Marketing mix of Gucci

Gucci one of the leading brand names dealing in luxury items was
established in the year 1921 by Guccio Gucci. Today it is one of the
best established as well as high profile names in the fashion industry.
This multi brand company has a strong international exposure and
deals with its clients through DOS or direct operating stores
scheme. This strategy has enabled them in maintaining an intimate
contact with high profile clients. Some of its chief competitors are

Louis Vuitton

Vertu

Chanel

Dior

Prada

Hermes
Product in the Marketing mix of Gucci
Gucci has been synonymous with excellent services while supplying
qualitative products. Its management has a keen sense of fashion and
hence has been able to keep its grip firm on the market even in this
changing times. In the beginning, the company dealt in luxurious
leather goods but later drifted towards other products. The company
has been designing clothes and other accessories and successfully
selling them since decades.

The features and image of all its products is unique and the quality of
these products is one of the main reasons for such high sales. The
designs are innovative and the precise use of technology has made the
finished products very attractive and sophisticated. The product
portfolio of the company includes fashion wear for men and women
that are elegant, fashionable and classy.
The shoes are designed with lots of care so that a definite style
statement can be made. The watches are well designed and the
sparkling Jewelry is made with exquisite proficiency. All the
Handbags are refined and elegant. The babywear is comfortable and
fashionable. Eyewear is very catchy and perfumes heavenly. It also
has a wide range of home products that includes bedding, furniture
and wallpaper. Gucci serves all its exclusive products with the help of
well-trained professional salespersons and that to in a very attractive
packaging.
Place in the Marketing mix of Gucci
Brand Gucci tendstocater to the high end market and for this
purpose; they have set up outlets that provide relaxing environment
that create a responsive attachment between the customer and the
brand. The services provided by the employees are outstanding and
their channel of distribution is very selective making the customers
feel special. All its stores are located in expensive and high profile
street locations that are exclusive and distinguished. These
whereabouts help in appealing the customers that belong to the elite
group. The dcor of every outlet is unique with classic tastes, the
interiors are visually appealing, and henceit helps in creating a
comfortable atmosphere. The displays on the windows are very
provocative and the sales persons are dressed smartly in all black. The
consumers are able to browse in these stores at their leisure in
comforting and professional settings.
In order to build their image and retain control around these stores
the company takes an active and direct part in itsopening and
operation. Gucci has started on a policy of activemarket

penetration and under this scheme have opened many retail outlets at
various strategic locations in the world market. Some of its typical
outlets are at London, Paris, New York, Rome and Tokyo. Although
seventy percent of the sales are conducted in these outlets, the
company also makes huge sales through its online marketing. Gucci
has an official website that handles all its internet sales through highly
trained officials. The company has also various tie-ups for some of its
branded products with high profile department stores in different
worldwide upmarket locations.
Related Marketing mix of Gatorade - Gatorade marketing mix

Price in the Marketing mix of Gucci

Gucci has mostly gone with a policy of premium pricing because its
product quality is very superior. The brand name is associated with an
image of high quality and the prestigious pricing makes the product a
status symbol. The customers feel happy and distinguished to be
associated with such a premium brand. High prices are not a problem
with such goods that are unique in style, quality and designs as they
are made for wealthy clients. The company does not compromise with
the standards of quality and hence major cost cutting in their prices
is not possible.
Even then the company has tried to offer some discounts on selected
items at selected times, especially on internet purchases to garner
more sales and to keep their loyal customers happy. In order to
increase its revenues the company has followed the policy of
diversifying the various products and brands and under this, they have
tried to keep a reasonable pricing policy as well as premium policy of
prices.
Promotion in the Marketing mix of Gucci
In order to create a special and separate entity for itself the company
went for high investments in the advertising area. They have also

adopted marketing strategies that are innovative to tackle the present

dynamic environment. In order to create an appeal to the newer
generation Gucci has started the concept of experimental marketing.
For its loyal customers that have been associated with the company
always it has also kept on the traditional marketing approach to retain
the affinity with them.
In some cases, the company has also used controversial strategy of
advertising for instance in the ad for its perfume called Opium it went
on to post a naked image of the model Sophie Dahl. The scandalous
advertisements helped the company in gaining media coverage across
the globe and led to the awareness of its brand and various products.
The essence of this popular brand is its exclusivity and its vibrant
image is portrayed successfully through its various fashion shows that
are very distinctive in nature. The advertisements for its various
products are displayed in most of the expensive and leading fashion
magazines that cater to the rich and aristocratic people. Television and
internet have also started playing an important role in the
promotional activities of the company.
Gucci has a long list of affluent celebrities and international clients
associated with it since its establishment. The legendary clients
include Audrey Hepburn, Grace Kelly and Jackie Kennedy. Under its
promotional activities, the company also launched handbags called
Jackie O which turned out to be a hit. In recent times, American
model and actor Blake Lively, models Kate Moss and Charlotte
Casiraghi have been associated with the brand as its ambassadors.

Marketing Mix Of Louis Vuitton

And Gucci Marketing Essay
Louis Vuitton, a famous French brand, was created by a leather designer named Louis
Vuitton (1821-1892). In 1837, 16-year-old Louis Vuitton left his hometown, to Paris to
pack for the elite. He opened his first store in London and made the production with
high-skilled. Thus make Louis Vuitton become the most delicate symbol of leather
traveling articles. A century later, it is a leader in the field of leather goods and also was a
favorite in polite society. It includes clothing, shoes, jewelry and so on. (Louis Vuitton inc,
2010). In 1987, Louis Vuitton and Moet Hennessy merging into prevent LVMH Group.
In 1906, Gucci Augustine chi established the Gucci brand and named it after himself.
Products of Gucci include fashion, leather goods, and watches. (Gucci inc, 2010) Gucci
with its high fashion, sexy style popular around the world. As a symbol of status and
wealth, it is a love of rich society. Now, Gucci is Italy's largest fashion group.

1.2 Theory
1.2.1 Market Segmentation.
Market segmentation can be defined as dividing different groups with similar chrematistic
in the market. Business accord different features to product and services for each of
them. (Hall et al 2008 p66)
1.22 Marketing Mix
In order to market its products effectively and meet its customers' needs. Business must
consider its marketing mix. (Hall et al 2008 p75) Mastering four main parts of marketing
mix plays a vital role in business, product, price, promotion and place.
1.3 Aims
The aims of this report are to analyze the information of Louis Vuitton and Gucci to
compare their differences. The comparison will focus on their differences in market
segmentation and marketing mix, especially in Chinese market .
2.Findings
17 years ago, Louis Vuitton as one of the first luxury brands to enter Chinese market
open its first store in Beijing. At that time, none of Chinese can understand why the value
of a handbag worth more than 10000 RMB. But with its promotion in China and the
growth of Chinese economic, the sales of handbags from Louis Vuitton rise quickly.

Reasons of the success in Chinese market are also the reasons for the success of its
brand, excellent market segmentation and holding well four parts of marketing market.
The successful reasons of Gucci is similar to Louis Vuitton. For example, it launched a
series of Chinese customs production. ( Paris Fashionable Clothing Week Day 9, 2010)
and using Chinese language in its stores. For Chinese market to design the Chinese
style products it's its segmentation. In addition, the aim of Gucci is to open more stores
in Asia and eastern Europe. (Reuters, Nov, 27)
Discussion
3.1 Market segmentation
Market segmentations of Louis Vuitton and Gucci are similar. The targets are promoting
their brands and meeting the rich's needs. The differences are that the price of most
Louis Vuitton's handbags is higher the price of Gucci and their different styles.
High quality and civility" are the selling points of Louis Vuitton which focuses on its
classical product leather handbags. In the other hand, Gucci adapts to the younger
customers demands. Because of the differences of their features and prices,
their market segmentations also different. Louis Vuitton targets the customers who are
love high quality and noble. The young ladies who are fond of "fashion, sex and
convenient" items will choose Gucci.
3.2 Marketing Mix
3.2.1 Product
Product is a main type of marketing mix. Innovation is the secret of Louis Vuitton
handbags to maintain its position, it has a series innovation with the change of
generation. In order to attract young woman, Louis Vuitton cooperated with artists
Stephen Sprouse, thus Epi handbags with colourful style promoted to the market. Now,
in order to meet the needs of the younger generation, launch a series of graffiti
handbags. (Spring and summer fashion show of LV in 2010) However, Louis Vuitton still
continues its style of noble and high quality, its handbags more suitable in semi-formal
occasions.
Gucci pays a great attention to its design in its development of 100 years. The style of its
handbags is convenient and fashion, they are also its unique selling points. But compare
the quality between Louis Vuitton and Gucci, the handbags of Gucci worse than Louis
Vuitton. The reason is that Louis Vuitton focus on the quality of leather and Gucci pay
more attention to its fashion.
3.2.2 Price
Another element of marketing mix is price. "The pricing policy that a business chooses is
often a reflection of the market at which it is aiming" (Hall et al 2008 p75) Louis vuitton is

more better in leather material, the majority of handbags of Louis Vuitton is more than
Gucci. For instance, the price of flower handbag of Louis Vuitton is RMB 17800, the new
style of handbag of Gucci is RMB 6800 in 2008. From these comparative results, it can
found that the handbag of Gucci is cheaper than Louis Vuitton's. The conclusion is that
Gucci target the middle class while Louis Vuitton target upper class.
3.2.3 Promotion
Nowadays, promotion plays an important role in marketing mix. Gucci and Louis Vuitton
focus on the advertising on TV and fashion magazine. Sophisticated fashion magazines
are their main promotion media, which help their segmentations become clear and
promote worldwide. Such as << Vogue >>. The style of advertising of Louis Vuitton is
noble and the feeling of Gucci presented to customers is sexy. Both companies promote
their production with popular stars. For example,Gucci show its new style with famous
Hollywood in Oscar or Canned movie awards ( 2010 Oscar Movie Award). But Louis
Vuitton appears its handbags with famous models even the successful politician
because it meet its practical style. Moreover, Louis Vuitton promotes its products with
Chinese stars Zhang Ziyi to attracts Chinese market. ( 2010, The Waiting City)

1.2 Theory
1.2.1 Market Segmentation.
Market segmentation can be defined as dividing different groups with similar chrematistic
in the market. Business accord different features to product and services for each of
them. (Hall et al 2008 p66)
1.22 Marketing Mix
In order to market its products effectively and meet its customers' needs. Business must
consider its marketing mix. (Hall et al 2008 p75) Mastering four main parts of marketing
mix plays a vital role in business, product, price, promotion and place.
1.3 Aims
The aims of this report are to analyze the information of Louis Vuitton and Gucci to
compare their differences. The comparison will focus on their differences in market
segmentation and marketing mix, especially in Chinese market .
2.Findings
17 years ago, Louis Vuitton as one of the first luxury brands to enter Chinese market
open its first store in Beijing. At that time, none of Chinese can understand why the value
of a handbag worth more than 10000 RMB. But with its promotion in China and the

growth of Chinese economic, the sales of handbags from Louis Vuitton rise quickly.
Reasons of the success in Chinese market are also the reasons for the success of its
brand, excellent market segmentation and holding well four parts of marketing market.
The successful reasons of Gucci is similar to Louis Vuitton. For example, it launched a
series of Chinese customs production. ( Paris Fashionable Clothing Week Day 9, 2010)
and using Chinese language in its stores. For Chinese market to design the Chinese
style products it's its segmentation. In addition, the aim of Gucci is to open more stores
in Asia and eastern Europe. (Reuters, Nov, 27)
Discussion
3.1 Market segmentation
Market segmentations of Louis Vuitton and Gucci are similar. The targets are promoting
their brands and meeting the rich's needs. The differences are that the price of most
Louis Vuitton's handbags is higher the price of Gucci and their different styles.
High quality and civility" are the selling points of Louis Vuitton which focuses on its
classical product leather handbags. In the other hand, Gucci adapts to the younger
customers demands. Because of the differences of their features and prices,
their market segmentations also different. Louis Vuitton targets the customers who are
love high quality and noble. The young ladies who are fond of "fashion, sex and
convenient" items will choose Gucci.
3.2 Marketing Mix
3.2.1 Product
Product is a main type of marketing mix. Innovation is the secret of Louis Vuitton
handbags to maintain its position, it has a series innovation with the change of
generation. In order to attract young woman, Louis Vuitton cooperated with artists
Stephen Sprouse, thus Epi handbags with colourful style promoted to the market. Now,
in order to meet the needs of the younger generation, launch a series of graffiti
handbags. (Spring and summer fashion show of LV in 2010) However, Louis Vuitton still
continues its style of noble and high quality, its handbags more suitable in semi-formal
occasions.
Gucci pays a great attention to its design in its development of 100 years. The style of its
handbags is convenient and fashion, they are also its unique selling points. But compare
the quality between Louis Vuitton and Gucci, the handbags of Gucci worse than Louis
Vuitton. The reason is that Louis Vuitton focus on the quality of leather and Gucci pay
more attention to its fashion.
3.2.2 Price

Another element of marketing mix is price. "The pricing policy that a business chooses is
often a reflection of the market at which it is aiming" (Hall et al 2008 p75) Louis vuitton is
more better in leather material, the majority of handbags of Louis Vuitton is more than
Gucci. For instance, the price of flower handbag of Louis Vuitton is RMB 17800, the new
style of handbag of Gucci is RMB 6800 in 2008. From these comparative results, it can
found that the handbag of Gucci is cheaper than Louis Vuitton's. The conclusion is that
Gucci target the middle class while Louis Vuitton target upper class.
3.2.3 Promotion
Nowadays, promotion plays an important role in marketing mix. Gucci and Louis Vuitton
focus on the advertising on TV and fashion magazine. Sophisticated fashion magazines
are their main promotion media, which help their segmentations become clear and
promote worldwide. Such as << Vogue >>. The style of advertising of Louis Vuitton is
noble and the feeling of Gucci presented to customers is sexy. Both companies promote
their production with popular stars. For example,Gucci show its new style with famous
Hollywood in Oscar or Canned movie awards ( 2010 Oscar Movie Award). But Louis
Vuitton appears its handbags with famous models even the successful politician
because it meet its practical style. Moreover, Louis Vuitton promotes its products with
Chinese stars Zhang Ziyi to attracts Chinese market. ( 2010, The Waiting City)

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