Strategic Brand Management: Gucci

Introduction

Every brand needs an effective strategy in the competitive market to gain and sustain success. In this contemporary business era, effective branding can enable better positioning. The study revolves around strategic brand management along with several key factors or insights. It seems unusual to examine the brand inventory and conduct a comprehensive brand analysis. Based on the brand inventory, and brand analysis, some key suggestions and recommendations are to be given to the brand to contain some improvements in the competitive market. The brand must integrate with ways to improve and leverage the brand equity

Gucci is an Italian luxury fashion brand. It is a well-recognized brand in the global fashion market.  It was founded in 1921. According to 2016 financial reports, revenue o of the brand is US$ 4.3 billion (Adegeest, 2018). The firm operates with 278 stores around the globe.

1-Brand Inventory

The brand portfolio of Gucci is in the limelight due to a broad range of products for different customer segments. For Instance, the Gucci brand portfolio includes Gucci Marmont, Gucci Bloom Nettare, Gucci Ophidia, Gucci Dive, Gucci Print, Gucci Dionysus, Gucci jacket, and Gucci loafers. Gucci brand has enhanced the visibility of positioning prices by demonstrating two major pillars (Adamska, 2017). These two pillars are craftsmanship and heritage. The innovative culture of the brand has helped customers to create a positive perception, and interestingly, it differentiated it from other fashion giants in the competitive market. It has been revealed that Gucci shaped the sensual character of both males and females. It also distinguishes it from other brands. People, due to heritage, craftsmanship, and sensual perception contain emotional and sentimental attachments with the brand.

Guccio Gucci, the founder of Gucci, was a hotel worker. He was impressed due to guest’s luxury luggage. It was a good idea to make these high-quality leather products for customers. In the 19^th century, Gucci became one of the most successful brands. The firm started making high-quality fashion products. In 1997, this company was operating with seventy-six stores. The change in the management structure with time helped the company to evolve and grow. Gucci continued improvements and tried to integrate with modern fashion trends to facilitate the customers. Gucci, due to remarkable distribution setup, is available in western European, North America, Japan and emerging countries such as India and China.

Gucci depicts the high value. For Instance, sales and revenues of the company are increasing. Recently, the firm observed 44%, comparable sales, which increased revenues and profitability as well. 185% profit, which is tippled as compared to last year, portrays the excellent financial condition of the company (Maujul, 2018).

2-Brand Analysis

Customers in different markets usually perceive the brand differently. Based on different characteristics and behaviors, every customer may expect differently from the brand. In the competitive fashion market, people know this brand. Interestingly, people usually associate thus brad with different things. The management of the company intends to spread the knowledge of the brand by interacting with them through different tough points/

Consumer-based brand equity pyramid is a crucial tool to assess the brand associations at each level. This pyramid indicates different levels of knowledge that customers can contain in the market. Interestingly, based on brand knowledge and perception, the customer makes positive buying decisions.

Consumer-Based Brand Equity Pyramid

Brand Identity

• Salience

Italy is famous due to its fashion trends and assertiveness of people to wear differently. Gucci streamlines italic design in different products. It is a fact that people recognize Gucci due to its unique and attractive logo. Interestingly, it comes up with the most recognizable logo in the fashion industry. The firm is also using an attractive slogan. For Instance, “made in Italy” is indicating the country of origin. Italy, is a leading fashion, art and design country, is reflected by this brand in the global fashion market. Thus, Gucci is a worldwide fashion retailer, which facilitates customers to wear better and differently (Leathermag.com, 2018).

Brand Meaning

• Performance

The performance of the company is in the limelight due to the high quality and differentiation. The company usually comes up with different products and designs to enhance the visibility of attraction. The performance of the company can be measured through exclusivity (Solca, 2018). For Instance, Gucci makes and offers only exclusive design in the fashion market to be relevant and profitable. Premium customers of the company are willing to pay more for the high quality and exclusivity.  The exclusivity of the Gucci products and designs can be justified through different unparalleled designs. Italian craftsmanship is quite visible on Gucci’s products, and it allows the management to set high prices due to customer’s willingness.

• Imagery

Gucci has integrated heritage, modernity, and prestige. These are three pillars of the brand to be recognized and valued by customers. As mentioned, Gucci wants to be the first in the fashion market that streamlines the latest fashion. Association with top fashion celebrities and models has justified modernity. Gucci tells customers how traditional values can be reflected in the fashion industry. It provided a unique wearing experience. In the fashion industry, Gucci integrated with many celebrities. People see their favorite personality wearing Gucci, and it increases the brand prestige. Celebrities contained associations with the brand as well.

Brand Response

• Judgment

• Superiority

People have judged Gucci as a luxury fashion retailer. For Instance, Gucci has claimed its advantage by declaring high prices for its products for customers. High priced fashion products create the perception regarding quality and difference. Now, it has become one of the most prominent luxury brands in the world. Many low-cost brands exist in the fashion market, but target customers prefer this brand due to its superiority.  Gucci has become the status symbol now, and people are experiencing it in different regions (Adamska, 2017).

• Consideration

Apart from the product quality, performance and perception of people, Gucci has considered many things which sustained the brand image. For Instance, people are associated with the brand due to different community programs. It wants to create a positive impact on different societies. Gucci is working to develop women, promote education and contribute to healthcare in different regions. Thus, these are some strategic considerations, and these are recognized as top corporate social responsibility initiatives.

• Feeling

Despite focusing on customer demographics, Gucci has maintained the psychographic segment. The feeling of people about the brand is the primary driver to increase sales, enhance attraction, and be reverent in the competitive fashion market. Heritage, prestige, and exclusivity energize customers in the fashion industry.

Resonance

• Engagement

The company has enabled customer engagement on different touch points. However, personalization is the best strategy to engage or effectively interact with customers. Based on several customers’ characteristics and behaviors, the firm always personalizes its products. The purpose is to make everything available in Gucci stores for customers, and it seems an appropriate engagement strategy. On the other hand, the company came up with some key strategies or traits to enhance engagement or interactions. Gucci is operating in New York City, and it is enabling the same day delivery to satisfy its loyal customers and increase word of mouth.  The engagement is a good marketing strategy of the brand, and it can bring customers closer to the company. The firm started providing some complimentary gift to customers.  It is using this promotional tool as an effective engagement strategy, and it is working for the company (Enskog, 2017).

• Community

Gucci believes in community development. It is also useful for brand development. On different social media channels, people are gathered to talk about the Gucci brand. Gucci’s affiliation with different celebrities has become a significant trend (Rutherford, 2016).  Gucci products and brand image are famous on various social media communities, and it goes in favor of the customer. Interestingly, Gucci also expects the share of brand knowledge in an intense rivalry (Rutherford, 2016).

3-Suggestions & Recommendations

The fashion industry is becoming more competitive, and it is necessary for brand management to shape some strategic decisions. So far, Gucci depends on the psychographic customer segment to sell high priced products and sustain its brand image. However, new arrivals have become the major threats to the company. These companies are coming with a low-cost structure and differentiation process to convert customers.  The switching cost for customers is always low for customers in the fashion industry. Now, Gucci must reshape its customer segments and redesign its pricing strategy (Pan, 2018). Targeting high-income people is a good approach to earning extraordinarily. However, setting low prices for customers can increase customer traffic in Gucci stores. People have already perceived the brand regarding the quality, design and all other mentioned performance indicators.  Now, it can play with prices to reach maximum customers and increase its financial capability (Pan, 2018).

The brand’s focus is on Italian art and fashion. It is the right approach by the company to introduce the country to the world in a unique manner. However, when entering different countries, the firm must integrate with national trends. Cultural integration is recommended in the competitive fashion market because it can help the firm to sustain the business in the presn3ec of major domestic fashion giants.

Conclusion

In the end, it is to conclude that Gucci can sustain the successful brand association at different levels. The fashion industry needs the trends integration with the time and Gucci has to increase its capacity to respond to these trends effectively. The study talked about Gucci’s inventory. Also, a comprehensive brand analysis, including the assessment of brand association through Consumer-Based Brand Equity Pyramid has been conducted. Based on the investigation, some recommendations are provided in the brand for improvements in the competitive landscape.  

References

Adamska, M. (2017) The positioning of the three most valuable luxury fashion brands, 7 March, [Online], Available: [28 November 2018].

Adegeest, D.-A. (2018) Could Gucci become bigger than Louis Vuitton?, 14 February, [Online], Available:  [28 November 2018].

Enskog, D. (2017) How to communicate your brand to Millennials: the Gucci case, 13 June, [Online], Available:  [28 November 2018].

Leathermag.com (2018) Gucci streamlines production with more work brought in house, 12 June, [Online], Available: [28 November 2018].

Maujul, D. (2018) Kering Continues To Break Records With Profits Up 185 Percent, 26 July, [Online], Available: [28 November 2018].

Pan, Y. (2018) Chinese Whispers: Gucci Cuts Prices Following Louis Vuitton’s Lead, and More, 7 July, [Online], Available: [28 November 2018].

Rutherford, C. (2016) The List Best Dressed, 27 May, [Online], Available: [28 November 2018].

Solca, L. (2018) Is Inclusivity the New Exclusivity? Gucci Certainly Thinks So, 25 July, [Online], Available: [28 November 2018].