GUCCI Marketing Assignment

Gucci – Marketing Situation Analysis
GUCCI – FORMAL DOCS LINKS:

2020 First Half results - file://mac/Home/Downloads/2020-First-half-results.pdf
2020 First Half Report
-https://keringcorporate.dam.kering.com/m/66ec349157ed4d98/original/2020-First-half-report.pdf
2019 Full Year Results - file://mac/Home/Downloads/2019-Full-year-Results.pdf
2019 Financial Doc - https://keringcorporate.dam.kering.com/m/5950e4d285ac1f9a/original/2019-
Financial-Document.pdf - page 36 for Gucci
Investor Day 2016 -
https://keringcorporate.dam.kering.com/m/29302dd359cc8533/original/Investor-day-dedicated-to-
Gucci-June-2016.pdf
Investor Day 2018 - https://keringcorporate.dam.kering.com/m/2b3f46390e1c7bce/original/Gucci-
Investor-day-June-2018.pdf
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GREAT LINKS
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https://www.studocu.com/en-au/document/university-of-southern-queensland/marketing-
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strategy/assignments/assignment-1-parmalat-group/6987278/view
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https://www.scribd.com/doc/197808000/A-Critical-Evaluation-of-the-Strategic-Direction-of-
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Samsung-Mobile-Communicationsrs e
https://ivypanda.com/essays/external-and-internal-environmental-analysis-essay-2/
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https://ivypanda.com/essays/prada-group-internal-analysis-term-paper/
file://mac/Home/Downloads/119183335-STRATEGIC-MARKETING-A-CASE-STUDY-OF-GUCCI-GROUP-
MARKETING-STRATEGIES.pdf
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https://poseidon01.ssrn.com/delivery.php?
ID=885101096071121069123107121083065064004052052006035025009008076103020127081112
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12210706210712100205112109712402811211302310502804303204402107602607800512309509
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31230690770940991020851121201210951231160941000640981020680140000730010641020930
05114090116&EXT=pdf
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https://www.researchgate.net/profile/Demetris_Vrontis/publication/262963901_Situation_Analysis_
and_Strategic_Planning_An_Empirical_Case_Study_in_the_UK_Beverage_Industry/links/0deec5398
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be346f884000000.pdf
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DESIGN LINKS:
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https://issuu.com/isabellaburzynski/docs/gucci_brand_report_4
https://issuu.com/dominicabuonasorte/docs/gucci_magazine_finished_print
INTRODUCTION
INCLUDE BRIEF DESCRIPTION OF GUCCI

- Owned by Kering
- Products: bags, clothing, footwear, jewellery, silks, perfume
This study source was downloaded by 100000823769456 from CourseHero.com on 08-16-2021 01:50:18 GMT -05:00
https://www.coursehero.com/file/69318255/GUCCI-Marketing-Assignmentdocx/
https://www.highsnobiety.com/tag/gucci/
https://www.gucci.com/au/en_au/st/about-gucci
https://www.gucci.com/au/en_au/st/sustainability-landing/commitment
This report is set to investigate and analyze the environments that have lead to the growth and
development of the Gucci Group while assessing its current marketing situation and strategy to
ensure the company remains competitive in today’s luxury goods market. As a result, the report will
examine the internal environment of Gucci, including a review on the company’s goals and
objectives, resources and financial position along with a review on the company’s external
environment to identify the factors which affect the business externally. The report provides an
analysis on the company’s strengths and weaknesses with the use of a SWOT matrix which will also
identify opportunities to increase growth, revenue, and competitive advantage. Finally, the report
will provide a suggestion to implement a marketing strategy to achieve its long-term and short-term
objectives and remain an industry leader in the luxury goods market.
SITUATION ANALYSIS
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A situation analysis or audit is designed to describe the current issues and key trends directly
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affecting three key environments of a company: the internal environments, customer environment
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and the external environment (TEXT BOOK REFERENCE – page 53). It is a means where marketing
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managers can assess “where we are now”, by identifying the company’s own internal strengths and
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weaknesses relative to its external threats and opportunities (RESEARCH GATE – DEMETRIS – page
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135) and is essential in the business’s future strategic planning (LECTURE NOTES – Module 3 page 1).
The external environment in a situation analysis covers many aspects. It examines all the external
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factors such as competition, political, legal/regulatory, technological and sociocultural which may
“exert considerable indirect and direct pressures on a company’s marketing activities” (TEX BOOK
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REFEERNCE – page 66).

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The second part of a situation analysis is the customer environment analysis. It is here that a
marketing manager must examine the current and future situation of consumers in their target
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market. A marketing manager might employ the use of the 5W Model: Who, What, Where, When
and Why, in a bid to understand the buying behaviour and product usage characteristics of their
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customers. TEXT BOOK REFERENCE – page 60).
Equally important is the analysis of the internal environment. This incorporates an examination of
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the company’s own resources and supplies suggestions to their current strengths and weaknesses
(RESEARCH GATE – page 135). It also examines other factors including current goals, performance,
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sales, profitability and corporate culture.
For this report, the customer environment analysis has been included within the sociocultural
section under the external environment analysis.
INTERNAL ENVIRONMENT
SITES USED:
https://www.statista.com/topics/5132/gucci/ - Published by Liam O'Connell, Mar 27, 2020
https://keringcorporate.dam.kering.com/m/5950e4d285ac1f9a/original/2019-Financial-
Document.pdf - 2019 Financial Doc - page 37
In 2015, Gucci moved into a new and pivotal chapter in their history, under the direction of new
management led by President and CEO Marco Bizzarri and Creative Director Alessandro Michele.
With their “disruptive approach to luxury fashion”, Gucci regained its position as an industry leader,
resulting in its “powerful business momentum” (2019 Financial Doc – GUCCI page 37).
Gucci continues to display solid growth in line with their innovative strategic vision and at the end of
2019 the company reported a total revenue of 9,628€m, up 13% on last year, reconfirming their
position as an industry leader “both in terms of revenue and profitability” (2019 Financial Doc –
GUCCI page 37). Gucci products continue to demonstrate the pinnacle of Italian craftsmanship, with
“unsurpassed quality and attention to detail”, making up XX % of luxury goods sold globally in 2019
(FIND SOURCE). Leather goods continue to generate the most revenue in comparison to all other
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products, worth more than 50% of the brands total sales, followed by shoes 17% and ready-to-wear
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products at 13%. Gucci products are available for purchase exclusively through any of their 487
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directly operated boutiques (GUCCI 2019 FINANCIAL DOCUMENT – page 36), directly operated online
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store as well as selected specialty and department stores both in-store and online. At the end of
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2019, Gucci’s retail sales accounted for 85% of the brands total revenue.
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SMALL DESCRIPTION OF 2020 LOSSES DUE TO COVID
One of the brands foundations for a long-term, successful business strategy was outlined in
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Kerring’s Gucci Investors Day held in June 2018. This included, in particular, an approach to prioritize
company culture and shared values to create a positive, diverse and dynamic business. This approach
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was reaffirmed when the company appointed Global Head of Diversity, Equity & Inclusion, Renée
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Tirado in July 2019 (GUCCI 2019 FINANCIAL DOC – page 38), who’s role is to develop and implement
a global strategy to create a more inclusive and equitable workplace. This strategy will also coincide
with Marco’s strategic vision of creating an atmosphere that “encourages empowerment at all levels
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throughout the company , thoughtful risk-taking and progressive approach to social responsibility”
(GUCCI 2019 FINANCIAL DOC – page 37).
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EXTERNAL ENVIRONMENT:
- Competitive Analysis:
o Brand competitors, products competitors, generic competitors, total budget
competitors
- PEST Analysis:
o political trends, economic growth & stability, sociocultural trends, technological
advancements, environmental & sustainability , legal & regulatory issues,
COMPETITIVE ANALYSIS
There are several brands within Australia that compete alongside Gucci in the luxury goods market
and are categorized in four main types as illustrated below.
Brand Competitors – products with similar features and prices targeted to the same customer
- Louis Vitton (LVMH)
- Versace
- Prada
- Yves Saint Lauren
Product Competitors – products within the same market, but are different in features and price
- Handbags – Hermes,
- Shoes – Christian LouBoutin, MiuMiu, Jimmy Choo
- Jewellery – Rolex, Tiffany & Co, Cartier
- Clothing – Chanel, Dolce & Gabbana, Burberry
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- Beauty & Fragrance – Christian Dior, Lancome, Estee Lauder
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Generic Competitors – products that are different in features and price but solve the customers basic
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need
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- Major Department stores i.e David Jones, Myer, TK Maxx, Kmart
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- Retail Stores - Cotton On (clothing), Novo (shoes), Lovisa (jewellery), Collette (handbags)
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- Online Retail Chains – Pretty Little Thing
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Total Budget Competitors – competitors with the same financial value to the same customer
- Debt reduction
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- Investments
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- Personal Electronic Equipment – i.e mobile phones, laptops, tv’s

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Ferrell & Hartline (TEXT BOOK REFERENCE) highlights the importance of analysing brand competitors
as consumer will associate different brands as direct substitutes for each product. As such, most
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strategies are aimed at consumers within this segment in an effort to switch brands and beat brand
competitors. Table NUMBER below summarizes the strengths and weaknesses of Gucci’s direct
brand competitors based on market key performance factors:
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Brand Competitors Louise Vuitton Yves Saint Prada Versace

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(LVMH) Laurent (YSL) (PRDSY) (VERSACE)

Assets &
Capabilities
CRITCAL SUCCESS
FACTORS
Product Quality
Brand Awareness
/ Customer
Loyalty
Marketing &
Promotional
Skills
SECONDARY SUCCESS
FACTORS
Financial Position
Growth of Target
Market
Product Pricing
Distribution
Channels
COMPETITOR
CAPABILITIES &
VULNERABILTIES
Strengths
Weaknesses
Key – 1 dot = weak … 2 dots = average… 3 dots = strong
PEST ANALYSIS
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Political / Legal / Regulatory Factors –
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https://www.gucci.com/au/en_au/st/corporate-information#link4
https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-
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business/Understanding-Australian-business-regulation/Australian-export-and-import-laws
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https://www.business.gov.au/Products-and-services/Importing-and-exporting/Importing-and-your-
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business
There are no distinct set of laws governing political or legal factors within the luxury good market;
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there are no “fashion laws”, however there are certain rules and regulations that luxury goods
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companies must adhere to when importing and selling products to the Australian market. For the
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ease of importation processes, Gucci has registered their subsidiary company, Gucci Australia Pty Ltd
to exist under the laws of Australia and is located in Sydney, NSW (GUCCI WEBSITE). Gucci Australia
Pty Lts allows access to the Asia-Pacific market and ability to provide products to these consumers
directly.
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The Australian Government has a number of policies and regulations which assists businesses
involved in international trade and is aimed at protecting domestic industries and its consumers
(AUSTRADE WEBSITE). All goods must be declared and cleared through customs before entering into
Australia and a goods and services tax (GST) must be paid prior (BUSINESS.GOV WEBSITE).
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Economic Growth & Sustainability
Socio Cultural
Technological Advancements
CUSTOMER ENVIRONMENT
5w’s : who are our current and potential customers – what do customers do with our products –
where do customers purchase our products – when do they purchase – why do they select our
products – why do potential customers not purchase our products.
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SWOT ANALYSIS: rs e
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SWOT LINKS:
https://prezi.com/epbl0ux9g8ut/gucci-swot-analysis/
https://www.scribd.com/document/449025407/Trends-in-fashion-marketing-Gucci-plc
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https://issuu.com/isabellaburzynski/docs/gucci_brand_report_4
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file://mac/Home/Downloads/119183335-STRATEGIC-MARKETING-A-CASE-STUDY-OF-GUCCI-GROUP-
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MARKETING-STRATEGIES.pdf
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Strengths:
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Weaknesses:
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Opportunities:
Threats:
OTHER LINKS:
https://www.scribd.com/doc/119183335/STRATEGIC-MARKETING-A-CASE-STUDY-OF-GUCCI-GROUP-
MARKETING-STRATEGIES
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Gucci – Marketing Situation Analysis

GUCCI – FORMAL DOCS LINKS:

INCLUDE BRIEF DESCRIPTION OF GUCCI

REFEERNCE – page 66).

customers. TEXT BOOK REFERENCE – page 60).

sales, profitability and corporate culture.

- Personal Electronic Equipment – i.e mobile phones, laptops, tv’s

Brand Competitors Louise Vuitton Yves Saint Prada Versace

(LVMH) Laurent (YSL) (PRDSY) (VERSACE)

Key – 1 dot = weak … 2 dots = average… 3 dots = strong

Economic Growth & Sustainability

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