Chapter 2: Strategic Planning for Competitive Advantage

In accordance with having a competitive advantage, a company must know the importance of strategic planning. Strategic planning creates an organization in the goals of a company and what they have to center on. It must favor the long-run productivity and growth of a company. Marketing plans with a mission statement and a SWOT analysis as focus can present specific objectives and define what is need to reach them. Longchamp’s mission is ever changing.  From producing items with classic French sense, their mission is to become the top of fashion design. In addition, to keep their heritage of leather goods firm and promote  a company devoted to not only making themselves famous for their designs but for developing partnerships with notable designers and artists.

SWOT Analysis:

Strength- Longchamp presents a unique logo of an equestrian that is solely theirs. Their company privately handled company by family members. That makes keeping company information not accessible to public or competition. Longchamp’s constant renewal in style is a major advantage not only in handbags but also in scarfs, belts and many more accessories. Just recently in 2008, Longchamp celebrated its 60^th anniversary. In tribute to many successful years in the fashion house history, they presented the LM bag, which is crafted with ideal leather. The artist Jean- Luc Moerman molded the LM bag and tattooed the leather giving it that abstract feeling. “Le Pliage bag” became Longchamps trademark bag, which at least women want in every size due to its ideal shape and simplicity. On the website, you can design your own “Le Pliage Bag”.

Weakness- One weakness to the Longchamp Brand is the imitations that can hurt profiting. Since it is that accessible and the design is not exactly hard to copy it is easily reproduce in the black market. In addition, merchandise is not physically accessible everywhere, and very exclusive. There is also one flaw in the design. The bottom “Le Pliage Bag” should have leather on the bottom also for support.

Opportunities- In the 1950s, they seduced America, Japan, and Morocco. Today Longchamp’s continuous expansion in Europe and North America is becoming known between young women. Having the first dedicated store in Paris making it a tourist attraction for any fashion follower.

Threats- Longchamp competes with Chanel and Hermes.

Marketing Strategy/Competitive Advantage: 

 Longchamp has exceptionally well- made luxury handbags made with dedicated artisanship. Their handbags carry French style and flair that is not represented in an obnoxious way.  Not only symbolizing indulgence but being used as a representation of being hard-working women and schoolgirls. No matter what bag a woman has under her arm the one on top is the Longchamp. Longchamp has a major advantage it is not only for travel and work use, but also for casual wear that can polish your look a bit more. Their marketing strategy of making Kate Moss the face of the company adds a hip and sensual implication to it. Kate Moss being a fashion icon attracted a lot of attention. In 2005, Longchamp kept loyal to her and renewed her contract.

Marketing Mix:

Product- Made with hand carved leather sewed in bags in which the logo is imprinted by machine, Longchamp produces bags in six production sites in France in the Maine and Lare areas. Also outside of France, Eight workshops around the world with more than 1100 people work in each of their 236 shops.

Place (Distribution)- Longchamp is distribute in hundreds of countries around the world in approximately 1800 stores, owning boutiques and franchises, concessions in department stores, and online accessibility.  They manage 236 outlets through 18 distribution affiliates. From Longchamp, France accounts for around one third of turnover.

Promotion- Longchamp provides much collaboration with designers and artists letting them offer their creative ideas sometimes sold in limited editions. Thomas Heatherwick invented the zipper bag which is a long zipper built around the bag. Tracey Emin modified luggage. Kate Moss became the face of the brand in 2006 and started designing bags in 2010. Longchamp has also included a range of clothing and shoes since 2006. In spring 2012, the brand launched a new folding bag in all leather.

Price- Longchamp pricing is reasonable for the craftsmanship put into making it. They have sale when changing seasons.

Successful Strategic Planning:

 They avoid becoming predictable.  Longchamp pulls ahead with a close family management, a growing international empire, customers dedicated to fashion and loyalty, Kate Moss and many more making them legend, and with a creative mind and humble spirit.