B00796107

GUCCI

From: BM Consultant team

To: Gucci’s management team
Date: March 01, 2015

Problem statement:

Based on 2014 consumer data research luxury brands must be prepared to diversify and expand from the
traditionally exclusive and elite ‘focussed’ haute-couture segments. To date, Gucci has failed to expand
its market strategy and product lines beyond these elite collections that focus on ‘sex-appeal’ and must
expand its vision, strategy, and product lines towards greater consumer accessibility with an eye towards
reaching newer and younger consumers.

Recommendations:

-Immediately acquire a new Creative Director. Gucci must have a fresh vision and strategy for re-
invigorating and expanding its brand while ensuring the original essence of the brand is respected and
remains true to its roots;

-Develop ‘accessible’ ready-to-wear and high-street fashion lines on a seasonal rotation that are targeted
towards younger consumers that incorporate Gucci’s design elements in an effort to hold the brand’s
value proposition within these new product lines. This effort will expand Gucci’s market segment, while
maintaining its elite status amongst its competitors; and

-Develop a social media campaign that pivots away from a strictly “sexy” marketing strategy to one that
also incorporates smart and progressive elements. Millennials are a larger demographic that the Boomer
generation. Millennials are more likely to invest in fashion than their Boomer equivalents. According to
Nielsen’s 2014 Global survey, more than 55% of global online consumers across 60 countries are
willing to pay more money for products that are committed to social and environmental impact
(RAYAPURA, A. 2014, January 18).

Implementation Plan:

-New Creative Director Implementation Plan – Effective immediately Alessandro Michele should be
selected as Gucci’s new Creative Director. He has an industry reputation for his creativity and firm
understanding of Gucci’s creative design elements, while also being an advocate of youth culture and
supporting progressive initiatives such as cruelty-free initiatives in the design of garments (“Alessandro
Michele Biography”, n.d.). His experience working in the Creative Department cannot be overlooked,
and no other candidate would be better positioned for expanding Gucci’s brand towards the ready-to-
wear and high street fashion segments, while also pivoting away from Gucci’s ‘sexy’ marketing strategy
towards a more smart and socially progressive approach. Based on the fact that he is already your
Associate Creative Director, and is already filling in the void left by the outgoing Director, he should be
 B00796107

appointed Creative Director immediately with the goal of creating a new direction for Gucci’s product
lines that incorporate seasonal ready-to-wear and high-street fashion lines that appeal to newer and
younger demographics.

- Product Line Implementation Plan- A new set of boutique stores in the North American and Asian
markets (New York, Los Angeles, Tokyo, Singapore, Seoul, and Hong Kong) must be opened
immediately as a new initiative with an eye to further expansion into the European and Middle Eastern
markets in the future. These boutiques will be targeted at delivering new seasonal ready-to-wear designs.
These new lines must be at a price-point that is accessible, but must also retain the value proposition of
the Gucci brand. The idea will be to position this new segment within the High-Exclusivity market
segment, but at the highest price point within the Low-Price market segment when compared to the
leaders within that marketplace. The product lines will be seasonal in an effort to increase sales and
create consumer affiliation with the brand, while also developing Gucci Haute-Couture as an
‘aspirational’ brand. The opening of these boutiques must be dovetailed with the opening of an online
Gucci ‘storefront’ that makes these new ready-to-wear lines accessible globally, however, the boutique
stores should be given early access to each season’s new fashion line to increase the exclusivity to those
who can access the boutiques.

-New Social Media Campaign Implementation – The pivot away from a sexualized marketing strategy
will be in part achieved through a new social media engagement strategy. This strategy will reinforce a
new emphasis on choosing Gucci products due to their quality, exclusivity, and progressive elements.
New design elements must include progressive elements such as ethical sourcing throughout the supply
chain, being cruelty-free, and being open to moving away from traditional gender stereotypes. The use
of social media influencers must be a priority in the new advertising campaign. These influencers will be
aimed at generating excitement and interest in the new read-to-wear clothing lines. The benefits are low
advertising costs, as the costs are much lower than traditional advertising formats, and instead can rely
on these “key” influencers already well-established subscribers through mediums such as YouTube,
Instagram, Twitter, and Facebook. Additionally, Gucci can work with these platforms for access to
consumer habits and interests that can inform a range of future market trends.
 B00796107

Reference:

1. RAYAPURA, A. (2014, January 18). Https://sustainablebrands.com/read/stakeholder-trends-

and-insights/new-nielsen-study-says-consumers-are-ready-to-pay-more-for-social-
responsibility. Retrieved February 15, 2021, from
https://www.thefamouspeople.com/profiles/alessandro-michele-50508.php

2. Who is Alessandro MICHELE? Everything you need to know. (n.d.). Retrieved February 15,
2021, from https://www.thefamouspeople.com/profiles/alessandro-michele-50508.php