Marketing and Its Segmentations

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Marketing is a strategy that firms use in order to identify their potential customers. It is therefore an integrated process in which the product values and attributes are excellently offered to attract consumers in the market. Different firms use different marketing strategies to reach out for their potential consumers and market their products. As a result, different outcomes are attained since the market intensity of the method used differs. This paper seeks to analyze the marketing activities of Lipsy London and Gucci, the two leading high street fashions companies in Europe.

Market positioning

Both Lispy London and Gucci offer high class clothes, shoes and handbags designs for women in Europe and also to the rest of the world. In order to effectively position themselves in the market, they use the well known fashion designers in the world. They also use celebrities in marketing their products into the market. The positioning helps the firm to establish a close connection with its potential consumers. It also enables the firm to effectively read the minds of its consumers and timely act on them.

Market positioning is a powerful tool since it assists a firm to build its own image. An image usually distinguishes firms as it offers a unique representation in the market. If well established the image will consequently market the firm’s products. The positioning is also developed by the kind of cloth designs that a firm designs. Design uniqueness can therefore be used to enable a firm to stand out from the many firms in the industry.

It is therefore quit important that firms follow their tastes and preferences when positioning themselves in the market. This is because such moves lead to firm’s self fulfillment. It also frees the firm in its operations due to a clear focus. Considering the two high street fashion firms each has its unique image on the market. For instance Lipsy London mainly specializes with bikinis and summer dress outfits which are mostly used during the summer seasons.

Their quality, designs and colors has always stood out of the many firms which specialize in that sector. For Gucci Company more emphasis has been on some body outfits which match the client’s complexion. The two companies has therefore created different image to their respective consumers. The two have also excellently managed to influence their consumer’s perception the brand and products they offer into the market. Each firm therefore advantageously benefit from its unique production line without much of its rivals competition.

The two organizations can therefore be said to dominate the outfits of the major towns and streets in Europe and also in the rest of the world. The firm’s products can also be marketed in the highly ranked movies and productions theaters around the globe. Proper positioning assists the companies to rely positive message to the potential customers around the globe. A close analysis of the two firms indicates that they use a self-positioning strategy which keeps them away from their competitors. Their products differentiations allow the consumer determine what to buy or what not to buy. The firms have therefore chosen to believe in the products superiority in the market.

Customer Targeting and positioning

This is a unique way of dividing the market into smaller segments, which possesses similar characteristics and needs. As a marketing tool, the firm clearly defines its products in order to suit the specific market. Consumer targeting on the other hand is a selection of an identified market segment in order to efficiently market the products in it (Weinstein, 2004p.62). The firm therefore uses the distinctive features which are commonly available in the identified segment to pursue its marketing objectives as they may suit the available consumers. In this case the Lipsy London specifically targets the consumers who regularly visit the various prestigious beaches that we have around the globe.

In addition the company also targets the funs and lovers of the beach parties and crusaders. The bikini outfits are also targeted to the top fashion models who contests in beauty and modeling competitions. The company’s close association with the top celebrities in beauty, modeling and musical world has greatly marketed the products within the same professional line. Gucci on the other hand has dominated in the esteemed working class market. Its fashionable and decent outfits have won the support of many reputable women around the globe. Its continued sponsorship in beauty contest has been a remarkable tool in marketing most of its products into the market.

Some of the importance of consumer targeting and positioning is that it enables the consumer to obtain more information concerning the products and the company. This is because the marketing team will intensively interact with its potential consumers, informing them the benefits which accrue due to the use of the company’s products. As a result of this awareness consumers will be lured to increase their sales and consequently increase the firm’s profitability.

Additionally, new consumers will be attracted by the increased information in the market. When positioning the products into the market the team will not put more emphasize on the products features but will instead concentrate on the product benefits. Since the industry has many competitors, unique selling proposition will be adopted in order to win the market. The firms will also try to communicate some of the added benefits that the firm’s product will offer which distinguishes it from the other available products in the market (Schiffman & Kanuk, 2004p.12). Some of the unique characteristics that firms may use in positioning themselves include the latest designs, colors and sizes that the firm may be willing to offer in the market.

In order to reduce the marketing costs, the firm mostly focuses on the identified target markets. The move therefore aims at reducing the market size under which the firm wills major its activities on. Market targeting is a cost efficient way of marketing the firm’s products. The communication channels are also selected in order to suit the target market. The human resource required to facilitate the marketing activities will be reduced as the firm narrows its market targeting. The less labor force will greatly reduce the firm’s cost and therefore increase the profitability level.

Products or services offered

Lipsy London Company has its reputation in the production of summer dresses and bikinis. The company has being in the forefront in design inventions, a character that has enabled it to be among the renowned latest high street fashion designers. Their dresses and bikinis take different sizes, colors and designs that assist the firm to suit well in the market. The different sizes enable the firm to have an all-inclusive marketing. The firm’s products can therefore efficiently satisfy people of different sizes.

The products different colors enhance the firm to satisfy the needs and tastes of the consumers in the market. Since different consumers have different complexion, the firm efficiently ensures perfect match by designing different products and colors. The firm also undertakes professional designing services to the willing and potential clients. The service department in this case aims at ensuring that the firm’s clients are uniquely served to their satisfaction. Among the potential clients that the firm majors its services to include the international artists and models. The service is also extended to other international celebrities who stand career wise or by exploiting their talents.

Gucci on the other hand offers a variety of women products, which includes fashionable dresses, shoes, handbags and clutch bags. They also design decent office attires for women. In order to efficiently suit the tastes and preferences of its consumers, the firm uniquely differentiates its products from the competitors. Among the differentiating factors that the firm use includes product materials, colors, sizes and designs.

Since the company has a variety of products, it becomes easy to market its products. This is because there are those consumers who like a single product that the firm produces. Convincing such consumers to buy another product from the same company will be easier than approaching a new consumer. The consumer who likes the image of the company can end up becoming regular customers of the firm. The uses of top designers who are well known to the rest of the world also boost the company sales. Latest designs and quality outfits have always been emphasized in Gucci productions.

In most cases, the two fashionable companies just differentiate their products through packaging and pricing. Every company in this case has a different packaging technique, which bears the firm’s brand name and logo. The brand name and logo are in this case supposed to psychologically convince the consumers on the product superiority and company strength.


This is the automatic and manual way of fixing a selling price to a product. It is used in the marketing mix strategy where the firm seeks to generate revenue from its productions. Price can either be fixed or discounted depending on the prevailing firm’s intention. In most cases the firms permanently fixes the price for easy accountability and recording. Fixed price assists the firm to project revenue, costs and profits for a given period of time.

On the other hand a firm may opt to use discounted pricing in order to lure people to purchase more of its products. The main intention for the discounted pricing is to boost the product sales within a given period of time. Pricing is important in facilitating the satisfactions of a consumer. This is because unless the needs are translated into demand, there can be no sales. The consumer willingness and capacity to buy is determined by the product pricing. Pricing is therefore important in market determinations. The major pricing strategy that a firm can use to develop a price for its products is market differentiation strategy.

This encourages a thorough market analysis which assists the firm to price its products differently depending on the capability of the consumers in that market (Baker, 2006p.198). Under this strategy the firm will charge different prices on similar products. This strategy has been used efficiently by Gucci Company as it has different prices for its products depending on the market segment. The price that the company uses on the celebrities and other renowned figures is usually high compared to the price charges to other potential consumers around the globe. The price charged by the company branch in London also differs to the one charged to the company regional store in the Mexican cities.

Pricing is also greatly determined by the marketing mix in which the firm is operating in. the main reason why the prices of competitors influences the firm’s pricing is to enhance competitiveness. Firms which enjoy similar market status and reputation will tend to use similar or relative prices on their products. The relativity enhances the competitiveness in the market. Most of the well known high street fashion designers charges relative prices for their products. Gucci and Lipsy London companies therefore tend to have similar prices attached to their products, since they enjoy similar status in the global market.

The distributional costs also determine the pricing process. In this case firms which incur high distributional costs will price their products relatively higher than those with lower costs. This is because the firms usually tend to recover such costs from the profit margin.


It is an information dissemination technique which enables firms to efficiently and effectively market their products. There are various communication channels which a firm can adopt in its marketing process. Among the major communication channels that are used by the high street fashion designers includes the television (broadcast) and internet channels. The two channels are usually preferred since they enable the firms to reach out to many of their potential consumers around the globe. In the resent period the internet (website) channel has increasingly been used as it’s cost effective and also has a wide coverage.

The broadcast channel however continues to be used especially to air the sponsored events such as modeling contests. Communication is therefore used to influence the potential consumers and lure them to purchase a particular product. Since the current era has been dominated by internet access, it has become easier for the firm to market their products through it. All the firm is required to do is to develop a website on which it can use to reach out to its customers. Though website development is expensive, firms prefer it as it is a one off expense for them. After successfully developing a website, there are lesser costs that the firm will undertake while marketing through it. The site also enables the firm to market its products in details thus boosting the awareness level.


The products and services are made available to the firm’s consumers through a channel. Distributions therefore act as extra costs to the company. It mainly occurs if the production firm is separately located away from the market. Lipsy London uses regional distribution channels to reach out its consumer’s worldwide. They have therefore established regional stores around the globe where all their products can be bought form.

Regional distribution is a selective way of marketing the firm’s products since only the consumers around the regional stores can access the firm’s products. However Gucci Company uses an intensive distribution channel that makes their products to be easily available in the market. The company uses the wholesale and retail outlets to reach out to their customers (Rushton, Oxley& Croucher, 2000p.56).

This method boost sales as the customers can easily access the products in the market. This distribution method also encourages quantity sales as company bears most of the cost. It also normalizes the products cost as the huge distribution cost is consumed by the firm and not by the distribution agents. Gucci has therefore gained popularity in the world compared to Lipsy London just because of the intensive distribution channel that the company uses.


In order to maintain increased sales, it is important that a company employ efficient and effective marketing strategies. Before a company identifies the right marketing strategy, it should first analyze its market place. This is because it is only through a thorough analysis that a firm may develop a workable plan. Market positioning therefore gives the firm an image to its potential customers. The image consequently defines the product qualities and characteristics. Market targeting is also an important marketing tool since it enables the firm to allocate its marketing resources efficiently.

Additionally, enables the firm to use the distinctive features, which are commonly available in the identified segment to pursue its marketing objectives as they may suit the available consumers. Pricing is therefore important in market determinations as it determines the consumer willingness and capacity to purchase a give product. Firms should therefore price its products well in order to encourage more consumers. Finally, the firm should ensure that it avails its products to the consumers. Intensive distributions method should therefore be used in order to enhance product accessibility. This distribution channel also helps in price stabilization, which encourages the consumers to even buy more. The channel therefore boosts the firm sales.

Reference List

Baker, R.J., 2006. Pricing on purpose: creating and capturing value. New Jersey, John Wiley and Sons. Web.

Rushton, A., Oxley, J. & Croucher, P., 2000. The handbook of logistics and distribution management. London, Kogan Page Publishers. Web.

Schiffman, L.G., & Kanuk, L.L., 2004. Consumer behavior. Hong Kong, Pearson ltd. Web.

Weinstein, A., 2004. Handbook of market segmentation: strategic targeting for business and technology firm. London, Routledge. Web.

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