lOMoARcPSD|7565981

Consumer and buyer behavior Gucci case

Consumer Behaviour (Dublin City University)

StuDocu is not sponsored or endorsed by any college or university

Downloaded by Redo Mamo (redoma1773@gmail.com)
 lOMoARcPSD|7565981

17201111

TABLE OF CONTENTS

Executive summary 3

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Introduction 4

How is the typical customer of this brand? 4

How do consumers perceive this brand? 6

A. What does brand do so that consumers successfully associate the product 10
with the product category, and differentiate it from other players in the market?

What is consumers’ attitudes towards this brand? 11

A. Based on Fishbein model,what is the consumer attitude towards this
brand in comparison to its competitors in the same category? 11
B. What is this brand doing right to keep their brand evaluations high? 14

Why consumers end up purchasing this brand? 15

A. Which Consumer Needs Does This Brand Satisfy? 18
B. How does this brand successfully gets into the “consideration set” of
consumers who want to satisfy that need? 20
C. How does the brand successfully close the deal? 26

Appendix 28

Graphs explanation 33

References 34
EXECUTIVE SUMMARY

Gucci has been considered as one of the most influential brands in the world of
fashion since it was created in 1921. Moreover, thanks to its good positioning, the
Italian brand can boast of being a leader in the luxury fashion market.

The Company knows how to form a clear idea in the minds of its consumers,

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

providing clothing and accessories of luxury and quality, at a price that the average
consumer can not afford. Hence, the exclusivity of the brand, and its approach to
people of the upper or upper-middle class.
Likewise, the fact that it offers not only a product, but also a service, (with the
treatment of the salespersons), and a feeling (exclusivity and acceptance), is key to
understanding the high degree of loyalty that consumers have for the brand.

Gucci has been able to adapt to its target market, and achieve the perfect
combination of tradition and innovation in its designs. In addition, to market their
products, it uses influencers and celebrities, that are becoming the best marketing
tools of the moment.

However, the world is constantly changing, and new opportunities for the brand are
emerging. Among these, we highlight three: tap emerging luxury markets in
emerging economies like India and China, create a competitive advantage in
different business segments, and target youth segments.

INTRODUCTION

Gucci is an Italian luxury brand of fashion and leather goods, part of the Gucci
Group, which is owned by the French holding company Kering. Gucci was founded
by Guccio Gucci in Florence in 1921. Gucci used to work in big hotels and he had
always be amused by the lifestyle of their clients and the kind of luggage they
carried. This interest was the main reason to start working with Tuscan artisans in

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

the creation of leather bags to horsemen that were later on converted into luxury
bags being this one the beginning of a brand that has last for almost a century.
Currently, Gucci is the most expensive brand in the luxury goods market operating
more than 500 stores worldwide.

A) Who is the typical customer of this brand?

To identify the consumer of the brand that we are analysing we need firstly to divide
this customer in different areas to know him in all the aspects. The most important
areas are: Socio Economic, Geographic, Demographic and Psychographic. It will be
explained one by one.

Socioeconomic:

Linking customers to their habits and their salaries is the best way to define Gucci’s
path and loyalty to them. So, we should take in account that Gucci’s target market is
related to celebrities and the upper class, including the wealthy and fashionistas.
However, nowadays Gucci has reached the middle and upper-middle class thanks to
its marketing campaign, based in sponsoring young musicians, models and film stars
and showing them to the public wearing their brands and exhibiting a wild/elegant
trend style, that impacts in the social life of this classes that want to follow their idols,
dressing and acting like them. Now, in 2017, it doesn’t mind if a famous bomber
costs €900, what is important is that you have it.

Geographic:

Gucci’s market studies are very specific, the countries that it is going to locate must
have potential customers that appreciate the great quality and the exclusivity of its
products. Gucci’s geographical segmentation ignores emerging markets and focuses
countries in Europe and America where customers are more accustomed to luxury
and quality; particularly in France, US and Italy of course. Nevertheless, Gucci is
expanding its geographical barriers trying to reach the Asian-Pacific market
(excluding Japan), in concrete China and Indonesia.

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Nowadays, Gucci is looking for opportunities in Latin America, especially Chile,

Mexico and Brazil. To be more competitive they need to reach every potential
customer in the globe.

Demographic

Gucci is focusing in a market that embraces males and females between twenty and
fifty years old. So, the Italian company zooms in the lifestyle of this potential
customers and creates the clothes that fit in their day to day. In this last years, Gucci
has added a new collection that allows it to enter in a new target market: children.
This strategy gives Gucci the possibility to reach parents and their children at the
same time, which obviously increase their revenues and grants a new image for the
brand.

Psychographic:

In 2005, due to the global recession, Gucci’s customers were more cautious of their
buys and spends on luxury products, reducing their impulse buying acts; what is the
opposite that is happening nowadays. However, the desire of emulating the lifestyle
of aristocrats and famous characters is one of the main important bullet points of the
brand; social influence has been always for Gucci (having account other aspects) its
strategic marketing campaign, people will buy if their idols show them how to be like
them. Presently, thanks to the social media Gucci has the best channel to promote
their clothes, not only Instagram, Twitter or Facebook; sponsoring artists in Youtube
can make the brand reach the millennial market that doesn’t mind spending a lot of
money in just one clothe. Now, this behavioural segmentation is proved thanks to the
loyalty of customers; quality and durability of the clothes make Gucci’s customers to
continue buying its items. Being experienced in different dimensions allows Gucci to
expertise in what customers need and adapt the prices to their correspondent
quality. Over the years, the factors that drove Gucci’s psychological segmentation
were economical factors as bigger disposable incomes, lower unemployment and
growing healthy class among others.

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Forecast of customers in the long run:

How we have seen Gucci has clearly segmented its customers in different areas,
however the Italian brand is trying to reach more markets to increase its revenues
and profits. Thus, in next years Gucci is going to try to attain more millennial market,
to expand their products in the Asian-Pacific region and to increase its marketing
campaign respect its children market; all this having account that the company has
to maintain its philosophy of luxury and quality, trying in its best way to difference
from its competitors.

B) How do consumers perceive this brand?

In order to have the perception of something, what our brain does first is to give us
immediate information by using our senses. That is to say; when we get in a Gucci
store the first thing that comes to our minds is: how spacious the shop is,the
illuminated shelves with the purses on theme, how comfortable seats look,the power
sensation thanks to the man who usually opens the door for you... and much more
things that can come up to our minds in time of seconds by just using our
senses.This is the raw data that our brain needs to have a sensation of how the
product/brand is, which at the same time is the first step to create our perception.
The sensation that we get, is created thanks to the stimulus exposed to us when we
for example: get in a Gucci store,touch a Gucci purse,smell a Gucci fragrance,watch
and ad on Tv,magazine…
And all those stimulus to which we are exposed (on purpose) are there, so we all
have the image of the brand that the marketers and the own brand itself wants us to
have. But in order to do that, marketers have to overcome the sensory thresholds, so
in the end they have our attention.
So what Gucci has done over the years is to keep the brand classical, but at the
same time changing so the customer is in a permanent exposure state (thus
capturing younger consumers as well), that is to say; they have kept their logo equal
over the years as well as their distinctive colours, (thing which is shocking because
the classical style is still giving benefits) but it has also kept up with the trends and
engaging partnerships with other brands,celebrities...

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

And after all this, once gucci has our attention; they ensure that we keep paying
attention to every single movement they do.Thus accessing to our needs of giving
an image of us to others that the brand through its products can provide us.
(perceptual vigilance).
After that, we interpret that brand according to all the stimulus we have been
exposed to:when watching the ad,when getting at the store,when smelling a
fragrance,when buying a purse… And what we finally do to get our perception is to
organize it.Cause as natural human beings, our brain tends to organize all using the
associative networks according to what we already know, because of similarity,
closure and figure and ground.
So regarding the examples named before, we can say that when an employee opens
for you the door in a place it reminds you of a famous or important person,of
someone who has power.Thing which, at the same time remained to one of our
interviewees to when she got into tiffany's. Furthermore, when you see the big space
and well organized manner of the stores, there’s something completing that feeling,
that tells you that you have a wide range of products to choose.

And finally when you see one of their ads (this example) dominated by the ground, it
remains you of their logo
(previously seen in the
store) and it also remains
you to gold, which has
power attached to it.

Here is an associative
network of how a person's
associate some of the examples presented before as well as our interviewees told us
when showing and explaining theme some of the examples.
Having made this analysis and being the organization the last phase of the

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI
Gucc
i

perception which
Man is the process by which people select, organize, and interpret these
sensations. openin Ad
“The study of perception, then, focuses on what we add to these raw
sensations ginthe
order to give them meaning” (Solomon, M.R. (2018) Consumer
door
Behavior Buying, Having, and Being. Pearson).Reason why now, we can say that
g
Importaperceive
customers Pow Exp Gucci asBa luxury
G brand.For their customers ,Gucci is art printed
ol
nt ensi o ir
er they can actually wear.They
into something
ve y d see beauty, personality and good taste
l
inCele Handsome
all the designs the brand releases each season. They perceive freshness as well
classy Mo
brity
as tradition
Mo in every piece,
Clascause as wene Exclu
can see Gucci has always kept loyal to its
ney Ri s sive
style and colors that characterize y
the brand through the years. Gucci also shows
ch Beautiful
Tre as well
power,
val
as independenceclassy
and empowerment sense to all the business women
Busi ua
outndy
there. ness ble
Man Lu
As said before, Gucci is perceived
xu as a luxury, as something you don’t really need to
woman
live, but which actually youry can afford and have cause you have got the money and
you are not using it to pay your bills...but instead, to buy something trendy and
unique.Something that everyone cannot afford; reason why although the majority of
their products are prêt-à-porter, that’s to say in the retailing world; ready to use…not
everyone can buy it or have it due to it’s price and exclusiveness.
Furthermore it can be said that they perceive Gucci as something valuable,
something in which they trust to spend their money on, cause it actually worths it,
and they know that the purse they just bought is not going to be broken or whatever,
cause every of their products is made out of good quality raw materials.And also,
regarding this last fact we can add that many years can pass, but a Gucci purse will
always be a Gucci purse, and therefore it will always have a good value. Cause as
Aldo Gucci said “Quality is remembered long after price is forgotten."
All of these statements can be translated into the many reasons why, in the end
these rich people, brand ambassadors, celebrities like to wear Gucci
designs.Because they make feel and think they have all the characteristics and
features that the brand has and that we have explained above.

a. What does brand do so that consumers successfully associate the product

with the product category, and differentiate it from other players in the

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

market?

Even Though Gucci has almost 100 years of history creating unique and luxurious
retailing pieces, it was not the first one getting into the market.By that time
LV,chanel,Hermes and Prada had been a few years in the market and so they had
more experience besides choosing what place they wanted in the market.
So when Gucci arrives some years later what they had to do was to find out
associations with what they wanted to do, that is to say; with the selling of luxury
and unique products.Then they had to analyze the market and see what gaps
remained left so that they could take advantage of it and create a unique brand
position different to the other ones. As seen in the previous question, Gucci has
successfully achieves that part but what they exactly did was this: Taking their
competitor and writing down some associations related with what they wanted to
create .Apart from that the company also made a list of the remaining associations
which could be necessary for the brand.

LV-Tradition, high quality, expensive, luxury

Channel- Daring, adventurous, independent women,high quality
Hermes- Heritage,exquisite, luxury, eye for detail
Guess-Mass market,less luxury
Prada-Luxury,elegance,chic

Friendly environmental,stop using fur,Trendy,young

After seeing the main characteristics (they wanted to have) as well as its
competitors, they evaluated the remaining gaps by making a perceptual map:

As clearly shown above, the gap that Gucci decided to take and make its own was
the one that combined tradiction (as explained in the first question) as well as
innovation and trendiness to capture those young consumer and not just focus on
the older ones.

Luxury

Hermes
LV
? Chann
el
9
(1)
Traditional Downloaded by Redo Mamo (redoma1773@gmail.com) Innovative
 lOMoARcPSD|7565981

a GUCCI

?
Guess
Affordability

After having chosen a position in the market they started to produce high quality
products,with a high price so it was perceived by luxury.Furthermore in order to be in
the middle of the perceptual map what they did (and still keep doing ) is keep their
style classical as well as adapting to the new upcoming trends in the market, so they
can capture those young teenagers who are looking for that and an independent
style in what they’re wearing. With all those procedures they also gained the
exclusiveness, due to the fact that not everyone can access to what they have to
offer. So yes, this is the procedure by which they have achieved to be related with
the overall category as well as; creating their own brand, with their own style based
in the position they decided to take.

C) What is consumers’ attitudes towards this brand?

How we have seen, Gucci’s customers are divided in different segments, but
all of them have in common the feeling of what they want from the company: luxury,
quality and sense of fulfilling. These consumers are seeing Gucci nowadays as one
of the top upper-class brands, and they buy its products following their social needs;
they want to be accepted in the high-class community and the underground style (it
depends of the customer) as copying the lifestyle of famous characters, following the
trend that is being developed during the past years and is perfecting day by day.
As we are going to see in the next sections, Gucci’s customers demand all type of
products in different domains and the Italian brand gives it to them, satisfying their
needs and rebounding in a better attitude towards their image as a luxury brand.

a. Based on Fishbein model,what is the consumer attitude towards this brand

10

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

in comparison to its competitors in the same category?

Fishbein model of consumer behaviour (also called theory of planned behaviour or
theory of reasoned action) attempts to explain the rationality of choice of the product
by the consumer by using measure of his overall attitude towards object. This model
helps to understand consumer decision making process and suggest different ways
to influence it.
Fishbein model distinguishes three basic variables:
• customer attitude towards particular object (Ao),
• beliefs that this object has certain attributes (benefits, values, features), it is
result of prior knowledge, advertising, etc (Bi).
• subjective evaluation of this attributes and positive outcomes, benefits from
acquiring this object (Ei).
Symbolically, above variables can be presented in following formula:
Ao=∑i=1nBiEi

https://ceopedia.org/index.php/Fishbein_model

Following the steps of the Fishbein model, and knowing that the Gucci competitors
are brands like Zara, Chanel, Christian Dior or Burberry. Why the consumers choose
Gucci and they do not choose its competitor?
The Fishbein model explain how the consumer choose a brand. So, developing the
equation, we have (Bi), which are the attributes of Gucci. These are, the high-quality
leather products and hand-making shoes, the charisma of its products, its strong
brand image, its control of the distribution channels, the collaboration with UNICEF
as a part of SCR initiative, the associations with automobile companies like Ford,
Fiat, General Motors, added brand value and finally, the great advertising and
marketing which has made Gucci a top of the mind fashion brand.
Regarding the second part of the equation (Ei), the people who buy in Gucci
evaluate its products like a high-class who gives them a high status. Obviously, there
are brands cheaper (Zara) where the clothes quality are good, but Gucci gives to the
customer the opportunity of dream. Many of the people when see a Gucci store start
thinking about if they can someday enter in that shop and buy one of its products,
because they want to be seen like high-class people, and that is why it is like a
dream.

11

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Comparing Gucci with other high-quality brands like Chanel, Christian Dior, etc. the
customers choose Gucci normally because of the loyalty that Gucci have generated
because of its marketing, that is Gucci’s high-end image is built on the two pillars
that are typical for most luxury brands, that is, handiwork and heritage (patrimony),
what distinguishes the brand from its competitors is its sensual character and the
fact that it’s based on the Lover brand archetype. In the previous two decades (until
2015), the bold, sexually provocative, and controversial style characterized Gucci’s
communication. Gucci’s customers are willing to pay a higher price due to its
premium brand image, customization, unique styling, high customer loyalty, and
unusual high quality.

https://brandstruck.co/blog-post/positioning-three-valuable-luxury-fashion-brands/

DIFFERENTIATION AND STRATEGIC ORIENTATION:

• Differentiation, Gucci’s differentiation is about the sophisticated, high-class,
high-quality, and innovative products. Gucci’s leather goods, along with its red and
green striped webbing for the Gucci logo, allowed this strategy to succeed due to the
unique brand image and high quality attributes that the customers perceived to be
better or different from the products of the competitors.
• Strategic orientation,
Product leadership: quality, leadership and performance
Symbolic-expressive value, appeal to consumers’ self-concepts and self-
worth, prestige, status and image.

The Gucci target customers are:

• middle-aged
• high income
• high status
• businessman

OPPORTUNITIES
1. Gucci can tap emerging luxury markets in emerging economies like India and

12

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

China
2. Creating competitive advantage in different business segments can be an
opportunity for Gucci
3. To target the youth segment which stylish designs

b. What is this brand doing right to keep their brand evaluations high?

Gucci is not only a brand for its customers, it is a lifestyle, it is seen as a way
of dressing in the 21th century attracting them at the same time to the rebel vision
from finals of the 20th century. This nostalgic way of clothing that brings back the
90’s to our era catch young customers that want to fit in this aesthetic trend. So, in
one side we have young customers that are appealing to feelings and to a nostalgic
trend mixed with a new-rebel vision of freedom of expression in the society; that
means that Gucci knows how to camouflage between new generations. Young
customers give high brand evaluations to this brand because it is offering them what
they want: luxury, quality and a lifestyle that even models wear in their day to day.
Nevertheless, not all Gucci’s customers are 20 years old, there are customers from
the X & Y generations that appreciates the brand and buy its products too. They are
not following more this new rebel vision that is being showed in social media, they
are more influenced by the advertisements shown in the streets and a point of view
gained over time, following a more critical view of the quality and durability of
products instead of the feelings that can overcome that. These generations dress
Gucci’s clothes not because off they are following famous people lifestyle, they buy
these products due to they belong to the middle-up/high class and they have enough
incomes to afford the prices.
Gucci’s trajectory through the years is linked to a search into what want their
potential customers in the society; instead of being part of the new trends as their
competitors, it is creating and changing fashion trends to increase their profits and
brand evaluations, what impacts in their revenues and their future marketing
movements.
Definitely, customers of all ages are being attracted to Gucci’s lifestyle, what
represents all what they want to imagine in different ways; you can go to a ball as
you can go to the job or cinema with Gucci’s clothes, that is because these clothes

13

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

offer versatility in a lot of ways. This huge wardrobe that the Italian brand offers helps
it to get more good evaluations.
Furthermore, Gucci is reinventing itself every day to be more innovative than the
competence, even when they are sponsoring singers, those who are not being in
contact with the brand are buying their clothes because are in the top of luxe and
high-class life.
Besides that, the international expansion that Gucci is performing in Asia is not
changing the ‘soul’ of the brand, in fact it is providing to these new markets the
occident vision of energy and luxury that was explained before.
We can say that Gucci, to keep their brand evaluations high is getting into the minds
of its clients, knowing they needs and providing them their solutions. However, if
customers are getting bored of the way that the clothes are being made Gucci is
signing contracts with contemporary artists or brands that are not direct competitors
but can help the company to change the game and continue being at the same time
elegant and rebel. We can say that Gucci’s customers are not only one-buy clients,
they keep being loyal to a company that is giving them novelty and quality since
1921.

D) Why consumers end up purchasing this brand?

The behaviour that individuals have toward the products and services that the
market offers has a great influence over consumers’ decision on buying a product of
a brand or the service offered by a company according to if such products or
services satisfy their needs and desires.
We could infer that the main reason that leads consumers to buy Gucci is the high
quality of its products. Right now Gucci’s products are one of the most luxury ones
and with one of the highest quality which makes more difficult for the competitors to
copy its standards.
However, if we pay attention to the kind of consumer it is trying to satisfy, we could
come up with a different answer.
It is true that another reason that push consumers to purchase from the brand is the
wide range of products that it offers, its portfolio comprises since its famous
handbags until mugs and other household accessories being all the time diversifying
and offering customers new products.

14

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

But, we still think that the main factor that attracts consumers from the brand is, as
we have pointed out before, the fame of the product and the exclusivity sensation
projected by those who buy it or wear it. It is due to the type of consumers Gucci is
dealing with: high-end clients, since they tend to have a more emotional and
symbolic connection with the brand. The sensation of exclusivity that the product
make feels to its clients could be related with the term animism, as it means when
people attribute to objects qualities that make them feel special. Why do we think
that this is a main factor? The answer is very clear, people often buy products not for
what they do or the quality they offer but for what they mean. To be more precise,
people choose that brand that has an image and personality that goes with their
needs; people choose the brand that best represents its character and lifestyle.
What many brands do to create that distinctive personality that fits with the ones of
the customers is to study the traits of individuals and groups in order to create the
image that they want that consumers have of them, this way they can address
directly to a specific group where they know they are going to fit in and achieve its
brand loyalty at the same time as standing out from its competition.
The decision to use a product it is also determined by the social and physical
surroundings as everything that encloses a person affects its choices and motives to
buy the product and once it has bought it to have a positive feedback about it. An
example of social surrounding nowadays could be the fact that everything spin
around social media and influencers so people just want to copy them in order to feel
they could be a little bit like them.
The decision to purchase is not just influenced mainly by the meaning or appearance
that the brand can give you through its products, in the last years has being gaining
importance the treatment that clients receive in the physical shops by the staff.
Gucci knows how important that is for the loyalty and satisfaction of its customers
that’s why Gucci makes great emphasis to its staff to provide a personalized
treatment to each of its customers making them feel unique and important.

Brand
personalit
y
Range 15
of
Downloaded by Redo Mamo (redoma1773@gmail.com)
products
 Qualit
lOMoARcPSD|7565981

GUCCI
y
Treatment

In the pyramid represented above we can see how are arranged the characteristics
that make customers to purchase this brand according to their order of importance.
In first place, and as we have mentioned before, we would have the personality of
the brand, what Gucci’s products make customers feel; in second place we find the
wide variety of products that Gucci offers to its clients that goes from handbags until
beauty products ensuring this way that customers have all they need in just one
brand; in the third place we find the quality of the products it offers positioning it as
one of the brands with the highest quality right now in the market specially between
the luxury brands; finally, in last place and with a small influence in the customer
decision to purchase the brand we find the personalized treatment that each
customer receives on the part of Gucci’s staff.
To sum up, if we put all these factors together we find one of the most luxury brands
right one being a strong rival for its competitors who have to make great efforts to
achieve the standards and results that Gucci has right now. At the same time, we
have found out with these components which are the main reasons that influence in
the decision of customers to choose Gucci among the rest of brands.

a. Which Consumer Needs Does This Brand Satisfy?

If we think about the definition of needs it is normal that the first meaning that comes
to our mind will be that the needs are the elements that are necessary to maintain
life as it could be the food, water or air. But the thing is that there are many other
needs that we don’t know but are actually with us in our daily life.
We need to know that the way to satisfy a need depends on our history, learning,

16

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

experiences and cultural environment.

NEEDS

Biogenic Psychogenic Utilitarian Hedonic

needs needs needs needs

The first need that we will talk about is the one mentioned before called Biogenic
needs which are biological elements that determine our behaviour. An example of
this could be when we are tired and we need to sleep that sometimes we can be
more grumpy.
The second need is the Psychogenic needs. As we become part of a particular
culture we need to reflect the preferences of such culture and the result which that
has on our behaviour will vary depending on the environment that surrounds us. With
this need we are looking for status and power.
The last two needs that we will talk about are the Utilitarian needs and the Hedonic
needs. The Utilitarian needs highlight the objective and tangible attributes of the
product. In other words, they are the goods that are purchased for their practical
uses like for example the durability of a pair of boots; on the other side, the Hedonic
needs are subjective and are based on the experience and on meeting our needs for
excitement, self-confidence and in some cases for escaping from our routine daily
life. In other words, they are the goods that consumed for luxury purposes and that
permit customers to feel pleasure and enjoyment from buying the product. An
example of this would be luxury brands such as Gucci, as they succeed when they
offer to their customers the promise of pleasure and difference that they are looking
for.
In terms of customer needs we could say that Gucci satisfies both, Utilitarian and
Hedonic needs as it is a brand dedicated to those who not only can afford high

17

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

prices, but also are looking for high quality products products. Gucci gives that image
of luxury and pleasure that its customers are looking for but at the same time the
quality and durability of its clothes makes it worthy buying them. But in general
terms, functional needs are not as important for the brand typical consumer as the
personal and social identity reinforcement. It is actually the seek of its clients of that
feeling of exclusivity, of feeling different to others and, why not to say, of higher
status in relation with the rest of the people being this related with the
aforementioned need called Psychogenic need.
So, as much as tangible benefits of the brand are important for its consumers,
intangibles are the ones that matter especially in terms of strengthening their social
status and projecting a concrete image and there is where Gucci focuses its
attention.

b. How does this brand successfully gets into the “consideration set” of
consumers who want to satisfy that need?

In the modern marketplace, customers face such an enormous variety of products,

that when it comes to a purchase decision, they tend to reduce the number of
alternatives that they are going to consider on buying. This subset of brands termed
as a “consideration set” emerges as a natural consequence of the limited
information processing abilities consumers have and the need to decrease the cost
information search to feasible levels (simplify decision making). It also appears as a
result of their own personal screening criteria, that combines both a deliberate and
an unconscious process, and is the first step on habits and brand loyalty
development.

This personal process is based on both internal and external research. Therefore,
begins with a previous set, the “awareness set”, which excludes brands that the
customer doesn’t know about, and so includes all of the brands that would come to
the customer’s mind when it’s time to make a purchase decision. Without awareness
there is no brand value, as it indicates how strongly a brand is associated with a
category of products or services.

Then, after becoming aware of certain brands, we find a higher standard, which is
brand familiarity: it is a measure of the knowledge a customer has about the brand,

18

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

(those brands are more likely to be trusted) and it is a step closer in the process of
purchasing. However, within that group of familiar brands, there will only be some of
them that consumers will actively consider on buying. Those are the “realistic”
options, and they can be selected according to different factors such as brand
awareness, previous exposure or price.

These factors depend on both internal and external research. In fact, at first,
customers usually consider an initial set of brands based on perceptions and
exposure to recent touch points, and then, they start an active evaluation based on
reviews, word-of-mouth recommendations and in-store interactions (among others).

Now, we are going to analyze Gucci's way to enter into the consideration set of its
consumers:

1. First, we find brand awareness. Gucci raises awareness through advertising: ads
on TV, double-page spreads in magazines or sponsorship in tennis matches and golf
tournaments. In addition, the brand fosters positive word-of-mouth, since its name is
based on prestige.

So, basically, as Gucci meets the requirement to extend brand awareness,

consumers that want to purchase good quality and luxurious clothes will recognize
the brand as a possible future option.

2. The fact that people recognise the brand, doesn’t necessarily mean that it will be
part of their consideration set. Of course, the “people” we are talking about would be
the target market, and that is to say, the public to whom the products are aimed.

19

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

So, how does the brand successfully get into the “consideration set” of its target
market? It is mainly through brand-name imprinting and positioning:

BRAND- NAME IMPRINTING.

Customers usually exclude brands that have weak or unfavourable associations, and
lack of a unique benefit, so no brand wants its products to have a weak imprinting: to
be associated to a too broad category (too much characteristics so customers can’t
manage to associate the brand with any of them, this is, information overload) or
usage situation. Gucci is no exception: the Company wants to occupy a niche on the
mind of its consumers.

Thus, it develops a strong brand image: italian luxury brand of leather and brand
products.This image is the center of the positioning of the Company.

POSITIONING:

With this, we refer to the place that a product occupies in the mind of its consumers,
compared to its competitors.

Gucci has a very strong positioning strategy. This is due to the fact that in the luxury
brands market, one of the requirements to succeed among high-end clients is the
promotion of highly differentiated products in terms of price, quality and design. It is a
sector in which the prestige of the brand is very important, such that it generates a
great barrier to the entry of new competitors.

Therefore, if you, as a new company, do not have a brand name from the beginning,
it is difficult for the habitual consumers of these brands to decide to buy your
products. They have a certain lack of consumer innovativeness, as most of the
customers are quite traditional (in terms of their values), but once the brand is well
established in the market, they are loyal. So it is a market in which it is difficult to
enter, but once inside, it is quite likely that you will get benefits.

20

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Regarding the factors that are determined by Gucci’s positioning, we will analyze
them briefly:

High quality products:

They are manufactured, made with good raw materials(i.e., pima cotton instead of
regular one). But, the quality of the materials will only be noticeable for those who
have certain experience on purchasing good quality products. The brand products
last longer, feel and look better.

Advertising:

As we have mentioned before, ads are

the first step on brand awareness, and
highly reflect positioning. As they are
intended to build up the external
perception of the brand, the type of
ads that the company broadcasts are
focused on the tastes and activities
that only high-end clients usually do on a regular basis. For example, Gucci is a
sponsor in elite sports such as tennis or golf.

Price

Customers are paying for quality and prestige, as price acts as a status symbol, it
infers quality (in fact, customers are paying for the cost of perceiving Gucci as a
luxury brand). It is difficult for the average person to buy clothes from the brand on
the daily, so even though customers will be paying more than the clothes are
effectively worth, it is compensated for the acquired prestige.

This is key to Gucci’s success, they don’t want their products to be too affordable,
even though they could be. It’s strategy is based on selling a few products at a
higher price, instead of a lot of products at a lower price, so they end up gaining a

21

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

similar amount of money (i.e, selling a thousand skirts at 90€ will provide the brand
almost the same amount as 300 at 290€). Exclusivity is the core of Gucci’s
positioning.

Logo:

This is linked to brand imprinting, as the logo is the first thing

that potential customers connect with the brand, and it gives
them a first impression of the Company. With regards to
Gucci, it has an easily recognizable logo, which links with the
image of the Company: simple but elegant.

Packaging:

Correct packaging can

convey many things of the
brand: from the
characteristics of the
product to the values of the
Company.

Gucci knows it, and puts it into practice with colors and in general, a package that
transmits simplicity, safety and purity. Furthermore, as environmental awareness is
increasing, the brand has begun to use 100% recyclable materials in the packaging
of its products.

Salespersons:

It is very important for a company that its salespeople communicate the style of the
company. And Gucci's salespeople are completely in tune with this image, they even
share some physical characteristics such as being tall, beautiful or having modern
haircuts.

22

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Influencers:

Nowadays, it is very important for companies to use influencer marketing, which is

focused on targeting certain people that have power to influence potential buyers.
These are named influencers, and marketing activities are oriented around them.

At the moment, Gucci is doing it right, by being considered as the top brand in study
of social media influencers, it is the top brand in terms of social media mentions,
likes or reads by "key opinion leaders"

These are some examples of Gucci’s most important influencers:

23

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

c. How does the brand successfully close the deal?

As we have mentioned in previous answers, Gucci manages to combine good

quality, fashion and luxury, all in one. These are key elements to its positioning and
hence, reflect the brand’s image.

We have already explained how Gucci manages to get in the consideration set of its
consumers, but how does it stay in the at the time of purchase?

After building up the initial consideration set and have an active evaluation of it, we
face the moment of purchase, which can be influenced by various factors such as
sampling, merchandising, sales staff, placement…

Some of these factors have already been mentioned on previous phases (regarding
the consideration set), but it is due to the fact that they can be crucial on different
steps of the process.

One of the questions we asked in the survey was focused on the determining factors
when buying Gucci products, and we came to the conclusion that there were 3
factors that were determining.

1. Of course, as with any other brand, the design, style and quality of the product is
essential at the time of purchase.

2. Merchandising. There are several aspects of its merchandising that influence the
purchase of the brand's products. For example, the packaging (which has been
already mentioned), and the store decoration were two factors that were specially
mentioned by our respondents.

➢ Packaging. It can be a factor that influences both at the time of consideration

set as well as moment of purchase and postpurchase.
➢ Store decoration. Several of our respondents have admitted that the fact that
their stores are spacious and elegant, influences the time of purchase. They
admit that the feeling of luxury that conveys the design of their stores is
crucial, because it transmits perfectly the image of the brand, as Gucci takes
care of every detail: from the armchairs to the hangers.

24

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

3. Sales staff. The majority of the respondents answered that the attention received
by the store staff is another crucial factor for them. Several commented that the
personalized and kind attention they receive from sales staff is very influential, as
they give them what they ask for, and they look for products according to their
specifications, they can even show them things that they could like just by looking at
their look and personality.

4. Digital platform. Most of the respondents also admitted that nowadays it is

imperative (not only for Gucci, if not in regards to the panorama of brands in the
world) to have a good digital platform. This is because many customers prefer to
browse these platforms first, before going personally to the store.

The Gucci digital platform presents a good design and is constantly updated.

5. Of course, influencers are crucial, as we have already mentioned. Many admit that
the final impulse to buy a garment is given by the fact that these people wear it.

APPENDIX

Interviews:After performing our analysis on who the Gucci customer was,we

decided to do some interviews to people who fitted with the profile that we got.

25

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

1. We interviewed a student’s father who in that moment had a Gucci phone

case. So we asked if we could ask him some question and he agreed to help
us in whatever he could.He’s 52 years old and he lives in Italy, he was visiting
his daughter who’s currently studying here. From his interview what we mainly
got was that:
a. First, the phone case wasn’t the only thing that he had from Gucci.
b. He bought from Gucci, cause first he had the money to and the prices
seem affordable and reasonable to him and because he also enjoyed
some shopping time with his daughter, who choose some of his outfits.
He also added, that they seem high quality and as he didn’t like to
spend much time shopping, he could bought whatever he liked from
there and did not have to return in a long time.
c. He also said that he liked the treatment received in the shop as well as
the fact that some of the employees in there already know him, so it
was very comfortable going there.
d. And finally, what he said was that his friends and people with whom he
had contact wore and were dressed with that kind of brands, the luxury
ones.

2. The second person we interviewed was a girl who was in her 30’s and who
had been living in Dublin for a while. She worked as a lawyer. What we got
from her interview was:
a. She only had one thing from Gucci and it was her purse. For her, the
prices were expensive and she said that having one or two things was
okay, but she couldn’t afford wearing Gucci pieces everyday. So yes,
she told us that in order to buy her purse she had been saving for
some time.
b. She said that having a Gucci piece was one of her dreams when she
was a teenager.She saw the brand in red carpets,magazines and so
she always dreamed to have one of their pieces.She wanted to show
the world she had become a successful and independent women (as
the one she saw on the places previously named) and so she was able
to buy herself whatever she wanted to without a men’s help.
c. She also added that it was a trendy brand, which at the same time as

26

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

modern it also kept it’s traditional style seen all over the years.

3. The third person we interview was a student from the UCD who is here doing
a master. We decided to interview her because she lives with a friend and
every time we went to her flat we saw her with branded clothing and Gucci
and Louis Vuitton handbags. What we got from her interview was:
a. She liked Gucci’s products but she admitted they weren’t affordable for
every pocket, especially for university students without a paid work.
b. She told as that almost all the things she had from well known brands
were presents of her family and friends as they know how much she
likes them.
c. She also revealed that some of her pursues were of imitation. She
bought them in a trip she made to China with her parents two years
ago, but no one has noticed they are fake never.

4. The fourth person we interview was the flatmate of another friend who was
from Kuwait, an Arab country from the middle east. We decided to interview
her in order to see how opinions change across continents. What we got from
her interview was:
a. She is from a well known family of Kuwait which means that she
disposes of a high income.
b. Where she lives it is normal going shopping to places such as Gucci
and Hermes.
c. As she doesn’t have any economical problem her parents don’t mind
buying her things from the most expensive shops as they can afford it.

5. The fifth person we have interviewed is the mother of a team’s member who
was from Spain. We decided to interview her because is a potential customer of
the brand. The conclusions that we got are:
a. She wants to wear luxury brands, and she has a big market, so she is
not only focus in Gucci, but also she will compare between differents
products and she will buy the product which adapt better to her needs.
b. She knows that is not possible to buy always Gucci’s or competitors
products, because they are expensive.

27

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

6. The sixth person we have interviewed is a boy that we bump in the street. We
interviewed him because we saw him with a Gucci’s suitcase. What we got from the
interview was:
a. He has an imitation suitcase from Gucci, and he told us that he has
that suitcase because he wants to imite his idols’ lifestyle.
b. He commented to us that is usual in his friend’s group to have imitation
products of luxury brands because they have not got money so they
can not buy it, despite they want to have one of it. In the future, he told
us that he will buy one of it.

7. The seventh person that we interviewed is the house manager of the

residence of two of us. We decided to interview him because he uses to wear
Gucci’s and Versace’s ties. What we got from the interview was:
a. He wants to dress elegant but not like a business man. He said that
these brands give him freedom to get dressed feeling his habits and
pleasures.
b. When we asked what brand did he prefer, he told us that some days he
prefers one than others and vice versa. However, when we asked him
about his preferences about Gucci, he told us that he’s feeling younger
when he wears it.

8. The eight person that we interviewed was a friend of us who belongs to the
upper-class. We decide to interview her because she has Gucci’s, Channel’s and
Moschino’s t-shirts for going to the university. What we got from the interview was:
a. She wears this brands because she can afford it due to her parents’ incomes.
b. She prefers to wear Gucci because is more expensive than the rest of the
brands and she feels better than wearing clothes from other brands.
c. She saw Rihanna and Hailey Baldwin wearing the same clothes that she is
dressing with; she bought it because she felt realised thinking that her
favourite artist wears the same cloth style.

28

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

9. The ninth person we interviewed is an American 19-year-old girl, who is

studying at Trinity College during the first semester. We aimed to ask her some
questions because she was wearing a Gucci coat along with clothes from stores like
Prada or Loewe. From her interview what we mainly got is that:

a. She is a regular consumer of Gucci, and according to her, this is due to the
tastes instilled by her family since she was little.
b. She considers that the prices of the brand are in line with the quality of the
product and the service provided by its dependents. Also, the good treatment
received is as fundamental to her as the design and quality of its products,
because if there were no such good treatment, she would not see any
inconvenient in changing the brand.
c. Although she always buys through the physical store, she likes to have a
previous idea of what she is going to find.. Thus, digital platform is crucial for
her.

10. The tenth person we talk to is a french 23-year-old girlfriend of one of the
group's members. What we infer from your interview was that:

a. She does not usually buy Gucci products, although she does have some.
b. She considers that its prices are too high for what they have to offer, and
admits that if she buys them is because she really likes the design of some of
the products (especially the handbags). She loves fashion, and doesn’t follow
a special brand, in fact, she doesn’t mind losing the feeling of exclusivity by
buying brands with less popularity if she likes the product.

29

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

30

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

GRAPHS EXPLANATION

As seeing in the charts, we can say that people most perceive the brand as
previously explained in the firsts sections.Regarding the main reasons why the
people buys Gucci , that the majority of them are able to buy whatever they want and
so there’s a high percentage from people who see the brand affordable.People, also
buys Gucci cause they’ve seen it in red carpets, have high expectations about the
brand and so it’s perceived as high quality and a high percentage also have imitation
which in the ends recreates the sensation they want to feel.
Regarding the overall findings, we can say they perceive the brand as
expensive,trendy and high quality.And we also found that they’re not very loyal to
that brand, either for their prices or because it’s competitors.

31

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Bibliography

1. Successstory.com. (2017). Gucci Story - Profile, CEO, Founder, History |

Famous Vouge Brands | Success Story. [online] Available at:
https://successstory.com/companies/gucci [Accessed 18 Nov. 2017].
2. Solomon, M.R. (2018) Consumer Behavior Buying, Having, and Being.
Pearson
3. Gucci Case Analysis - Case Study. 2017. Gucci Case Analysis - Case Study.
[ONLINE] Available at: https://www.otherpapers.com/Business/Gucci-Case-
Analysis/28304.html. [Accessed 12 November 2017].
4. Targeting, C. (2017). Consumer Targeting. [online] Guccippr.blogspot.ie.
Available at: http://guccippr.blogspot.ie/p/consumer-targeting.html [Accessed
22 Nov. 2017].
5. UKEssays. (2017). Gucci Market Segmentation - An Analysis. [online]
Available at: https://www.ukessays.com/essays/marketing/how-segments-
can-be-defined-targeted-and-maintained-marketing-essay.php [Accessed 22
Nov. 2017].
6. Brage.bibsys.no. (2017). Cite a Website - Cite This For Me. [online] Available
at:
https://brage.bibsys.no/xmlui/bitstream/handle/11250/169929/knag2012.pdf?
sequence=1&isAllowed=y [Accessed 22 Nov. 2017].
7. www.cram.com. 2017. No page title. [ONLINE] Available at:
https://www.cram.com/essay/Gucci-Strategic-Analysis/F3CCS2M35J.
[Accessed 12 November 2017].
8. Google Books. 2017. Innovation in Luxury Fashion Family Business:
Processes and Products ... - E. Giacosa - Google Books. [ONLINE] Available
at: https://books.google.ie/books?
id=5dnSBQAAQBAJ&pg=PT29&lpg=PT29&dq=gucci+customer+thresholds&s
ource=bl&ots=LaxI1xAQF5&sig=VQFojtOdzjcwKArP2A6MUn7GOWM&hl=en
&sa=X&ved=0ahUKEwjF7OzHpLLXAhVENhoKHe2iCg0Q6AEISTAH#v=onep
age&q=gucci%20customer%20thresholds&f=false. [Accessed 12 November
2017].
9. Vogue English. 2017. Gucci | Vogue Paris. [ONLINE] Available at:

32

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

http://en.vogue.fr/vogue-list/thevoguelist/gucci-/976. [Accessed 12 November

2017].
10. The Guardian. 2017. The story of Gucci | Fashion | The Guardian. [ONLINE]
Available at: https://www.theguardian.com/fashion/2011/sep/26/story-of-gucci.
[Accessed 12 November 2017].
11. Bhasin, H. (2017). SWOT analysis of Gucci - Gucci SWOT. [online]
Marketing91. Available at: https://www.marketing91.com/swot-gucci/
[Accessed 18 Nov. 2017].
12. Maalroy Consulting Group (2010). Gucci Coroporate Strategy. Maalroy.com.
Available at: http://maalroy.com/publications/64-gucci-corporate-strategy
[Accessed 17 Nov. 2017]
13. Financial Times (2014). Gucci turns to Asia for bulk of investment. Ft.com.
Available at: https://www.ft.com/content/2b56c16e-2886-11df-a0b1-
00144feabdc0 [Accessed 21 Nov. 2017]
14. Fishbein, M., & Ajzen, I. (1972). Attitudes and opinions. Annual review of
psychology, 23(1), 487-544.
15. Adamska, Magda (2017), “The positioning of the three most valuable luxury
fashion brands.
16. Adams, D. (2017). Awareness vs. Familiarity - Merton Adams. [online] Merton
Adams. Available at: http://www.mertonadams.com/2012/03/awareness-vs-
familiarity/ [Accessed 22 Nov. 2017].
17. En.wikipedia.org. (2017). Gucci. [online] Available at: https://en.wikipedia.org/
wiki/Gucci [Accessed 22 Nov. 2017].
18. Anon, (2017). [online] Available at: https://www.quora.com/Why-can-Gucci-
and-top-luxury-brands-sell-a-shirt-for-so-much-Is-it-the-quality-How-are-Polo-
and-Gucci-shirts-different-and-how-do-they-sell-higher [Accessed 22 Nov.
2017].
19. Profile, A. (2017). La importancia de tener un buen logotipo | twago.es blog.
[online] Twago.es. Available at: https://www.twago.es/blog/la-importancia-de-
tener-un-buen-logotipo/ [Accessed 12 Nov. 2017].
20. Reyhle, N. (2017). 4 Reasons Why Product Packaging Is Important. [online]
Retail Minded. Available at: https://retailminded.com/4-reasons-why-product-
packaging-is-important/ [Accessed 11 Nov. 2017].
21. Ruggeri, A., Packaging, 4., Mueller, V., Mueller, V. and LAUNCH!, T. (2017).

33

Downloaded by Redo Mamo (redoma1773@gmail.com)

 lOMoARcPSD|7565981

GUCCI

Did you know that Gucci’s packaging is 100% recyclable? - Swedbrand

Group. [online] Swedbrand Group. Available at: http://www.swedbrand-
group.com/blog/did-you-know-that-guccis-packaging-is-100-recyclable
[Accessed 22 Nov. 2017].
22. Google Books. (2017). Artifacts and Organizations. [online] Available at:
https://books.google.ie/books?id=XRTEc9-
JwU0C&pg=PA211&lpg=PA211&dq=gucci+salesperson+characteristics&sour
ce=bl&ots=hs5F48knW_&sig=SWddMRmFO0yf6KcA63CdD_-
7v4Q&hl=en&sa=X&ved=0ahUKEwjYwcCm8L3XAhXrAMAKHaz6D_UQ6AEI
JjAA#v=onepage&q=gucci%20salesperson%20characteristics&f=false
[Accessed 8 Nov. 2017].
23. Zaczkiewicz, A. and Zaczkiewicz, A. (2017). Gucci Named Top Brand in
Study of Social Media Influencers. [online] WWD. Available at:
http://wwd.com/fashion-news/designer-luxury/gucci-top-social-media-brand-
10519420/ [Accessed 15 Nov. 2017].
24. Keyhole.co. (2017). Social Media Influencers for Gucci, #Gucci - Keyhole.
[online] Available at: http://keyhole.co/influencers/3wz39M/Gucci [Accessed
14 Nov. 2017].

34

Downloaded by Redo Mamo (redoma1773@gmail.com)