Luxury Marketing Strategies

Luxury Marketing
Strategies

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Rationale behind the strategy.................................................................................................1
Mission Statement..................................................................................................................2
Marketing Objectives.............................................................................................................2
STP.........................................................................................................................................2
Target Market ........................................................................................................................3
Positioning strategy................................................................................................................4
Branding strategy....................................................................................................................4
Visual elements of branding...................................................................................................5
Recommended marketing mix strategy..................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Luxury Brand Marketing Strategies focus mainly on creating values that are of highest
level for the brand and also elevating various elements of a brand. Different brands opt for
various strategies in order to lure its customers and create an impact on their minds. The final
decision that customers make to purchase a product or service is mostly the result of what they
hear or read online on different websites and on social media.
Gucci is a luxury brand from Italy offering products in fashion and leather category. The
brand was founded by Guccio Gucci in the year 1921 and is headquartered in Tuscany, Italy
(Atwal and Williams, 2017). The brand is one of the oldest brands in the fashion industry
operating globally today.
This report states new objectives that the company should set and what strategies with
respect to conducting CSR activities and social media activities should the company opt for and
follow in order to achieve the same.
MAIN BODY
Rationale behind the strategy
The rationale behind Gucci opting for social media and CSR activities is that the
company can communicate and connect with people in different segment. The people may not be
only the ones who can afford Gucci's luxury products but others also. This will help in creating a
community for the brand but also create a brand image and helping the company's branding of
products worldwide .
The hike of digital technology and social media lately has brought sudden changes and
trends that are being used by fashion and luxury companies to constantly interact with their
followers and subscribers online. Different social media channels like Facebook, Snapchat and
Instagram are used exclusively by different brands for carrying out promotions and understand
customers' expectations. The brand is able to engage the millennial generation by carefully
understanding the customers and coming up with different campaigns to engage them.
One of the fundamental principles of Gucci is Corporate Social Responsibility which also
forms the foundation of its branding (Chandon and Laurent, 2016). Gucci has executed a series
of processes to merge together social, environmental and ethical rights into its business. The
brand along with its employees, customers, stakeholders, associations etc. promote a social
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responsibility policy which values the worth of ethics of business, respect for human rights,
protection of health of workers and their safety, stakeholders and suppliers etc.
Mission Statement
A mission statement explains the being of an organization, who are the main customers
of the company, the products it manufactures, services it delivers and what geographical regions
the company operates in.
Gucci aims to become the market leader in the luxury segment globally by putting in
efforts and and maintaining the same (Godey, 2016).
Marketing Objectives
An objective is a set basis that explains what a company or an individual desires or aims
to achieve. SMART objectives are a form of objectives that enable managers in an organization
to set goals that are specific, measurable, achievable, realistic and timely in nature. These
objectives not only help in the overall performance improvement but also enhancing the
productivity and helping in achieving the goals on time.
 To implement social media strategies every 6 months in order to promote organisation's
products and services effectively that in turn help in enhancing the business sale by 25%.
 To constantly upgrade the organization's CSR activities within 6 months to increase the
growth opportunities by 20%.
STP
STP stands for segmentation, targetting and positioning is a structure used in marketing
that provides a summary of the market segmentation process which groups the customers into
different segments according to various aspects, and targets the most beneficial segments and
finally positioning the brand and its products into the minds of the targetted people (Henningerr,
2017). Segmentation – Gucci uses a mix of strategies in order to define a segment of customers
for its products and therefore comes out with products that are way ahead of the trends in
the industry. The major customer segment of Gucci are primarily celebrities, premium
class people whose buying behaviour is very different from normal people. The brand
also divides segments based on the style sense of people.
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