Quiz MM 5003, MARKETING MANAGEMENT

MBA YP 52 B, Institute of Technology Bandung

Name : Ramya Daksa Mandhana

Class : YP 52 B

ID : 29114409

Please answer all the following questions:

1. Mention the Value Proposition of Gucci and provide your supporting analysis, i.e. related with

the business strategy and positioning of the products, etc.

Gucci is an Italian dashion and leather goods brand, part of the Gucci Group, wich is owned by

French Company, PPR. Gucci was founded y Guccio Gucci in Florence in 1921. There is a

common message across the Gucci brand: it is exclusive, regal and timeless; it is a symbol of

status for the aspirational consumer and a lifestyle insignia for the rich and famous.  Over 90

years, the brand has stayed true to its core inspiration of amazing craftsmanship, quality and

innovation. The business strategy form Gucci is sell the products for the people who wants

luxury products.

2. What are the Segmenting, Targeting, and Positioning of Gucci? Provide your supporting

analysis.

Segmenting

Gucci is positioned in the premium and luxury market segment.

Targeting

Gucci’s target market are celebrities, fashionistas and the upper class (rich people). Because their

target like and love with luxury goods, Their current customers are both male and female ages

between 20-50 years old. But not, they also added a new target, there is children’s collection, the

new target is to increase profit.

Positioning

Gucci was positioned for people who wants luxury fashion products.

3. What is the Marketing Mix of Gucci Product? Provide your supporting analysis.

Product

Gucci has many products, the products such as women products, men products, kids products, gifts

products, beauty products, and many more. The products like hand bag, shoes, watches, make up,

wallets, belts, fashion collection, etc. why Gucci make many products? Because Gucci is a luxury

brand, so many people like with Gucci Products. And wearing Gucci’s product is a pride.

Price

The Gucci’s price range is $200 - $23.000. the price is expensive. Because Gucci is a luxury

product, although the price is expensive, but many people still interested with the Gucci’s products.

Place

Gucci have store area and website for online shopping. The store is expensive and luxury, because

Gucci is luxury products so the store must luxury too. Gucci also have website for online shopping,

because many people wants to buy Gucci product, but they lazy to go to store area, so the website is

alternative.

Promotion

Gucci promotion the product at:

Social media

Fashion show

Iconic model

Webstore

Fashion party

TV commercial

Magazine

And many more

the promotion is for maximum the profit.

4. What is the Marketing Mix of Gucci in each of the phases? In other words, mention the

Marketing Mix in each of the three different phases.

Gucci Brand Stabilisation Phase

Product Price Promotion Place

Re-

stablished

control of

Gucci

product

design and

premium

price

establish a

luxury

marketing

communicati

ons platform

acquisitioned

and franchise

bought in

Belgium, Italy,

Korea, Taiwan,

etc

manufactur

e

create a

balanced

product

portofolio

for a luxury

brand

create a

luxury

brand

consumptio

n

achieved joint

venture control

store in

Singapore and

Malaysia

Multi-brand Acquisition Phase

Product Price Promotion Place

gucci had

transformed

from their

single brand

status to

become a

multibrand

luxury goods

group

premium price support

women’s

RTW

collection in

2001

Gucci already

have 181

stores and

130 stores are

directly

operated

Gucci Group Consolidation Phase

Product Price Promotion Place

to manage

effectively

portofolio of

brands

premium price coordinated in

a highly

focused

manner

store

online store

which will

each be

unique in its

brand image

and values,

while

leveraging

the shills

and

infrastructur

e of the

enlarged

Group

social network

etc

5. In accordance with the Brand Equity Model, what stage(s) to be emphasized in the stabilization

phase, acquisition phase, and consolidation phase? You can choose each of the Brand Asset

Valuation Model, Brand Dynamics Pyramid, and Brand Resonance Pyramid.

Brand Resonance Pyramid of Gucci

Identity: Deep broad, brand awareness

Meaning: Points of parity and difference

Response: Positive accessible reactions

Relationship: Intense, active loyality

Salience: Luxury retail clothing, comfort and support

Performace: reliable, durable, stylish, price

Imagery: Fashionable, Trendy, Spririted, Classy

Judgement: Credible, Superiority

Feelings: Excitement, Social Approval, Self respect

Resonance: Community, Engagement, Behavioral loyality

6. Related to the brand leveraging secondary association, what were activities undertaken by Gucci

in each of the phases?

a. Gucci Brand Stabilisation Phase: Early 1995 – October 1999

Re-stablished control of Gucci product design and manufacture

Re-established control over Gucci product distribution

Create a balanced product portofolio for a luxury brand

Create a luxury brand consumption Establish a luxury brand

Established a luxury marketing communications platforms

Create a luxury brand comsumption experience

b. Multi-brand Acquisition Phase: November 1999 – July 2001

gucci had transformed from their single brand status to become a multibrand luxury goods

group.

c. Gucci Group Consolidation Phase: August 2001 – April 2004

Gucci stated that their success would depend on their ability to manage effectively a

portfolio brand, which would be unique in its brand image and values, while

leveraging the skills and infrastructure.

7. In terms of Branding Strategies of Gucci, what choice(s) undertaken by Gucci among

alternatives of Individual Brand names, Corporate umbrella or corporate brand names, or

Corporate name combined with individual product names and why? Provide your supporting

analysis.

At first phase, Gucci was qcquired its watch license, the Severin Montres Group and renaming

the company to Gucci Timepieces. The licensee acquisition, motivated to ensure that products

line were consistent with the Gucci brand image and quality.

At the second and third phase, Gucci use Individual brand names. There is no modification for

acquired brand. The acquired brand names still used in order to get the positive benefit from

each brand names. Gucci believed that it had the requisite skills to advantage each category of

acquisition and that intra-group synergies would provide positive benefits for the group as a

whole.

8. What can you suggest to Gucci in term of Marketing Research to be conducted to help

restructure the company?

Gucci must define the problem, decision alternatives and research objectives. Gucci must be

careful with that. After that, Gucci must develop the research plan and collect the information

about consumers, market, and rivals. Then, Gucci must analyse the information about consumers,

market and rivals. By knowing the data, Gucci should improve the quality and product

development to become a market leader. And finally, Gucci must make the decision about the

marketing research.