The House Of Gucci
Posted 28th February 2014 at 06:06 PM by mamicha
The house of Gucci was founded by Gucci in Florence ,Italy 1921.Gucci was a son of a leather Craftsman. While visiting Paris and London ,he was impressed by the sophistication of the culture he encountered. He returned to Italy to open his store,which started selling small luggage and saddler.
Soon Gucci was a widely popular store selling exclusive leather goods. Gucci products grabbed the attention of many powerful celebrities including Jackie Kennedy,Grace Kelly and Audrey Hepburn. Gucci went so far as to name a bag in its range the “Jackie O” after the former first lady Jackie Kennedy.These women represented elegance ,which enhanced the prestigious aura of Gucci.
Business week magazine says that Gucci made more than US$7Billion in 2006 and was 46th in the magazine yearly,”Top 100 Brands.” That made Gucci the second biggest selling Italian Brand in the World and has approximately 425 shops in the World and sells its products to other shops by franchises and department stores. Gucci is a desired luxury handbag by ladies because the name has stood the test of time with its large diverse range of handbags, bags and wallets. The various color ranges, different quality materials, web, unique styles and signature .Gucci logo plate are such an impressive combination that few can resist.
Problems:
In 1980’s Gucci began to experience difficulties with family disputes and mismanagement of the business, Group was near bankruptcy in 1992 with losses of more than $40 Millions .As a result of this the Gucci family sold all their shares to Invest Corp. (a Bahrain- based private equity firm.) Gucci was turned into a public company and listed in New York and Amsterdam Stock Exchange in October 1995.In addition to that there have been also the brand problems, that is the key to know whether a handbag is authentic Gucci or a fake starts with knowing the features specific to Gucci bags. Impostors try to duplicate these features as closely as possible, thus you need to have a discerning eye to tell the difference. The ethical issues associated with brand management were appalling. Brand infringement, for many years was the common problem. It occurred when a company created a brand name that closely resembled a popular or successful brand. The brand infringement issue became more complex when a brand was so well established that it may be considered a generic term such as Kleenex tissue or Xerox Copy.
How to overcome the issues:
Gucci needs an effective integrated marketing communication plan which emphasizes a strong and positive company or corporate image as part of the program. Gucci need an effective image regardless of the fact that it is a difficult task. It is important to know how all public view at the firm before seeking to build or enhance an image. Rejuvenating an image involves reminding customers of their previous conceptions of the company while at the same time expanding into a closely related area of concern. Once an image is strongly pressed into the minds of customers, it becomes difficult if not impossible to change. A corporate is the overall banner under which all other operations occur. The corporate logo accompanying the name is the symbol used to identify a company and its brands, helping to convey the overall corporate image. Brands are names given to goods or services or groups of complementary products. Effective brands give the firm the advantage, especially in mature markets containing fewer actual products or where service differences exist.
Thus, positioning is the relative psychological location of the good or service as compared to its competitors in the views of customers. Marketing Managers must select a positioning strategy that highlights the best features of the company’s products. Positioning is never fixed, because markets of Gucci evolve over time.
Soon Gucci was a widely popular store selling exclusive leather goods. Gucci products grabbed the attention of many powerful celebrities including Jackie Kennedy,Grace Kelly and Audrey Hepburn. Gucci went so far as to name a bag in its range the “Jackie O” after the former first lady Jackie Kennedy.These women represented elegance ,which enhanced the prestigious aura of Gucci.
Business week magazine says that Gucci made more than US$7Billion in 2006 and was 46th in the magazine yearly,”Top 100 Brands.” That made Gucci the second biggest selling Italian Brand in the World and has approximately 425 shops in the World and sells its products to other shops by franchises and department stores. Gucci is a desired luxury handbag by ladies because the name has stood the test of time with its large diverse range of handbags, bags and wallets. The various color ranges, different quality materials, web, unique styles and signature .Gucci logo plate are such an impressive combination that few can resist.
Problems:
In 1980’s Gucci began to experience difficulties with family disputes and mismanagement of the business, Group was near bankruptcy in 1992 with losses of more than $40 Millions .As a result of this the Gucci family sold all their shares to Invest Corp. (a Bahrain- based private equity firm.) Gucci was turned into a public company and listed in New York and Amsterdam Stock Exchange in October 1995.In addition to that there have been also the brand problems, that is the key to know whether a handbag is authentic Gucci or a fake starts with knowing the features specific to Gucci bags. Impostors try to duplicate these features as closely as possible, thus you need to have a discerning eye to tell the difference. The ethical issues associated with brand management were appalling. Brand infringement, for many years was the common problem. It occurred when a company created a brand name that closely resembled a popular or successful brand. The brand infringement issue became more complex when a brand was so well established that it may be considered a generic term such as Kleenex tissue or Xerox Copy.
How to overcome the issues:
Gucci needs an effective integrated marketing communication plan which emphasizes a strong and positive company or corporate image as part of the program. Gucci need an effective image regardless of the fact that it is a difficult task. It is important to know how all public view at the firm before seeking to build or enhance an image. Rejuvenating an image involves reminding customers of their previous conceptions of the company while at the same time expanding into a closely related area of concern. Once an image is strongly pressed into the minds of customers, it becomes difficult if not impossible to change. A corporate is the overall banner under which all other operations occur. The corporate logo accompanying the name is the symbol used to identify a company and its brands, helping to convey the overall corporate image. Brands are names given to goods or services or groups of complementary products. Effective brands give the firm the advantage, especially in mature markets containing fewer actual products or where service differences exist.
Thus, positioning is the relative psychological location of the good or service as compared to its competitors in the views of customers. Marketing Managers must select a positioning strategy that highlights the best features of the company’s products. Positioning is never fixed, because markets of Gucci evolve over time.
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