By Meena Kukan 4/22/16

Dr.GertnerMBA 642

Brief IntroductionGucci was established in Florence, Italy in

1921 by Guccio Gucci, hence the design is a double G with the colors red and green from the Italian flag

Establishing itself as a luxury brand that is capable of satisfying the unique quality for consumers

Gucci Marketing StructureGucci has been a company that is quite

established because of the way in which it created a standard to sell its products with a brand value of 9.4 billion

The products which it is famous for consists of all the necessities of both men and women, but when you think of Gucci you have a sense of fashion which correlates with consumers

Brand’s Main Competitors Dolce and Gabbana(Italy)Versace (Italy)Giorgio ArmaniLouis VuittonMichael KorsBurberry(London) Hermes(France)

SWOT ANALYSIS

Environmental FactorsTechnological -Gucci has been able to make use of the

growing modernization of technology but they need to create a mass market in that sense

Demographic-Men and Women age 25 and older individuals with a high purchasing power as it tends to follow a luxury segmentation

Social Cultural-Social Organization is a big factor as the way women are perceived in advertisements giving females the wrong image

Economic-If there is a recession there will be a dramatic effect on the prices and the distribution factor for the company

Brand’s Target Market The target market for Gucci is celebrities (Hollywood

Stars) or role models of them, the wealthy (middle and upper middle class) and males to females ages 20-50

Individuals who are more prone to believe in exclusivity in shopping where not everyone will have the same style as you.

Predominant market would be girls and women who are fashionable in terms of being classy, glamorous and bold

Brand Mantra: Seduction, Powerful and Accomplished

Marketing Mix ProductPricePromotionPlace

ProductThe types of products Gucci sells ranges from

a wide variety of items such as clothing and apparel, watches, handbags, suits, accessories and newly created cosmetics etc

Price Gucci has been a diversified luxury brand for

quite some time and it was been able to establish itself for a company that is able to give us the quality in correlation to price

The way Gucci prices its products is through premium price correlating with the high quality and prestige price, with which they are able to keep selective items at a discount.

Compared to many luxury brands it has a comparable pricing strategy

Promotion Fashion WeekNewspaper/MagazinesCommercialAdvertisements Celebrity Endorsements

PlaceThe way in which Gucci establishing its outlets in high-

end market places such as a professional setting where there are elite groups of individuals live all over the world

Since Gucci is known for the impeccable style it tries to carry that out for its outlets having a visually appealing interior and relaxed feeling for their consumers

Strategic Issues The strategic aspects which Gucci has been able

to create as I mentioned is a brand image that allows many female millennial to purchase their products.

Compared to the other luxury brands, it is able to keep its customers an affordable price for a quality which they deserve.

Especially since they have a variety of segments that satisfies the needs they are searching for in terms of makeup and clothing etc.

Key Success Factors Gucci has been able to establish itself in many

ways in terms of social causes that seem to be effected in our society consistently maintaining brand image

A cause founded by Gucci was the Chime for Change which is dedicated to giving an overpowering feeling for on girl’s and women in terms of three factors education, health and justice.

Gucci was successful in having a concert with nearly 210 projects, raising 3.9 million dollars for the individuals.

Continued…For one it was able to support causes such as violence

against women , as the consumers of these products are predominately women they have been able to capture their needs

Launched in 2009,the Kering Foundation is a cause which focuses on the females who have endured domestic violence(Asia),sexual violence (Americas) and harmful traditional practices (Western Europe)

In each they have tried to partner with these causes to have an impact which will have a change for the female consumers who understand these problems and can relate.

Brand ExtensionsGucci product extensions consists of a variety of

features for one they have been known for their tableware and a new line called Gucci Goddess(similar to Victoria Secret)

The fashion line has been evident chance for Gucci to show that they have a competitive advantage in that sense to a show of doing well in a market related to females.

This makes it hard in the sense that they will have new competitors in the specified line it has a new branch of competitors.

Recommendation Even though, Gucci has definitely been able

to establish itself in many ways, there is always room for improvement the should incorporate a lifestyle which is not exclusive

But more so on a segmentation which they will be guaranteed to have a competitive advantage over in a certain segment especially since they are well-known by their luxury style

References http://www.gucci.com/ca-en/about/showhttp://www.prnewswire.com/news-releases/

chime-for-change-campaign-founded-by-gucci-funds-210-projects-in-81-countries-for-girls-and-womens-empowerment-216027391.html

http://luxurysociety.com/articles/2009/06/the-impact-of-the-current-economic-crisis