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PRAJAKTA GOLE
ANAND LIHINAR
MAZHAR ALI
SNEHA TENDULKAR
SONALI PETKARAMRIT PAI
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Gucci
Founded in Florence 1921
1950: first global store in New York, US
1979: Accessories Collection with 20,000product lines & with over 1,000 stores;
1992: Loss of more than $40 million
1993: Gucci sold all the shares toInvestcorp (a Bahrain-based private
equity firm)
1993: Appointment of Domenico De Sole& promotion of Tom Ford to CreativeDirector
Corporate Background
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Background Summary
Company Gucci Louis Vuitton Vertu
Established 1921 1854 2000
Sector Fashion and Design Luxury Goods Luxury Communication
Products Men and Womens Wear,
Shoes, Jewellery, Watches,Perfumes, Eyewear, Homegoods, Luggage/Handbags,Baby Wear.
Leather goods, ready-to-
wear, shoes, watches,jewellery, textiles, writinginstruments &accessories.Famous for its handbags.
Signature Collection
Stainless Steel CollectionDuo Stainless SteelBordeaux Stainless Steel
Typical
Locations
Florence, Rome, Paris, NewYork, London, Palm Beach,Tokyo and Hong Kong.
Paris, New York, Tokyo,Dubai, Las Vegas, LosAngeles.
Paris, New York, HongKong, Singapore, London.
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Gucci Strategy
3 Phases of Brand Strategy by Gucci
1) Gucci Brand Stabilisation Phase(1995 1999)
2) Multi brand Acquisition Phase
(1999 2001)
3) Gucci Group Consolidation Phase
(2001 2004)
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Phase 1: Brand stabilisation phase:
early 1995-October 1999
1) Re-established control of Gucci productdesign and manufacture
2) Re-established control over Gucci product
distribution
3) Create a balanced product portfolio for aluxury brand
4) Establish a luxury marketing communicationsplatform
5) Create a luxury brand consumptionexperience
6) Tom Ford the design direction and control
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Phase 2: Multi-brand acquisition phase
November 1999-July 2001
1) At this phase, Gucci had transformed from theirsingle brand status to become a multi-brandluxury goods group;
2) The Gucci group to requisite skills to advantage
each category of acquisition and intra-groupsynergies to provide positive benets for thegroup as a whole
Phase 3: Gucci group consolidation phase
August 2001-April 2004
1) New Gucci group has been formed
2) To manage effectively portfolio of brands whichwill each be unique in its brand image andvalues, while leveraging the skills andinfrastructure of the enlarged Group.
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Share issue scheme
Poison Pill
PPR to buy a 42% stake in Gucci for $ 2.9bn
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Market scenario
Low market price
Stake 34.4%
Friendly relation of Pinault & Gucci
Pinault 42% stake in Gucci
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Conclusion
Follows rules and regulation
Proper strategies adapted
Better knowledge about competitors
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