COMMERCE PROJECT

II TERM
SAKSHI SUBHASH YADAV
XII LILY
 Compare marketing strategies adopted by
two different companies of the same industry.

(With reference to Gucci and Versace)

What Is a Marketing Strategy?
A marketing strategy refers to a business's overall game plan for reaching
prospective consumers and turning them into customers of their products or
services. A marketing strategy contains the company’s value proposition, key
brand messaging, data on target customer demographics, and other high-level
elements. A thorough marketing strategy covers "the four Ps" of
marketing—product, price, place, and promotion.
 MARKETING MIX
A marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. The term often refers
to a common classification that began as the four Ps: product, price, placement, and promotion. Effective marketing
touches on a broad range of areas as opposed to fixating on one message.

The components of marketing mix are: Price: refers to the value that is put for a product. It depends on costs of
production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors.

Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise
even the best work on the other elements of the marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it
is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the
mantra of a successful retail business is 'location, location, location'.Promotion: this refers to all the activities
undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth,
press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.
 GUCCI
The Italian fashion and accessories brand was established in 1921 and is known for its offerings
in the luxury segment. It is the part of Kering group which is a world leader in apparel and
accessories with its portfolio of luxury, sports and lifestyle brands.Its offerings are a symbol of
Italian craftsmanship and are known for its quality, modern outlook and attention to detail.

MARKETING STRATEGY

Gucci uses a mix of demographic and psychographic segmentation strategies in order to identify the different
segmentation variables and come out with offerings which are way ahead of its time in the fashion industry.

Since it targets a very limited segment of customers, therefore, it uses selective targeting strategy.

It has always positioned its products as a symbol of quality and pinnacle of Italian craftsmanship with
trendy fashionable apparel & accessories. It uses value-based positioning strategies to position itself as a
luxurious brand.
 Changing lifestyle, low fad life cycle, climatic conditions, sociocultural
differences, migration of people, the rise of cosmopolitan culture and evolution of
digital media even in the underdeveloped nations are the factors affecting the
companies in the luxury fashion apparel & accessories industry. Companies in
this industry are more focused on the fashionable products and promotions
through different mediums.
It uses various channels to make the products available to the end customers. It
distributes its products through company-owned stores, e-commerce sites,
wholesalers, distributors and retailers. As of December 2016, it has 520
company-owned stores globally which is helping the company in generating 34%
revenue from Asia Pacific and 21 % revenue from Western Europe.
 MARKETING MIX OF GUCCI
PRODUCT MIX
Gucci has been synonymous with excellent services while supplying qualitative products. The features and
image of all its products is unique and the quality of these products is one of the main reasons for such high
sales. The designs are innovative and the precise use of technology has made the finished products very
attractive and sophisticated. The product portfolio of the company includes fashion wear for men and women
that are elegant, fashionable and classy.

PRICE MIX
Gucci has mostly gone with a policy of premium pricing because its product quality is very superior. The brand name
is associated with an image of high quality and the prestigious pricing makes the product a status symbol. The
customers feel happy and distinguished to be associated with such a premium brand.

Even then the company has tried to offer some discounts on selected items at selected times, especially on internet
purchases to garner more sales and to keep their loyal customers happy. In order to increase its revenues the
company has followed the policy of diversifying the various products and brands and under this, they have tried to
keep a reasonable pricing policy as well as premium policy of prices.
PLACE MIX
Brand Gucci tendstocater to the high –end market and for this purpose; they
have set up outlets that provide relaxing environment that create a responsive
attachment between the customer and the brand. The services provided by the
employees are outstanding and their channel of distribution is very selective
making the customers feel special. All its stores are located in expensive and high
profile street locations that are exclusive and distinguished. Although seventy
percent of the sales are conducted in these outlets, the company also makes huge sales
through its online marketing. Gucci has an official website that handles all its
internet sales through highly trained officials. The company has also various tie-ups
for some of its branded products with high profile department stores in different
worldwide upmarket locations.
 PROMOTION MIX
In order to create a special and separate entity for itself the company went for high
investments in the advertising area. They have also adopted marketing strategies that are
innovative to tackle the present dynamic environment. In order to create an appeal to the
newer generation Gucci has started the concept of experimental marketing. For its loyal
customers that have been associated with the company always it has also kept on the
traditional marketing approach to retain the affinity with them.

Gucci has a long list of affluent celebrities and international clients associated with it since its
establishment. The legendary clients include Audrey H epburn, Grace Kelly and Jackie
Kennedy.
 VERSACE
Gianni Versace took fashion to some another level starting from arts and
theatre to the world of rock and roll. After the death of Gianni Versace,
Donatella Versace, his younger sister took over Versace as creative director
and took Versace to the heights of fame.Versace is an Italian fashion house
founded in 1978 by Gianni Versace. Today it’s one of the world’s leading luxury
brands. Like any brand, it uses a marketing strategy to stay connected with
Versace’s target audience. In this post, we will mention all the details of its
strategic plan.
MARKETING MIX OF VERSACE
PRODUCT MIX
Versace is a fashion brand dealing in luxurious items and offering a perfect blend of
intricate, breathtaking and exclusive products to its customers. The company ensures
that original style and designs are offered so as to maintain its exclusive brand image.
Its collection includes Versace Collection, Versace Jeans and Versus Versace.
Product portfolio of Versace has items for male, female and children.Its kitty includes-
H ome Collection includes products for living and dining area and bath and bed items like

● Frames
● Ashtrays
● Blankets and Throws
● Vases
● Cushions
Women Men
● Beachwear Fragrances
● Active wear Eye-Wear
● Coats and jackets Watches
● Skirts Pouches
● leggings Card H older
● Jeans and trousers Key Rings
● Wallets

Versace also makes apparels and accessories for children of both genders from ages 6
months to 36 months and 4 years to 14 years.
PLACE MIX
In order to maintain its commercial presence successfully, Versace
manages its sales activities via its retail, distribution and sales
departments. The company has several tie-ups that help it in selling and
marketing its products via its outlets. Versace has an official website that
offers distribution and purchasing facilities in several countries even where
the brand does not have an outlet. This has helped in making a huge
difference in its sales figures as they have grown considerably with the
opening of its online store.
PRICE MIX
At the end of the financial year 2016, Versace posted its revenues at Euro 669 million.

Versace has adopted a premium pricing strategy for its products that tend to tilt on the lofty side.
As its customers belong to the section of society who is more conscious of brand value than monetary
matters the brand is able to maintain its very high pricing policy. It is an honour to wear a Versace is
the conception in the fashion industry and hence the customers are eager to buy and wear apparels
from its collections.

Versace also designs customized apparels that are simply breathtaking and unique. It charges extra
for such items because of its exclusive nature. The company has adopted high premium pricing for such
products. All its customers are ready to pay the prices set up by the brand and hence the company has
been able to hold its reputation in the consumer market with success.
PROMOTION MIX
Versace is a globally recognised brand with the highest visibility amongst its elite customers. It has
paid minute attention on all its promotional activities to maintain its high brand visibility. Its logo of
Medusa, a mythological figure from Greece, is catchy and has a direct and positive impact on the
customers. As part of its awareness and fight against animal cruelty, the brand announced its
willingness to stop usage of fur in all its collections.
As Versace is a brand especially for celebrities it has been in limelight both directly and indirectly
via these famous personalities. The brand is worn and endorsed by some high-profile celebrities to
project its image in the fashion industry. Dresses have been designed for Elizabeth Hurley, Michael
Jackson, Elton John, Princess Caroline of Monaco and Princess of Wales.

Versace has entered in several sponsorship deals and one such was with Lamborghini to produce
Lamborghini Murcielago LP640 VERSACE in the year 2006. The brand takes part in several
fashion shows as part of its marketing strategy.
 CONCLUSION
Marketing mix is a set of actions a business takes to build and market its
product or service to its customers.It helps to make sure that you are able to
offer your customers the right product, at the right time and at the right place
for the right price.

Gucci and Versace are two big names among the most influential and renowned
luxury brands in the world. Both these companies originated from Italy and
throughout the years both of them have achieved power and popularity in the
fashion industry. Despite being in the same industry, Gucci and Versace are not
similar in their marketing strategies and overall actions.
Analyzing both Gucci and Versace showed us how different and similar can two
brands from the same industry be in their strategies and characteristics.
THANK YOU