Marketing Fundamentals: Gucci's Approach to Success

This report explores the marketing fundamentals employed by Gucci, the largest luxury product hub in Italy. It discusses the stages of marketing, the role of marketing, and the marketing mix. It also highlights Gucci's stakeholder engagement strategies for success.

MARKETING FUNDAMENTALS

Table of Contents
MARKETING FUNDAMENTALS................................................................................................1
INTRODUCTION...........................................................................................................................3
REQUIREMENTS..........................................................................................................................3
Stages of marketing...................................................................................................................3
Role of marketing......................................................................................................................5
Marketing mix............................................................................................................................6
STAKEHOLDER ENGAGEMENT...............................................................................................8
Types of stake holders...............................................................................................................8
Gucci stakeholders.....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
One of the most prominent and the vast environments that is entirely superior to the human
existence is the fantastic marketing world. Marketing is defined and derived as the sole purpose
of the human existence. Every business or organisation or a firm when implementing products or
working upon a particular goal, their major target is to be successful and achieve the mark of
being the best among the others that are operating upon the same idea (Baines and et.al). To
achieve this mark, the organisation will have to follow the basics that are required to keep up the
mark. One such is respecting and initiating the marketing in their run. The entire report deals
with these fundamentals of marketing with respect to the company Gucci which is the largest
luxury product hub in Italy. The marketing fundamentals employed by this company are depicted
in the report.
REQUIREMENTS
Stages of marketing
Development stage: Development cannot happen overnight. Even if it happens there is a very
great potential attached to it that made it strive to become one of the most developed
organization. Every company aim at being the most developed because of the satisfaction to
achieve the profits and the later circumstances of being better will be achieved. Development
stage is the most predominant stage of growth. It is not possible unless and until there are efforts
greater than the failures. Enduring every obstruction in the path of being successful leads to
development. Gucci started as one of the boutique comprising of the products that are rich in
quality. Using this as the major application, Gucci continued to use the service for customer line
improvement (Deepak and Jeyakumar, 2019).
Start-up stage: Every business starts by initialising the methods that are required for bring the
best. and every idea that was once developed will probably get into the mark. After all the
possible plans are brought together to make the execution, then the business will come into
existence. the initial stage of the business is regarded as the start-up stage. In this the
organisation will take the feedback of the customers and will plan and implement the ideas and
suggestions for reaching their needs. Once they are able to meet the customer demands, then
probably they have achieved the mark of being successful. Gucci evolved as a petite conception
that proved out to be one of the top retailers in Italy (McKay and et.al, 2018). The company

initially started as a small store providing the retailers service and evolved as one of the best
because of the continuous change and their hustle to satisfy customer demands.
Growth stage: This stage is probably after surviving the first two stages where the entire
development is carried and then the start-up is initiated and finally the company is in the growth
pace. The growth pace is nothing but the time of concentrating upon the revenues and sales. To
be one of the most auspicious retailers requires a huge amount of demand and the profits that are
attained by the sales is what makes the company a better choice. Gucci company being one of the
of the top retailers in Italy, struggles the hell out of the starting two stages (DZOGBENUKU and
DE-HEER, 2016). This probably fetched the company with nothing but the hope of being one of
the competitors in the marketing world. The regular customer approach was handled in the way it
has to be and now this company achieved the mark of being the best in supplying luxury goods
and other products both online and offline. Their choices are smart and that fetched the revenue
all at once after enduring so much of struggle in all the above stages.
Expansion stage: Once the company attained the name, fame and the required amount of the
revenues generated, then the main aspect for the retailers is the expansion of the company in and
out of the country. When the revenue that is generated out of the steps that are adopted in one
place then the final target of the company is to start its commitment in the next possible place
where they can be available to the maximum number of customers (Cortez and Johnston, 2019).
Gucci company when taken into account from the initial stage is now available to more than 75%
of the people around. It is now serving the use of products both offline and online and is making
revenue that is twice the initial investment.
Maturity stage: maturity stage is when the entire company is on the right track and it has clearly
achieved its mark of being the best competitor. At this stage the only thing that is to be focused is
to whether the company would still have to continue with same idea or can wind up and bring
about the new one into account since it has already achieved the mark of being best and now
customers will probably pat attention to whatever it has innovated (Laczniak and Murphy, 2019).
Gucci achieved the stage of being the best of providing all the materials that are required by the
fashion freaks. This being an idea that has attained a stage and now the company will either
innovate and work upon the new ideas or will continue the same pace of being the top most.

Role of marketing
Marketing as discussed earlier is very crucial and that determines the position of every company
in the competition. Marketing is nothing but the medium through which people will get to know
the exact theme of the company and the company will attain the fame and demands will be
executed because of this. There are many roles that marketing play in a company. every role is
worthy to be discussed since it is more than anything for an organisation (Tokarev, 2019).
Essential for planning: Planning is the root of every flourishing idea. Every approach starts with
an idea and then followed by execution. This is the first step of every organisation. any firm or
industry that is planning to excel in the marketing world will first contain the essentials that are
required for it to be the competitor. The company Gucci planning is as follows:
Competitive
The company believes that being competitive not just means to strive for the first place in the
market. It will be attained once every penny that is spent by the customer is taken into
consideration. The company stress upon its dealers to come up with the brands that are of good
quality and people choose them over and over again.
Serve our customers better
Customer opinions are given more importance and they strive to work upon the feedback that is
provided by the customers (Morozevich and Halamazava, 2017). This includes improving of the
offers and the hard work the staff puts in to satisfy them.
Find local solutions
The company focus is to deliver solutions that benefit the community. This involves everything
related to stocking branded product to that of any extent. The firm believes and notes every
essential of the local customer to make it a nationally available and more approachable retailer.
Develop popular and useful services
The company’s aim is to be the one-stop-shop with all the requirements of the community. There
is a continual alteration and refreshing of the goods that will not make it a routine point to opt
for. The services that are offered are very much compatible and are used by all.
Simplify and speed up
The firm tries to simplify and speed up the services by working upon a culture based work and
the teamwork is portrayed and is important credential in this firm. This made this one of the
efficient businesses.

Understanding customers: Customers are the important target for the retailers. Every idea that is
initiated will only receiving the stipulated demand once it is more into the customers (Išoraitė,
2016). This is actually a chain that will flourish with the results. The chain of customers is
nothing but the customer source and opinion about the service. The hustle that every company
puts in improving and improvising is only to satisfy the customer demands which brings about
the revenue. The Gucci company had this in their priority that made them maintain a customer
demand strategy that is worth describing the urge of every customer to purchase goods and get
scalable solutions from the company. so now what makes it a better choice by the customers? It
is the importance that is given to them to speak about the experience of getting stuff from the
company. the company tries upon bringing and working upon the needs of the customers and that
is what makes it a trendy choice all over. Providing all the essentials starting from bags, shoes
and clothes that are required, this became one of the main trending retailers. The company offers
high quality product with well equipped staff that makes the service worthy (Abril and
Rodriguez-Cánovas, 2016). For this purpose, Gucci staff is well trained and are guided upon the
principles to maintain interaction with the customers. After a successful training, the staff is put
into every department of the stores and the customers approaching the store will be totally under
the supervision of the staff and they will get the details of everything that is available over there.
Marketing mix
The marketing mix consists of the strategies that involve both 4Ps and 7Ps model. The Morrison
company marketing mix consists of the 4Ps model. It is as follows.
Product: Gucci sell it's products under different categories. They provide lots of options
considering all the needs of the consumers. They provide high quality and unique products in
each and every segment, so people can easily pay higher price. Product is the one of the most
important part of marketing mix strategy of Gucci. As it has a big brand value, they maintain the
quality of the product and purchase the products from ethical and trusted suppliers, and these raw
materials processed in good environment to maintain the consistent quality. All the products are
sold by Gucci is ready to use and come with the user manual for customer to understand how to
use the product. They have effective customer service department available 24/7 for customers
for all queries and complain. And all the executives are trained to provide proper details about

the product and services. Gucci has good brand value for its product in the market. And good
brand portfolio help Company to reach the targeted people easily and also help to get financial
stability in the market. Gucci also ensures that they provide goods in all sizes considering the
different types of customers. It provides practical advantages to customer and deliver the same
with time, such as they boost the confidence, security, fulfillment of the physiological
requirements.
Price: Gucci’s marketing strategy mainly focused on the hybrid fundamentals to provide
maximum value to its customers. To differentiate brand or product image in the market they
provide exceptional price for some brands. They use higher prices for some of the brands to
attract the special customer or provide ranges of product to higher income people. Exceptional
pricing enables to provide the higher quality in that range for specific group of people. These
products consider as luxury product or ranges which adds high brand equity and higher revenue
in Gucci’s product. Gucci currently focused on physiological pricing techniques for its different
product groups and product ranges. With this technique they have developed more value to its
product and getting higher sales and higher profits. Gucci targeted different regional markets
through geographical price strategy. It has reduced company’s shipping and custom expenses. It
also maintains the constant income growth by offering differ prices for different market basis on
local currency. Gucci is known for its bundle pricing strategy. They uses this strategy for sales in
particular segment. It increases the trial rate, and help to control the prices by reducing the
marketing and distribution expenditures. It's also gaining the higher return from the new
customers, and these bundles pricing strategy has added value to the umbrella brand name to the
Gucci. As it has great brand portfolio and so many products they also focuses on cheap prices as
each and every customer are like to negotiate with prices for the products and attracted to the
available substitute of the product.
Place: Gucci serve all over Italy and is of physically present in more than 660 stores. Of these,
150 are the convenient stores which will serve population with employees around 117,000.
Gucci is said to be the largest good manufacturer which operates and manages over the new
items regularly. The point place, in a marketing mix serves as the crucial point because, it relates
to the convenience of approach and can easily visited. The deliveries are managed in a way they
are to be and the company contains 1606 trailers for efficient delivery.

Promotion: promotion is the heart of marketing. There are many ways in which the idea of the
company or a business are promoted. The types include that of open sources and human sources.
The open sources are through advertisements, brochures, posters through television, social media
and other means. The human sources are that of the feed backs ad the reviews. The testimonials
from the people will enlighten the marketing to another level. This is because of the physical
approach towards to the usage and that which is believed by maximum people. the company
Gucci work through the suppliers through Morrison farming (Smigielska and Stefanska, 2017).
This makes the company remain sustainable and competitive. The company triumph over
providing cheap and best products to its customers.
STAKEHOLDER ENGAGEMENT
The other predominant aspect is that related with the stake holder management. The company
must be able to with stand the competition and the expectations of the stakeholders. There are
many approaches of being one of the most prominent company to withstand the stakeholders. An
effective organisation is the one who converts the needs of stakeholders into company’s goals
and objectives. They allot teams and will divide the categories of meeting the demands of the
stake holders who will uplift the purpose of the organisation. Nothing is possible if the demands
of the stakeholders are not met with enough concern and that is where most of the company
backstab their goas and ideologies and cannot achieve their mark of being the best. Gucci being
one of the prominent retailers of Italy and around maintains that standard by meeting the
expectations of its stakeholders.
Types of stake holders
The different types of stake holders are as follows:
Suppliers: suppliers are the people who supply the products that are essential for the business and
rely upon making profits by supplying goods to the firm.
Owners: owners are the ones that are responsible for the entire business and a little negotiation
sin the company will entirely effect them.
Investors: investors are those that put the initial money in the business and those that are
involved in the share management. Any profit will be distributed among them according to their
percentage.
Communities: those that put their money in order to buy a product will come under this category.

Gucci stakeholders
A stake holder is someone that is impacted by the organisation or a business. this impact can be
internally or externally but this is something that brings about a great amount of change in the
other people either working there or in contact with it. For any company the impact is very
common aspect. There are many points of consideration like that of finances, products and
shares. The sellers will get impacted by the product and through the consumers (Perreault, 2018).
The owners will get effected when they do not generate the required profit and then comes the
customers who effect is because of the right product that is not in sale of the lot. Following are
some of the aspects through which the stake holder engagement is dine in the company.
Social responsibility: keeping this major point in mind and to highlight that the company is more
towards society and is responsible for making the best, the company involved in cutting the
artificial carry bags that are usually given to the employee on their purchase up to 60%. This
makes it more eco friendly and will stand as reference to the emerging companies. Society will
impact the trade and every initiate that is taken by the company will help the company fetch and
enhance their marketing life. For this purpose the company opted for a bag change purpose.
Employees: Gucci is very much towards their employees and will always try to meet their
expectations. They focus upon recruiting the ones that are totally aware of the work they will
have to perform. The product processing is provided with the staff that is well trained. This is an
added advantage to the company because they can come up with the outputs that are really
essential to the firm. Gucci is known for its fresh food unit and this is a crucial and tedious task
to accomplish. This can only be performed by the right staff and those that are well trained. The
company make sure there is nobody that is being impacted by the decisions made I the
implementations.
Advertising standards: advertising is one of the essential requirements of any business or a
company. It serves as a medium through which people will get to know the essence of the
company and its ideas through which it is dealing with. The company Gucci employs standards
like the brochures and the marketing techniques that are easily a medium of approach towards
the population. There is enough approach towards making the products accessible to the people
around.

Consumer protection: consumers are the main target of every company. whatever be the product,
that will get enough demand once it has attained the name of meeting needs of the company.
Through the Gucci company people will get the fresh food stuff which is like by everybody
everywhere. The effect is most when the consumers are not being able to purchase things that are
in stock. There will also be a loss in the company if at all the stuff is not properly used.
Therefore, the company aims at maintaining the relations with the consumers to ensure that there
is a good trading and the company’s pace will try to continue.
Employment condition: the employment conditions in the company are very strict and are
followed by different people. the right employees are recruited and there will not be any
negotiation in dealing with the customers. The fresh goods initiative that is adopted by the
company is nowhere found and the traders are very much involved in making a big success. The
recruitment part is done by examining their standards that are responsible to tackle the
customers. A good number of purchases will bring great demand to the company. The
consistency maintained by the retailer by its supply made it one of the renowned retailers.
CONCLUSION
The entire report deals with the marketing fundamentals and brings about the greatness that is
involved in the execution of these essentials. marketing is one of the phenomenal evolution that
will make a difference and impact many companies. The report brings forth the essence of
marketing fundamentals of the company Gucci marketing fundamentals strategy and their
approach in various aspects. The company is one of the best retailers of Italy and is said to
occupy 70% of the region in the trade. It consists of all the products which are a must in the
household point of view. The company maintains a 4Ps marketing mix to achieve the marketing
goals and works through the modular approach. The second half of the report deals with the
stake holders of the company. The stakeholders section brings about those that are regular needs.

REFERENCES
Books and journals
Baines and et.al, 2017. Fundamentals of marketing. Oxford University Press.
Deepak and Jeyakumar, 2019. Marketing management. Educreation Publishing.
McKay and et.al, 2018. Fundamentals of Marketing. Goodfellow Publishers Limited.
DZOGBENUKU and DE-HEER, 2016. Marketing Fundamentals. 29th August, 2016.
Cortez and Johnston, 2019. Marketing role in B2B settings: evidence from advanced, emerging
and developing markets. Journal of Business & Industrial Marketing.
Laczniak and Murphy, 2019. The role of normative marketing ethics. Journal of Business
Research. 95. pp.401-407.
Tokarev, 2019. Marketing Of Innovative Startup Stages. Annals of marketing-mba, 3.
Morozevich and Halamazava, 2017. Marketing Research: Study program or higher education
institution Major: 1-26 81 01 Business Administration Master's program:«Business
Administration».
Išoraitė, 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Abril and Rodriguez-Cánovas, 2016. Marketing mix effects on private labels brand equity.
European Journal of Management and Business Economics. 25(3). pp.168-175.
Smigielska and Stefanska, 2017. Innovative positioning as a marketing tool of retailers on the
food market. Entrepreneurial Business and Economics Review. 5(1). p.77.
Perreault, 2018. Essentials of marketing. New York: Mc Graw Hill.
Išoraitė, 2016. Marketing mix theoretical aspects. International journal of research
granthaalayah. 4(6). pp.25-37.
Pogorelova and et.al, 2016. Marketing Mix for E-commerce. International journal of
environmental & science education. 11(14). pp.6744-6759.
Thabit and Raewf, 2018. The evaluation of marketing mix elements: A case study. International
Journal of Social Sciences & Educational Studies. 4(4).
Pomering, 2017. Marketing for sustainability: Extending the conceptualisation of the marketing
mix to drive value for individuals and society at large. Australasian Marketing Journal
(AMJ). 25(2). pp.157-165.
1

Sama and et.al, 2017. INVESTIGATING THE RELATIONSHIP BETWEEN MARKETING
MIX ELEMENTS (7PS) AND IRANIAN EFL LEARNERS’CHOICE OF LANGUGAE
INSTITUTIONS. European Journal of Foreign Language Teaching.
Online
Marketing fundamentals: [ONLINE] Available through: https://www.thebalancesmb.com/step-
by-step-guide-to-the-fundamentals-of-marketing-2295834
Stages of marketing: [ONLINE] Available through:
https://www.entrepreneur.com/article/283058#:~:text=Marketing%20Through%20The
%20Different%20Stages%20Of%20The%20Business,Stage.%204%20Expansion%2FRapid
%20Growth%20Stage.%205%20Maturity%20Stage.
Role of marketing:[ONLINE] Available through:
https://www.yourarticlelibrary.com/marketing/role-of-marketing-top-10-important-role-of-
marketing-in-making-a-product-successful/32289
Marketing mix: [ONLINE] Available through:
https://www.investopedia.com/terms/m/marketing-mix.asp
2

3