CRITICALLY CONTRAST THE KEY ELEMENT OF GUCCI’S MARKETING STRATEGY TO ITS CLOSEST COMPETITOR. JUSTIFY WHY YOU HAVE CHOSEN THIS COMPANY AS GUCCI’S CLOSEST COMPETITORS
Gucci is one of the most powerful leaders in luxury fashion market. Gucci is founded by Guccio Gucci in 1921 in Florence, Italy. Now, Gucci is the part of Gucci Group and Pinault Printemps Recloute (PPR). The globalization of the fashion environment and boost in the western economies transform Gucci from a small Italian company in to large luxury fashion brand in global level. In 1980s, Gucci had lost its appeal and became a tacky brand and was also in deep financial crisis. But Tom Ford raised Gucci from dead and found out the company’s leading status and maintains their customer loyalty. He created Gucci’s image as: sleek, sexy, and daring. And, Frida Giannini the new creative director of Gucci after Tom Ford changed the image of Gucci from sexy to sensuality. There are two sides to a brand like Gucci: the glamorous, very fashionable side but also with its roots and heritage of 90yrs history and artisans working for Gucci. (Frida Giannini , The Times, sept 5, 2009)
For the Gucci’s rebirth marketing mix plays a vital role. The concept of 4Ps or the marketing mix is to explain the relationship of product, price, promotion and place with in the brand/business. The marketing mix is set of marketing tools that the firm uses to pursue its marketing objectives in the target market. So, this theory proposes that all brands/business need the right product, sell that product at right price, in the right place, using the most suitable promotion. Basically brands use this concept to attract their target consumer to match their needs and demands.
Out of these 4Ps product is main focused area of marketing mix because the product is combination of tangible and intangible offer that a brand sells to customer to make money. Product addresses the need of consumer. The product has to have the right features like: it must look good and work well.
“When well designed, good-quality product is at the root of the marketing campaign it often adds a degree of authenticity and sincerity to the marketing strategy.” (Gary Aspden – Adidas)
For example: consumer needs to fit in with the peer group and the problem of how best to do this is solved by wearing particular brand’s trendy product. (Mastering Fashion Marketing, Tim Jackson, 2008).
As mentioned earlier that product is the main element of the marketing mix and in that product category footwear is the main focused area.
“Shoes are always the most important thing because they are who you are. They change the way you walk, the way you move.” – Tom Ford
The market for the footwear category is United Kingdom. The reason behind choosing this market is that the United Kingdom footwear market, the value of this market is reached a record high of over £7bn in 2008.
The UK is one of Europe’s leading footwear markets, accounting for nearly 19% of the European footwear sales.
Based on the above mentioned table Gucci's competitors are Prada, Chanel and Louis Vuitton. The reasons behind taking only these brands are these four brands are very popular in luxury market all over the world. So, through this table get the basic idea of the product wise comparison in these four brands. All the four brands have almost similar products but the personality is different. Gucci is much more similar to Prada in terms of brand image and product comparison. The brand image of Gucci and Prada is very seductive, powerful, accomplished, sexy and chic. Where as Chanel and Louis Vuitton have very smart, classic,...
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