Business Marketing

Gucci's main business right now is in China. Gucci's sales in China has gone down because people in China buy more of what they like and less for social reasons. The people from China want more insurance for their purchases and they dont really buy gifts. Gucci decided that instead of opening more stores in China, they will renovate the ones that already exist and they will better their advertising. Gucci is increasing their image in China by helping China with programs like health, education, and talent development. Gucci wants to expand in as much places possible while maintaining their image for good quality. Gucci went from being a small leather goods store into a worldwide known brand. Gucci has many stores in many cities and involved with many groups.

Segmenting and Targeting Markets

Gucci is more of a demographic segmentation. Gucci targets groups by age, gender, income, ethnic background, and family life cycle. To buy a gucci product a person has to be willing to spend alot of money. Gucci does not target groups by ethnic background anymore, but more by family life cycle. Gucci targets kids now and the only person that would make such a purchase is a person with a family. Gucci's targeting market is affluent, middle to upper class, fashionable, thirty and above individuals that invest alot of money into fashion.

Developing and Managing Products

Gucci faces many challenges when developing a product like time. Gucci wants to be ready with their product just in time to display them at their fashion show. Gucci also has a challenge coming up with the cost of their product. Patrizio Di Marco is the current CEO of Gucci. Gucci's most used pattern is the green, red and black pattern. Also the the red and navy blue pattern.

Social Media and Marketing

Gucci is involved in many social media pages like Facebook, Twitter and Youtube. Gucc has about 3.7 million friends on Facebook and 34,000 followers on twitter. Gucci has about 300,000 views on their Youtube videos. Gucci has remodelled its web page for ipads and has apps that describe their fragance scent. Gucci is very involved with the the social media in hopes of attracting costumers that dont live near any Gucci stores.

Product Concepts

Gucci has many diffrent products available like shoes, perfume, belts, jewelry, small accessories, luggage bags, travel bags, hats, gloves, sunglasses, clothes, watches, purses etc. Gucci sells products for pets like a dog collar and dog tags. Gucci also sells clothes for kids and cases for a phone or a touch pad. Gucci offers warranty and free repair for items that are damaged. Gucci's main priority is the quality of their items, so its very rare to purchase a damaged item. All Gucci items are not hand made any more but their are some hand made items every now and then. The great thing about Gucci its that the company can make just about everything. A person can call Gucci and have an item custom made just for them but for a price. When the brand name Gucci is on a product you can rest assured that the product was well constructed and thought of.

Personal Selling and Sales Management

Gucci can be described as relationship selling because when a product is purchased the sales person usually introduces themselves and has you fill out a card with your name and information just incase your product gets stolen when leaving the store. The sales person also recommends you items and gives their honest opinion on an item. The sales person tries to build a relationship so that the customer will come back and purchase more items. Costumers are aslo able to try on the products before they purchase them. Gucci has a sales management team that takes care of maximizing sales revenue, global efficacy, innovation solutions, store planning, forecasting, analysis, monotoring, inventory activities, employees management, store visits and openings.

Advertising, Public Relations and Sales Promotion

Gucci advertises their products by having models wear their merchandise. For example Gucci will have a guy well groomed and fit to wear their shades or their ready to wear items. Gucci makes people believe that their product will change the costumers apperance and give them a look of wealth and elegance. Gucci Public Relations coordinator is Alex Paige and his job is too handle Gucci sample send outs. Alex also assits show seasons, manages budgets and manages the industry news. Gucci uses product advertising to advertise its fragrance items. Gucci has sales promotions on items that havent been selling too good and Gucci wants to attract costumers from their competitor's.

Marketing Channels and Retailing

Gucci has control over its distribution channels cutting out middle men like suppliers and retailers.Gucci has Directly Operated stores as part of their defensive strategy and Gucci is a diverse brand. In retailing Gucci is at its best with a great display of their merchandise before a person even enters the store. When walking into Gucci a person is acknowledged right away with a greeting. Gucci's interior of the store is well decorated to catch a person attention and to make their merchandise stand out. The products in Gucci are well organized and taken care of. The employees in Gucci are very attentive to your needs and are determined to give costumers the best shopping experience. The Gucci employee's wear suits and ties to give off a luxury and professional impression. The environment in Gucci is peaceful and tranquil. Costumers are not rushed or lied into a purchase.  The Gucci store located in Macy's is new and its a good location because of  the tourists that shop in and out of Macy's. Expanding into 34 street was a good idea, now shoppers wont have to go as far as 5 avenue to purchase Gucci products. The only downside of Gucci expanding into Macy,s is that now they are next to their competitors like Louis Vuitton.

Consumer Decision Making

Gucci attracts its consumers through advertising, social networks and by giving back to the community. Gucci is very careful with how they promote and display their products. As the seasons change so does the clothes, shoes and accessories in Gucci's inventory. By changing the products in their invertory according to the seasons, Gucci is able to make their products more of a want than a need. Gucci portrays an image of wealth and class to the consumers. When consumers walk in to Gucci and look at a product they already know the quality is good. Celebreties is another method that Gucci uses to attract the costumers. Gucci also appears in movies, such as a Night At The Roxbury. Gucci repairs damaged items to make sure their costumers are satisfied

Developing a Global Vision

Gucci is one of the world's leading luxury fashion brand and is known for quality and Italian craftsmanship. Gucci designs, manufactures and distributes many products such as leather goods. The leather goods would be handbags, luggagebags, shoes, ready to wear, watches, eyewear and fine jewelry. Gucci has over 425 shops all around the world and has their product being sold from many franchises and department stores. Gucci is succesful because of the quality and because of the locations their product is being sold from. Gucci interest in the enviroment is another reason for its success. By giving back to the community Gucci attracts the medias aattention and the peoples attention. Gucci also understands the peoples demands for their product.

The Marketing Enviroment

Gucci has stores and does bussines in Florence, Rome, Paris, New York, London, Palm Beach, Tokyo and Hong Kong. Gucci has expanded their marketing enviroment since starting in Rome in 1921. Gucci has made their brand known through strong advertising. Guccis retail enviroment involves constant chage in window displays, sales person dressed in all black, relaxed enviroment and eye catching decor. Gucci operates in hign end streets where consumers will be able to afford their product. Gucci products are also available online for the consumers to purchase. Guccis biggest store is its flagship store located in New York 725 Fifth Avenue selling items for both men and women. Guccis biggest store for men only is going to be opened in Milan Italy. Gucci has the most succes in China
because of the big population.

Ethics and Social Responsibily

Gucci ensures that their employes are healthy and safe in the work place. Gucci encourages their employes to work together and treat each other fairly. The costumers or consumers that come in and out of Gucci are provided with the best costumer service. Gucci uses their resources responsibly to gain the confidence of their shareholders and support. The company is also accurate and prompt with their financial statements. Gucci is loyal and seeks to maintain a long term relationship with their partners. Gucci helps the enviroment by donating to China and Africa for schools, education and medical assistance. Gucci supports and understands the reasons for competition as long as the competiters are fair. Gucci is also involved with the PPR Corporate Foundation for womens Dignity and Rights.

Strategic Planning for Competitive Advantage

Gucci's mission statement is that the price is forgotten long after quality remains. They sell shoes, accessories, clothing, and leather goods. Gucci is all around know name brand with stores around the world.
Strenghts: Gucci's strenghts are in the way the company is set up, meaning the company distributes its own merchandise through their own brand named stores. Gucci also has many stores around the world making it a well know brand. Gucci is a multi-brand group with 10 brands such as Yves Saint Laurent, Sergio Rossi and Boucheron.

Weakness: Gucci's weakness is the constant change in management and its financial base. Gucci's debt is very high and many brands in the group with gucci are not being promoted well and need to bring in more profit.

Opportunities: Gucci has an opportunity from people that live in places like India and China. Basically from places where the economy is doing well financially. Gucci also has help from other brands which can help promote their products.

Threats: Gucci is known for its quality so if the product does not meet expectations then the company will lose costumers. Gucci's biggest rival is Louis Vuitton sales wise. Louis Vuitton is on the lead. Counterfeits is also one of Gucci's biggest threats because they give Gucci a bad reputation and reduce Gucci's sales. Medium brands such as Gap and Zara can give Gucci competition because their prices are cheaper and they become premium brands in the future. Pinault-Printemps-Redoute is also a threat because they own 68 percent of Gucci's stocks.


Marketable Products: Gucci's most sold products are their hand bags and sunglasses.

Targeting: Gucci targets young consumers from middle to upper class age range from 20 to 30 years of age and so on.

Establish Goals: Gucci should force more sales and improve their customer service in damaged products.

Mission Statement

Gucci's mission statement is that the price is forgotten long after the quality remains.

History

Gucci began with the work of craftsman Guccio Gucci. Gucci was founded by Guccio Gucci in 1921. In 1938 Gucci's first retail shop was opened in Via Condotti in Rome. In 1950 the red stripe woven fabric is introduce as Gucci's trademark. In 1953 Guccio Gucci died passing on the company to his family. After a couple of transitions in owners and bad decision making the company was improved with Patrizio di Marco as new CEO of the company. Overall Gucci is one of the top leading Italian leather goods and luxury goods name brand.