Long-champ Case Solution
Longchamp’ key brand Le Pilage was considered as one most iconic and successful brands in the whole world. The company’s management had been facing issues within its low priced nylon handbag and the management decided to shift the product towards a high proceed and luxurious leather good in order to increase its brand upmarket (Jill Avery, 2016).
The management had to make decisions about whether to focus on Le Pilage or to focus on other leather handbags. The other key concern included the pricing, merchandising, distribution and promotion of the sub-brand. Lastly, they key focus was to decide upon what Le Pilage had been contributing to the company’s brand equity and what it is detracting from equity.
The Longchamp Company had been renowned for its most its successful brands across the globe, especially the company’s Le Pilage product had been considered as a must have among the old and young customers. But the company’s management fear that the continuation of the same brand would be quite challenging as the industry’s patterns are continuously shifting with luxurious brands taking over the market.
The company had to decide about focusing on the other luxurious products or focusing on the Le Pilage product. Moreover, the company had to make key decisions regarding the marketing, promotion, merchandising and pricing of its product line, as the company had not been generating much profitability from its nylon handbag, and it was aimed to increasing its market towards the high priced and luxurious handbags.
1.Continuation of Le Pilage
The first option is to continue the Long champ’s focus on the company’s most famous nylon brand i.e. Le Pilage. It is because, despite being a low priced product, the product had remained most famous and a must among the customers because of its quality, craftsmanship expertise, innovation, design including patterns and colors, light weight structure, widespread acceptance by the customers and a large distribution network.
The product is widely accepted by the market and it is considered as a luxury in the market, so the brand has high customer loyalty. The brand has a high distribution and even its low priced the company can generate a higher profitability by selling the low priced products in larger volumes.
The industry’s patterns are shifting and the lifestyles are changes, which means that the customer would be impacted by the market preferences towards luxurious brands. The competitors are offering high priced products and if the company does not take action quickly, it might lose the market share………………………
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