...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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...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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...CHANEL’S BRAND STRATEGIE ANALYSIS REPORT | MKT100 ID: 5305678 TABLE OF CONTENTS Introduction 2 SWOT Analysis 3 Industry Analysis 4 Target Audience 4 Market Positioning 5 Product 5 Price 6 Place 7 Promotion 7 Advertising 8 Celebrity endorsements 8 Fashion show 8 Movie 8 Competitor Analysis 9 Gucci 9 Louis Vuitton 10 Hermès 10 Recommendation 13 Conclusion 14 References 15 Introduction According to Somma, M (2010), “Chanel is a brand known by everyone, wanted to by nearly all, and also tried and practiced by very few,” making it an appreciated asset. Double "C" logo has become the pride of the global fashion industry, is stand for the brand a woman on this world most like to have. Chanel is famous brands over 90 years’ experience, Chanel has a constantly elegant, artless, well-dressed style, she is expert in breaking through the traditional as initial as twentieth Century 40's to efficaciously "tied up" the ladies into the artless, relaxed, which is maybe the first modern casual ensemble. After Chanel's death, the succession in 1983 by the design genius of Karl Lagerfeld, he has freedom, arbitrary and easily design mentality, and he always unbelievable feeling of the unity of two opposites in the design of works of art, both creative and noble, both French romance, humour, another German severe, fine. He did not change the shape of lines and favourite colour, but from his project from beginning to end all can work out "Chanel"...
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...E-Marketing Assignment - Websites comparison - Table of contents I/ Introduction Page 3 II/ Company profile Page 4 III/ Mission and vision of both companies Page 7 IV/ Internet presence of both companies Page 8 V/ 6Is of the E-marketing mix Page 18 VI/ Conclusion Page 20 VII/ References Page 21 I/ Introduction The development of Internet is certainly the most striking economic phenomenon in recent years. This new media has changed the established rules of traditional marketing strategies and finds its audience among a population who is tired of aging commercial techniques such as TV, newspaper advertisement or radio. Internet is currently the symbol of a digital revolution and most companies are aware that this is a precious tool. Indeed, local and global competition is becoming tougher and companies need to increase continuously their brand awareness to subsist. For this reason, numerous companies are modifying their communication strategy by investing massively in the worldwide network. The creation of an online presence through their website allows them to complement their media channel and to reach...
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...History of the Gucci 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 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 Parfumes 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. Aldo Gucci expanded into new markets including an agreement with American Motors Corporation (AMC). The 1972 AMC Hornet compact "Sportabout" station wagon became one of the first American cars to offer a special luxury trim package created by a famous fashion designer. The Gucci cars sported boldly striped green, red, and buff upholstery and on the door panels, as well as the designer's emblems and exterior color selections. Though the Gucci Accessories Collection was well received, it proved to be the force that brought the Gucci dynasty crashing down. Within a few years, the Perfumes division began outselling the Accessories division...
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...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 and...
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...September 19, 2011 Lutz-‐Tveite 2 Table of Contents Executive Summary p. 3 Brand Introduction History of the Company Brand Description Mission Statement Brand Portfolio Products and Services Offered Financial Statistics Management Practices Brand Portfolio and Map Brand Portfolio Brand Concept Board Product Development Retail Strategy Marketing Analysis 4 P’s Ideal Customers Competitor Analysis SWOT Analysis ...
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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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...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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...1 Table of Contents Executive Summary .......................................................................................................1 Coach’s History..............................................................................................................2 Coach’s Current Profile..................................................................................................3 Coach’s Future Plans......................................................................................................3 SWOT Analysis .............................................................................................................4 Global Expansion & Challenges ....................................................................................6 Coach’s Competitors ......................................................................................................9 Industry Analysis ......................................................................................................... 11 Short-Term Recommendations ....................................................................................12 Long-Term Recommendations.....................................................................................13 Conclusion ...................................................................................................................14 Bibliography ................................................................................................................16 ...
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...Outline Product: Multiplx Chanel Perfume Client: Chanel Introduction [ADA] Chanel was founded in 1910. It has a long history in the fashion industry. As a market leader, it shows continuous innovation to defend its market share from market challengers, e.g. Gucci, Dior, etc. COCO believed that product innovation can keep consistency of brand image. Chanel’s perfume contributes nearly 40% of the global perfume industry. Adding new element and advanced technology into perfume are seen as a valuable creation perfume history thus enhances the competitiveness of Chanel. Communication Market Analysis Opportunity analysis In the perfume industry, there is only pure essence of a single scent in a bottle. Using the same scent in different occasions is boring, drab and tedious. Hence, a 3-in-one perfume can be designed and offered to tap the high income level of office ladies whose life is with all the glamour, wealth and splendid. They display a keen interest in everything new. With more flavors, the perfume can improve their mood to feel refreshed and even as a self-confidence improver. Consumer markets Market segmentation by consumer groups: Demographics -Gender: Since the establishment of Chanel’s perfume in 1870, it mainly targeted at women. It is found that Chanel has great potential to further develop such upscale perfume for women. -Age: The main target of Chanel is consumers who aged from 30 to 45. From the emphasis of mature and exquisite design of the...
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...History of Italian Fashion The culture of the prominent country Italy can be seen through its food, music, cinema, and especially fashion. Italy is one of the biggest fashion powerhouses in the world to date. With designers such as Gucci, Giorgio Armani, Dolce and Gabbana, Ferragamo, Fendi, Prada, and Versace, it is no wonder why Italy is a global hot spot for high quality apparel. However, Italy wasn’t always the fashion icon that it is today. At a point in time Italy took a back seat to London and Paris in regards to fashion. Soon after its splurge in arts, music, and, fashion that Italy took during the Renaissance; it quickly fell to the feet of English, Spanish, and French industries. France eventually proved itself to be the superior fashion industry in Europe for a long period of time. It wasn’t until after World War II where Italy decided to take a huge leap back towards supplying and exporting high-grade clothing, and rebuilding its fashion industry. Post-World War II, many European countries had been in desperate need to rebuild their economies. Seeing as how the United States was one of the few countries that maintained its buying power directly after the war, Italy had decided to keep its focus on marketing towards them. This was the first instance where Italy was able to compete with the dominant French fashion industry to gain the United States’ attention. A man by the name of Giovanni Battista Giorgini gave Italy...
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...brands that have prospered and/or withered as a result of the business models that management have deployed in order to achieve their strategic (or not so strategic) objectives. Gucci, the Italian luxury brand is a case in point. In the 1950s the brand enjoyed significant success. It was the status brand of choice for Hollywood film stars and European royalty. However, just over a generation later, the brand suffered a loss of cachet and the once profitable business made significant losses. The adoption of a business strategy (which sacrificed management control over product development and distribution in favour of seemingly indiscriminate licensing agreements), undermined the credibility of Gucci as an exclusive and aspirational fashion brand (Jackson and Haird, 2003). Tom Ford’s arrest of Gucci’s decline in the 1990s has been well documented (Moore and Fernie, 2004), and has been attributed to his adoption of a business model that maximised internal controls with respect to product sourcing, brand communications and distribution. Ford’s legacy has been the implementation of an integrative business model which maximised “back-end synergies” in relation to logistics, fiscal planning and real estate management for the purposes of cost management and resource utilisation efficiency. The “front-end” of the Gucci business model is concerned with the management of risk through the provision of a portfolio of distinctly positioned fashion brands and the maximisation of internal control through...
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...Brand Name and the Quest for Success in the Luxury Sector All luxury designers strive to achieve long-term success. To put a label on a collection of products is to create a brand, but that label does not provide for definite staying power. Lucrative brands have gone beyond creating something pretty; an outstanding brand writes a story that the consumer believes and wants to buy into and the brand then becomes more than its product. Labels that grasp the importance of branding understand that they must be more than the watch or bag or scarf. The appeal of a brand must be in who the consumer becomes when he or she puts on or uses a certain product. Brand awareness widens when a high-end label creates and conveys a clear message or lifestyle that the consumer thinks he or she can attain through purchase. That is the art of branding. Branding convinces the consumer not to simply buy a product, but instead buy the brand as a whole. A stellar product does not stand alone—behind it must be something deeper, a message or a symbol which should represent or relate back to the identity of the brand. Within the luxury sector, where products are often an investment regardless of one’s socio-economic status, conveying an identity is crucial. If the consumer cannot see what he or she will gain from purchasing a $2,000 handbag or a $26,000 watch, there will be no sale, and the ship that is the brand will sink. John Goodchild and Clive Callow, authors of Brands: Visions and Values...
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...It starts with an idea s t a g e s o f innovation Best Practices in Brand Extension: Effective Application of Brand Recognition BRAND EQUITY CAN BE DIVIDED INTO THREE COMPONENTS: EXPERTISE, EMOTIONAL ATTACHMENTS AND PRODUCT ATTRIBUTES Brand extensions are an effective and popular method of gaining a competitive advantage when entering a new product area. Consumers are faced with an increasingly complex and confusing marketplace. The ability of a brand to act as a mental shortcut for consumers, thereby simplifying the decision-making process, makes it one of, it not the, most important asset for a company. The ability of a brand to influence consumer behavior, and its subsequent value to companies, will increase as consumers face a growing amount of information in the marketplace. By placing a well-known brand on a new product, a company can imbue that product with all the positive associations of that brand, thereby giving it a competitive advantage. With some estimates of the failure rate for new products at 90%, the added value of being associated with a trusted brand can be critical to a new product’s survival. Given the increasing value of established brands and the difficulty in launching new products, the popularity of brand extensions is understandable. However, the brand extension process must be carefully planned in order to insure the value of the brand is successfully transferred to the extension without jeopardizing the brand’s equity. To do so, a company...
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