LETTER OF TRANSMITTAL

Date: 18.03.2019
………………….
Aunima Nazmun Nahar , (Mkt-460)
Lecturer, Department of Marketing
School of Business and Economics
North South University, Dhaka

SUBJECT: Submission of group report on GUCCI Brand

Dear Ma’am,

With due respect, we would like to mention that, we have prepared our group report, “The
Fashion Industry” on brand GUCCI. The report made based on the detailed management outlines
and projections of the brand that we have come to know by researching the about the brand.
While preparing the report we have tried our best to include all the relevant information and
analysis. We hope you will find this report satisfactory. We expect your considerable judgment
in terms of any accidental error throughout the report.

We, therefore, hope that you will find this report will be very informative and useful and it will
be very helpful for our upcoming future.

Sincerely Yours,

1. Zarin Tasneem Bibha (1631968630)

2. Dilshad Zahan Dipa (1631359030)

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ACKNOWLEDGEMENT

This project has been a milestone for us and we are really thankful to those people who helped us
a lot to achieve this and regarding to this work.

We express our gratitude to our course instructor Aunima Nazmun Nahar, Member of Faculty,
Department of Marketing, School of Business, North South University, Dhaka, for guiding us
and giving us the inspiration to complete this. We are fortunate to have her support to prepare
this report and throughout this course as well.

All the group members worked really hard to complete this report and also we supported each
other in every possible ways.

We hope our unintentionally committed mistakes and errors will be forgiven.

Thank you.

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 Table of contents

Contents Page no
1. Executive summery 4

2. Information 5

3. Pestle analysis of Gucci 5-7

4. Porter’s five forces 7-8

5. Analyzing competitors 8

6. Corporate level, SBU level & Functional 8-10

level
7. Segmentation 10-11

8. Targeting 11

9. Positioning strategy 12

10. Promotional campaign 12

11. conclusion 13

12. References 13

EXECUTIVE SUMMARY

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This assignment tends to provide information about GUCCI Fashion Company and its

advancement in Bangladesh. GUCCI is one of the leading fashion companies of world. One of

the major organizational goals is to give a whole new definition to modern fashion. GUCCI has

created a new sense of fashion worldwide. GUCCI was founded by Guccio Gucci in Italy, in

1921. Influential, innovative and progressive, Gucci is reinventing a wholly modern approach to

fashion. Under the new vision of creative director Alessandro Michele, the House has redefined

luxury for the 21st century, further reinforcing its position as one of the world’s most desirable

fashion houses. Eclectic, contemporary, romantic—Gucci products represent the pinnacle of

Italian craftsmanship and are unsurpassed for their quality and attention to detail. Gucci is part of

the Kering Group, a world leader in apparel and accessories that owns a portfolio of powerful

luxury and sport and lifestyle brands. By entering in Bangladeshi business market, GUCCI will

inaugurate a new era of modern fashion for the people of Bangladesh. As because, currently

GUCCI is one of the biggest and most successful manufacturer of high end leather goods,

clothing and other fashion products, entering in Bangladeshi market, will be a great news for

Bangladeshi fashion industry.

Information:

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GUCCI is well known rugged brand in world. GUCCI has been innovative and interesting in the

line of fashion industry. The brand is the innovation in fashion product. It will continue to

innovate and design unique strategies. They offer limited edition items, which allow creating

perfect personal look which is updated throughout the season. They always work on wearable

products and fashion accessories. Since handbag has become a fashion sign, GUCCI has taken

this trend beyond imagination. GUCCI has broadened its concept to include a newer, edgier

image, appealing to all styles, trends and ages, while keeping the product in the purest form it

provides customers with a rugged, trendy yet fashionable sense of clothing.

GUCCI is clothing, fashion and lifestyle based brand which is well known all over in the world.

It us an authentic brand for men and women’s clothing. The brand is the innovation in fashion

product. It will continue to innovate and design unique strategies. They always work on the

unique fashion wears through different seasons, and different occasion of fashion.

PESTLE Analysis of GUCCI

Political Factors:

The political factor majorly affects Gucci, the administration changing its principles and
guideline could straightforwardly influence the Gucci deals and buy. Gucci confronted some
negative impacts on account of the laws with respect to import, send out and expanding cost. The
political changes could likewise positively affect Gucci deals by presenting new publicizing
technique and the legislative help for it.

Economic Factors:

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Gucci confronted difficulties in the market because of monetary variables like skimmed costs
and client were searching for high protection before buy. These issues had never been featured
over the most recent ten years and had influenced Gucci monetarily. Gucci has contributed in the
worldwide economy, expanding the Total national output and living standards. Internationally,
Gucci contributed a beneficial outcome on the monetary development.

Social Factors:

As indicated by Bangladesh‘s populace examination chart, Bangladesh’s populace increments as

years cruised. More populace essentially implies additionally spending among the general public.
Additionally, Bangladesh is likewise one of the celebrated vacation destinations in Asia making
appropriate to have a plan for Gucci .Customers demeanor towards design is quickly changing as
they have ended up aware of the most recent pattern. An expansion sought after for most recent
design has been suited by Gucci to improve their deals to mirror the adjustment popular. Gucci’s
primary target is to achieve the consideration of youthful to grown up people.

Technological Factors:

Headway in innovation impacts each business colossally; they give simple methods for
advertising inclusion and catch the specialty showcase. Gucci is accessible on Facebook, Twitter,
Snapchat, Pinterest, Instagram, Google+ and YouTube. Gucci is publicized in view of the
progression of innovation, more individuals know about the brand.

Legal Factors:

Gucci entirely submits to the law to sell the brand and give individuals their special items, in the
market. Gucci is obliged as far as 'submitted material, for example, any thought, data and so forth
unveiled through email won't be viewed as private. Additionally, as far as the exactness of the
brand sold to the clients, guarantees end, restricted risk and so on.

Environmental Factors:

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High class brands like Gucci who fabricate crocodile sacks and fur garments are effectively the
objective of the rights lobbyist yet Gucci depicts that since the assembling incorporates common
assets henceforth they are intrigued to secure them and support them. Likewise, Kerning, pioneer
of the aggregate intends to dispose of every single unsafe component by 2020.

Porter’s five forces:

Threat of new entrants of Gucci: Gucci is the very popular fashion brand in the world. In this
industry it’s fairly difficult to achieve the economic scale but Gucci brand did it very well. This
will help to produce more capacity of product with huge cost. In Bangladesh, Gucci can take
advantage of this economic scale for fighting of new entrants through its cost advantage. Gucci
made differentiated and innovative products to attract the consumers and spend their marketing
to build strong brand image. We will target the posh people for these innovative products
because it’s very costly. This will help to retain the customers rather than losing them new
entrants.

Bargaining power of suppliers: Gucci can easily change their suppliers because they can
purchase raw materials at a low cost and if the products are not suitable for Gucci brand they can
change their suppliers. In Bangladesh we have a lot of suppliers which will supply good products
with a low cost so we can easily bargain with our suppliers. We have different suppliers for
different geographic location. As the fashion industry, it’s important to maintain our customer &
supplier relation so that we can think about the both of us benefited with the product.

Bargaining power of buyers: To attract more buyers Gucci can focus on innovated and
differentiated products. In this industry, product differentiated and quality is the most important
for the buyers. As the bargaining power of buyers is weak, we can create awareness through
marketing efforts and build the brand loyalty. In Bangladesh we can take help to our economic of
scale to develop a cost advantage and sell at a minimum price.

Threat of substitute: In the industry there are very few substitute products that Gucci operates.
In Bangladesh, Gucci can only focus on providing the greater quality in their product. We will
provide good quality product at a minimum price rather than the other substitute like Prada ,
Versace etc , their price are higher than Gucci products. We focus on differentiate products
which will ensure that its product as unique and do not shift easily to the substitute product.

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Rivalry: Gucci brand provides exclusive, innovative and unique products in the fashion industry.
Because of the popular brand in world, Gucci have a lot of competitors in this industry. In
Bangladesh, Gucci needs to focus on differentiating its products so that the competitors will have
less effort on their customers and their unique products. After launching the brand, we need to
focus on new customers rather than winning the ones from existing companies. For tackle the
industry in Bangladesh Gucci needs to maintain the good supply demand relationship with the
industry and production.

Analyzing Competitors:

Direct competitors Indirect competitors

 Prada  Chanel
 Armani  Zara
 Louis Vuitton
 Versace
 Burberry

Directional strategies of Gucci first 2 years:

We will be launching Gucci brand in Bangladesh which is the 2 nd largest fashion house in the
world. Our directional strategy for the first two years of launching in Bangladesh will be the
growth strategy which will help to concentrate of our products and services. Firstly we will be
starting our showroom in Gulshan area. Our plan will be horizontally increasing our products.
For the 1st year, we will target our young generation because they are conscious about their life
style. So that’s why we are producing some innovative products like- exclusive dresses, watches
and perfume in our showroom. Then the 2nd year , for the profitable growth we will increasing
our market share in existing market by adding some high quality leather products such as –

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liberal bags , belts and shoes. We must invest for our showroom to make it innovative, unique
and entertaining experiences for the consumers.

Directional strategy of Gucci the next 5 years:

We all know that Gucci is an international brand and we will be launching Gucci in Bangladesh.
After launching Gucci first two years we will follow the growth strategy which to help us to
increasing our product demand. Then after the five year of launching we will want to stable our
brand to the existing market with no changes of products and our aim is to be maintaining the
maximum profit. Gucci’s entire products are so innovative, classy, stylish and expensive as well
and our product quality is too good. For increasing the sale and profit of our future product,
sometimes we will give 20 % sale on our stocked product which will help to gather more profit
and future investment, from that profit we can invest our new future product and try to create
consumer attraction.

Porter’s generic strategy: Gucci is focusing focused differentiation strategy in term of

production, prices and services. Though we are newly lunching our brand in Bangladesh we all
know about Gucci. As per our brand and products pricing, we are going to focusing middle
higher class to higher class people. Because we know that Gucci’s product price are quite high
and not affordable for everyone. We will provide different types of unique products.

Bowman’s strategy clock: In bowman’s strategy clock Gucci is focusing differentiation

strategy. Though Gucci is an exclusive brand, so it comes up with various designer products such
as dresses, ladies bag, shoes, perfume .Consumer will be willing to purchase the product based
on high perceived value. They don’t think about the price. Our products price is high and good
quality. Our products have high perceived value. So consumer will never think about the price.
They will buy our product based on perceived value.

Ansoff’s strategy of Gucci the first 5 years:

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Gucci is an international fashion brand. In worldwide they serve a lot of exclusive products and
in these products we are launching in Bangladesh. After launching Gucci brand we will follow
the market development strategy because we will be launching the Gucci brand exists products in
Bangladesh. So, we will create a new market in Bangladesh. We will target the posh, upper
higher class people and the fashionista who are conscious about their fashion. We will follow the
B2C for our distribution channels because Gucci distribute their product to the consumers and
the fashion industry. We will locate our showrooms to the high profile street location that are
exclusive and distinguished such as Gulshan, Banani, Uttara and Dhanmondi. In that way, after
5 years we will create awareness of market .

Competitive position tactics:

According to our analysis, we are going to be a market nicher in Bangladesh. Because we serve
the smaller segments not being perused by other fashion industries. We are concentrated only
one market. For this we will be going to apply some specific tactics. Firstly we will target the
specific customers who will love to use the innovative products and who will able to buy it.
Although, Gucci is a very expensive and exclusive brand so we will target posh people. Gucci is
costly but their products qualities are too good rather than other brands. So, we will try to serve
our best product to the consumers otherwise they will shift their brands.

Segmentation:

Geographic: Gucci is an international brand, they aware of their quality product and where they
locate their brand showroom. So, first we will locate our Gucci showroom in Gulshan area
Bangladesh. After the Gulshan area we will open our showroom at Uttara, Banani and
Dhanmondi because in these areas are the main point in Dhaka city. Then the two years later we
will think about to locate our showroom in Chittagong because it’s a center of Bangladesh.

Demographic: In the fashion industry, Gucci serves their best innovative, classy, exclusive
products to the consumers. Gucci’s current customers are both male and female in our young
generation because they are conscious about their lifestyle and we are primarily target the
celebrities, the rich, fashionista and the upper higher class people. We will target 20-50 years old
people. Gucci’s products are very expensive that’s why most of the people are not afford it.

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Psychographic: Gucci is all about fashion. How people will create their values and lifestyle it’s
depend on them. Gucci is one kind of innovators because they are successful, sophisticated, high
self-esteem and they create innovative, exclusive products for the consumers. Gucci brand
concentrated their brand image so in Bangladesh they try to maintain it. Gucci target the extreme
rich people for their product. Their purchases reflect cultivate tastes for upscale, niche product
and services. Most of the people want to use unique and luxuries product and Gucci serves them
what they want.

Behavioral: Gucci is a well-known brand who serves the best quality product which is very
durable. Gucci has a high percentage of consumer’s loyalty because of their product and
durability. Gucci brand comes with great experience in different dimension. They serve the best
leather products to the consumers.

Targeting:

Kotler’s targeting strategy: In Kotler’s targeting strategy Gucci goes with the differentiated
strategy. When we will be launching Gucci brand in Bangladesh first of all, we will targeting
several market with multiple varieties of products. We will target women, men and celebrities for
our products. We will target few segment with luxury and unique products. After few years later
we will provide products for children. First few years our target audience will be women, man
and celebrities.

Derek’s targeting strategy: In Derek’s targeting strategy Gucci goes with the selective
specialization. Our brand has lot of segment. We will producing dresses, shoes, and perfume for
men and women. Dresses and shoes are one segment and perfume is another segment. Our
segment will be selective. And we will have few segments.

Positioning strategy:

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PODS of Gucci: Gucci brand is luxuries brand. Our products is different from the another brand.
Our biggest competitor is Prada. But our product is different from Prada. Prada is known for its
combination of simplicity and functionality in the products, but our brand Gucci is more popular
for its unique products. So our brand is different from the competitor. Our product is desire to
customer. We are providing high quality product to the customer.

Pops of Gucci : Point of parity are those elements which will be compare to other brands in
same market. The market considers about the specific product as well as the competitors. Gucci
is a very exclusive brand of leather. Their products are high quality with premium prices. The
Italian fashion house Gucci should be very selective of where distributes its offerings and they
must be maintain their exclusivity and durability.

Positioning: Gucci positioned itself as an exclusive, innovative product. We focus on products

of high class, sophistication, style and of the finest quality. Gucci’s target market includes
celebrities, high earning individuals and business class, placing itself a very high class category.
They positioned their product through the consumer’s preferences. In Bangladesh we target a
few segments for our Gucci brand so we will position our showrooms in posh areas. Proper
positioning is most important for Gucci brand and to make profit.

Promotional campaign for Gucci: After launching the Gucci brand in Bangladesh, we need to
promote it to the consumers. Gucci has a strong digital existence online and is heavily active in
social media platforms like Face-book, Instagram, You-tube, Twitter, Snap-chat, pinterest and
Gucci style etc. Gucci is the high-end luxuries market in social media. To promoting Gucci in
Bangladesh we will use TVC Ads, Billboards in highway and Google ads also. As if we will
focus posh people so we will make posters or leaflets for this posh area. Most of the people in
Bangladesh are active in social media so it’s a good opportunity to promoting our campaign.
Gucci’s tagline is “Quality is remembered long after price is forgotten”. In Bangladesh we make
a poster with a new tagline which is “life is not perfect but your outfit can be”.

Conclusion:
As a conclusion, Gucci is adapting to fashion trends while keeping sophistication in mind.
Managers go and Gucci remains. Moreover, designer companies like Gucci work hard to

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establish high brand equity, as it is essential for luxury business. Gucci is currently revamping its
business structure because the brand fell significantly in the rankings this year, slipping 14% in
brand value, according to Inter brand. Reasons are mainly economic and socio-cultural: a
decreasing demand in the Chinese market, difficult macroeconomic conditions in Europe and a
shift in the consumer tastes and buying processes. Nowadays, according to BrandZ , consumers
have a harder time aligning luxury purchases with their views about consuming responsibly. But
Gucci still remains the 3rd best luxury brand. We will illustrate why is still a strong brand with
the customer-based brand equity model.

References:

1.http://redirect.viglink.com/?
key=28ced6eedffd520df9644b538e4132d9&u=www.gucci.com&&type=FE

2. https://www.gucci.com/

3. https://www.marketing91.com/marketing-strategy-gucci/

4. https://www.8ways.ch/en/digital-news/5-branding-lessons-gucci

5. https://www.bartleby.com/essay/Pest-Analysis-of-Gucci-in-Malaysia-P3HAWJ4K6YYA

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