Professional Documents
Culture Documents
The main problem of this research is that Gucci made losses in excess of US$ 40 million and faced
bankruptcy, in 1994. The cause of this problem is that the internal family feuds over ownership and
rewards, happened. The family managers also exploited the brand with a non-discriminating distribution
and product licensing strategy. There were also too many product lines (up to 20,000 product lines),
such as alcohol, playing cards, and toilet paper, that must have caused huge production costs that lead
to the excess losses of the company.
Research Design
Research design is the outline of how a research is conducted. The research we conducted is based on
our data collection. The data collected is secondary data from articles and official websites regarding
Gucci to back up our analysis to help restructure the company.
3. POSITIONING
Gucci must have positioning concept to survive in the competition, competitor and success in
the marketplace. Positioning concept attempts to sell the benefits of the product or service to a
potential buyer. In business positioning becomes an important reason for customers to buy the
product.
Gucci product have several advantage such as unique brand image and features, exclusive retail
environment, premium pricing, excellent channels of distribution, distinct packaging and exclusive
store design and layout. This advantage is the value of the Gucci.
Marketing Strategy of Gucci in term of: Value Proposition and Marketing Mix
1. Value Proposition of Gucci Group
Product Customer
Benefits
Experience Wants
Features
Gucci provide the experience of their ‘luxury brand strategy’ through their unique product
image and features, their outstanding service, their exclusive retail environment, their pricing, their
channels of distribution and complete with their distinct packaging. All the values associated with their
unique and luxury brand images.
2. Marketing Mix Analysis (4P) of Gucci Group
In this section, we’ll analyze the luxury brand’s strategy of Gucci Group NV through marketing
mix analysis (4P).
Product Place
1. Highly fashionable and unique products 1. Centering on directly-managed stores
supervised by Tom Ford 2. Renovation of directly-managed stores
2. Absolute value ensured by well-selected under the supervision of Tom Ford and
skilled craftsmen other measures to reflect the brand image
3. Narrowing down of licensed products
Price Promotion
1. High pricing based on absolute value above 1. Aggressive and focused investment in highly
function fashionable advertising, such as runway,
2. High prices target the wealthy customers fashion magazine, etc
3. Sought high but fair prices 2. Utilized publicity with Tom Ford as an icon
(face of the brand)
References
Moore, M. Christopher, and Grete Birtwistle, The Nature of Parenting Advantage in Luxury Fashion
Retailing – The Case of Gucci Group NV, Division of Marketing, Glasgow Caledonian University, Glasgow,
Scotland, UK, pp. 1-15.
Nagasawa, Shinʼya, and Teruhiko Fukunaga (2012), Strategic Management and Brand Management on
the Luxury Brand “GUCCI,” Bulletin of WBS Research Center, No. 43, pp. 97-108.