Executive raise wholesale prices In an effort to prevent discount retailers from purchasing designer products for resale In mass-market outlets. Also, It could damage the perception that consumers have for the brand. Moreover, advertising budgets are Limited and television Is viewed s too expensive. And In Dalton, some In the Industry believe that TV’s status as a mass-marketing medium can undercut a luxury brands aura of exclusivity. 11-17. In March 2008, $8,000 equals to 51333 euros ($8,000/1. 50).
In November, tweed tit s $7,200 ($8,000 * 10offconverted into euEurot will be 5,760 euros (7,200/1. 25). Revenues of tweed suit sell in US are increase 427 euros even if the price in dollar is 10% off It happens because dollar had strengthened against the euEuro11-18. Louis VuButtonxecutives raised prices in 2008 and sales continued to increase. This say about the demand curve of the typical Louis VuButtonustomer that is inelastic, meaning consumers are willing to pay for it no matter what the cost is.
Luxury products are characterized because of their high skill creativity. Also, Luxury goods prices are based on perceived exclusivity and differentiation of the brands. Consumers have shown high confidence about luxury goods, and naturally many will want the best, which means luxury brands. 11-19. Coach’s brand positioning can be considered as affordable luxuries, while LVLBescribes itself as selling dreams. LVLBarkets are small, niche brands provides to the very rich. Coach’s price points are much lower.
Finally, while Coach has continued to sell leather-based products, LVLIVEas branched out to Include wines and spsplatselective retailing, perfume and cosmetics, watches and Jewelry In addition to Its branded leather goods. Case 4 International Marketing By RoReauthorizingase 11-2: LVLIVEotaled $28 billion in 2010. If there is one communication space that luxury goods brands have not yet aggressively pursued, it is television advertising. Because of this, prices in an effort to prevent discount retailers from purchasing designer products for resale in mass-market outlets.