SWOT Analysis: Marketing Analysis Of Gucci

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

In 1980s, Gucci had lost its appeal and became a tacky brand and was also in deep financial crisis. But Tom Ford raised Gucci from dead and found out the company’s leading status and maintains

Gucci, a brand known for its quality, luxurious and royal association was confronted with strategic issues which made the company take notice of its strategy of expansion and brand personality. The company was not only having concerns with their product line but they were lacking unified corporate vision and strategy after its acquisition of some major names like YSL. Due to which they started having loophole in their luxurious goods market discipline. Strategic concern for the company was how does the brand image cascade down in the target market and how does it rejuvenate itself is a management lesson.

It pay specific attention to deals made with the government, establishing a good relation. And also he investment in quality products.

We can also leverage the strength and popularity of the Gucci brand to gain distribution for the smaller names, much like how LVMH leveraged Louis Vuitton’s popularity. By holding off of new acquisitions, Gucci can learn to handle the four brands they currently have before adding extra brands.

In the same magazine, Gucci was listed as a very valuable fashion brand with estimate revenue of 12.7 Billion Dollars (Forbes). The two companies show a very spirited competition which is only demarcated by an estimated revenue difference of 5 billion dollars. This, then, means that with such high competition in the industry, Gucci can never, at any one time, sit pretty thinking that it runs the fashion scene – far from it – other worthy brands are selling out there – they have the ability to supersede Gucci in the short and long run.

Gucci utilizes the differentiation business strategy, as the brand itself promotes premium quality. They are known for their high end leather products and the red and green striped webbing with the GG logo. The company is in no way price-sensitive and caters to the affluent through customization, genuine leather, premium quality, and exceptional customer service. Gucci’s customer base is more than willing

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

The Gucci has sole product of feature of each brand and tactical relation with all its business. The past history shows the company’s command over its luxurious product and the sustainability of the product. The good reputation of the company enhances its market share at the top in luxury industry. The reason for the expansion of Gucci I is due to its hard effort in bringing new fashionable product in the market secondly bringing innovation in the product, thirdly providing high quality product. The main reason of expansion of Gucci is its hard effort for bringing up its other brands. There is a competitive clash between Gucci woman brand and YSL woman brand which results in substantial brand recognition. It

Market growth: Repositioning and revival of the brand has led the company to the fast growing path and Burberry would like to continue it in future. Business strategy adopted by Burberry at this stage would have long-term impact on its growth. Therefore, market growth becomes an important criterion for basing any recommendation.

Gucci is a well known, international luxury fashion brand which is easily recognizable with its famous icons such as the double G logo, horsebit and the red & green stripes (web) especially after Guccio’s sons succeeded in promoting the brand as luxury which attracted many rich customers. ( https://www.pearson.pl/wrap.php?data=files/sample_pages/INTELLIGENT%20BUSINESS/9780582848092.pdf )
Many of Guccio’s clients were horse-riding aristocrats, and their demand for riding gear led Gucci to develop its unique Horsebit icon which soon became the symbol of the fashion house.
In the mid-60s, Gucci adopted the legendary interlocking double G logo which was Aldo Gucci’s idea representing the initials of his father’s

However, in Gucci marketing plan, there were many risks involved with the “star design strategy” as this marketing strategy definitely gives instant success by boosting sales and rebuilding the reputation main asset for luxury brands like Gucci, but the risk involved is high for the company to forecast the effect on the brand image in the absence of star-design.

Luxury is accessible to all but not all can access luxury. With it’s limited production, refinement and its little amount of buyers. It is one of the driving forces in society to date. It is in the upper class consumer’s culture to buy Moschino; it is a premium brand in terms of quality and price so we could say that it is ranked among the luxury brands we know of. Which means not any person could afford Moschino. Those people for whom luxury is a part of their upbringing can be easily persuaded to buy Moschino. If the consumer doesn’t find the brand attractive and to whom luxury is not included in their every day life they could be of lesser importance to the brand because they are not included in the target segment but could still be potential clients for the less elite products. It is due to globalization that everything became more accessible to the public and so did the luxury business which; opened up a new

9 Leading Fashion Brands of Italy…………………………………………………………9 Monetary system of Italy……………………………………………………………….. 10 Status of its intellectual and research/innovation……………………………………….. 11 International rankings of Italy…………………………………………………………... 11 Analysis of Italian fashion industry……………………………………………………... 12 Strengths, opportunities and threats of Italian Fashion industry………………………...

First brand to be discussed is Burberry- global luxury brand with a distinctive British identity was founded in 1856 by 21-year old Thomas Burberry. Its product range includes: Women’s, Men’s, Children, Beauty and Accessories. The brand identity has a long established reputation for design, innovation and craftsmanship. Burberry customers envolve with time, from including those who ventured out into extreme conditions to politicians, royalty, and celebrities but only recently company began advertising designs for the affluent, young and digitally-aware consumer, while keeping current customers satisfied. Burberry‘s planning model goes through 4 stages which are design, manufacture, sourcing, sale. It