Gucci - Global Luxury Goods The essay analysis Gucci as a global provider of luxury goods from a marketing point of view.

International Marketing

Global Luxury Goods

Prepared by:

Tamás Halasy

July 7, 2003

MBA 1

2002/2003

Word count: 2,389

Table of contents

TABLE OF CONTENTS2

GUCCI'S MARKETING FORMULA3

MARKETING COMMUNICATIONS3

Advertising4

Direct Marketing4

PR4

IMAGE4

GROWTH MARKETS5

STANDARDIZATION OF THE MARKETING OF LUXURY GOODS6

GENERALIZATIONS RELATING TO THE GLOBAL LUXURY GOODS INDUSTRY7

SOURCES8

Gucci

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:

·Directly operated stores;

·Franchise stores;

·Duty-free boutiques;

·Department 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.

Gucci store

English: Gucci Shop on Strøget in Copenhagen, Den...

The interior of the AMC Hornet Sportabout with the...

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...