Marketing Strategies and Plans of Burberry and Zara

The provided report compares the marketing strategies and plans of Burberry and Zara, covering various aspects such as product, price, place, promotion, people, process, and physical evidence. It also presents a basic marketing plan for Burberry, including segmentation, targeting, and positioning strategies, among others.

MARKETING ESSENTIALS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO 1.................................................................................................................................................1
Covered in PPT...........................................................................................................................1
LO 2.................................................................................................................................................1
Comparison between marketing mix of Burberry and Zara........................................................1
Basic marketing plan of the organization....................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing refers to a detail process of delivering the product or services to the existing as
well as to targeted customers. Marketing includes various activities such as developing strategies
related with product, price, place and promotion. So that, sales of the company will increase.
Burberry belongs to fashion industry. It was founded in year 1856 by Thomas Burberry. The
headquarter of company is located in London, United Kingdom. The key products of Burberry
are accessories, cosmetics and clothing etc. The Report will outline the comparison between
organizations in respect of marketing mix and it will also describe the basic marketing plan of
the organization.
MAIN BODY
LO 1
Covered in PPT
LO 2
Comparison between marketing mix of Burberry and Zara
The marketing mix of company describes about the marketing strategies of the
organization. Following is given the comparison between the marketing mix of Burberry and
Zara. The elements of marketing mix are product, price, place, promotion, people, process and
physical evidence.
Marketing
Mix
elements
Burberry Zara
Product The products of Burberry are
segmented as men, women, kids,
beauty and accessories. Burberry
offers high quality products to its
target customers. Its products are
highly differentiated having various
features and are considered as unique
Zara offers products for women, men
and children. The product range includes
tops, trousers, jeans, skirts, t-shirts, bags,
shoes and accessories (Sharp, 2016). The
company aims at launching around
10000 new and creative designs in a
year.
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as well.
Price Burberry sets the product price using
competitive based pricing strategy. It
aims at selling products at higher
prices as compared with competitors
as it offers quality and more features.
The online products are sold at greater
prices as it also delivery costs.
Zara offers low prices and high quality
products. The company follows low
pricing strategy and allows products at
low prices. The prices of products are
generally country specific. Zara also
focus on setting market-based pricing
strategy.
Place Two marketing channels are used by
Burberry to sell the products, i.e.
selling directly to customers and
through online websites (Caragher,
2016). There are more than 500 retail
stores of Burberry around the world
and has substantial online sales having
frequent traffic on the websites.
Zara maintains its retail stores in 88
countries and have approx. 6500 outlets.
The company also maintains online
stores. The company makes use of
unique business model for bringing new
fashion products into the target markets.
The stores of Zara are designed by the
decoration team of Zara.
Promotion Multiple media and promotional
channels are used by Burberry for
promoting the products. It includes
TV, radio, newspaper, magazines, etc.
Different social media platforms are
also used by Burberry for promotion
and it includes Facebook, YouTube
and Twitter as well (Chaffey and
Ellis-Chadwick, 2019.). Trade events,
exhibitions and various promotional
techniques are also used.
Zara does not focus on spending much
on the advertisement and promotion
techniques (Atwal and Williams, 2017).
The company does not engage in flashy
campaigns or interviews. The company
rely on word-of-mouth promotion
technique. It also maintains social media
marketing tools such as Facebook and
Instagram.
People The staff and employees of Burberry
are skilled and talented that focuses on
providing effective services to the
Zara focuses on speed for
responsiveness services and invest much
for providing training and development
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customers and also to satisfy them.
The people in the sales, production,
distribution and various other
departments are provided with
consistent training and development
programs so that they put their efforts
for increasing effectiveness in
business operations.
of staff's skill (Baker and Magnini,
2016). The focus of company is to
satisfy target customers not only with
the products but also with the services.
Process Burberry aims at effectively managing
the business process and operations
(Purvis, 2015). It also ensures that
retail stores always have adequate
products that meet needs of
customers. Burberry also maintains
process for managing online
deliveries. It has installed a system
that notifies when retail stores hashave
low inventory.
Zara's product purchasing process is
very basic and easy. Company aims at
researching about market opportunities
for understanding needs of target
customers.
Physical
Evidence
Burberry aims at selling the products
in a different and distinct colour
packaging so that it can be easily
identified and differentiated (Sharp,
2016). It also maintains user-friendly
online websites that allows customer
for viewing the high quality images of
products.
Zara focuses on maintaining friendly and
welcoming retails stores that have
quality products. A big variety of
options and choices are available to
customers.
Basic marketing plan of the organization.
Executive Summary-
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Burberry is a fashion company which is founded by Thomas Burberry in year 1856. The
company deals in various products such as cosmetics, accessories, clothing, sunglasses etc.
Burberry is offering products and services at more than 500 locations. Key peoples of the
company are Marco Gobbetti, Sir John Peace etc. Burberry has its operations in more than 51
countries. The company is planning to launch a new product that is 3D T-shirt in different
colours which is common for both male and females in various cities of U.K. After the launching
of product become successful, company will launch it at global market.
Vision-
The vision of Burberry is to invest continuously for the growth of the portfolio of the
products in various regions through different distribution channels.
Mission-
Burberry is one of the top brand of U.K. The mission of Burberry is to maintain the level
of integrity at various locations where the stores of the company are situated(Fine, 2017). To
provide better quality of products to the customers and to develop the business in emerging
markets at global level.
Objectives- There are various objectives of Burberry they are as follows-
 One of the main objective of Burberry is to provide long lasting shopping experience to
its existing as well as potential customers.
 Another objective of the company is to become a fully digitalized company and also to
become a social enterprise (Pike, 2015).
Marketing objectives- There are various objectives of the company behind marketing of the
new product.
 To create awareness regarding the features and benefits of new product that is 3D T-shirt
that company is going to launch next month in various cities of U.K.
 To increase the sales of new product by 15% till 2021.
 To increase the operating profits by 10% till 2020.
Segmentation- Segmentation is a process of dividing the whole market in various segments and
each segment will consist of customers that are having homogeneous characteristics. Before
launching the new product, Marketing manager of Burberry will segment the whole market of
U.K. Burberry will divide the whole consumer market of U.K. by using various methods. In case
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of geographic segmentation, company will divide the whole market in various cities and regions.
Company will also use demographic segmentation on the basis of age, lifestyle of peoples.
Targeting- After segmenting the whole market, Burberry will target a particular segment to
satisfy the needs of the customers of the targeted group. After segmenting the market on the
basis of demographic segmentation, Burberry will target peoples of 15-40 years age group for
offering the new product that is 3D T-shirt that belongs to medium and high income
category(Lidstone, 2017).
Positioning- After segmenting and targeting a particular segment of customers, Marketing
manager of Burberry will develop strategies for positioning the brand image of company and its
new product in the minds of the targeted customers. The company will use pricing, promotion,
distribution strategy for building brand image in the minds of targeted customers.
Marketing mix-
Product-
Burberry is already famous for its wide range of products such as luxury accessories,
clothing etc. Now, company will launch a new product 3D T-shirt in different colours. The new
product will be available for use by both male and female. The product will be available in
different sizes . The design and features of the new product is very attractive. It will provide
better shopping experience to the customers.
Price-
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Figu
re 1 : 7 P's of Marketing Mix
Source : (7 P's of Marketing Mix, 2017)

Burberry will use competition based pricing strategy for launching its new product
(Campbell, 2018.). It is the price the target customers will have to pay to buy the new product of
the company. The structure of cost of company is lower as compared to the competitors.
Place-
Burberry is already having more than 500 boutiques in whole world. The new product
that company will launch will be available at various store in U.K. And after the product gets
success, the new product will be available at stores in other countries also.
Promotion-
Company will use various mediums for promoting the new product. It will use digital as
well as print media for advertising the product. The information regarding the features of 3D T-
shirt will be provided in various fashion magazines (Blythe, 2019). Burberry will organize
fashion events with the help of fashion celebrities for attracting customers. It will also advertise
the new product through social media platforms.
Physical evidence-
Burberry will use catalogues for providing information regarding the range of prices in
which the new product is available. Company will invest in interior designs, furniture of the
stores.
People-
Company will appoint highly skilled salespersons who can influence the customers for
buying the new product of the company.
Process-
The product will be distributed by the company with the help of wholesalers and retail
stores. This will help Burberry to promote the distribution network of luxury items, and to
support the brand positioning of new product.
Marketing budget-
Marketing budget plays an important role in managing the expenses of the company to
influence and attract existing as well as potential customers towards the product of the company.
Forms of advertising Expenditure (£)
Direct marketing 100
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Digital marketing 150
Commercial marketing 200
Total 450
Monitoring and control-
Burberry will use various types of controls for measuring the actual results of marketing
with the
projected performance. Company will ask customers for giving their feedback through survey or
questionnaire. After collecting the customer feedback, company will make necessary adjustments
(Pike, 2015).
CONCLUSION
The above Report has described the difference between various strategies of Burberry
and Zara in respect of product, price, place, promotion, people, process and physical evidence.
The Report has also explained the basic marketing plan of Burberry that includes the marketing
mix of new product, budget, segmentation, targeting and positioning strategies etc.
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REFERENCES
Books and Journal
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
marketing and building the constituency model for hospitality marketing. International
Journal of Contemporary Hospitality Management. 28(8). pp.1510-1534.
Blythe, J. and Martin, J., 2019. Essentials of marketing. Pearson UK.
Campbell, R., Martin, C. and Fabos, B., 2018. Media essentials: A brief introduction.
Bedford/St. Martin's.
Caragher, J.M., 2016. 7 Essentials for a CPA Firm Marketing Program. The CPA
Journal. 86(12).p.11.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
Fine, S.H., 2017. Marketing the public sector: Promoting the causes of public and nonprofit
agencies. Routledge.
Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry.
Routledge.
McCamley, C. and Gilmore, A., 2018. Strategic marketing planning for heritage tourism: a
conceptual model and empirical findings from two emerging heritage regions. Journal of
Strategic Marketing. 26(2). pp.156-173.
Pike, S., 2015. Destination marketing: essentials. Routledge.
Purvis, J., 2015. Human resources marketing and recruiting: Essentials of digital
recruiting. Handbook of Human Resources Management. pp.1-19.
Sharp, C., 2016. Branding Essentials for Solos and Small Firms. GPSolo. 33. p.19.
Toscani, G., Tosin, A. and Zanella, M., 2018. Opinion modeling on social media and marketing
aspects. Physical Review E. 98(2). p.022315.
Online
7 P's of Marketing Mix. 2017. [Online] Available Through :
<https://www.talisman.co.uk/blog/7-ps-financial-services-marketing/>
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