The main marketing strategy of Gucci is "designed to maintain a high profile and consistent visibility". This involves constant marketing of its products and image, which keeps the company constantly discernible to customers and the fashion world. To achieve this, Gucci has started increasing communications expenditure in the last 3 years, and is planning on continuing the increase of its marketing budget.
Gucci's products and marketing methods are not tailored according to national needs or customs. It aims at reaching the growing global market segment of the rich and "newly rich", among which groups a homogenization of taste for luxury products has been detected. This
group is a true example of the emergent phenomena of the global marketplace, where needs and perceived benefits are common from the USA to Europe to Japan. This global market segment's price elasticity is low, meaning that they are not affected by changes in prices. They see price as an irrelevant factor, and shop for luxurious, high quality brand names. I once read a report that quoted the CEO of a luxury goods company, as he stated that it is simpler to increase prices of luxury goods than to lower them, as this is what consumers expect.
Since Gucci has several rival firms on a glo ...Show more