...Gucci’s origins date back to 1921 in Florence Italy. It was started as a leather goods store by a man named Guccio Gucci. For the next fifty years after its creation, the Gucci logo had become a well-known fashion image. It wasn’t until the 1980’s when the company began to struggle due to aggressive branding, a poor licensing strategy, and an array of family altercations about who will be the progeny of Guccio Gucci. Finally, Maurizio Gucci, Guccio’s grandson, took control of the company in 1984 and restored it as a luxury brand. Within the next ten years, business began to plummet once again and Maurizio was compelled to sell his shares to Gucci’s second-largest shareholder, Investcorp. Investcorp’s two newly appointed executives, Tom Ford and Domenico De Sole, transformed Gucci back into a superior fashion brand within five years. The sales raised from $200 million in 1994 to $1 billion in 1999. This success caught the eye of many investors, such as French luxury group LVMH, which acquired 34% of Gucci’s shares by 1999. To protect their company from a takeover, Gucci established a new equity by offering 40% of its shares to PPR, a French global retail and luxury group. The new shareholder helped Gucci create a corporate of multiple luxury brands. There was a total of eight Gucci different brands each with their own management system and designer. Once Gucci became a multi-brand company, its family oriented and centralized business approach began to collide with PPR’s more brand-driven...
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...Case, Gucci Group N.V. (A) 1. Map competitive positioning of different players in the luxury goods arena and state who is best positioned and why? The luxury goods arena is a highly competitive industry in which companies must position themselves with both objective and subjective differentiating factors. Although humans are usually rational buyers when it comes to commodities and the necessities of life, much of this logic is thrown out when purchasing high-end luxury goods. While high quality is a necessary component of luxury goods, it is the brand’s image that a customer is really purchasing. Taking this into consideration, the true competition in this industry lies not in the technical differences in products offered, but in the perceived extent of luxury status the purchaser will receive upon buying said luxury item. There are several players in the luxury goods arena that have all become household names across the world through their strategic positioning. Currently, Hermes is considered as the “top of the line” luxury goods brand, with Chanel in a close second. Ferragamo is considered to be at the lower-end. For the sake of this case, we will focus on the middle tier, which consists of Prada, Louis Vuitton (LVMH), and Gucci. Firstly, Prada is much smaller relative to many of the big players in this industry, but it has been actively acquiring and growing throughout the last two decades. What started as a high-end luggage company has expanded to a producer of all things...
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...Executive summary Prestigious and Luxury brands such as Gucci, Louis Vuitton and Vertu represent the uppermost level and form of craftsmanship. They demand and hindercustomer loyalty that is not affected by trends. These brands set seasonal trends and are capable of generating consumers, wherever they are established. In luxury marketing, there is a delicate relationship between 4 factors that most strongly influence the purchase of the luxury consumer. They are the exclusiveness of the brand, the reputation of the brand, forms of distribution and price/value affiliation. Exclusivity cannot always be ensured due to immense competition. But by consequence, it is not the key requirement of a luxury consumer. The consumer bases their purchasing decisions mainly on the aura of the brand and completion of their ‘actualization needs’. Therefore, aura of the brand is more important than exclusivity. A luxury consumer is always looking for newer ways to satisfy their inconsistent wants and needs. Therefore, it is important for Gucci, LV and Vertu irrespective of their exclusivity and geographical presence to research and give their consumers major importance, to be successful in the fashion or high-end market. This report will aim to discuss the key success factors of Gucci, LV and Vertu that have impacted on their brand image and exclusivity. Furthermore, it gives a detailed explanation supported with examples on how they achieve their elitism. It then discusses the problems...
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...The House of Gucci or simply known as Gucci is the biggest selling Italian fashion leather and luxury brand, it has been in existence since 1921, and regularly charts on Interbrand “Top Global 100 brands”. The Gucci Brand operates in the following areas – Africa and the Middle East (11 countries), Asia (14 countries), Australia (2 countries), Central America and the Caribbean (3 countries), Europe (22 countries), North America (3 countries) and South America (1 country). This represents a total of 56 countries in which the Gucci Brand operates. The marketing/PR campaign that I am about to critically analyse is called the Gucci Cruise campaign (for their handbag range), it was launched in 2011 via several media forms: TV, internet and print, the focus of my analysis would be on the print campaign. Gucci products are held in high esteem by its target audience and caters to a particular high end segment in most countries. It is not what you would consider to be a mass retail brand, very little adaptation is done, if any, across different markets. Gucci is associated with success, class, sophistication and exclusivity worldwide, its brand strength is quite appealing and people are willing to pay a premium price for a perceived premium product. Gucci products are standardised across the globe. I am going examine the intercultural issues of this campaign such as, tastes, customs and norms of Italy the home country and China their largest market in Asia and the strategies implemented...
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...Case Study Competitive advantage at Louis Vuitton and Gucci MEMO The market of high fashion luxury goods presents US$165 billion of annual sales and gross profit margins of over 50 per cent. The leader company seems to be LVMH fashion house, with US$12billion of sales, followed by Richemont with US$3.6 billion and Gucci Group with US$2.4 billion. According to the text, the key activity of those companies is the preparation and display of new collection for their bi-annual fashion show. Analysing each activity which constitutes the value chain, I can say that: * Suppliers – the co-ordinating company has a relatively important function, since it works closely with the designer in determinant aspects (such as colours, patterns among others) of the collection’s design. The Chinese and Italy co-ordinating associated company’s which supplies and dye, spin and weave the silk, respectively,are not so important, because is the designer’s work at fashion house that creates the main value – final collection design instead of components supplied. BALANCE=LOW/MEDIUM VALUE ADDED * Inbound Logistics – there are many imports and the goods arrive at the fashion house not using an exclusive method. BALANCE=LOW VALUE ADDED * Operations – is about working on final product, which is design and manufacture of each haute couture dress. Here, the name of the designer is a crucial element, since the fact she or he is famous add a large value, but specialized seamstresses who cuts and sews...
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...If you saw it written in a novel or watched it as a movie, you simply would not believe the goings-on in the Gucci family. The firm was founded by one Guccio Gucci, in Florence, in 1923, as a manufacturer and retailer of travel luggage, in high quality leather. Guccio had been a humble dish washer by trade, but he had worked in some of the best hotels in London and Paris, and was inspired to return to Florence, a city renowned for the quality of its artisans and its fine quality of work, to begin the manufacture of high quality luggage. Guccio Gucci - library photo, PPR website Gucci expanded into the large towns and cities of first Italy, then Europe and later the rest of the world, and along the way it also expanded its range of goods. Still using mostly leather, but with some other materials and fabrics, such as bamboo and silk, Gucci branched out into belts, wallets, shoes, handbags – and latterly, cases for mobile phones, i-Pads, and so on. The family controlled the business until comparatively recently, but it was a history of family intrigues and boardroom tussles dating back over many decades, before it became part of the luxury goods conglomerate, Pinault/ Printemps/ Redoute (PPR), where the scandal comes in. Guccio had six children, but only sons Vasco, Aldo, Ugo, and Rodolfo were directly involved in the business. After Guccio's death in 1953, Aldo led the company to a position of international prominence, opening the company’s first shops in London, Paris...
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...Brief History Guccio Gucci opened a small shop selling leather goods on the via del Parione in Florence in 1923. He sold luggage imported from Germany and offered customers with repair services. As the luggage business prospered, he opened his own workshop to produce his own design. The business in the 1920’s created huge profit and success however in the 1930’s Gucci began to face some challenges when the sanctions imposed on Mussolini. He faced shortage of imported leather yet this challenge gave him innovated idea of using new materials such as canvas and produced small leather goods, wallets and belts that are still big part of the Gucci company. Gucci became an internationally known luxury brand after World War II and over the next two decades the company flourished. In the1970s Gucci began to fall down due to internal conflict. Most of the conflict was between Aldo and Rodolfo Gucci, the founder’s surviving sons over strategy and control of the company. Rodolfo Gucci died in 1983 and left his 50% stake in the company to his son Maurizio. One year later, Maurizio seized control over Gucci and determined to transform Gucci into a modern retail organization. Maurizio failed. Years later, Tom Ford and Domenico De Sole are given the credit for turning Gucci around in 1994 and turned the company into a powerhouse luxury brand. This case study will discuss why Maurizio failed to transform Gucci and how Tom Ford and Domenico De Sole rebuilt Gucci again. Luxury Industry ...
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...journal is available at www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at www.emeraldinsight.com/0959-0552.htm IJRDM 33,4 256 The nature of parenting advantage in luxury fashion retailing – the case of Gucci group NV Christopher M. Moore and Grete Birtwistle Division of Marketing, Glasgow Caledonian University, Glasgow, Scotland, UK Abstract Purpose – Examines the application and nature of parenting advantage within the context of luxury fashion conglomerates principally as a means of understanding the synergistic benefits that accrue as a result of brand consolidation within the sector. Design/methodology/approach – Derived from company annual accounts, market analysts’ reports and other secondary sources, the paper delineates and evaluates the ten-year renaissance of Gucci brand from a company on the verge of bankruptcy to its emergence as the world’s second largest luxury group. Findings – Through the identification of intra-business group synergies, it is clear that the transference of brand management expertise and competence is the principal dimension of parenting advantage in the Gucci Group. Originality/value – From an examination of the Gucci Group’s brand management strategy, resource investments and business development activities, the paper proposes a model of the luxury fashion brand. This multi-dimensional model identifies the components of the luxury fashion brand, locates their inter-connections...
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... FASHION FAUX PAS: GUCCI & LVMH “The brewing battle for Gucci is emblematic of the New Europe that is taking shape with the launch of the common currency and the globalization of industry: two Frenchmen squaring off for control of a Dutch-based Italian company run by a U.S.-educated lawyer and an American designer, and advised by London-based American investment bankers. “Gucci Watch,” Wall Street Journal, March 22, 1999. The Gucci Group N.V. 2000 Annual Report really said it all. Tom Ford, Creative Director, and Domenico De Sole, President and CEO, stood side-by-side facing the camera with eyes of steel. Ford, unshaven and shirt provocatively opened, was the American designer who had single-handedly revitalized the Gucci name. Domenico De Sole, dressed in a dark suit, white shirt, with finely trimmed beard, was the Italian lawyer -turned-businessman who had returned Gucci to profitability and promise. The photograph, of course, by the famous fashion photographer, Annie Leibovitz. These two men represented the defiant spirit of Gucci, a molten mix of high-powered fashion and high-powered finance. These two men had, in the first six months of 1999, been the centerpiece of one of the most highly contested hostile takeover battles ever seen on the European continent. Under attack by LVMH Möet Hennessey Louis Vuitton, the French luxury goods conglomerate, Gucci had implemented the age-old strategy of “the enemy of an enemy is a friend.” Gucci successfully enticed...
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...GUCCI 3F Sunglasses | BBA3 BBA3 | RIDA FATIMA S2F14BBAM0023 RABIA NOOR S2F14BBAM0004 NIMRA IMRAN S2F14BBAM0006 | | SUBJECT MARKETING SUPERVISED BY Sir SOHAIL ASHRAF TABLE OF CONTENT | NO OF CONTENTS | TOPICS | PAGE NUMBER | 1 | Introduction to company | 3 | 2 | New product development process | 8 | 3 | Market place and customer needs | 11 | 4 | Market segmentation | 12 | 5 | Marketing Strategies and plans | 13 | 6 | Market targeting | 13 | 7 | Pricing Strategies | 16 | 8 | Advertising, public relation and sales promotion | 17 | Company Profile Gucci | | Type | Subsidiary | Industry | Fashion | Founded | 1921 | Founder | Guccio Gucci | Headquarters | Florence, Italy | Key people | Marco Bizzarri (CEO) Alessandro Michele (Creative Director) | Owner | Kering | Website | www.gucci.com | Introduction Gucci was founded in 1921 when Guccio Gucci opened a leather goods company and small luggage store in his native Florence. Today, it is part of fashion conglomerate...
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...Table of content 1.0 Executive Summary 3 1.1 Objective 1.2 Vision and Mission 2.0 Company Summary 4 2.1 Background 2.1 Company locations and facilities 3.0 Products and Services 5 3.1 Product description 3.2 Competitive Comparison 3.3 Supply and demand details 3.4 Technology needs 4.0 Target Market 7 4.1.1 Target Market Segment Strategy 4.1.2 Market Needs 4.1.3 Market Trends 4.2 Industry Analysis 4.2.1 Industry Participants/Key Players 4.2.2 Main Competitor analysis 5.0 Strategic and Implementation Summary 10 5.1 Marketing Strategy 5.2 Pricing Strategies 5.3 Promotional Strategies 5.4 Distribution Patterns 5.5 Marketing Program 5.6 Sales Strategies 5.7 Sales Forecast 5.8 Sales Program 6.0 Web Plan Summary 13. 6.1 Website Marketing Strategy 6.2 Development requirement Reference 15 1.0 Executive Summary 1.1 Objective This paper will tend to provide a brief introduction of Louis Vuitton, the famous and high price and high reputation luxury brand product originated from France. Later, this paper will further investigate on the information regarding the company’s products and services (product mix) and its marketing analysis and industry analysis in general. The strategies analysis and implementation of the strategies will be demonstrated and website marketing strategies by the company will be discussed as well after the implementation of the strategies plan. Lastly, a brief conclusion will be provided...
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...Hermès creates bespoke brand for China By Justine Lau in Hong Kong, July 19 2010| Hermès is set to launch a new brand in China in September, in an attempt by the French company to win more customers in the world’s second-largest luxury goods market. Florian Craen, Hermès managing director in north Asia, said the Shang Xia brand – which means “up and down” in English – would remain “completely separate” from the main Hermès line to avoid customer confusion. Some analysts believe that the new Shang Xia shop, which will open in Shanghai selling tableware and furniture, will dilute the Hermès brand, famed for its Kelly and Birkin bags. However, Mr Craen said that while Hermès was a “Parisian company,” Shang Xia would be “completely different. “It is a Chinese brand, developed in China with the Chinese team, based on Chinese craftsmanship and broadly made in China. We don’t want any confusion.” Some western luxury groups have designed specialised lines for Asian markets, such as the Burberry’s Black and Blue Labels that are sold exclusively in Japan and Hong Kong. Levi Strauss, the jeans company, is reportedly planning on launching a Chinese brand this year. Hermès’ decision to create a brand for the Chinese market also reflects a thorny issue faced by luxury companies on the mainland. Companies need to figure out ways to appeal to more Chinese consumers with localised products without jeopardising the value of their brands. Hair and skincare brands must adapt their products...
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...Gucci, Louis Vuitton, & Vertu – Marketing Lessons from some of the World’s Most Exclusive Brands. By Conor Carroll, Kate Hurley & Ann Treacy, University of Limerick. Creating luxury brands is a difficult marketing exercise. It requires heavy investment in marketing communications, excellent product/service quality, but above all these brands have to try to remain fashionable, which is notoriously difficult. Gucci, Louis Vuitton and Vertu are three successful so-called luxury brands, that retail to the high-end market. Both Gucci and Louis Vuitton are well-established brands that have been around for decades, even centuries. Gucci is a well-established organisation that has being designing and retailing clothes and accessories since 1921. The Louis Vuitton brand has been around since 1850. However Vertu, a relatively new kid on the block, has only just entered the luxury communications marketplace in 2000. Vertu sells expensive mobile phones that retail for thousands of pounds. Only a handful of brands can create a high status appeal among the world’s super rich (e.g. Ferrari, Rolex, etc.). These brands have to adopt innovative marketing strategies in order to succeed in this dynamic environment. What do they do differently to create this luxury appeal? Marketers are moving from the traditional marketing mix approach towards greater use of experiential marketing. This is where customers are treated as both rational and emotional individuals that seek ‘experiences’...
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...Overview Burberry is a fashion and luxury company which creation remounts to 1856, when Thomas Burberry opened a draper’s shop in Basingstoke, England. Burberry-lined trench coats, worn by British soldiers in WWI, became a company icon. This brand was highly dependent on licensing and distribution arrangements and had a narrow set of products. Around 1980s the company started making losses because of its old-fashioned products, so in 1997 Rose Marie Bravo assumed the leadership of the company. Bravo and her team had a main objective that was to revitalize the brand, updating the product line, expanding the brand portfolio and creating new advertisement campaigns. Question 1 - Marketing Situation Company: Burberry is a company that nowadays sells a wide range of luxury products; they sell from apparel to accessories as handbags, shoes, hats, ties, and so on, and to licensed products as fragrances or eyewear. The brand is known for its heritage, history and functionality. Burberry wanted to create the image of an accessible luxury. In the 1920s Burberry was introduced as a registered trademark, and was seen as a symbol of luxury and durability, after that by the 1990s Burberry was sold to a British company, Great Universal Stores Plc. (GUS) and by the 1970s GUS management agreed to license the brand in Japan. The product started to grow worldwide, but due to the fact that a wide range of product categories become licensed the products began to vary across markets (price, design...
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...• Status of the luxury market today: According to the latest survey of The World Association of Luxury goods, Chinese luxury consumption amount in January this year has up from $8.6 billion to $9.4 billion, accounting for 27.5% of the world. It is expected to 2015, China's luxury consumption will account for 32% of the global market, becoming the world's largest luxury consumer than Japan. With China's luxury consumption ability to continuously release, this brand in China is expected to have obviously large sales growth space. According to Viscoelasticstatistics, large luxury product groups coming to settle in Beijing, Shanghai and Hong Kong. The numbers of shops are now beyond that of Italian and equals to that of London. In previous years, in Shanghai and Beijing, Tod 's, LV, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and etc. brands flooded in just a few months. At present, the domestic market possesses nearly two thirds of the luxury brands, estimate in 2013 years or earlier, people can find all luxury brands in domestic market. • The status of LV’s market in China and its strategy: There are about 100 sales outlets of LV watch and jewelry in domestic now. LV bag has opened 39 stores in China now and the sale amount is accounted for nearly 40% of the whole sale amount of LV in the world, which is beyond the Europe,the birthplace of the 19% market share and the 23% market share of USA. A Chinese cinema's manager said jokingly: “If a cinema can earn 20 million...
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