Gucci is an Italian luxury brand of fashion and leather goods. Gucci was founded by Guccio Gucci in Florence in 1921. Gucci is one of the world’s most successful manufacturers of high-end leather goods, clothing, and other types of fashion products
Gucci primary target audience are celebrities, wealthy people, fashionistas and upper class but has expanded to middle and upper-middle class woman. Gucci’s range of customers are both male and female age between 20-50. Gucci have recently added a new target market which includes children’s collection.
Gucci has an estimate of 270 directly operated stores worldwide as of September 2009. In the year 2013, the brand was valued at about 12.1 billion US dollars with sales of 4.7 billion dollars. In the Forbes World’s Most Valuable Brand list, Gucci is ranked the 38th most valuable brand. The brand value itself weights about a whopping 12.4 billion as of May 2015.
Those who sell same or similar products and services usually face some sort of competition. Apart from competition of price, there are like product differentiation. For example, Gucci main competitors are companies like PRADA,LUIS VUITION ,Hermes and other high end product. Therefore, it is necessary to build an efficient system of marketing. This will bring confidence and better results.
For example the consumer wants to purchase a sneaker or a bag, the question that will come to a consumer mind is the amount of money he can afford to spend on a product so that he can stick to his budget and save some money as well.
The price of Gucci’s item are usually quite overpriced due to the material Gucci uses to make their product. However Gucci is able to think in a consumer point of view which helps them to better understand the consumer’s needs and in turn enable them to continue their market for such a long time as they are able to meet the consumer demands.
Another problem is that Gucci also face losses due to cheap fake imitations of the brand worldwide. Such cases are inevitable as other Company like PRADA,LUIS VUITION and other high end product also face similar cases.
Therefore, Gucci is unable gain as much profit as they supposed which makes the company suffer.
The economic environment can impact both the organization’s product and the consumer’s decision making process.
One of the most basic economic problem is Scarcity. It is possible that an economy can run into scarcity because resources are limited but in a society with unlimited wants, the chance of facing scarcity is very high. Resources have to efficiently be allocated in order to not face a problem like scarcity.
Therefore, if the economy is facing such problem, Gucci is unable to produce anything as most of their products material are leather. Real leather is made from animal skin, more commonly cow hide. Although leather can also be obtained from goat, buffalo and snakes, most leather product uses leather from cow.
As cow is a source of food, more than 29 million cows die in the meat and diary industries every year.
As years goes by, our resources would be more and more limited.
Thus, economic factors is the most relevant on its impact to current or future business.
Recommend a Consumer Sales Promotion program to mark the product
Gucci promotes its product by projecting an aura of elitism and luxury. It has a collection of visually rich imagery on their website.
Gucci product has also been worn by a number of highly successful artist in their most successful performances. Some example of such performances includes Lady Gaga rendition of the National Anthem at the 2016 Super Bowl. She wore a glittery red Gucci suit pants.
Gucci also had other noteworthy collaboration with Beyonce in her famous video “Formation” The video featured Beyonce and other female dancers in similar custom-made Gucci crop tops, leggings and high-waist booty shorts
These celebrity collaborations shows Gucci’s dedication to be part of a popular culture. By including the brand in popular culture, Gucci is able to expand its appeal beyond to the industry’s fashionistas and into the world of average consumers.
Gucci also uses other promotion method such as promoting their product on online shopping website such as FARFETCH, Amazon, EBAY and ETC… to increase the sales by selling their product at a relatively cheaper price compared to buying from their outlet or official website.
Gucci also collaborated with other marketing companies such as Adidas, Supreme, Champion and ETC… this way both company benefit from the sales made through the collaborated product. These products attracts a lot of attention as it is usually a limited edition product and in the point of a consumer views, consumers would much rather prefer getting a limited edition product than a common product. The reason for this is because a limited edition product would stand out way more.
In conclusion, Gucci product is mainly targeted towards the wealthy or the middle class people as the cost of their products can be quite shocking for some people.
Gucci can change their marketing strategy by having a promotion sales as it would definitely attracted more consumers to buy their product. Such as having a 10% sale or 20% sale as this kind of sale, even though 10-20% may not look a lot but in reality it definitely helps to reduce the price of the product which makes it more affordable for other people which helps to widen their range of customers from the wealthy to even the middle-lower class people.
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