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The marketing strategies of Gucci
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The Marketing Strategies Of Gucci
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History of Gucci
Gucci is an Italian luxury fashion brand which is owned by French company Kering. The founder of the Gucci brand, Guccio Gucci opened his first own leather goods store in Florence in 1921.
Background
information
In the beginning, Gucci’s main business was making luggage. Then, slowly grew to expand into clothing, shoes, handbags and more.
With stable development in the past 25 years, Gucci's market value has now reached $ 15.9 billion.
Gucci's marketing strategies
Gucci as one of the representatives of luxury brands, it has three main marketing strategies.
Marketing
strategies
Social media
Social media
Since 21th century, social media has been widely used by fashion brands. Gucci uses social media like Facebook, Instagram and Twitter to showcase its products and build stronger relationships with their customers.
There are around 15 million followers of Gucci on Facebook and more than 5.5 million followers on Twitter. Gucci uses these two platforms for real time marketing and discount marketing.
Gucci has more than 33 million followers on Instagram. Unlike Facebook and Twitter, it uses this platform for brand promotion as well as user engagement.
Distribution
strategy
Distribution strategy
Gucci distributes its products through company-owned stores, e-commerce sites, wholesales and retails. Gucci operates in Europe, North America, Asia, Middle East, Australia. It has over 500 directly operated stores.
In addition, Gucci has a directly operated online store which works in 28 markets. Online store make it possible for customers who live in no physical store to purchase products.
The distribution strategy makes Gucci's supply chain more efficient, has more opportunities to attract potential consumers, and provides better services to maintain customer loyalty.
Pricing policy
Pricing policy
In fact, Gucci’s offering are symbol of Italian craftsmanship and are known for its quality, modern outlook and attention to detail.
Gucci mainly provides high-priced products. The price of clothing depends on the quality of the materials and the work done on the clothing.
Gucci maintain pricing policy and maintain high prices for finished products under Italian-made trademarks. High prices are a sign of using the highest quality materials and products to meet the needs of the social elites. The brand name is associated with a high-quality image, and the price makes the product a status symbol.
Issues
suggestion
More comprehensive use of media
More comprehensive use of media
YouTube is also a social platform with many users, and the company can promote its brand through the release of product videos and advertisements. Although the influence of newspapers and magazines is far less than before, it can still be used as a media to promote consumers in the middle and old age groups.
More comprehensive use of media ensures that brand promotion can reach consumer groups of all ages, better expand brand influence and attract potential Consumers.
Make appropriate adjustments to distribution strategy
Make appropriate adjustments to distribution strategy
Each Gucci store is generally located in core location, it means stores need to pay extremely high rents. in order to maintain the gorgeousness of the interior decoration and the visual impact of the exterior, stores had to invest a lot of money in this aspect.
However, not every store can make a profit that exceeds costs. In this situation, Gucci need to consider closing some stores that are at a negative profit, it can reduce operating costs.
Properly reducing the number of physical stores and continuing to develop online shopping can not only reduce Gucci's operating costs, but also satisfy the needs of the times and advance with the times.
Make some appropriate discount sales
Make some appropriate discount sales
The high price and high quality market position make Gucci's customer group relatively single and lacks the ability to attract other consumer groups. This situation makes it difficult for company to expand profits.
Gucci could try to offer discounts to attract some potential consumer groups and enhance sales and keep their loyal customers happy.
Gucci can try 10% or 20% off. In addition, the frequency of discount activities should be strictly controlled, once a year or twice would be reasonable.
Conclusion
Gucci’s three marketing strategies help Gucci maintain global influence, maintain brand positioning, expand customer engagement, and build strong relationships with customers.
But it should still be noticed some issues about these marketing strategies. To handle these problems, Gucci should more comprehensive use of media, make appropriate adjustments to distribution strategy and make some appropriate discount sales.
Conclusion
Reference
Reference
O'Connell, L. (2019). Global revenue share of Gucci 2012-2018, by region. Statista. https://www.statista.com/statistics/267733/global-revenue-share-of-gucci-by-region/
Prantl, D & Milk, M (2019). Analysis Of The Significance Of EWOM On Social Media For Companies. Liberec, 22(4), 182-194.
Pratap, A. (2019). Gucci Social Media Marketing Strategy. Notesmatic. https://notesmatic.com/2019/04/gucci-social-media-marketing-strategy/
Randozzo, W. (2014). Developing Successful Marketing Strategies. Business Expert Press, 49-62.
Silver, D. (2019). Charting The Evolution Of Gucci. Crfashionbook. https://www.crfashionbook.com/fashion/a26934683/evolution-gucci-designer/
Yan, H & Qu, X (2014). Research On The Marketing Strategy Of Luxury Goods. Contemporary Logistics, 11(15), 42-46.