Marketing Strategy Analysis: Gucci, Louis Vuitton & Recommendations for SPAR International Success

This report provides an analysis of marketing processes and planning, with a focus on the application of the marketing mix in luxury product lines. A comparison is made between Gucci and Louis Vuitton, highlighting their marketing strategies and contributions to organizational success. Recommendations are provided for suitable marketing strategies for SPAR International, along with a marketing plan and media plan. The report includes a situational analysis, SWOT analysis, Porter's Five Forces analysis, consumer trends, market segmentation, key performance indicators, and marketing mix recommendations.

ASSIGNMENT TITLE: MARKETING PROCESSES AND PLANNING
STUDENT NAME/ID:
DATE:

Contents
Introduction..........................................................................................................................................3
Comparison of ways in which organisations use the marketing mix to achieve overall business
objectives
...............................................................................................................................................................
3
Marketing strategies adopted by Gucci and Louis Vuitton and their contribution to organisational
success.
...............................................................................................................................................................
6
Recommendations on suitable marketing strategies for SPAR International...........................................7
Marketing plan for SPAR International.................................................................................................... 8
Mission statement............................................................................................................................. 8
Objectives.........................................................................................................................................8
Situational analysis...............................................................................................................................9
PESTEL analysis.................................................................................................................................. 9
SWOT analysis................................................................................................................................10
Porter's Five Forces analysis.............................................................................................................11
Consumer trends.............................................................................................................................11
Market Segmentation....................................................................................................................12
Key Performance Indicators (KPI)....................................................................................................12
Marketing mix recommendations.....................................................................................................12
Control measures to ensure the achievement of SPAR International's business objectives.................14
Customer Lifetime Value (CLV)........................................................................................................14
Media plan..........................................................................................................................................15
Conclusion.........................................................................................................................................17
References.........................................................................................................................................18

Introduction
Marketing plays a vital role in modern business organisations as it involves the
analysis and understanding the marketplace, including business profitability,
customer demands, market competition, quality evaluation and marketing strategy.
Modern business organisations are showing more interest in implementing
innovative approaches that aim towards marketing strategies after recognising the
importance of customer relationships in business.
This report aims at analysing the application of the 7P's elements of the marketing
mix in different luxury product lines; a case study of Gucci and Louis Vuitton,
evaluating the tactical approaches and the marketing strategies adopted by each of
them. The report will provide recommendations on what SPAR International can
learn as it makes strategic marketing plans for its new product line. The report will
also include the marketing plan and a media plan that will support the marketing
campaign for SPAR International.
Comparison of ways in which organisations use the
marketing mix to achieve overall business objectives
Modern business organisations utilise the different elements of the marketing mix to
analyse the market situation, which assists in developing a marketing plan (Jobber
and Ellis-Chadwick, 2019). The marketing mix is considered a set of marketing tools
that intermingle to produce a marketing response in the market. It assists
organisations to achieve their goals and objectives. The basic application of the
marketing mix entails the 4 P's of marketing: product, price, place, and promotion
(Dzwigol, 2020). The basic approach was later observed to be inefficient as more

elements of the marketing mix are linked with the product to make a marketing plan,
resulting in the 7P's of marketing which includes; product, place, price, promotion,
people, physical evidence and process. Gucci and Louis Vuitton are both luxury
product lines. However, their implementation and application of the 7P's marketing
mix have both similarities and differences.
Product: Product refers to the goods and services provided by the organisation to a
particular target market. Products can be intangible or tangible and categorised into
three classes; core products, actual products and augmented products. Gucci and
Louis Vuitton share the same product portfolio, including fashion wear for men and
women, which are fashionable, elegant and classy. However, Gucci has also
diversified into making home products such as beddings and wallpapers (Le, 2019).
Place: Place in marketing mix entails all activities involved in making the product
available to the customers, including the intermediaries, distribution channels and
the location where buyers can find the products (Jobber and Ellis-Chadwick, 2019).
Both Gucci and Louis Vuitton use limited channels of exclusive distribution. Both
companies are of preconceived mindsets that enable them to use their outlets to
distribute their products. This marketing strategy assists in reducing intermediary
costs associated with long distribution channels (Xu et al., 2021). Both companies
have numerous outlets globally, located in high profile locations that are
distinguished and exclusive, which assist in attracting customers that belong to the
elite group.
Price: Price refers to the amount of currency a buyer gives the seller to purchase
the product. The price can be calculated by getting the sum of profit margin with the
cost of the product and intermediaries involved (Roth et al., 2018). The stylish
product

designs of both Gucci and Louis Vuitton allow the companies to maintain a premium
pricing policy. The brand names are associated with elite status and prestige.
However, as Gucci has tried implementing a reasonable pricing policy for online
purchases (Le, 2019), Louis Vuitton's entire distribution network sticks by its policy of
integrity pricing strategy, which means that the company does not believe in price
reduction and discounts (Xu et al., 2021)
Promotion: Promotion in the marketing mix refers to all activities associated with
product advertising. Promotion helps organisations create awareness about their
products in the market (Yankah et al., 2018). Gucci utilises innovative marketing
strategies to advertise its products, such as experimental marketing and, at times,
the controversial strategy involving scandalous advertisements that gain media
coverage worldwide. The brand also uses the internet and television advertisements
to promote its products (Le, 2019).
On the other hand, Louis Vuitton uses celebrity endorsements as a promotional
strategy, where famous musicians and actors, such as Jennifer Lopez, have
featured as ambassadors in high profile advertising campaigns. Louis Vuitton also
sponsors mega sporting events such as motorsports and golf. The brand aims to
make a direct link with the elite society associated with such events. However, both
Gucci and Louis Vuitton adopt the policy of high profile advertising through fashion
magazines, especially those associated with celebrities and fashion icons, helping
the brands develop an emotional connection with their target customers.
People: this element of the marketing mix refers to all the human factors associated
in the entire manufacturing process to the sale of the products, both directly and
indirectly. It is considered the most vital aspect of the marketing mix as all the

processes depend on relevant personnel's assistance (Yankah et al., 2018). Both
Gucci and Louis Vuitton have invested heavily in employee training and
development to ensure that their brands deliver top-quality products and the best
services to their customers, improving customer loyalty and developing a solid brand
image.
Process: the process involves all practices and activities associated with making the
product available to the consumers. It mainly focuses on the flow of these practices
and activities to attain the best results (Jobber and Ellis-Chadwick, 2019). Louis
Vuitton specialises in leather goods that are handcrafted for uniqueness and are
made out of a hundred per cent genuine leather (Xu et al., 2021), while Gucci uses
technology to make products with exquisite proficiency.
Physical evidence: Physical evidence in the marketing mix refers to the proof of
the existence and presence of the product in the market. These include associated
materials such as signs, logos and packaging, which makes the consumers trust
(Roth et al., 2018). The physical evidence of both Gucci and Louis Vuitton is the
logo, and the pleasant ambience of their stores, which gives their customers a
premium experience, crucial for maintaining brand image.
Marketing strategies adopted by Gucci and Louis
Vuitton and their contribution to organisational success.
Marketing strategies are the tactical approaches that an organisation needs to
execute effective marking procedures and plans (Dzwigol, 2020). Both Gucci and
Louis Vuitton use limited channels of exclusive distribution, which helps the
companies cut the costs of intermediaries while ensuring the products are available
to the target customers.

Gucci and Louis Vuitton maintain the premium pricing policy, which allows the brands
to embrace the elite groups that fancy luxurious products that make them stand out
from the common population.
High profile advertising has assisted the brands in reaching their target audiences
and increasing product awareness. Celebrity endorsements are also an effective
means of advertising luxurious products as celebrities have a large fan base.
Investment in employee training and development programs has ensured that both
brands have professional and competent personnel who ensure customer
satisfaction regarding product quality and services (Sarkum et al., 2017).
Recommendations on suitable marketing strategies
for SPAR International
As SPAR International plans out the marketing strategies before introducing the new
SPAR mozzarella pizza into the UK market, the organisation should consider
several aspects such as pricing strategies and distribution channels that will assist
in making the new product a successful luxurious line of food products.
SPAR International should ensure that the SPAR mozzarella pizza is highly
exclusive and is sold with the same preconceived mindset of providing exclusive
accessibility. The organisation should distribute the SPAR mozzarella pizza to its
own stores in prime and high profile locations.
The organisation should adopt the premium pricing policy and integrity pricing
strategy on the SPAR mozzarella pizza because of its uniqueness and award-
winning quality. This will help improve the perceived value, which will attract the elite
group of consumers.

SPAR International can adopt effective promotional strategies such as celebrity
endorsements to increase the SPAR mozzarella pizza awareness to the high profile
target market. High profile advertisements such as food magazines can assist the
organisation in increasing the popularity of the product.
Marketing plan for SPAR International
A marketing plan assists organisations in focussing and directing organisational
strategies to meet their goals. It ensures the identification of resources and building a
durable relationship with stakeholders (Hay, 2019).
Mission statement
To ensure that SPAR remains the world-leading voluntary food retail chain and that
we continue to grow our brand, our presence and partners by working together to
enhance the competitiveness, productivity and profitability of our retail and wholesale
partners worldwide (SPAR, 2021).
Objectives
 Increase retail sales by 20 % in the next two years - SPARS International
aims to increase sales in two ways; opening new stores and revenue growth.
New stores in different locations will improve the infrastructure and more
effective positions for the organisation. The measurability of retail sales will
help set short-term goals for SPAR International (SPAR, 2021).
 Develop a returning customer base and improve satisfaction levels in the next
fiscal year - Attaining improved levels of customer satisfaction through the
support of nutritional balance and quality of the products will ensure that the
consumers receive satisfactory services (Krings et al., 2021)

. A returning customer base promotes the organisation through recurring
purchases, assisting in the growth of loyal customers.
 Creating programs to include discounts, personalised offers, and other
advantages to reach a stable customer base by 2025 – SPAR International
should increase customer loyalty as it will help maintain the organisation's
competitive edge in the marketplace. This objective has a wider time frame
since acquiring loyal customers involves substantial efforts from the
organisation.
Situational analysis
PESTEL analysis
Political factors Economic factors
• Favourable labour laws
and regulations
• Decent political environment
• Minimal intervention
into working from the
sphere
• Stable economic growth of UK
• High-interest rates and
perspectives concerning
future development
Social factors Legal factors
• Improved awareness of
healthy products and
lifestyle
• Increased levels of attention
to fresh products and popular
brands
• Increased levels of consumer
buying capacity
• A positive legal
environment suitable for
brand development
• No limit on products offered
by SPAR International
Environmental factors Technological factors

• Temperature fluctuations
precondition a need for
advanced storing
facilities
• Complex climatic conditions
• Advancements in
technological development
• A tendency towards using
automation and innovation
in various sectors
SWOT analysis
Strengths Weaknesses
• Developed infrastructure
• A popular brand that
attracts clients
• Focus on healthy and
fresh products
• New locations for expansion
• Weak promotion strategies
• A low number of stores
across the UK.
• Minimum experience in various
market locations
Opportunities Threats
• Entry into the lucrative
UK market
• Increased adoption of
healthy products
• Presence of other popular
supermarket chains in the
UK
• Reduced customer attention to
the high priced healthy
products
Porter's Five Forces analysis
Competition New
entrants
Suppliers Substitutes Buyers
There is a
high level of
There is a
low
The high
number of
Low
pressure of
There is the
high

competition
in the UK
market with
dominant
supermarket
chains such
as Tesco
probability of
new entrants
because of
the scale of
SPAR
operations
foreign and
local
suppliers put
minimal
pressure on
SPAR
International
substitute
products due
to the limited
number of
retailers
offering
healthy food
products
bargaining
power of
buyers living
in the UK
Consumer trends
The adoption of healthy lifestyles and fresh food products characterises the
current consumer trends in the United Kingdom. The middle-aged and an older
population increasingly purchase healthy food products that promote health
improvement (Hay, 2019). There is a focus on highly nutritious fresh food
products in efforts to monitor body weight. The buyers in the UK have a high
bargaining power since there are multiple options for purchasing the type of food
products offered by SPAR International.
Market Segmentation
SPAR International offers a new segment that assists the organisation in
attracting new customers and competing in the UK market. The introduction of
diverse food categories such as vegan, diabetic, gluten-free, and particular
Lacto products helps satisfy the diverse customer needs and minimise the threat
of new entry.
The organisation occupies a niche of quality health products that rival
organisations in the UK market are yet to be fully exploited. The organisation

focuses on developing new stores, which assists in strategic geographical
locations to increase customer convenience (SPAR, 2021).
Key Performance Indicators (KPI)
KPIs are values that indicate the effectiveness of an organisation's activities
towards attaining its set goals (Sarkum et al., 2017). An organisation can
determine its productivity and identify problems by choosing and measuring its
KPIs. The Key Performance Indicators are derived from realistic set goals and
have a particular purpose. For instance, SPAR International's objectives show
that profit, revenue and expenses are the most significant KPIs. However, there
are other KPIs such as customer retention, client satisfaction and client
acquisition cost. SPAR can monitor the number of repeat site visits to increase
the levels of customer loyalty.
Marketing mix recommendations
Product: SPAR International should maintain its distinctive feature of providing
its consumers with a wide range of high-quality fresh food products. An increase
in the product's popularity will assist the organisation in attracting new
customers, which is vital in improving the brand's name.
Price: the organisation should preserve its current pricing strategies to ensure
that the customers purchase products at fair and competitive prices. Keeping
these strategies will assist the organisation in maintaining a stable and loyal
customer base.
Promotion: SPAR International should implement operational advertising
campaigns through local media and social media platforms such as Facebook

and Twitter. Special offers and discounts should be created to assist in
maintaining customer interest levels.
Place: The organisation should consider giving special attention to the UK
location due to a higher concentration of the population. Developing multiple
stores in different regions of the country will assist in raising sales for the
organisation.
Process: SPAR International should maintain its processes by delivering fresh
products while offering its clients a satisfactory and better buying experience,
vital for customer retention and loyalty.
People: the organisation should ensure that the management, employees and
the stakeholders work as one functional unit to improve the efficiency of the
entire workforce towards achieving organisational goals.
Physical evidence: SPAR International should continue developing convenient
stores across the country while developing more of its branded products.
Market evaluation and budget
Organisations can be able to implement set plans and monitor the main stages
through cost centres. The cost of the various suggested marketing mix strategies
can be considered low when it comes to the budget. The price and product
domains are part of the organisation's functioning and do not require additional
spending.
However, the marketing recommendations indicate that the organisation will
require additional resources. SPAR can allocate about 15% of its overall budget
to advertising, from which 40% should be utilised in advertising SPAR

International and its products online. From the general budget of 4 billion euros,
600 million euros should be allocated towards promotion and 240 million
towards multi-media advertising. The recommendations from the marketing mix
indicate that the organisation will spend on other areas such as the development
of new stores, products and employees. SPAR International can add another
500 million euros to the budget.
Control measures to ensure the achievement of SPAR
International's business objectives
Customer Lifetime Value (CLV)
Customer Lifetime Value refers to a customer's worth to a business over the
entire relationship period (Krings et al., 2021). It is an essential metric since it is
more costly to attract a new customer than to maintain an existing one. To
achieve growth, SPAR International should increase the value of its current
customers.
Media plan
Media planning is how organisations determine what audience and when
advertising or a branding message will be delivered (Sarkum et al., 2017). It is
accomplished by analysing how a message is intended to support an advertising
strategy. After that, tactics are developed to share the news with the right people
in the right places.
The marketing campaign to increase brand awareness in the UK market will be
through various multi-media channels. The offline media, such as the
newspapers, will target the older generation. In contrast, the social media

platforms such as Facebook will aim at informing the younger population about
the products and services offered at SPAR International. One hundred thousand
euros will be allocated towards offline media channels, 300,000 euros towards
local TV advertisements and 200,000 euros on social media marketing and
endorsements. This media plan will ensure that SPAR International gets
recognised by the entire UK population, which will attract customers of all ages,
locations and financial statuses.

Campaig
n type
Goals Target
audience
Medium Content Runnin
g time
Projecte
d cost
Actua
l cost
Multi- Increasin The UK Social SPAR Nov 25th 600,000
media g brand consumer media, products –Dec euros
campaign awarenes s Facebook, , 31st
s Twitter. locations
Food , offers
magazines and
Newspaper discount
s s
Local TV

Conclusion
Marketing assists organisations to acquire a competitive advantage in the
modern marketplace. This report compares how two luxury brands, Gucci and
Louis Vuitton, utilise the elements of the extended marketing mix to achieve
business objectives. After which, the comparison results are used to provide
recommendations to SPAR International as it makes marketing strategies for a
luxury food product line, SPAR mozzarella pizza.
The report also gives a specific and comprehensive marketing plan that meets
SPAR's marketing objectives providing a PESTEL and SWOT analysis of the
organisation, and finally, a comprehensive media plan which supports the
marketing plans of SPAR International.

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