Marketing Management: Analysis of Burberry's STP Strategy

MARKETING
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1.1Segmentation, targeting and positioning................................................................................1
1.2Segmentation basis and targeting strategies...........................................................................2
1.3 Applying of positioning strategy...........................................................................................2
PART 2............................................................................................................................................3
2.1 Definition of marketing mix..................................................................................................3
2.2 4P’s strategies of selected organisation.................................................................................3
PART 3............................................................................................................................................4
3.1 Relationship marketing strategy............................................................................................4
3.2 Relationship marketing strategy of Burberry........................................................................4
PART 4............................................................................................................................................6
4 Recommendation based on above analysis...............................................................................6
4.1 Recommendation for STP......................................................................................................6
4.2 Recommendations for marketing mix...................................................................................6
4.3 Recommendations for relationship marketing.......................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing management can be defined as process of managing activities related to
promotion of goods and services. In this emphasis is laid on marketing techniques, operations
and methods used so that company can be able to grow. Marketing management in any company
assists organisation in making sure that marketing resources and activities are been managed
adequately. Main concept of marketing management is that needs and wants of consumers are
being fulfilled. This assists company in enhancing consumer satisfaction. Marketing is the
concept which is been used by companies in order to increase sales of their products. It assists
organisation in increasing their brand reputation and also by managing all these aspects firm will
also be able to grow. It has also been evaluated that the marketing department of company is also
been involved in doing marketing research. This assists organisation in growing and also
achieving goals and targets. Present report will lay emphasis on Burberry. Is a British luxury
fashion house headquartered in London, England. Company is being engaged in selling various
fashion accessories like leather goods, clothes, cosmetics, perfumes and many other aspects.
Company is being involved in making use of various marketing strategy so that they can be able
to grow and reach out high range of consumers. Main purpose of report is to Analyse their STP
strategy. It will also lay focus on marketing mix and 4 P’s of firm. Report will also cover the
relationship marketing strategy of company.
PART 1
1.1Segmentation, targeting and positioning
Segmentation: Market segmentation can be defined as the process in which market is been
divided into smaller or more defined categories. It is being separated in to various basis like
demographic, psychographic, geographic etc. Segmenting of market is really necessary as it can
assist organisation on focusing of group which has interests in their products and goods. It is also
easier to maintain the market when it is being segmented. Organisation can be engaged in
segmenting market on basis of gender, age, income, location, beliefs.
Targeting: In this the large market group is broken down in to smaller market. It helps company
in laying focus on specific consumers. It defines a segment of customers based on their unique
characteristics and focuses solely on serving them. It is really necessary for organisation that
they identify their target audience as it will assist them in increasing their profit and revenue.
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Positioning: It can be defined as ability to change the consumer preferences and perception. In
this where the company has positioned itself is analysed. They can make sure that better products
are provided with adequate prices so that consumers satisfaction and experiences can also be
increased.
1.2Segmentation basis and targeting strategies
Segmentation: Burberry has been involved in making use of demographic, psychographic and
geographic segmentation strategy. In this company has segment their consumers on basis of age
and income. It is being done as company is selling high prices fashion accessorise which can be
only affordable by rich. It has also been evaluated that Burberry is also being involved in
segmenting according to geographic location. They are serving around 20 and more countries.
Firm has also evaluated that fashion accessories supplied by them are according to needs and
demands of consumers. This has assisted them in growing and also because of this they are been
able to achieve target goals and objectives (Sousa and Alves, 2019).
Targeting: Burberry has also made use of targeting strategies. In this they have targeted
consumers between the age of 18-65. They target those consumers who have high taste in
fashion and also company is engaged in targeting consumers with higher disposable income.
They are only targeting consumers who want luxurious products. It has also been evaluated that
organisation is being engaged in targeting males, females and children. They are providing goods
and services according to needs and demands of consumers, so that they can be able to grow.
1.3 Applying of positioning strategy
Burberry is making use of cost and quality positioning strategy. It has been evaluated that
company is being involved in selling fashion accessories at high cost and also of high quality.
Only consumers who have high disposable income can purchase fashion accessories from
Burberry. It has been analysed that firm has increased their cost and also quality of services
which is been provided by them. Burberry is being involved in analysing the needs and demands
of premium consumers and then providing them with better quality fashion accessories. Burberry
has positioned their brand in minds of customers as functional luxury. They are trying to position
their brand on ultra-luxury section. It has also been analysed that company has kept their prices
quiet high and it cannot be affordable by every consumer. They are also engaged in providing
high quality of clothes and other accessories so that brand value can be increased and also this
can assist organisation in achieving their set target and mission. This can also assist firm in
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