Renowned for the excellent quality and luxurious style of the items sold, Gucci perfume stores are popular all over the world. Solid and innovative approach to the marketing and branding procedures preconditions high rate annual revenues of the company in the fragrance industry all over the world. In the following assessment paper, the current strategy and situation in Gucci perfume stores will be observed in detailed.
Current Gucci Perfume Stores Strategy
Gucci perfume stores philosophy is reflected in the following quotation, âquality is remembered long after the price is forgottenâ (qtd. In Moorcroft 2004). In connection with the above-mentioned statement, Gucci perfume stores strategy is based on the idea that quality is crucial in giving a customer an idea of brand while price is not the most important variable. Thus, the company targets a category of financially secure and ambitious customers ready to invest in their image and knowing the price of luxury. Gucci targeted customer category is women between twenty and thirty belonging to the get set lifestyle or wishing to demonstrate their association with this category (Arrigo 2011).
Gucci perfume stores management bases the network strategy on the concept of distinctiveness and exclusivity among the target category of buyers. To promote company elitism, the leaders have designed an image of Gucci customer characterised by vibrant appearance, sexual appeal, and ambitious stance (Fig. 1). The image is widely represented in the media and shopping malls through massive advertising companies, innovative approach to marketing, and the whole experience of shopping with Gucci perfume stores. The aura of prestige communicated through the Gucci image gives added customer value to the products sold in Gucci perfume stores since consumers are ready to invest additional funds into associating themselves with the picture of success, sexuality, and exclusivity the brand is depicting (Arrigo 2011).
Gucci perfume stores interior design (Fig. 2, Fig. 3) is an essential attribute of Gucci image according to the company leaders (Arrigo 2011). For that reason, every single detail of store design is taken into account by the top management. The company strategy includes the following essential components of Gucci perfume stores decoration and operation worldwide: (1) location on expensive high streets or at the best shopping malls in a city; (2) provocative decoration of the window displays; (3) visually appealing interior with a free flow layout; and (4) comfortable consumer browsing of collection on exhibit. Apart from rich classic decor, the company concept includes standardised requirements to the store employees. All of them should meet the highest requirements to their appearance, they should be smartly dressed in clothing of dark colours, and their outfit is to feature high quality makeup. To conclude customer experience, distinctive packaging is utilized. All Gucci perfume stores are directly operated by the world headquarters in order to ensure strict control of the company image implementation.
Current Situation
Current business situation for Gucci perfume stores is favourable which can be seen from the following figures. According to Global Fragrances and Perfumes Industry (2013), Gucci perfume stores annual revenue in 2012 was $1552.6 million in the United States and internationally it exceeded $4464.4 million. In 2013, the U.S. market demonstrated 18% growth for the company and the international market maintained the rates of the previous year (Global Fragrances and Perfumes Industry 2013). The increase at the American market is traditionally observed in the womenâs sector. Nonetheless, the company was surprised to register the growth at the menâs sector that year (Men’s fragrance sales soar in the UK and US 2013).
The key to success of Gucci perfume stores is exclusivity along with distinctiveness. The company works with the best designers, the most innovative developers, and the most ambitious and risky marketers. To illustrate, Gucci advertising company of âOpiumâ perfume became one of the most controversial in Britain due to the use of a naked image of Sophie Dahl. Despite the uproar in society, the perfume company was a great success and won a number of prestigious awards in European advertising competitions (Arrigo 2011). Another example of Gucci advertising strategy is the advertisement in Vogue magazine with an image of a naked lady having the letter âGâ depicted on her private parts. The use of this audacious advertising solution helped Gucci boost customer awareness of the brand as well as ensure wide media coverage. Another winning strategy the company is utilizing is involvement of top stars from popular industry and designer community.
References
Arrigo, E. 2011, “Fashion, Luxury and Design: Store Brand Management and Global Cities Identity”, Symphonya, no. 1, pp. 55-67.
âGlobal Fragrances and Perfumes Industryâ, 2013, PR Newswire, viewed 02 May 2014, via ProQuest Central Academic Database.
âMen’s fragrance sales soar in the UK and USâ, 2013, Telegraph, viewed 02 May 2014, via ProQuest Central Academic Database.
Moorcroft, R. 2004, “Quality remembered when price forgotten”, The British Journal of Administrative Management, no. 1, pp. 4.