Successful Brand Leadership-Gucci Essay

2232 Words May 27th, 2011 9 Pages
Individual Term Assignment
Successful Brand Leadership
Made by Annus Dorottya

Introduction:

The House of Gucci, better known simply as Gucci, is an Italian fashion and leather goods label, part of he Gucci Group, which is owned by French company Pinault-Printemps-Redoute (PPR). Gucci was founded by Guccio Gucci inFlorence in 1921. Gucci generated circa €2.2 billion worldwide of revenue in 2008 according to BusinessWeek magazine and climbed to 41st position in the magazine's annual 2009
"Top Global 100 Brands" chart created byInterbrand. Gucci is also the biggest-selling Italian brand in the world. Gucci operates about 278 directly operated stores worl

Company History:

Like many other high-fashion companies, Gucci began as a
…show more content…
They don't skimp on the raw materials what the product made from. The customer gets the quality on their money. This is very important if Gucci wants to preserve their customers in the long term. “Gucci stays with made-in-Italy strategy. Riding high on their incredible financial success (a 35% growth in revenues over the last two years), Mark Lee , chief executive officer for Gucci, is looking forward to establishing the 86-year-old luxury brand’s presence in India. Gucci is a perfect luxury brand in that sense with an incredible product authority, built up for decades across a range of product categories. Leather goods are our core business, accounting for more than 50% of the revenues of the brand.” (http://www.livemint.com/2007/10/14235919/gucci-to-stay-with-madeinita.html) As every people know there are a lot of same brands like Gucci such as Louis Vuitton, Dior, Burberry etc. These brands do not decrease the price of the Gucci products because the “rich” people can buy all of them so it is not necessary to decrease prices. Pricing factor in the case of Gucci can be manufacturing cost, which contains direct materials cost, direct labour cost and manufacturing overhead.
“Direct materials are the raw materials that become a part of the finished product. The direct labour cost is the cost of workers who can be

Related Documents