To maximum sales and reach out to larger audiences, it is very essential for business to be “visible “to potential customers. The placement of product, distribution channels and logistics plays an important role in making your product visible in target market. Because of intense competition and wide range of products, it is very important for businesses to make sure that right product arrive at the right place when and where they are wanted. If business will not select effective placement and distribution strategies, rest of efforts would be useless.
When we talk about luxury brand of fashion and leather goods only Italian brand GUCCI comes into our mind. Gucci was founded by Guccio Gucci in 1921 and it’s an Italian brand owned by French company Kering. In this modern era, where everyone values lifestyle, fashion and attitude. Gucci considered as a reputed, authentic and successful fashion brand which gives them sense of personal feeling regarding their values. It designs, manufactures and distribute highly desirable products including shoes, clothes, leather goods, timepieces, fine jewellery and sunglasses etc (Kering 2016).
Leading fashion companies such as GUCCI and Prada renew their 80% of their product range each season. Time and selling period in making and launching in Fashion industry is quite short. Only those fashion companies surviving whose supply chain is quite responsive in coping up with abrupt marketing changes. Agile supply chain considers as a competitive advantage in fashion industry.GUCCI supply network is very impressive in terms of quick response. They comprise of more than 600 firms with 70 first tiers suppliers and 500-600 second tiers suppliers. In order to maintain quality and cooperation, Gucci also provide fund to their partner’s suppliers for latest machinery and technology. They selected those suppliers who qualified their requirements (Stone & McCall 2006).
GUCCI relies on exclusive distribution network so that they can control over the service level. In exclusive distribution, sellers only carry producer products. Company tries to market their product through online and DOS directly operated stores which accounts for 70%revenue of company (Erthruvu 2016).
Gucci adopted a strategy of direct control over their stores. Before the control of De sole (CEO) and tom ford (Creative director), Gucci was everywhere. Company had less control on them then they focused on strengthening the network of directly operated stores. They invested money in renovating their stores to attract the young customer and cope up with modern era (itm 2011). They confined their products to company outlets because they think these stores are essential for displaying product and brand image to consumer. By controlling on entire distribution channel actually they are controlling the image of how consumer perceive the brand.
Source : GUCCI.com
The stores are located on expensive high street locations that attracts and influence consumer. Interior décor is well-groomed and displaying products on windows portrays the real meaning of brand in terms of lifestyle and intrigue fashion. All salespeople are smartly dressed in black even security guard dressed up in a way to show people the real sense of fashion when you dressed up in GUCCI products.
Source : GUCCI .com
To encourage purchase and engage consumer, GUCCI use social media to showcase their products. Gucci was called Fashion genius in terms of their development in online capabilities. They place their product effectively in digital media with the aim to provide their customers a broad selection of product both in physical and online stores. They are also considered in few high-end retailers who provide their customer with in-store inventory check for particular item. According to one survey, it was ranked no 1 in digital competence (Bulman 2010).
One of the inspirational moves from Gucci Brand in digital media is make of site “The agenda “It breaks down its collection pieces, sharing inspirational and thought processes behind them. By doing this, it increases their social media buzz and now consumer say they must have and want GUCCI items. Gucci using pull strategies (sales, discounts and loyalty programs) in their distribution channel to evoke purchase among their target markets.Because of their product placement,GUCCI is considered intrigue fashion brand.
Source : GUCCI.com
Due to globalization, advancement in technologies and competition, it’s very important for companies to develop flexibility in their distribution channels. If product available to customer at right time at right place, it would be effective.Now placement is considered very important element in businesses.
Muhammad Haider Tufail Paracha
215221411
References
Erthruvu, A 2016, STRATEGIC MARKETING – A CASE STUDY OF GUCCI GROUP MARKETING STRATEGIES, Scribd, retrieved 15 May 2016, <https://www.scribd.com/doc/119183335/STRATEGIC-MARKETING-A-CASE-STUDY-OF-GUCCI-GROUP-MARKETING-STRATEGIES>.
T1 2016 MPK732 Marketing Management (Cluster B) 