Retail Issues and Applications: A Case Study of Burberry

This report discusses the response of Burberry towards the issue of retail branding, evaluates the effectiveness of their response, and discusses relevant theories and academic research about the topic. The report highlights the importance of understanding customer decision journey, keeping up with global trends, embracing technological capabilities, and personalization as a new strategy. The report also discusses relevant theories of retail branding such as branding as identification, differentiation, and personification.

Retail Issues and
Applications

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Response of retailers towards the particular selected issue....................................................1
Critically evaluate how effective the retailer’s response are to the issues and problems.......3
Discuss relevant theories or academic research about the selected topic...............................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Retail sector is growing rapidly and diversifying their industry into different segments
according to the requirements of their customers. Various factors are present in external and
internal environment of retail sector which affect their operations in negative manner. This
results in minimising the profitability of organisations present in retail sector which is a major
challenge for them (Andreoni and et.al., 2022). This report is based on Burberry which is a
fashion industry established in 1856 by Thomas Burberry. It is headquartered in London,
England and serve world wide area by offering various products like cosmetics, accessories,
clothing, perfume and footwear. This is the summative assessment which includes Responses of
retailers in context to the issues and problems of which arises in their sector. The selected issue is
retail branding which is the strategy opted by retailers so that they can present their products and
services in unique way among customers. The critical evaluation is carried out on the basis of
activities which retailers undertake so that they can overcome problems and issues of concern.
Relevant theories are used in context to issues which are facing by retailers so that it provides
different ways in which organisations can face issues.
MAIN BODY
Response of retailers towards the particular selected issue.
The retail industry which is involved in different business models have two under went
through different phases of disruptions. Due to the involvement of dual layered object of
organisation faces issues in retail branding. Burberry comes under fashion industry who have to
focus on their appropriate branding so that they can attract large number of customers. It is a
luxury brand which focuses on the quality and standard of products so that their brand conscious
customers can purchase products on regular basis. The emergence of e-commerce affected retail
branding to great extent which results in lower profitability to organisations (Gupta, 2022).
Physical stores are primary touch point for customers which is minimising day by day due to
increase in e-commerce. Retail branding from physical store provides visual identity,
communication of positioning, generating perception and improves experiences of targeted
customers. Burberry faces challenges because of physical world and criss-crossing online
platforms which disturbs the proper engagement of customers. Bad customer experiences result
in lower sales which need to be focused by an organisation in order to grow their business. It is
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important to maintain balance in the operations between digital and traditional retail branding so
that objectives can be achieved. Burberry have responded towards the issue related retail brand in
following manner which is discussed below:
Understanding the changes of customer decisions: Organisations have to focus on
consumer decision journey as it affect the positioning of brand at targeted market. Burberry tries
to focus on engaging their customers by providing better branding according to their demands
and needs. Due to increase in e-commerce the decision journey becomes non-linear and highly
unstructured which need to be undertaken by an organisation. Burberry carrying out their
branding in strong and consistent manner so that they can increase their touch point and
accessibility in effective manner (Hader, Elmhamedi and Abouabdellah, 2020). Their
competitors from same industry such as Marks and Spencer and Next plc are using different
techniques for branding. It creates difference in the appearances and physical evidences of
products from competitors which is positive factor for Burberry. The branding becomes more
attractive and unique with offline and online channels so that all the customers located in
different parts of the world can connect with the brand. Burberry overcome this is issue by
understanding the critical customer decision journey by interacting with them on regular basis.
Keeping on top of global trends: People get influenced by events and other activities
which are present on global platform due to increase in the usage of social media platforms. The
emergence of social media changed the behaviour and thoughts of customers regarding branding
of products and price. Burberry have analysed shopping trends of the targeted audience based on
the destination and location of their customers. The positioning of Burberry is becoming
influencing in fashion industry and overcome various challenges related to higher competition
and new entrants in the respective industry. Their positioning is different from fashion
organisations like Next plc which is competitors of Burberry. They have developed their
branding procedures according to the current market trends so that they can attract new
customers and influence potential customers to buy their products.
Embracing technological capabilities: To carrying out strong and attractive branding
which includes all the related information about product and services organisation uses advanced
technologies. Burberry also try to implement a virtual e store in their various outlets with the
help of technology so that they can improve the experiences of their customers. It increases their
potential to compete with other competitors like Marks and Spencer in the same industry by
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providing unique services which assist them in capturing large market area. Use of technology
can minimise the risk of retail branding issues which results in a positive outcome in order to get
success and growth.
Personalisation is the new strategy: Nowadays customers have a power to avail services
and products according to their choices and alterations. Burberry have implemented the strategy
of personalisation in their products and services by investing creativity so that they can offer
required product to individual customer. They have also included various offers a like discount
pricing to some of the regular customers so that they can engage the targeted audience for a
longer period of time and cost-effective manner (Hasan, 2018). They Focus on research about
big data analytics so that they can understand the actual requirements and behaviour of
customers so that they can personalised and customised products according to that.
Although digital is disruptive force, Retailers should focus and analyse other factors beyond
the digital platform. Branding can be done in appropriate manner in traditional sector also by
following all the relevant rules so that retail branding issue can be eliminated in effective
manner. Burberry ensures that they involve labelling and packaging which consist of information
and knowledge about a product which they offered to their customers (Iyer, Davari and
Mukherjee, 2018). They do not copy their competitors and invest in hiring of skilled and
experienced employees who can contribute their efforts in maintaining the best level and
standard of their branding. In this manner, Burberry successfully deal with the challenges related
to the retail branding which helps them in establishing their brand image.
Critically evaluate how effective the retailer’s response are to the issues and problems.
It is evaluated that the techniques and alterations which are used by where Badi improved
their branding and reduced challenges of the related issues. Modern retail branding strategies
help them in maintaining consistency regarding their communication and position in all over the
world. Each and every touch point of customers are reached by organisation through providing
attractive and unique branding which fulfil the requirements of targeted customers. Burberry
have used various social media platforms like Facebook, WhatsApp, Instagram, Snapchat,
Pinterest and Tumblr so that they can increase their brand awareness and value among the
customers (Kalpana and et.al., 2019). Almost all the customers who are targeted by Burberry is
using social media platforms in their day to day life which helps them in updating themselves
regarding new updates which organisation provides. Providing information through internet
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increase the value of organisation in market so that they can effectively compete with their
competitors in cost-effective manner. Consumer behaviours are need to understand by
organisation so that they can rapidly evolve in the dynamic business environment by altering
their strategies. It is important for engaging customers for retail industry in order to increase their
profitability and revenue generation. Strong retail brand assist organisation in maintaining their
sustainability in market for a longer period of time without any difficulties. The responses which
are chosen by Burberry in order to respond to the issues related to retail branding are highly
effective for them as it assists them in competing with their competitors. They have covered
large market area by improving their packaging and labelling which comes under branding. They
have influenced audience by providing them relevant information and knowledge which are
essential to understand the features and characteristics of the brand so that they can develop trust
and loyalty towards organisation.
Technological advancements assist Burberry in managing the current market trends so that
they can gain competitive advantages. The expectations of customers are undertaken and focused
by them so that they can develop the interest of customers towards the products and services
offered by organisation. In store experience are improved with the help of technology like
showing virtual models who try clothes and footwear for customers so that they can get idea
(Kamath, Pai and Prabhu, 2019). This provides ease to customers in shopping without thinking
twice for the products which they want for themselves. Physical evidences play major role in
improving shopping experiences of customers. Burberry maintain the positive environment in
their outlet so that their customers visit stores again and again which increases sales. Online
websites and pages are developed in highly innovative and creative manner so that customers get
attached towards the brand. Burberry have set up their digital marketing team who majorly focus
on the reviews and feedbacks of the customers on online platforms. It provides opportunities in
carrying out alterations and changes in branding activities so that they can overcome issues
related to retail branding. Burberry do not focus on the political boundaries and use e commerce
to provide services in over all world. The promotion of products and services are done in
appropriate manner so that customers get to know about the new features and updates regarding
products.
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Discuss relevant theories or academic research about the selected topic.
Branding is becoming more popular now a days because it influences the behaviour of
buyers to great extent. Each and every organisation involves appropriate branding according to
their business environment and level so that they can connect with their customers in appropriate
manner. Branding is responsible in developing connection and relationship among targeted
audience with the help of products they offer so that they can increase the number of retention
rate. It communicates with audience regarding features of a product so that customers can
identify and develop their mind in order to purchase the product which are useful for them
(Kaushik, Mohan and Kumar, 2020). Packaging should be improved by organisation on regular
basis of time so that customers can attracted towards new packaging and branding which directly
increase the rate of sales. Burberry uses eco-friendly packaging material nowadays because they
have to contribute in developing better quality of environment for all the creatures. The recycled
waste material so that they can utilise available resources in effective and efficient manner
without any wastage. Burberry also focus on legal factors so that they can develop effective
recognition using elements like trademark and copyright which make their brand different from
competitors. Branding become as it for an organisation as it is the first impression which
develops the perception in the mind of customers regarding brand. It adds value in the product
and services by carrying out branding on higher level so that organisation can make their
goodwill in the market.
It is important to analyse the current market trends so that organisation can implement
changes in their branding policies according to the requirements and needs of the targeted
audience. Different stages of branding evaluation are undertaken by organisation so that they can
measure their success in terms of attracting customers. All the details should be involved in
branding so that it does not create misunderstanding and confusions in the mind of customers (Li
and Subramanian, 2021). Burberry invest huge amount in research and development so that they
can understand the benefits of products for the customers which need to be included in the
branding. It supports organisation in increasing the brand awareness in the market by
communicating positive factors about products. Packaging of Burberry is different from their
competitors so that it does not create any similarity which can distract the mind of audience.
There are various theories of retail branding which are discussed below:
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Branding as identification: The original purpose of branding for which organisation use
branding is to make unique identity of their products and goods in the market. It is the visible
element which includes design, colour, logo and other visible factors which develop the
particular brand image of product in the mind of customers. Burberry use branding for
development of attractive and unique identity which make their products different from their
competitors. They have captured large market area in all over the world by using different
packaging and labelling materials so that customers can evaluate the preference of their products.
It is very essential to develop unique identity so that organisation can gain various competitive
advantages from their respective industry (Ndraha and et.al., 2018). It increases the recognition
of products among customers which is a positive factor in increasing the sales and growth of
organisation in appropriate manner. Unique identification is responsible for creating positive
perception in the mind of targeted audience which establish the brand image. It contributes large
number of efforts in increasing the base of loyal customers which is essential for growth and
exposure of an organisation.
Branding as differentiation: The retail sector is highly diversified into different segment of
organisation which are provide products and services on the basis of demands and requirements
of targeted audience. Fashion industry involves large number of organisations who provide
similar kind of products regarding design, colour and catalogue to their customers. Burberry uses
a branding in order to differentiate their products from their competitors like Marks & Spencer,
next plc, etc. so that they can improve their brand value. Competing with in the same industry
becomes highly challenging if organisation lacks in proper branding according to the
requirements of audience (Thakur and Kumar, 2019). Differentiation includes all the essential
factors such as packaging, size of product, availability, quality and price of product.
Organisations can use a different tools and techniques for developing their trademark and
copyrights which create differences within organisations. It develops unique selling proposition
of product which add value in overall sale and distribution.
Branding as personification: Personification act as attribute and metaphor for which
people recognise a brand as the people. It personified the brand and gives distinct human
qualities which develop better connection with targeted audience so that profits can be increased.
Burberry build a brand equity by involving emotions during customising branding and labelling
of their products according to the sentiments of customers. This strategy helped a lot
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organisations in order to increase their brand awareness in a unique and attractive manner in
large market area (Pramod, Naicker and Tyagi, 2021). All the likes and dislikes are evaluated of
customers so that brand personality of products can be developed according to the human
behaviour. It is an interactive manner to increase the sale of products with the help of diverse
ideas.
Brand as asset: This theory suggests that branding act as asset for organisation because it is
responsible for generating higher revenue in short period of time. It is a recognisable element
that can develop identity among the customers with the help of different logos, tag lines and
typography (Sharif and et.al., 2021). With the help of these elements’ organisation becomes
efficient in competing with their competitors as it creates unique identity of Product or brand.
Burberry increased their sales and revenues as it is intangible asset which includes Goodwill,
prepaid services, patents, accounts receivables, trade secrets, people and designs. Burberry uses
attractive illustrations packages and images in their branding which increase the curiosity and
interest of potential audience to buy products.
It is evaluated that different theories of retail branding helped Burberry in expanding their
business by offering large number of products to their customers in appropriate manner. All the
theories related to differentiation, identification, asset and personification play important role in
attracting customers without any fail (Putri, Sarno and Suryani, 2019). It clarifies the concept of
products from the mind of customers so that they can buy required products without any
confusions and misunderstandings. Fashion industry allows large number of new entrants to
commence their operations which becomes challenge and threat for existing organisations.
Burberry overcome this challenge by implementing changes in their branding with the help of
advanced tools and technologies according to the current market trends.
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CONCLUSION
From the above report it can be concluded that retail sector includes large number of
challenges and issues in their day to day operations which need to be overcome so that they can
commence their operation in smooth manner. There are number of issues which are affecting the
profitability and level of operations which directly create impact on the brand image of an
organisation. Most common issues include attracting customers, retaining customers, retail
branding, sustainability, supply chain management which need to be focused. Organisations have
to develop different policies and strategies in order to overcome problems in appropriate manner
so that they can sustain for longer period of time in their respective industry. In order to compete
with competitors from same industry it is necessary to develop policies which assist business
environment so that challenges can be eliminated and minimised. This report included about
issue which retail industry is facing from longer time. The response of retailers is carried out in
this report against the problem and consequences which they face in the day to day operations. It
is critically evaluated in this report that the responses of which company have undertaken in
order to resolve problems are appropriate or not. Different theories are used so that organisation
can understand relevant stabs which they have taken for elimination of issues from their industry.
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REFERENCES
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