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A Report on

GUCCI Marketing Journey

For the Mid-Term of Marketing of Fashion

Submitted By:
Saniya Joshi & Anjali Maurya

Submitted To:
Mrs. Kanupriya
Assistant Professor

Department of Fashion Technology

National Institute of Fashion Technology Panchkula, Haryana, India


Table of Contents
[1] Introduction to Gucci:............................................................................................................5

[A] A History of Luxury and Innovation.................................................................................5

[B] SWOT Analysis of Gucci..................................................................................................8

[C] USP of Gucci.....................................................................................................................9

[2] Market Environmental Analysis..........................................................................................10

[A] Macro Factors..................................................................................................................10

[B] Micro Factors..................................................................................................................10

[3] STP Strategy Formulation....................................................................................................11

[A] Segmentation...................................................................................................................11

[B] Targeting.........................................................................................................................14

[C] Positioning.......................................................................................................................14

[4] Marketing Mix Assessment.................................................................................................15

[A] Product:...........................................................................................................................16

[B] Price:................................................................................................................................19

[C] Place:...............................................................................................................................19

[D] Promotion:.......................................................................................................................20

5. Consumer Behavior Analysis................................................................................................21

[A] Brand loyalty:..................................................................................................................21

[B] Aspirational Consumption:..............................................................................................22

[C] Sustainability Awareness:...............................................................................................22

[D] Social Media Influence:..................................................................................................23

[E] Shopping Preferences:.....................................................................................................23


6. Innovative Marketing Campaign...........................................................................................24

[A] Campaign Title: Gucci x Metaverse...............................................................................24

[B] Marketing Strategy by using STP...................................................................................25

Segmentation:................................................................................................................................25

Targeting:.......................................................................................................................................25

Positioning:....................................................................................................................................26

[C] Marketing Strategy through Marketing Mix Assessment...............................................26

 Product:..................................................................................................................................26

 Price:......................................................................................................................................26

 Promotion:.............................................................................................................................26

 Place:......................................................................................................................................26

7. Brand Positioning Audit........................................................................................................26

8. Social Media Marketing Plan................................................................................................27

9. Pricing Strategy Stimulation..................................................................................................27

Bibliography..............................................................................................................................29
[1] Introduction to Gucci:

[A] A History of Luxury and Innovation


1921: The Beginning
Gucci, a known luxury fashion brand was established by Guccio Gucci in 1921 in the city
of Florence, Italy .Inspired by the craftsmanship of Florentine heritage Gucci's creations
quickly gained recognition for their refined quality and timeless designs.

Figure [1] Gucci Workshop

1933: Expansion
In 1933 they introduced their double G logo which quickly became synonymous with the
brand. Guccio Gucci's sons, Aldo, Rodolfo, and Vasco, joined the company, bringing
new ideas and expanding the brand's reach. In 1933, they also opened first Gucci store in
Florence.

Figure [2] The Interlocking G’s


1950’s-1960’s: New York Debut and Global Recognition
In 1953 Gucci opened its first store in New York City. And at that time they released
there iconic Jackie O bag.. Throughout the 1960s, the brand's signature motifs, such as
the horsebit and Flora print, became instantly recognizable symbols of Italian chic.

Fig [3] Jackie O bag Fig [4] Flora Print bag Fig [5] Horsebit bag

1970s and 1980s: Challenges


However Gucci faced a decline in popularity during the 1970s and 1980s as it became
associated with the "yuppie" culture of that era. Its designs were considered outdated and
conservative, at that time. (Gucci’s Marketing Strategy through the Years - The Strategy
Story, 2020)

Gucci during the 1970s and 1980s (Gucci’s Strategy, 2021)


1990s: Revival under Tom Ford
In the 1990s under the direction of Tom Ford Gucci made a
comeback. Fords daring and alluring designs appealed to a
generation of consumers rejuvenating the brands popularity
again. (Gucci’s Marketing Strategy through the Years - The
Strategy Story, 2020)
In 2015 Gucci appointed Alessandro Michele as their
director. Since then Michele has steered the brand towards
a direction emphasizing gender fluid fashion, maximalist
and eclecticism. Both critics and consumers have lauded
his designs propelling Gucci to become a favorite, among
millennials. (Gucci, Digital Advertising & Strategy Case
Study | G & Co., 2022)
Alessandro Michele

Today Gucci stands as a luxury fashion brand with 528 boutiques across over 40
countries. (Kolk,2023). This includes both directly operated stores and franchised stores.
 Asia-Pacific: 181 stores
 Europe, Middle East, Africa: 205 stores
 Americas: 142 stores

[B] SWOT Analysis of Gucci

Strengths:
 Unparalleled Brand Recognition
 Rich Heritage and Craftsmanship
 Global Presence and Retail Network
 Strong Online Presence
 Wide range of product

Weaknesses:

 Premium Price Positioning


 Counterfeiting and Brand Imitation
 Overdependence on Wholesale Distribution

Opportunities:

 Expanding Presence in Emerging Markets


 Embracing Sustainable Practices
 Leveraging Technological Advancements

Threats:
 Intensifying Competition
 Changing Consumer Preferences
 Economic Fluctuations

[Citation: - (Gucci Annual Report, 2022), Gucci. (2023)]

[C] USP of Gucci

 Timeless Luxury: Gucci offers unparalleled luxury and sophistication, symbolizing


timeless elegance in the fashion world.
 Heritage Craftsmanship: Gucci emphasizes its rich heritage and Italian craftsmanship,
creating products that reflect a tradition of excellence and quality.
 Exclusivity and Prestige: Gucci maintains an aura of exclusivity, creating limited
edition items that appeal to collectors and those desiring unique, high-end fashion.
 Celebrity Endorsements: By associating with celebrities, Gucci positions itself as a
brand aligned with high-profile, stylish individuals, enhancing its appeal to fashion-
conscious consumers.
 Global Accessibility: Balancing exclusivity with accessibility, Gucci ensures its luxury
products are available in major cities worldwide, catering to a diverse international
clientele.

[2] Market Environmental Analysis

[A] Macro Factors

 Global economic growth: The success of Gucci, a luxury brand heavily relies on
economic growth. If the global economy experiences a slowdown Gucci’s sales
are expected to be impacted. (Gucci PESTLE Analysis 2022, 2022)
 Currency exchange rates: The profits of Gucci could also be influenced by
currency exchange rates since they sell their products worldwide. If the euro
strengthens against currencies it would make Gucci’s products more expensive,
for customers. This may result in a decline in sales. (Bonacchi et al., 2012)
 Consumer confidence: Consumer confidence plays a role in shaping the luxury
goods market. When consumer confidence is low and people are uncertain about
the economy and their future finances they are less likely to spend money on
luxury items like those offered by Gucci. (Bonacchi et al., 2012)
 Technological change: technological advancements constantly reshape the
industry. To maintain competitiveness Gucci must continually adapt to these
changes. For example, Gucci needs to invest in e-commerce and social media
marketing. (Gucci PESTLE Analysis 2022, 2022)
 Government regulation: Government regulation can also affect Gucci. For
example, changes in tax laws or import tariffs could have a negative impact on
Gucci. (Gucci PESTLE Analysis 2022, 2022)

[B] Micro Factors

 Competition: Gucci faces competition, from renowned luxury brands like


Chanel, Louis Vuitton and Prada. These brands are all targeting the same
customer base. (Bonacchi et al., 2012)
 Suppliers: Gucci relies on a network of suppliers to provide it with materials and
finished products. Any issues faced by these suppliers could potentially disrupt
Gucci’s production and sales. (Gucci PESTLE Analysis 2022, 2022)
 Customers: Gucci caters to customers who have expectations for quality products
and exceptional customer service. Meeting these expectations is crucial for
retaining a customer base. (Bonacchi et al., 2012)
 Distribution: To ensure availability at the place and time Gucci distributes its
products through channels including its own boutiques, department stores and
online retailers. (Bonacchi et al., 2012)
 Marketing: Effective marketing strategies are essential for reaching their target
customers. Gucci employs marketing channels such as advertising, public
relations and social media to promote their products effectively. (Roberta, 2021)
[3] STP Strategy Formulation

[A] Segmentation
(a) Demographics: Gucci can segment its market by age, gender, income,
education, and occupation. For example, Gucci could target wealthy
millennials or affluent Gen Z consumers. (Gucci’s Marketing Strategy
through the Years - The Strategy Story, 2020)
i. Gucci Gender Ratio
Male: 45.4%
Female: 54.6%

ii. Millennials are leading Gucci’s 50% sale.


iii. Its major audience is of 20-50 year old age group.
iv. It is majorly focusing on High-End Market.
(b) Psychographics: Gucci can segment its market by lifestyle, interests, and
values. By targeting consumers passionate about fashion trends, luxury goods
quality and sustainability practices Gucci can tailor their offerings
accordingly. (The Rise of Web3: How the Year in Tech Changed Fashion
Forever | Vogue Business, 2019)

Here are some examples of how Gucci's marketing campaigns appeal to


its target market's psychographic characteristics:
 Gucci's "Forever Now" campaign features a diverse cast of
celebrities and fashion models, representing the brand's
aspirational lifestyle.
 Gucci's "Chime for Change" campaign supports women's
empowerment, which aligns with the brand's values of inclusivity
and diversity.
 Gucci's social media accounts share exclusive content, such as
behind-the-scenes looks at its fashion shows and new product
releases, which appeals to its target market's interest in fashion and
luxury goods.

(c) Behavioral: Gucci has the ability to divide its market based on customers
purchase history browsing patterns and social media interactions. For instance
Gucci can focus on consumers who have previously bought Gucci products or
those who have actively engaged with Gucci on social media platforms.
(Hanlon, 2022)
 Purchase history
 Website browsing activity
 Social media engagement
 Customer return and loyalty.
(d) Geographic

 North America: The United States is Gucci's largest market, followed by


Canada.
 Europe: Italy is Gucci's home country and is also one of its largest markets.
Other key European markets include France, the United Kingdom, and Germany.
 Asia Pacific: China is Gucci's largest market in the Asia Pacific region, followed
by Japan and South Korea.
Gucci also has a growing presence in markets, such as Latin America and the
Middle East.

Regional Segmentation of Gucci

[B] Targeting
 Age: 18-55 years old
 Gender: Male and female
 Income: High income
 Education: College degree or higher
 Occupation: White-collar professional, entrepreneur, business owner, etc.
 Lifestyle: Fashionable, trendsetting, affluent, successful, independent
 Interests: Fashion, luxury goods, travel, dining, entertainment, art, culture
 Personality traits: Confident, stylish, sophisticated, ambitious, successful,
independent
 Gucci's marketing strategy is designed to appeal to this target audience. For
example, Gucci's advertising often features celebrities and fashion models, which
represent the brand's aspirational lifestyle. Gucci also uses social media to connect
with its target market and share exclusive content, such as behind-the-scenes
looks at its fashion shows and new product releases.

[C] Positioning

High quality products:


They are manufactured, made
with good raw materials (i.e.,
pima cotton instead of
4
regular one). But, the quality of
the materials will only be
noticeable for those who have
certain experience on
pruchasing good quality
products. The brand products
last longer,
feel and look better.
a) High quality products:
They are manufactured, made with good raw materials (i.e., pima cotton instead
of 4regular one). But, the quality of the materials will only be noticeable for those who
have certain experience on purchasing good quality products. The brand products last
longer, feel and look better.

b) Advertising
As they are intended to build up the external
perception of the brand, the type of ads that the
company broadcasts are focused on the tastes and
activities that only high-end clients usually do
on a regular basis. For example, Gucci is a
sponsor in elite sports such as tennis, golf etc.

c) Innovation and Creativity: Known for avant-garde designs, Gucci attracts to


fashion-forward individuals seeking unique styles.
d) Heritage and Tradition: Emphasizes Italian craftsmanship, appealing to those
valuing authenticity.
e) Celebrity Endorsements: Associates with celebrities and pop culture, staying
trendy and influential.
f) Exclusivity and Limited Editions: Offers rare, limited edition products.
g) Social Responsibility: Focuses on sustainability, appealing to eco-conscious
consumers.
h) Create an inviting and luxurious store environment. (Gucci’s Marketing
Strategy through the Years - The Strategy Story, 2020)
i) Gucci's online presence supports its positioning:
 Well-designed and easy-to-use website with a wide range of products
 Informative blog with news about the brand, its products, and its fashion
shows
 Strong social media presence with a focus on connecting with target
market, sharing exclusive content, and promoting products

[4] Marketing Mix Assessment

The marketing mix employed by Gucci consists of four elements; product, price, place
(distribution) and promotion. These elements work together harmoniously to help Gucci
achieve its marketing objectives.

Figure [3] Gucci Marketing Mix (Gucci Marketing Mix (2023), 2023)

[A] Product: Gucci presents a collection of high end offerings, for individuals of all
genders and ages.
 This offer footwear options for both men and women along with a selection of to
wear clothing items.
 They also offer leather handbags that elegance along with home decor items
that add a touch of sophistication.
 Additionally their product portfolio encompasses jewelry pieces that radiate
luxury as stylish watches for those seeking timeless accessories.
 Gucci also caters to fashion enthusiasts with sunglasses designed keeping trends
in mind along with belts that elevate any outfit.
 Scarves are available in patterns for those desiring versatility while luggage
bags provide stylish solutions during travel.
 Wallets crafted from materials offer functionality, without compromising on
style.
 Lastly hats and gloves add flair while beauty products help individuals express
themselves through makeup artistry. (Bhasin, 2015)

 Gucci also provides various services to its customers, such as online shopping,
personal advisors, embossing, after-sales service and more(Gucci Marketing Mix
(2023), 2023).
 Gucci’s product strategy revolves around creating items that appeal to the class
and serve as symbols of status. (Gucci Marketing Strategy & Marketing Mix
(4Ps) | MBA Skool, 2020.).
Warranty
 Gucci offers a 2 year international warranty for its timepieces, valid from the date
of purchase.
 The warranty is only valid if the warranty certificate has been duly completed by
the dealer upon purchase.
 The warranty certificate must include the name or model number, the serial
number, the place and date of purchase.
 The warranty covers any fault arising from defective parts or a manufacturing
defect.

Packaging
In 2020, Gucci introduced its new packaging in a shade of green—chosen by Creative
Director Alessandro Michele and created with a selection of materials with a specific
focus on sustainability.

In store packaging
Featuring an ornate green decorative pattern on shopping bags and boxes, all paper and
cardboard come from managed sources. In order to facilitate recycling at the end of its
life, the paper is paste-dyed at the beginning of the production process and is not coated
with plastic. On top of this, the black torchon shopping bags handles are made of 100%
recycled polyester and are knotted to avoid the use of glues and for an easier separation
of components. Dust bags and suit carriers, in neutral colour, are made of regenerated
cotton with details in recycled polyester, finished with the black Gucci logo. Ribbons are
100% organic cotton and hangers are made of recycled polystyrene.

E-commerce packaging
 Gucci knows it, and puts it into practice with colors and in general, a package that
transmits simplicity, safety and purity.
 Gucci has begun to use 100% recyclable materials in the packaging of its
products.
 The reversible outer box, reusable for returns in case of need, made with paper
from managed sources;
 Adaptable packaging, designed to fit at best the product it contains in order to
optimize transport, reducing the number of vehicles needed and consequently our
carbon footprint.

[B] Price:
This is key to Gucci’s success, they don’t want their products to be too affordable, even though
they could be. It’s strategy is based on selling a few products at a higher price, instead of a lot of
products at a lower price, so they end up gaining a similar amount of money (i.e, selling a
thousand skirts at 90€ will provide the brand almost the same amount as 300 at 290€).
Exclusivity is the core of Gucci’s positioning

 Its price ranges from $200-$30,000


 They don’t charge shipping charges.
 They often price some products with numbers or decimals to make them appear
alluring or distinctive. (Gucci Marketing Mix (2023), 2023).
 They never promote their sale, they might call their customer personally and that
is because they need to empty their old stock but don’t want to let discount effect
their image as luxury brand.

[C] Place:
 Gucci is a luxury fashion brand that primarily operates through direct-to-
consumer (D2C) channels, including its own boutiques and online store.
However, they also sell their products through select department stores and
authorized retailers.
 They have a significant presence in fashion capitals such as Milan, Paris, New
York, and Tokyo.
 Gucci makes its products available, through channels including specialty stores,
department stores, online platforms, duty free shops and outlets. (Gucci
Marketing Strategy & Marketing Mix (4Ps) | MBA Skool, 2020.).
 Gucci has a presence with a network of, over 500 stores spread across more than
100 countries. (Bhasin, 2015). (Bhasin, 2015).
 Gucci follows an approach by limiting the availability of its products to a
carefully chosen outlet. (Gucci Marketing Strategy & Marketing Mix (4Ps) | MBA
Skool, 2020)

[D] Promotion:
 Gucci promotes its products through various platforms, such as print, digital,
social and outdoor as they can’t stop doing their traditional thing and while doing
their promotion digitally they’ll show its traditional essence in one way or
another.(Gucci Marketing Strategy & Marketing Mix (4Ps) | MBA Skool,2020.).

Gucci marketing in magazine

 Gucci also uses the power of celebrities and influencers to promote its brand and
products(Gucci Marketing Mix (2023), 2023). Additionally Gucci collaborates
with celebrities like Harry Styles, Billie Eilish , Jared Leto among others, who
endorse the brands products.
 Furthermore Gucci actively engages in social responsibility initiatives and
sustainability efforts to bolster its brand reputation while appealing to consumers.
(Gucci Marketing Mix (2023), 2023). For example, They have initiated projects
like GUCCI EQUILIBRIUM, GUCCI CHANGEMAKERS and GUCCI OFF
THE GRID that aim to support causes.
5. Consumer Behavior Analysis

[A] Brand loyalty:


Around 29% of luxury fashion users in the United States say they are likely to use Gucci
again. Set in relation to the 39% usage share of the brand, this means that 74% of their
owners show loyalty to the brand. (Gucci Brand Profile U.S. 2022, 2023).Gucci has
maintained traditional tunnel flow for decades in order to have such loyal customer base.
[B] Aspirational Consumption:
The Gucci’s entry-level luxury products cater to customers who want to own a piece of
the brand and there salary is just the price or just below it. They can be reached through
by:-
 Utilizing various channels
 Premium customer experience
 Promoting ethical practices, etc.

[C] Sustainability Awareness:


There is a major blow of sustainability in recent years and most of the high end customers
want that in their product, where by promoting Gucci’s sustainable practices they can
easily cater these groups of customers.

[D] Social Media Influence:


Gucci actively engages with its audience on social media, showcasing new products,
collaborating with influencers, and creating engaging content. This helps them in:-
 Increasing brand awareness
 Improve brand image
 Gaining new customers
 Building trust among customers
 Creating a feeling of desire in them
[E] Shopping Preferences:
 Gucci's online store offers a convenient and user-friendly shopping experience,
catering to the growing preference for e-commerce.
 Gucci’s easy return and exchange policy also help them maintain trust in the
brand.
 Gucci’s offline stores provide personal advisors that help them decide what’s
nice for them making them feel special.
6. Innovative Marketing Campaign

[A] Campaign Title: Gucci x Metaverse


In this campaign Gucci would partner with a leading metaverse platform to create an
interactive virtual experience for its customers. This campaign would leverage the latest
advancements in augmented reality (AR) and virtual reality (VR) to transport Gucci's
creations into the metaverse, offering a unique and engaging way for customers to
connect with the brand.
Key Elements:
 Virtual Gucci Boutique
 AR-Powered Gucci Experiences
 Interactive Gucci Treasure Hunts
 Collaborative Gucci Metaverse Fashion Shows
 Gucci Metaverse NFT Collection
[B] Marketing Strategy by using STP

Segmentation:
 Gucci should target young, tech-savvy peoples who are active users of the
metaverse and have a strong interest in fashion.
 The brand should also focus on people who value innovation, creativity
experiences, seeking a unique and engaging way to connect with fashion brands.
 Gucci can also target people based on their metaverse browsing habits, online
interactions, and virtual purchases.

Targeting:
 Gucci should concentrate on a specific segment of the metaverse community,
such as gamers, fashion enthusiasts, or art collectors.
 Gucci can utilize user data and analytics to target individuals based on their
demographics, interests, and behaviors.

Positioning:
 Gucci should position itself as a pioneer in metaverse fashion and emphasize its
innovative approach to virtual experiences.
 The brand should also highlight its commitment to sustainability and ethical
practices within the metaverse.

[C] Marketing Strategy through Marketing Mix Assessment


 Product: Gucci can offer a variety of virtual experiences and products,
including
a) AR-powered experiences
b) Interactive treasure hunts,
c) An exclusive NFT collection.
 Price: Gucci should employ a value-based pricing strategy that reflects the
exclusivity, innovation, and immersive nature of its virtual offerings. The price
should resonate with their real world price.
 Promotion: Gucci should utilize metaverse platforms and social media
channels to promote the campaign and collaborate with influential figures within
the metaverse community.
 Place: Gucci should establish a strong presence within the metaverse.

7. Brand Positioning Audit

Gucci’s current positioning does not align much with the campaign in such ways:-
 They are not currently particularly focusing on tech, gamers or art collectors.
 Gucci has not focused much on creative side and had always given priority to
simplicity so this time they have to look from different perspective.

Gucci’s current positioning aligns with the campaign in such ways:-


 Gucci is already utilizing its user data and analytics to target individuals based on
their demographics, interests, and behaviors.
 The brand should also highlight its commitment to sustainability and ethical
practices within the metaverse as its doing in real world
 Gucci need to position itself as a pioneer in metaverse fashion and emphasize its
innovative approach to virtual experiences as its doing it in real world.

8. Social Media Marketing Plan

 Using augmented reality (AR) filters and experiences: Gucci could create AR
filters that allow users to virtually try on Gucci products, or create AR
experiences that take users on a virtual tour of Gucci's stores or events leading to
feeling of desire within people to have those things and luxury of Gucci.
 Using artificial intelligence (AI) to create personalized content for users:
Gucci could use AI to create personalized content for users, such as product
recommendations or style guides.
 Using social media to drive sales through direct-to-consumer (DTC)
channels: Gucci could use social media to drive sales through DTC channels,
such as by allowing users to purchase products directly through social media
platforms.

9. Pricing Strategy Stimulation


Let us assume Gucci is going to launch a High-End Jewelry like these:-

Gucci is a renowned luxury brand, and its high-end jewelry should reflect this status in
its pricing strategy. The exact price range for Gucci's high-end jewelry would depend on
various factors, including the specific piece, the materials used, the craftsmanship
involved etc. However, comparing famous jewelry brands prices in current market with
Gucci's reputation and its existing jewelry offerings, one could expect the prices for its
high-end jewelry to fall within the following ranges:

 Necklaces: Starting from $5,000 to $20,000 or more


 Earrings: Starting from $2,000 to $10,000 or more
 Rings: Starting from $1,500 to $5,000 or more
 Bracelets: Starting from $3,000 to $15,000 or more

The actual prices could be higher or lower depending on the specific pieces. To further
elaborate on Gucci's pricing strategy for its high-end jewelry, consider the following
factors:
1. Exclusive Materials: Gucci would likely use expensive metals like gold,
platinum, and palladium, along with gemstones like diamonds, sapphires, rubies,
and emeralds, in its high-end jewelry. These materials are valuable and will
automatically lead to the high price points.
2. Intricate Craftsmanship: Gucci's high-end jewelry would showcase intricate
craftsmanship like all of there products, with skilled artisans meticulously
handcrafting each piece. This attention to detail and the level of expertise
involved further justify their high price point.
3. Brand Prestige: Gucci's brand prestige plays a significant role in its pricing
strategy. The brand's reputation for luxury, exclusivity, and elegance elevates the
value of its jewelry.
4. Limited Availability: Gucci may employ limited-edition strategies or exclusive
distribution channels for its high-end jewelry, creating a sense of rarity and
desirability that further reinforces its value and supports high pricing.
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