The formula used by Gucci in the marketing of its luxury goods has remained unchanged for the better part of fifty years. The focus still remains on the customer and the loyalty he has towards the Gucci product. Because the luxury goods market falls well outside the normal boundaries of hierarchical needs, the product range find itself in the sector of non-economic influences. Gucci has come to terms with this in the very early stages of development, and has marketed the prestige and expensive way of life that Gucci has to offer. .
The product design, quality and brand name has become synonymous with the elite, and will continue to do so because of the well maintained distribution of its products throughout the world.
The Gucci Company should primarily look at the market development and concentrate on new development within existing markets or possibly new markets that carry the status and appeal suitable to the Gucci brand. The Asian luxury goods market is a definite new market to consider, and definite growth can come from the new stores recently opened in Japan.
Together with the market development, market penetration can be concentrated on, and the Gucci stores should endeavour to concentrate on the newly rich. Already all Gucci stores are the ambience of high fashion, high price retailing. They are understated, refined, and luxurious and there is no hard selling as the buyer is accustomed to paying the prices requested. Gucci should emphasise the famous name it has to the newly rich customers, and endeavour to win over the loyalty at an early age.
Luxury goods have specific pressures that lead towards adaptation rather than standardization. These include customer needs, packaging, and communication in the market place as well as the different distribution channels available to the company.
The current product line up is seen to be well within the range of width and depth, as the fashion industry favours repetitiveness.
