Group Project

Strategic Marketing Plan

MKT 470
Strategic Marketing
Sec: 7

Prepared for
Aunima Nazmun Nahar(QEA)
Senior Lecturer,
Department of marketing and International Business
School of Business and Economics
Group Members

Name ID

MD. Imran Ali 1521292631

Sadia islam sanjana 1521921030

Kazi Furkan Elahe 1321247030

Anaf Sharfuddin 1430072030

Sadia islam sanjana 1521921030

 Overview
1.Italian luxury brand of fashion and leather goods.
2. Gucci was founded by Guccio Gucci in Florence in
1921.
3. Global revenue of Gucci 6.2 billion euros in 2017.
4.36th most valuable brand, with a brand value of
$14.9 billion in 2018 (Forbes)
 Overview
5. 500 Gucci stores
6. Automobile collaborations expanded into new
markets including an agreement with American
Motors Corporation
7. Gucci gang marketing fact.
 SEGMENTATION
DEMOGRAPHIC SEGMENTATION
Demographically, Gucci brand are
segmented using sex and age as a criteria
& produces brands for male and female,
children and adults respectively. Their
brands are for the category of male and
female who love the desire to impress
others, have a high social class and strong
financial base. Those who love the brand
are driven by the kind of lifestyle they live
and the need to maintain that lifestyle .
 SEGMENTATION
GEOGRAPHICAL SEGMENTATION
Gucci is very conscious of the countries it locate its brands considering the fact that they are
exclusive and of great quality.
Gucci operates in very few countries in America and Europe whose consumer behaviour is
unique in terms of quality. For example,France populace are willing to pay more for quality.
In recent times, Gucci has spread to France, Germany and Belgium.
Gucci geographical segmentation is poorly structured as it tends to ignore developing
countries and emerging markets.
 SEGMENTATION
PSYCHOLOGICAL SEGMENTATION
Gucci brand focus is majorly on this segmentation with strict concentration on life style.
Over the years, they have targeted the lifestyle of their customers who are mainly songsters,
film stars, and aristocrats, whose buying decision are mainly influenced by the group they
belong to.
Gucci focuses on lifestyle because it satisfies them best and most profitable considering the
fact that their brands are expensive and of great quality.
The factors driving the psychological aspect of Gucci’s segmentation over the years are
increasing disposable income, lower unemployment globally, increasing female
employment, growing wealthy class in emerging countries and the desire to emulate the
lifestyle of others and social influence to purchase luxury goods.
 SEGMENTATION
BEHAVIOURAL SEGMENTATION
Gucci as a brand has proved over the years to be of great quality and very durable, thus it
has a high percentage of consumers’ loyalty.
Gucci brand comes with great experience in different dimensions. Most of the loyal
customers may have experience its great quality and the respect the brand commands.
Gucci can increase its user rate and the attitude of the market towards its product by
moderating its price as its prices are usually on the high side.
 SWOT Analysis

 SWOT Analysis is a strategic planning tool that can be used by Gucci managers to do a
situational analysis of the organization. It is a proficient technique to map out the present
Strengths (S), Weakness (W), Opportunities (O), and Threats (T) Gucci is facing in its current
business environment.
 The Gucci is one of the leading firms in its industry. Gucci maintains its prominent position in
market by critically analyzing and reviewing the SWOT analysis.
 The SWOT Analysis framework enables an organization to identify the Internal strategic factors
such as strengths and weaknesses & External strategic factors such as opportunities and threats.
 SWOT Analysis of GUCCI
Strategic Analysis

Internal External

Strengths Weaknesses Opportunities Threats

Internal: Strengths, Weaknesses

Strengths:
 It has a strong Brand Portfolio.
 It has highly skilled workforce through training and learning programs
 It has a dealer community and strong distribution network

Weaknesses:
 It has a high attrition rate in workforce.
 They need more investment in new technology
 Financial planning is not done properly and efficiently
External: Opportunities, Threats

Opportunities:
 The new taxation policy can significantly impact the way of doing business.
 The lower inflation rate bring more stability in the market
 The new technology provides an opportunity to Gucci to practices
differentiated pricing strategy in the new market
Threats:
 Rising pay level movements such as $15 an hour and increasing prices at
china can lead to serious pressure on profitability of Gucci
 Rising raw material can pose a threat to the Gucci Profitability
 Growing strengths of local distributors also presents a threat in some markets
Porter’s Five Forces
Porter’s 5 Forces (Cont.)
Bargaining Power Of Buyers
• No bargaining power over price
• Differentiated Product
• Consumer of luxury product rarely demand low prices

Bargaining Power Of Suppliers

• Bargaining Power is ‘low’
• Being Gucci’s supplier means more downstream
industry orders
• Gucci takes the advantage
Porter’s 5 forces (cont.)
Threat of Substitutes
• Threat of substitutes are ‘moderate’
• Have to compete with other expensive valued items such as cars or leisure
holiday trips
• Can face problem when the economy is bad (during recession)

Threat of New entrants

• Value its loyal customers with giveaways and gift certificates.
•A variable amount of customers will be presented with the aforementioned
offers.
•This will maintain interest amongst the customers and help create premium
loyalty and customer retention.
Traditional family cycle stage
Stage 1 (bachelorhood)
•20% discount to students
•distribute the leaflets among students
•target students who are mostly bachelor.

Stage 2 (honeymooners)
• Targeted aged group are between 10-45.
• Mostly young and they can spend more
• They don’t have any children.

Stage 3 (parenthood)
•Children are fond of fast-food.
• Parents may choose Franky’s for them or children could
manipulate their parents to come here.
Classical conditioning

Repetition Line extension

- Positive Reaction - Varity of new flavor
- Focuses on friendship - Topping in Hotdogs
- Create a strong - Sweet, spicy, Grilled
image sausage etc.

Classical
Conditioning
Instrumental Conditioning Learning

• Franky’s will have 2 outlets in Gulshan and

Dhanmondi.

• Customers can enjoy the meal in well embellished

restaurants.
Vicarious Learning

• New taste is creating a hype.

• Spread positive word of mouth.
• Students get promotional offer.
• Consumers will be rating in website, foodbank
and personal facebook.
Expected Loyalty: Premium loyalty

• Franky’s took feasible move to get loyal

customers

• Who will seek out, regularly purchase, highly

attach with it.
Consumer Attitude
(Tri component attitude model)
 1. Cognitive:
• Manufactured locally, high quality, freshness of the
meat, authentic taste, affordable price range.

 2. Affective:
• Focuses on the tightly knit community.
• Highlights on the creation of friendship by allowing
friends, families and co-workers.

 3. Conative:
• Advertisements will contain website links.
• Moto will state attractive pricing and product quality.
Function of Attitude
 Utilitarian
Halal meat, quality of the local and imported
sausages, freshness of the food, affordable price.

 Value expressive
 community values like friendship, family
bonding and franky’s holds.
 environmentally friendly as it reduces wastage
of meat.
 consumers feel giving back to society.
Reference Group Appeal

• The common man

The advertisements will have common man/woman as

the subject.
Expanding Business in Future

• Acculturation
• Similarities and differences among the people.
Extensive Problem Solving

• Franky’s is a new brand.

• Consumers will be thinking a lot before
purchasing.
• Seek information about the brand and product
quality.
Thank you