Successful Brand Leadership-Gucci

Only available on StudyMode
  • Download(s) : 440
  • Published : May 17, 2011
Open Document
Text Preview
Individual Term Assignment
Successful Brand Leadership
Made by Annus Dorottya

Introduction:

The House of Gucci, better known simply as Gucci, is an Italian fashion and leather goods label, part of he Gucci Group, which is owned by French company Pinault-Printemps-Redoute (PPR). Gucci was founded by Guccio Gucci inFlorence in 1921. Gucci generated circa €2.2 billion worldwide of revenue in 2008 according to BusinessWeek magazine and climbed to 41st position in the magazine's annual 2009 "Top Global 100 Brands" chart created byInterbrand. Gucci is also the biggest-selling Italian brand in the world. Gucci operates about 278 directly operated stores worl

Company History:

Like many other high-fashion companies, Gucci began as a small, family-owned saddlery and leather goods store. Guccio Gucci was the son of an Italian merchant from the country’s northern manufacturing region. As a young man, he travelled to Paris and London, where he gained an appreciation of cosmopolitan culture, sophistication, and aesthetics. Gucci opened his first boutique in the family’s native Florence in 1921 and quickly built a reputation for quality, hiring the best craftsmen he could find to work in his atelier. In 1938, Gucci expanded and a boutique was opened in Rome. Guccio was responsible for designing many of the company's most notable products. In 1947, Gucci introduced the bamboo handle handbag, which is still a company mainstay. During the 1950s, Gucci also developed the trademark striped webbing, which was derived from the saddle girth, and the suede moccasin with a metal bit. After Guccio's death in 1953, Aldo (his son) helped lead the company to a position of international prominence, opening the company’s first boutiques in London, Paris and New York. As the Gucci expanded overseas, board meetings about the company’s future often ended with tempers flaring and luggage and purses flying. Gucci targeted the Far East for further expansion in the late 1960s, opening stores in Hong Kong and Tokyo. At that time, the company also developed its famous GG logo (Guccio Gucci's initials), the Flora silk scarf (worn prominently by Hollywood actress Grace Kelly), and the Jackie O shoulder bag, made famous by Jackie Kennedy, the wife of U.S. President John F. Kennedy. Gucci remained one of the premier luxury goods establishments in the world until the late 1970s, when a series of disastrous business decisions and family quarrels brought the company to the verge of bankruptcy. At the time, brothers Aldo and Rodolfo controlled equal 50% shares of the company, though Aldo felt that his brother contributed less to the company than he and his sons did. In 1979, Aldo developed the Gucci Accessories Collection, or GAC, intended to bolster the sales for the Gucci Parfums sector, which his sons controlled. GAC consisted of small accessories, such as cosmetic bags, lighters, and pens, which were priced at considerably lower points than the other items in the company’s accessories catalogue. Aldo relegated control of Parfums to his son Roberto in an effort to weaken Rodolfo’s control of the overall operations of the company. Gucci Group is one of the world’s leading multi-brand luxury goods companies. The Group creates and distributes high quality luxury goods including ready-to-wear, handbags, luggage, small leather goods, shoes, timepieces, jewellery, ties and scarves. Also, under license from global industry leader, eyewear and fragrances, cosmetics and skin care products. This vast product range and the sharing of specific expertise among the various brands are one of the Group’s greatest assets and a source of organic growth.

Theoretical background:

I would like to mention the marketing mix in the case of Gucci. „The term "marketing mix" was coined in 1953 by Neil Borden.” (http://en.wikipedia.org/wiki/Marketing_mix) The marketing mix includes variables such as price, product, promotion and place.

Price
“The price is the amount a...
tracking img