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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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