MOF123
MOF123
Submitted By:
Saniya Joshi & Anjali Maurya
Submitted To:
Mrs. Kanupriya
Assistant Professor
[A] Segmentation...................................................................................................................11
[B] Targeting.........................................................................................................................14
[C] Positioning.......................................................................................................................14
[A] Product:...........................................................................................................................16
[B] Price:................................................................................................................................19
[C] Place:...............................................................................................................................19
[D] Promotion:.......................................................................................................................20
Segmentation:................................................................................................................................25
Targeting:.......................................................................................................................................25
Positioning:....................................................................................................................................26
Product:..................................................................................................................................26
Price:......................................................................................................................................26
Promotion:.............................................................................................................................26
Place:......................................................................................................................................26
Bibliography..............................................................................................................................29
[1] Introduction to Gucci:
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.
Fig [3] Jackie O bag Fig [4] Flora Print bag Fig [5] Horsebit bag
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
Strengths:
Unparalleled Brand Recognition
Rich Heritage and Craftsmanship
Global Presence and Retail Network
Strong Online Presence
Wide range of product
Weaknesses:
Opportunities:
Threats:
Intensifying Competition
Changing Consumer Preferences
Economic Fluctuations
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)
[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%
(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
[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
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.
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
[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 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
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.
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.
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.
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:
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.
Bibliography
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