I will pay for the following article Gucci and Prada Strategies. The work is to be 4 pages with three to five sources, with in-text citations and a reference page. Gucci and Prada utilize the model in an effort to increase their market shares while at the same time retaining existing customers. The two companies are rivals in a number of products. Their luxury status deters them from using the cost-leadership approach. In this market price directly represent the quality of a product. There is a need to outshine the competing firms by introducing goods that unique and fits the customer’s requirement. The two firms utilize the approach in an effort to maintain their profit margin while venturing into new markets.
The two rival firms focus on unique products to attract customers. Gucci for instance introduced customized bracelets and handbags to a number of its Asian market. This was a counter move by the firm to emulate Prada who offer the same service across its wider market. The move by Gucci was aimed at attracting more customers from the Asian market to compensate the European market widely dominated by Prada. The unique service to the Asian market is aimed at increasing revenue by widening its market size (Passariello, 2015). The customized products are far much expensive compared to an ordinary good. Thus the luxury firms utilize the price factor to emphasize quality. The two firms attract the high-end market by unique and expensive goods in the market. The firms depend on the loyalty and of customers and new components in the market to promote their goods. This strategic plan allows the firm to directly connect to its clients and offer services based on the customer’s request.
Target Markets
The two firms the high-end market by offering services and goods with unique characteristics. Their ventures across the world target high-income earners and celebrities across the world. This means that they offer a wider range of products to the same market group. The aim of the two firms is to create a loyal client base and satisfies their needs while at the same time increase the company’s revenue collection. Accessories and clothing from the two firms aim to outshine each other across the world (Passariello, 2015).
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