Gucci target market 2019

Gucci Enviromental Analysis, consumer segmentation and market research

Executive Summary
The Research in this report will provide an insightful analysis in the current state of Gucci’s marketing environmental. As Gucci is a leading brand in the industry it is highly unlikely that other brand will prove to a be a threat to Gucci’s establishment in the market place. Environmentally friendly products are also playing a huge role in the market place are playing a significant role in the consumer decision making process. In addition, our consumer segment analysis shows that many people in the young bracket are buying Gucci products and driving the market. Furthermore, the consumer segmentation also showing that many consumers are willing to pay more money to purchase Gucci products as there is an increase in income in certain households. Ultimately, Gucci could use the research that we have done in order to improve their business and our recommendations can certainly help them do that.

It is also recommended that Gucci should focus on gaining more consumers in different age brackets in order to improve their business and brand. Gucci should also try creating backpacks made out of environmentally friendly products. Gucci should try and focus on gain consumers in the low consumer segment in order to widespread their business across different age brackets. More research can be done by Gucci in order to improve their business and take on different strategies to enhance their business.

Table of Contents Executive Summary 2 Introduction 3 Section 1 The marketplace and influencing factors 4 Section 2 Consumer Segmentation 12 Section 3 Assess the attractiveness of each cosnumer segment 13 Section 4 Recommendations for additional research 13 Conclusion 13 References 13 Reccomendations 15

Introduction
The Purpose of this reports is to conduct an Environmental analysis, Consumer segmentation and Market research on the Gucci Print Leather Backpack. This report illustrates the types of aspects in the current market in which the Gucci Print Leather backpack will sell, the environment, the consumer segments, and its attractiveness will be shown. As a group of marketing consultants, we have been approached by Gucci to create this report. Furthermore, recommendations are also provided in this report. The limitations of the report were the timeframe, as we could not get primary data and all our data is from secondary sources. The information will be presented in tables and data sources. The availability of the information was a challenge as most of the data was not related to our company. All the information presented is from secondary sources and was gathered from research.

Section 1 The marketplace and influencing factors
The Micro-Environment

The Gucci brand is an Italian based luxury company which provides a wide range of products such as Men’s and Woman’s clothes, shoes, backpacks, wallets, purses and many other accessories (Gucci, 2016). Currently Gucci offers many different types of backpacks as well as a huge number of backpacks for both Men and woman.

The tree diagram illustrates the scope of the industry in which Gucci operates in:

As shown by the tree diagram Gucci belongs to the fashion industry as it is defined by the style of clothing and accessories worn by a group of people or individuals (Steele,2019).

The Fashion industry is a multibillion-dollar industry which is dedicated to the marketing and selling of clothes (Steele,2019). The fashion industry consists of four levels which one is the production of raw materials, secondly the production of fashion industry, thirdly retail sales and various forms of advertising and promotion (Steele,2019). The fashion industry as a bright portrait which a worldwide revenue expected to rise from $481.2 billion in 2018 to $712.9 billion by 2022 (Orendorff 2019). There are many factors that are driving this growth which include expanding their global markets. Furthermore, increase in technological advances such online access and smartphones. Many middle classes having disposable incomes which allows them to make such purchases. The Fashion consumers will have more buying power, an estimate has been made that customer growth is projected to grow from 1.2 billion by 2020, furthermore majority of the customers are within the 16-24 and 25-34 age groups (Orendorff 2019). However, there are many threats to the fashion which include things such as the cost of raw materials. Cotton, silk, wool and leather are things which all need to be farmed. A NASA lead study shows that many of the worlds freshwater sources are being drained faster than they can be replenished (Marshall 2017). Additionally, rising labor costs is something that will have an effect on the industry. If the labor force is changed to a different area or country, this again will have a knock-on effect raising the prices across the globe (Marshall 2017).

In terms of our product the Gucci Print leather backpack, the statistics show that bags are still growing at aa stronger rate which will see a double-digit growth- 15% in 2018 which will dip into the single digits by 2022: 8.7% (Orendorff 2019). The projection makes it the strongest healthiest segment of ecommerce fashion, despite the numbers being the smallest. (Orendorff 2019). The features that Gucci’s competitors in common have is that most of the products offer the same range of designs and backpacks. The backpacks are all prices in the same range showing their true stylish nature which adds to an individual’s status.

Ultimately, it can be seen that many competitor companies in the fashion industry are owned by other brands which can be a subsidiary, business unit and division of a parent company.

Competitor Analysis

Louis Vuitton is the third most popular luxury brand and offers products that is similar to Gucci, however Gucci is ranked as the most popular luxury brand. Louis Vuitton is owned by LVHM which own other brands such as Givenchy, Marc Jacobs and Fendi. Louis Vuitton is a member of the Better cotton initiative, which aims to transform the cotton production by reducing it environmental impact (Gucci 2019).

Versace, just like Gucci, produces similar products which all have the same price range as that of Gucci and Louis Vuitton. Versace is owned by Michael Kors which produce backpack themselves.