FASHION MARKETING PLAN

Abstract

Notably, to gain footing in the saturated industry, small or independent fashion brands require

strong marketing plan strategy. Ideally, marketing plan should have well defined timeline,

audiences, and strategic goals. Therefore, this report will focus on the marketing plan for Gucci

handbags to ensure they are accepted in Croatia. The report will begin by focusing on the

situation analysis. In addition, the analysis will cover the marketing strategy which will include

segmentation strategy, positioning, and marketing mix. Moreover, the analysis will focus on

marketing program which will involve models such as Ansoff’s matrix and Bowman’s strategy

clock, segmentation and positioning. Moreover, the analysis will also cover marketing

communication plan, which will involve communication plan, timetable for the communication

campaign, and evaluation and follow up.

Table of Contents

Introduction......................................................................................................................................3

Situation Analysis Summary...........................................................................................................3

Objectives........................................................................................................................................4

MARKETING STRATEGY...........................................................................................................4

Segmentation Strategy.................................................................................................................4

Positioning...................................................................................................................................5

Marketing mix..............................................................................................................................5

MARKETING PROGRAMMES....................................................................................................6

Marketing Objective....................................................................................................................6

Ansoff’s Matrix............................................................................................................................6

Bowman’s Strategy Clock...........................................................................................................7

Targeting Strategy........................................................................................................................8

Positioning...................................................................................................................................8

MARKETING COMMUNICATION PLAN..................................................................................9

OBJECTIVES............................................................................................................................10

COMMUNICATION PLAN.....................................................................................................10

TIMETABLE FOR COMMUNICATION CAMPAIGN..........................................................11

EVALUATION AND FOLLOW UP........................................................................................13

CONTIGENCY PLAN..............................................................................................................14
PROPOSED COMMUNICATION PLAN....................................................................................14

Objective of Campaign..............................................................................................................14

Campaign Information...............................................................................................................15

Pre-Launch.................................................................................................................................16

Public Relation Planning............................................................................................................17

Evaluation of Campaign Effectiveness......................................................................................17

Conclusion.....................................................................................................................................17

References......................................................................................................................................18

Appendix........................................................................................................................................19
Introduction

Arguably, fashion marketing is one of the marketing industries that focus on promoting and

advertising fashion brands. Therefore, this fashion marketing analysis will focus on Gucci

fashion in Croatia. More specifically, this analysis will deal with marketing and promoting Gucci

handbags for women in Croatia. Notably, Gucci is an Italian Luxury fashion house with its roots

in Florence, Italy (PELTEKOGLU, 2019). Ideally, Gucci brand consist of product lines such as

handbags, footwear, makeup, home decorations among other luxurious things. Therefore, I chose

to analyze the marketing of Gucci handbags since it offers a wide range of luxurious handbags

for women, thus easy to market and promote. However, I chose Croatia as the best country to sell

and promote the Gucci handbags since it is a country that has a large population of about 4,290,

612 according to the 2011 census, which can offer a large market for the Gucci products (Jurun,

Ratković and Ujević, 2017). Besides, Croatia’s main business partner is Italy, which makes it

easy to market, advertise, and sell an Italian brand in the country. Therefore, this analysis will

focus on the marketing strategy that will be used to market and promote Gucci handbags in

Croatia.

Situation Analysis Summary

Notably, situation analysis consist of methods that managers often use to analyze internal and

external environment of an organization to get insights of its capabilities, customers as well as

business environment (Mansour and Esseku, 2017). Therefore, in this report, the situation

analysis will focus on internal and external marketing environment of Gucci handbags by

conducting PESTEL (political, economic, social, technological, environment, and legal factors)
analysis. Besides, this section will cover the Porter’s Five Forces models including the

bargaining power of suppliers, the bargaining power of customers, threats of new entrants,

threats of substitute, rivalry among industries. Furthermore, this section will also analyze the

competitors and competitive environment in Croatia for the Gucci handbags. Additionally, the

situation analysis section will also consider business model canvas, target market profile, values

of the brand, the current marketing mix, and finally the SWOT analysis.

Objectives

Notably, there are three principle objectives in this analysis;

 To identify the best marketing strategy that will reduce the time spent during marketing

and advertising of Gucci handbags. Ideally, that will ensure that customers get

information relating to Gucci handbags in real time to enable them make informed

decisions before purchasing.

 To determine the cost effective strategy the will help reduce the cost involved in

marketing and advertising Gucci handbags.

MARKETING STRATEGY

Segmentation Strategy

Notably, the Gucci Fashion brand uses a mix of demographic and psychographic segmentation

strategies to come up with different segmentations variables to provide offerings which are way

ahead of its time in the industry (Talukdar, Lance, and Nervino, 2020). Ideally, since the brand

targets limited segments of customers, it uses selective targeting strategy.

Positioning

Arguably, the products of Gucci have always been positioned as a symbol of quality. Ideally, the

brand is known to be producing quality handbags made of valuable materials such as pure

leather. Besides, the brand uses value-based positioning to ensure it position itself as a luxurious

brand.

Marketing mix

Product: Notably, the Gucci brand has always maintained excellent services while supplying

qualitative handbags. Ideally, the management of the brand has taken keen sense of fashion

which has enabled the brand to maintain its grip firm in the market even during the changing

times. Notably, the company began by producing luxurious leather goods but it letter shifted to

other products including women handbags. Therefore, the company has been designing luxurious

handbagsthat it has been selling them for decades now.

Place: Arguably, the Gucci brand trades to provide handbags to the high-end market, and for that

reason they have ensured that there is a relaxing environment which helps to create a responsive

attachment between the consumers and the brand. Besides, the distribution channel is also

selective which make customers feel special. Besides, all the stores are stationed in expensive

and high profile streets in Croatia which are more exclusive and distinguished. However, the

company mainly relies on online platform to market and promote its products.

Price: Notably, since the Gucci products are very superior, it uses premium pricing policy.

Arguably, the brand name is associated with high quality and prestigious pricing which makes it

a symbol of status. Therefore, customers often feel happy and distinguished to be associated with

such products.
Promotion: Notably, Gucci has adopted innovative marketing strategies in order to tackle the

every changing environment. First, to appeal to the young women, Gucci uses experimental

marketing. However, the company is also adopting online marketing strategies to cater for the

young women who spend most of their time looking for products online.

MARKETING PROGRAMMES

Marketing Objective

 To increase brand awareness for Gucci handbags in Croatia

 To increase revenue for Gucci handbags.

 To increase sales of the Gucci handbags.

Ansoff’s Matrix

Notably, Ansoff’s matrix also provides four strategies that Gucci fashion can use to grow and

analyze the risks associated with each strategy (Loredana, 2017). Ideally, the four strategies

include market penetration which focuses on how the sales of existing products can be increased

in the existing market (Loredana, 2017). Secondly, there is product development which focuses

on how a new product can be introduced to an existing market (Loredana, 2017). Thirdly, there

is market development which focuses on how a firm can enter a new market using existing

product. Finally, there is diversification which focuses on how a firm can enter into a new market

using new products (Loredana, 2017). Notably, the Ansoff’s Matrix model is shown in appendix

0.1 in the appendix section.

 However, in a product development strategy, Gucci will be able to create new products to

cater for the existing market. Ideally, this strategy will require an extensive research and

development to expand the range of the company’s handbags. Arguably, Ansoff’s matrix in

marketing will help develop the market and increase the brand awareness and consequently the

revenue for Gucci handbags by ensuring that the target audience in Croatia is attracted to the

products. Ideally, the target customers in Croatia include young women of age 20 years to 35

years. Arguably, this market segment often uses the social media platform to access goods and

services they need. Ideally,Ansoff’smatrix is a suitable strategy for marketing and selling Gucci

products in Croatia since it provides an opportunity to target different groups of consumers in the

market and sell to them existing products.

Bowman’s Strategy Clock

Notably, Gucci Fashion will also use the Bowman’s strategy clock shown in appendix 0.2 to

improve its product differentiation. Ideally, Gucci Fashion is focusing on providing

incomparable high quality products to customers. Arguably, the company understands that

luxurious handbagsare closely identical. Therefore, like its competitors, it will ensure that it

retain high prices. Besides, Gucci Fashion will use social media to appeal to its target market,

which consist of the young generation of women spending most of their time on social media.

Segmentation

Notably, the segmentation in Croatia should be done in the following ways.

Primary peer group 20-25 years

Secondary peer group 25-35 years
Individuals with high income High class families who spend most of their

money on luxurious items.

The social media group People who will spend most of their time in
 social media looking for new fashion and

designs.
People having high sense of fashion Those who prefer walking on the streets

showing their fashions.

Table 01: Segmentation criteria

Targeting Strategy

Notably, from the above segmentation, there are five segments that Gucci Fashion will focus on

to market and sell its handbags. Ideally, as shown in the appendix 0.3, the segments will include

the primary peer group, secondary peer group, high income group, the social media group and

individuals with high sense of fashion. Arguably, the brand image for Gucci is collective to an

extent that it cannot be affected by the many segments of customers. Therefore, Gucci Fashion

should adopt niche marketing which will ensure that the brand focuses on the entire consumer

segment with its niche strategy.

Positioning

Notably, Gucci being a luxury brand has positioned itself in the market in a way that it looks

more exclusive and valuable at the same time. Therefore, positioning for Gucci Fashion is done

based on price, service, quality and value.

Price: Ideally, since Gucci Fashion is a luxury brand, it mainly sells its handbags to the high

income class. Notably, differential pricing is used to sell the brand’s handbags, with prices

ranging from $ 4,000 to $ 120, 000.

Service: Gucci has committed customer services determined to ensure that customers are served

well to their satisfaction. Besides, the companies offer retail services with sales assistant who

ensures that customers get what they need (Silver, 2017). Additionally, the sales assistant helps
by giving feedback based on the customers’ needs, which helps the company to meet customers’

needs.

Quality: Gucci fashion has the most prestigious products due to its high catching colors and

designs. Notably, the handbags are highly recognized for their double twofold G log, and of

course the green and red stripes as shown in appendix 0.4 (Armitage and Roberts, 2021). The

handbags are normally long lasting since they are made by leather materials. Moreover, the

handbags are also made using expensive materials which make them of high quality.

Value: Notably, apart from the price, Gucci Fashion handbags also look more prestigious in the

eyes of customers due to their beautiful image. Besides, the products are made out of expensive

materials such as gold, which also make them more valuable. Besides, the origin of the brand is

in Florence, Italy which also creates a perception in the customers’ mind that the products are of

high quality.

MARKETING COMMUNICATION PLAN

Theme: Ideally, as shown above, Gucci produces luxurious products mostly for the young

generation of women from high social class in Croatia. Therefore, the brand should create core

products for the young women. Notably, the main theme behind the marketing plan is to create

awareness for Gucci handbags to ensure that most customers associate with the brand.

Message: “To look for more Gucci handbags which are more appealing to the young generation

of women from high social class”.

Target Segment: Young generation of women from high income class of ages ranging from 20-

35 years.
OBJECTIVES

The objective of this communication plan include:-

 Introducing Gucci handbags in Croatia.

 Creating the brand awareness by promoting its brand image.

 Associating the brand with the high class customers to improve its image.

 Emphasizing on the high class lifestyle.

 Promoting loyalty of the brand among the wealthy young generation.

 Generating revenue by increasing sales.

 Using the social media to increase brand awareness.

 Changing customers’ perception to ensure they have the desire to purchase the handbags.

COMMUNICATION PLAN

Phases Duration Task Report

Communication plan 10 weeks Market analysis PowerPoint

decision presentation
Planning 10 weeks Checking the viability of the PowerPoint

chosen communication plan. presentation

Campaigning 5 weeks Creating campaign and Social media

techniques vision board displays and Audio

visual displays
Implementation and Continuous Applying and constantly Media statistics

development evaluating the applied plan report.

to correct any error.

Table 02: Communication plan
TIMETABLE FOR COMMUNICATION CAMPAIGN

Date of the Event Title of the Event Description of the Event

5th September, 2021 Market Research for the Conducting research analysis

Croatian Consumers and submitting report in form

of PowerPoint presentation by

20th November. (10 weeks)

7th September, 2021 Communication Plan Continuously analyzing and

adjusting communication

strategies based on

communication audit.

Presenting presentation in

form of PowerPoint by 22nd

November. (10 weeks)

1st October, 2021 Fashion Display Using social media and

billboards to display Gucci

Fashion products in Croatian

stores to customers
9th October, 2021 Media and Press Release Conducting a global press

release, and continuously

doing media coverage for

Gucci products in the stores.

TH
14 October, 2021 Product Display YouTube will be used to

display video clips showing

Gucci products.
6th November, 2021 The concept of Creativity Vision boards and detailed

campaign will be created, and

 that to be done by 10th

November.
th
9 November, 2021 Application Vision board and campaign

application will continuously

take place, fixing errors using

information from media and

brand awareness statistics. To

be done on 14 December

2021.
th
14 November, 2021 Croatian Media Different types of media to be

used to display and promote

Gucci products to the

customers.
18th November, 2021 Advertisement at the Retail Retail marketing will be done

Level using direct marketing

strategies to market Gucci

products in the Croatian

stores.
10th December, 2021 Digital Marketing Online platforms such as

YouTube and e-commerce

websites in Croatia will be

used to promote the product.

13th December, 2021 Products in Store All products in 8 stores in

Croatia will get displayed to

customers.
th
20 December, 2021 Magazine Adverts Product images to be printed
 in Croatian magazines in the

October edition.
10 January, 2022 Evaluation and Final Results The whole report will be

generated and compiled using

the media and brand

awareness statistics and final

report be availed by 20th

February.
Table 03: Timetable for communication campaign.

EVALUATION AND FOLLOW UP

Campaign Media used (Reason) Goals Attained ?

Campaign using video clips Short videos containing Gucci Helped in promoting the brand

brand images and product image and increasing brand

descriptions to be displayed on awareness.

YouTube channels, other

online platforms as well as the

Croatian e-commerce

websites.
Photo Campaign Photos of Gucci brand and its Helped to increase brand

products will be printed on awareness, and promoted the

various catalogues and brand image.

distributed from the stores to

customers.
Digital Marketing E-commerce websites and Increase sales, brand

social media platforms such as awareness and revenue.

 Facebook, Twitter and

Instagram will be used to

attract the young consumers

who frequently used these

social media platforms.

Table 04: Evaluation and follow up

CONTIGENCY PLAN

Campaign planners will have to go back to the original strategy of Gucci Fashion in case the

propose plan does not work accordingly, and errors becomes a challenge to correct to ensure that

the objectives of the proposed plan achieve its objectives. Ideally, this is due to the fact that

Gucci has been doing well in other countries especially in Italy.

PROPOSED COMMUNICATION PLAN

Objective of Campaign

There are three primary objectives for Gucci brand campaign. First, the focus is to ensure that the

brand penetrates into the Croatian market. Secondly, marketers wishes to increase brand

awareness among the customers, and finally, the brand focuses on increasing sales and revenue.

Notably, Gucci is located in metropolitan cities in Croatia, and penetrating the new market will

enable the company to increase its global market share, and consequently its revenue. Notably,

Gucci has had successful sales in Italy, Europe and other countries globally. Therefore entering

in the Croatian market would be an active strategy to increase its sales, brand exposer, market

share and revenue. Currently, Croatia enjoys a long period of political stability which makes it

possible for business to thrive. Besides, the tax policy in the country is also favorable which
enable business to flourish. Moreover, the Croatian government is also positive and encouraging

foreign investments, which give foreign investors easy ways to invest in the country. Notably,

since Gucci is focusing on high social class customers, its stores will be located in high-end

markets to ensure it reaches its target customers. However, Gucci brand also have a strong

marketing strategy which will enable it to penetrate easily in the Croatian markets.

Campaign Information

Ideally, Gucci brand mainly focus on providing luxurious products mostly for the

young customers from high social class. Therefore, the brand will ensure that its

core brands mainly for the young customers. Notably, that will include precious

footwear, handbags, clothes and jewelry products. However, the main theme

behind the marketing plan is to create awareness for Gucci products to ensure that

most customers associate with the brand. However, the company will also focus on

Theme advertising its products online since most of the target customers are frequently

and using online platform to look for products to purchase.

Message

used in

Campaign
 Notably Gucci stores will be located in high-end cities in Croatia where the target

customers are located. However, stores are creatively decorated to create a quality

Campaign image in the mind of consumers As shown in appendix 0.5. Moreover, the

Location. handbags are attractively displayed in the stores to attract potential customers.

Besides, the company is known for its collaboration with high quality designers.

Therefore, the company will ensure that it collaborate with other designers in

Croatia to help in designing handbags.

Table 05: Campaign information

Pre-Launch

For this campaign, Gucci brand will invest highly on online marketing to ensure that it reaches

its target customers. Ideally, the digital platforms will reduce the cost of marketing and increase

brand awareness within a short period.

Promotional Activities Done Online

Facebook Gucci will create a Facebook page that will enable customers to follow

and see the products offered. Consequently, photos and short video clips

will be posted on the created Facebook page to allow customer to

virtually interact with Gucci products. Option for live streaming will also

be available for customers to stream live products from various stores.

Twitter Gucci will post photos and videos on its Twitter account. Besides,

information about Gucci campaign will also be twitted, and customers

will use #guccicroatia to access such information.

YouTube Gucci will use esthetic films to post videos on its YouTube channel.
Official Website Gucci will have its official website where it will be posting its blogs ad

advertisement information.
 Print Magazines Gucci will use the official Croatian magazines to print photos, blogs, and

advertisement information.

Table 06: Promotional activities done online.

Public Relation Planning

Gucci will create a public relation team which will help in communication planning, and invite

gust and assist in the preparation of the event. Besides, the public relation team will prepare and

offering press kits and press release for guests. The guest list consists of highly influential in the

fashion and creative industries as shown in the appendix 0.6.

Evaluation of Campaign Effectiveness

After the end of the campaign exercise, research marketers will collect and analyze the data

collected to determine the effectiveness of the campaign. However, marketers will also examine

the stores to determine the traffic increase. Besides, the marketers will also focus on social media

statistics to determine sales done as a result of social media campaign.

Conclusion

In conclusion, Gucci product has a strong brand name which makes it easy to penetrate in many

markets. Besides, the company has invested on social media campaign which will ensure that it

reaches its target customers. Furthermore, the company has also maintained the quality of its

handbags to ensure that they remain more appealing to customers. Therefore, it will be easy for

the company to promote and increase market share for its handbags. Ideally, Gucci has built its

brand image for a long period, associating the brand with the wealthy class, which makes its

customers happy. Therefore, many customers from the wealth class love associating themselves

with the product.

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Appendix

Appendix 0.1: Ansoff’s Matrix (Loredana, 2017)

Appendix 02: Bowman’s Strategy Clock (Desai, 2019).

Primary peer group

Gucci Fashion
Marketing Mix
Secondary peer group

High income class

Social media group

Influential individuals

Appendix 0.3: Target Segmentation

Appendix 0.4: Handbag (Armitage, Roberts, and Sekhon, 2017)

Appendix 5: Gucci Store (Badrinarayanan and Becerra, 2017).

John Konne- Fashin and design model from Rijeka

Konte Albert- Zagreb Fashion and design director.
Gibson Bruce- Italy creative model.
Hellen Stephaney-Zadar Fashion model
Pheobe James- Kotar fashion director
Appendix 0.6: Invited guests

Situation Analysis

External and Internal Marketing Environment

Gucci is an Italian fashion brand with its base in Florence, Italy. Ideally, it deals in products such

as handbags, footwear, fragrances, home decorations, accessories among other things. Notably,

Gucci was founded in 1921 by Guccio Gucci in Florence, Tuscany. Since then, Gucci has grown,

and in 2019, Gucci was operating 487 stores worldwide.

PESTEL Analysis

Political Factors Economic Factors

Gucci brand has not taken into account much Economic factor of Gucci focus more on the

of political implication into account across all purchasing power of customers.

countries (Matovic, 2020). Notably, Gucci encountered a couple of

However, Gucci has faced negative implication economic challenges including skimmed prices

regarding import, export and increasing cost of and high insurance purchase.

operations. However, Gucci positive contribution has

resulted to increasein GDP as well as the living

standard(Matovic, 2020).

However, unstable currency has also

discouraged international investments.

Social Factors Technological factors

Gucci has faced serious social activist Notably, various technological advancements

condemning its policy to use raw material for affect the market coverage, making it difficult

its products, since it is believed to focus only for a brand to target niche customers.

on the high end customers. Therefore, the company is focused on

However, it has been difficult for a brand like improving the efficiency of its production and

Gucci which produces expensive products to logistics in its daily operations by applying

promote its products to the general public if various technological innovations(Matovic,

while the majorities are of low class. 2020. Besides, the brand has also expanded its

marketing awareness by investing on online

platforms such as YouTube, Facebook,

Twitter, and Instagram

Environmental Factors Legal Factors
 Gucci has always held on opinion that Notably, Gucci is a brand that strictly abides

conserving the environment is mandatory for by the laws and regulations giving customers

the planet and to ensure competitiveness. their unique products in the market. Besides,

Therefore, the company has taken the the company also ensures fair treatment of its

advantage of its brand name that has been so employees, and protects its products from

influential to produce products using other raw infringement. However, Gucci has been

materials apart from animal products to ensure involved in legal battles with other companies

they conserve wildlife(Matovic, 2020). including Forever 21 over the Gucci trademark

blue-red-blue and green-red-green stripe

webbing.
Table 1: Gucci PESTLE Analysis

Porter’s Five Forces Model

Bargaining Power of Suppliers

Notably, for products that have unique materials and techniques, the bargaining power of

suppliers may be medium-low. However, for luxurious products such as Gucci handbags, the

bargaining power for suppliers will be higher since the product is made of high quality raw

materials (Adelakun, 2020). Therefore, it may be difficult to replace the suppliers.

Bargaining Power for Customers
Since Gucci handbags are luxurious product that has its exclusivity, customers may have very

minimal power, and they cannot influence prices(Adelakun, 2020).

Threats of New Entrants
Since Italy is reducing the tax of value-added tax, threats of new entrants may be intermediate.

Therefore, the cost of entrance for brands will be reduced, and the intention of customers to buy

products will increase.

Threats of Substitute
Notably, there may be higher threats of substitute in the fashion industry due to rivalry.

However, for strong brands such as Gucci, such threats may be set at medium-low level since
 they sell products of high quality and prestige(Adelakun, 2020). Therefore, customers always

want to associate themselves with Gucci products.

Industry Rivalry
Notably, the level of rivalry is high due to strong competitors such as Hermes and

Prada(Adelakun, 2020). Besides, most competitors have also adopted the digital platform to

market and promote their products. Therefore, this affects Gucci strategy to use the digital

platform to increase its brand awareness.

Table 2: Gucci handbags Porter’s Five Forces Models

Competitors and Competitive Environment

Competitors Competitors Analysis

Hermes Since the company has realized that it also

produce luxury products, it has been targeting

the wealthy customers (Cabigiosu, 2020). The

company also engages in frequent

advertisement and promotions on the online

platforms to ensure it increase its brand

awareness.
Prada Prada is also using the online platform to

increase its brand awareness. Besides, it target

customer of high social class by producing

most expensive handbags(Cabigiosu, 2020).

Table 3: Gucci handbags Competitor Analysis

Business Model Canvas

Key Partners
Notably, Gucci company has partners with other designers such as John Ray and Alessandra
 Facchinetti to continue the success of the company flagship label (ROSTICCL, 2019). This

corporation will enable Gucci to protect its brand image and easily penetrate the Croatian

market.
Key Activities
Gucci should ensure that it areas a strong relationship between its brand and the Croatian

customers(ROSTICCL, 2019). Ideally, that will enable the company to expand and increase its

market share.
Key Resources
Notably, Gucci uses expensive resources such as leather and synthetic materials. Besides, it uses

highly skilled craftsmen to design handbags and ensure it produces high quality

handbags(ROSTICCL, 2019).
Value Propositions
Gucci designed valuable handbags for women to store their personal items whenever they are out

of their homes or as they travel.

Customer Relationship
Gucci company provide customers with delivery services, and ensure care to improve their

relationship with the customers(ROSTICCL, 2019).

Channels
Gucci distribute its products through the retail store, consignment companies and personal

delivery services. Ideally, these channels allow the company to increase its connectivity with the

customers.
Customer Segment
Gucci mostly focus on selling handbags to women between the ages of 20 to 35 years.
Cost Structure
Notably, manufacturing cost is the main fixed expenditure for Gucci handbags(ROSTICCL,

2019). Ideally, the products are made of expensive leather materials which increases the

production cost.
Revenue Structure
Gucci earn its revenue by selling its products through the various channels.
Table 4: Gucci Business Model Cavas

Target Market Profile

 Geography
Notably, as a luxurious brand, Gucci targets wealthy customers. Therefore, it has located its

stores in high-end towns such as Ogulin, Gospic and Knin (PELTEKOGLU, 2019).
Demographic
Notably, Gucci puts more attention on the young customers, and for the handbags, Gucci focuses

on young women between age 20 and 35 years.

Socioeconomic
Gucci targets wealthy customers who have a relatively high-income. However, in terms of

occupation, they include students and business women(PELTEKOGLU, 2019).

Psychographic
Notably, there is high collectivism and hierarchy in Croatia which affects the purchasing culture

of customers(PELTEKOGLU, 2019). Therefore, most Croatian customers purchase luxurious

products to show their social status.

Table 5: Gucci Handbags Target Market Profile

Brand Position

Notably, Gucci identifies itself as a luxurious fashion brand. However, in as much as it now has

an established image of high-end fashion brand, the company continues to change, experiment,

and bring new styles and combinations of influences to its products. Currently, its brand position

is as shown in the diagram below. Notably, in terms of style, Gucci is more fashionable than its

competitors. However, on the digital marketing, Hermes may be the most competitors.
Figure 06: Gucci Brand position (Micco, 2021)

Brand Value

Gucci position itself as a company that produces most expensive and valuable handbags (Shao,

Grace, and Ross, 2019). It uses most expensive materials to produce its handbags to ensure that it

appeals to its target customers.

Current Marketing Mix

Product
Gucci produces expensive handbags made out of expensive leather materials.
Price
Due to high quality of the handbags, and high cost of production, Gucci charges high prices for

the products which can only be afforded by the wealthy class.

Place
Logistics

Gucci handbags are mainly manufactured in Italy and distributed in other stores worldwide

(Gesualdo and Antonella, 2019). However, the company has partnered with other designers to
help in designing the handbags to meet the taste of customers in specific countries.

Sales Channel

Gucci mainly sell the handbags through the retail store and personal sales agents who help to

deliver products to customers and build the brand image.

Promotion
Notably, most of the promotions are done through the retail store and the digital platform.

Ideally, digital platforms such as Facebook, YouTube, and Twitter play an essential role in

displaying the products to the customers virtually.

People
Gucci has a total of 48 workshops in Italy that produce exclusive products for customers.

Notably, the company has approximately 50, 0000 employees who help in the production of high

quality handbags for customers.

Process
Processes before Purchasing

Customers may contact the company through email that they want to make an order(Gesualdo

and Antonella, 2019). Therefore, they are supplied with a variety of product profiles to help them

make decision on which product they want to purchase.

Processes after Purchasing

Products are delivered to the customers. Besides, there are returning services available for

customers.
Physical Evidences
Website
Figure 07: Gucci Website (Nikam and Wankhede, 2019)

The above figure shows the official website that Gucci uses to reach out to its customers to

ensure customers gets the opportunity to interact with Gucci products virtually.

Figure 08: Gucci store (Dai, 2019

The above figure represents the one of the Gucci stores where goods are stored for customers to

come and make purchases.

Figure 09: Gucci Packaging (Mane and Martinez-Belkin, 2017).

The above figure show how Gucci products are packed before they are finally dispatched to

customers.

SWOT Analysis

Strength Weakness
  Gucci has strong brand image and  Gucci has invested a lot of money to

brand equity in the fashion industry protect and retain brand image.

worldwide(Dai, 2019)..  Gucci encounter losses due to face

 It has a very effective distribution cheap imitations(Dai, 2019)..

channel.

 It has a strong value chain with

suppliers and retailers.

Opportunities Threats
 Gucci is capable of taping emerging  Substitutions of the products are easily

luxury markets in emerging economy accessible.

like china, India and African  Global price fluctuation is likely to

countries(Dai, 2019). affect the prices of the brand(Dai,

 Creating a competitive advantage in 2019).

different business segments can also be

Gucci’s opportunity.

 Getting the young generation that

appreciate design.