than 450 outlets. Now, they want to enlarge their business in China by export bags over there. They will help them to improve their client base. Along with this, it aids them to increase range of their products and services. For above stated aim, they have to analyse market and situation of China. Henceforth, it is fundamental for them to examine essential figures which are stated as beneath:
(Source: Miranda, 2015)
Henceforth, it can be calculated by using formula which is mentioned as below:
GDP = C + I + G + (X – M)
As per research report, it has been found out that GDP of China is almost 11 trillion USD which is high as comparison to France (GDP = 2.45 trillion USD). Therefore, this will be easy for company to introduce their goods in China. As gross GDS is very strong; thus, purchasing power of people is high and they are maintaining their living standard effectually. Along with this, economic performance of nations is effective which help an enterprise to survive for long term at marketplace.
Gross domestic product / number of people in nation
With assistance of this, any country will compare their economic performance with other. If there is an increment in it then, there is enhancement in production of goods and services. This will states that there is rise in standard of living of individuals. According to research paper, GDP per capita of China is almost 8,120 USD which is less as compare to France i.e. 36,850 USD. Fundamental reason of this difference is population because populace of China is high according to France. Therefore, Louis Vuitton can easily export bags as this will aid to improve their market share.
Henceforth, it has been understood that, if firm wants to export their business in China then, it is essential for them to comprehend economic of that nation (Stiebale, 2011). As a result, they can easily provide their goods and services to people who are residing over there and help them to raise their standard of living (Maekelburger, Schwens and Kabst, 2012).
Instead of all this, it is required for Louis Vuitton to conduct SWOT analysis for their enterprise; therefore, they can formulate strategies for their business in an effective and efficient manner.
Strengths: This can be stated as below:
Weakness: These are stated as below:
Opportunities: By obtaining it, firm will easily enhance their profits as well as market share.
Threats: It will consist:
Louis Vuitton is a luxury brand which is famous for their quality goods and services. They are operating their business in more than 45 nations; therefore, customer base is high. Now, they are going to start exporting of merchandise into China; so that, it is mandatory for them to conduct research. This will assist firm to know about people and market of that country. There are various reason behind selection of China to export bags over there. There population is much high which aid enterprise to increase their market share (Dervis, De Melo and Robinson, 2015). Along with this, political stability of firm is much high as comparison to other country; thus, there is maximum circumstances of growth and success of company.
People of China is maintaining their living standard in an effective manner. It is required for manager of firm to determine purchasing power of persons who are residing in China. This will aid them to decide price of goods and services (Marsh, 2011). Rather than this, they have to examine their competitor's strategies which are following by them. It will help Louis Vuittion to take benefits from their contenders. Market of China is entirely differ from France in various aspects, such as size, population, GPD and so on. Organisation is going to export their items into China; therefore, they need to examine environment of that nation. By doing this, enterprise will adopt opportunities which are accessible for them at marketplace. This will assist them to improve their market share.
Before export, it is necessary for company to take license from government because without it they are not able to sell their merchandise across the world. They will provide training to their staff members; thus, they can easily accept responsibilities which are given to them by superiors. To maintain goodwill, Louis Vuitton can cater after sales services to buyers which assist in their retention.
Instead of this, it is needed for organisation to examine demand of their goods at market of China. This will assist to accomplish needs and wants of every segment of individuals (Jones, Coviello and Tang, 2011). By fulfil requirement of customers within limited period of time, firm will take benefits from their contenders. For above stated aim, there are many tools and techniques which can be utilized by firm, for example social sites, survey and so on. If company is providing qualitative items to people at a moderate price then, they can easily enhance demand of it. Rather than this, manager of Louis Vuitton will take pre orders of bags which they want to export into market of China and after that, they will start shipping.
Superior of firm will take assistance of game theory because it can help to determine preference of clients. It aids to found out that how much amount a clients can pay for any goods and services. Individuals of China want trendy products to accomplish their needs and wants and in addition keep up their living standard.
After conduct market analysis of China, if manager of Louis Vuitton wants to change it then, they will choose India to export their goods and services (Baek and Qian, 2011). There are various reasons behind it, which are stated as beneath:
Company is going to export their goods and services in China as population and GDP is high as compare to other nations. Organisation is expecting 50 million USD sales in China; so that, they can maintain their profits. This will aid them to survive at marketplace for longer period of time. As a result, they can increase goodwill of firm at global level. If sales are increasing then, this will be easy for them to expand their business in other places.
It is required for association to accomplish needs and wants of every kind of people; thus, they will fulfil their requirements within limited period of time (Goudarzi and Ramanarayanan, 2011). For above stated aim, they can classify market into various parts, such as behavioural, geographical, demographical and in addition Psychographical. Henceforth, manager of enterprise segment their market as per the basis of demography. According to this, they can divide marketplace as per age, gender, income, occupation and so on (Raff, Ryan and Stähler, 2012). There main target is those people who comes under the age of 25 to 40 years. Main reason for this, there spending power is high as comparison to individuals of other group. They want to purchase unique and attractive items which help them to maintain their standard in front of society. Louis Vuitton is manufacturing bags for women only as they always carry stylish bags with them. Organisation is producing unique design which aid them to attract people towards them.
It is more important for every organization to use effective strategy to launch the product in market which leads in getting positive response form customers. It is more important to informed market strategy because it directly assist in determining company vision, mission and all the business goals. It directly affect the entire business so that it is necessary to plan and develop effectively. Basically marketing strategy is an appropriate planning tool to successfully launch product in market (Ramamurti, 2012). In this company find a new market in which they easily expand their business and also launch their products to achieving favourable results which leads in enhancing the overall performance in new market in most effective manner. In this context, Louis Vuitton is a fashion and luxury retail company in French, which provide various products to their customers in order to get their better satisfaction. They operate their business in various countries and location in which they easily generate larger revenue in effective manner. In current time they wants to expand and well as introduce their bag services in China. Because the main aim of selected company is to generate more profits by offering their quality products in over the world. For successfully launch their bags Louis Vuitton use new market development strategy. But before expanding as well as launching products they have to effectively plan for identifying needs of the customers in market place. Better planning and implementation of growth helps in developing new market in which company launch their bags. It define various aspects which assist in evaluating the better results are as follows:
Along with this, effective marketing strategies helps in providing better direction in which company easily attaining their marketing goals and take competitive place. With the help of this firm set their product position a and also reach their target customers in which they easily offer their services in most effective manner. Furthermore it is also important for Louis Vuitton to identify their business goals before implementing the product in China which helps in setting all the marketing goals that attain by the company to enhance their growth level. In this new market development strategy is one of the effective for the company to launch their begs in China in order to generate more revenue by offering their target customers. Basically it is a growth strategy which determine the new market segment for launching the products.
By implementing this strategy Louis Vuitton focus on non- buying customers to expand their sales. In this new user or new uses helps in increasing the product demand so that company easily offer their services as per their taste and need (Luo, Huang and Wang, 2012). New users shows new geographic, demographic, new psycho graphic segments which leads in increasing the overall sale of the company. On the other hand new uses for the product is also an effective way to enhance the sale. By this Louis Vuitton easily take place in China market because the population of this country is high as compare to France so that they offer their services in this location to to improve their profitability by selling their their bags for customers. In their they also tries to produce quality services at affordable price which leads in attaining large number of customers. It directly aid in increasing brand image of the company at market place. Basically China market produce various products at cheap rates so that it is important for the Louis Vuitton company to introduce their bags with high quality and affordable price which easily helps in maintaining their sustainability of the profit at market place. In this context, it is also important for the company to use this strategy as a opportunities which helps in reach at their target (Mancini, Ranaldo and Wrampelmeyer, 2013). For executing market development strategy is more systematic manner than there are some appropriate consideration which help company to effectively launch their bags at China market which are as follows:
Along with this, new market development strategy is also include effective aspects in which company evaluate that how they grow their business in China. All these consideration are as follows:
On the other side, expanding the product line is also important for Louis Vuitton to maintain their competitive place in China market. Because number of companies offer their products in this country easily and also attract huge customers so that it is important for selected company to develop their products by offering better services to the users. For this they considered potential manufacturing, marketing and distribution to improve their product line (Petrou and Thanos, 2014). By this Louis Vuitton effectively distribute their services with affordable price which leads in enhancing the used of bags in China market and also attain higher profitability. After that Louis Vuitton also evaluate that their product meet new market needs. For this they define some consideration which helps in getting better customers satisfaction and also get success in launching products in China market. Which are as follows:
All these consideration aid in maintaining their competitive place which leads in evaluating better brand image at market place. All these helps in developing company products in market which invite more and more customers towards its products and services.
Along with this it is also significant for Louis Vuitton to create customers value by using marketing mix. It is an effective tool which helps in increasing consumers base within the company. Basically it is an fundamental model which is used by the company to increase customers awareness towards the products and services. With the help of this marketing tool firm easily capture market share form its rivals. It is a significant part of marketing plan which include various elements that directly aid in enhancing the overall performance of the company at market place (Hudson, 2013). Louis Vuitton also use this marketing tool to launch their products in China market in which they have to analysis trends and customers preference to set their product position successfully. By using this they easily invite more and more customers and also attain entire target in most effective manner. It help to company to take better marketing decision. It define appropriate combination of elements such as product, price, place and promotion. All these play significant role in launching the product in new market like China. All are as follows:
All these marketing mix elements helps in creating customers base within the company which helps in attaining higher profitability. By this Louis Vuitton easily capture larger market share at take strong place in China market.
Marketing is an effective activity of creating customers base within the organization. Basically it is a process of communicating and delivering values for the customers to get their satisfaction level. One of the main advantage of using marketing concept is to increase public awareness towards the products and company also. Every organization use marketing activities to sell and buy products and services (Bourguignon, Branson and De Melo, 2015). It consider advertising, delivering and selling goods to the consumers (Menkhoff and Schlumberger, 2013). The aim purpose of using this activities is to make the public aware about the company and its products which leads in increasing the overall profitability of the company in most effective manner. Louis Vuitton also include effective marketing activities to enhance selling activity of the company at China market. It is important for the company to effectively analysis the market trends of Chine before implementing to launching their products which leads in increasing the chances to getting better success. In this context there are some effective marketing activities which s used nu the Louis Vuitton to launch their products in China market to attain better growth and also develop their brand image. Which are as follows:
All these marketing activities helps in inviting large number of customers by launching their products in China market. These plays significant role in enhancing the brand image at market and also increase customers base in most effective manner.
From the above mentioned report is can be concluded that expanding the business is one of the biggest opportunity for the business to attain higher success at market place. In this company export their business products in one country to another for the purpose of activities better growth. For this analysis of export market is also important for the Louis Vuitton in which they consider all the economic figures such as population, GDP, GDP per head and Median age of China which helps in assessing the actual growth of the business at China market. In this context GDP per capita is less as compare to France due to their variation of the population. In this they easily expand their market and also launch products as per China customers. Due to high population Louis Vuitton get more opportunities to attain success and also develop their growth in this market. Basically company focus on demographic aspects to evaluate the potential demand of the products and services of consumers. Along with this, SWOT analysis of Louis Vuitton is also summarized in this reports which define various opportunities and strength to improve their business activities at new market and also enhance their product growth in most effective manner. Along with this report also evaluate the export market in which political stability is effective which helps in improving their overall performance level in target market. Furthermore firm is also select India country because the population is also high so that they easily launch their product in that country successfully. In the last phase of report, marketing pan is also play important role in which company use new market development strategy to launch quality products in China. In this marketing mix also helps in creating the customers value to attain their success. Louis Vuitton also include 5 marketing activities within their expanding business to launch successfully the product in China market which leads in generating more revenue in most effective manner.
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