Gucci documentary TOM THOMSON

What is the product? What is the target market?

Bamboo handbag Rich young to middle aged women

Studded pump Rich young to middle aged women

Tailored suits Rich young to middle aged men

Shirts Rich young to middle aged men

Baby grows Rich parents

Baby shoes Rich parents

How and why groups of customers are targeted for selected products?

Handbag: Fashion shows, adverts, role models using them and social media, attractive models.

Suits: show role models in them, adverts on TV, magazines and social media, attractive models.

Five types of customer

Loyal customers: people who have repeatedly purchased goods from the store. This customer type is one of the most likely to buy my product.

Discount customers: Customers will shop regularly but will purchase depending on the markdown.

Impulse customers: these customers will look in the store on a whim and buy what looks good at the time, or what appeals to them.

Need-based customers: they will come into the store to specifically buy something. This customer type is one of the most likely to buy my product.

Wandering customers: these people have no specific desire or need to purchase something but come in to feel a sense of community.

product

Quality: they aim to provide the highest quality possible hence the price being high. This is important in the context of the suit.

After sales: many products (such as a suit) will have a return warranty/policy which will be important in order to maintain customers.

Salesmanship: the salesman will look to do the best they can with assisting the customer and making a sale. This will entail sales training, courses and so on.

Product life cycle (seasons): products will come and with peaks and troughs in sales depending on the season. i.e. A shirt will sell during the summer however may not sell during the winter. This can also apply to a suit.

price

Inelastic/elastic: Gucci’s prices are inelastic due to their target market. This means the market is unresponsive to price change.

Conspicuous consumption: people buy the product to show they can afford it. Many women are conspicuous consumers of Gucci items (e.g. handbags, stiletto shoes). They want to purchase the suit to show they can buy those products. It underlines their success

Lower price in the sales: the demand may rise as the prices are lower.

Demand/supply equilibrium: the demand and supply are the same which results in equilibrium.

Market skimming: only for Gucci, high price and high quality. The opposite is market penetration which is where a shop sells a product at low price.

promotion

Celebrities: they will use the celebrities to endorse their products and be seen wearing them. This boosts sales. They also use celebrities to do adverts. For instance, James Franco may advertise a suit or Blake Lively may advertise a perfume

Part of a collection: if the product is part of a collection then it may well be bought specifically to complete or start a collection. This means sales will be high.

Product placement: products are shown in films such as James Bond. This boosts the level of sales for a certain product. Placement is expensive but if done right it will pay off.

Special promotions: Products will have special promotions on them at certain points such as if a suit isn’t selling they will put a special promotion on it in order to sell the suits and create popularity.

Adverts: they will use adverts with good looking people in order to make the audience want to be like the models. They will also use celebrities to make adverts in order to make role models.

place Location of the store: there are not that many Gucci stores

compared to places like Primark. There are around 13 stores in London. This is because it is a wealthy area and it is the most likely area to sell their products.

Location in the store: If a product is right in front of you as you walk in the customer is more likely to buy it compared to a product that is shown in the corner of the store where not many customers go.

Location on the website: All the genders have their own section on the website. Men have their own section and within that they have areas such as suits and shoes. If the product is shown in the wrong area it is unlikely to be bought.