Marketing Essentials

This report discusses the functions and aspects of marketing in the background of Burberry. It covers the elements of marketing mix and presents a basic marketing plan for market expansion. The report also includes a situational analysis of Burberry and its objectives.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Covered in PPT.......................................................................................................................3
TASK 2 ...........................................................................................................................................3
P3 Comparison of marketing mix...........................................................................................3
TASK 3............................................................................................................................................8
Basic marketing plan..............................................................................................................8
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Marketing is defined as the procedure in which various activities are being exerted by the
business so that to intensify their market presence. Marketing is defined as the process which is
helpful in interrelating brand and their popularity within marketplace so that offerings of the
business can be intensified in such a way that respective brand image in significant manner.
Marketing is considered as one of the significant function which is helping the business to
survive within market complexities in order to rise as renowned business concern. Marketing is
executing differential functions in the industry of retail as functions of marketing are directly
aligned with goals and objectives of the business (Luchs, Swan and Creusen, 2016). This report
is associated with various functions and aspects of marketing in the background of Burberry.
Burberry is an international retailer which is dealing in fashionable clothing, accessories, eye
wear, cosmetics and fragrances. In this report detailed explanation regarding departmental
interrelationships are covered. Besides this the report is discussing elements of marketing mix in
reference of Burberry and Zara. In the last part of this report marketing plan is prepared in order
to develop market expansion and to align business objectives.
TASK 1
Covered in PPT.
TASK 2
P3 Comparison of marketing mix
3

Marketing mix Description Burberry Zara
Product Product can be defined as
physical goods, services
or experiences (Omar,
2017). Products satisfy
demands of people in the
market and sometimes
impress consumers by
exceeding their
expectations.
Burberry has
specialisation in
fashionable and trendy
clothes that are
admired globally due
to their unique designs
and great materials.
Trench coats are the
products which have
founded by founder
and they still are
trending in the market.
They provide products
of great quality with
latest designs and long
lasting durability
which make them
famous in international
market also. They get
major success through
their styles, different
designs and qualities.
Zara is a company
which does not
outsource its
production process and
have full control on
items it manufactures.
It sells the latest style
to customers. Their
stores get updated in
every two week by
new products. But in
some countries they
have to produce
products according to
the cultural needs of
local population. It
produces products
which are needed
mostly by fashion
enthusiasts.
Place Place is defined as
distribution and access of
products and services to
consumers. It can be
warehouse, retail stores,
e-commerce websites and
many more. It
The brand has its
stores located in more
than 500 locations in
50 countries. It has
opened various
franchises and retail
shops through third
Zara is very different
from other brands due
to its vertical
integrated retailer. The
brand itself designs,
produces and
distributes. It is done

concentrates on providing
accessibility to
consumers.
party. It has very
efficient coordination
among stores located
in different locations
through advanced
technology. They have
chosen locations to
target premium
consumers.
very easily by itself
because it has become
latest fashion stores
worldwide. It has
made its presence over
30 countries and
continuously
expanding. Over 90%
shops are owned by
Zara only and
remaining are joint
ventures (Hisrich and
Ramadani, 2017).
Customers experience
same environment in
every store of different
countries.
Price It refers to the cost of
products and services.
Price reflects the value of
goods and services and
customer willing to pay
price for that particular
product or service.
Burberry manufactures
and sells luxurious
products with great
craftsmanship and
creative designs, so
prices of products
become high and
premium to high class
people where high
prices do not matter. It
uses different
strategies of pricing
after proper evaluation
of demand by
Zara has a concept of
providing its items at a
very reasonable prices
to its consumers. They
target people who
attract towards
affordable prices. But
there stores look very
premium but it is
affordable by almost
all people. Zara adopts
the pricing strategy
which is premium and
price is also evaluated
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customers, prices of
competitors and many
more.
after considering costs
of training and
development.
Promotion It is defined as
advertisement, marketing
and usage of different
techniques of sales to
promote products among
customers and in the
market (Kenny and
Dyson, 2016). It can be
done through television,
radios, social media etc. It
reflects how company is
trying to attract more and
more consumers.
Promotional activities
on which Burberry is
highly dependent on.
Great emphasis is
done on activities of
promotion, it uses
magazines of high
class have taken to
place advertisement of
its products and visual
media used to
introduce their
products. Famous
photographers are
appointed to capture
pictures for
advertising.
Zara adopted the
policy of marketing
with zero investment.
Those funds are used
for opening new stores
in different locations.
It has made
differentiation from
their competitors
which matter to the
consumers. It has
concentrated on
marketing strategy of
differentiation and it
emphasises on
advertisement through
word of mouth.
Physical
evidence
It gives consumers to
know about the company
they are interacting or
dealing with and its
existence in the market. In
service businesses proof
can be evidence of
purchase.
For consumers
Burberry uses its
stores, franchise as an
physical evidence. Its
premium stores
located in different
locations act as a proof
of their brand in the
mind of consumers. It
also gives invoices
Zara has many outlets,
shops, stores in
different countries
which are proof for
customers. These
outlets are situated in
many locations for the
convenience of
consumers and they
can also see and

manually and send
emails to customers
which can be used as
evidence by
companies. And
through this customers
also satisfy from the
brand.
believe on these stores
for evidences. It also
provides bills and send
messages to and they
come under physical
evidences.
People Basically these are
employees and workforce
who assist selling the
products and services of
company. They are the
people who are involved
in businesses directly or
indirectly.
Under Burberry there
are many employees
and workers present
which help taking
actions to move
forward the activities
of business. They are
provided with salary
and remuneration on
time. It also organises
training for its
employees so that they
can upgrade their
knowledge and attract
more number of
consumers. They hire
local people as their
employees according
to the locations.
As Zara produces
products and does all
activities by itself, it
has more number of
employees. So it
becomes important for
it to continuously
motivate employees.
They uses rewards and
appreciation method to
motivate them
continuously. Their
motivated employees
attract higher number
of customers and
satisfy consumers with
their services. It
recruits craftsman for
its manufacture and
production process.
Process It is the last process in
marketing mix, it helps in
Burberry uses digital
marketing for
Zara uses sales
management process
7

defining series of tasks
and activities used to
manufacture and deliver
products and services
(Srinivasan, 2016)
promoting its
products. It uses social
media to promote its
products among its
potential consumers.
So basically it uses
both online and offline
processes for
promotion. For offline
it uses billboards and
online through various
social media.
for planning, selling
and reporting. Through
this process it tracks
how many sales are
done by different
outlets and stores
situated in different
locations. It also uses
self-manufacturing
process that shows that
it does not believe in
outsourcing the
production process. So
it helps in producing
high quality products
for consumers.
TASK 3
Basic marketing plan
Marketing in today’s world is the key to reach mass number of population and customers
all around the world in the most frequent manner and achieve all the organizational goals and
visions (Pulka, Ramli and Bakar, 2018). The ultimate responsibility to formulate this lies with
marketing department of Burberry. The policy for marketing is dynamic and keeps on refreshing
as the factors changes and addition of any new product or offering to the customers and to
mitigate any challenges. Marketing plan is a form of blueprint which lists the detailed steps for
how the product is going to ultimately reach the customer in most comfortable and cost-effective
manner so that large number of consumers can be covered. With respect to Burberry, they are
planning to add Junk Jewellery at the new market segment.
Company overview

Burberry is the leading fashion brand across the world, which is based out of London,
UK. The company was established in year 1956 having major focus on fashion outfit attire and
later shifted to luxury segment. The most famous and trended product for Burberry was Trench
coat made up from Gabardine variant of fabric. It has a unique feature of Breathable and
waterproof. The number of countries Burberry is carrying on its operations is 51 across the world
with 498 stores in count. It has also been recognized as world’s 73 best global brand in the year
2015. The major competitors for Burberry are Prada, Louis Vuitton etc. They all deal and offer
in various products and segments such as Clothing, accessories, Jewellery, perfumes etc.
Situational analysis
SWOT ANALYSIS
1. Strengths
 Long existence is one of the strong parts as it is being offering its various
products and services to their luxury segment of customers from last 156
years.
 Since it deals in luxury products, price is not something that effects its
demands, and neither is limitation and it can completely focus on best
innovation and satisfaction for its customers.
 It has a stable and dedicated staff for its innovations, designs, sales to
offer its products to customers in expected manner.
 It has a recognised brand value and image and is one of the leading
organizations in its range of offerings.
2. Weakness
 Since the customer segment is luxury the number of customers would be
less as compared to several other competitors offering various range of
fashion products (Egwuonwu, Adeniran and Egwuonwu, 2017). This
tends to be their weakness as it has to make a lot of innovations and price
compromises to increase their customer base and reach new populations
 The product line requires a brainstorming and innovation to come out
with something that has edge over its competitors, and this is not
available high in terms of quantity, it has variety limits.
9

 It’s been a weakness and issue that employee attrition rate is high, which
leads to increase in training costs and efforts.
 There are high product and inventory maintenance costs as the inventory
turnover ratio is low.
3. Opportunities
 As per its segment of business current customer base is small in terms of
quantity that means there exists a large opportunity to cover large number
of uncovered customers.
 Burberry can also other related business segments and start diversifying
their business segments products and offerings. Launching of this new
offerings and segments can enhance the overall profitability of the
organization.
 Customer needs are dynamic and keeps on changing which gives
Burberry an opportunity to be innovative and create unique offerings.
They can continuously enhance their ability and provide something which
gives Burberry edge over their competitors.
 Opportunity to enhance customer experiences with assistance of
technology advancements.
4. Threats
 In modern generation there is high competition and Burberry too has
leading competitors like Gucci and Prada. They cause threat to
Burberry of out running it through any of their new product offerings
and technology enhancements (Pantano, Bassano and Priporas, 2018).
 As there is a limitation on variety of products that are offered by
companies in luxury segment it may lead to customer dissatisfaction at
some point of time.
 As technology is evolving it is need of an hour for Burberry to keep
themselves up to date or else if competitors got ahead on this it might
also displace it from their stable market position.

 One of the major threats for Burberry is that it still just covers only 5%
of total population and 95% is still uncovered which is a real threat.
Objectives: Burberry carries on its activities with an objective of being an leader in the Luxury
segment of Fashion and accessories with their innovative and creative offerings and customer
experiences.
Specific: The company’s target customers are rich people and they continue focusing on that by
giving the innovative offerings and comfortable and smooth experiences to them.
Measurable: There is practice followed by Burberry to evaluate its performance based on
various measures of performance and then compare the same with performance and results of
their competitors.
Operational Experience: The major and prime focus for organization always lies on
simplifying and enhancing efficiency of work operations and make them smooth by using
advance technologies.
Inspired People: It is important to keep the workforce motivated and which makes them invent
large portion of funds in capabilities and talents.
Digital: To regularly enhance the customer experiences positively they must go digital with the
concepts such as storytelling.
Strategies
 Segmentation: Burberry has always been focused on Luxury fashion segment from the
initials and just keep on dedicating their efforts towards it (Schaffmeister and Haller,
2018). They have the vision to lead and excel in their field ahead of all their competitors
and exceed their customer expectations.
 Targeting: They have a very straight forward policy to target the specific group of
people i.e. rich people preferring luxury products without cost being an affecting factor.
 Positioning: Burberry is currently a among the leading luxury fashion brands across the
world and is often part of various renowned fashion publications.
Marketing Mix
11

 Product: They have variety and range of innovative and creative products those are
offered to their target customers as per their preferences.
 Price: Price range is on higher side and are mostly meant to target rich consumers with
no money constraint. It is not affordable by almost 95% population.
 Place: They are operating globally across 51 countries with 498 stores and outlets around
the world.
 Promotion: Preferred mode of promotion for Burberry is fashion magazines, shows,
stages etc.
Cost Allocation
Cost: Cost to produce new product is discussed below:
Particulars Amount (€)
Marketing 21000
Design 40500
Raw materials 25500
Evaluation and Control
To complete the process of launching their new product Burberry must largely invest on
design part of product as it takes professionals to come out with something unique to make sure
that it meets their customer needs and worthy of price (Kimura, 2017).. For evaluating their
whole marketing plan, they can use market share analysis tool where research is conducted to
come out with market covered and catering of the new products that is being offered.
CONCLUSION
From the above given concepts and theories in this report marketing is key part for success
of any organization and its business activities. The responsibility to carry on smoothly rests with
marketing department of Burberry to make sure that they keep focusing on their target group of
customers and parallelly also try to attract and add new range of customers for their new
products and offerings and expand their business operations. It is primary force for any business

organization to carry on marketing activities effectively and efficiently to be clear of their
customer expectations and adequately respond to same. This would ultimately help in improving
the quality of their product offerings and also enhance customer experience and their level of
satisfaction.
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REFERENCES
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Entrepreneurial Management (pp. 75-99). Springer, Cham.
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