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Opf Gucci

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Locality of gucci store in india

The stores are located on expensive high street locations, thus attracting affluent
consumers.
 The window displays are provocative and the interior has a free flow layout as its
visually appealing and allows consumers to browse comfortably.
 The décor is rich and classic to add to the atmosphere of the store.
The salespeople are model like, smartly dressed all in black and ready to assist
consumers in any way.
 Even the security guard is suitably dressed to add to the image.
The distinctive Gucci packaging concludes the experience. Gucci has directly operated
stores to ensure that they retain control over their products and can build their image
around these stores.
It is also possible to view and purchase Gucci products online, thus reaching a far greater
target audience.
Advertising

The image and quality of as the promotion of their perfume ‘Opium’


with a naked image of So status surrounding Gucci gives added value to
the products.
 This is created through advertising, innovative designers and the
whole experience of buying Gucci.
 Gucci uses hot advertising such Dahl.
Gucci’s advertisement in Vogue also created disagreement with an
image of a woman with the letter ‘G’ imprinted in her pubic hair.
Table 1 - Comparison of Gucci, Louis Vuitton and Vertu
Gucci Louis Vuitton Vertu
Established 1921 1854 2000
Sector Fashion and Design Luxury Goods Luxury Communication
Products Men and Women’s Wear, Leather goods, ready-to-wear, Signature Collection
Shoes, Jewellery, Watches, shoes, watches, jewellery, Stainless Steel Collection
Perfumes, Eyewear, Home goods, textiles, writing instruments Duo Stainless Steel
Luggage/Handbags, & accessories. Bordeaux Stainless Steel
Baby Wear. Famous for its handbags.
Average Pricing €800 (Handbag) $600 – $2,000 (Handbag) €6,000
Typical Florence, Rome, Paris, New Paris, New York, Tokyo, Paris, New York, Hong Kong,
Locations York, London, Palm Beach, Dubai, Las Vegas, Los Singapore, London.
Tokyo and Hong Kong. Angeles.
300 Store Locations
Retail Provocative window displays, Products prominently “Gallery like” feel to store,
Environment model like salespeople dressed in displayed. Stores vary in architectural display cases,
all black, free flow layout and product stocked. Uses limestone floors, warm
rich décor. concessions in department lighting, clean black and
stores such as Harrods and white colours and artwork on
Selfridges. Very display. Salespeople have
contemporary in design and expert product knowledge.
feel.

Business Locate on high street, directly Located in high street Located on high street,
Strategies operated stores, online locations or exclusive directly operated stores, along
purchasing, backward integration shopping malls with other with leading department
for watch business and expansion designer brands. stores, fine jewellers, client
of brand. Online purchasing in the US suites and online purchasing.
only. Have used Uma Partnerships with jewellers.
Thurman and Jennifer Lopez
in ad campaigns.
Swot of india

Strengths : -
Strong Brand Name
Strong Presence in International Market
More control over Distribution Channel
Weakness : –
Unstable Management/Interest difference between family members can arise
Weak Profitability from other brands than GUCCI
Weak Financial Base (Decline in Margins, High Debt…)
Opportunities : –
Enter High possible Markets in Asia, Particularly India and China.
Consolidation of other Brands(Build Competitive Advantage in different business
segments)
Threats : –
Take over by PPR who owns a 68% stake in capital of GUCCI
Threats of Competitors from medium Brands that have the potential to move to
Premium Brands in Future Example – ZARA & GAP

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