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Gucci examine how brand theories or models apply in practice to the organisation assess how they use differentiated or undifferentiated marketing strategies f - Essay Example

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Fashions, by their very nature, come and go, but fashion houses must simultaneously control and ride the vicissitudes of the industry. Gucci is a global retailer of luxury, high quality fashion items: handbags, small leather goods and luggage, shoes, ties and scarves, RTW, watches and other personal items such as key chains, money clips, pens, etc…
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Gucci examine how brand theories or models apply in practice to the organisation assess how they use differentiated or undifferentiated marketing strategies f
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Extract of sample "Gucci examine how brand theories or models apply in practice to the organisation assess how they use differentiated or undifferentiated marketing strategies f"

Download file to see previous pages The main marketing strategy of Gucci is "designed to maintain a high profile and consistent visibility". This involves constant marketing of its products and image, which keeps the company constantly discernible to customers and the fashion world. To achieve this, Gucci has started increasing communications expenditure in the last 3 years, and is planning on continuing the increase of its marketing budget.
Gucci's products and marketing methods are not tailored according to national needs or customs. It aims at reaching the growing global market segment of the rich and "newly rich", among which groups a homogenization of taste for luxury products has been detected. This
group is a true example of the emergent phenomena of the global marketplace, where needs and perceived benefits are common from the USA to Europe to Japan. This global market segment's price elasticity is low, meaning that they are not affected by changes in prices. They see price as an irrelevant factor, and shop for luxurious, high quality brand names. I once read a report that quoted the CEO of a luxury goods company, as he stated that it is simpler to increase prices of luxury goods than to lower them, as this is what consumers expect.
Since Gucci has several rival firms on a glo...
Since Gucci has several rival firms on a global scale, it coordinates its marketing activities with careful timing and placement to achieve maximal penetration of its core message: the luxurious and fashionable image of all Gucci products. Gucci advertises in national and international fashion, lifestyle and business magazines. Advertisements are timed to appear at the start of buying seasons, where customers will be looking for fashion items to purchase for the coming season. This is effective use of advertising, since the ads appear at times of the year when customers are open to receive such messages.
Direct Marketing
Gucci publishes product catalogues and makes them available to existing and potential customers. These catalogues should be sent out via mail to the companies customers, and be reachable by potential customers at e.g. prestigious hair saloons, etc. Direct mail should also
be sent to the wealthier people in each of the countries where Gucci pursues business activities, thereby making it convenient for the potential customers to familiarize themselves with Gucci products and even order through the order sheets provided in the catalogues. Gucci has set up PR offices in the fashion capitals of the world. Their job it to make local and international fashion press deal with Gucci as much as possible. (Silverstein, 2005, 155-63) Holding four seasonal fashion shows yearly, where the newest Gucci models are unveiled, also backs this. These shows are also good opportunities to appear in fashion press and other magazines.
Tom Ford, the creative director of Gucci has been molding the company's image at his will. Gucci sells an attitude, as does all fashion today. Fashion is all about beauty, desire and sex and this is why Gucci's image is so ...Download file to see next pagesRead More
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