Gucci Strategic Analysis

This expansion demonstrates how the luxury industry is now run by massive corporations whose focus is only on growth, visibility, brand awareness, advertising, and most importantly, PROFITS! With growth and expansion, has come a decrease in quality and rarity. The luxury garments produced are mostly not handmade but are even outsourced to large factories in places such as China and Turkey. Also, to meet quarterly turnover projections, “designers churn(ed) out increasingly trendy collections of clothes, handbags, and shoes.” (Thomas, Pg. 246) With hundreds of new stores around the globe the surplus of designer labeled merchandise is immense hence, the proliferation of outlet malls.

Gucci, a brand known for its quality, luxurious and royal association was confronted with strategic issues which made the company take notice of its strategy of expansion and brand personality. The company was not only having concerns with their product line but they were lacking unified corporate vision and strategy after its acquisition of some major names like YSL. Due to which they started having loophole in their luxurious goods market discipline. Strategic concern for the company was how does the brand image cascade down in the target market and how does it rejuvenate itself is a management lesson.

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

Louis Vuitton started off as a trunk maker in the 1800s for traveling as at this point in history traveling was considered a luxury that the rich had. Vuitton founded his brand in 1854 but it was after he died in 1894 that his son Georges took over and really expanded the brand and made it what it is today. In fact, Georges was the one who created the classic Louis Vuitton monogram with the LVs in order to prevent counterfeiting. This brand was really popular during this time era as it was one of the first luxury brands to be founded that would later lead up to other famous designers later in the 1900s. Another very famous brand from this time era is Hermès that was founded by Thierry Hermès. This brand was originally for horse riding gear but then became a handbag luxury brand. ¨Thierry Hermes started handcrafting horse harnesses for caliches and carriages in 1837¨(Said 1). This brand nowadays is known for its ridiculously high prices and it is infamous for its Birkin & Kelly bags that can cost anywhere from $10,000 to a ridiculous $200,000. These are two examples of two luxury brands founded in the Victorian Era that we know of

The Tiffany & Company is introducing a new product line by the name of Tiffany 's Essentials. The line will offer authentic luxury designer handbags along the lines of Gucci, Chloe, Dior, Fendi, Prada and many more. As concept of luxury changes, marketers of high-end products are wrestling with the challenges of maintaining exclusivity while obtaining higher sales. Having a well-known name as Tiffany and Company we have no limitations to create luxury pieces for the luxury lifestyles. The following paper will emphasize our product, our target market and our marketing objectives as to how we will market our handbag using a vital marketing mix. It will also provide our major competition in both the diamond industry as well

As Prada is a global brand, it faces many market risk like economic conditions, recession etc.

Gucci has a lot of competitors in the luxury market where each one provides unique items but the competency between them is high as there is always the chance of the threat of new entrants. 


























Pestle

Coach Inc. operates in the luxury goods industry where it sells high quality leather handbags, accessories, and other leather products. The scopes of the products within this market are rated high in their “quality, style, and value” (Gamble, 2015, C-71). These qualities of the luxury goods are rare, desirable, hard to replicate, and have strong brand reputation. Firms within this market choose to compete geographically in countries North America, Europe, and more recently Asia. Within the luxury goods market there are three sub-categories: haute couture, traditional luxury, and accessible luxury. When Krakoff joined Coach in 1996 he implemented a successful strategy to focus in the “accessible luxury” segment. By 2000, Coach was dominating the sub-category market over its competitors DKNY, Dolce & Gabanna, Giorgio Armani, and etc. The luxury goods industry had a direct bearing on Coach’s profit potential. This effect can be explained by looking at the environmental layers in detail, moving from Coach’s general environment to its task environment.

Gucci is a multinational fashion brand based in Italy. The brand specialises in leather goods, clothes, and fashion accessories for both and women aged between 24 and 30 years. Gucci was founded in 1921 in Florence, Italy by Guccio Gucci (Gucci Official Site United States, 2016). The main purpose of this paper is to provide an in depth brand analysis of Gucci. The paper will investigate and evaluate Gucci’s vales and identity, and will discuss how successfully these are reflected by Gucci’s business model, supply chain management, and Corporate Social Responsibility (CSR) activities. In addition to that, the paper will critically evaluate Gucci’s brand identity (identity) in relation to its brand image (external).

Under Armour will be able to take advantage of this large population of buyers by creating a shoe that appeals to them. The ability to attract and retain at least half of this generation will increase their profits. Under Armour must understand the shopping habits of this group of buyers. They desire brand name products that are unique and stylish. Also, being socially accepted is very important to them but they must also be different. This generation is used to relying on their parents to select and purchase their shoes now they are the decision makers and the purchasers. Under Armour has the opportunity to attract a generation of buyers who are new to the athletic shoe market. Successfully attracting this group of buyers to Under Armour will

Gucci, an Italian fashion business, has gained a luxurious reputation over the years. The firm was first created in 1947, becoming later one of the strongest fashion worldwide companies. The brand’s style is fine and peculiar and subtle. In March 2017, The company launched #TFWGucci campaign with the purpose to engage more with the audience and at the same time to promote the newest version of watches just been released. Alessandro Michele was under the direction of the creative thinking in the called “meme project”. His main focus was to relate the Internet culture of the day with the product and great value that anxiously Gucci had to offer.

Louis Vuitton’s brand value as updated by Forbes magazine is $ 28.1 billion and it’s ranking is 14th worldwide among all brands and stands 1st among luxury brands. It is one of the most lucrative brands in the world with profit margins approaching 40%. It celebrated its 160th anniversary in 2014. Recently Angelina Jolie, Muhammad Ali and Michael Phelps have endorsed the

In Gucci, all online and Offline Company touch points are connected and integrated to create One Single Customer view in the global CRM framework. A strategic Contact Plan is also designed and managed to cover all key touch points.

Moët Hennessy • Louis Vuitton (LVMH) is a luxury goods conglomerate based in France. Bernard Arnault is the chairman and CEO. LVMH was formed in 1987 with the merger of Moët Hennessy and Louis Vuitton thus becoming the world leader of luxury products. LVMH is the only group present in all five major sectors of the luxury market – Wine and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watching and Jewelry, and Selective Retailing – with 70 distinguished houses total. They own 15 fashion & leather goods houses, 24 wine & spirit houses, 10 perfumes & cosmetics houses, 7 watches & jewelry houses, and 6 houses in selective retailing. LVMH is one of six companies that own over forty fashion brands. In 1999 LVMH started the watches and jewelry division of the brand. Additionally opening a New York headquarters around this same time. In 2000 the London based house opened and it was used as training center for group leaders. In July 2015 Jean Claude Biver, president of the watches division, stated the LVMH plans to launch watch to rival the Apple watch.

Market segmentation- Gucci's product line offers to various segments of the society. the different qualities of materials offer different price ranges of the product, which are suitable for the middle, upper middle and high class.