Marketing Essentials: Comparing 7Ps of Marketing Mix and Formulating Strategic Marketing Plan

This report presents a comparison between two organizations based on 7Ps of marketing mix and developing a strategic marketing plan to achieve business objectives. It discusses the product, price, place, promotion, people, physical evidence, and process of Burberry and Hermes. It also includes a strategic marketing plan for Burberry, including its mission, vision, objectives, PESTLE analysis, SWOT analysis, segmentation, targeting, positioning, marketing mix, and budget. The report concludes with the importance of marketing strategies in promoting products to target customers.

Marketing essentials

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART-1............................................................................................................................................3
PART-2............................................................................................................................................3
Comparing the 7Ps of marketing mix with the competitors........................................................3
Formulating strategic marketing plan..........................................................................................6
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing strategy refers to the strategic tools used by the organization in formulating its
business plan. In this report, Burberry is taken, which is a luxury fashion brand in UK. This
report presents a comparison between two organization based on 7Ps of marketing mix and also
developing the marketing plan to achieve the business objective.
PART-1
Covered in PPT.
PART-2
Comparing the 7Ps of marketing mix with the competitors
Basis of comparison Burberry Hermes
Product The core segments of Burberry
products is beauty, men and
women clothing, kids clothing,
beauty products etc. In
fragrance collection it incudes
Burberry touch, Burberry Brit
etc. Approximately, 20% of its
sales comes from men wear
and remaining from women
wear (Kotler and et.al, 2019).
Hermes uses customization in
order to grow in the market. It
also focusses on diverse
product range which includes
jewellery, watches, fragrances,
bags, apparels and accessories.
It also provides home care
products.
Price It uses premium pricing
strategy for selling its
products. It is a luxury brand
so it does not directly compete
on prices. The price is set as
per the willingness of the
customers.
Hermes has also adopted
premium pricing strategy to
target luxury customers
(Sayed, 2019). It also does not
provide any discount to its
customers on any events.
Place It has 475 stores across 50
countries and are mainly
situated at the highly
It has a wide distribution
channel. It also has a
worldwide presence in location

populated areas which is its
target audience.
like Europe, USA and Asia
Pacific (Haque, 2017). This
has helped in expanding its
customer base. It sells its
products through its 307 shops
across the world and also has
an online presence.
Promotion Burberry mainly focusses on
its marketing activities. It
advertises its products on the
high end magazines in order to
target the specific audience. It
uses different modes of
promotion like TV, billboards,
radio, print media etc. It has
also effectively used social
media sites for promoting its
products. It has invested huge
amount in digital marketing.
Burberry is mostly relied on
the celebrity endorsements.
Hermes does not have any
brand ambassador in order to
promote its products. Its
promotion takes place from the
persons who uses its products
who are well known celebrities
and very rich people. To
maintain its core value, it does
not believe in promoting its
products on mass media. It
mostly advertises on print
media. It has also named it
bags on celebrity such as Kelly
and Berkin bags which is
named after Grace Kelly and
Jane Berkin.
People Burberry has an effective sales
team which plays a vital role
in marketing. It has provided
proper training to its sales
team along with the techniques
to persuade customers to buy
the product. It has also
Hermes also has a well trained
sales and marketing team
which helps in promoting its
product to desired target
customers. It has people in the
stores that helps customers by
resolving their queries

maintained a good relationship
with its suppliers which helps
in ensuring that high quality of
raw material.
(Hermès Marketing Mix (4Ps)
Strategy. 2020). It also has an
effective customer service
department which works in
any issues faced by the
customers.
Physical evidence The products sold by Burberry
are diverse and distinct in
terms of colours which can be
easily identified. It also has a
unique logo which distinguish
it from its competitors.
Burberry also has its online
website which is easy to use
and allows customers to
review its products.
Hermes also has a distinct logo
which separates it from its
customers. It also has a distinct
packaging and design. Its
online website also states its
physical evidence.
Process Burberry always ensure that its
products are easily available to
all its customers by making its
products always available in
the stores. It also has a well
structured online delivery
process from which orders can
be easily received and shipped
to the service provider.
Hermes is continuously
involved in the market
research in order to grab
opportunities as per the
changing customer needs
(Abdul-Hamid and et.al,
2017). It also has an active
feedback and helpline system.
From the above, it can be said that both the organization has used marketing mix
effectively and in an organized manner in order to achieve business objectives effectively. They
are used methods as per the trends which will help in attracting more customers.

Formulating strategic marketing plan
Company Overview
Burberry is a British luxury fashion brand, headquartered in London, UK. It focusses on
distributing trench coats, fashion accessories, beauty care products, bags etc. it was established
in 1856. It has products for both men and women and kids.
Mission and vision
The mission of Burberry is to maintain integrity and vitality of its brand and to develop
and grow the business which will remain relevant for the evolving market and the changing
consumer tastes.
The vision of Burberry to become the first one to be fully digital and to build social
enterprise.
Objective
 To introduce a new range of clothing that is made from more organic material.
Pestle analysis
Political factors (High): The major political factor that may impact the entire industry
is the Brexit. This has left uncertainty in the business environment which has affected the
planning process of the organizations (Aithal, 2017). This may increased the cost of import and
export which will increase the cost of product. This factor will have a huge impact on
introducing new clothing range in the market.
Economic factors (Less): The emergence of Brexit will bring either inflation or
recession which will affect the demand of the product. It will also reduce the purchasing power
of the customers. But it will have less impact on Burberry because its target customers will be
ultra rich people and celebrities which will not get impacted.
Social factors (Moderate): The target customers of Burberry are from different cultures
and lifestyle which affects the demand of its product. This factor is required to be considered
while distributing goods (Burberry PESTEL Analysis. 2017). Thus, while introducing new
clothing range the specific customer segment needs to en taken into consideration.
Technological factors (Less): It revolves around technological advancement. Every
other day a new technology evolves and creates a need to implement it. Burberry uses the latest
technology for promoting its products and services. It has its online shopping channel which
increases its efficiency level. Also, its fast delivery process gives it a competitive advantage

over others. Thus, this factor will have less impact on Burberry new product introduction.
Legal factors (Moderate): The legal challenges faced by the organisation are the
increasing demand for higher salaries by the staff for basic job which does not require any
specific skills (Varley and et.al, 2018). The major law affecting it is the labour laws and
employment laws. Thus, this factor will highly impact the Burberry in introducing new clothing
range in the market.
Environmental factors (Less): With the increasing awareness and pressure from the
consumers has forced organizations to take step to reduce the negative impact of business
operation from the environment. The products of Burberry are made from highly organic
material that will have no negative impact on the environment. Thus, this factor will have less
impact on Burberry.
SWOT analysis
Strengths
 Strong brand image and global
presence.
 Upper and ultra rich customers.
 Distinctive products.
Weaknesses
 Dynamic market condition.
 High operating cost.
 Limited customer base.
Opportunities
 To expand the business on online
platform (Burberry Group SWOT &
PESTLE Analysis. 2019).
 To target the changing lifestyle and
preferences of the customers.
Threats
 Intense competition with the other big
giants.
 Easy product imitation.
 Fast and ever changing fashion.
Segmentation, targeting and positioning
Segmentation: Burberry for introducing new product should segment its market which
is initially for the UK market, for all age group form men to women and kids. It targets
customers with high on lifestyle.
Targeting: The target group of Burberry will be upper income class people and royal
families and based on which specific marketing strategy will be used (Camilleri, 2018).

Positioning: Burberry will position its product by using its USP which is it is made up
of organic material which is not at all harmful to the customers as well as the environment.
Marketing Mix
Product: The new product is made from the organic material which is especially
designed for rich people and it has wide range from men to women and kids.
Price: The price of the new product will be very premium as it is for premium
customers.
Place: Initially it will be made available to the customers of UK and through its online
portal and will also be available in its stores.
Promotion: This new product range will be promoted through advertising on the
magazines and celebrity endorsement which will help in targeting the desired customer
segment.
People: The new and effective team will be made which will be dealing with this new
product range and will work on increasing its sales.
Physical evidence: Burberry's logo, stores and online website is the major proof of its
physical evidence. Also, the distinct colours and packaging of its new product will make it
separate.
Process: The new product will be made available using its effective and organized
delivery service system.
Budget
Particulars Amount in £
Awareness
 PR firm/ contractors
 Analyst subscription services
1500
Marketing campaigns
 Webinars
 Ad Retargeting
 Direct mail, paid search
 Promotional brochures
5000
Tools 800

 Blogging platform
 Marketing app
 Email marketing
Market research
 Surveys
 Third party sponsored research
2000
Total 9300
Monitoring
There are different types of monitoring system that can eb sued by the company. Some
of them are stated below.
Benchmarking: In this, a standard is set by the organization based on which the
performance is evaluated. This help in comparing the outcome of the actual with budgeted and
if there are any deviation then corrective actions are taken to identify the reason for it and
reducing the gap.
Key performance indicator: In this, certain targets are set to measure the performance of
the business. It includes targets such as attaining certain level of sales, increase in conversion
rate. It helps in evaluating the performance of each individual as well as organization as a
whole.
CONCLUSION
From the above, it can be concluded that different marketing strategies are used by the
organizations in order to promote its product to the target customers. A detailed marketing plan
is carried out in order to analyse the factors that may impact the business based on which
planning is done.

REFERENCES
Books and journals
Abdul-Hamid, I. K. And et.al, 2017, June. Sustainability Marketing: The 7ps Perspectives. In 5
th International Conference on Contemporary Marketing Issues ICCMI June 21-23,
2017 Thessaloniki, Greece (p. 595).
Aithal, P. S., 2017. Company Analysis–The Beginning Step for Scholarly
Research. International Journal of Case Studies in Business, IT and Education
(IJCSBE). 1(1). pp.1-18.
Camilleri, M. A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Kotler, P. and et.al, 2019. Marketing management. Pearson UK.
Sayed, N. A., 2019. Fashion Merchandising: An Augmented Reality.
Varley, R. and et.al, 2018. Fashion management: A strategic approach. Macmillan International
Higher Education.
Online
Burberry Group SWOT & PESTLE Analysis. 2019. [Online].Available
Through:<https://www.swotandpestle.com/burberry-group/>.
Burberry PESTEL Analysis. 2017. [Online].Available
Through:<https://businessteacher.org.uk/pestel/burberry.php>.
Haque, F., 2017. Marketing Mix of Hermes. [Online].Available
Through:<https://www.thestrategywatch.com/marketing-mix-hermes/>.
Hermès Marketing Mix (4Ps) Strategy. 2020. [Online].Available
Through:<https://www.mbaskool.com/marketing-mix/products/16803-hermes.html>.
1