Overview of Business
Dsicuss about the Gucci Swot Analysis And Internal Analysis.
Gucci refers to a fashion brand from Italy. It is owned by a French company. It has a strong digital presence online today which is popular and active in several social media channels. Gucci has tried many new tactics in the past, where it also has tried the shock tactics, to concentrate on the male market, which dint work well (theadvertisingreviewblog, 2013). Later, during 2017in the high-end luxury market, Gucci was discussed more on social media (Jaekel, 2018).The Gucci online fashion and the luxury brands are now present on mobile phones and the proof of its sale is represented in the below figure (Centric Digital, 2016).
Figure: Evolution of Gucci
Gucci integrated with the advanced digital world for its marketing campaigns. It evolved e-commerce, digital marketing, social media and integrated with the mobile applications. This resulted in improving their consumer relationship in the modern world (Danziger, 2017). It also started the “Memes” and a witty caption. The Instagram ads became popular with the memes, where a lot of sharing, conversation took place. However, this dint make the campaign successful as the viewers ended up with negative reaction, on the content(McCrae, 2017).Gucci’s aim is to increase its e-commerce sales from the luxury brand with 24 percent, by 2020 (Milnes, 2016).
Any organization requires a marketing plan as its mission. The mission statement can easily help to know the purpose of a company in a specific business, and can also determine what the company is trying to achieve. It is impossible to work on business’s success, without a mission statement and this can be set only by assessing the business’s condition and its competence. The business’s mission statement concentrates mainly on the market and its environment apart from its product or services. A perfect mission statement must be committed to bring out its best features that benefit the customers and the company, rather than limiting opportunities. Situational analysis on the complete business environment has to be conducted after determining the mission statement. Because, this helps to stay competitive. Marketing is important to stay in the competition. Various social media options are available today for this purpose.
Social media refers to online media which advances the conversation in contract with the traditional media approach. In the traditional media, the readers cannot participate in the development of the content, but it is possible in social media content. Because, it is a place where a lot of people talk, share their views and bookmark in a huge network. There are various social media sites like YouTube and Flickr via social networks like Facebook, Twitter, Pinterest and LinkedIn. In this technology oriented world, there are huge scope to attract large number of people in the social media. Moreover, it is even fun to be a part of it, because of the options like sharing photos, videos, like and dislikes. It provides large engagement which is not possible by Television. At present, all types of businesses are opting social media for marketing, because it offers less cost promotion for the business (Ward, 2016).
Social Media Marketing Strategies
Answer the following to find the best social media for the business (Ward, 2017):
- Which social media suits best for your business?
- What is the estimated budget for the social media plan?
- What are the social media goals of your business?
- Who is implementing the social media plan for your business?
- How is the success of the social media plan measured?
Additionally, through social media it is easy to monitor and can be measured anytime. On the other hand, the social media strategy also requires management of KPI and execution.
The social marketing's goal requires to be integral to the community, where the objective is to increase awareness using a specific tactics, through social media. The tactics proceed with actions and controlling the actions. Social media can also bring opportunities through online advertisements. It benefits with the amount of time and number of employees involve in this approach. Here, the content tracking is required. If one content is present in different ecosystem, with different language at different timing it can help to reach many people and can establish good relationship too. As these days, the digital tactics are essential for marketing. The key point to bridge the gap between the business and the customers is to establish online connection. For instance, via tweets. For a successful plan, good planning is the key, which roots from research and understanding the customer requirements, challenges and its final results (Khinda, 2017). Generally, for a business the Module Leader is responsible for delivering a module, to coordinate, for training and engages in the processes like quality assurance and administration. They even assess, provide feedback, monitor and links with the other department (Williams, 2018).
Therefore, to survive in the marketplace, the digital trends must be followed. And, digital marketing denotes the trending market that helps to promote a business using online tools and strategies, to achieve success with the help of digital devices. Because, this generation has addiction towards technology where internet has a significant role.
The product and price strategy are important components that has to be checked for the Gucci Business. The goals should be smartly set, which should have specific, measurable, attainable, time bound and assessable goals.
The situational analysis has a vital role in assessing the current condition of the business and its market. This analysis helps to develop an effective business or marketing plan, which has to be reviewed periodically. The reviewing of the plan ensures to be updated. On the other hand, the organization’s internal strengths, internal weaknesses, external opportunities, and external threats are represented by this analysis. Therefore, it is also known as SWOT analysis. The main reason for opting the situation analysis is that, it answers various questions that are necessary for transforming the business’s current condition (Lake, 2017).
On the other hand, it is a systematic collection and evaluation that are done based on the past and present political, economic, social, and technology based data of the business. This is known as PEST analysis. The data scrutinizes the internal and external energies which can influence the performance of the organization. Then, it assess the current and future strengths of the business in the form of weaknesses, opportunities and threats.
Therefore, prior to the development of marketing strategy of any business, it is essential to conduct the situation analysis. Moreover, it helps to find the customers and potential customers of the business. It is right to states that, the situation analysis is an eye-opener that helps to know what is happening inside the business and it also helps to determine the business’s next steps in the marketplace (Lake, 2017).
To know whether the Situational Analysis is good enough or not the following question can be helpful.
- Is the analysis clearly understood by all?
- Can the situational analysis be implemented practically?
- Does it focus on both internally and externally key factors that impact on the business?
- Can it identify the business’s future goals clearly?
- Does it give way for any further analysis?
- It has good brand equity, as its fashion brand is worth 12.4 billion dollars. On the other hand, globally it stands at 38th Whereas, in 2016 it was ranked as 44.
- In the market, it provides the highest quality products with luxurious items.
- Only very less companies could match its fashion standards.
- In international market, it has strong identity.
- It has established strong tie ups with other brand ventures, like in automobiles. For example, Fiat, General Motors and Ford.
- It has a good and effective product line, both for men and women.
- It is part of several CSR activities like UNICEF (United Nations International Children's Emergency Fund).
- It ensures to keep changing to provide fresh fashion for its customers.
- Its brand name is forged in various countries. It often faces trademark breaching issues.
- It has various range of products that possess risk for diluting the brand.
- The brand requires continuous updating. Because, if fashion is not fresh it can have negative impact on its sales. Moreover, it can also affect the number of loyal customers.
- In advertising using sexuality (females) is where Gucci faces more criticism. The marketers agree that its sales relies on this factor.
- Instability in its management.
- Today’s generation is more conscious about brand. Their brand selection denotes the earning power, and this is a great opportunity for the brand.
- Fashion is always trending and it will never end.
- For the brands like Gucci, the emerging markets (China and India) are considered as a hotspot. Because, there are high chances for increased consumption in these markets.
- Online shopping facilities.
- Increasing competition can be considered as the biggest threat for Gucci. Because, it has equivalent competitors in the fashion market.
- The forgery of the brand name can have negative impact on the market.
- It can also affect the trust of their loyal customers.
- There are high chances for threats due to involvement of several companies in the same sector.
GUCCI is the world’s leading renowned fashion brand and it prepares trendy apparels for the kids, men and women, with the high quality fabric and other materials. It has high and great value among its clients. These apparels are prepared for high and middle income group and it provides excellent and innovative styles and designs. GUCCI also prepares other products that are enough and great to create delicacy and decency in the user’s personalities (Fabrikant, 2018). GUCCI has attained the status of highly successful brand, because it has most desired luxury fashion brand. These are used to globalize and extend the business. It contributes to intensify the competition in the market, because it has various factors like growing consumer expectations, look for the authenticity and clear brand positioning. It enhances the women and men’s personality, as it is prepares its apparels in unique style that is also known as fashion brand or Italian brand. The main business objectives are listed below.
- The Italian or fashion brands are preparing the dresses in various styles and designs for their clients.
- The Fashion designers must use creative ideas to designs the dresses that has different styles, from time-to-time.
- Provide the dresses in innovative and unique style and cut work.
- GUCCI has creative team to work great and best in the fashion industry.
- It should provide unique and latest styles for various occasions.
To establish the GUCCI business goals and objectives by determine the marketing strategies for new venture. In GUCCI fashion, marketing plan is critical element to ensuring the long term success for a fashion brands. It creates the successful marketing plan by establish the goals and objective for an business processes because the marketing plan is always be based on business objectives and goals and it used to expanding the company market shares. The GUCCI creates the most efficient way to plan the marketing strategies is able to achieve the organization goals and objectives (Businessplanwritingservices.com, 2018). The GUCCI fashion research and determine the marketing strategy to implement the marketing plan that research may involve the primary and secondary sources because that information are attained from business plan. The business objectives and goals are includes the following factors to achieve the organization goals and provide the effective business for an organization. The factor are SWOT analysis, environmental factors, forces of Michael Porter Analysis and some others information. The business goals and objectives are clearly set by the organization to developing action plan and marketing strategy. These are utilizing the company marketing objective and it achieved by marketing mix that is set of marketing tool. It is designed to influence the consumer decision making and it provide the profitable exchanges.
The GUCCI digital goals are based on Business goals. The business goals are achieved by using the business marketing mix. The marketing mix is used to provide marketing strategies that modify and produce the suitable to the preferences of customers. The marketing mix is based on product strategy, price strategy, place and promotion strategy (8ways.ch, 2018).
In Product Strategy, generally the customers are buying the products by comparing the brands depend on style, quality and price. So, GUCCI is providing the offer to the customer or consumer with various and experiential attributes to differentiate the products from the competitors. Basically the products are based on design, features, brand name, brand size and quality. The GUCCI products are has many attributes including brand name, complexity, newness and quality. The GUCCI also uses the technology tools to contribute the significant effect on consumer purchases through the promotions. The technology tools are magazines, internet, bill boards and other media.
In price strategy, it is most important tools for the company. Generally, the price strategy will be affect the company directions whether to continue or stop financing the venture by the profit that is generate from the selling. The incremental and decremented of the selling is not only depending on product quality also depending on the product price that going to the market. The GUCCI business needs to determine the appropriate price for the product with high quality. So, the price strategy is most vital point for the company. It will determine depends on the high and low quality of material to manufacture the products plus the mart up to create the more profit for a company. Basically, the GUCCI is mostly known through the world about this good and excellent design and prestigious.
In promotion strategy, this strategy is basically necessary to the company because, the promotion is to inform its potential customer about the latest, current and business products especially when it comes to new venture at new target market. It is secret key to the company to communication between the general public and consumers. The promotion issued to advertising the sales and it publicity the product that influence what customer and consumer think about the products. This is important marketing communications play a critical role in informing the consumers about the product by using the common ways that is technology tools like social media, television, fashion magazine and bill board. The promotion is used for very effective to encourage the consumers to buy more.
In Place strategy, the company must be planning the place as best as possible. It is one of important factors to provide the utility to the customer. The fashion company is must be locate at right place is possible to the potential consumers because it is very convenient for them to buy the product. It is effective distribution of products among the marketing channel such as retailers and wholesalers. It plays a major role in influencing the consumer motives and it distributing the products can influence the consumers in a several ways. It increases the consumers to finding and buying the products.
The GUCCI Italian fashion brand is regarded as the world largest selling and it founded in 1921 in Florence by Guccio GUCCI. The Italian brand is widely known for luxury products and high quality that include the sun glasses, hand bags, shoes, clothes and other accessories. The GUCCI fashion brand is decided to expanding the target audience because the Gucci primary target market has the high status, middle aged business women, business men and high income. It has more mature line that designed to appeal to a younger audience. Expanding the target audience is used to reignite the international interest in fashion brand and it prevent the specific generation. It accelerate the international appear and it reach out the wider audience. The fashion brand regarded has successfully matured with aristocratic lines (Marketing Dawn, 2018).
Care about customers
The Gucci operates in more than 400 stores across the world including the duty free boutiques, franchise stores, specialty stores and leading department stores. The Gucci repositioning the fashion brand to appeal to a wider audience Gucci also tailored that products lines to ensure the perfectly matched the customers tastes. The fashion brand performed the in-depth market research based on client base that is used to establish the organization needs, tastes and ambitions. It able to create the product that matches the client’s needs.
The Gucci fashion brands adopt a range of marketing technique to improve the business operations and it embraces the technological chances. It has been across a marketing platform including offline promotion, online advertising, social media and organic search engine. These are used to provide the successful business will be more important to keep up with marketing stratosphere and also it use the traditional approaches to provide the efficient business processes.
Strategic Orientation and Brand Positioning
The Gucci fashion brand is mainly focus on strategic orientation and brand positioning and it renowned for its very strong brand that focuses on innovation, high quality, high class and sophistication (Target.com, 2018). The fashion brand strategically oriented is appeals to customer’s status, image and self-worth. Finally, the Gucci committed to maintaining the business conduct and consistent brand strategy that focuses on quality, prestige, appeal and exclusivity. Basically, the Gucci adopting the modern marketing techniques such as online marketing, social media marketing and remains committed to organization values. The business conduct is committed to the maintaining the business marketing strategy to provide the effective business processes and operations (Lovelock and Wirtz, 2016).
Generally, the Gucci fashion brand is prepares the dresses for various segments of society. These dresses are perfect for rich class, upper middle class and middle class and these are available in various fabric quality. It meets the customers and client demands for various events and occasions (Lantigua, 2018). It needs to expand the fashion house for the creation of various luxurious products and it used to enhance the personality and give the very decent looks.
The market segmentation is divided in to four segmentation such as Geographic segmentation, demographic segmentation, behavior segmentation and psychographic segmentation. In Geographic segmentation, the Gucci fashion brand is watch the geographic segmentation would target on the cities area more than rural area because it has the high standard living and high consumption (Cadogan, 2009). It provides the understanding of cultural differences between the counties and it pivotal for business success. It is division of the market according to the various geographical units like neighborhoods, regions, countries and continents. It is useful strategy to segment the market and it provides the quick overview of business process (Medium, 2018).
In demographic segmentation, the Gucci is uses the main age frame for target market that is not specifically mentions. In Gucci fashion brand, the watches are branded and the prices are very expensive. The products are only targeting the high income people and it is purchased by both genders. It is very popular form of dividing the market is through demographic variables. It is used to understand and identify their needs, products, service rates and services usage on fashion brand (CONSUMER BEHAVIOR AND MARKETING STRATEGY, 2018).
In psychographic segmentation, the Gucci is targeting on social class of people for the fashion brand and it will be high class people high income people and also well educated. Generally, the consumers are spending the more their time and have the lifestyle of purchasing the goods. And the consumers are will be showing off the brand was too expensive and glamour (Digital, 2018).
In behavior segmentation, the Gucci watches are does not have the behavior segmentation because it represents the status of someone design and the brand of it. And the Gucci has a variety of design apparel and also jeweler because the Gucci watches are generally can be used on special events, functions and special occasion. This brand is also targeting the consumers that are high brand loyalty. The marketing segmentation is shown below (Blokdyk et al., 2018).
The market segmentation requires the following useful segmentation such as measurable, actionable, differentiable, substantial and accessible.
The channel strategy is one of major role to improving the Gucci business because it is used to improve the business operations and it embraces the technological chances. It has been across a marketing platform including offline promotion, online advertising, social media and organic search engine (Cateora et al., 2016). It is useful strategy to segment the market and it provides the quick overview of business process. It is used to understand and identify their needs, products, service rates and services usage on fashion brand. Basically, the Gucci adopting the modern marketing techniques such as online marketing, social media marketing and remains committed to organization values (Ferrell, 2016).
The Gucci fashion brand uses the content strategy to construct and grow business through organic growth techniques. This technique is used to produce a continual stream of content that keeps the information with his audience. It delivery the content and Gucci notes that are recording the matter of material and execution of material at hand. These contents are having experiences and lessons that are needs to delivered and executed to the business to their consumers and business. The Gucci creates the priority to release the content that are already conceptually formed in many ways that is used to ensure the target audience and engaged with other marketing competitors (Fifield, 2016). The content strategy is engage more conversation with consumers and customers around the products and brand that conversation is moving forward instead of stagnating around the mature ideas.
The social media conversations can be tracked and analyzed using a specialized site called ListenLogic. It in order to reveal various valuable consumer insights (Connolly, 2017).
The following guidelines help in the marketing strategy and its budget (Advantagemedia.com, 2017) (Chaffey and Ellis-Chadwick, 2016):
- A through research on the business's past, with in-depth analysis.
- By reviewing the market.
- Setting effective goals.
- Building improved strategy.
- Optimizing interacting with the audiences for marketing campaign.
- Adjusting time and money.
- Gathering the data and analyzing
It is proved that, digital marketing is profitable. Moreover, effective research about the industry trends can help to find the indicative percentage. The market budget must be greater than ten percent from the revenue of the company. The digital marketing budget can be set to 25 percent. The digital marketing budget must be divided into three categories such as Digital Advertising, Content Marketing and Website Development (i.e., 13 percent for digital advertising, 12percent for content marketing and remaining 12 percent for the website (Lazarus, 2016) (Dodson, 2016). All the above factors must be considered in budget estimation. It is important to set a realistic budget both for the team and for the organization. If the budget goes extremely over the set budget, then it indicates an unrealistic plan. Therefore, the perfect marketing should include budget for these factors.It is also significant to make sure that the budget does not cross the set limits. Here, the role of Module Leader takes place, where most of the module delivery responsibilities are handled by him. There must be coordination in administering all the processes.
Business Objectives, Digital Goals and KPI
The digital media implementation for any business or organization is a strategic plan that helps in digitizing the processes followed in the business. This type of implementation could mean to start up a social media website and transforming paper work into electronic database. It is clear that, whatever type of digital media the company uses, it supports well for setting its goals. On the other hand, the implementation goals support the business in effective planning and implementation of its strategy. Generally, being a popular technology the field of digital media keeps evolving constantly. Thus, the organization also has a lot of home work to do, to keep up with this technology. For instance, the organization would have to set some deadline/ schedule for its digital media activities and help the functioning of the organization (Bradley, 2018).
The report concludes that, first it is important to evaluate the stance of the business in social media. This helps to determine where the business can go. Next, setting the goals of where you want your business to land in next 3 months, 6 months and a year, with the social media campaign efforts. Don’t expect automatic results from social media campaign tasks. Because, it requires extra care in selecting the right social platforms for exposure of the business. It is also determined that the business should not approach to all the social media out there instead they should selective so that they can show their commitments to frequently post about the business.It is observed that with lot of social media platforms decreases the consistency of the posts for the reader and this can decrease the interest of the readers. In digital media it is important to know their audience, for reaching them and it follows by engaging and duplicating or increasing same type of audiences. Further, it is researched that analyzing the efforts has significant impact on the business. Thus, develop an effective method for handling account, posts and engagement in the network. Most importantly, it is recommended that the business must dream big with a realistic plan for accomplishing the social media goals.
The overall investigation recommends the implementation plan to check the current situation, its future goals, how to measure success, benchmark, its short-term execution plan (timeline, team, tools, social channels, budget, resources, example posting schedule etc...) and its long-term plan.
In social media marketing, the need for SEO, engaging with the potential customers and the need of increasing the capital. All these factors helps to gain number one keyword in Google. This leads to the expansion of the business according to Social Marketing Plan (Li, 2018).
Therefore, the evolution of the Gucci business is represented. The situational analysis is conducted to know the current position of the business. This analysis assists to know the internal strengths, internal weaknesses, external opportunities and external threats for the business. The business objectives are defined with digital goals and KPI. The target audience are identified. The tactics and actions are presented. The necessary control measurements and analytics are studied. As a whole, it is understood that trust plays a significant role in social media engagement.
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