Gucci Marketing Strategy – Marketing Strategy of Gucci: Italian fashion and accessories were established in 1921. Gucci is well-known for its luxury offerings. Kering is a global leader in apparel accessories, with its portfolio encompassing luxury, sports, and lifestyle brands.
Its offerings are a symbol of Italian craftsmanship. They are also known for their quality, modern outlook, and attention to detail.
Gucci At A Glance – Marketing Strategy of Gucci
Company : Gucci
CEO: Marco Bizzarri
Founder: Guccio Gucci
Year founded: 1921, Florence, Italy
Headquarters: Florence, Tuscany, Italy
Annual Revenue: €9.62 billion
Profit | Net income: 71.86million euros
Products & Services: handbags, ready-to-wear, footwear, and accessories, makeup, fragrances, and home decoration
Competitors: Louis Vuitton | Armani | Prada | Bulgari | Versace | Chanel | Dolce & Gabbana | Balenciaga | Yves Saint Lauren | Burberry | Hermes | Christian Dior | Ralph Lauren | Levis Strauss & Co. | Zara
Gucci Fun Fact: Gucci got his inspiration when he was working as an elevator operator in London’s swanky Savoy Hotel. He met famous celebrities such as Winston Churchill and Marilyn Monroe, and their accessories inspired him to start his own brand.
Marketing Strategy of Gucci
Gucci’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Gucci? Let us discuss.
Gucci Marketing Strategy – Segmentation, Targeting, Positioning
It uses a combination of demographic as well as psychological segmentation strategies to identify different segmentation variables. This allows the brand to offer products that are far ahead of its time in the fashion world.
It targets very specific segments of customers so it employs a selective targeting strategy.
It has always been proud of its products, which are a symbol of quality and the pinnacle of Italian craftsmanship. To position itself as a luxury brand, it uses value-based positioning strategies.
Gucci Mission Statement
“The company’s mission is to become the leader in the luxury market at a worldwide level.”
Gucci Vision Statement
Gucci is reinventing a wholly modern approach to fashion. Under the new vision of creative director Alessandro Michele, the House has redefined luxury for the 21st century, further reinforcing its position as one of the world s most desirable fashion houses.
“Quality is remembered long after the price is forgotten”
Gucci Marketing Strategy – Competitive Advantage
> Strong parent company:
Gucci forms part of Kering, a global luxury group that develops luxury apparel and accessories under its brands Bottega Veneta and Saint Laurent. These brands are available in more than 120 countries worldwide and have a strong workforce of 40000+.
> Scalable business:
The parent company has so many brands in its portfolio that it can be competitive ahead of its competition and reduce its operational costs by scaling its operations.
Gucci Marketing Strategy – BCG Matrix
It is available in product categories like Leather Goods and Shoes, as well as Ready-to-wear and Accessories.
Its business segment, leather goods, shoes, and accessories, are highlighted in the BCG matrix with a share of revenue of 55%, 17%, and 15%, while the ready-to-wear product segment is questionable due to the presence of a lot of brands in this sector.
Gucci Marketing Strategy – Distribution Strategy
To make products available to end customers, it uses channels. It sells its products through company-owned shops, online stores, wholesalers, and distributors. It has 520 stores owned by companies worldwide, which helps it generate 34% revenue in the Asia Pacific and 21% from Western Europe as of December 2016.
Gucci Marketing Strategy – Brand equity
The brand has been able to create high TOMA (top-of-mind awareness) by establishing strong brand associations and positive controversial buzz like the “The G SPOT” advertisement.
Gucci was ranked 47 th on the Forbes list of the World’s Most Valuable Brands. According to the market capitalization method, Gucci’s brand was valued at $12.7 Billion in May 2017. This generated revenue of $4.78 Billion.
Gucci Marketing Strategy – Competitive Analysis
To create a buzz in luxury and premium segments, it is important to have high visibility and a good reputation for the brand to be remembered. Gucci has been closely involved in the campaigns and its partnerships have helped position it superior to its competition. Gucci is also represented by Hermes, Louis Vuitton, and Chanel.
Gucci Marketing Strategy – Market Analysis
Companies in the luxury fashion accessories and apparel industry are affected by a changing lifestyle, low fad living cycle, climate, sociocultural differences, immigration of people as well as the development of digital media in underdeveloped countries. This industry is more focused on trendy products and promotion through various mediums.
Gucci Marketing Strategy – Customer Analysis
Gucci customers are between 15 and 40 years old, with a preference for fashionable accessories and wear. Gucci customers are upper-income and middle-class social groups.
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