2. Gucci New Product Idea
Creating a separate brand of Gucci that will be less expensive
This brand will be owned and run by the same people
3. What…
New affordable brand
More options for the middle class people
Different styles
4. Why…
For Gucci to target a different audience
To be able to broaden their demographic
To compete more with other brands doing the same thing
5. How…
Gucci will use advertisments one social media and on television
Gucci will use 25% of their budget in the first year to make this new
product possible
6. Target Group
College students
Middle Aged mothers and fathers on a budget
Anyone who wants fashion at a smaller price
Source:
http://www.indexmundi.com/united_states/age_structure.html
7. Timeline
Gucci will introduce this strategy to the public in January of 2017
First store opening will be in December of 2017
8. Budget…
25% of Gucci’s annual budget in the first year of this strategy
12.4 billion annual revenue recorded in May 2015
Source:
http://www.forbes.com/companies/gucc
i/
9. Locations…
Located near the locations of already existing Gucci stores
Start location; New York, New York
Second location; Hollywood, California
After second year of successful sales, Gucci will start opening these
cheaper stores in cities across America
By 2020 these stores will be across the world
Source:
https://www.google.com/maps/search/gucci+stores/@36.5673776,-
98.3829321,4z
10. New Product Re-cap
To make a new affordable line of Gucci to broaden the demographic
To promote this new strategy with television ads and social media output
Promotions to people who are excited about the store (email offers,
coupons etc.)