Kering Group’s Gucci: The Potential Of Luxury Brand

Table of Contents

Here is an introduction.

Gucci is a company that is influenced by two of the most important marketing environmental factors

Gucci can turn around its performance

Gucci Pricing and Ethicality

Future and Current Target Market

Benefits and effects of multi-channel marketspace for luxury brands

Multi-Channel MarketSpace has many benefits

In conclusion,

An opening

Gucci by Kering Group has been a luxury brand since 1921, selling elastic luxury products to a highly-competitive market. It targets high-income groups that appreciate sophisticated fashion and quality. Gucci’s positioning, direction and leadership needed to be renewed after their “three consecutive quarters in decline” and the loss two of its top executives at the close of 2014. Gucci’s core marketing abilities must be used to analyze and improve its performance.

Gucci’s Top Two Marketing Environment Factors Gucci’s marketing strategy must be updated to keep up with technological advancements in the macro-environment. Social media is an ever-growing marketing opportunity. More than half of U.S. adults use it regularly. Gucci can expand its reach and brand awareness through technology. This includes millennials. Millennials are three-times more trend-conscious than previous generations. Gucci has to invest more in ecommerce as the future generations become increasingly dependent on social media. The company’s ability to reach them was severely affected by 2014 when key executives left Gucci. This caused financial and strategic issues for the company. Marco Bizzari was the new CEO and had to pick the creative director for 2014. This presented a unique opportunity for Gucci to select a new creative director in 2014. This was a crucial decision as it would affect Gucci’s success and the relationships of shareholders. Alessandro Michele is the most appropriate candidate, as he has been part of Gucci’s creative department for more than ten years. His unique designs will perfectly fit the Gucci route of success, modernity and trendiness. Because consumers are influenced by the company first, it is important that their capabilities improve. Gucci must place emphasis on customer satisfaction that is consistent with its core competencies. Gucci’s Performance Must be Turned Around. Gucci must improve its performance by reducing operational costs and increasing revenue. Bizzari will need to relaunch the brand with new products, increased social media exposure, and a decrease in price. Gucci can increase their customer relationship through social media. They will get customers to participate in ‘Instagram Stories’ votes, give away exclusive sneak peeks into the new products, as well as show them how to use their Instagram feed. The partnership with celebrities who are well-known for their social media presence could help to enhance this marketing platform. This will boost the brand’s popularity, create a new trend and increase brand awareness. However, it can also pose a risk if Gucci presents the brand’s values differently. This opens the door to customers talking with Gucci. It gives them insight into their needs and behavior as well as their opinions about products. Gucci builds customer loyalty by including consumers in the decision making process. Bizzari needs a plan in place for how to handle bad word ofmouth. As 84% rely on the content they read on social networking sites, Bizzari has to be mindful of this possibility. For better performance, it is important to use a wide range of digital tools. The younger generation is more environmentally and socially conscious. Sustainability is key to retaining customers and attracting new generations. It is vital that a company is product-focused to ensure high quality products. Infusing their most beloved pieces into new products and making them sustainable can restore the brand’s image and help meet emerging trends. It is essential to be careful not to increase production costs. Gucci pricing is a great way to increase the brand’s prestige. However, Bizzari/must look at other options to preserve luxury status so that prices can be decreased. This would allow younger generations to purchase the products at a lower price and give them a better brand association. Personalization can compensate for any loss of exclusivity. It is not haute couture but it creates a sense of exclusivity for all target groups. Gucci Pricing and Ethicality Gucci targets are a group that values quality, design and sustainability. They also adhere to ethical codes of business practice in their supply chain. With the increasing demand for eco-friendly products/services, Millennials expect brands that reflect their values. Gucci provides what its customers want, which means a high quality product, good design, transparent service and shared moral and ethical values. Future and Current Target Markets are crucial to a company’s success. The current customers (2013-2015), are middle-aged shoppers who are interested high-end fashion trends. They belong to the upper-income segment. The steady decline in revenue is a sign of this concentrated market. Their goal is to be successful by creating, delivering and capturing value, as well as introducing new lines to appeal to different demographics. Gucci’s future would see a global expansion to the younger generation, particularly millennials. This will increase awareness of Gucci worldwide and spark curiosity. The brand will be able to quickly increase sales as it appeals to a wider range of customers. The brand will have a new look and feel refreshed by the introduction of products that are linked to current social trends. Gucci will have the ability to fulfill its value proposition. Their production costs will be less than the value of the products to consumers. This will allow Gucci to offer superior customer service and packaging that invites more customers as they purchase the product as well as the luxury experience. Gucci’s profit margins are not sufficient to support the current target market segment. Benefits and effects of multi-channel marketspace for luxury brands. Gucci, like other luxury brands, can communicate with their target segments through multiple channels such as email, websites, and retail. This space offers both benefits and potential pitfalls.

Multi-Channel MarketplaceSpace Benefits

Multi-channel marketing lets luxury brands reach the right channels/stores at the right prices to satisfy consumers’ demands. It is possible with integrated CRM.

Consumers will find it easier to choose the channel they prefer, e.g. Shop, browse and order products from your own home.

Marketers can personalize recommendations to suit the preferences and likings of their customers. This information can be derived from customer data collected online, which provides insight into consumer behaviour.

Increases market presence and brand competitiveness * Luxury brand consumers have high standards for the product and the service. Online shopping must reflect the same high standards as in-store. Otherwise, brand image could be damaged.

It is possible that consumers won’t be able get the full brand experience in-store. They can only be immersed in it through atmospheres, highly skilled staff, presentation and training.

Stock and product location should not be compromised.

Brands that don’t keep pace with social and technological advances will lose their competitiveness and customer loyalty.

Pricing can be inconsistent – it could affect the product’s prestige

Multi-channel marketing space has the potential to influence customer decision journeys and marketing strategies for luxury brands. There are four basic marketing strategies: price, promotion, product and place. Multi-channel markets require that the company ensures that all channels, retailers, eCommerce sales, and other marketing activities don’t undermine the coherence among the p. To maintain Gucci’s brand image, distinctiveness, and high-class experience, all channels must transmit that same Gucci experience. Consumers make decisions by recognizing their needs, comparing products, selecting the right product, and evaluating their choices. Consumers decide what product they want and where to purchase it. The brand recognition that can be achieved through multiple platforms is key to this decision-making process. Gucci offers consumers the ability to search, compare, and decide on the best product for them through both online and in-store. ConclusionGucci could be the leading luxury brand. Marco Bizzari, the CEO, should revive the brand by introducing innovative products and pricing to keep it relevant to current consumer needs and wants. They cannot compete with their low prices and narrow target market if they don’t change their ways. This will put a strain on their ethics and make them look bad. They can expand their reach online and cut down on their operational costs. Gucci’s financial difficulties will not be solved if Bizzari does not lower its prices or find new ways to showcase their status.


  • codyyoung

    Cody Young is an educational blogger. Cody is currently a student at the University of Utah pursuing a degree in communications. Cody has a passion for writing and sharing knowledge with others.



Cody Young is an educational blogger. Cody is currently a student at the University of Utah pursuing a degree in communications. Cody has a passion for writing and sharing knowledge with others.

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