Gucci’s Turnaround: Repositioning and Rebuilding the Company (Simplified Chinese Translation)
(5 pages of text)
Case (Pub Mat)
In 2014, Guccio Gucci SpA (Gucci), a flagship brand of the Kering group, was struggling with its operating profit and human resources. By December 2014, the company had experienced three consecutive quarters of declining profits. In addition to the company’s financial issues, its president and chief executive officer (CEO) and its creative director had abruptly left the company. On January 15, 2015, a new CEO took over and faced several decisions. He needed to decide whether or not to reposition the brand and whether to hire internally or externally for a new creative director—related decisions that would strongly influence the brand’s position in the market and its appeal in the future.
This case is designed for use at the undergraduate level in marketing and strategy courses. It can be used to address core marketing concepts including, but not limited to, positioning, value propositions, core competencies, and brand equity. This case explores the personal luxury goods market as well as several marketing strategies and options for repositioning a brand. After completion of the case, students will be able to:
- understand the core value propositions of each tier of the luxury goods market;
- determine the value proposition of a luxury brand, using case concepts;
- identify the difficulties with repositioning in the luxury goods segment;
- discuss the balance between new revenue growth opportunities and brand dilution; and
- understand the interplay and importance of a digital marketing strategy.
Italy, Large, 2015
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