2. What is the product? What is the target market?
Bamboo handbag Rich young to middle aged women
Studded pump Rich young to middle aged women
Tailored suits Rich young to middle aged men
Shirts Rich young to middle aged men
Baby grows Rich parents
Baby shoes Rich parents
3. How and why groups of customers are
targeted for selected products?
Handbag: Fashion shows, adverts, role models using them and
social media, attractive models.
Suits: show role models in them, adverts on TV, magazines and social
media, attractive models.
4. Five types of customer
Loyal customers: people who have repeatedly purchased goods
from the store. This customer type is one of the most likely to buy my
product.
Discount customers: Customers will shop regularly but will purchase
depending on the markdown.
Impulse customers: these customers will look in the store on a whim
and buy what looks good at the time, or what appeals to them.
Need-based customers: they will come into the store to specifically
buy something. This customer type is one of the most likely to buy my
product.
Wandering customers: these people have no specific desire or need
to purchase something but come in to feel a sense of community.
5. product
Quality: they aim to provide the highest quality possible hence the
price being high. This is important in the context of the suit.
After sales: many products (such as a suit) will have a return
warranty/policy which will be important in order to maintain
customers.
Salesmanship: the salesman will look to do the best they can with
assisting the customer and making a sale. This will entail sales
training, courses and so on.
Product life cycle (seasons): products will come and with peaks and
troughs in sales depending on the season. i.e. A shirt will sell during
the summer however may not sell during the winter. This can also
apply to a suit.
6. price
Inelastic/elastic: Gucci’s prices are inelastic due to their target
market. This means the market is unresponsive to price change.
Conspicuous consumption: people buy the product to show they
can afford it. Many women are conspicuous consumers of Gucci
items (e.g. handbags, stiletto shoes). They want to purchase the suit
to show they can buy those products. It underlines their success
Lower price in the sales: the demand may rise as the prices are
lower.
Demand/supply equilibrium: the demand and supply are the same
which results in equilibrium.
Market skimming: only for Gucci, high price and high quality. The
opposite is market penetration which is where a shop sells a product
at low price.
7. promotion
Celebrities: they will use the celebrities to endorse their products and be seen
wearing them. This boosts sales. They also use celebrities to do adverts. For
instance, James Franco may advertise a suit or Blake Lively may advertise a
perfume
Part of a collection: if the product is part of a collection then it may well be
bought specifically to complete or start a collection. This means sales will be
high.
Product placement: products are shown in films such as James Bond. This boosts
the level of sales for a certain product. Placement is expensive but if done right
it will pay off.
Special promotions: Products will have special promotions on them at certain
points such as if a suit isn’t selling they will put a special promotion on it in order
to sell the suits and create popularity.
Adverts: they will use adverts with good looking people in order to make the
audience want to be like the models. They will also use celebrities to make
adverts in order to make role models.
8. place
Location of the store: there are not that many Gucci stores
compared to places like Primark. There are around 13 stores in
London. This is because it is a wealthy area and it is the most likely
area to sell their products.
Location in the store: If a product is right in front of you as you walk
in the customer is more likely to buy it compared to a product that is
shown in the corner of the store where not many customers go.
Location on the website: All the genders have their own section on
the website. Men have their own section and within that they have
areas such as suits and shoes. If the product is shown in the wrong
area it is unlikely to be bought.
