Gucci Study

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  • Topic: Gucci, LVMH, PPR
  • Pages : 15 (3830 words )
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  • Published : April 14, 2013
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COMMUNICATION STRATEGY
Presented to Tutor SAROTTO By
HEEJOON NA JIAXUN ZHOU LIMING HE QUNJING WANGN SEUNGHEE CHUNG

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INDEX

1. Identity
1.1 Identity according to History 1.2 Current Identity

P2 P2 P3 P3

2. Customers 3. Communication with customers
3.1 E-communication - Cut & Craft 3.2 Collaboration 3.3 Advertisement & Promotion 3.4 Social Contribution 3.5 History book and Museum 3.6 Shopping experience

P4 P4 P6 P7 P8 P9 P10 P10 P11 P13 P14

4. General evaluation 5. Suggestion 6. Bibliography 7. Supporting material

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1. Identity
1.1 Identity according to History Gucci’s identity changed as time passed. Identity is a column of the company and it is a long term characteristic which is generally influenced by founder’s initial spirit. But in consideration that Gucci’s history is almost 90 years old, and it was directed according various managerial strategies, so it is clear that its identity was relatively various according to time period. In addition, prior to define Gucci’s identity, we have to mention that the desired identity by the company can be different from perceived identity by customers.

(Elite VS Middle VS Accessible)
Time Period Directed by Management result Desired Identity Perceived Identity 1920’s ~ 1970’s Guccio Gucci Prosperity Middle luxury Middle luxury

1970’ ~ 1980’s
Aldo & Rodolfo Internal conflict Middle luxury Middle luxury

1980’s ~1990’s
Maurizio Adversity Elite luxury Middle luxury

1990’s ~ 2005’s
Tom & Domenico Prosperity Middle luxury Middle luxury

2005’s ~
PPR Adversity Middle luxury Accessible Luxury

From 1920’s to 1970’s Gucci’s identity was coherent to that of customers because the perceived identity was founded by the Gucci’s contemporary activity. It became very famous by launching canvas material bag because at that moment, Italy was under Mussolini’s control thus it was hard to import high quality leather from out of Italy. Instead of persisting in using exclusive material, the founder Guccio Gucci defined its brand identity as middle luxury fashion brand. From 1980’s to 1990’ Gucci was directed by the family grandson, Maurizio. He wanted to raise Gucci’s identity to the level of Hermes and Chanel. He controlled distribution channel and reduced categories to decrease exposure. And he also increased average price into very high level. But Gucci’s perceived identity was not equivalent to that of Hermes or Chanel, so it had to suffer very deep revenue decrease. From 1990’s to 2005’, thanks to Tom ford &Domenico del sole, Gucci regained its fame and became a very profitable company. They defined Gucci’s identity as middle luxury fashion brand and emphasized trendy and fashion conscious characteristics while targeting modern, youthful, urban customers. But at the same time, they didn’t ignore importance of exclusivity by reducing amount of distribution channels and emphasizing on DOSs. After acquisition by PPR, from 2005, Gucci is facing adversity by losing its identity. Because PPR is rather a profit driven corporate, internally it pushed Gucci to get more profit, so Gucci’s new management directors chose the category expansion strategy. In short term, Gucci was able to see visible profit increase, but products were too much exposed on the market and perceived brand identity crashed. And now Gucci feels itself located in crisis with regard to customers’ perception of brand identity.

As a conclusion, through Gucci’s case, we can understand that A. Brand’s desired identity can be various according to time and directors. B. With reference to price level, Gucci’s original identity was based on middle luxury market. C. In long term point of view, a company can flourish when the desired identity is consistent to perceived identity

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1.2 Current Identity Gucci’s current desired identity is related to middle luxury level. It is continuously launching special limited editions and is emphasizing fashion conscious and trend related value...
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