Ansoff Matrix of Gucci

Gucci SPA is a luxury fashion house and retail chain clothing Italian multinational company. Guccio Gucci founded the luxury fashion brand in 1921. Today, we’ll discuss the Ansoff matrix of GUCCI; and its four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification growth strategy of Ansoff matrix business example.

Elements of Marketing Penetration Strategic Campaigns of Gucci

• Retal store marketing
• Actively participating in the global sustainability initiatives
• Social and digital media platforms
• Precise product placement of fashion products on the right shelves
• Exclusive items
• Limited time offer
• Influencer makreting
• Celebrity endorsemnt

Top Selling Markets and Geographical Regions of Gucci

• Asia Pacific – 39%
• Western Europe – 24%
• North America – 23%
• Japan – 7%
• Worldwide – 7%

Latest and Best Selling Collection of Gucci

• Supreme Canvas GG Belt Bag
• Oversized sunglasses for summer
• Soho Disco Bag
• Bloom perfume and scent for women
• GG Logo T-shirt for casual wear
• Dionysus Bag with top class material and finishing
• Fashion belt wih iconic GG logo
• Horsebit loafers
• Ace sneakers for fashion lovers
• Marmont shoulder bag

The Ansoff matrix of GUCCI would focus on the four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification. Here’s the GUCCI Ansoff matrix company example as follows;

Ansoff Matrix of Gucci

Let’s discuss the four growth matrix strategy analysis quadrants of the Ansoff matrix of Gucci as an Ansoff matrix company example; they’re as follows;

Market Penetration Strategy of Gucci

The market penetration quadrant in the Gucci Ansoff matrix business example as a growth matrix strategy has the lowest risk in the growth strategy. It is because here the fast-fashion brand sells its current products and services in the existing customer market. However, the luxury fashion market is growing, and the market penetration growth strategy is possible.

I-Advertisement Campaigns

Gucci runs various types of marketing and advertisement campaigns for the promotion of its fashion clothing, accessories, and beauty products. The luxury fashion brand employs various media channels, digital media, and social media platforms to further penetrate the customer market. However, it helps the company sell its existing fashion product portfolio to new customers in the market.

II-Discount Offers

Gucci is a luxury premium fashion brand. In order to increase sales and attract the attention of new customers in the current market; Gucci launches various types of discount offers, promotional deals, bundle offers, and limited offers ton its luxury premium fashion clothes, bags, shoes, and other products.

III-Brand Ambassadors

Gucci hires the world’s top celebrities and public figures like Dakota Johnson, Harry Styles, and others as its brand ambassadors. Along with celebrities; the brand also collaborates with leading fashion designers like Daniel Arsham and Dapper Dan. They have a huge fan following and their product endorsement further penetrates the markets and attracts new customers.

IV-Environmentally Sustainable Fashion

In order to keep up with the environmentally sustainable trends; Gucci has taken various steps like organic and eco-friendly materials, limited carbon emissions, and reducing wastage with fast fashion. It is a great strategic approach to further penetrate the environmentally conscious customer market.  

Market Development Strategy of Gucci

The market development quadrant in the Gucci Ansoff matrix business example as the growth matrix strategy has a bit higher risk than the market penetration strategy. It is because here you expand your luxury fashion market and offer your current product portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Market Expansion

Gucci has established a network of 528 stores in various countries across the globe. The luxury fashion brand is planning to open new stores in new geographical regions and markets across the globe. It helps the company to give exposure to its brand and offers its products to new customer markets.

II-Alliance and Partnerships

In to expand its customer market and offer its products in new markets; Gucci develops strategic alliances and partnerships with other brands and stores North Face and others. It helps the company to amplify its market and sell its existing products to new markets.

Product Development Strategy of Gucci

The product development quadrant in the Gucci Ansoff matrix business example as the growth matrix strategy has a higher risk than the market penetration strategy. It is because here you launch a new product service in the fashion line for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-Collaboration with Designers

Gucci hires the world’s leading fashion industry designers and artists to develop and launch new designs and styles in the markets and gain a competitive edge. It requires the company to allocate a significant amount of budget to its creative and artistic departments. As a result, the luxury fashion brand introduces new fashion designs and styles in retail clothing, shoes, handbags, and other categories.

II-Sustainable Material

Gucci is investing a significant amount of capital resources in the sourcing and development of environmentally sustainable materials. The objective is to decrease the environmental waste of the fashion industry; reduce the carbon emission rate, and engage in sustainable practices throughout the supply chain network.

Diversification Strategy of Gucci

The diversification quadrant in the Gucci Ansoff matrix business example as a growth matrix strategy has the highest risk growth strategy of all three previous growth strategies. It is because here you launch a new retail luxury fashion clothing product or service in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

Gucci has successfully expanded its retail business and luxury fashion products over the years. The brand has been running its business in the fashion industry for the past 103 years. However, the fashion brand further plans to expand its business and product and service portfolio in the new areas. It is a risky growth strategy, but the luxury fashion brand has a resource and expertise to execute it successfully.

Conclusion: Gucci Ansoff Matrix Company Example | Ansoff Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of Gucci; we have realized that Gucci is the world’s leading premium luxury fashion brand. If you are learning about the Gucci Ansoff matrix company example; then you should keep in mind the abovementioned growth matrix strategy quadrants; market penetration, market development, product development, and diversification.