How Hennessy and Marc Jacobs are Related
By: Linda Bo
As management students, many know that companies such as Unilever encompass a slew of brands, 400 to be exact. From Dove and Sunsilk to Ben & Jerry’s and Q-tips, people often do not realize how much they are under the wrath of these multinational companies. The same concept resonates in the company LVMH. This European multinational luxury goods conglomerate is a merge of the infamous French fashion house Louis Vuitton and the wine company Moët Hennessy. You may mistakenly think that world class brands such as Marc Jacobs, Givenchy, Dior and TAG Heuer are completely separate entities, but they are in fact all part of the LVMH collection of houses.
LVMH’s large amount of houses requires much effort to manage its brands. One of the ways it does so is through the use of social media marketing, mainly using Facebook to engage users. The digital director of LVMH, Thomas Romieu states,
“[given] the very strong engagement of people on the Internet generally speaking, it makes sense for brands to want to engage there.”
“brands have to increase the value of the relationship with their customers through this medium.”
LVMH uses the basic form of measurement by looking at how many fans the Facebook page has. As well, it spruces up the analytics through carefully examining fan engagement. The number of likes, comments and shares of a page are added together, then divided by the amount of posts in a predetermined time period, and finally divided by the number of fans. This number diminishes as the brand increases in popularity. For LVMH, fan engagement is of utter importance, and a sustained one at that. They understand the ways that consumers are using Facebook. Few sits down and reads a length article about something they may or may not be particularly interested in. Users are browsing Facebook for something quick when they are in between activities and need a quick break in suppression of boredom. This act has been coined the term “Internet snacking.” Extrapolating this knowledge, LVMH shows teasers and small pieces of information on brands pages, leading to longer advertisements such as a story or video.
In conjunction with its own analytics, LVMH uses Socialbakers, which provides social media management through data analytics. Socialbakers has the capabilities of analyzing over 100 Facebook pages and even the ones of competitors. The service helps LVMH to better manage social media content, providing tips regarding how to utilize different types of posts and getting the most out of functions of Facebook pages.
Romieu says, “If you think about the evolution of media, the world has evolved from a privileged few discussing their favorite brands in 19th-century coffee houses to a mass consumerization through broadcast media. Now, we’re back to the coffee house, to a situation where customers can interact with the brand.”