International Marketing

Many factors influence the success of a company. Certain factors such as environmental factors, the organizational structure, public relations and social responsibilities have been identified to have a significant influence on organizational success. These factors mainly surround the way an organization markets its product and its relationship to the public. Many companies are influenced by many forces that are either internal or external. The success of an organization depends on how it organizes its operations and executes its strategic goals to escape the adverse factors. These issues can severely affect the growth f an organization when not performed correctly. This study aims to discuss some of how Gucci Company deals with these factors and the challenges that it experiences. This study will be based on factors such as environmental forces, public relations, CSR, organizational communication approaches. This study has been organized into six sections. The first section is about the product-market profile, ecological influences, public relations, and the company website design. The two last parts include the leadership structure and corporate social responsibility. 

Men's Gucci Tennis 1977 Sneaker

The company and product that I have chosen is Gucci and its Men's Gucci Tennis 1977 sneaker. Gucci is an international Italian luxury fashion and leather goods brand which was founded in 1921 by one Guccio Gucci in the city of Florence, Tuscany. The brand is currently one of the oldest Italian fashion brands operating today. The current CEO of the company is Marco Bizzari. Furthermore, by September 2009, Gucci had approximately 278 directly operated stores globally, with its products wholesale done via franchises and upscale department stores.

The company has developed over the years as a symbol of abundance that not only represent a luxury fashion house, but also slang for great success. Thus, its consistent inspiration for many hip-hop and rap artists is drawn from its rich history of opulence and boldness. The French luxury group, Kering is the current owner of Gucci. The former and its proprietor Francois Pinault also own notable brands like Alexander McQueen, Balenciaga, and Yves Saint Laurent. Gucci trades in products for virtually every purpose and gender. Amongst them is them is the Gucci Tennis 1977 Sneaker.

The latest low-top sneaker by the brand draws its design inspiration from tennis-shoe. The sneaker is a reinterpretation of another sneaker found on the brand’s archive, and combines both a modern spirit and original (classic) details, under which the Gucci creative director Alessandro Michele describes as ‘‘a neoclassical philosophy - the act of intentionally imitating an antique example” (GQ Staff, 2020). As a re-imagination of the 70s tennis shoes which arguably both have figuratively and literally stood the test of time, the Gucci Tennis 1977 Sneaker is both durable and easy to wear (Gucci International, 2020).

It has a texturized rubber sole and a low-top made of canvas. The sneakers can be worn with a diverse range of outfits, including suits, corduroy flares, denim jeans, shorts, etc. Furthermore, the product comes in Gucci’s signature plain colors, distinctive prints, neat finish and touch, etc. In addition, the product comes in seven different styles in ranges, which are all unisex.

1. Who buys the product?

Men of all ages

2. Who does not buy the product?

Women

3. What need or function does the product serve?

The sneaker is footwear.

4. Is there a market need that is not being met by current product/brand offerings?

Yes. Though there are several sneakers out there from different brands, the Gucci’s Tennis 1977 Men’s Sneakers have a unique offering in that they feature a luxurious modern design and a classic feature. The luxurious touch makes it wearable in any context and with every outfit.

5. What problem does the product solve?

The main problem that the product solves is the need for luxurious, durable, and easy-to-wear sneaker-shoes.

6. What are customers buying to satisfy the need for which the product is targeted?

There are other sneaker varieties, from Gucci or otherwise, that customers are currently buying.

7. What price are they paying?

Between $ 630.00 and $ 690.00

8. When is the product purchased?

Since the product is currently in the market, it can be purchased at any time.

9. Where is the product purchased?

The product can be purchased directly from the approximately 278 directly operated stores globally, with its products wholesale done via franchises and upscale department stores. Apart from Gucci houses and branches, there are other retailers (both brick-and-mortar and online) that also sells the product.

Environmental Influencers

Environmental influences refer to external factors that impact an organization's marketing decisions involving pricing. Having a pricing goal is not sufficient; an organization must consider many other factors before setting its product prices. Customers are a crucial consideration when making a pricing decision. The three vital elements for consideration about customers are whether they feel that the product provides value, how sensitive the buyers are to prices changes, the number of buyers available. The company needs to collect market size data and try to identify how sensitive customers are on price. The product's price should match the buyers' perception of the value they are likely to get from the product (Zhou, 2019). The number of buyers able and willing to buy the product, determine the demand of the product, and due to forces of demand and supply, it influences the product price. When the demand is high, the company can set relatively high prices.

The way competitors sell and price their products has a great impact on the pricing decision of a company. If a customer wants to buy a pair of sneakers from Gucci Company, but the price 20% less in another competing company, the customer is more likely to buy the product from the competitor. Companies should consider matching their prices to that of the competitors to establish and maintain their loyal clients to avoid this problem, which may cost the company its market share. When the competition is too high, the company may also consider giving an extra discount if the customers feel the prices may be better somewhere else. The presence of substitute commodities impacts the pricing decision of a company as well (Kim, 2019) If the prices of certain products become too high, the customers may look for a substitute that solves the same problem. High completion also means and the company should invest more in advertising.

The economic forces impact the product pricing decision. The economic environment factors like unemployment levels and interest rates impact the price. When the level of unemployment is very high, many people will have lower bargaining power due to low income, which results in reduced demand for the product, the lower the demand, the lower the price. When interest rates are very high, the company is likely to increase the prices of a product to compensate for the interests. The rate of currency exchange in the international market also influences the product pricing.

Federal and state regulations and laws determine the prices of products. The state regulations are designed to promote competition, encourage fair and ethical business behavior, and protect consumers from exploitation. Some regulations limit the ability and freedom of sellers to charge differently for the same commodity. Such regulations may serve to protect small companies from the big ones that have the ability to give big discounts and eliminate the small competitors. The state may set maximum prices for some products above, which no company is supposed to sell. Governments may set taxes and custom duties that influence the pricing decision as the company must find a way to compensate for extra expenses brought by the tax addition.

Changes in customers' tastes and preferences may affect the marketing and pricing decision of a company. Change of people's social behavior and other factors may impact them to shift preference on certain products affecting the demand and thus, leading to low prices.

Conclusively, a company has to consider several factors when setting pricing and marketing objectives. These influencers may include the completion, customers, government policies and regulations, economic forces, and changing buyers' preferences and tastes on products.

Public relations

Public relations refer to a strategic communication process used by companies and organizations to build and maintain a mutually beneficial relationship with their customers and the public. Its primary role is to promote and maintain a positive brand image and reputation necessary for an organization's success. To achieve this, companies use a variety of promotional mediums such as social media platforms, television, newspapers, and magazines as well as in-person engagements. Regarding this, Gucci relies heavily on public relations to gain more relevance and support its marketing efforts.

Surviving in today's competitive market requires the use of effective PR strategies to build and maintain your company's brand image and reputation, essential in achieving a strong competitive edge. Gucci employs a variety of PR strategies to maintain a positive mutual relationship with its customers, the public, and other stakeholders. As a result, this has helped the company to build a strong positive brand image and reputation over its competitors. For instance, Gucci uses various forms of social media, including Facebook, Instagram, and Twitter, to showcase its wide range of products and build a strong relationship with customers. Social media enables the company to reach a broader target group, especially in the global market, thus establishing a positive mutual relationship. On Instagram, Gucci has over 33 million followers; hence the channel offers a better platform for the organization to promote its products and ensure customer engagement (Pratap, 2019). The various social media channels have large following globally; hence they help Gucci to engage with its customers, promote and market its products to the global market. Through customer engagement, the company strengthens its brand image and reputation, thus positioning itself well in both the local and global markets.

The use of celebrity figures is another key PR strategy employed by Gucci. For instance, Gucci has used several celebrities such as Marisa Miller, Ashton Kutcher and Kim Kardashian, among other celebrity stars to showcase and market its products. Such personalities are recognized globally; hence they play an essential role in marketing the company's latest fashion trends to the global market. The use of celebrities also helps to strengthen the company's brand image and build a stronger relationship with existing and prospective customers. Moreover, the company focuses greatly on promoting corporate social responsibility and sustainability as a critical PR strategy. Being one of the highly successful luxury brands globally, Gucci emphasizes on social responsibility to create and maintain a good public image (Sophia, 2010). For instance, the company is committed to reducing environmental impact by enhancing sustainability in its business operations. Gucci also focuses on promoting respect and equal treatment of workers in all parts globally. As a result, various social responsibility practices have enabled the company to build and maintain a good relationship with its customers, thus supporting its global marketing. Today, Gucci is recognized as a luxury brand in the global market.

The Company Website Design

Many companies have widely used websites for marketing purposes. The use of a website makes a company to market its products to a broad customer base. Today, many people own smartphones or computers, and nearly one out of five people can access internet services in the U.S. This opportunity drives many companies to use websites and social media in marketing their products (Kasztalska, 2018). Even though many companies have adopted the use of online marketing, not all websites are designed to meet customer needs. A good website must be easy to use by all customers. Here, we are going to look at some of the Gucci Website features that make it suitable and easy to use by its customer base.

The Gucci Website is mobile compatible. The website can easily be accessed by customers who have smartphones, laptops, computers, or tablets. The images on the website have been designed in the right size, the pages are also adequately sized, and the site maintains a consistent look Kasztalska, 2018). These factors make the place to be accessible from mobile devices. This has enabled the company to acquire customers from different geographical locations since all the customers can access its site.

The site contains a professional logo. The professional logo plays a vital role in the site because it attracts customers into the website. The logo is positioned in the front and center on the site homepage. This positioning makes the site to get in front of thousands of eyes each month. The logo is also designed in such a manner that makes it so attractive.

The company’s website acts as a tool for relaying pertinent information to current and perspective as quickly as possible the site has simple navigation and UI (Younger, 2010). The company has focused on navigation and UI while designing its website to make it user friendly. Finally, the website provides both front and center contact information. The contact info of the site is positioned on the bottom of each page of the website. The contact info is written using a larger font, which makes it clear and to the point.

Conclusively, the company’s website is perfect, and it provides all the basic requirements of customer-based sites. Elements such as professional logo, contact info, navigation and UI, and mobile compatibility are the main focus that Gucci considered while designing its website. These elements of a website make it to be user friendly.

Organizational structure

Chief Executive Officer: The Company is headed by Chief Executive Officer (CEO). The CEO is accountable for the overall success and failures of the organization. CEO is answerable to the Board of Directors, and he also forms part of the board. In Gucci Company, the CEO is the chairperson to the Board of Directors (Younger, 2010). He is responsible for making vital decisions on behalf of the company. Other functions of the CEO include communicating on behalf of the company to the company stakeholders, government agencies and the public. In Gucci Company, the CEO is responsible for the successful implementation of the strategic development plans. He monitors the work of directors and managers in the company and ensures all the operations are aligned with the organizational expectations. CEO maintains the awareness of industry development, expansion opportunities and landscaping of the competitive market. Risk management and mitigation are also part of the CEO role in Gucci Company. Finally, the CEO is responsible for setting the company goals and ensuring that all the goals are achieved.

Company Director: the company director is the second most powerful individual. The Company director is answerable to the CEO. His role is to supervise all the activities undertaken in the organization by ensuring that its subordinates conform to the company plans. Another part of the director is to provide guidance and teaching to the team of managers to ensure that the work is den appropriately (Younger, 2010). Leadership and education are done through issuing of instructions.

Human Resource Manager: the company HR manager is responsible for the wellbeing of all employees. Gucci Company has an employee portal, which is managed by the HR manager. The HR manager is responsible for adding and removing employees in this portal; he is also responsible for the portal's security. The discipline and compliance with the rules, as well as responding to employees' feedbacks, are some of the roles of the HR manager (Younger, 2010). An HR manager is also responsible for the publishing of the recruitment notices for eligible applicants. He heads the selection, interview, and recruitment process. Above all, the HR manager has the power to fire employees due to misconduct or noncompliance with the rules. Besides, he is responsible for the security and safety of all employees as well as ensuring that all employees are compensated adequately.

Operating Manager: The operating Manager of Gucci Company is responsible for all the company's daily operations. He coordinates all the activities by ensuring that the raw materials required are available at the right time. The operating Manager is responsible for all the procurement activities in the company.

Financial Manager: this is the person responsible for all the business transactions in the company. He is also responsible for approving and authorizing all the operations in the company. The finance manager is the one who accepts all payments to employees as well as ensuring that the company assets are evaluated and remain secure (Younger, 2010).

Assistants: their role is to help the executive members in executing their functions by acting as watchdogs for top officials. Since they are more connected to grassroots employees, they report any challenges they experience or faced by low-level employees' top senior officials.

Gucci is a digital company that uses digital platforms to relay information between the executive members (Younger, 2010). The company uses videoconferencing, websites, emails and mobile phones for communication purposes. The chain of command is a communication technique that the company uses to pass information.

Corporate Social Responsibility

The harmony between the company and the neighboring community is one of the success driving factors of Gucci Company. Gucci is located in the city of Florence, Tuscany. According to the previous census report, the city of Florence is one of the underprivileged cities in Tuscany. The contribution of Gucci Company in the development of this city over the ten decades is significant. Gucci Company is the secret behind the love for sports in the region (Kasztalska, 2018). The company has inspired many youths to engage in sporting activities by providing jersey and shoes for them. The company has been at the forefront of developing young talents by encouraging them to participate in games and sports.

Many renowned colleges and universities around the city, such as the Florence Institute of Design International, IED, Florence High School, and Harlan Elementary School, have been famous due to their prowess in games and sports supported by the Company. Besides, many youths have managed to realize their dreams because of Gucci Company. The Company currently sponsors more than one thousand students among some who are in the university, college and high school (Kasztalska, 2018). These children have been sponsored, and the Company fully pays their school fees. These are mainly children in Florence City.

Another vital contribution of Gucci Company to the people of Florence City is that the Company has offered employment to more than five hundred families in the region. The Company has changed the lives of many people around the area by acting as a source of income. Today, the living standard of the people around the region has improved as a result of the Company. This has lead to many children going to school because their parents are employed and can afford to raise their school fees, unlike before, when many youths could not complete their studies in the area. The Company's local employees account for about 60 percent of the total executive and low-level employees (Kasztalska, 2018).

Besides, the Company engages in many community development programs such as tree plantation and environmental conservation to ensure that the area is protected from environmental degradation. Today, the Company has planted more than 10,000 trees in the region (Kasztalska, 2018). Finally, the Company is participating in charity programs. The Company offers clothing and food to orphanages around the city and beyond. Two years ago, the Company started a savings and Credit Company where the residence can borrow money and return at low interests. This project was aimed at helping the underprivileged families in the area by lending them money for small businesses to reduce poverty in the area.

Conclusion

This study has addressed essential elements of Gucci marketing strategy and has also outlined some of the factors that influence its success. Factors such as the use of the website and how the site is user friendly are some of the reasons why the company s having customers globally. The harmony between the company and the community is another factor that has stimulated the company’s progress. The products from this company are pocket friendly and readily available, thus making it easier for the company to compete effectively in the market.

References

GQ Staff. (2020, February 10). Gucci’s New 1977 Tennis Sneakers Are The Same-Same But Different.Retrieved May 7, 2020, from GQ - GQ Middleeast: https://www.gqmiddleeast.com/style/guccis-new-1977-tennis-sneakers-are-the-same -same-but-different

Gucci International. (2020). Men's Gucci Tennis 1977 sneaker. Retrieved May 7, 2020, from GucciInternational: https://www.gucci.com/int/en/pr/men/shoes-for-men/sneakers-for -men/low-top-sneakers-for-men/mens-gucci-tennis-1977-sneaker-p-606111GZO309361

Kasztalska, A. M. (2018, September). Brand Image And The Fight Against Counterfeiting By The Gucci Company. In CBU International Conference Proceedings (Vol. 6, pp. 221-225).

Kim, J. (2019). The impact of different price promotions on customer retention. Journal of Retailing and Consumer Services, 46, 95-102.