Global Luxury Goods
July 7, 2003
Word count: 2,389
Table of contents
TABLE OF CONTENTS2
GUCCI'S MARKETING FORMULA3
STANDARDIZATION OF THE MARKETING OF LUXURY GOODS6
GENERALIZATIONS RELATING TO THE GLOBAL LUXURY GOODS INDUSTRY7
Gucci 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:
ÃÂ·Directly operated stores;
Gucci's Marketing Formula
Gucci 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...