International Marketing Assignment
Gucci was founded in Florence, Italy since the year 1921 (90 years ago) and is one of the world’s leading luxury fashion brands. Its Target Markets include women, men and children 0 to 8 years of age and their products are positioned to be high quality goods which are sold at premium prices based on the type of good that is being sold to the Target Market. The Gucci Brand operates in the following areas – Africa and the Middle East (11 countries), Asia (14 countries), Australia (2 countries), Central America and the Caribbean (3 countries), Europe (22 countries), North America (3 countries) and South America (1 country). This represents a total of 56 countries where the Gucci Brand operates. Its major competitors in the luxury fashion brand industry include companies such as Louis Vuitton (France, 1850s), The Hermès Group (France, 1830s), Prada (Italy, 1910s), Chanel (France, 1900s) and Cartier (France, 1840s). These brands have been established for many years and have been competing over their time in existence. TARGET MARKET
Women, Men and Children
Its positions as the ultimate luxury brand very high end and exclusive as well as renowned for quality. Many celebrities endorse the products as well are seen wearing or using Gucci. Gucci has become synonymous with elegance, sophistication and desirability. The only form of segmentation that applies to Gucci is concerned with income levels and persons ability to afford the product basically the pricing of the product places the product in a certain segment whereby its is only affordable to a certain sector of society based on income levels so in that way the product is positioned and geared towards wealth individuals looking for exclusivity
2.0 Answer to Question 1: Evaluation of the extent of standardization
The ethnocentric approach is one whereby the general attitude of a firm's senior management team is that nationals from the organisation's home country are more capable to drive international activities forward than non-native employees working at its headquarters or subsidiaries. The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. This mind set has as advantages that it overcomes a potential shortage of qualified managers in host nations by expatriating managers from the home country, creates a unified corporate culture and helps transfer core competences more easily by deploying nationals throughout the organisation. The main disadvantages are that an ethnocentric mindset can lead to cultural short-sightedness and to not promoting the best and brightest in a firm.In today’s global world, where consumers travel more, watch satellite television, communicate and shop internationally over the internet, the world now is becoming a lot smaller. Because of this there is no need to adapt products to local markets. Brands such as Coca-Cola, MTV, Nike, Levis are all successful global brands where they have a standardised approach to their marketing mix, all these products are targeted at similar groups globally. In many circumstances a company will have to adapt their product and marketing mix strategy to meet local needs and wants that cannot be changed. Mcdonald is a global player however, their burgers are adapted to local needs. In India where a cow is a sacred animal their burgers are served with chicken or fish. In Mexico burgers come with chilli sauce. Coca-cola is some parts of the world taste sweeter then in others, but in the case of Gucci and the type of products they offer there is little or no value to be derived from adaptation.
. Gucci has definitely adopted the ethnocentric home country approach with very little variation, this is actually one of their most important critical success factors in their history and continues to be their unique...
References: Terrence E. Deal, Allan A. Kennedy, Corporate Cultures, Perseus, 2000
John Kotter, Corporate Culture and Performance, Free Press, 1992
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