Gucci Marketing Strategy to Attract Customers

Guccio Gucci was the son of a leather goods maker who lived in Florence. Guccio was never really interested in the same occupation as his father, so he decided to travel to places around Europe such as London and Paris where he took up various jobs. One job, in particular, was being a lift attendant at the Savoy Hotel in London. This was when he took note of the many wealthy people and their stunning luggage. Guccio later returned to Florence 40 years later and decided to create high-quality leather goods like his father once did. Guccio then opened up the first Gucci store in 1921. Gucci was known for their excellent craftsmanship and by 1932 many rich and famous people were seen flaunting Gucci. In 1953 Guccio Gucci had passed, and in the same year Gucci opened up their first store overseas. From then on Gucci boutiques were opening up worldwide and is still very popular today. The value that Gucci offers is the exclusivity. It can be seen as a status symbol to the consumer. Gucci is also associated with celebrities such as Audrey Hepburn and brands such as Tom Ford. This resonates with Gucci’s target market which helps Gucci maintain their prestigious image in the luxury goods market. Gucci’s products presentation, pricing and distribution accompanied by their excellent customer service creates an experience and connection like no other which holds Gucci in higher esteem in comparison to their competitors.

Market Value

Universal values are known as the basic need of a consumer which every customer wants from a product or service. The universal values that a user is looking for when purchasing Gucci are to propel his/her social status and to look fashionable and chic. The universal values that a payer is looking for when purchasing Gucci is if the product they are buying is of good enough quality for the price they are paying. The payer will know the product is of good quality as Gucci is known for producing only the best, so the value the payer will receive is a high quality product that is timeless and fashionable. The universal values that a buyer is looking for when purchasing Gucci can be divided into two elements, such as, pre-purchase advice and assistance and post-purchase advice. Pre-purchase advice and assistance from the salesperson at Gucci could help the buyer decide what product to purchase and could even persuade the consumer to buy a product they weren’t even looking at. Post-purchase advise and assistance from Gucci will always be prompt and reliable as Gucci is a major brand with a massive reputation so they have to maintain this reputation by helping the customer with any problems they may have after purchasing a product from Gucci.

Furthermore, the individual specific values of purchasing a Gucci product for the user can be seen as satisfying their emotions. By buying Gucci, the user will feel successful and fashionable. The consumer can now show her peers and the general public how successful and stylish he/she is which will satisfy him/her emotionally. Gucci does allow the consumer to use credit cards to make purchases which Gucci will take as full payment, but the payer has 30 to 45 days to pay the money owed. This can attract a consumer to buy a product knowing they don’t need to have all the cash on hand but still buy the product. When purchasing a product from Gucci, you can either shop in store or shop online if Gucci has an online site in your country. As a buyer, buying from Gucci in store is very pleasant the salespeople are very kind and help you individually. The buyer can perceive this as flattering as they are in such a high-profile store and on top of that they have a personal sales person helping them when needed. This alone can push a buyer to purchase products from Gucci.

Reference Groups

Reference groups can be defined as general people who share values, norms and beliefs which companies can refer to when making buying decisions. Reference groups are vital in marketing, as businesses such as Gucci, can see who their target market is, what their target market like and how they prefer to buy their products. Gucci noticed that their online sales have increased by 86% and millennials made up around 50% of these of their revenue. By Gucci noticing that more millennials are buying Gucci, having reference groups could help them know what millennials would want so Gucci could create more products to satisfy the millennial market. Having reference groups could also help improve Gucci’s online store as the use of their online store has increased thus making it easier for consumers to use their store. Gucci is known worldwide, and many people would love to be able to buy their products online. Unfortunately, Gucci doesn’t have an online store in many countries such as South Africa. Having a reference group in some of these countries could help persuade Gucci to launch an online store in these countries as Gucci can see that people are interested in having an online store in their country.

Perception

Perception can be defined as the way the consumer interprets a product using the five senses of sight: 

• smell
• sound
• touch 
• taste

The Perceptual Process

Exposure is when people notice a stimulus that is close enough for their sensory receptors to pick it up. Examples of this could be billboards, newspaper advertisements and TV commercials. Gucci could create exposure for their products on their social media accounts where people electively follow them to see what they are releasing. Gucci also launched a redesigned website which provides visual presentations and stories which also helps Gucci gain exposure. Gucci is also launching a digital campaign for their 2018 spring collection which always the consumers to view their products in virtual reality. This will attract millennials as this is new and fresh thus further adding exposure to their products.

Attention can be described as the amount to which the processing activity is devoted to a stimulus or the time and amount of concentration given in processing the stimuli. As mentioned previously, Gucci is adding augmented and virtual reality in their new digital marketing campaign for their 2018 spring collection. This is sure to grab the attention of consumers as it can be seen as entirely immersive and all they can focus on is the products.

Interpretation is how the consumer perceives what they have seen or heard about the brand or product. By Gucci re-designing their website and providing visual presentations and stories, it will be easier for the customer to interpret Gucci’s message clearly and the consumer can understand the message Gucci is trying to convey easier.

Gucci is a brand that nearly everyone can recall or remember even without marketing it, but marketing is still needed to make sure people always know what products they have and that they stay relevant. Gucci has re-designed its website, added scannable ads, introduced augmented and virtual reality experiences to keep the brand relevant and memorable. Virtual and augmented reality is relatively new, so when a consumer can experience a marketing tool like this, it won easily be forgotten. So, when the consumer has the money or want for a product the first brand they will think about is Gucci due to their out of the box marketing.

The Concept of Flagship Store

The label of flagship store is awarded to the store that is either the newest, most significant or most well-known store out of the stores the brand has. The flagship store is usually at the brands most prominent location with either the biggest store, the store that sells or holds the most volume, the stores first retail location, the store with the best décor or merchandise, or the store that has the most expensive items and only caters to the wealthy.

Millennials from a consumer behaviour point of view can be described as the people born between 1980 and 2000 who have easy access to information due to technological advancements. Due to this the south African millennials are more connected through avenues such as the internet and social media. Brands have to now not only market their products in magazines, newspapers and tv but also market on platforms such as Instagram, sponsored adverts on YouTube and even advertisements on random websites. Although, in South Africa, a lot of millennials do not have access to the internet or easy access to information. Now, if brands want to market their brand successfully, they have to decide who their target market is and what is the best way to market their product to them. For instance, the retailer known as Jet will market their store using flyers, magazines and billboards where internet is not needed, and everyone who reads or sees the advertisement has access to it. A brand like Gucci on the other hand caters to millennials who have access to the internet and information as their target market can afford these luxuries.

Flag ship stores create emotional value, because more often than not, the flagship store is the store that the brand chooses with the best location and products. This store is usually larger and looks more appealing to the other stores to attract the consumer. By purchasing from a flagship store, there is often exclusive products that Are hard to find for other consumers so when people buy it, it can raise their social status. Customers are also treated better by salespersons as all the best employees will be at the flagship store to portray good service to customers. This can make the customer feel unique and important. The store will look different and appealing to the customer which will make it seem like a new experience which could be captivating for the customer.

Moreover, by seeing a brands flagship store, the customer will have a new perception of the brands by seeing its best products and the beautifully designed store. It would make the consumer want to go back to the store to get products they only see online but never at their usual store they visit. This will ultimately leave the customer with a good impression of the store which they would want to revisit and tell more people about.

Conclusion

There are many tactics a brand can use to attract millennials, the main one being social media. Most millennials have access to social media and are continually using at least one platform. Marketers can take advantage of this by using sponsored ads that the customer will come across while scrolling through social media. Brands could also have music playing in stores that millennials listen to attract them in store. Brands can also introduce student discounts as many students can’t always afford products as they are not earning a salary. Ultimately brands could also invest I influences. Influencers usually have a large following in social media and brands can give them their products to use and market on social media. When a millennial sees someone they relate to wearing the brand, this will attract them to the store.