GUCCI
Sarah Djabate Professor Young Fashion Marketing FASH 193-01
TABLE OF CONTENTS Executive summary Analysis of market environment SWOT analysis Market objectives Market strategies Market implementations Evaluation and control
Executive summary The research in this report will provide an insightful analysis of Gucci's marketing environment's current state. As Gucci is a leading brand in the industry, our consumer analysis shows that many young people buy Gucci products and drive the market. Ultimately, Gucci could use the research that we have done to improve their business, and our recommendations can certainly help them do that.
Gucci Farfetch.com
Gucci Farfetch.com
Gucci Farfetch.com
Gucci Farfetch.com
Gucci Farfetch.com
Gucci Farfetch.com
Microenvironment
Marketing Environment Analysis The microenvironmental factors include the suppliers of service/product, the company itself, the marketing intercessors, consumers, the competitors in the same business
The Company Gucci is a brand that offers a modern approach to fashion by aiming to be “eclectic, contemporary and romantic, through the representation of Italian craftsmanship,” as quoted through their official website. They offer high-quality products, as well as ensuring customer satisfaction and profitable growth. Guccio Gucci founded the luxury fashion brand G in 1920; the shop first opens up in 1921 on Via Vigna Nuova. As of today, the brand has become the most successful manufacturer of high-end clothes and leather goods. Gucci and known for its infamous double G sign, which Gucci didn’t create till 1950. This sign is now a Gucci trademark and is known all over the world.
Suppliers Gucci works closely with a small group of trusted manufacturers to ensure that environmental and social best practices are implemented in the supply chain. Several of these businesses have been supplying Gucci for two or three decades. Gucci owns and manages internal facilities and external facilities run by trusted vendors of theirs manufacturing supply chain. 95% of the suppliers are based in Italy.
Customer/Consumers The average Gucci's consumer is both men and women between the ages of 18 - 40 who are interested in high-quality, trendy clothing and accessories. Gucci's customers are from the upper-middle and upper-income social classes. Even those who can't afford them are saving up to get a Gucci item "bout 31 percent of consumers who earn between two and three thousand dollars per month owning a Gucci item." ( Sabanoglu,2021)
Competitors The luxury high-end market competitor list is vast. Gucci’s main competitors are Balenciaga, Louis Vuitton, Prada, Versace, Dolce and Gabbana, Burberry, and Fendi. With these competitors, in 2019, Gucci managed to be recognized as the most valued brand since 2000. Gucci understands what works while some of its competitors are still experimenting. For example, Gucci uses its GG logo on most bags and clothes.
Macroenvironment – Economic forces, natural forces, technological forces, social/cultural forces, political/legal forces.
Political The political ' relationships across all the country have to be taken into account. The political factors range from changes and sudden regiments to political among significant decisions taken by the government. For example, charging higher prices for the perks of Gucci comes with higher taxation.
Social Social activism is significant within Gucci's target market. They can improve on this and study more on being more socially aware because Gucci has caught in many controversial topics and issues. Besides these factors, the social awareness rise in the country has changed to a brand perspective, and the target is the customer.
Economic The economic factor would focus more upon the purchasing power of the consumer. Gucci has faced a couple of challenges in the market, being that their prices are high; however, Gucci's positive contribution to the economy has continued to allow them to grow.
Technology We now live in a technical world technology has made it easy for the market to receive coverage and the ability for brands to reach their target customers. For example, Gucci has expanded its reach by bringing awareness and marketing its products on various online portals such as YouTube, Facebook, Twitter, and Instagram. This has helped them launch an app to access the products all from their phones easily.
Environment Environmental is strictly abode by the law and regulation provides the customer with the unique products. This includes fair market treatment and providing the employee with proper care.
SWOT Analysis
SWOT stands for strength, weakness, opportunities, and threats. Gucci's SWOT review examines the brand's strengths, shortcomings, opportunities, and risks. The internal factors in a Gucci SWOT Analysis are strengths and weaknesses, while the external factors are opportunities and threats.
Strengths High-quality products Great brand image; Gucci is known for its memorable logo Strong social media presence
Opportunities Emerging into the international market A lower inflation rate brings stability to the market Target the youth because they are more brand conscious than ever
Weaknesses Over Sexualization in Advertising Fake replicas. Gucci deals with a lot of counterfeiting due to their high prices. They are investing a lot of money to maintain their brand image.
Threats Being a global brand, Gucci is vulnerable to global price fluctuations. Economic depression Other luxury brands like Prada, Dior, Balenciaga, and other
MARKETING OBJECTIVE
The Goals Implement more social relationships with the consumers With more great fabric, the demand of supply will increase in which Gucci will be able to gain more money and people will be happy with their product. Issues that people complained about being racist has resulted in some consumers wanting to boycott the brand creating a more socially aware brand can change that
product p Gucci products are high-quality, ranging from clothing, shoes, leather goods, and fragrances; all these products embody Gucci's brand identity. It is elegant yet sexy and still manages to reflect the Italian heritage, for both males and females are the T-shirt and hoodie, which features their signature double GG logo.
Place There are over 500 Gucci stores worldwide; they also have an official website and stores apps consumers can use. Their website is a successful platform that reflects their brand identity. It is aesthetically pleasing and colorful throughout the site, bringing the infamous store's vision online. The luxury e-commerce website, such as Net-A Proctor and FarFetch, is in online stores for luxury items. These sites provide consumers with available luxury brands, such as Alexander McQueen, Christian Louboutin, Gucci, Jimmy Choo, Balenciaga Valentino, and many more.
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Price Since Gucci is a high-end luxury brand, its products are marked at a premium price range. Nonetheless, consumers are happy to pay these high prices as Gucci produces high-quality goods. Gucci also doesn't now two cells or lower the costs to keep the brand position and luxury feeling the price maintains the same or go higher.
Promotion Various advertising tools promote the brand, including traditional and digital marketing, including promotional ads such as advertisement, editorial, social media, and sponsorship.
Marketing Implementation
Social media is thriving right now. These social media platforms are the best way to reach your desired target market. Instagram TickTock and YouTube are the most engaging. It is the perfect and will spend time on their page. Gucci already has a solid social media fallout way to show the newest product and connect with the audience and build its relationship. Gucci's target marketing is young. People will be investing in their media on their Instagram and the updated weekly with products and campaigns. They even have their Instagram set up to allow consumers to purchase items directly from their Instagram while also linking the product to their website.
Along with Instagram, many people now understand the power of promotion across all social media platforms. This includes influencers and celebrities. Collaborating with current famous bloggers to sponsor can help Gucci reach their target market, especially those in the age range of 20 to 40. Online influences are powerful as though they have the most significant impact on people who are up to date with social media.
when customers register, they become Gucci members, and they also create a membership by email, which allows customers to accumulate points as they shop throughout the season. They will receive promotions about products to come in the new season via email, another excellent marketing approach. This also includes paid advertisement on everyone's social media homepage
Since our goal is to increase Gucci's social media and social media engagement, you can manage this buying by looking at the percentage rates of their engagement and follower rate. Although we know Gucci does not offer discount prices, they can receive their target audience by allowing and doing a giveaway with influencers and bloggers they collaborate to reach out to their target audience. These looks that I have selected can be a feature used and send to bloggers and celebrities. They can do different lookbooks to give consumers ideas on how to style their Gucci product.
As Gucci's social media increases, so will their sales using social media to increase and reach their target market. Gucci will build a better relationship with their consumers, causing them to be more loyal and dedicated to the brand.
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