A critical appraisal of the digital marketing strategies of Louis Vuitton (LV) by applying core concepts, methods and techniques to solve complex issues, while making comparisons to Burberry.
An Overview of LV
Founded in 1854, LV captured the essence of a treasure chest, leveraging it for its travel trunks by revolutionising the locks (Louis Vuitton, 2021). The brand is now the thirteenth best global brand, leading the luxury fashion market with a value of $37 million (Interbrand, 2021). It has established its presence in the new era of digital marketing with the launch of a non-fungible token (NFT) for Louis the Game (McDowell, 2021). Other strategies it implements are discussed further in the report.
Digital Platforms
LV has an extensive digital presence ranging across websites, social media and apps. Each platform is a touchpoint with a different objective that influences customers’ path to purchase (Chaffey & Ellis-Chadwick, 2016). Online information sources, such as, customer reviews, search results and ratings, allow consumers to expand their considerations of purchasing products, known as the Zero Moment of Truth (ZMOT) (Lecinski, 2011). This implies that a high digital presence positively influences the frequency of touchpoints with consumers in the ZMOT stage, thus increasing consumers’ consideration of a brand’s products. In other words, the higher the digital presence, the more the consumer will consider buying from the brand, therefore, highlighting the significance of LV’s digital presence.
Website
Using the domain, uk.louisvuitton.com/eng-gb, with this extension, specifically targets the United Kingdom (UK). The site loads in 1.08 seconds (Solarwinds Pingdom, 2022), whereas Burberry’s is 1.36 seconds (Solarwinds Pingdom, 2022). Low load speed reflects high website performance, positively impacting user experience and satisfaction (Bartuskova et al., 2016). This occurs because users are unwilling to wait for pages to load (Palmer, 2002), creating a negative experience. Google recommends for a page to become interactive within 2 seconds (Google, 2010) as it prevents users leaving the page, impacting conversions and sales (HubSpot, 2021). This suggests that LV’s website performs well as it loads within the recommended time and faster than competition. Google does, however, state that 30 seconds is optimal (Google, 2010) implying that LV’s page should load faster to be more efficient.
Website Design
As an ecommerce site, LV’s objective is to drive sales and customer satisfaction (Ritonummi & Nilninen, 2021). Ecommerce site design influences perceived risk and purchase intention (Ganguly et al., 2010), hence why LV’s website should be optimised for this to generate sales. Bevan (1999) argues also that websites should be designed to meet the needs of the user, known as quality in use, and proposes a framework that categorises this from the perspective of the user as functionality, reliability, usability, efficiency, maintainability and portability. It has, however, been found that 60% of site defects result from usability mistakes (Vinter, Poulsen, & Lauesen, 1996), therefore, usability is focused on to evaluate the design of LV’s website below.
Efficient and effective navigation of a website, defined as usability, built into its design enables users to easily accomplish their tasks, driving customer satisfaction (Chaffey & Ellis-Chadwick, 2016). Quality in use is measured by the level of excellence and can validate to what extent a site meets the user’s needs (Bevan, 1999). By implementing the Website Usability Evaluation Tool (WEBUSE), LV’s site usability can be assessed through content, organisation and readability, navigation and links, user interface design, performance and effectiveness (Chiew & Salim, 2003). As Figure 1 depicts, LV’s content is clearly organised using a site menu that provides efficient navigation to its products, campaigns and blog. The option to search and view the user’s wish list, members area and basket are featured in the top banner, enabling users to perform common tasks efficiently. This ties in with user interface design as LV anticipates needs on the site and provides easy access to facilitate that. The site also allows smooth navigation down the homepage displaying an array of images and videos, linking to other content. As section 1.2.1. explains, the website performs well with a good load speed. These factors influence the degree to which users complete their tasks on the site (Bevan, 1999) and based on the success of these it may be concluded that the design of LV’s website has high usability.
Zhang et al. (2009), however, suggest that design must extend beyond usability and into aesthetic features, especially for luxury brands. As the first webpage users view, a homepage’s aesthetic design effects a site’s first impression and alters users’ subsequent behaviours (Liu et al., 2016). LV’s site maintains the customer-based brand equity (CBE) associated with being a luxury brand by adhering to the aesthetic design dimensions; formality and appeal (Shen, Vel, & Khalifa, 2016), both influencing purchase behaviours (Chang, Chih, Liou, & Hwang, 2014). Shen, Vel & Khalifa (2016) define aesthetic formality as clear, simple and organised website design and aesthetic appeal as an impressive visual design. As the image above demonstrates, LV’s site has aesthetic formality, positively influencing aesthetic appeal because design must have formality before appeal (Liu et al., 2016). The website opens with a full-page box filled with varying campaign images or videos, making an initial impact on the user, which may be argued as impressive visual design. This layout follows the same format down the page, maintaining the aesthetic appeal. Futura is the typography used consistently throughout the site and varies between capital and lower-case letters subject to whether text is headings or body. The overall feel of the website is clean and minimal, which could, however, be argued as not impressive visual design. Nonetheless, this is a subjective element of website design. Impressive aesthetic elements may also not be necessary for luxury, lending themselves to fun and playful brands. The design, therefore, stimulates a strong sense of luxury as it considers both aesthetic design dimensions.
Using web analytics allows tracking of visitors, traffic generated from marketing actions and measurement of financial outcomes to better understand what content is most successful in attracting potential customers (Järvinen & Karjaluoto, 2015). SimilarWeb is used to analyse LV’s website and make comparisons with Burberry, shown in Table 1. LV has 3.6 million total visits with 21% desktop and 79% mobile; however, this is a total 13.17% decline from the previous month. Whereas Burberry’s total visits is lower at 1.6 million but has a smaller decline of 9.28%, suggesting LV’s visits are decreasing at a faster rate than Burberry’s. Organic search makes up 46% of LV’s traffic, 18% from paid search, 2% from social media platforms and 2% from display advertising. Contrastingly, Burberry has slightly lower organic search traffic (41%), however, higher paid search (26%), social media (3%) and display advertising (4%). This illustrates that although LV has better organic traffic, Burberry more successfully generates traffic from the remaining sources. Nevertheless, organic traffic is unpaid and vital for influencing user engagement (Sakas & Reklitis, 2021), potentially suggesting that organic is more important than other sources of traffic, which implies that LV is more successful here than Burberry. Furthermore, LV’s average visit duration is nearly a minute longer than Burberry despite it having a higher bounce rate (48.69%). This suggests that users are spending longer on LV’s website but are viewing then leaving the site more than Burberry’s. A low bounce rate indicates to Google that people value the content on the website, potentially resulting in a higher ranking on a search-engine results page (SERP) (Zantal-Wiener, 2021).
Search-Engine Optimisation (SEO) Analysis
Implementing on-page and off-page strategies by adjusting website content and design elements, known as SEO, can improve a site’s SERP ranking, potentially attracting more people to the website (Ledford, 2015) and improving visitor satisfaction (Berman & Katona, 2013). SEO is vital for brands to utilise as 73% of searchers do not go beyond the first SERP (Jansen & Spink, 2006). Organic search and search ads are forms of SEO that can be implemented as part of search strategy (Khraim, 2015), and are discussed below.
Organic search is unpaid and generated by domain authority, relevance and backlinks (Riserbato, 2020). For the search term ‘LV’, the brand ranks first (Figure 2), suggesting the site is organically optimised. Bots crawl webpages, take note of the content, decide its relevance (by indexing it based on keywords) and rank it based on its SEO authority (Chaffey & Ellis-Chadwick, 2016). Authority can be built through backlinks, directly impacting ranking strength (Oetting, 2021). LV’s authority score is 73 with 7.8 million backlinks (Semrush, 2022), whereas Burberry’s authority score is 72 with only 105,000 backlinks (Semrush, 2022). This may be because the quality of Burberry’s backlinks are higher than LV’s causing similarity in authority, which implies that if LV improved the quality of its backlinks it could increase its authority. Furthermore, 11% of LV’s traffic comes from backlinks (referral traffic), dominated by magazine sites, such as, GQ Magazine, Hypebeast and Harper’s Bazaar (SimilarWeb, 2022). These backlinks lead Google’s algorithm to increase the importance of LV’s site (Chaffey & Ellis-Chadwick, 2016).
Search ads appear first on the SERP above organic results, as Figure 2 exemplifies. Figure 2 shows LV utilising search ads, allowing the brand to anticipate potential customers’ needs, wants and desires and present highly contextual ads to them (Perricone, 2021). The headline, display uniform resource locator (URL) and descriptions are the core components of a paid search ad (Figure 2) (Google, 2022) but the organisation of these can vary subject to the device they are viewed on (Appendix 1). Search ads are a form of native advertising which are designed to be indigenous on SERPs (Perricone, 2021). LV also has utilised ad extensions, such as call buttons, location and links, which are used to maximise ad performance by giving searchers another reason to click on a website and increasing the click-through rate (CTR) (Google, 2022). Pay-per-click (PPC) ads appear amongst these sponsored listings and are when companies bid on keywords relevant to a target market. When that word is searched the ad will show, however, the company only pays Google, when a searcher clicks through to the website (Chaffey & Ellis-Chadwick, 2016). Despite this, when searching ‘luxury travel bag’ (LV’s top product), LV does not appear on the SERP, but its competition does, meaning that LV is losing out on potential customers in need of its products.
Keywords
Depending on the similarity of the words or phrases that people search, LV’s Google ad could potentially show on the SERP, therefore, it is crucial that relevant and high-quality keywords are used (Google, 2022). Match types, exact, phrase and broad match, can be added to keywords to control what searches the ad appears in (Du et al., 2017). Bidding on certain keywords can also influence where the ad shows in SERPs (Gelb, 2020). For the domain uk.louisvuitton.com/eng-gb, LV bids on 6,644 keywords thus when one is searched for, its ad appears in one of its top 22 paid results (SpyFu, 2022). Non-branded keywords extend the reach of the brand to unfamiliar audiences, whereas branded keywords can fight competitor’s ads as competitors can bid on LV’s branded keywords (Gelb, 2020). Brands bidding on their own branded keywords is, however, criticised as unnecessary spending because takes the traffic away from organic rankings (Lyytikkä, Salminen & Jansen, n.d.). Contrastingly, it is argued that doing this risks losing qualified traffic to competition(Gelb, 2020). Hence why bidding on both may be advisable. LV appears to focus on branded keywords with these being its top 5 paid keywords (see Appendix 2) and ‘louis’ costing $1.24 per click (SpyFu, 2022).
Social Media Marketing (SMM)
Social media marketing is a fundamental element of digital marketing for communicating with customers (Chaffey & Ellis-Chadwick, 2016). SMM involves two-way communications between brands and customers where information can be exchanged online, particularly with young audiences (Kim & Ko, 2012). Exclusivity is a key element of luxury brands and as social media is about reaching a vast number of consumers, it potentially could reduce this exclusivity (Vinerean & Opreana, 2019). Nonetheless, luxury fashion brands can no longer depend on brand assets for customer retention, so they must focus on adding customer value (Kim & Ko, 2012). Value can be added through establishing and maintaining customer relationships (Godson, 2009), which can be reinforced by social media (Ibrahim & Alijarah, 2021). This is also increasingly becoming more important for luxury brands, helping them to generate consumer engagement (Vinerean & Opreana, 2019). Relationship-based interactions with customers online drives brand awareness, engagement and word of mouth (WOM) which can be used to measure social media effectiveness by organising social metrics in accordance with applications and objectives (Table 2) (Hoffman & Fodor, 2010).
Regular posting, encouragement of branded hashtags, utilising hashtag strategies and encouraging electronic word of mouth (eWOM) influence brand awareness (Sjöberg, 2017). By looking at LV’s Instagram, Facebook, Twitter, LinkedIn and TikTok, the brand posts multiple times a day. It can also be seen that it uses branded hashtags, however, there is limited variation of the type and no encouragement of users to use them or eWOM, as Appendix 3 shows. Despite this, Instagram recommends using a maximin of 3 to 5 hashtags (Instagram, 2021), and LV’s hashtag strategy remains within this. Furthermore, customer engagement increases the willingness of customers to promote the brand through liking, commenting and sharing content which is a precondition for positive eWOM and engaged users form communities (Sjöberg, 2017).
LV implements all areas of the Social Media Matrix (Figure 4), demonstrating that the brand has extensive social media coverage which potentially implies it is able to reach a significant number of consumers. Kaplan and Haenlein (2010), however, argue that due to being active on social media is vital for success, it is not possible for brands to be on all platforms. This suggests that the brand may spread their presence too thinly across the platforms, thus a few should be concentrated on. LV, however, is a global brand, suggesting that it will have the means to sufficiently present across all the platforms. It is also argued that consumer segments favour different platforms (Scott, 2020). Generation X, for example, prefer Facebook whereas Generation Z prefer YouTube (see Appendix 4) (Mintel, 2021). Nonetheless, 23% of Brits use 4 or more social media platforms (Mintel, 2021), which indicates that consumers split their attention across social media sites. It is, therefore, important for LV to be active where its customers are present (Tiago & Veríssimo, 2014).
Regarding Facebook, in the Relationship quadrant in Figure 4, to add value for both parties, Zhu and Chen (2015) recommend that brands create opportunities for customer interactions in order to be successful on social media. Burberry, for example, encourages co-creation and sharing of content through Art of the Trench where consumers post their trench coat stories (Phan, Thomas, & Heine, 2011). This utilises Festinger and Carlsmith’s (1959) Forced Compliance Paradigm, where it is theorised that if someone is influenced into doing something that they would not normally do, it is likely that their opinion will change to align with this action. For instance, encouraging consumers to engage with content and competitions may improve their opinion towards a brand. LV does not appear to be conducting this across any of its platforms (see Appendix 3). Nonetheless, users are engaging with the brand’s content and a recent Facebook post exemplifies by receiving 3,800 likes, 57 comments and 207 shares (Appendix 3) (Facebook, 2022). LV’s engagement on comments, however, is lacking in comparison to likes. Despite this, a Burberry’s engagement on Facebook appears to be lower as a post received 352 likes, 10 comments and 35 shares (Facebook, 2022).
Zhu and Chen (2015) position Instagram in the Creative Outlet quadrant, however, this be could critiqued as Instagram messages are both broadcasted and customised (direct messaging) and is profile and content-based, meaning it does not fit into one quadrant. This is also the same for TikTok and Twitter.
The visual essence of Instagram compliments fashion brands with its various formats, such as, reels, images, stories and grid layout (Vinerean & Opreana, 2019). Additionally, Tennille Kopiasz, Senior Vice President of Marketing at Parfums Christian Dior stated that, “the best way for luxury brands to inspire consumers has always been through storytelling. As Instagram is a visual storytelling platform, the link is a natural fit” (Facebook Inc, 2017). Luxury brands should present high-quality visual content (Pentina, Guilloux, & Micu, 2018) and implement ephemeral content (content that lasts for 24 hours) to provide a sense of exclusivity on Instagram (Lim, Childs, Cuevas, & Lyu, 2021). Figure 4 demonstrates LV implementing this by telling a story of a gown’s manufacturing process using high-quality images posted on Instagram stories, which is ephemeral content. Furthermore, in 2017, LV used ads in stories for the first time in the luxury fashion market and received 28% uplift in ad recall (Facebook Inc, 2017), highlighting the influence of this content type.
LV’s grid layout also consists of high-quality visual content; however, it could be argued that there is nothing specific that distinguishes it compared to Burberry, both emitting similar aesthetics (Figure 5). With the increased competition for consumer attention on Instagram (Sjöberg, 2017) and consumers using Instagram to remain up to date with trends rather than scrolling on apps and website (Diafarova & Bowes, 2021), it would be logical for LV to differentiate in terms of its grid layout. Additionally, Burberry incorporates reels into its grid, but LV does not.
Augmented reality (AR) filters are features on social media platforms which alter the appearance of reality, such as the surrounding environment or users’ physical features (Javornik, et al., 2022). LV and Burberry both design AR filters as part of their Instagram strategy (Appendix 6). These filters increase aesthetic quality, perceived originality and interactivity, driving brand engagement (Flavián, Ibáñez-Sánchez, & Orús, 2021). This also induces eWOM as users posts images and videos with AR filters on Instagram stories, thus providing another customer touchpoint with the brand, influencing brand awareness. Additionally, LV and Burberry produce AR filters for Snapchat (see Appendix 6), presenting another opportunity for brand-consumer interactions.
Brand communities also occur on Instagram, as Table 4 shows, and are a collective of individuals who admire a particular brand (Muniz & O'Guinn, 2001). Instagram users connect with other users on the platform as fans of brands through dedicated fan pages (De Vries, Gensler, & Leeflang, 2012), for example the ones highlighted in Table 4. These communities can encourage customer engagement for LV’s image and leverage brand loyalty (Greve, 2014). The LV fan pages, however, are unofficial where the brand cannot control the content of the page and if this is negative, it is potentially destructive to LV. Nonetheless, the fan pages in Table 4 paint LV in a positive light, encouraging brand loyalty. Furthermore, these pages are extensive compared to Burberry’s, suggesting LV’s brand loyalty may be higher.
TikTok
Mobile video consumption is increasing (Cisco, 2017) and “is the ultimate medium for luxury, providing more emotive and expressive ways” that showcase a brand (Facebook Inc, 2017). Brands on TikTok can provide engaging experiences to bring entertainment and exciting elements into shopping (TikTok, 2022). Ads like this can positively impact consumer behaviour (Araujo, et al., 2022) as well as TikTok’s honest and real nature being factors (Ngangom, 2020). Furthermore, TikTok is growing in popularity (McGrath, 2019). This suggests that TikTok is a key place for LV to establish a presence. LV has more brand awareness and engagement than Burberry on TikTok (Table 2). Despite this, as shown in Figure 6, Burberry’s content is more varied, ranging from fashion shows to baking (Burberry, 2022), whereas LV’s content is focused on showcasing products (Louis Vuitton, 2022). LV, however, needs to be careful as consumers on TikTok can develop negative attitudes towards sponsored and ad content (Diafarova & Bowes, 2021). It is also important to note that user-generated content is more influential than brand-generated content because it is more trustworthy (Diafarova & Bowes, 2021). This could, therefore, suggest that LV should use influencers to implement user-generated content strategies on TikTok.
Email Marketing
Email marketing is a fundamental component for a business because it provides a unique set of benefits through direct targeting of specific consumers and is highly measureable (Hanna, Swain, & Smith, 2016). This is an outbound process of communication or push promotion that requires a consumer to give their email address to build up a data base (Chaffey & Ellis-Chadwick, 2016). LV consumers can subscribe via the newsletter page or through post-purchase (Louis Vuitton, 2022). The brand obeys UK regulations by providing the option to unsubscribe from the mailing list (Figure 7), however, its registered address and company number does not appear to be included on the email, suggesting that regulations are broken (Chaffey & Ellis-Chadwick, 2016).
Like social media, LV can add customer value through customised communications within email marketing (Godson, 2009). For example, the subject “Laura, Have You Seen the Latest?” and emails suggesting products that may interest the consumer. LV is drawing on consumer knowledge to tailor this email to the consumer, adding value for them and for the brand as it may encourage them to purchase (Godson, 2009). Furthermore, directing the subject at the consumer may increase the open rate. Despite this, it is only one example of customised communications amongst many emails to this customer, potentially implying that the email strategy is lacking here. Nonetheless, this example is from one customer and may not be generalisable to other customers.
The content varies from one-to-many and one-to-one promotion, (Chaffey & Ellis-Chadwick, 2016). The email presents a minimalistic layout, aligning with the website design, and limited text. The images are of high-quality; however, they are limited. The overall layout is not engaging or exciting potentially resulting in the consumer leaving the email. Nonetheless, it includes links to its social media and website.
Mobile Marketing
Multi-way communications and promotions using mobile technology relates to mobile marketing (Shankar & Balasubramanian, 2009). The technology’s portability enables devices to be carried around, allowing marketers to have constant access to the consumer (Hofacker et al., 2016). Mobile apps can, therefore, be considered as a means to create personalised customer experiences (Chaffey & Ellis-Chadwick, 2016). For luxury brands, however, developing apps is not essential as the returns generated are not great (Dauriz, Remy, & Sandri, 2014). Apps also require individual versions to be built for the Google, Android and Apple operating systems, implying that a mobile responsive site could be adequate (Chaffey & Ellis-Chadwick, 2016). Nonetheless, LV has developed various apps discussed below and in Appendix 7.
LV Pass
Available on the App Store and Google Play, LV Pass allows users to explore the catalogue, offering a personalised product selection (Louis Vuitton, 2022). Users can personalise their experience through creating a My LV account where products can be tagged as favourites, and settings altered for display preferences. The LV Finder (last image, Figure 8) allows users to search with product recognition to find suggested LV products. Through the magazine, users can explore LV’s news, events and launches. The visual design reflects that of the website and email, however, receives the same criticism where it lacks impressiveness and innovation. Nevertheless, it is highly functional with access to all features via the menu bar, achieving effectiveness and efficiency.
Louis the Game
Inspired by LV’s spirit of travel, the game invites the player to experience six virtual worlds through the character, Vivienne and to collect two hundred candles that unlock stories about the brand (Figure 10) (Louis the Game, 2022). Gamification is a mobile technology opportunity that boosts consumer engagement, enjoyment and retention, and impacts the consumer decision process (Hofacker, 2016). Consumers, however, need to be encouraged to download the app initially (McDowell, 2021). Nonetheless, consumers are increasingly spending more time gaming (Statista, 2021), suggesting that brands should establish a presence here to attract consumer’s attention (Clark, 2021). Coupled with the introduction of the metaverse, games help to build new brand communities, profiting from consumer’s desire for digital experiences (Mintel, 2021). Thirty NFTs can also be found within Louis the Game but not sold (Northman, 2021). It is vital for brands to communicate to the next generation of consumers and NFTs facilitate that (McDowell, 2021). They also drive consumer engagement and support paid media expenditures (Neff, 2021).