SITI NUR ATIKAH BINTI HASHIM

2017521327
NBS9A
INDIVIDUAL ASSIGNMENT – CSM451

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 Weaknessess

- Leader did not give up easily when
business gone down, and make
changes to a better. This was stated
in the case when Domenico De Sole
as COO and Tom Ford as creative
director reinvent Gucci .
- Strong team. This was stated in the
case when, the seven Gucci
operating companies finally combined
for the first time Gucci under
Investcrop’s guidelines
- No upholstery leads the field. This
was stated in the case when Tom
Form departed the company. Without
Tom Ford, Gucci will always have a
big hole in their brand image. They
already tried to replace with good
designers but it was not easy.
- Price of product was very
unreasonable. As stated in the case,
Maurizio try to bring up the company
again, however with his lack of
business and analytical skills makes
him raised price. “The price points of
the products were competing against
Chanel or Hermes; however,
customers valued less.”

Opportunities
- Leader was good in looking for
opportunity. As stated in the case;
“De Sole was a smart businessman;
he saw the need to restructure the
whole company.”
- Leaders was good at remaking the
brand. This was happen when De
Dole and Ford decided to focusing on
fashion where Gucci’s target
customer was shifted.
Threats
- In 1930, Gucci began to face
challenges, due to sanctions imposed
on Mussolini. This has cause
shortage of imported leather. Gucci
need to use new material such as
canvas in order to meet demands.
- Economic crisis has made the whole
industry suffer.sales were dropping in
that time forcing Maurizio out.
SITI NUR ATIKAH BINTI HASHIM
2017521327
NBS9A
INDIVIDUAL ASSIGNMENT – CSM451
(16 marks)

2. Based on the case study, describe the major business issue/problem face by the
business and elaborate its main cause.

Major business issue faced by Gucci is that they have internal conflict. Most of the
conflict was regarding the strategy and control of the company. Furthermore, the
leader was died with no good replacement. Gucci was controlled by Maurizio which
have lacked business and analytical skill that has caused a failed leadership.

(4 marks)

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.

Learning customer’s perception is important because perception always developed

over period of time and it reflects the way we have been treated, our values,
priorities, prejudices and sensitivity to others. When Maurizio lead Gucci, he raised
price, reduce and control distribution making price higher, which in result making
customer valued less on Gucci’s product. This is why it is important to learn
customer’s perception because with the analytical skills and understanding towards
customer, company may make corrective action towards customers problem, and
perception.

(4 marks)

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.
SITI NUR ATIKAH BINTI HASHIM
2017521327
NBS9A
INDIVIDUAL ASSIGNMENT – CSM451
Star-designer strategies in Malaysia are actually already happen often. We can see
in social media especially in Instagram; where famous musician, and actor promoting
or reviewing product or services. Musician and actor basically have huge number of
follower so some product brand would like to promote or over exposing their brand to
public in this way to gain view and order. This method was helpful to make customer
aware of the brand. However, this method use costs such as giving away product for
free and paying extra fees to the musician or actor. Different from basic method;
which using brochure, websites, and social media in its own platform, star-designer
strategies often better option than the others.

(6 marks)