SWOT Analysis: Marketing Analysis Of Gucci

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.

Gucci happens to be one of the most sought after brands in the industry. The latter emanates from the fact that Gucci is classified as one of the most successful brands in the fashion industry, owing to the fact that its products are of top-notch quality (Bhasin). Being a household name for quite some time now, Gucci prides itself in having a huge customer base on the global scene especially after changing designers, a fact that contributes greatly to its increase in sales which translate to subsequent profits (Cartner-Morley; Bowles). While it can be arguably said that Gucci is a force to reckon with in the fashion scene, a lot of factors affect the operations of this company, both internally (micro) and externally (macro

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.

Gucci is one of the most powerful leaders in luxury fashion market. Gucci is founded by Guccio Gucci in 1921 in Florence, Italy. Now, Gucci is the part of Gucci Group and Pinault Printemps Recloute (PPR). The globalization of the fashion environment and boost in the western economies transform Gucci from a small Italian company in to large luxury fashion brand in global level.

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

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.

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.

According to Gucci Official Site United States (2016), Gucci is a progressive, innovative, and influential brand aimed at reinventing fashion in the 21st century. Their products are romantic, contemporary, and eccentric that portray the finest Italian dexterity. Gucci’s products are known for their premium looks along with their best quality. Hoang (2016) mentioned that, Gucci reflects its premium brand value by maintaining a ‘perfect balance’ between the brand’s status as a leading fashion company and its Italian heritage. Gucci’s values and brand identity can be described in three phrases: Italian craftsmanship, creativity, and quality. According to Wendlandt (2016), the brand has been

Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues

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………………………...

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

Gucci has a lot of competitors in the luxury market where each one provides unique items but the competency between them is high as there is always the chance of the threat of new entrants. 


























Pestle

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

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

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.