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.
...(download the rest of the essay above)