Case 4 Analysis

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LVMHCASE-1.pptx

Case #4

LVMH

(same questions in the new edition case, but different numbering. Case description is identical (i.e., the written information is the same):

Louis Vuitton

Dior

Moet

Hennessy

Fendi

Dom Perignon

Etc.

7

https://www.youtube.com/watch?v=sJZ472M1VwY

https://www.youtube.com/watch?v=NQlueM5ETYU

https://www.youtube.com/watch?v=kMswI4VCdMc

https://www.youtube.com/user/LOUISVUITTON

https://www.youtube.com/watch?v=agLN33rs7zgt

8

Exchange Rate Math

$8,000 – 10% ($800) =

7,200 USD / 1.1 = 6,545 €

VS.

$8,000 / 1.35 = 5,925 €

6545-5925 = 619 € more

Or 619 € x 1.1 = $680 more

Positioning Map for Hand Bags

Prestige

Price

Most

Bags

Louis

Vuitton

Coach

High

High

Low

Kors

Prada

Hermes

#6 Hermes Matte Crocodile Birkin Bag – $120,000. ...

#5 Urban Satchel Louis Vuitton Bag – $150,000. ...

#4 Lana Marks Cleopatra Bag – $250,000. ...

#3 Chanel “Diamond Forever” Handbag – $261,000. ...

#2 Hermes Birkin Bag by Ginza Tanaka – $1.9 million. ...

#1 Mouawad's 1001 Nights Diamond Purse – $3.8 million.

Most Expensive Handbags