Gucci Brand Management

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Executive Summary
This paper examines the brand management of Gucci, as one of today’s most prominent luxury brands. Based on literature it first looks at definitions of luxury and luxury brand equity as an expression of dream value. Then it explores the identity, brand building, brand architecture, brand stretching and strategies Gucci follows in each of its segments. In the light of the latest recession, it looks at the response strategies of the brand and sheds light on the communication challenges, the brand faces in reconciling its past and current perceptions. The paper suggests certain communication improvements, and argues Gucci should exploit the potential of the Internet as a communication and e-commerce channel, where to gain competitive advantage from other luxury brands.

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Table of contents
Executive Summary ............................................................................................................1 Introduction ..........................................................................................................................3 Literary Review.....................................................................................................................4 Brand identity .......................................................................................................................6 Brand stretching...................................................................................................................8 Challenges .........................................................................................................................10 Recommendations............................................................................................................12 Conclusions ........................................................................................................................15 References..........................................................................................................................16 Appendix 1: Gucci: A history lesson ..............................................................................19 Appendix 2: Anti-laws of luxury marketing ..................................................................22 Appendix 3: Brand Relationship Spectrum model ......................................................24 Appendix 4: Gucci brand elements Logo ...................................................................25 Appendix 5: Gucci’s “forever now” campaign ...........................................................27 Appendix 6: Gucci Sponsorships and Corporate Responsability.............................28

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Introduction
Gucci is without doubt one of today’s greatest brands. It ranks very highly in terms of both:



Consumer appeal In a 2008 survey performed by Nielsen Media, it ranked as the most coveted luxury brand in the world. (www.nielsen.com/us/en/insights/pressroom/2008/gucci_reigns_as_the.html, accessed on September 9th, 2011)



Brand value The 2010 Interbrand report ranks Gucci 44th in the world top 100 brands, with a brand value of USD 8,346 millions, second only to Louis Vuitton in the luxury category. (www.interbrand.com/en/knowledge/best-globalbrands/best-global-brands-2008/best-global-brands-2010.aspx accessed on September 9th, 2011). The BrandZ 2010 (www.brandz.com/output/PreviousReports.aspx, accessed on September 9th, 2011) and 2011 (www.brandz.com/output/ accessed on September 9th, 2011) reports consistently rank Gucci 3rd, in the luxury category, after LV and Hermes.

2011

2010

However, what is today one of the biggest brands in the world, started in Florence, Italy, only 90 years ago, when Guccio Gucci opened a small leather goods and luggage store. (Refer to Appendix 1 for the history of Gucci)

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Literary Review
A brand is often thought of as the total of perceptions customers have of a product/company. Companies worldwide strive to gain competitive...
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