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Gucci: Fashion Marketing Strategies - Essay Example
Pages 10 (2510 words)
Gucci targets the niche market of individuals who belong to the upper class with high incomes. To set itself apart from the competition, the brand of Gucci is positioned for those individuals who prefer a mixture of heritage, modernity, trendy, creativity and sophistication…
The utmost important measure which Gucci needs to take is to align its organization under one inspiring mission statement which will steer the workers and the leadership towards one common goal. After the original owners lost control over internal disputes at the cost of effective management of the business, the new management took over but which could not stay for the time long enough to strengthen the management internally. Besides this, Gucci is the only premium brand of the group which is the highest contributor to the profits of the group. Harsh decisions will need to be taken to either discontinue the ones which are not profitable enough or more so add to the costs. The other option which Gucci is has is to club two or more brands together and then promote it accordingly. This would reduce the marketing costs of the brands to a great extent as then more money could be allotted to more profitable ventures.
Gucci’s decision to keep its distribution exclusive to its own stores has given it a good control over its distribution channel. However, unlike Louis Vuitton, one of Gucci’s closest competitors, Gucci is not as exclusively positioned as Louis Vuitton is. Therefore, to increase its revenue, Gucci must either franchise more stores in different locations predominantly in Asia where the markets are growing or follow the format of Louis Vuitton and start having authorized retailers to deal in Gucci as well. This is because Louis Vuitton is gaining a competitive advantage by making itself available to retail carriers of high-end luxury brands whereas, Gucci, despite not having exclusivity as its Unique Selling Point, is not getting the exposure there.
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