Part 2 Company Project
A competitive analysis is a plan where the company identify its major competitors, research their sales, products, and marketing plans. Competitive analysis helps the company to make good strategies to overcome the competitor. Unique Fashion Company faces stiff competition from various global companies. Some of the competitors include Gucci, Calvin Klein, Armani, Alexander McQueen, Christian Dior S.A. This composition will focus on the market share, marketing strategies, threats, weaknesses, and opportunities Gucci and Armani Company poses. Armani is owned by Giorgio Armani, who was born in the Northern Italian town of Piacenza in 1934. Armani is built on three pillars: exclusivity, class, and quality. Brand products cover all fashion areas, including apparel, accessories, watches, bags, shoes for women, men, and kids, swimwear, eyewear, cosmetics, and perfumes. Gucci products include clothing, bags, activewear, accessories, jewelry, home wear, shoes, lingerie, and hosiery.
Gucci is amongst the well-known and iconic luxury goods on the globe. Gucci operates in every Conner of the world. Gucci’s global revenue share in the year 2020 by region includes 44 percent Asia Pacific, 22 percent Western Europe, 22% North America, 7% Japan, and 5% the rest of the world (Valdivia, 2020). Giorgia Armani, an Italian Luxury fashion company share amounted to 2.1 billion euros in 2018 (Donzé, 2018). Armani revenue share by region includes 19.87% in the United States, 14.54% in Italy, 10.37% in the United Kingdom, 5% in Germany, and 4.62% in Russia.
GUCCI Company past strategizes on inclusivity: the company ensured that its products appeal to everyone, rather than single-gender. Gucci balances production by dividing the products by 60% classic styles and 40% trend-centered articles. Gucci uses a mix of demographics to know segmentation variables and produce better products than current products in the fashion industry. Armani used psychographic and demographic segmentation strategies; segmentation was based on variables such as gender, attitude, age, income, behavior, etc. The company uses a strategy of selective targeting to produce products that appeal to the targeted customers. Under demographic segmentation, the company targets upper-middle-class business executives and youth. Under psychographic, the company has identified customers who live a specific lifestyle, are fashion-centric, and are not cost-sensitive.
Emerge of digital technology, and social media has brought a chance of digital marketing commonly used by luxury and fashion companies (Dasgupta & Grover, 2019). Media channels such as Instagram, YouTube, Twitter, and Facebook are irreplaceable parts of any leading fashion company in marketing the products. Gucci promotes its products on Facebook including, shoes, accessories, and dresses. Gucci also uses Instagram and Twitter for marketing. Gucci also uses banners, print media, and look books for marketing. Armani uses lifestyle magazines, entertainment TV channels, journals for women, lifestyle TV channels, billboards, and Citi lights. Gucci Company purchases a minimum of six hours per week for advertising through TV channels; the company uses around 80% of weekly hours to advertise through other social media. Armani purchases four hours per week for advertising through lifestyle TV channels and entertainment TV channels and uses 77% of the weekly hours on other social media Advertisements.
According to SWOT Analysis, some of the Gucci analysis includes; strong brand image, effective distribution globally, a strong value chain, a vast product portfolio, excellent marketing, and advertising, and an excellent online presence. One of the significant weaknesses Gucci company faces are; sexuality in advertising; Gucci primarily uses sexual innuendos that have encountered a lot of criticism over many years. Counterfeiting and trademark infringement is another weakness Gucci faces again and again (Yun, 2018). According to SWOT analysis, includes; personality and unique design, unique cut, and significant features of Armani products are hand-stitched. Some of the Armani weaknesses include; limited worldwide presence, and PETA activists resisted the brand, which created a bad image of the company. Gucci’s major threats to the Unique Fashion Company include; Gucci aims youth segment, huge product portfolio, effective distribution and tie-up across the world, good online presence, and effective distribution worldwide. Some of the major threats Armani poses to Unique Fashion Company are personal and unique design. Armani can extend their market to the bottom of the pyramid. Most of the Armani staff are youths, which makes it design more attractive products. These tie-ups have helped the company to open more stores globally. Some of the potential opportunities created by Gucci and Armani companies to the Unique Fashion include; market target, both company targets mostly middle class and luxury people. This creates an opportunity for the neglected economic classes and groups; the cost of products from both companies being well known worldwide is high; this is also an opportunity for the Unique Fashion Company.
Unique Fashion Company encounters stiff competition from other global fashion companies such as Gucci and Armani. Gucci and Armani have a significant market revenue share across globally. Unique Fashion Company faces a lot of threats from Gucci and Armani. However, there are opportunities created by Gucci and Armani to the Unique Company, such as low-class target and price of the products.
