Authors: DR. SHIVANI SAINI¹* AND DR. CHETAN G. K.²

Abstract

Marketing activities are crucial in communicating brand value to the target market. A luxury brand’s communications reflect its legacy and superiority, which can have a significant impact on a wider audience. The present research aims to quantify the stock market's response to the marketing communications of a luxury firm. The present research aims to quantify the stock market reactions to the marketing communications of a luxury firm. Beyond investor behaviour, these reactions are also indicative of how enterprise-level messaging reverberates across the interconnected ecosystem of stakeholders-ranging from consumers and shareholders to local communities and entrepreneurial actors aligned with the brand’s value chain. By adopting the event study methodology, this study tests the impact of the marketing communications of a world-renowned luxury firm LVMH on the stock market. The research has been undertaken with five years LVMH marketing events, stock index and CAC Index. The index data has been collected from BLOOMBERG Terminals. The findings of this study outline the impact of various marketing communications on stock prices on the event day, anticipation, adjustment, and total measurement window. This paper will offer insights to luxury brand managers who seek to amalgamate marketing and finance in a view to perform corporate branding as a future of modern marketing. Although the increased attention paid to branding strategies and stock performance, very little is reported to understand the stock market behaviour of luxury companies. Despite being a well-established research domain, stock market reaction remains an under-explored phenomenon in luxury brand marketing. This study might be the first to perform in a luxury brand category. By filling this gap, the research advances understanding of the dynamic interactions between brand messaging, market responses, and community engagement in a high-value, niche sector.

Keywords: Luxury, Event Study, Stock Price, Marketing, LVMH.

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