Gucci Report

Gucci Report Fashion Cultures Gemma Gray 20097690

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Content

GUCCI

CASE SUMMARY

PAGE 3

SWOT

PAGE 4

STRATEGIC DIRECTION

PAGE 5-8

MARKETING MIX

PAGE 9

KEY FUNCTIONS

PAGE 10-11

CURRENT PERFORMANCE

PAGE 12-16 PAGE 17

FUTURE PLANS REFERENCE

Gucci is one of the biggest names in the luxury market and transformed globally. Gucci was named ‘hottest brand’ of 2017 according to Business of Fashion.

The brand was founded by Guccio Gucci in Florence selling luxury leather bags to horsemen in Italy. The brand went on to sell fashion handbags in the 1950s.

Today Gucci creative director Alessandro Michele has changed Gucci image and increasing profits by 49% and is worth $15.6 billion dollars. Alessandro Michele new approach in his collections is bright, floral, and fun and a ‘genderless’ approach to the Gucci brand. Gucci has become popular with the help from social media.

In this case story, I will investigate the current business strategy, researching and appraising the company looking at what the brand is currently doing to stay relevant and keeping consumer interested such as their marketing strategy’s and how they use what’s currently relevant and turn It into a campaign/marketing.

The report will also highlight key functions of the brand and what each function does and where the brand is going in the future.

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WEAKNESSES

STRENGTH Strong brand image (mbaskool,2021) Brand equity - Global success Strong value , good supply chain and retailers (equilibrium,2021) Huge portfolio - Collaborations with other brand (e.g.

Gucci X North face Partners with UNICEF (Gucci Equilibrium,2020) Good online presence - million of followers on Social Media

Spending huge amount of money to protect the brand image Fakes becoming popular , stock losses Because the products are expensive , consumers might not make multiple purchases Postal Transportation adds to Gucci emissions impact ( Gucci transport is mostly Electric or Hybrid ) (Gucci Equilibrium,2021)

Threats

OPPORTUNITIES Youth ( Gen Z ) target with products that appeal to them Gucci can move into emerging economics in country’s such as India and China (mbaskool,2021) Create competitive advantages to separate them from other luxury brands , Try other business segments

Competitive market , hard to grow Being a global brand , make the company vulnerable to global price fluctuation e.g. Brexit , Pandemic, recession etc

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Strategic Direction Gucci Knows what it doing to stay one of the hottest brands in the world, they do a range of things to maintain this status.

Gucci Advertising One of the key strategies to sell anything is to create shock and this is exactly what Gucci did when Tom Ford took over, taking the popular term ‘Sex sells’ to a whole fashion level. According to Forbes research, sexually appealing imagery used for marketing does not need to pertain to the product or service but merely evoke feelings (Forbes,2021) . The best way to get people taking is to shock them, creating engagement and it worked increasing sales by a significant figure even though the brand was close to bankruptcy when he joined . (nme,2021)

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Carmen Kass in the designer’s notorious 2004 ads

Strategic Direction

Strategic Direction

Influences Marketing Harry’s styles began Working with back in 2018 and their relationship and ongoing Collaboration continues, having this collaboration brings in Both younger and older consumers from Harry’s Fresh new take to Gucci traditional bold prints it’s a match made in heaven. Even though Harry Style audience is much younger mainly Gen Z who can’t really afford to spend thousand on one piece of clothing, anything with Harry Styles on will go viral, meaning millions will see, an image of a man dressed in a dress it opens new conversation for people, breaking gender stereotypes. From just having a celebrity Gucci sale have gone up by 16.6% at the beginning of 2018 and almost 55% of Gucci’s sales were made to consumers under the age of 35. (Jessica Tyler, Business insider, 2018)

#GucciModelChallenge Tik Tok is no doubt the most popular platform right now with millions of young creatives, so having a trend on the app such as #GucciModelChallenge which has over 7.9 million views, thousands (TeenVogue,2020), is a good strategy even though the trend wasn’t originally created by Gucci . Gucci took the opportunity to join and share the #GucciModelChallenge they actually sourced some of the more creative TikToks that utilized the challenge by sharing It on their own Tik Tok page , this I a cleaver way of having free promotion without even having to pay anyone . Not only did Gucci share the TikToks, but they also made note in their caption that some users selected by the brand will be part of an upcoming project with Gucci.

Gucci having ‘normal’ people in a campaign brings in new consumer who think ‘oh the brand isn’t just for the wealthy’

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Strategic Direction

Marketing Mix

Metaverse Metaverse is a good strategy to tap further into the Gen Z as the metaverse became one of the fashion industry’s biggest trend in 2021.

Gucci tapped into the market by creating a game that is user generated. The game has brought together the Gucci community with customer engagement,which has been a central player in a multi-year push to build a highly engaged online community (The state of fashion,2022) .

The game focuses on sustainability which is a hot topic right now, having custom content created for the community of The Sims (Equilibrium.gucci.com, 2020), This is the way to target Gen Z , who are fans of the brand but might not be able to afford the high price tag .

P R O D U C T

P L A C E SUPERGUCCI NFTS BY GUCCI

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Fashion wear for men and women Including; clothing,shoes, jewellery/watches , handbags , sunglasses and child wear.

Gucci also launched a range of homewear products including bedding , furniture and wall paper in there signaure print.

(Gucci,No Date)

Gucci has created an outlet to provide an elegant and luxury experience, with hep from interior designers .

Customers have the experience of shopping a walk in wardrobe . (luxuo,2020) In store service is to the highest quality , making sure every customer feels special . Stores are located on high profile streets, usally with other luxury stores. As Well as in store the online experience is to a high standered and clear to use.

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P R I C E

P R O M O T I O N

Gucci is known for being a luxury brand so that reflected in the premium pricing and high quality and design , its not often you find Gucci having sales or discounted products .

In order to increase brand revenue the company have followed the policy of diversifying into a range of products . (thestrategystory,2021)

Gucci use of promotion as mentioned the brand’s strategy has been based more on high quality and content-driven images, integrated use of social media and traditional media/ printed ad and pop culture (fashion magazine cover)

key Functions

key Functions MANFACTURING

MARKETING Strategizing and developing the ‘360 degree’ marketing strategy for all product launches, retail stores, and special projects - The Vice President Research and create relevant content to communicate and share visually with consumers through various channels such as social,digital and print (Magazines). (marketingsociety,nodate)

HUMAN RESOURCES

FINANCE

Gucci’s Human Resources Team has a direct impact on the company’s overall culture. (Edited,no date)

Keeps control of cash flow and ensures that profitability is maximised.

Keeping track of company’s investments , Budgets and salaries Monitor and analyse each department and help with developing more efficient procedures and use of resources .

CUSTOMER SERVICE Gucci has six customer service centres where customers can speak to staff by phone, email or live chat. The call centres aim to give customers ‘a direct connection to the Gucci community that is a seamless, always accessible, personalised experience’. according to the CEO Marco Bizzarri This help drive sales helping consumers and offering the same level of service as offered in stores. (lsnglobal,nodate)

(own infographic)

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Gucci prides itself on being 100% made in Italy.

Maintain the supply chain (italist,2021) Make sure everything is delivered to the finest standard

DESIGN Gucci team ensure that the product is to the luxury standard , ensuring it resonate with customers Gucci have guided aesthetics in recent years, those that the creative director defines as ‘‘beautiful pieces of a wardrobe, designed to be worn again and again,’’ no matter what collection and collaboration (theblondesalad,2020)

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Current Performance Looking into the social issues being addressed

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The Brand content and collaboration are no longer set by old fashion beauty standards, the brand has used its platform and large global community unite in support of equity, inclusion and social justice this reflects the values of their Gen Z and Millennial consumers.

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Gucci have used their huge platform to share that beauty comes in a million different forms, by ditching having perfect models in their campaign and including a not very known at the time model with downs syndrome (Ellie Goldstein ) and even having the campaign shot by disabled photographer David PD Hyde , the campaign became one of Gucci Beauty’s most-liked Instagram posts ever . (voguebusiness,2020)

limit” by Al a es t o s n

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Gucci marketers also targeted people feelings, such as social approvals, selfrespect and buzz are known within the brand.

Most of the people see wealth and sexiness to be interrelated, creating a sense of excitement in being a part of the wealthy. Gucci has rapidly increased and maintained its brand equity in a competitive industry. The company has attained

a strong brand equity by embedding their strong brand values in all categories and especially their beauty campaigns.

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For luxury consumers and fans of the brand, Gucci is seen as one of the leading unique global brands. Gucci is the only brand that draws inspiration from what is going on in the world, they are very culturally aware of what’s happening. the company has been making efforts to stay associated with its consumers and not be viewed as strictly unreachable and high class for the average persons. By using its down-to-earth attitude, uniqueness, and quality, Gucci wants to be considered as the highquality luxury brand that all desire to be a part of the brand.

Current Performance

Age of the core consumer dropped by ten years, in under two years.

Gucci (who has a 40% Millennial audience) captures 7.15% of the available Millennial market, simply by being a larger brand. (Hitwise,No date )

Highest Percentage of Millennial Audiences (own infographic) Gucci Age Index (hitwise,nodate) own infographic

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Current Performance

Future Plans

Gucci is also a fashion cautious brand when it comes to social activities and have been since 2005 when they joined partnership with UNICEF, in Gucci stores around the world donate a percentage of the sales for collections made specifically for UNICEF , helping with education , health care an those affected

by HIV/AIDs in Africa. (equilibrium.gucci,nodate) Gucci is also committed to making changes to help the plant, with sustainability being a global hot topic, everyone has to do their part including fashion brands , Gucci has committed to A ten-year sustainability plan (equilibrium.gucci,nodate) , the plan was put in force in 2015 with plans to achieve this by 2025 , with plans to help cut carbon footprint by 40%. The plan isn’t just about sustainable clothing but also about people who work for the company with caring working environment. Sustainability is what the consumers want for the future with a Mintel report showing that Gen Z claims to care more about the environmental impact of their purchases

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Gucci future with the way online popularity is growing and NFTS and the metaverse being the new biggest crave for young consumers, fashion leaders such as Gucci, will experiment with this even more in the future, this offers a new creative outlook and community for the brand.

Since the pandemic in and Brexit, international tourism hasn’t recovered (The State of Fashion, 2022) creating NFTs for consumers to try on clothing is the future for not only Gucci but the fashion industry, doing this can help cut down travel helping with the carbon footprint with consumers getting to try on the newest collection without leading their own home. Cutting down on their carbon footprint is one of Gucci goal for the next 10 years as discussed in the report.

Gucci will continue changing the fashion industry beauty standards, we will see more exclusivity on the run way and campaigns from Gucci, hopefully seeing more collaborations with UNICEF and even a fashion shoot with some of the helpers, this would be a great marketing campaign for Gucci, consumers love to see ‘ordinary people’ in fashion shoot, it makes the brand seem more honest and not just for wealthy people .

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Reference

Reference

Anon, (n.d.) Gucci.com. [Online] [Accessed on 28 February 2022] https://www.gucci.com/uk/en_gb/?gclsrc=aw.ds&gclid=CjwKCAiAgvKQBhBbEiwAaPQw3C24jSuFv6L5IH3y9a5c90UsvfcK3R0IaqJkg4va_Vnzew9JjnGOthoCkjMQAvD_BwE&gclsrc=aw. ds.

Case Studies: The Luxury Fashion “Identity Crisis”. (2022) .

Danziger, P. (n.d.) Gucci’s Cracked The Luxury Code With Millennials, Thanks To Its Dream Team Of Bizzarri And Michele.

Forbes. [Online] [Accessed on 3 March 2022] https://www.forbes.com/sites/pamdanziger/2017/11/16/guccis-cracked-the-luxury-code-with-millennials-thanks-to-its-dream-team-of-bizzarri-and-michele/?sh=2cf474051523.

Gucci Epilogue. (2020) [image] [Accessed on 21 February 2022] https://www.anothermag.com/fashion-beauty/12913/see-alecsoths-magical-new-gucci-campaign.

Gucci supports UNICEF USA for COVID-19 vaccine preparedness – Gucci Equilibrium. (2020) Equilibrium.gucci.com. [Online] [Accessed on 21 February 2022] https://equilibrium.gucci.com/gucci-supports-unicef-usa-for-covid-19-vaccine-preparedness/.

GUCCI Vice President, Integrated Marketing. (n.d.) The Marketing Society Careers Channel. [Online] [Accessed on 28 February 2022] https://jobs.marketingsociety.com/job/gucci-vice-president-integrated-marketing/.

Gucci’s strategy: What does it take to be #1 hottest brand?. (2021) Lectra. [Online] [Accessed on 22 February 2022] https:// www.lectra.com/en/library/guccis-strategy-what-does-it-take-to-be-1-hottest-brand.

Gucci’s sustainability strategy – Gucci Equilibrium. (n.d.) Equilibrium.gucci.com. [Online] [Accessed on 5 March 2022] https:// equilibrium.gucci.com/gucci-sustainability-strategy/ Hawkins, O. (n.d.) Gucci invests in customer service with luxury call centres. Gucci invests in customer service with luxury call centres | LS:N Global. [Online] [Accessed on 28 February 2022] https://www.lsnglobal.com/news/article/24118/gucci-invests-in-customer-service-with-luxury-call-centres.

Kale, S. (2021) Out of style: Will Gen Z ever give up its dangerous love of fast fashion?. the Guardian. [Online] [Accessed on 5 March 2022] https://www.theguardian.com/fashion/2021/oct/06/out-of-style-will-gen-z-ever-give-up-its-dangerous-love-of-fastfashion#:~:text=And%20yet%20Mintel%20data%20also,to%2074%2Dyear%2Dolds.

Lee, I. (2022) Gucci just bought a plot of virtual land in The Sandbox to create themed experiences in the metaverse. Markets Insider. [Online] [Accessed on 24 February 2022] https://markets.businessinsider.com/news/currencies/gucci-sandboxmetaverse-land-ethereum-roblox-nft-crypto-vault-2022-2.

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Loeb, W. (2021) Fashion Ads And Sex: Why It Sells. Forbes. [Online] [Accessed on 22 February 2022] https://www.forbes.com/sites/walterloeb/2021/05/03/fashion-ads-and-sex-why-it-sells/?sh=3061d7612653.

Log In | EDITED Accounts. (n.d.) edited.com. [Online] [Accessed on 28 February 2022] https://app.edited.com/#market/dashboard/441499/ new?analysis_view=statistics&in_stock=true&is_second_hand=false&list_style=image&order_by=found_desc&vertical=apparel&view=products.

LUXURY MILLENNIAL SHOPPERS. (n.d.) Hitwise.connexity.com. [Online] [Accessed on 3 March 2022] http://hitwise.connexity.com/rs/371PLE-119/images/Luxury_Report_US-Final.pdf.

Nast, C. (2021) Inside the agency Gucci and Fenty Beauty use to boost inclusivity. Vogue Business. [Online] [Accessed on 3 March 2022] https:// www.voguebusiness.com/fashion/inside-the-agency-gucci-and-fenty-beauty-use-to-boost-inclusivity-zebedee-management.

Qureshi, A. (2021) Tom Ford on ‘House of Gucci’: “I often laughed out loud, but was I supposed to?”. NME. [Online] [Accessed on 22 February 2022] https://www.nme.com/news/film/tom-ford-on-house-of-gucci-i-often-laughed-out-loud-but-was-i-supposed-to-3106710.

Responsible supply chain – Gucci Equilibrium. (2021) Equilibrium.gucci.com. [Online] [Accessed on 21 February 2022] https://equilibrium.gucci. com/responsible-supply-chain/.

Roberta, V. and Roberta, V. (2021) Gucci Marketing Strategy: Lessons From Instagram’s Favorite Luxury Brand. The Strategy Story. [Online] [Accessed on 28 February 2022] https://thestrategystory.com/2021/08/11/gucci-marketing-strategy/.

Roxan, J. (2020) Gucci Replicates It’s Personalised In-Store Service Experience With an All-New Video Shopping Feature. LUXUO. [Online] [Accessed on 28 February 2022] https://www.luxuo.com/style/fashion/gucci-replicates-its-personalised-in-store-service-experience-with-an-allnew-video-shopping-feature.html.

Team, M. (2021) Gucci SWOT Analysis, Competitors & USP | MBA Skool. MBA Skool. [Online] [Accessed on 21 February 2022] https://www. mbaskool.com/brandguide/lifestyle-and-retail/2645-gucci.html.

The Gucci Design Team Becomes An Exceptional Model Of The New Epilogue Campaign | | The Blonde Salad. (2020) The Blonde Salad. [Online] [Accessed on 28 February 2022] https://theblondesalad.com/en/fashion/gucci-design-team-new-epilogue-campaign/.

The State of Fashion. (2022) Moodle.mmu.ac.uk. [Online] [Accessed on 24 February 2022] https://moodle.mmu.ac.uk/pluginfile.php/5410032/ mod_resource/content/1/The_State_of_Fashion_2022.pdf.

TikTok’s Latest Challenge Makes Us All Gucci Models. (2020) Teen Vogue. [Online] [Accessed on 24 February 2022] https://www.teenvogue. com/story/gucci-model-challenge-tiktok.

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Image Reference Cover page - Gucci Epilogue. (2020) [image] [Accessed on 21 February 2022] https://www.anothermag.com/fashion-beauty/12913/seealec-soths-magical-new-gucci-campaign.

Page 3 - The Cut (n.d.) Miley Cyrus - Gucci. [image] [Accessed on 3 March 2022] https://www.thecut.com/2021/07/miley-cyrus-gucci-flora-gorgeous-gardenia-campaign.html.

Page 5 - Hyland, V. (2004) Carmen Kass in the designer’s notorious 2004 ads. [image] [Accessed on 22 February 2022] https://www.thecut. com/2015/04/tom-ford-took-sex-sells-to-new-heights-nsfw.html.

Page 6 -Vogue (2021) Harrys Styles in Gucci. [image] [Accessed on 28 February 2022] https://www.vogue.co.uk/fashion/article/harry-styles-gucci-beloved.

Page 7 - ypulse (2020) Gucci model challenge. [image] [Accessed on 28 February 2022] https://www.ypulse.com/article/2020/08/28/theguccimodelchallenge-took-over-tiktok-then-disappeared-on-the-viral-list/.

Page 8 - Highsnobiety (2022) SUPERPLASTIC X GUCCI = SUPERGUCCI NFTS. [image] [Accessed on 28 February 2022] https://www. highsnobiety.com/p/gucci-superplastic-supergucci-nft-collab/.

Page 13 - Gucci Beauty. (2020) [image] [Accessed on 3 March 2022] https://www.lofficiel.at/en/beauty/gucci-beauty-campaign-for-greater-diversity-inclusiveness-and-body-positivity.

Page 16 - Gucci (n.d.) Gucci Sustainability. [image] [Accessed on 5 March 2022] https://www.retaildetail.eu/en/news/fashion/gucci-launches-first-sustainable-collection.

Page 17 - Vouge Runway (2021) Gucci love parade. [image] [Accessed on 6 March 2022] https://www.vogue.co.uk/fashion/gallery/gucci-love-parade.

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