Global Marketing of Wine

LVMH MOET HENNESSY LOUIS VUITTON: GLOBAL MARKETING OF WINE

This research reviews the activities of LVMH Moet Hennessy Louis Vuitton of France within the context of the global marketing of wine. The findings of this review are presented in discussions related to (1) background of the firm, (2) the firm's globalization history, (3) STEP analysis, and (4) the global strategy of the firm.

The family-owned cellars, as major players in the wine industry in France, have virtually disappeared (Echikson, 112). The surviving entities are conglomerates that articulate the language of brand management and asset utilization. Acutely attuned to the difference between mass and class, they have learned to walk the fine line between exclusivity and demand rationing. Among these conglomerates is the world's largest luxury group, LVMH Moet Hennessy Louis Vuitton of France, who, among other things, purvey Moet & Chandon champagne and Hennessy cognacs.

Since 1993, the firm's sales have been increasing at an average rate of 20 percent per year, while profits have been increasing at an annual rate of 36 percent per year (Echikson 112). LVMH gives each of the firm's brands almost complete freedom to pursue its own vision.

The LVMH conglomerate was capitalized at US$14 billion on the Paris bourse (Echikson 113). The firm has approximately 15,000 employees, and annual sales exceed US$5 billion (Osborne 12-25).

Richard Hennessy began making brandy in Cogn

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Category: Business - G