UNIVERSITI TEKNOLOGI MARA PUNCAK ALAM

Faculty Of Business And Management Bachelor In Office Systems Management

(BA232)

CSM451 - CUSTOMER SERVICE PRINCIPLES

INDIVIDUAL ASSIGNMENT

Case Study of GUCCI: Transformation of Luxury Branding

Prepared For:
Madam Rahayu Binti Hasanordin

Prepared By:
Amir Hamzah bin Rahmat (2017119049)

CSM451/JUNE2021/RH
Answer all questions.
1. Based on the information collected (current situation of the organization) provide
analysis about the SWOT; strength, weaknesses, or threats face by the company and
what are the opportunities identified for the company. 2 points each (ie, strength 2
points, weaknesses 2 points etc). Each point is explained in one complete sentence.
Present your answer using SWOT analysis template, example below.

SWOT Analysis
Strength
 Innovation, strategic management,
and iconic models like Ford and De
Sole are just some of the ways
Gucci can turn a problem into a profit
by using leather to produce their
products, being strategic by hiring
professional managers or smart
businessmen to run grand plans that
benefit customers and change
customers' perspectives and using a
variety of methods to ensure quality
throughout its network.
Weaknesses
 Despite his grand plan, Maurizio
lacked business and analytical skill
to rebuild the company and causes
of this situation Gucci’s reputation
was severely destroyed that it was
hard for the customers to see it as a
luxury brand.
 When Maurizio was a CEO of
GUCCI, they has lake of money and
need to support by Investcrop.

 De Sole and Tom Ford have come

together to create something truly
special. It was Tom Ford who
handled the design while De Sole
worked on improving Gucci's
manufacturing and delivery
processes.

Opportunities
 Gucci should also make a serious
effort to appeal to the youth market
with unique and imaginative designs
and products.
 The breakdown of Gucci was a
turning point in the brand's history,
and Tom Ford had a significant part
in reviving it. In addition, he raised
the entry hurdles for the luxury
business by selling not just products
but also the image of the company
Treats
 The importance of the customer's
opinion was lowered. Customers
find it difficult to recognise Gucci as
a luxury brand, despite the fact that
its prices are competitive with those
of Chanel and Hermes, and the
industry as a whole is experiencing a
recession.
 The designers uniqueness and
identity is extremely strong in the
recent years in fashion industry, it
can give negative effect for the
brand image and may possibly
struggle with the brand identity
without the designers

(16 marks)
CSM451/JUNE2021/RH
2. Based on the case study, describe the major business issue/problem face by the
business and elaborate its main cause.
(4 marks)
Internal conflict was at the root of the company's biggest problems. As we can see that
from case study in 1970’s Gucci began to break down owing to internal conflict which
is the struggle was between Aldo and Rodolfo Gucci, the founder’s surviving sons over
strategy and control of the company. After one year Rodolfo Gucci died, Maurizio
gained leadership over Gucci and vowed to develop Gucci into a modern retail
organisation. Unfortunately, he failed. He did what any businessman would do: he
resurrected the enterprise. Reducing and controlling distribution, as well as buying
back franchises to prevent overexposure. Due to the absence of commercial and
analytical skills of Maurizio, the company could not be rebuilt. The cost of goods was
unreasonably high. Although the products' prices were comparable to those of Chanel
and Hermes, they were valued by customers as being of lower quality. Customers lost
faith in Gucci as a luxury brand when the company's image was tarnished so badly.
Maurizio neglected to account for the viewpoint of the customer.

CSM451/JUNE2021/RH
3. “Gucci’s reputation was severely destroyed that it was hard for the customers to see it
as a luxury brand. Maurizio missed one critical aspect which was the customer’s
perception.” Refer paragraph 4.
Explain perception. Based on your opinion why learning about customer’s perception
is important to organization, when it has destroyed Gucci reputation.
(4 marks)

Based on my opinion, customer perception is important to any brand because it affects

everything. Customer perception plays an important role, from understanding the
customers to communications and advertising, their buying decisions, their loyalty, the
extent to which they recommend a brand and, even more, their advocacy efforts.
Customer perception enriches the brand value and brings more possibilities for
business.

CSM451/JUNE2021/RH
4. Another critical marketing strategy for Gucci was to “make Tom Ford a star”. Tom Ford
happened to fit the new image of Gucci at that time which was edgy, sexy, feminine
and trendy. He got great physical appearance, handsome and, he was the star behind
the new Gucci. Tom Ford’s lifestyle was exactly cohered with Gucci’s new image and
Ford became the iconic symbol for Gucci.
In Gucci’s marketing plan, there were many risks involved with making Tom Ford a
star of the company. Some questions to consider when developing their “star-designer
strategy” – “what happens when there is no more Tom Ford in the company? And “was
Ford given to much power and publicity?”. Tom Ford became a huge star of the
company..
Refer to the above statement, give your opinion on making “star-designer strategy” in
marketing your brand to customers. Relate the strategy to businesses in Malaysia as
it becomes a trend to business owners to come to be the star of their business or
brand; promoting/over-exposing themselves carrying and using their
products/services.
(6 marks)

Using a "star-designer strategy" to promote your company's brand to potential buyers

is, in my opinion, an extremely efficient and quick method of marketing. This is
because, buyers find it simpler to believe the thing we offer whether it is a tangible or
intangible product through the example shown by the seller of the item. Many product
entrepreneurs have emerged as a result of Malaysians' growing reliance on internet
sales and the accompanying economic challenges, and they now sell their own items
both offline and online. For example, is Naelofar Hijab, where the company is owned
by Neelofa which is a Malaysian actress. She is very fabulous; she is the face of her
own brand. She even approaches her customer randomly whenever she saw they wear
her products especially her tudung lines. The appreciation from the owner brand makes
the customer feel really appreciated and she even allowed them to record or take
selfies with her and even post it to social media.

END OF QUESTION

CSM451/JUNE2021/RH