Paulina Glombica
FASHION MARKETING AND BRANDING GUCCI BRAND REPORT
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Content
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1. Executive summary 2. About Gucci 3. Target audience 4. Brand identity 5. Brand positioning -USP -ESP -Marketing Mix- 4 P’s 6. SWOT 7. Communication mix 8. Gucci eqilibrium 9. Reccomendation 3
EXECUTIVE SUMMARY
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This brand report includes history research as well as marketing analisys. Key points of focus are brand identity, brand positioning, target audience and communication mix. Each of these fields is then expanded into more specific topics such as unique and emotional selling points, 4 P’s and SWOT analysis. Finally, after full analysis, this report provides reccomendations which would either help to maintain a current position or even extend the brand to a wider market. The methodology that is used within this report includes primary research collected by myself and secondary research made up of magazine articles, books and blogs.
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uccio Gucci who founded the brand, was born in 1881. In teenage years he travelled a lot to places like Paris and London where he worked as waiter. In that time, he noticed a beautiful luggage that made an impression on him. Guccio came back to Florence and established first shop in 1921 where he sold leather goods. The company was expanded to Rome and Milan with help of his three sons. 1953 was a year of Guccio’s death. However, in the same year his sons opened a first store overseas. The company popularity took off. (Tungate, 2015; Mower, 2006) One of Guccio’s sons, Aldo designed a logo inspired by his father initials. The “double G” is considered as one of the most recognizable fashion logos in the world. It became familiar to people as it was added to bags and other leather goods. However, overexpansion of licens- signer. His style was something coming agreements in 1980’s caused a pletely different to what we see now at Gucci’s. His designs were sexual, temporary downfall. glamour and slick. According to Tungate (2004), Ford redesigned every aspect of the brand. Maurizio Gucci (last family member who run the company) thought that Ford was too fashion focused for a brand like Gucci.
ABOUT THE BRAND
Luckily, Dawn Mello, retail executive, rescinded many of the licensing deals. (Fogg and Steele, 2013) In 1990 Tom Ford was appointed by Dawn Mello as a womenswear de-
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Later on, Dominico De Sole became brand’s CEO. With time, Ford became a creative director of the brand. One year later, Maurizio Gucci was mysteriously murdered. However, the brand itself became very successful
During the time of Tom Ford and Domenico De Sole, LVMH (luxury conglomerate) wanted to take over Gucci by buying majority of shares. Happily, for Ford and De Sole, who did not like the idea of being un-
at that time, it was valued about $4 billion (Polan and Tredre, 2009).
der LVMH conglomerate, Francois Pinault bought 40% of the Gucci’s shares. They manage to create Gucci Group that became a rival to LVMH. Gucci group bought Yves Saint Laurent and Bottega Veneta.
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Since then, Gucci is a part of a luxury, fashion conglomerate Kering (Tungate, 2005). In 2004, Ford and De Sole left the company. Next creative director, Frida Gianni, women’s ready-to-wear and accessories director was appointed in 2005 and a year later was promoted to the position of creative director for the entire Gucci label. De Sola was replaced by Patrizio di Marco, a new CEO of the brand. Both Giannni and Marc stepped down in 2014 and later on, Marco Bizzarri became a new CEO of the brand. Currently, Gucci is under vision of Allesandro Michele, who has rejuvenated the image of the brand. Gucci has become a worldwide known brand, its profits has increased since Michelle was appointed as a new creative director. In 2017, Gucci’s sales went up about 44% (Fashionista, 2017)
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TARGET AUDIENCE
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ucci’s target audience: both male and female, age 20-50, upper-middle to high class. Those customers want to feel sophisticated, beautiful and elegant. They look for a modern elegance and luxury, so they are able to invest in fashion. 8
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Even young, fashion aware people without high income try to save money to own a Gucci product. Individualistic and unconventional souls that want to explore the world and show who they are. They are beyond stereotypes and any human classification. Gucci also expanded the audience by adding children line to the brand. 9
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Gucci products may be used in a variety of styles and outfits. Accessories like small bags or belts might be used as a complement of smart or casual outfit. It is a perfect idea for people who want to add a luxury feeling to their outfit. However, bold and graphic pieces create outstanding and modern outfits for extraordinary individuals.
MASLOW'S HIERARCHY OF NEEDS
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Gucci’s target customers have reached self-fulfilment at the top of Maslow’s Hierarchy of Needs by satisfying all the levels beneath, and purchase products for pleasure, to express freedom and an individual style. High fashion goods make them feel the proud of ability to afford the luxury products. Those people are usually well educated.
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Brand identity ‘The brand’s identity is its fundamental means of consumer recognition and symbolizes the brand’s differentiation from competitors’ (Posner, 2011)
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Brand's name comes from its founder. Logo Gucci’s customers can be sure that their was designed by Guccio Gucci’s son and is luxury clothes and leather goods do not made of two interlocked G’s. The logo is come from sweatshop in China or Bangoften seen with ladesh but from Italy. brand’s name Great quality leads to a above the douheavy demand, as cusble G's and is tomers know their luxused as a print ury products will last a on clothes, as long time. (The Busiwell as part of ness of Fashion, 2015) accessories. The Gucci’s brand identity often use of is strong and it is clearthe logo made ly visible throug high it recognizable quallity products, Itialwordlwide. ian craftsmanship and Gucci’s producbold designs. By looktion is based in ing at the brand you see Italy. Nowaa strong personality, days, customers modernity, romantisism care more about and eclectism combined the background together. of their product so the “Made in Italy” label has become a marketing statement.
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‘Brand positioning-
this is both the strategic management of a brand’s position relative to competitors in the market as well as the perception of the brand’s position in the mind of consumers.’ (Posner, 2011) 14
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Gucci is positioned as a luxury, sophisticated and modern brand. Main competitors are Prada, Dior, Versace and Balenciaga. Brand needs to biuld a distinctive image in order to defeat its competitors. Gucci brand has been ranked 36th in Forbes list of ‘The world’s most valuable brands 2018 ranking’. Estimated brand value amount to $14.9 billion (Forbes, 2018). Gucci has a wide range of products in its offer. Clothing, bags and shoes are just the beggining. Big choice of makeup products (e.g lipsticks, eyeshodows and nail polishes), fragrances as well as home products such as mugs, cushions and wallpapers are available for Gucci lovers.
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USP
ESP
‘USP iS a marketing tool that is used to emphasize specific points of difference that make a brand unique and distinctive in the market place’ (Posner, 2011).
In purpose of this report I visited a Gucci store in Birmingham, located on a top floor amongst other high-end brands. Window display of the Gucci’s concession attracted my attention from the very beggining. Flowerish wallpaper, pink floor and pink, vintage chairs were a perfect background for Gucci’s products. 3 chairs, 3 hand bags and 3 pairs of shoes. A few tables with bags on top, three chairs to sit and try on shoes created a homely feeling. More products were dispayled on the walls. Surprisingly, at the time I was inside, 3 shop assistants were working, although it was not busy. Clothing were displayed outside the concession on clothing rails. The place itself encouraged to come in, however, the store assisntants did not seem friendly. After asking for more information about the brand, I was told to e-mail the head office of Gucci, which was not helpful. On the men’s floor I also found a Gucci clothes on rails. The choice was satisfactory.
The most distinctive and important feature of Gucci is the ‘Made in italy’ label, as it provides high quality products and attracts customers. The iconic logo hasn’t changed for 97 years and is recoginzable all over the world. Curretnly, Gucci has an unique signature style that can be easily assigned to the brand. However, the brand hasn’t been the same for 97 years. While Tom Ford’s creative directing, Gucci was an essence of sexy and sleek women and men. Now, the signature style of Gucci is colorful and wacky.
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MARKETING MIX ‘The concept of the marketing mix is that several strategic ingridients need to be considered and blended effectively to achieve rhe marketing mix were first shaped company. In 1960s E.Jerome McCarthy retionalized it in four variables- product, price, place and promotion’ (Posner, 2011)
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PRICE Gucci is a luxury, high end brand with high prices, because of the products’ quality. Customers eager to pay more for a durable product from a luxury brand. Gucci, as well as other high-end brands, does not do sales or lower the prices. In order to keep the brand’s position and a luxury feeling the prices maintain the same or go higher. The prices of the products can be found online, on official Gucci’s website.
PLACE Gucci has over 500 stores worldwide and concessions in department stores such as Selfridges and Halvey Nichols. Products are also available online on Gucci website and other online boutiques.
PROMOTION
Different advertising tools are used to promote the brand including traditional and digital marketing. That will be disscused in a further part of this analysis. The combination of promotional activities, such as advertising, sales promoPRODUCT tion, public relations, personal selling or As mentioned before, Gucci offers a sponsorship is known as the promotional mix. wide range of products. Womenswear, menswear, bags, shoes, accesories and even childreswear recently added to the brand, attract variety of customers. Introducing so many lines can guarantee that more people will find a product of their interest. All the products introduced by the brand are up to day so it makes them desirable by fashion concious clients. Most of the products are designed with a Gucci’s logo, which is a great marketing tool as each product 19 clearly promotes the brand.
SWOT ANALYSYS
an analysis of the company’s strengths and weaknesses of the brand, opportunities and threats in the marketplace’ (Bickle, 2011)
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Strengths:
Strong brand identity Production based in Italy (high quality products) Up to date products Known worldwide Great advertising and marketing Fur free (since summer/spring 2018)
Weaknesses
1. Growing popularity of cheap copycats (might be hard to tell a difference between a real product and a copycat) 2. Investing huge amount of money into advertising 3. Use of real leather (no substitut in offer)
Oppurtunities
1. Stop (or minimizing) using real leather by developing a great quality faux leather 2. Going more into sustainable fashion 3. Adding new product lines (e.g. lingerie)
Threats
1. Beaten by its competitors 2. Decreased demand for luxury goods 3. Grownth of small, independet brands with high quality products 4. Financial crisis, people not able to affod luxury products 5. Allesandro Michele’s profesional burnt-off, not able to design modern products 6. Growing awernees about real leather industry 7. Easy acces to Gucci’s copycats 21
SOCIAL
MEDIAS
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COMMUNICATION MIX Refers to specific methods used to promote the company or its products to target customers. If a brand wants to reach a customer and attract their attention, it needs to be present in all medias. In order to reach a young generation of customers, Gucci brand needs to be present on all social medias. At this moment, Gucci’s Instagram is followed by 29.2 million people which is more than the brand’s competitors such as: Louis Vuitton (27.7million), Prada (17.2million), Dolce & Gabbana (18.7million), Dior (21.9million) and Versace (14.7million). This shows how many people are interested in the company. Instagram is a perfect way to show not only the newest products, but also to connect with the audience, have a dialogue. A brand can easily show its style and potential customer can relate to it. Gucci Instagram is updated every day, usually with 2-3 new photos. Gucci also introduced a Gucci Beauty Instagram account. However, it is not as popular as the main account. On Facebook, Gucci fan page has over 17 million likes, with very similar (sometimes the same posts) as on Instagram. Gucci’s YouTube is subscribed by over 280 thousand people, it allows the audience to watch new, as well as old fashion shows and campaigns.
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Recently, paid advertisements have gained huge popularity. A brand pays a specific amount so that its posts come up on everyone’s home page. That way, the brand gains more and more customers. This is something that Gucci does on Instagram and Facebook, but also on YouTube.
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A lot of advertisement can be found in fashion magazines such as Vogue. Despite growing popularity of social medias, the traditional paper magazines are still important. Especially for people interested in fashion, who want to know about newest trends. It is still important and should be one of the main points of focus while thinking about branding and marketing. Gucci’s website is aesthetic and easy to use. Big advantage of the brand is shopping online on the official website, because not every brand has such an option. On the website, individual can sign up for a newsletter in order to receive e-mails with access to newest collections, updates and events.
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GUCCI GARDEN
Gucci Garden, Florence in Palazzo della Mercanzia opened in January 2018, conceived by Alessandro Michele. Gucci garden includes a boutique, Gucci Osteria (restaurant) and exhibition space. That place allows customers to feel the real style of Gucci, but it also allows Gucci to gain new, potential customers. It works both ways, customers who come in, are surrounded by luxury and feel the need to buy something in order to keep that feeling for longer.
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Gucci Garden, Florence in Palazzo della Mercanzia opened in January 2018, conceived by Alessandro Michele. Gucci garden includes a boutique, Gucci Osteria (restaurant) and exhibition space. That place allows customers to feel the real style of Gucci, but it also allows Gucci to gain new, potential customers. It works both ways, customers who come in, are surrounded by luxury, they feel special and feel the need to buy something in order to keep the feeling of luxury for longer. In order to reduce the emission of CO2 in transport department, Gucci increased the number of hybrid vehicles from 19 in 2015 to 52 in 2017.
In 2017, 100% of paper and cardboards used in packaging was FSC certified. FSC runs a global forest certification that Gucci has become a member of. It that allows to identify the wood, paper and other forest products from well-managed forests and/or recycled materials. Gucci signed ‘UN LGBT Business Conduct Standards’ that protects the right of LGBT people. Chime for Change is a global campaign founded by Gucci 36 in 2013. The aim of the project is to foster women empowerment via education, health and justice. It was co-founded by Salma Hayek-Pinault, Frida Giannini and Beyoncé Knowles-Carter. However, many other famous people enter the movement to support girls and women around the world. 27
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FUTURE
Gucci team already does a lot to keep the brand’s position on the market and attract new audience and potential customers. They use all the social medias, paid advetisments and many more in order to be seen by new people. However, there are a few fields they could improve.
Instagram Besides aestheticly pleasing and very ‘Gucci’ photographs that are shared on the account, the Gucci’s instagram is not distinctive. The captions are very common and do not distinguish from the brand’s competitors. What I would suggest is to add more communication between the brand and its customers. 1. A hashtag -introducing a hashtag #mygucci -introducing #mygucci Sunday Description: People add photographs of Gucci products they bought with #mygucci hashtag. On Sunday, Gucci team will choose 3 best posts and share them on the offical brand’s account and tag a person who took the photo. This way, the chosen person gains new followers as well as Gucci. This inniciative will also bond the audience and the brand together. 2. Instagram stories Instagram story is very popular at the moment. This option enables users to add a content which dissapears after 24 hours. However, it can be saved and grouped into specific themes so that audience can easily find what they are looking for. Description: Adding more content that has not been styled, (for example: short videos or photographs of photoshoot or show backstage) It would show a brand from a different perspective and let the audience see something new. 30
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RECCOMENDATIONS Facebook Gucci’s facebook is almost the same as Instagram. To separate those two medias, I came up with something different for Gucci’s facebook audience. -introducing ‘Inside the Gucci’ -one post a day from each sector at Gucci (example: post showing the designing procces or choosing fabrics for next collection) To show how the brand works everyday in order to release new products on the market./
In store improvements. The stores (as well as concesions) of highend brands are known from their luxury but also intimidating feeling. Sales assistants constatnly looking at the potential customer and general silence make the shopping experience not always as pleasing as we would like it to be. In order to change that, the following ideas could be introduced: -sales assisnants being more friendly, talkative, asking the customers about their day, engaging them to talk -while shopping, sales assisnant doing their work on the side, not looking at the customer all the time -checking if customer needs help from time to time
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FUTURE
Other initial ideas for raising the brand's popularity: -Collaborating with current, famous bloggers through sponsorship and gifting. Bloggers and any kind of online influencers are very powerful as they have a big impact on people who are up to date with social medias. Especially on people in ages 20-40. -Intoducing a substitute of real leather would gain new customers who do not want to support animal cruelty. Designing products in two versions: real leather and fake leather. -Adding photographs of Gucci's stores on social medias. Store's interiors (and concessions) always show the style of a brand. They are furnished in a very special way in order to give the customer feeling of luxury. Sharing it on social medias can raise awareness about where the stores are located
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REFERENCES 1. Posner, H. (2011). Marketing fashion. 1st ed. London: Laurence King Publishing. 2. Bickle, M. (2011). Fashion marketing. New York: Fairchild Books. 3. Polan, B. and Tredre, R. (2009). The great fashion designers. 1st ed. Oxford: Berg. 4. Tungate, M. (2005). Fashion Brands. 1st ed. London, GBR: Kogan Page, Limited. 5. Fogg, M. and Steele, V. (2013). Fashion. London: Thames & Hudson. 6. Mower, S. (2006). Gucci by Gucci. London: Thames & Hudson Ltd. 7. Forbes.com. (2018). The World's Most Valuable Brands. [online] Available at: https:// www.forbes.com/powerful-brands/list/#tab:rank [Accessed 5 Nov. 2018]. 8. Mau, D. and Mau, D. (2017). Gucci's Exponential Growth Spurt Continues. [online] Fashionista. Available at: https://fashionista.com/2017/10/gucci-revenue-sales-growth-q3-2017 [Accessed 5 Nov. 2018]. 9. Solca, L. (2015). The ‘Made In’ Dilemma: To Label, or Not to Label. [online] The Business of Fashion. Available at: https://www.businessoffashion.com/community/voices/discussions/ does-made-in-matter/the-made-in-dilemma-to-label-or-not-to-label [Accessed 5 Nov. 2018]. 10. Pithers, E. (2017). Gucci Announces It Will Be Going Fur-Free. [online] Vogue.co.uk. Available at: https://www.vogue.co.uk/gallery/gucci-announces-it-is-going-fur-free [Accessed 19 Nov. 2018]. 11. Gucci Equilibrium. (n.d.). Home - Gucci Equilibrium. [online] Available at: http:// equilibrium.gucci.com/?utm_medium=gucci.com&utm_source=gucci.com_us&utm_campaign=equilibrium_launch_june18&utm_content=stories [Accessed 19 Nov. 2018]. 12. Newbold, A. (2018). Gucci Furthers Its Commitment To Sustainability With Gucci Equilibrium. [online] Vogue.co.uk. Available at: https://www.vogue.co.uk/article/gucci-equilibrium [Accessed 19 Nov. 2018]. 13. Karmali, S. (2013). Beyoncé Leads New Gucci Empowerment Campaign. [online] Vogue.co.uk. Available at: https://www.vogue.co.uk/gallery/beyonce-knowles-salma-hayek-gucci-chime-for-change-campaign-frida-giannini [Accessed 19 Nov. 2018]. 14. Madsen, A. (2018). Alessandro Michele Opens His Gucci Garden In Florence. [online] Vogue.co.uk. Available at: https://www.vogue.co.uk/article/gucci-garden-alessandro-michele-florence [Accessed 19 Nov. 2018].
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IMAGE REFERENCES 1. https://pl.pinterest.com/pin/734297914221008556/ 2. https://pl.pinterest.com/pin/734297914221008594/ 3. http://www.catwalkyourself.com/fashion-biographies/guccio-gucci/ 4. https://eyeinform.wordpress.com/2011/11/22/guccio-gucci-a-man-behind-famous-gg-biography-and-label-history/ 5. https://www.wmagazine.com/story/alessandro-michele-the-new-romantic 6. https://www.luxuryandvintagemadrid.com/?currency=EUR 7. https://wwd.com/fashion-news/street-style/gallery/they-are-wearing-new-york-fashion-weekfall-10349595/#!42/new-york-fashion-week-street-style-522 8. https://www.whowhatwear.co.uk/milan-fashion-week-street-style-spring-summer-2018 9. https://www.whowhatwear.co.uk/gucci-belt-outfits--5a73626d8d551/slide3 10. https://www.whowhatwear.co.uk/gucci-outfits/slide8 11. https://pl.pinterest.com/pin/734297914221156097/ 12. https://www.tommyton.com/archive/gucci-cruise-2016.html#!/media/cruise2016gucci9 13. https://www.harpersbazaar.com.au/fashion/what-to-wear-winter-2018-australia-16703 14. https://www.whowhatwear.co.uk/celebrity-holiday-outfit-ideas 15. https://pl.pinterest.com/pin/734297914221102145/ 16. https://pl.pinterest.com/pin/734297914221008588/ 17. https://www.gucci.com/us/en/st/stories/article/agenda_2016_issue05_fall_winter_adv_campaign?utm_source=pinterest_us&utm_medium=social&utm_content=fw16_adv_campaign&utm_ campaign=FallWinter-2016-Jul-Oct 18. https://www.gucci.com/us/en/st/capsule/gg-marmont-collection?utm_source=pinterest_ us&utm_medium=social&utm_campaign=PreFall-2017-May-Jul&utm_content=bucket-bag-pin 19. https://pl.pinterest.com/pin/734297914221008501/ 20. https://pl.pinterest.com/pin/734297914221008519/ 21. https://pl.pinterest.com/pin/734297914221008541/ 22. https://pl.pinterest.com/pin/734297914221008539/ 23-27. Primary reseachPrimary research 28. https://www.gucci.com/us/en/st/stories/article/agenda_2016_issue05_fall_winter_adv_campaign?utm_source=pinterest_us&utm_medium=social&utm_content=fw16_adv_campaign&utm_ campaign=FallWinter-2016-Jul-Oct 29-34. Primary reseaech 35. https://www.gucci.com/us/en/st/stories/inspirations-and-codes/article/gucci_garden 36. http://equilibrium.gucci.com/ 37-45. Primary research 46. https://pl.pinterest.com/pin/734297914221008618/
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