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Gucci Market Segmentation - An Analysis

Keywords: gucci segmentation, gucci goal market

Guccio Gucci popularly known as Gucci can be an Italian brand and was proven in 1921 for the creation of leather baggage. Its brand was motivated by the cosmetic of London nobility and class. Gucci was innovated with course sensitivity as a major focal point. Over time its customers have been aristocrats, music stars, ultra models and the ones that are looking to associate with the commendable (Gucci. com, 2010)

Gucci performs in the style luxury market, their brands are of high quality, it offers a strong reputation; its choices are exclusive and expensive, and it has a brief history of brand loyalty. Gucci has diverse selections which include bags, shoes, belts, fine jewellery, fragrance, hats and gloves, scarves, shades, budget and wristwatches (Gucci. com, 2010)

Over the years, Gucci has give attention to strengthening the ideals after which it was founded which is on these prices of school that its segmentation is situated (Gucci. com, 2010).


This article aims to analyse different segment of Gucci brand, how it is targeted and looked after over time. It also suggest other possible portion which the brand could consider, concentrate on and position to be able to increase their sales, enhance their brand commitment and move around in the course of the global pattern in the style luxury market.


The need and purchasing practices in the market varies, thus something cannot meet the needs of all consumers in the markets as they have diverse tastes and preference. This gave climb to market segmentation (Fletcher. k, 1995).

Keller K. L, (2009) point of view was a far more sophisticated one, as he views the marketing environment as you changing drastically with technological improvement, improvement in world connection and good communication means, increased consciousness and customers' high understanding of diversity of brand on the market. He suggested that as a result of the factors, companies devised a strategy of customizing its brands and sales programmes to suit different needs of consumers thus the introduction of market segmentation.

Segmentation of brand is an aspect of advertising planning. Most marketers use segmentation, concentrating on and position to have success in their business. With segmentation, large heterogeneous market segments are divided into smaller units that may be effectively and proficiently come to with products that gratify their special tastes. After segmenting the market, you select the section to enter into. Selecting segment(s) is named concentrating on (Kotler. P. et al, 2008).

Kotler et al also suggested that in analyzing a firm's section to choose its target market, three factors are considered:

The size of the portion and its development.

The structural appeal of the sections.

The objective and resources of the company.

It is these strategy that companies use in positioning its brand for competitive benefit.


Segmentation includes splitting the marketplace into diverse section predicated on some conditions that demonstrates different purchasing needs (Procter. T, 1992)

Every consumer can have a section, since it is impossible to appeal to specific needs or wants, thus the necessity to classify buyers who've slight different in product requirement along in a portion.

Segmentation of Gucci brand will be analysed predicated on Fletcher

. K, (2005) basis for segmentation:

Demographic Segmentation.

Geographical Segmentation.

Psychological Segmentation.

Behavioural Segmentation.


Demographically, Gucci brand are segmented using making love and age as a criteria. Gucci produces brands for male and female, children and adults respectively. Their brands are for the group of male and female who love the prefer to win over others, have a higher social class and strong financial bottom. Those who love the brand are driven by the sort of lifestyle they live and the need to maintain that lifestyle (Gucci. com, 2010)

Gucci brand will not consider the market class or the middle course; thus an inefficient utilization of the market society, as the marketplace is based on this category of consumer.


Gucci is very aware of the countries it locate its brands since they are exclusive and of great quality.

Gucci runs in very few countries in America and Europe whose consumer behaviour is unique in terms of quality. For example, France populace are willing to pay more for quality. Recently, Gucci has propagate to France, Germany and Belgium (Gucci. com 2010).

Gucci geographical segmentation is poorly structured as it tends to ignore developing countries and growing markets.


Gucci brand target is majorly upon this segmentation with rigorous concentration on life style. Over the years, they have got targeted the approach to life with their customers who are mainly songsters, film personalities, and aristocrats, whose buying decision are mainly influenced by the group they belong to (Gucci. com, 2010).

Gucci focuses on lifestyle because it satisfies them best and most profitable considering the fact that their brands are costly and of great quality.

The factors driving a vehicle the psychological facet of Gucci's segmentation over time are increasing disposable income, lower unemployment internationally, increasing female occupation, growing wealthy class in appearing countries and the desire to emulate the lifestyle of others and sociable influence to get luxury goods (Hine T and Quin L, 2005).


As a result of the recent global recession, people are usually more cautious of these shelling out for luxury goods, focus on quality has reduced and emphasis on price (reduction) has increased as consumers attempts to avoid or reduce impulse buying (Beverland M, 2005)

Also, with increase purchase of counterfeit luxury goods, the brand is burning off its value because so many people see the counterfeit and real brands as the same; this may lead to reduction of loyal customers' base, and could have an effect on sales and dividends on brand negatively (Eugene M. et al, 2010).


Behavioural segmentation could be viewed from the facet of brand loyalty, user rate and market responsiveness towards product (Kotler P. et al, 2008). Gucci as a brand has demonstrated over the years to be of great quality and very durable, thus it includes a high ratio of consumers' commitment.

Gucci brand includes great experience in various dimensions. A lot of the dedicated customers may have experience its great quality and the admiration the brand commands.

Gucci can increase its end user rate and the attitude of the market towards its product by moderating its price as its prices are usually on the high side.


Gucci concentration on lifestyle has helped to improve their dedicated customers' base over time.

It has also helped the business to maximize competitive benefits that serves the target market in the most efficient way (Wilson. W, 2005)


Gucci segmentation is too small, and a thin segmentation means fewer customers, and less sales resulting in less earnings (Blythe. J, 2008).

Also great concentration on way of life could constraint them from diversifying to diverse areas of the market, and they have a discriminatory way of segmenting their brands when viewed from the societal point of view.


With the speedy homogenization of global intake which is consequently of the emergence of global culture facilitated by the globalization of international market, companies should think about a cross national, cross cultural approach to market segmentation (Agarwal. J. et al, 2010).

Agarwal J. et al judgment reflected the actual fact that openness to improve therefore of the global culture are steadily sweeping the global market as space between diverse ethnicities, nations, regions, prices, are getting nearer. There is now commonality of requirements among different country of the world.

Also, most investors tend to invest in the stock of the emerging market segments thus boosting the country's revenue by taxation of international buyers' dividends. For instance in 1999, 29% of Mexico stocks were owned or operated by US (Domiwitz I. et al, 1999). This also means more capital for company, development of company, increased job and therefore increased disposable income, to invest on luxury brands like Gucci.

Gucci as a brand should adopt the cross ethnic and cross national segmentation by producing diverse brands that meet diverse class of folks in the modern culture, and also wide open branches in several countries and regions of the world as opposed their massive amount in European countries and America (Hofstede et al, 1999). They should realise that countries such as India are emerging markets in the international picture. They should explore growing countries of the world as expanding countries are actually having global id; having sense of belonging to global values, beliefs, life-style and consumption behaviour (Sener. T and Mandaci P. E, 2010)


This newspaper work analyse Gucci segmentation with great focus on its Psychological (Life-style) segmentation and also claim that the brand should accept and explore recent segmentation like combination ethnical and cross national segmentation, in order to enhances its brand quality, increase its sales and earnings.


A variety of implications arise out of this paper work which include:

Gucci should think about other market segmentation options.

They should match the options to maximise their strength.

Globalization plays a very important role in segmenting, concentrating on and positioning, so the brand should accept it (Keller K, 2009)


This study acquired its own restrictions. The restriction includes; time and phrase constraints, sourcing of the six peer previewed journals and four other marketing publications found in this research from the catalogue was tedious as most marketing students were also doing their paper work, getting home elevators the brand from the web was quite exhaustive and almost all of the research materials used was of secondary data that are not always reliable.


Gucci is well known as a strong brand with dedicated customer base, the fact they concentrate more on lifestyle because of this of competitive advantages is quite reasonable.

With the development of development in the economies of the world, they should think about other avenues like the combination ethnical and cross countrywide segmentation mentioned in this study, goal it and position their brands in the picked segment(s)

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