Determining Customer Preferences for Burberry's Market Dominance

The assignment content discusses the importance of strategic marketing in business, using Burberry as an example. It highlights the need for companies to understand their customers' needs and preferences to create a long-term competitive edge. The paper also emphasizes the significance of external and internal environmental factors in shaping marketing strategies. Furthermore, it suggests that companies should invest in research and development to introduce new products and services that meet customer demands.

MARKETING

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Role of strategic marketing in an organisation.................................................................1
1.2 Processes involved in strategic marketing........................................................................2
1.3 Links between strategic marketing and corporate strategy..............................................3
TASK 2......................................................................................................................................4
2.1 Value of models used in strategic marketing planning....................................................4
2.2 Links between strategic positioning and marketing tactics..............................................5
2.3 Merits of relationship marketing in a given strategic marketing strategy........................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
With rising competition in all sphere of business, the process of marketing is becoming
more complicated. Now organizations not only concentrate their marketing activities on
customer awareness development but also creating a long term sustainable competitive edge.
In the year 2009, Blankson, et.al., quoted that strategic marketing supports the organizations
in developing competitive edge for long term by adequate allocation of resources. It is has
been given by Moriarty and Duncan (2007) that strategic marketing supports in aligning
corporate goals with market condition. Here, the report is focusing on Burberry’s strategic
marketing process. Burberry Group plc is a luxury fashion house of British, distributing
fashion accessories, outerwear, sunglasses, cosmetics and fragrances. The marketing process
of company is based on stimulating and engaging customers with the business for developing
its brand equity as well as survive in tough market competition. The paper will focus on
evaluation of strategic marketing importance and the procedure of strategic marketing plan
development for Burberry.
TASK 1
1.1 Role of strategic marketing in an organisation
In an organization, a strategic marketing plan are designed for achieving its financial
objectives to grow the business. The strategic marketing activities execution of a company is
connected with equipped procedure for enabling business to create the supply and demand
forces as well as challenge the necessities of market. The most significant role of strategic
marketing is that it supports the corporation in analysing customers’ requirements along with
the variables that must be incorporated for improving services and products. The procedure of
Burberry strategic marketing is aimed towards market responsiveness expansion and support
in its brand equity promotion (Baker, 2014). In Burberry, the marketing analysis and planning
is concentrated on evaluation of strategies used by rivals and current position of organization
among its stakeholders. Hence, it can be said that strategic marketing supports in analysing
firm’s weaknesses and strengths as well as reduces the market uncertainties or threats. An
important role is played by strategic marketing in Burberry’s strategic planning. It defined
activities of marketing that has great influence on corporate, marketing and business strategic
plan. These activities are classified into three main functions:
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First: Marketers work as a third party in between customers and organization. They are
responsible for supporting in implementation of productive ideas in the whole procedure of
strategic marketing (Boykin, 2015).
Second: Marketers collect and analyse information of current business environment and
marketing trends along with their influence on company’s activities. Such information is act
like a main input for corporate, marketing and business strategic plan.
Third: The marketer of firm always dedicate towards development works of organization’s
marketing, corporate and business strategic plans. The marketing philosophy has great
influence on strategic planning of Burberry that drives the business towards the attainment of
its objectives.
Besides above, in the present dynamic market, different services and products are
developed by varied companies for offering best services to customers. In this regards, the
strategic marketing assists the firm in developing services or products on the basis of present
changes in the market. Due to varied external and internal factors, business environment
alters overtime by changing demand of customers. In such case, strategic marketing is
concerned with best performance in the altering situations rather than improving figures of
sales and revenue for attaining long term customer loyalty in the marketplace (Doyle and
Stern, 2006).
1.2 Processes involved in strategic marketing
The formulation of marketing strategy is the procedure of defining marketing objectives
of organization. On the basis of this, the marketer create a guide. They first examine the
whole market and then utilize the collected information in determination of approach to reach
the target audience plus encourage them to buy a commodity (Kokemuller, 2015).
The first step in the process should be in relation to identification of what actually
company desire to attain in terms of marketing that means its marketing goals. Some basic
points in this might be to let buyers know about what the organization is offering and how
they will be benefit by utilizing them. The second step is to analyse current internal and
external trends. For instance, the launch of new colours and design in sunglasses can be an
internal trend for Burberry. While the external trend is to examine the way in which new
version will be able to compete in market where many similar products are available. It is like
analysing how the new sunglasses will beat the competition of Ray Ban and Reebok (Kotler
and Armstrong, 2010). Third step is to assign a value to strategic outcomes that is to calculate
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how much profit will be generated by marketing strategy in a definite time period. The
proposed product will not be suitable for organisation if its value is not cost effective.
Sometimes the production cost may be higher than returns. In such case, an alternative option
should be chosen. After deciding some definite target, each unit of the firm is provided with
specific task to determine their role in attaining strategic objectives. It will support the
marketer to anticipate company’s position after strategy execution in terms of revenue and
size. Finally, all gathered information are analysed and then the best suitable one fit with the
decided goals is chosen (Larreche, 2005).
1.3 Links between strategic marketing and corporate strategy
Marketing and corporate strategies often overlap and coincide because against popular
belief, a main concentration of marketing comprises the factors of strategic planning
development and product pricing plus distribution. The two strategies deviate when
organization tactic has less to do with development of service or product plus sales and more
with initiatives profitability (Strategic Report, 2014).
Corporate strategy primarily concentrates on profitability. It is a plan to support an
organization in forming its mission and vision while attaining specific goals. This comprises
developing corporate structure, gearing organization ration, reducing debt and improving
company’s balance sheet. Moreover, the corporate strategy deals with product line
diversification, major takeovers or merger, business diversification, new technology
introduction, reduction of production and overhead cost and increase in company’s overall
profit margin (Swire, 2014).
Marketing strategies is defined as plan to make or sell a commodity. They revolve
around the mix of marketing also referred to four P’s, i.e. place, price, promotion and
product. The marketing role is to attract right customers by several types of research as well
as effective promotions. The organization undertake this by leveraging SWOT factors that is
used in developing corporate strategy. Also, marketing centres on communicating proposition
of strong value on the basis of convenient distribution, value pricing and strong product
(Wilson and Gilligan, 2012).
The management executives of business should remain in close contact with marketing
unit for identifying if any corporate strategies they want to pursue align with marketing
strategies of company. For instance, using cost containment corporate strategy at Burberry
that includes utilizing cheap materials for making products may damage its upscale brand on
which business relies to support its distribution, pricing and branding strategies. If the
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company buys outwear of a bargain-brand, the marketer would suggest for breaking such
agreement between two companies. It is because if company will buy the particular brand and
sell products of both in same name then can result in a big confusion for customers as well as
damage of Burberry’s brand (Wright, 2014).
TASK 2
2.1 Value of models used in strategic marketing planning
Due to present dynamic and competitive environment, it is very challenging to comprehend
company’s strategic issues and develop its long term capability. In this regards, the following
models adequately add in the formation of valuable strategic marketing plan in an
organization:
PESTLE analysis – For scanning the wider environment as well as to understand the manner
in which five forces may change in future, the PESTLE analysis is very helpful for Burberry.
The company is not in complete control of aspects that impact on its success and profitability,
hence the particular analysis determine changes in such underlying factors in the coming time
(Brun and Castelli, 2008). The use of PESTLE in strategic marketing plan of Burberry are:
 To determine changes that can develop business opportunities;
 To find out changes that can lead to threat for which the organization is required to take
actions for its careful monitoring;
 To offer a basis for assessing risks that would be face by organization in its strategy
execution.
Five Forces analysis – This model attempts to evaluate potential opportunity, profitability
levels and risk on the basis of five main factors in an industry. The particular model can be
utilized as tool for creating strategic advantage over rivals in an industry in a healthy and
competitive environment (Doherty, 2009). The model defines five forces that define
profitability of market segment or market for long run. These are:
 Buyers
 Suppliers
 Substitutes
 Entry/exit barriers
 Rivalry
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Boston Matrix – This model describes the influence of market growth and market share on
organization by utilizing four categories, i.e. question marks, cash cows, stars and dogs. The
particular matrix assumes that financial benefits are provided by high market share, so it
means high earnings in cash. Market growth reflects the market attractiveness. This matrix
can support Burberry in deciding which of the unit it should keep, where they make further
investment, etc. It can serve as basis of developing effective marketing plan for the
organization (Hankinson, 2007).
2.2 Links between strategic positioning and marketing tactics
The customer driven strategy of marketing is separated into three components, i.e.
market targeting, segmentation and positioning. Market segmentation defines distinct buyers
group which their varied needs, behaviour and characteristics. Market targeting assess
magnetism of all segments and select profitable section to enter. Besides this, products are
arranged by market positioning to reside in desirable, clean and distinctive place in relation to
competing commodities in the consumers’ minds. Moreover, positioning is a procedure of
marketing with which marketer of Burberry can attempt to make good identity or image in
the target customers mind for its products or brand (Moore, Doherty and Doyle, 2010).
Firm’s process of strategic positioning can include:
 Identification of product space in existing market;
 Defining competitive market where their offerings will compete;
 Information collection in relation to perception of customers regarding relevant
qualities product;
 Defining each product current position in the room of invention (Payne and Frow,
2005).
The positioning concepts are of three types:
Symbolic positions
o Ego recognition
o Self-image enhancement
o Touching fleeciness
o Belongingness and meaningfulness
Functional positioning
o Provide profits to buyers
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o Get favourable awareness by investors and lenders
o Resolve issues
Experimental positions
o Give cognitive inspiration
o Provide sensory inspiration
The process of segmentation divides overall market into distinct sections. Market
targeting can define section for which company required to perform and positioning can
determine suitable product must be promoted to the selected section (Quinn, Hines and
Bennison, 2007). On the basis of mentioned analysis, Burberry can form a competitive
marketing strategy, i.e. marketing mix that include the following:
Product – It has to have right features, for instance, Burberrys offerings should be good in its
looking and work effectively.
Price – It should be right. Customers will require to buy in large quantity for producing more
profit.
Place – The products should be in correct place at exact time. Ensuring that commodities
arrive where and when they are exactly required is an essential operation for Burberry.
Promotion – The target customers are required to aware about availability and existence of
commodity by effective promotion. Successful promotion can support Burberry in spreading
costs over more production (Shaw and et.al., 2006).
2.3 Merits of relationship marketing in a given strategic marketing strategy
Burberry adopts digital marketing strategy for becoming the leading organization in
fashion industry. This digital technique fits the organization very well to create relationship
marketing with its partners, customers and many more. It uses digital expertise for
developing the connection plus value with its clients. Many times, the firm makes use of
relationship marketing for creating bond with consumers plus attain their long term loyalty in
business. The term relationship marketing is referred to intention of organization to develop
plus maintain mutual satisfaction and long term relation with its main parties, i.e. suppliers,
customers, distributors, etc (Wigley, Moore and Birtwistle, 2005). Relationship marketing
supports in building strong technical, social and economic ties within the important parties of
company. It is significant for Burberry to remain connected with its loyal clientele base to get
their positive support in the business growth. In the present aggressive market conditions,
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where many competitors are offering different commodities, it is important for Burberry to
retain existing clients and ensure their long term relation with the business (Boykin, 2015).
The execution of this relationship marketing strategy is easy for the firm due to
application of digital technology in its operations. In the part of marketing media, by utilizing
digital approach, Burberry can attempt to become most followed luxury brand on Twitter,
Facebook, YouTube and Instagram. It is an excellent example of humanizing technology that
can allow Burberry to make interaction with customers more personally. The main
consequence of relationship is the unique asset creation in an organization called “marketing
network”. The marketing network is the main element that grouped the firm with its essential
stakeholders together. An effective and string relationship network can bring benefits to
stakeholders along with profitability for the organization (Hankinson, 2007).
The powerful relationship binding by the proposed marketing strategy will enable the
firm to get necessary information about its customers. For Burberry, the information is
essential to determine present and potential market trend. By analysing customer’s
information, the company can plan its further strategies. Also, it can invest in research and
development to introduce new fashionable products range according to customers demand as
well as to attain competitive edge (Wilson and Gilligan, 2012).
CONCLUSION
The above paper has reflected strategic marketing process plus its significance in
scenario of business for creating a long term competitive edge and competitive position in the
marketplace. A fashion retail organization Burberry has been selected to complete the given
assessment, which is demonstrating that the process of strategic marketing bonds the
consumers and other important stakeholders of organization by outlining its products benefits
as well as usefulness. Other significant factors like external and internal business
environment also affect the marketing activities of Burberry. Also, for enlarging brand equity
plus ensuring intensification of sustainable business, the company has to categorize the
potential uncertainties and risks together with opportunities plus scopes that can be present in
the market. Such aspects have a valuable say in the firm’s decision making procedure.
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REFERENCES
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McGraw-Hill/Irwin.
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<http://www.burberryplc.com/documents/ar-13-14/burberry-annual-report-2013-
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method: the perspective of luxury fashion retailing. European Journal of Marketing. 44
(1/2). pp.139-161.
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Shaw, D. and et.al., 2006. Fashion victim: the impact of fair trade concerns on clothing
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factors in the internationalisation of a fashion retailer. International Journal of Retail &
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