marketing management - gucci

7/25/2019 Marketing Management - GUCCI

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Marketing Management

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Number of words : 3000


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Table of Contents

1. Introduction............................................................................................................................

2. An overview of GUCCI brand...............................................................................................

3. Marketing approach by GUCCI.............................................................................................

3.1 Market egmentation and targeting iue........................................................................

3.2 GUCCI! market poition.................................................................................................

3.3 GUCCI! marketing mi" and re#ated iue......................................................................

$. %uture deve#opment............................................................................................................

&. Conc#uion............................................................................................................................

'. (eference............................................................................................................................). *eb (eference....................................................................................................................

+. ,ib#iography.........................................................................................................................

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1. Introduction

An effective marketing trategy can be identified a the key to ucce in any

organiation. he proce of marketing can be identified a identifying anticipating and

atifying the cutomer reuirement profitab#y making the right product avai#ab#e for

the cutomer at the right time at the right p#ace for the right price. -o baica##y how an

organiation determine it marketing trategy wi## determine how far that company can

win the cutomer making them #oya# for the company! product. hi aignment wi##

pay particu#ar attention on the marketing approach of the much renowned #u"ury fahion

and #eather good brand GUCCI identifying the baic e#ement of it marketing trategy

and marketing mi". he iue evident in their marketing approach wi## be ana#y4ed indetai# identifying the uitab#e approache that wou#d reo#ve thoe prevai#ing iue. he

future deve#opment anticipated wi## be eva#uated under thi aignment identifying the

bet practice for GUCCI that wi## enab#e them to get c#oer to the conumer via their

product a we## a via their ervice.

2. An oeriew of !"CCI brand

A per the GUCCI *ebite5the wor#d of GUCCI 6271$8 the brand GUCCI wa

etab#ihed by Guccio Gucci in %#orence in 1921 in order to manufacture high end #eather

good and fahion item with c#aic and ditinguihed ty#e. :e a#ong with hi three

on e"panded the product they manufactured in to a wide range offering the cutomer

with a variety of fine #eather product and fahion item. GUCCI e"panded it operation

over many countrie and #ocation with it ucce in home market a one of the bet

#u"ury fahion brand. At preent GUCCI i having it operation in many market around

the wor#d whereby they operate their own high end retai# out#et and a we## e## itproduct via high end franchiee in different countrie. A per the GUCCI webite

6271$8 GUCCI offer a wide range of product inc#uding #eather hoe bag #uggage

wa##et be#t and a#o a wide variety of #u"ury c#othing kin care product watche and

;we##ery. *ith it touch of e"c#uivene and high ua#ity of the product GUCCI ha

bui#d it reputation a one of the mot ought after high end #u"ury fahion brand making

many high end cutomer #oya# toward it product. *ith it ucce in the high end

#u"ury fahion ector GUCCI ha now become the bigget e##ing Ita#ian brand and a per

Interbrand ,et G#oba# ,rand 627138 GUCCI ha been ab#e to maintain the poition of



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3+ indicating a brand va#ue of


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ua#ity product with a tough of e"c#uivene and #u"ury in order to repreent their

ocia# c#ae and tatu. he main iue in identifying uch a market egment to target

their product can be identified a the egment being too narrow with it definition of the

high income earning category. -o GUCCI had to further ubdivide it main target market

egment a men! product and fahion and again a women! product and fahion. here

GUCCI wa in a poition to e"act#y identify it target cutomer o that the product

cou#d be deigned and manufactured in order to meet the different reuirement of the

repective cutomer. he product they offer are categori4ed main#y under the above two

target egment where they deign and offer their product which are c#ear#y

ditinguihed between the above egment6GUCCI *ebite 271$8.

In it main market egment GUCCI! ucce depend upon the e"c#uivene and the

touch of #u"ury they maintain in it brand. In targeting it product to it target egment

GUCCI focue main#y upon the individua# who are in a matured age. hi i main#y

becaue from the beginning GUCCI ha been targeting the more aff#uent egment of the

cutomer and the individua# who fe## into that category were main#y the midd#e aged

individua#. A per =apferer 62713 p.22+8 today in the competitive buine environment

the trend ha now been hifted toward the youth category and the highet demand for the

#u"ury #eather product and fahion come from the young group of cutomer. -o theo#der trategy of targeting eem now outdate for GUCCI where they hou#d focu more

on deigning and manufacturing product which meet the demand and the need of the

dynamic youth category. GUCCI mut keep c#oe contact with it competitor trategie

and the changing cutomer trend in order to identify the changing reuirement if it

cutomer o that product can be manufactured with the touch of pretige e"c#uivene

and tatu which wi## attract the young egment of high end cutomer6GUCCI *ebite

271$8.



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Ima#e 2 $ !"CCI roducts

Source : % &tt':((www.#ucci.com(us(worldof#ucci(articles(#ucci$museum$icon$store$

and$icon$collection ,

3.2 !"CCI/s mar)et 'osition

In catering to a## it target market it i very much vita# for GUCCI to maintain it brand

image and market poitioning trategy in order to maintain it brand conitency. A per

*i##iam 62717 p.13+8 GUCCI fo##ow a differentiating poitioning trategy where it

focue on offering it cutomer a variety of high ua#ity and durab#e #u"ury #eather

product and c#othing with the touch of e"c#uivene pretige and tatu. It ua#ity of

the product over the year have poitioned it brand a a ua#ity brand in the mind of

the cutomer which ha #ead it to occupy the 3+th poition in the recent %orbe #it ofmot va#uab#e brand with a revenue of $.) bi##ion U- < and with a brand va#ue of 12.1

U- < bi##ion for the #at financia# year 27136%orbe #it of mot va#uab#e brand 27138.

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3.3 !"CCI/s mar)etin# mi and related issues

Ima#e 3 $ -ar)etin# mi

Source : % &tt':((officialandreascy.blo#s'ot.com(2013(0(download$free$business$

'ower'oint.&tml ,

According to (ichter 62712 p.)$8 marketing mi" can be identified a the different

component in the marketing approach of a company that enab#e it to cater to the

cutomer reuirement profitab#y. -o in getting c#oer to the cutomer it i very much

vita# for GUCCI to effective#y manage it marketing mi" which wi## determine it ucce

in the modern dynamic fahion indutry. he marketing mi" of GUCCI can be identified

a fo##ow.

roduct -i

A per -trydom 6277& p.1178 the product mi" of an organiation can be identified a the

#it of product and ervice in it portfo#io via which they are meeting the demand of the

cutomer for different product and ervice. he GUCCI group offer product under

many different brand name inc#uding -ergio (oi ,ottega >eneta GUCCI ,a#enciaga

A#e"ander and McCartney which fa## under the category of #u"ury high end product.

GUCCI ha over the year ha maintained it brand to be aociated with e"c#uivene.

pretige and #u"ury. %or it target cutomer egment GUCCI offer many productpecifica##y meeting the reuirement of thoe egment. A per the GUCCI webite

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6271$8 for men GUCCI offer a wide range product inc#uding #eather hoe #uggage

#eather ;acket be#t wa##et and even perfume. hoe product are pecifica##y made

uing the highet ua#ity materia# and e"c#uive deign in order to make thoe product

differentiated from the average product that are there in the market p#ace. %or women

GUCCI offer a wide range of product inc#uding #eather hand bag hoe c#othing

perfume watche and even ung#ae. And a## thee product are deigned and

manufactured to meet the highet ua#ity tandard and #u"ury.

A decribed by Cochran 62773 p.2+8 cutomer feedback hou#d be obtained

continuou#y in order to monitor their reuirement and concern. -o GUCCI hou#d pay

pecific attention on the changing cutomer reuirement and tate o that the product

can be deigned in order to meet thoe pecific reuirement. :igher #ead time to bring

the new deign to the market can be identified one of the main weaknee of GUCCI.

-o the operation cyc#e hou#d be retructured in order to reduce thi #ead time which i a

eriou diadvantage for the brand. he mot profitab#e product #ine can be identified via

a product vie profitabi#ity ana#yi o that the unprofitab#e product egment can be

dicontinued under the management.

rice -i

A per =apoor 62711 p.)18 price mi" can be identified a the on#y revenue generator in

the who#e marketing mi". -o getting the price mi" correct wi## enab#e the organiation to

effective#y improve it revenue and profitabi#ity. GUCCI i conidered a one of mot

ought after e"c#uive fahion brand o maintaining the brand conitency can be

identified a the key to ucce. he brand can be identified a the fee#ing of the

cutomer toward the product of the company. ?ver the year the e"c#uivene

pretige and the uperior ua#ity have been the core va#ue of the brand o that in etting

the price for the product GUCCI hou#d maintain it brand conitency. A per the

=ering Group *ebite5,rand 6271$8 the e"c#uivene remain in their product when

on#y a #imited category of cutomer can afford to purchae thoe product. In that #ight

GUCCI et higher margin than the average for their product which of coure the

cutomer in it target egment prefer. :igher price for the product repreent the ua#ity

and the brand va#ue and it prevent average cutomer from purchaing GUCCI product.

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,ut one of the main weaknee in the pricing trategy of GUCCI can be identified a the

fake product that are avai#ab#e in mot of the Aian market which di#ute the brand

va#ue of the company. -o a per ?konkwo 6277) p.2$78 GUCCI hou#d pay pecific

attention on thee fake product and hou#d take appropriate tep in order to prevent

thoe product from coming to the market. A thoe product are avai#ab#e at very #ow

price that pecifica##y di#ute the brand image for GUCCI.

lace -i

A per Gi#more A. 62773 p.178 p#ace mi" dea# with the ditribution proce of a

company. hi invo#ve making product avai#ab#e for the cutomer at the right p#ace at

the right time. hat wi## particu#ar#y #ead for cutomer atifaction thu making them

#oya#. GUCCI make it product avai#ab#e at high end retai# tore f#aghip tore

operated by the company ite#f and via many different high end retai# franchiee and via

duty free tore . >ia it ditribution channe# a## around the wor#d GUCCI make it

product avai#ab#e at different countrie where the demand for the #u"ury product i high.

GUCCI i current#y e"panding it operation in to fat growing Aian countrie uch a

India and China where the demand for the #u"ury high ua#ity product i dratica##y

increaing.

A decribed by Currie 6277$ p.1)&8 in order to effective#y face the increaing demand of

the cutomer for on#ine tranaction GUCCI can effective#y deve#op it on#ine channe#

incorporating with the ditribution function o that the cutomer can pecifica##y earch

for the product they reuire and e#ect them on#ine p#acing order. %or that to happen the

re#ationhip with the upp#ier ditribution channe# wi## have to be trong where GUCCI

hou#d pay pecific attention on. A per the GUCCI *ebite 6271$8 Current#y GUCCI

offer on#ine hopping faci#itie via it webite a a part of it p#ace mi" and the ite can

be further improved in order to inc#ude many more additiona# faci#itie o that the

cutomer cou#d get a convenient on#ine hopping e"perience. Uing techno#ogie uch a

-ence) GUCCI i in a poition to improve the viua# capabi#itie of it on#ine channe#

maintaining it pretige and e"c#uivene of the brand o that the cutomer can get a

uniue on#ine hopping e"perience.

romotion -i

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@romotion mi" can be identified a one of the critica# component in the marketing mi" of

a company. A per Madura 6277) p.&$98 promotion mi" i about getting the cutomer to

know about the product and the ervice of the company o that they wi## be urged to

purchae them. he promotion mi" invo#ve advertiing a#e promotion pub#ic

re#ation direct marketing a we## a perona# e##ing. In that #ight it i very much crucia#

for GUCCI to get it promotion mi" right in order to attract more cutomer and to retain

the e"iting cutomer. A decribed by ackon 62717 p.&$8 in marketing GUCCI hou#d

pay pecific attention on maintaining the brand conitency o that the mode of

advertiing and marketing hou#d be a#igned with the e"c#uivene pretige and the

tatu of it brand.

A decribed in the =ering Group Annua# (eport 627128 GUCCI carrie out it

promotiona# activitie main#y via high end fahion maga4ine uch a %ahion *eek

te#eviion a#e promotion via the webite and a#o via the word of mouth marketing

method. GUCCI maintain it retai# out#et in order to meet the highet #u"ury tandard

and the #u"ury appea# o that the cutomer fee# the e"c#uivene and the e#egance of

GUCCI product one they enter into the hop. he a#e repreentative at the retai#

out#et offer the bet poib#e ervice to the cutomer u#timate#y making then atified

and contended. -o that the mot powerfu# marketing mode of GUCCI can be identified athe word of mouth marketing method. A per amer 62779 p.$918 one of the main iue

with regard to the promotion mi" of GUCCI can be identified a the #ack of adaptation of

their promotiona# activitie to go in #ine with the different cu#ture and tradition of the

different countrie. -pecifica##y when operating their tore in the Aian countrie with a

rich cu#tura# va#ue GUCCI hou#d adapt their advertiing and promotiona# activitie in

order to go in #ine with the #oca# cu#ture o that more cutomer cou#d be attracted to

purchae their product.

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Ima#e $ !"CCI Adertisements usin# renowned models

Source : % &tt':((www.freesam'lemaster.com( ,

According to Bevinon 6277) p.2228 a future deve#opment in the promotion mi"

GUCCI cou#d ue the ocia# media uch a facebook and twitter in order to promote their

product. Current#y GUCCI i uing thee media a a mean of promoting o that they can

be improved to get further c#oer to the cutomer and a we## a to obtain their comment

and feedback on company product and ervice which wi## be very much uefu# in the

deciion making procee.

Ima#e $ "sin# social media to #et closer to t&e customers



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Source : % &tt':((www.luurydaily.com()erin#s$dim$'rofits$bri#&tened$by$luury$

#ains1( ,

. uture deelo'ments

A per =ering Group Annua# (eport 627128 current#y there! a very high demand for the

#u"ury product from the emerging fat growing market uch a India and China o that

in order to e"p#oit that opportunity it i very much eentia# for GUCCI to e"p#oit the

mean of e"panding it operation to thoe fat growing market. he fat growing

economy and the opportunitie e"iting in thoe countrie have reu#ted in many

individua# to enter into the high income earning category who eek for high ua#itydifferentiated #u"ury fahion product and acceorie. ,ut one of the mot important

factor for GUCCI to conider in entering into thoe market can be identified a

maintaining the brand conitency o that in e#ecting the partner to operate their tore

GUCCI hou#d carefu##y identify the brand which go in #ine with the va#ue hared by

GUCCI. In entering into the Indian market GUCCI e#ected the Mur;ani Group of India

a their partner which i renowned for deigning and manufacturing many renowned

internationa# deigner fahion item. -o that in e"panding it operation into other Aian

countrie GUCCI hou#d be mindfu# in order to e#ect the uitab#e partner which i

trategica##y important for them in order to maintain the brand conitency which i their

key to ucce6GUCCI *ebite5About GUCCI 271$8.

According to the =ering Group Annua# (eport 627128 one of the main threat for GUCCI

can be identified a the imitation of it brand by many #ow ua#ity product which are

being o#d at #ower price which i direct#y di#uting it brand image. -o GUCCI hou#d

conider way of manufacturing their product uing the highet ua#ity materia# and

making the cutomer aware of thee fake product avai#ab#e o that the brand va#ue and

the brand conitency can be maintained. ,eing operating in the #u"ury market the

demand for the product of GUCCI main#y depend on the ua#ity of it product a the

cutomer are wi##ing to pay higher amount for the etab#ihed brand depending on the

ua#ity and the #eve# of differentiation they offer. -o GUCCI ha c#oe competitor uch

a Boui >uitton where GUCCI hou#d conider mean of differentiating their product in

order to attract the cutomer of the #u"ury egment to purchae their product. A per



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=ering Group %irt :a#f (eport 627138 GUCCI i current#y focuing on training it

ervice peronne# to provide the bet poib#e ervice to it cutomer which i again a

critica# point whereby they can e"ercie the differentiation.

And a per Antoinette 62712 p.++8 it wou#d be better for GUCCI to conider retructuring

the buine o that a## the buine egment and brand can be managed proper#y and

each egment wi## be ab#e to identify and cater to the cutomer reuirement profitab#y

bui#ding a c#oer re#ationhip with the cutomer. hat wou#d #ead for GUCCI brand to

get etab#ihed a the market #eader in thoe different egment bui#ding cutomer #oya#ty.

+. Conclusion

GUCCI can be identified a one of the #eading #u"ury #eather product and a fahion

brand operating a wide portfo#io of product. Getting it marketing function right

integrating with a## the other function within the firm i very much important to maintain

it brand conitency which wi## determine the ucce of the company operation. @roper

egmentation and effective management of the marketing mi" component enab#e GUCCI

to get a competitive edge in the dynamic fahion market identifying anticipating and

atifying the cutomer reuirement profitab#y. Anyway the current iue prevai#ing in

the company tructure and regarding the brand conitency wi## have to be reo#ved in

order to beat the competition attracting more and more cutomer to purchae the

company product. And the GUCCI wi## have to c#oe#y monitor the changing market

trend and market dynamic in order to deve#op new product to meet them atifying

cutomer reuirement which wi## enab#e the company to obtain a competitive edge.



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4. 5eferences

Antoinette A. 627128 Guilty Gucci, 1t dition Urban ,ook p++

Cochran C. 627738 Customer Satisfaction: Tools, Techniques, and Formulas for Success,

1t dition @aton @rofeiona# p2+

Currie *. 6277$8 Value Creation from E-Business Models, (evied ,utterworth5

:einemann p1)&

Gi#more A. 627738 Services Maretin! and Mana!ement, I##utrated -AG p17

ackon .,. 627178 "#$% &e' Maretin!: (ncrease Sales 'ith Social Media, Search

Maretin!, E-mail Maretin!, Blo!s, and More, 1t dition 0og ar @ub#ihing

p.&$

=apferer .. 627128 The )u*ury Strate!y: Brea the +ules of Maretin! to Build

)u*ury Brands, 2nd dition =ogan @age @ub#iher p.22+

=apoor :. 627118 Service Maretin!: Concets .ractices, 1t dition ata McGraw5

:i## ducation p)1

Bevinon .C. 6277)8 Guerrilla Maretin!, /th edition: Easy and (ne*ensive Strate!iesfor Main! Bi! .rofits from 0our SmallBusiness, (evied :oughton Miff#in

:arcourt p222

Madura . 6277)8(ntroduction to Business, I##utrated homponD-outh5*etern p&$9

Mc0ona#d M. 627128Maret Se!mentation: 1o' to "o (t and 1o' to .rofit from (t,

(evied ohn *i#ey E -on p2$7

?konkwo U. 6277)8 )u*ury Fashion Brandin!: Trends, Tactics, Techniques, 1t

dition @a#grave Macmi##an p2$7

(ichter . 627128 (nternational Maretin! Mi* Mana!ement: Theoretical Frame'or,

Contin!ency Factors and Emirical Findin!s from 2orld-marets, 1t dition

Bogo >er#ag ,er#in Gmb: p)$

-trydom . 6277&8(ntroduction to Maretin!, I##utrated uta and Company Btd p117

amer C. 627798(nternational Business 34e, 1t dition @earon ducation India p$91



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*eintein A. 627138 1and5oo of Maret Se!mentation: Strate!ic Tar!etin! for

Business and Technolo!y Firms, 1t dition (out#edge p127

*i##iam . 627178.ositionin! for .rofessionals: 1o' .rofessional 6no'led!e Firms

Can "ifferentiate Their 2ay to Success, I##utrated ohn *i#ey E -on p13+

6. 7eb 5eferences

%orbe #it of mot va#uab#e brand 627138 6?n#ine8 Avai#ab#e from /

http/DDwww.forbe.comDpowerfu#5brandD#itD Facceed on5 7$51)5271$

Gucci product webite 6271$8 6?n#ine8 Avai#ab#e from /

http/DDwww.guccitime#e.comDenDnewFacceed on57$52&5271$

Gucci webite 6271$8 about Gucci 6?n#ine8 Avai#ab#e from /

http/DDwww.gucci.comDintDaboutDhowFacceed on57$52+5271$

Gucci webite 6271$8 wor#d of Gucci 6?n#ine8 Avai#ab#e from /

http/DDwww.gucci.comDintDwor#dofgucciDmoaicDtheHhoueHofHgucciDgucciHhitory

Facceed on57$5115271$

=ering Annua# (eport 627128 6?n#ine8 Avai#ab#e from /

http/DDwww.kering.comDiteDdefau#tDfi#eDdocumentDkeringHra2712Hva.pdfFacce

ed on57$51)5 271$

=ering firt ha#f report 627138 6?n#ine8 Avai#ab#e from /

http/DDwww.kering.comDiteDdefau#tDfi#eDkeringH2713firt5

ha#freportH2.pdfFacceed on57$5295271$

=ering Group *ebite 6271$8 ,rand 6?n#ine8 Avai#ab#e from /http/DDwww.kering.comDenDbrandFacceed on57$5725271$

=ering Group *ebite 6271$8 Group 6?n#ine8 Avai#ab#e from /

http/DDwww.kering.comDenDgroupFacceed on57$52&5271$

=ering Group *ebite 6271$8 @re 6?n#ine8 Avai#ab#e from /

http/DDwww.kering.comDenDprere#eaeDgucciHandHafi#oHintroduceHnewHutain

ab#eHeyewearHmode# Facceed on57$57$5271$



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=ering Group *ebite 6271$8 -utainabi#ity 6?n#ine8 Avai#ab#e from /

http/DDwww.kering.comDenDutainabi#ityFacceed on57$51+5271$

. Biblio#ra'&yGrieve 6277'8.roduct )ifecycle M!mt ata McGraw5:i## ducation.

Mac=ay C. 627118Effective Maretin! in Easy Stes, I##utrated In ay -tep.

Ma#hotra .=. 6277+8Maretin! +esearch: 7n 7lied 8rientation, 94E, 1t dition

@earon ducation India.

@ettinger (. 6277)8(ntroduction to Mana!ement $thedition United =ingdom @a#grave

Macmi##an.

*a#ker ,. 6277'8Maretin! Strate!y 9E, 1t dition ata McGraw5:i## ducation.

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marketing management - gucci

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