Table of Contents 4 - 10
COMPANY OVERVIEW
12 - 13
BRAND MATRIX
14 - 15
SWOT ANALYSIS
16 - 19
TARGET MARKET
20 - 25
COMPETITORS
26 - 29
MARKET ANALYSIS
30 - 31
NEW PRODUCT CATEGORY
32 - 35
PRODUCT ASSORTMENT
36 - 37
PACKAGING
38 - 45
MARKETING STRATEGY
46 - 47
LAUNCH EVENT
48 - 49
PROMOTIONAL PLAN
50 - 51
6- MONTH SALES FORECAST
52 -53
CONCLUSION
COMPANY OVERVIEW Founded in Florence in 1921, Gucci is an Italian fashion and leather goods brand that is owned by Kering, a French company. Gucci became one of the most successful manufactures of high-end leather goods, clothing and other fashion products. Making them one of the world’s leading luxury fashion brands. In 2015, Gucci embarked on the next chapter in its history, under the creative direction of Alessandro Michele. He introduced a new contemporary vision, which is re-establishing its reputation as one of the world’s most influential luxury fashion brands. Eclectic, romantic, and above all contemporary, Gucci is currently inventing a wholly modern approach to fashion and thereby redefining luxury for the 21st century. This new image has been promising, Kering reports that in 2015 Gucci accounted for 50% of their luxury division’s revenue. Gucci owns and operates 525 stores worldwide, and also sells merchandise through a variety of department stores that cater to the upper class. North America opened 5 new stores this past year, totaling 122 directly- operated stores. It is currently the highest selling Italian brand and Kering already announced a 3.1% sales increase in the first quarter of 2016.
4
Breakdown of 2015 Revenue by Product Category
2015 Key Figures € 3,898 million
In revenue
€ 1,032 million in recurring operating income
REVENUE(%)
LEATHER GOODS
SHOES
READY-TO-WEAR
WATCHES
JEWELRY
OTHER 0
15
30
45
60
Alessandro Michele CREATIVE DIRECTOR
Alessandro Michele, 42, studied at Accademia di Costume e di Moda in Rome. After he graduated he joined Fendi as Senior Accessories Designer. In 2002 he moved to Gucci’s Design Office and began working for the Creative Department. In May 2011, he was promoted to the role of Associate to the Creative Director, Frida Giannini. In September 2014, he became Creative Director of Richard Ginori, the renowned Italian fine porcelain brand that Gucci acquired in June 2013. In January 2015 Alessandro Michele is appointed as Gucci’s Creative Director giving him total creative responsibility for all of Gucci’s collections and its brand image.
7
History 1950
Gucci’s green-red-green web stripe became an instantly recognizable hallmark after stores opened in Milan and New York. Guccio Gucci passed away leaving the company to his sons Aldo, Vasco, Ugo and Rodolfo.
1930
International clientele seeked the equestrianinspired collection of leather accessories.
1921
Guccio Gucci opened a leather goods company in Florence inspired by London.
8
1940
Due to a shortage of supplies during the dictatorship in Italy, they experimented with other luxury materials. This led to the creation of the iconic Bamboo Bag inspired by a saddle’s shape.
1980
1960- 1970
Gucci created the world-known interlocking double G logo and continued its quest for global expansion.
2015 - NOW
2000
Gucci became a public limited company, Investcorp owned the majority of shares.
Marco Bizzarri, Gucci’s new CEO, appointed Alessandro Michele as the new Creative Director.
Gucci is named the most desirable luxury brand in the world.
1990
Tom Ford became creative director of Gucci and Domenico De Sole became the new CEO. Gucci became a fully public company and formed a strategic alliance with PinaultPrintempts- Redoute.
2010
Gucci created a worldwide eco-friendly program to reduce its impact on the environment and launched its first children’s collection.
Mission Statement To create a high- end pet accessories line for Gucci, that accurately represents their new aesthetic.
Brand matrix Gucci’s Identity
Current CEO, Marco Bizzari, and creative director, Alessandro Michele, have been working together to change the overall brand image. Michele’s collections present the new Gucci woman with a bookish, nerdy aesthetic, who embodied a new sense of quirky-cool and the androgynous man in diaphanous blouses and pussy bows. The direction might be new but the brands core values of quality and craftsmanship have stayed. Gucci’s identity has always been innovative and distinctive with its collections but they also work hard to be sustainable. In 2013 Gucci launched sunglasses made from Liquid Wood and recycled metal. This accessory is biodegradable and an alternative to plastic. They also collaborated with Safilo, an Italian eye-wear company, and introduced a certified recyclable packaging for Gucci eye-wear. This new packaging helped reduce CO2 emissions, a promise that the whole Kering group is committed to maintain. Gucci has also been part of the Rainforest Action Network (RAN) since 2010 which focuses on the protection of rainforests. They want to be an environmentally cautious brand that makes customers proud to wear the brand.
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“Fashion is not about products. Fashion is about an amazing idea that you tried and you either fall in love with the idea and you can’t resist to buy something. But you are buying the idea, you are not buying the object.” (Michele, 2016)
Sensual Enduring Contemporary Romantic Modern Luxurious
BRAND AS A PERSON
BRAND AS A PRODUCT Global Owned by Kering Public Trade Forbes World’s Valuable Brand #44 Brand Value: $12 Billion Brand Revenue: $4.3 Billion
BRAND AS A SYMBOL
BRAND AS AN ORGANIZATION
STRENGTHS
-Resilient Brand Equity, positioned 44th in Forbes worldwide influential brands. -Excellence in quality, very few companies can match Gucci’s standards in fashion. -Strong brand heritage, logo is recognized everywhere. -Successful collaborations, they have tried it all including automobiles. -Strong communication and marketing strategies.
WEAKNESSES
Swot analysis
-Lack of middle class exposure.
OPPORTUNITIES -Celebrity endorsement. -Continue global expansion in emerging markets. -Attract younger customer base.
THREATS
-Competitive luxury market. -Increasing availability of better quality knock off’s. -Constant victim of counterfeiting, a recognizable logo counterfeited in many different countries.
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TARGET MARKET Gucci’s current target customers are between the ages of 25 - 50. They look for products that are high quality and timeless in their closet. With a starting salary of 100K and no children, these customers have a large amount of disposable income which they mostly spend on high-end fashion and pampering their loved ones. They are on top of the latest trends and want to try everything first. Most of them are achievers and experiencers in the VALS segmentation.
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EVELYN PRICE
OLIVIA WELLS
AGE: 58
AGE: 33
EDUCATION DEGREE: MASTERS IN FINE
EDUCATION DEGREE: BACHELORS IN JOUR-
ARTS, PRATT INSTITUTE
NALISM, NEW YORK UNIVERSITY
OCCUPATION: INTERIOR DESIGNER
OCCUPATION: MAGAZINE EDITOR
INCOME: $243,000 ANNUALLY
INCOME: $176,000 ANNUALLY
HOMETOWN: BOSTON, MASSACHUSETTS
HOMETOWN: MANHATTAN, NYC
MARITAL STATUS: MARRIED
MARITAL STATUS: SINGLE
HOBBIES: PILATES, READING, PAINTING AND
HOBBIES: YOGA, AERO YOGA, SOCIAL
TRAVELING
EVENTS AND SHOPPING
VACATIONS: PARIS, MILAN
VACATIONS: SAO PAULO, CANCUN
WEEKEND GETAWAY: CAPE COD, MA
WEEKEND GETAWAY: THE HAMPTONS, NY
PERSONALITY: CHARISMATIC, ENERGETIC,
PERSONALITY: CONFIDENT, HARD-WORKING,
CREATIVE, PERFECTIONIST AND AN
INNOVATIVE AND ENJOYS PROBLEM- SOLV-
ACHIEVER
ING CHALLENGES
Competitors There are several luxury brands that currently have pet accessories in their collections. Some of the brands include Burberry and Alexander Wang, who did pet accessories for the first time this past year. Outside of the fashion industry there is Jonathan Adler who is only focusing on creating furniture for pets. Gucci’s biggest competitors in the luxury market are Louis Vuitton and Prada and they already offer these products. The price range vary according to the materials and designs used.
Founded in: 1854
Louis Vuitton Malletier, also known as Louis Vuitton or simply LV, is a French company founded in 1845. It is a part of the lvmh group who is also responsible for owning various wines and spirits, fashion and leather goods, perfumes and cosmetics and watched and jewelry. The brand was initially created for trunk and storage quickly turned into a successful fashion brand. The company has grown and adapted in an ever expanding market in order to succeed. They sell their products in personal boutiques and lease space in department stores that are catered to high- end customers. Louis Vuitton currently operates in over 50 countries and has more than 460 stores. In 2013, the brand was valued at around $28.4 billion, the United States contributing to $9.4 billion alone. It has been named the world’s most valuable luxury brand six years in a row.
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$2,690.00
$315 - $380
$380 - $440
Founded in: 1913
Prada S.p.A; better known as Prada, is an Italian luxury fashion house. It specialized in ready- to- wear fashion and leather goods. From shoes to travel accessories, Prada is known for it’s high quality and bold designs. It was founded in 1913 by Mario Prada in Milan, Italy. The company is part of the Prada Group who also owns Miu Miu, Church’s, Car Shoe and Marchesi 1824. The company struggled financially in the 1990’s due to spending a great deal of time acquiring and purchasing. In 2015 sales declined 8 percent and profit declined 27 percent to $377 million. This is the lowest profit they have seen in 5 years. Currently the company holds a $3.91 revenue stream and is implementing new strategies in order to increase their revenue.
24
$1,650.00
$300 - $370
$360 - 420
Market analysis
TOTAL NUMBER OF PETS IN THE U.S.
The pet industry reached an all- time high as it surpassed $60 Billion in 2015. According to the American Pet Products Association (APPA) it is estimated that it will reach $62.75 Billion this year. In their annual report, 79.7 millions of homes have pets, that is 65% of all U.S. households. Pet ownership decreased by 3% to the previous year, translating to 2.8 million less pets in the United States. However, the pet industry still broke records and is predicted to only keep growing as there is a rise in a huge mega- trend. Bob Vetere, President and CEO of APPA reported that “The pet humanization trend is alive and well and continues to drive growth at the premium end of the market, as millennials prepare to take the reins from the baby boomer generation; the primary demographic of pet owners, they stand to further develop this trend.” In 2014, Wakefield Research conducted a study that proved that 76% of millennials are more likely to spend on their pets than for themselves. In this same survey, millennials turned out to be more than twice likely than Baby Boomers to buy expensive clothing and accessories for their pets due to the prevalence of social media. In a survey that Mintel conducted, three- fourths of Americans in their 30’s have dogs, while 51 percent have cats. The study proved that millennials are delaying parenthood and demanding flexible work arrangements which lead to the higher rates of pet expenditures. 26
top industry trends with an evergrowing demand, entrepreneurs are bringing constant innovation. 2. high- income pet owners- high income are estimated to make 60% of all spending in the pets sector. 3. needs of aging pets- 40% of pet owners care for elderly pets who have unique needs. 4. Rise of e-commerce- The rise in e-commerce for pet products, especially pet medications 5. pets as children- people’s perception of pets have shifted from man’s best friend to man’s surrogate child.
1. pet industry entrepreneurs-
Sales by category food vet care supplies pet services live animal purchases
$23.05 billion $15.42 billion $14.28 billion $5.41 billion $2.12 billion
opportunity analysis Gucci is currently on top of the luxury market. With Alessandro’s meticulous eye for detail and their continuous high quality products, there is nothing in the market quite like it. Gucci’s products are constantly evolving and adapting to the fast-paced needs of the luxury market. The pet industry is growing at an incredibly rapid rate and is only estimated to get bigger under the reins of millennials. The brand extension being proposed is a high- end pet accesory line. Gucci has all of the necessary tools to succeed in this area and it can be a part of this niche market that top competitors are already in. With the peak in the pet industry and the spotlight on the brand, Gucci can definitely succeed in this area. Gucci’s followers are the ideal customers for these new items. Alessandro Michele is known in the industry for taking his two Boston Terriers, Bosco and Orso, to work. Gucci has always been pet friendly, offering treats and water in every location. It is the perfect time to launch this product. Statistics and market trends prove that people are not afraid to spend money on their pets. This is partially due to the fact that people are actively posting on social media, exposing lifestyles. With Gucci being a luxurious lifestyle brand this category will allow the brand to offer a larger range in products to customers and expand in a new customer base. Pet owners want to indulge with accessories that fit their lifestyle. These customers are also to look to get their money’s worth which is why Gucci has to maintain its premium quality.
Alessandro Michele has brought Gucci back to life and millennials are infatuated by it. In, 1953 Aldo Gucci created the Gucci loafer. It was a popular choice among jet setters because of the horsebit detailing. In 2015, Michele decided to take a new approach on this old product. He decided to make it backless and add lined in kangaroo fur, these two simple changes revived the shoe. Pet accessories were discontinued a few years ago, but just like the loafers, if you take a modern approach on an old product it can become successful again.
NEW PRODUCT CATEGORY This high- end line designed for pets was inspired by the approach Alessandro Michele has been giving in Gucci’s previous collections. These accessories are made to accompany you and your pet, through your journey through life. These pieces are the perfect excuse to take your dog everywhere. Gucci discontinued pet accessories in 2014 under the creative direction of Frida Giannini. During this time Gucci offered leashes, collars and pet carriers. Alessandro Michele is pursuing a new direction for Gucci, this new line of pet accessories is a great opportunity for the company to take a different approach on an old product. Gucci is recognized world-wide for it’s wide merchandise assortment, specially there leather goods which make up for more than half of their total revenue. The brand has a loyal customer base, which means that they will buy every product category that Gucci has to offer. The pet industry will only continue to expand, giving Gucci a chance to capture a part of this market. 31
food and water bowls
Pet carriers
$3,200.00 32
$2,800.00
$140
$120
collars
$390- $430
leashes
$390- $430
$400 - $440
$380 - $420
packaging Gucci recently changed it’s traditional brown bag’s and boxes, for a more clean, black and white packaging. This is just another thing to add onto the list of the recent changes Gucci has done to the company. Since this product line will be sold exclusively online, packaging is extremely important. As a leading luxury brand, the product must be presented the same as if it was just picked up straight from the store.
logo
The packaging for Gucci’s Poochies products will be a different box designed specially for the dog collection. The traditional white box comes with a black border, this will be taken away in order to emphasize “Gucci’s Poochies” letter-pressed logo. The ribbon will always be substituted from the traditional Gucci ribbon to one that has small white bones stitched. The items will be wrapped delicately with tissue paper, so that they are arrive safely to their new homes.
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marketing strategy Gucci’s digital marketing strategies have been landing them a lot of publicity. In a study conducted by Bomoda, Gucci is the most influential fashion brand on social media. In July, the Italian brand released a video project called “#24HourAce” on their Snapchat and Instagram accounts. The project asked participating artists from all around the world to make a short film, featuring the Ace tennis shoes. The shoes will be sold online exclusively and customers will not be allowed to pre- order. Gucci will first launch a teaser in all social media platforms, announcing a brand extension. After this, Gucci will select four fashion bloggers who share the spotlight with their pets which are also celebrities on social media. By doing this, Gucci will not only be reaching fashion enthusiasts but also animal lovers. Gucci will have a party to launch the product in the 5th Avenue store. In order to gain more media coverage, Gucci’s marketing team will be in charge of promoting this new pet collection on Facebook, Instagram, Twitter and also through the Gucci official website. 39
mock campaign
Danielle Bernstein - French Bulldog, Bleecker Kimberly Pesch - Australian Shepard, Lola Peony Lim - Choo Hound, Mila Grasie Mercedes - Chihuahua Mix, Hayden
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Instagram:
Facebook:
Gucci’s Poochies marketing strategy for Instagram is to create commotion. We will collaborate with four chosen, influential, fashion and lifestyle bloggers that own dogs. They will be given Gucci’s Poochies merchandise before Gucci officially announces the brand extension. The bloggers can’t confirm or deny the brand extension, leaving the users in a state of confusion and excitement. Gucci will later go public with Gucci’s Poochies on Instagram confirming the brand extension, this will be near the launch party so we can also provide footage of that on the social media account.
In order for our marketing strategy to be cohesive the same strategy must be used across all social media platforms. The selected bloggers will also post pictures on Facebook with their items to create excitement all across the internet. The official Gucci page will be posting certain advertisements that contain more dogs in the images. Gucci will confirm the brand extension until after the official launch event.
Website: Products will be promoted on the website landing page.
Twitter:
Our marketing strategy for Twitter will be more towards the art direction. Bloggers can still tweet out pictures they take but the Gucci Twitter page will focus on artists. Releasing photographs each day a week before the launch. These photographs will be taken by Petra Collins and the subject will be artist and their pets.
Pinterest: ONLINE EXCLUSIVE
Pinterest will maintain a very silent social media presence prior to the launch. Once Gucci’s Poochies is introduced to the public it will begin to make noise. Two exclusive Pinterest boards will be released the day of the product announcement and the links to them will be provided on Instagram and twitter as a link in the biography. The images will be the first images Gucci officially releases of the products shot for advertisement and lifestyle.
YouTube:
Gucci’s YouTube channel will remain silent until the launch of Gucci’s Poochies. Advertisements will be released the day of the launch. Also a short experimental film written by Gaetano Donizetti, who has collaborated with Gucci recently, will also be released the same day. The film will revolve around dogs and the new products launched. The link will be provided in the biography section of Instagram and Twitter.
Tumblr:
Our marketing strategy for Tumblr will be also post launch of Gucci’s Poochies. Gucci’s Tumblr features models and what they are wearing so for Gucci’s Poochies the post will be similar. The post will feature dogs as models. The information below each picture will have the name and description of what they are wearing.
Email:
Our email marketing strategy will be very simple, there will be an email sent out prior to the launch of Gucci’s Poochies letting subscribed customers know there’s something new coming to Gucci and that more information is on the way. The day of the launch they will receive the email explaining the new 45 product and social media links where they can learn more about Gucci’s Poochies.
launch event
The Italian fashion brand Gucci is hosting a private event to introduce and celebrate the launch of Gucci’s Poochies. The event will be hosted in its NEW YORK FIFTH AVENUE STORE and the guest list is very exclusive but not limited to humans.
The Invitation The guests will be sent out invitations and to those who are dog owners the invitations will be addressed to their pooches since they are more than welcome at the event.
The Location To honor the concept of the event, the guests will arrive and walk a grass carpet where they will be photographed before entering the iconic Gucci Fifth Avenue store.
The Entertainment The store will be temporarily redesigned to feature Gucci’s Poochies products. The inside of the store will resemble a luxurious dog park, with plenty of activities for the four legged guests. Human guests will be provided with drinks and entrée inspired by canine activities and products.
Social Media Exposure
To expand our social media presence, we have come up with six Gucci exclusive Snapchat geofilters that are exclusive to the location of the event. Three of those filters will only work inside of the store, where the event is taking place.
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PROMOTIONAL PLAN
49
6-month sales forecast
50
As consumers are more than willing to spend money on their pets, the current booming state of the pet industry is a great opportunity for Gucci to capitalize on the existing high consumer demand, and capture their market share. By conveying their brand excellence and expertise into the pets world and creating an elegant and extraordinarily sophisticated line of luxury pet accessories, Gucci will be able to improve their market position even further.
works cited http://media.americanpetproducts.org/press.php?include=146062 http://www.prnewswire.com/news-releases/packaged-facts-keytrends-shaping-the-us-pet-industry-300028033.html http://blogpaws.com/executive-blog/2016-trends-in-the-pet-industry/ http://www.smallbizlabs.com/pet-trends/ FABIOLA MIRO FASM 430
http://store.mintel.com/americas-pet-owners-us-august-2016 https://www.washingtonpost.com/news/business/wp/2016/09/13/ millennials-are-picking-pets-over-people/ http://www.americanpetproducts.org/press_industrytrends.asp http://www.vogue.com/13442036/alessandro-michele-gucci-statistics/ http://www.allure.com/story/gucci-top-social-media-brand https://www.facebook.com/GUCCI