BTEC HNC Marketing Essentials: Gucci's Plan, STP, SWOT & Objectives

This report provides an overview of marketing essentials with a focus on Gucci's marketing strategies. It covers the importance of marketing within an organization, the marketing mix (Product, Price, Place, Physical Evidence, People, Promotion, and Process), STP approach (Segmentation, Targeting, and Positioning), SWOT analysis, and marketing plan objectives. The report also includes a budget plan for the next 5 years and discusses the importance of monitoring results. The analysis highlights Gucci's brand equity, pricing strategy, target customer segmentation, and promotional activities, concluding that effective marketing is crucial for achieving organizational goals and managing business activities.

Marketing Essentials

Table of Contents

INTRODUCTION
Marketing is an important function which is effectively managed within the organisation to
order to expansion of sales and profit of the company. There are various importance of the
marketing role and responsibility within the company’s so that it is effectively managed that how
profits of the product and sales can be increased. Marketing mix is known as the technique which
is used for knowing what are the weaknesses and strength that the company is having (Dioko,
2016). The company considered for doing the present report is Gucci. This is a fashion brand of
Italy which was started in the year 1921.
TASK 1 (covered in ppt)
P1
P2
TASK 2
P3
Marketing factors Gucci marketing mix Chanel marketing mix
Product Gucci is known as one of the
leading brand of fashion
products and items and this
company was started in the year
1921 by Guccio Gucci. This
company has been working
since many years and it has
high profile names within the
fashion industry (Duffett,
2017). This is a multinational
brand which is having strong
international exposure and it is
working with customers by
Chanel company is a leading
fashion brand which provides
products to elite category of
customers. This company is
providing products and services
to luxury premium segment
people who can afford fashion
products. This company is
involved in targeting specially
women and it provides
fragrance products to men.
There are other product
categories within the Chanel

operating directly at stores.
Main competitors of Gucci are
Louis Vuitton, Chanel, Dior,
Prada, etc. This company
provides excellent products and
services by supplying
qualitative products. The
images and features of
products are unique and these
are of high quality. handbags
offered by this are elegant and
refined as well as the baby your
provided by this company is
also fashionable and
comfortable.
product mix which includes
ready to wear clothes for fine
jewelry watches makeup
skincare, etc.
Price The pricing policy used by
Gucci is premium pricing as the
quality of product is very high
and superior . This brand is
related with high brand value
and quality and hence there is
prestigious pricing which
makes the products of Gucci a
good symbol of status. Also,
there are customers who feel
happy and satisfied by
purchasing products of a
premium brand. This company
offers various discounts on
selected items and in case of
Chanel is known as the brand
which is providing fashion
products to the customers. The
target segment of this company
is niche and cash rich audiences
and customers. the prices of
products and services of this
company are comparatively
higher than other fashion
brands. Chanel company is
known for brand status and
hence, upper middle class
families as well as high class
families perfume products of
this company.

internet purchases this brand
provides high discounts so that
sales will be increased.
Place Place is a marketing mix factor
which provides information
about the area in which
company is offering the
products and services
(Gillespie, and Riddle, 2015).
Gucci provides fashion items to
the high and market and for
doing this, this company is
creating a responsive
attachment between brand and
customer. The displays on
windows of Gucci are very
proactive and the sales people
of this company are smartly
dressed. For building good
reputation and image in front of
customers, stores of the
company takes and active and
Direct path in operation and
opening processes.
Chanel company provides
products to aristocratic segment
of people. This company has
failures stores which are located
at different posh areas and
localities (Griffitts, 2016).
Stores of this company are also
present in lobbies of areas five
star and seven star luxury
hotels. There are various cities
like Tokyo, Bangkok, Sydney in
which this brand is making the
highest profit. There are
approximately 310 boutiques of
this company across Europe.
Physical evidence Physical evidence is defined as
the marketing factor which
consists of the way in which
stores of the company are
managed and prepared. Gucci is
Physical evidence is another
marketing mix factor which the
places in which company is
present and providing products
and services (Groucutt, and

an organisation which sells its
products in a distinct colour
packaging which is easily
identifiable on various retail
shelves. Kochi is having its
personal stores in which most
attractive thing is the logo of
this company which is
highlighted in front of the shop.
Hopkins, 2015). In context of
Chanel company it is seen that
there are 310 boutiques of this
company out of which more
than hundred are situated in
North America. This company
also offers counters for skin
care as well as fragrance items
which are available across high
and luxury malls.
People Peoplein the marketing mix
implies that who are the people
working under the sales team
and playing an important role
for marketing efforts.these are
known as people who have
been trained with them cause of
perspective techniques and
they are providing full help for
business customers which is
taken into consideration for
customer preferences. Gucci
undergo training for Salesforce
customer service and
purchasing people as it will
help in delivering value
products to customers.
People are known as the
employees and staff who are
hired for working in the
company. staff and employees
of Chanel company are skilled
and one thing is common in all
of them which includes having a
good fashion sense. It is very
important for the organisation
like this to hire people who
have good knowledge about
fashion so that new innovations
in products can be done easily.
Promotion It is very important to promote
and advertise the products of
Gucci (Hair Jr, and et. al.,
Another factor of marketing
mix and in context of Chanel
company it is seen that this is

2015). Various marketing
strategies are adopted by the
company for hi investment for
promotion and advertisement.
For creating an appeal to the
new generation, Gucci’s
starting experimental
marketing. Also this company
is using controversial strategy
of advertising. This can be
explained with an example of
opium perfume in which Sophie
Dahl where’s the model used
for displaying the expensive
and leading brand's perfume.
widely well known for extreme
fashion brand. There are several
ways by which is company
involved in advertising and
promotions of products. The
most common thing which this
company does is providing
advertisement of Steel plant it
on high and fashion magazines
like Marrie Claire, Vogue,
Elle,etc. this fashion brand also
employs failures supermodels
and Hollywood actors for
modelling their brand and
contributing to the promotion of
products.
Process Process is the marketing
element that consists of the way
of selling products and goods to
customers (Kladou, and et. al.,
2016). Gucci is a company
which provides online delivery
process as well as in store
purchasing. Both the ways are
are done in proper manner and
feedbacks are collected at
regular intervals so that there is
no in effectiveness of the
business success.
Process is a marketing mix
factor which ensures that
products are always present at
retail stores. There are proper
retail store systems so that
retailers can easily notify when
there is requirement of
inventory levels. Also, in which
Chanel company there is
involvement of research market
opportunities which are actively
managed for understanding the
demands and needs of
customers (Lane, 2015).

TASK 3
P4 Marketing plan of Gucci
Objectives- The SMART objective of Gucci for establishing new innovative product in
market.
SMART objectives
 To achieve growth in revenue by 20% in an year
 To increase earnings by 15% by new apparel collection
STP Approach- The STP of Gucci is as follows:-
Segmentation- This is associated with the segmenting of customers on the basis of target
customers. (Larson, and Draper, 2015). The market segmentation of Gucci is given below -
Targeting- The target customers for Gucci are fashion prone people of any age. Gucci is
focusing upon youngsters as they are more into apparels, bags and accessories.
Positioning- This consists of managing these factors promotion. Product, price and place.
In case of Gucci, clients and customers are those who belong to high income level. This is
important for the product of Gucci to be promoted properly.
SWOT of Gucci
Strength Weakness
 Gucci has good brand equity and it sells
products at premium price.
 This fashion brand operates all over the
world.
 It has numerous trademark
controversies.
 The price is very high than the
competitors.
Opportunity Threat
 There is opportunity to attract youth
category customers.
 As this is a renowned brand, there is
opportunity of expanding in any market
easily.
 Gucci faces high competition and there
is need of developing effective
strategies in order to maintain profits.

Budget- The manager of Gucci has prepared budget which will be helpful for next 5
years which is shown below:-
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 60000 85000 120000 145000 183500
Investment 120000 140000 255000 320000 135000
Total 60000 225000 375000 465000 318500
Marketing
outlay
Promotion 65000 32000 43000 33000 32500
Sales
publicity 22000 21000 33000 22000 20000
Sample
distribution 42000 25000 60000 30000 46500
Total 129000 78000 136000 85000 99000
Monitoring results of marketing plan- This is known as the last step for managing the
working of the company (Westwood, 2013). This is seen that after the budgeting, it Is seen by
the Gucci management that business activities and functions are done properly. There is need for
Gucci to control different marketing and advertising campaigns. Above budget is planned for
managing these campaigns. Proper monitoring is done in order to improvise functioning of
business activities.

CONCLUSION
It is concluded from the above report that marketing is an essential responsibility of the
companies for attaining the organisational goals in lesser time. This is also important for the
company for controlling and managing business activities and reach the effectiveness of the
company’s target and functioning. The marketing mix of the company provides the information
about the various factors of the company.

REFERENCES
Books and Journals
Dioko, L. D. A., 2016. Progress and trends in destination branding and marketing–a brief and
broad review. International Journal of Culture, Tourism and Hospitality Research.
10(1). pp.5-13.
Duffett, R. G., 2017. Influence of social media marketing communications on young consumers’
attitudes. Young Consumers. 18(1). pp.19-39.
Gillespie, K. and Riddle, L., 2015. Global marketing. Routledge.
Griffitts, M., 2016. Human resources marketing and recruiting: Essentials of internship
management. Handbook of Human Resources Management. pp.103-118.
Groucutt, J. and Hopkins, C., 2015. Marketing. Macmillan International Higher Education.
Hair Jr, J. F., and et. al., 2015. Essentials of business research methods. Routledge.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Kladou, S., and et. al., 2016. The role of brand elements in destination branding. Journal of
Destination Marketing & Management.
Lane, P., 2015. Human resources marketing and recruiting: essentials of employer branding.
Handbook of Human Resources Management. pp.1-30.
Larson, J. and Draper, S., 2015. Internet marketing essentials. Idaho Falls, ID: Stukent
Incorporated.
Westwood, J., 2013. How to write a marketing plan. Kogan Page Publishers.
Wirtz, J. and Lovelock, C., 2016. Services marketing. World Scientific Publishing Company.
Zolkifly, N. H. and Baharom, S. N., 2016. Selling Cars Through Visual Merchandising:
Proposing Emotional Design Approach. Procedia Economics and Finance. 37. pp.412-
417.

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