Gucci Brand Management Essay

5538 Words Jun 26th, 2012 23 Pages
Executive Summary
This paper examines the brand management of Gucci, as one of today’s most prominent luxury brands. Based on literature it first looks at definitions of luxury and luxury brand equity as an expression of dream value. Then it explores the identity, brand building, brand architecture, brand stretching and strategies Gucci follows in each of its segments. In the light of the latest recession, it looks at the response strategies of the brand and sheds light on the communication challenges, the brand faces in reconciling its past and current perceptions. The paper suggests certain communication improvements, and argues Gucci should exploit the potential of the Internet as a communication and e-commerce channel, where to gain
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While resilience is a useful metric for luxury brands, especially in the light of the latest recession, leveragability fails to express the subtle nuances, such as preservation of exclusivity, luxury brands face when extending into other categories. Kapferer and Bastien (2009) state that the best way to measure brand equity is dream value. They support the dream equation of Dubois and Paternault (1995): Dream = -8.6 + 0.58Awareness – 0.59Purchase The equation expresses the luxury paradox: awareness feeds the dream but purchase destroys it since the dream comes true. The luxury challenge is to develop equity (increase awareness), without decreasing the appeal, in direct relationship with exclusivity. The equation provides real value for marketers, as shown in a study by Wong and Zaichkowsky (1999) where they measure the dream value of luxury brands in Hong Kong. Awareness is mainly created through brand communications: advertising and other forms. Luca (2007) argues that past a certain advertising threshold top-ofmind awareness is guaranteed.

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Brand identity
According to Kapferer and Bastien (2009) the brand identity is the core of the luxury brand. Two ways of creating it:  The identity it is that of the creator itself, which surpasses his death and is embodied in the new creators: that of Guccio Gucci, reincarnated in creative directors Tom Ford and Frida Gianini (see Appendix 1). Gucci’s product quality is taken to the extreme (handmade in

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