Gucci Case Study
Autor: Adnan • October 9, 2018 • 797 Words (4 Pages) • 609 Views
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Therefore, I think Gucci should be responsible to our environment by gradually replacing rare material by innovative and biodegradable material. Gucci can invest more on raw material R&D and promote some benefits of newly developed materials. In 2016, Adidas unveiled a concept sneaker made from 3D-printed recycled ocean waste, which cost much higher than Adidas’s currently product lines. Gucci can take Adidas’ case as reference to launch a limited collection of recycled product line and sell them as an even more premium product and support the environment at the mean time.
To some extent, this strategy may have a limitation as replacing scarce material may lower customers’ satisfaction. Yet, I believe luxury goods consumers focus more on intangible values than tangible values, consumers will still feel satisfy with the products thanks to social approvals and goodwill.
Price
I would suggest Gucci to further mark up the retail price and those increased margin should be reinvested to achieve CSR related activities, like raw material innovation and upgrading instore facilities. It is because luxury goods consumers are relatively less price-sensitive and have a higher brand loyalty, which they will not switch to other brand easily due to small price difference.
Promotion
It is important for Gucci to improve their cross department communication and internal supervision, as there are controversy and opposition between their current promotion strategies and CSR value. Apart from regular marketing promotion activities, Gucci should react positively to some social issues and implement advocacy advertising regarding some controversial topics that global millennial would like to be involved. For example, Ben Goldsmith's wife breastfeeds her daughter while wearing a £3,700 Gucci gown at her sister's wedding, Gucci can implement some follow-up activities and promote gender equality. Gucci can help to promote some values that young generation stands for and spread them through marketing campaign, this can target new generation and expand Gucci’s customers base.
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