GUCCI Marketing Plan

 
MKT 11
April 30, 2018
GUCCI Marketing Plan
Tagline “Quality is remembered long after the price is forgotten”
Executive Summary

  1. Luxury, sports, and lifestyle designer clothing and bags
  2. Copyrighted the green and red stripes it’s known for
  3. Emphasis on their fantastic Italian quality
  4. Appeals to the upper middle class and upper class
  5. New creative, trendy, innovative designs for their products

 
Environmental Analysis
Gucci’s marketing environment factors include the recent global recession that has made people more cautious of spending their money on luxury products such as Gucci and this has led to price increases and quality decreases as the consumers persist to avoid or reduce the buying of expensive designer products. Many counterfeit luxury goods create a loss of value in Gucci because of consumers seeing the counterfeit and real brand items as the same which reduces the loyal customer base and affects sales and returns on brand negatively. Gucci is known for its fantastic quality and innovative designs which creates a good attitude with their loyal customers. There is a lot of competition in the designer and luxury life style goods such as Chanel, Louis Vuitton, Balenciaga, Dior etc. Gucci is ranked at 47 on Forbes List of World’s Most Valuable Brands. Gucci dethroned Burberry as the leading digital brand due to its e-commerce site having quality content integration, easy-to-shop features, and exemplary customer service. The Gucci brand is also aware of their brick-and-mortar establishments making sure that they’re located on expensive and high-profile street locations that are exclusive and distinguished.
 
Gucci’s target market consists of 20-50-year-old males and females that are part of the upper class and include celebrities and wealthy fashionistas. They have recently expanded to include the middle to upper-middle class and also into a children’s section. They target those who have the desire to impress others with their luxurious products to show off their high social status and those that have a strong financial base. Their target audiences are mainly focused in countries such as America and Europe, due to its Italian background, and European populations are willing to pay more for quality. Their main focus and concentration is dedicated to life style products and targets those customers who are influenced by a high-status group that they belong to such as film stars and aristocrats. On their social media outlets Gucci has been creatively appealing to younger generations so that when they finally have enough income they’re able to keep Gucci in mind when purchasing luxury goods.
 
Gucci’s current marketing objectives are focused on bringing new, creative, and innovative designs to its lifestyle centered brand. Their goal is to stay up to date with trends and appeal to those customers that value the look of classy, fashionable, and high-class apparel. Gucci added a children’s line to their male, female, and leather goods collection in 2010 to expand their target market. The brand’s growth slowed down due to a decrease in demand in Asia, but in 2015 their revenue went up by 11 percent after two years of staying in decline. Then in 2016 they rose a further 12 percent with sales in leather goods representing 55 percent of revenue and Japan and Asia-Pacific representing 44 percent of the brand’s total sales.
 
SWOT Analysis

  • Strengths
    • Brand Equity à Ranks 47th on Forbes World’s Most Valuable Brands (worth 12.7 billion dollars)
    • Strong parent company à part of Kering which has many different designer and lifestyle brands under it’s wing. Ex à Alexander McQueen, Balenciaga, Stella McCartney, Puma, Volcom, etc.
    • Highest Quality Products à one of the most luxurious items in the market
    • Appeals to All Different Classes à formal wear for the upper class and normal dresses for middle and upper middle classes.
    • Strong Presence in International Market à 500 stores across many countries (UK, US, and Japan)
    • Product Line and Depth à Ultra premium lifestyle brand and has a huge product portfolio that includes premium handbags, apparel for both men and women, etc.
    • Creation of Ideas in the marketplace à ability to create new designs for new apparel
    • Diversity in the marketplace à able to change and adapt quickly so that they can always look fresh and hip
    • Always turns a profit and never loses an investment
  • Weaknesses
    • Expends and invests huge sums of money in business activities
    • Have been spending less money on advertising which leads to a decrease in exposure and in turn leads to a decrease in sales
    • Before spending less on advertisements, it regularly used sexual innuendoes in its advertisements causing a disturbance in its female audience
    • Its trademark, the green and red stripes, have been counterfeited in many countries and the trademark infringements and counterfeiting has gotten in the way of Gucci over the years.
  • Opportunities
    • Premium fashion brand that was able to venture into designing automobiles as well to give the car a unique blend of efficiency and fashion
    • Participate in many Corporate Social Responsibility (CSR) activities such as the one with Unicef and “Chime for change”
    • This generation is more brand conscious than previous generations and focus on premium brands such as Gucci
    • Emerging markets such as China and India
    • Fashion will always be needed in the world
  • Threats
    • Recently overtaken in consumer polls by a competing luxury fashion brand Balenciaga.
    • Competition- Along with a new huge market for luxury, designer, clothing and items there are many companies that are as big or bigger such as Louis Vuitton, Christian Dior, etc.

 
Marketing Objectives

  • Fashion designers use creative ideas and creating unique and innovative designs to make the apparel as the styles are varied from time to time (people like to look up to date and fashionable)
  • Staying up to date and fashionable so that consumers who value looking fresh will continue to buy their products

 
Marketing Strategies

  • Uses selective targeting strategy due to a very limited segment of customers
  • Positioning of products as a symbol of quality and pinnacle of Italian craftsmanship with trendy fashionable apparel & accessories à tagline “quality is remembered long after the price is forgotten”
  • Value-based positioning strategies to position itself as a luxurious brand
  • They use strong brand association and positive controversial buzz like their “The G SPOT” advertisement in creating high “top of the mind awareness.”

 
Marketing Implementation
HOW the company will implement its marketing strategies (marketing org, activities and responsibilities, implementation timetable)
Gucci positions its goods as the symbol of quality by emphasizing its Italian heritage. Italy has a history and is known for the fantastic quality of their leather goods and apparel which Gucci then associates itself with in their description of themselves. Their tagline is also “Quality is remembered long after the price is forgotten” which further emphasizes their nice quality and at the same time to coax consumers to purchase their products without thinking too much on the price. They make sure that their brick-and-mortar stores are located on expensive and high-profile locations that are exclusive and distinguished, such as the Americana in Manhasset that’s known for having many designer brands like Louis Vuitton, Hermes, Brooks Brothers, etc.
Their company is part of a larger global luxury group named, Kering, which develops an ensemble of luxury apparel and accessories through their various designer, and sports brands. Gucci’s goods are distributed through brick-and-mortar stores, e-commerce sites, wholesalers, distributors, and retailers. They have 520 company-owned stores globally that generate 34 percent revenue from Asia Pacific and 21 percent revenue from Western Europe.
They use strong brand association and positive controversial buzz like their “The G SPOT” advertisement in creating high “top of the mind awareness.” This makes sure that people are thinking about the Gucci brand as often as possible whenever thinking about the fashion industry. They adapt to the ever-changing lifestyles, fads, trends, and migration of people into the cosmopolitan culture and evolution of the digital media and use many different mediums to promote their products. Keeping all this in mind Gucci, through the new digital era, has made sure that younger consumers are always thinking about their brand and so that when they have the income to purchase luxury items they’ll always think of Gucci.
 
Performance Evaluation
 
How the company will evaluate the performance of the implemented plan (Performance standards, Financial control, and Monitoring procedures (AUDITS)).
 
Performance standards:
This statistic presents the results of a survey regarding the overall opinion of the fragrance brand Gucci by Gucci in the United States in 2015. The survey revealed that 48 percent of respondents reported a neutral attitude towards Gucci by Gucci as a fragrance brand. A further 46 percent evaluated the brand positively in 2015.
All workers, including those on part – time, temporary or agency contracts, shall have formal contracts of employment that satisfy local legislation. Contracts shall include details of wages, payment frequency, deductions, benefits, working hours, holidays, notice periods, sick pay, maternity pay a and any other local aspects of employment.
 
Financial control:
 
The opportunity is within the HR Control office, under the supervision of the WW HR Control Manager. This team is responsible for ensuring excellence in taking under control the personnel cost, for retrieving and processing data by comparing actual and forecast budget and using specific procedures and tools.
Preparation of budget and forecast
Consolidate data received from different Countries and Regions, get in touch with local HR, receive the planning of hirings and changes in organization units, process the data, prepare qualitative analysis and provide data with Financial Controller. Reporting- Prepare monthly reports and executive summaries (e.g. personnel cost, turnover, stores’ productivity and other indicators). Manage Intercompany recharge of seconded employees, inserting data into the cost centers systems. Data acquisition / check / processing- Check the data consistency at WW level by specific procedures. Extract actual data and prepare reports / tables of comparison for Country / Region / business functions. Ensure that the data entered in the system by local contributors are correct and do not generate errors or loss of information.
 
Monitoring procedures:
Gucci is committed to continuing the adoption and monitoring of policies focused on the economic sustainability of the supply chain, and encouraging the sharing of processes leading to the determination of appropriate fees, agreed on the basis of transparent methods that balance business requirements with compliance with rules, and business sustainability. Gucci also requires all suppliers and sub-contractors to comply with the company’s Sustainability Principles and to agree to unannounced visits and inspections.
Gucci is committed to continuing its efforts to adopt the values of craftsmanship, quality, safety and sustainability in its products and ensuring fair and transparent communication with its customers, which includes being constantly attentive to their needs.
 

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