2010 / 2011
Marketing a new product
1. Overview of company, market and existing portfolio of products. This report proposes the market strategy for the launch of a new fragrance by the Multinational Corporation of GUCCI. The House of Gucci is one of the most established premium fashion brands in the world. Its success has depended largely on its effective marketing strategies. The specific company was chosen because in the middle of an international financial crisis, it is a challenge to attempt to introduce a high end product, even if it is addressed to an elite clientele that most probably has not been substantially affected by the crisis. The Gucci Group belongs to the PPR, a multinational holding company initially called “Pinault-Printemps-Redoute”. PPR’s Income in € million for the past two years is shown below: (source: PPR’s web site, Finance figures)
Gucci Group’s contribution to this revenue is 19.6% for 2008 and 20.5% for 2009. In the same year, it ranked 41th according to Business Week’s Top 100 Brands. It now has 609 stores worldwide, a number of franchisees and high-end department stores that carry its brands. GUCCI, being one of the premium brands, has to contend with a number of factors both internal and external in order to maintain its current status.
2. Explanation of/rationale for new product
Fragrances is one of the prevailing GUCCI’s products. GUCCI has been distinguished for the excellent quality that offers in all its products, with the fragrances holding a very good position in its volume of sales. In the fragrances department there is room for a new perfume and this perfume will come to fill a gap within the existing GUCCI’s portfolio. The name of the new perfume presented in this report is “Sense of Rhodes”. The scent of “Sense of Rhodes” is very unique and special, awakening the inner desires of the sophisticated woman for fashion and adventure. Referring to the idea of a Brand Identity, which are the visible elements of a brand such as colors, design, logotype, name and symbol, “Sense of Rhodes” will take on the shape of Mythical and ancient symbolisms been drawn from ancient Rhodes. This may transform the product into a highly symbolic and mystical icon, which, combined with the expensive high-end finish in its container and packaging creates a status symbol for privileged customers to buy. In terms of Maslow’s Hierarchy of needs, the product fulfils mostly social and self-esteem needs, which are going to be analysed in depth further in the report. GUCCI “Sense of Rhodes” will be available in 30, 50 and 75 ml Eau de Perfume.
3. Identification and justification of target market
Segmentation, Targeting and Positioning is the heart of modern marketing” Philip Kotler, 1992. The marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs, and it is rarely possible to satisfy all customers by treating them alike. The market will be divided into different homogeneous groups of consumers to create market segmentation. Rather than offer the same marketing mix to vastly different customers, market segmentation will make it possible for the firm to tailor the marketing mix for specific target markets, thus better satisfying customer needs. The luxury goods market is directly correlated with the global economic conditions. Also, GDP has been one of the major factors affecting the market. Also the growing population of high net worth individuals and the increasing demand from the emerging economies is expected to boost the global market. GUCCI brand has been known to produce high-end luxury products. Whether it is shoes, bags, cosmetics or clothing, they all have "a symbol of status and wealth” of the brand image of a wealthy upper-class consumer favorite. It has an ageless quality but it’s obvious that GUCCI always satisfied specific needs on any age consumer. Maslow’s...