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Order No. 666503

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Marketing
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Johns Hopkins University
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Case Study: Gucci
Name
Institution
Course
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Date
Problem Definition

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a) Primary Business
Gucci: This is a luxury fashion brand that designs and sells products such as footwear,
accessories, handbags, ready-to-wear, and beauty products (Kumar & Mittal, 2021).
b) Main strategic Problem
Gucci is experiencing reduced demand for the company’s luxury products, as
indicated by reduced sales and revenues (Kumar & Mittal, 2021).
Contributing factors include overreliance on the US, Eurozone and the UK markets,
risky product diversifications and the spread of the Covid 19 pandemic resulting in a
decline in spending on luxury products.
The objectives Gucci is trying to achieve
To regain its market position and brand equity
Improve company sales and revenues
Recover from Covid 19 crisis
Situation Analysis
a) The Market
Potential Users/Buyers and Influencers
Users: The men, women and children are potential users of Gucci Luxury products
Buyers: Potential buyers are middle to high-income consumers who are wealthy and
fashion-conscious. This includes people who like to spend their money on trendy
clothes, accessories, beauty products and other luxury personal products
Potential influencers: Famous individuals with high influence on the high-end market,
including celebrities like Rihanna, Beyonce, the Kardashians 2 Chains and other
famous people (Kumar & Mittal, 2021).
Size of the Market
The market value of the global luxury market as of 2019 was $1.5 trillion (€1.3
trillion), up from $952 billion in 2014.
The market value for the personal luxury goods segment was $315 billion in 2019.
Asia leads in personal luxury product market growth, contributing 35% in global
sales, Europe (31%) and America (30%). However, the US is the largest market,
followed by China, Japan, Italy, the UK, France, S. Korea and Germany (Kumar &
Mittal, 2021).
Generation Y and Z are expected to drive market growth, accounting for a market
share of 55% by 2025 and contributing to 130% of the market growth.
Specific Segments/Targets
Demographics: Segmented based on age and gender and produces goods for all
genders and children. The target market is people of varying ages, including
millennials and Generation Z.
Geographical: Gucci targets are mainly in developed countries, including the US,
Central and West Europe and Asia. The brand is also targeting emerging economies
such as China and South Korea due to a rise in a class of the fashion-savvy middle
class.
Psychological: Gucci targets educated, middle to high-income consumers who are
trendy and fashion-conscious. They like to look good and can spend heavily on luxury
and clothing (Kumar & Mittal, 2021).
Behavioral: Gucci targets regular, loyal and heavy brand users who frequently
purchase from the brand to enhance their appearance and demonstrate a prestigious
status.

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1 Case Study: Gucci Name Institution Course Professor Date Problem Definition 2 a) Primary Business • Gucci: This is a luxury fashion brand that designs and sells products such as footwear, accessories, handbags, ready-to-wear, and beauty products (Kumar & Mittal, 2021). b) Main strategic Problem • Gucci is experiencing reduced demand for the company’s luxury products, as indicated by reduced sales and revenues (Kumar & Mittal, 2021). • Contributing factors include overreliance on the US, Eurozone and the UK markets, risky product diversifications and the spread of the Covid 19 pandemic resulting in a decline in spending on luxury products. The objectives Gucci is trying to achieve • To regain its market position and brand equity • Improve company sales and revenues • Recover from Covid 19 crisis Situation Analysis a) The Market Potential Users/Buyers and Influencers • Users: The men, women and children are potential users of Gucci Luxury products • Buyers: Potential buyers are middle to high-income consumers who are wealthy and fashion-conscious. This includes people who like to spend their money on trendy clothes, accessories, beauty products and other luxury personal products • Potential influencers: Famous individuals with high influence on the high-end market, including celebrities like Rihanna, Beyonce, the Kardashians 2 Chains and other famous people (Kumar & Mittal, 2021). Size of the Market • The market value of the global luxury market as ...
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