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Gucci Global Luxury Goods The Essay Analysis Gucci As A Global Provider Of Luxury Goods From A Marketing Point Of View.

2302 words - 9 pages

International MarketingGlobal Luxury GoodsPrepared by:Tamás HalasyJuly 7, 2003MBA 12002/2003Word count: 2,389Table of contentsTABLE OF CONTENTS2GUCCI'S MARKETING FORMULA3MARKETING COMMUNICATIONS3Advertising4Direct Marketing4PR4IMAGE4GROWTH MARKETS5STANDARDIZATION OF THE MARKETING OF LUXURY GOODS6GENERALIZATIONS RELATING TO THE GLOBAL LUXURY GOODS INDUSTRY7SOURCES8GucciGucci is a global retailer of luxury, high quality fashion items: handbags, small leather goods and luggage, shoes, ties and scarves, RTW, watches and other personal items such as key chains, money clips, pens, etc.Gucci makes its products available to the public through 4 main distribution channels:·Directly operated stores;·Franchise stores;·Duty-free boutiques;·Department stores.Gucci's Marketing FormulaGucci has adopted an international marketing strategy of communicating a consistent image to its customers around the world. To uphold the consistency, Gucci has centralized marketing operations to Florence, which provides all creative material, and controls all aspects of marketing.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.Marketing CommunicationsSince Gucci has several rival firms on a global scale, it coordinates its marketing activities with careful timing and placement to achieve maximal penetration of its core message: the luxurious and fashionable image of all Gucci products.AdvertisingGucci advertises in national and international fashion, lifestyle and business magazines. Advertisements are timed to appear at the start of buying seasons, where customers will be looking for fashion items to purchase for the coming season. This is effective use of advertising, since the ads appear at times of the year when customers are open to receive such messages.Direct MarketingGucci publishes...

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