Introduction to Marketing: Gucci's SWOT and McKinsey Analysis Report

This report provides a comprehensive marketing analysis of the Gucci brand, focusing on its internal capabilities and strategic positioning within the fashion industry. The report begins with an introduction to marketing concepts and highlights Gucci's reputation as a luxury brand. The main body of the report delves into the application of SWOT and McKinsey models to evaluate Gucci's strengths, weaknesses, and strategic choices. The SWOT analysis identifies Gucci's brand identity and distribution network as strengths, while its advertising controversies are noted as a weakness. The McKinsey model is used to examine Gucci's strategy, structure, systems, shared values, style, staff, and skills. The report concludes with recommendations for improving Gucci's performance, emphasizing the importance of adapting to market trends and making strategic decisions. The report also includes a list of relevant references from books and journals.

Introduction to
Marketing

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION AND RECOMMENDATION ..............................................................................3
REFERNCES ..................................................................................................................................4
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INTRODUCTION
Marketing can be outlined as a activity of socialising or communication the worth of
product or service to customers with an objective to increase competitive advantage in an
advanced and inventive style. However, it is considered as the captious role of concern towards
attracting wide range of population in order to enlarge market share or size in a better manner
(Barney, 2014). For this report, Gucci company is considered which is one of the reputed Italian
luxury brand of fashion and leather goods and it is introduced in the year of 1921. This study
comprises evaluating internal capability of an organisation with the application of SW and
McKinsey analysis. Finally provide relevant suggestion for improving company's overall
performance is also mentioned here.
MAIN BODY
Marketing fundamentally requisite a procedure to evolve and employ idea in order to
determine demand and fulfil the end customers in an effective or efficient way. Along with this,
in order to survive within this competitive world for longer period of time every organisation
takes an initiatory to analyze current or emerging trend of marketplace for attaining higher level
of productivity as well as profit margin (Njeru and Kariuki, 2019). Moreover, fashion industry of
UK is one of the booming sector compare to other which is continuously growing and becoming
more competitive for all existing players. Moreover, today's world is mostly prefers technologies
or advancement as it give each customer more comfortable and satisfaction. Hence, as per the
recent report, it has been viewed that online is a next frontier for luxury brands to acquire first
position within a business in an impressive or productive way. In regard of Gucci, it undergoes
with an issue of recent trends or demand i.e. innovation, marketing strategies which directly
impact over its profit margin as well as potentiality in attaining high level of volume of sales
(ER, Hanggara and Astuti, 2018). Moreover, this increasing competition influence Gucci's
decision making process as well as its internal business environment. However, there are several
models or concepts which enable an organisation to identify its internal capability in order to
improve overall performance of company. In context of Gucci, it implies SWOT analysis and
McKinsey model which is described below:
Strength
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` It has large number of outlets as it operates across the sphere with best prime of products
or service as well as it is supported by strong distribution network which help them to reach all
potential customers in an innovative manner. Moreover, it has strong brand identity, as they
easily recognisable tom public with their iconic prints and products (Wedel and Kannan, 2016).
Weakness
One of the major drawback of Gucci is that they uses sexual innuendos and present
female in a very bad manner while advertising their product. Due to which, it repeatedly faces
criticism from public which negatively impact over its brand image (Faturrohman and
et.al.,2018).
McKinsey Model
This model is implies by Gucci which help them to improving organisational
performance which is explained below:
Strategy: Under this, Gucci implies growth strategy to expand their market by
introducing new product or adding features into its existing products for gaining competitive
advantage (Lerman and Shefrin, 2015).
Structure: In this aspect, Gucci follows hierarchy structure which help them to build a
better working culture and assist to add value towards employee morale.
System: In this, company monitors day to day activeness in which personnel associate
pertain themselves for assure in completion of allotted task.
Shared value: Under this, Gucci make sure it provide equal opportunity to each personnel
which provides them motivation and enrich their value within business premises.
Style: This aspects concern with acquiring best leadership style for which Gucci
managers applies democratic style in order to enlarge its market share or profit margin. s
Staff: In this, Gucci's leader makes an attempt to identify manpower potentiality and
render them proper training or platforms to enhance their hidden talent for attaining profit
maximisation ( Gachua and Orwa, 2015).
Skills: In order to improve employees capability, Gucci takes an initiative to generate
diverse working culture which enlarge its proficiency ratio in a better manner.
Hence, it has been evaluated that the above mentioned models enable Gucci to amend its
whole execution as well as to assume best positioning within competitive marketplace by utilise
best strategical determination to cope up with all unpredictable challenges or competition.
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CONCLUSION AND RECOMMENDATION
It has recommended from the above report that Gucci should makes more effort in
analysing current or rising way of an industry and adopt best strategic decision which lead them
to get best positioning within competing marketplace in an innovational or creative mode.
It has been summarised from the preceding report that marketing is a crucial function of
an organisation which help them to reach all potential customer in an effective manner by
adopting different distribution channel of network to attain high productivity or profitability
ratio. Moreover, SWOT and McKinsey model assist company to determine its internal
capabilities in order to receive profit maximisation with an optimal usage of resources in a
amended mode.
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REFERNCES
Books and journals
Barney, J. B., 2014. How marketing scholars might help address issues in resource-based theory.
Journal of the Academy of Marketing Science. 42(1). pp.24-26.
ER, M., Hanggara, B. T. and Astuti, H. M., 2018. Model for BPM implementation assessment:
evidence from companies in Indonesia. Business Process Management Journal.
Faturrohman, F and et.al.,2018. Application of RBV Theory and McKinsey 7’S Model on Start-
up Company. Scientific Journal of PPI-UKM. 5(1). pp.1-6.
Gachua, M. W. and Orwa, B. H., 2015. Factors Affecting Strategy Implementation in Public
Universities in Kenya: Case of Jomo Kenyatta University of Agriculture and Technology.
International Journal of Education and Research. pp.313-326.
Lerman, D. and Shefrin, H., 2015. Positive marketing: Introduction to the special section.
Journal of Business Research. 68(12. pp.2443-2445.
Njeru, K. N. and Kariuki, P., 2019. Influence of Mckinsey Framework on Competitive
Advantage of Firms in the Telecommunication Industry in Kenya. Journal of
International Business, Innovation and Strategic Management. 2(1). pp.68-81.
Wedel, M. and Kannan, P. K., 2016. Marketing analytics for data-rich environments. Journal of
Marketing. 80(6). pp.97-121.
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