Comparison of Marketing Strategies: Gucci vs Hermes

Report
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Critically evaluate the marketing strategies of two brands..........................................................3
Compare the marketing strategies of Gucci and Hermes............................................................6
Which brand has gain strong competitive position and combat Covid-19 situation?.................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is defined as the process of making planning and executing the conception so
that it could satisfy the needs and requirements of customers so that goal is attained within a set
time frame (Mogaji and Roberts, 2016). In this, marketer would prepare an appropriate strategy
by taking several factors into consideration such as promotion, branding and so on which assist
firm in decision making which help in managing the operations smoothly. This report is based on
comparison of two luxurious brand with their similarities and includes current marketing
strategies which tends to combat coronavirus.
Main Body
Critically evaluate the marketing strategies of two brands
Marketing strategy involve the formulation of planning so that goal is attained in a
respective time period as it assists the firm in facilitating better decisions which provide a
reasonable growth and ensure sustainability for a long term (Li and et.al., 2016). In other words,
the manager of a firm would prepare an effective strategy so that it could maximise the share of
market and win the hearts of customers in a pre-determined time period. The current report
involves the evaluation of marketing strategy of two high end luxury brand that operates within
Asia such as Gucci and Hermes. Both the organisation offer men and women accessories which
are luxury product and with these feature both of them manages higher profitability. But as other
businesses, these two-luxury brands are also get affected with the impact of COVID 19 as stores
get shut due to lockdown and people do not prefer to visit stores to purchase product. Other than
this the economic condition of countries also gets affected which in turn changed the buying
behaviour of customers throughout the world (King and Coughlin, 2016). The needed both the
organisation to improve the marketing strategy that suits more as per the current situation and
help both the organisation to maintain its profit and sale in marketplace. Following are detail
about the marketing strategy followed by both the organisation,
Gucci
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Overview: Innovative, progressive and influential, Gucci has reinvented as a wholly
modern approach for fashion related items which are offered as per the fashion and trend of 21st
century. It is a luxury fashion brand which is headquartered in Italy, but after its high end trendy
items such as handbags, accessories, shoes, make up, fragrances etc. popularity take it to the
international level. Now this organisation is also performing well with Asia countries by
providing a better status with these high quality and trendy accessories and other items. Other
than this it also offer its services online which is a most effective step toward its growth at global
level.
Mission: The main mission over which Gucci operates is that it wants to become a leader
within luxury market throughout the world. In other words, it want to create a product
differentiation to always offer its customer with products that they not found at other place and it
become the first priority of each customer (Gucci Mission, Vision & Values. 2020.).
Vision: Its vision is to reinventing the wholly modern approach of fashion. Under the
supervision of creative director Alessandro Michele, Gucci has already redefined its product as
per 21st century and trying to reinforce its position as most desirable brand worldwide.
Marketing strategy : Gucci is a high end fashion brand which was established in year
1921 and it is a part of Kering group which is a parent company and also one of the leading
brand of apparel and accessories which maintain the portfolio of Luxury, sports and lifestyle
brand. Gucci maintains at a mix of demographic and psychographic segmentation strategy to
offer its product or services. Despite of brand’s exclusivity and unattainability for many of the
consumers that always remain popular as its fame are more attributed toward its appeal toward
rich public figures. Following are the marketing strategies adopted by Gucci,
 Its marketing of product is mainly done by the artists where majority of their products are
being worn and marketed by some of the famous artists. Other than this it also display its
products on the cover page of magazine by displaying it over some famous models. This
remains a point of attraction for the customers (How Gucci’s Digital Strategy Maintained
Its Global Presence. 2020).
 It also uses social media platform to spread information about eth product it launches in
market. The most commonly used social media pages are Facebook, Instagram, YouTube
etc. which support in capturing the attention of larger number of people. Due to this
social media market, Gucci get around $4.4 million on revenue last year in 2016.
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