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
Guccis 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 childrens 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 Guccis product is a pride.
Price
The Guccis 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 Guccis 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
Re premium
stablished

Place

acquisitioned

luxury

and

marketing

bought

Gucci

communicati

Belgium,

product

ons platform

Korea,

control

of

design and

price

Promotion
establish

etc

franchise
in
Italy,
Taiwan,

manufactur
e

achieved
venture

create

joint
control

store

balanced

Singapore

product

Malaysia

in
and

portofolio
for a luxury
brand

create

luxury
brand
consumptio
n
Multi-brand Acquisition Phase
Product
Price
gucci
had
premium price

Promotion
support

Place

Gucci already

transformed

womens

have

181

from

RTW

stores

and

their

single brand

collection

status

2001

to

become

in

130 stores are

directly

operated

multibrand
luxury goods
group
Gucci Group Consolidation Phase
Product
Price
to manage
premium price

Promotion
Place
coordinated in

effectively

portofolio of

focused

brands

manner

which
each

highly

will

social network

be

etc

store
online store

unique in its
brand image
and

values,

while
leveraging
the

shills

and
infrastructur
e

of

the

enlarged
Group
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.