Marketing Strategy Of Gucci

Internet fashion retail is a highly competitive market, the trends in the industry and company’s success relies on customer’s needs, which change constantly. “Competitive advantage is the delivering of superior value to customers and, in doing so, earning an above average return for the company and its stakeholders” (McGee, Thomas & Wilson, 2005, p.207). In order for ASOS to stay on top of its competitors, the trends in the industry have to be monitored, so that further they can be strategically translated in developing new products, to gain customer satisfaction.

Hence, technology is bettering reliability and speed with which information is divulged (Porter, 1980). Hand-held computers or PDA’s are utilized by Zara to collect information on consumer needs between retail stores and the factory in La Coruna. This along with regular telephone conversations between store managers and marketing specialists are one of the reasons that Zara’s information network is so effective. The utilization of PDA’s can be done by any company; it is Zara’s determination not to allow important information to fall by the wayside that assists with its success. PDAs are connected to the store 's point-of-sale (POS) system, enabling managers to see how garments rank by sales. In as little as an hour, managers can send information that combine the hard data captured at the POS intermixed with acumen on what customers would like to see. All of this data allows Zara to design and produce styles and orders based on feedback rather than guesswork. Hence, Zara avoids costly overproduction and the consequent sales and mark-downs that are so widespread in the fast fashion industry (Rohwedder and Johnson, 2008).

In addition, their customers are sophisticated, confident people who seek not only trendy clothing, but also the best product available.

After showing the segmentation and target market that Vogue is focused on, we will study the positioning strategy that Vogue use. Positioning is defined as"the relative perceptul position of one brand usually compared with competing brands altough arrange of positioning approaches are possible to achieve" (Pickton and Broderick, 2005). Vogue has its own identity; its brand sets it apart from other magazines. It is the most valuable high fashion magazine, continuing to position itself as both unique and authentic. They have developed relationship marketing, defined as "Marketing with the conscious aim to develop and manage long-term and/or trusting relationsips with customers, distributors, suppliers, or other parties in the marketing environment". It focuses on the best designers, fashion photographers and models in order to retain its core customer- stylist women. Vogue tries to provide added value,so the brand has prices that are not cheap, investing in creativity and focusing on quality. They try to create a consitent marketing mix rto have a long-term relationship with the target market, and they try to crea

In 1980s, Gucci had lost its appeal and became a tacky brand and was also in deep financial crisis. But Tom Ford raised Gucci from dead and found out the company’s leading status and maintains

Robert Palot brought with him new vision and strategic goal for the company. He had a strong conviction over the development and rebuilding of the Gucci brand in the target market, for this purpose he made up the team of professionals who were devoted to work whole heartedly for the company new vision. Palot has redefined the distribution strategies for the improvement of the product line and growth of the market share along with market penetration. Thus, for invigorating the company's profitability and brand building appetite Palot and his team had the vision of maintaining the financial health of the existing brands, while increasing the customer based by entering new product categories and expanding the distribution network. The results of the new corporate strategy were that company achieved solid

According to the mission statement of Anthropologie: “Lifestyle merchandising is our business and our passion. The goal for our brands is to build a strong emotional bond with the customer. To do this we must build lifestyle environments that appeal emotionally, and offer fashion correct products on a timely basis. Our customers are the reason and the inspiration for everything we do.” UO considers the relationship it has with its customers before making decisions that affect them. Therefore, UO has kept in touch with customers continuously by utilizing various platforms such as SNS messages, connections with its online store, campaigns, events, and social media. In 2016, the growth rate of the company of retail segment is 1.6%, $47.4 million (URBN FY 2016 Annual report, 35). The basic concept of gaining inspiration from customers forms a diverse and progressive corporate culture; this is the driving force behind the development of the

Gucci was founded in 1921 by Guccio Gucci. In 1938, Gucci expanded and a boutique was opened in Rome. Guccio was responsible for designing many of the company's products. In 1947, Gucci introduced the Bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci also developed the trademark striped webbing, which was derived from the saddle girth, and the suede moccasin with a metal horsebit. The Gucci group really said it all, Tom Ford, creative director and Domenico de sole, president and CEO, stood side by side facing the camera with eyes of steel. These two men had, in the first six months of 1999, been the centerpiece of one of most higly contested hostile takeover battles ever seen on the Europian

Lately, there have been issues of brand management on the internet. The new digital tools require a lot of adjustments at the executional stage. According to Chaffey (2000) Internet marketing success depends on the sites interactivity features. Also added that a brand’s presence online should be conceived in a way that is sympathetic to the technology and the environment. Many brands fail in the execution of different features resulting in customers’ needs and expectations not being met says Hewson and Coles (2001) The consumer still looks up to the luxury brands although the bond is presently being evolved beyond the existing “top-down” model. (Okonkowo, 2009) The percentage of online shoppers and the sales of luxury brands have been on a positive growth. In spite of the growth, it’s not clear that what drives the consumers to shop online and whether they would be interested in shopping if attractive online stores were introduced. Therefore, what factors affect consumers to shop online will be examined here. A framework is necessary to develop the complex system and determine these factors, influences and buying behaviors of the consumer. (Perea, 2004) Affluent consumers use the internet as their powerful source of information about the luxury products and it is necessary that they have an online presence.

We can also leverage the strength and popularity of the Gucci brand to gain distribution for the smaller names, much like how LVMH leveraged Louis Vuitton’s popularity. By holding off of new acquisitions, Gucci can learn to handle the four brands they currently have before adding extra brands.

Gucci utilizes the differentiation business strategy, as the brand itself promotes premium quality. They are known for their high end leather products and the red and green striped webbing with the GG logo. The company is in no way price-sensitive and caters to the affluent through customization, genuine leather, premium quality, and exceptional customer service. Gucci’s customer base is more than willing

When a brand is created, many will ask the questions that haunt all of us trying to start a company. Will it work? Should we stay online or launch a brick-and-mortar store? Will I make profit or fail? These questions arise even more when the company is to start only online. Because of this, e-commerce fashion brands must constantly evolve and expand their styles to maintain the interest of their target customers. Fashion Nova is one fashion brand that manages to stay relevant among its consumers because of their edgy style and quality priced clothing. Fashion Nova was first established in 2010. It gained its popularity from celebrities promoting it on their social media platforms and the fact

Since social media is so easily accessible to everyone nowadays people don't care to go and grab the latest vogue for inspiration, they will go on their phones and check their instagram, twitter, Facebook or any social media account to see whats trending. In L2's Advanced IQ List, which positions form brands as per their site offerings, online business, computerized advertising and web-based social networking mindfulness, US ladies' dress planner Tory Burch beats understood worldwide extravagance brands, for example, Gucci, Hermes and Chanel. This shows the huge impact the influence of social media can have on the Fashion industry, the world is moving and progressing through social media and those who chose not to utilize this part of technology so widely used, are going to fall behind those who do. People who are very high up in social media have a very big platform to promote and influence others. Nowadays if you have a huge amount of followers you are practically famous with all eyes watching you. Fashion corporations want people who have this huge platform on social media to promote their styles due to the fact people are going to be strongly persuaded to want or to want to look like something if someone they keep up with on social media looks a certain way or wears a certain piece. Fashion trends from all over the world come to meet each other, merge, change and evolve through social media. The concept of the see

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. 


























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However, in Gucci marketing plan, there were many risks involved with the “star design strategy” as this marketing strategy definitely gives instant success by boosting sales and rebuilding the reputation main asset for luxury brands like Gucci, but the risk involved is high for the company to forecast the effect on the brand image in the absence of star-design.