Marketing Essentials: A Comparison of Burberry and Gucci

This presentation explores the marketing strategies of Burberry and Gucci, focusing on their application of the marketing mix and different tactics used. It provides an overview of their marketing plans and evidence-based strategies. Additionally, it discusses how both companies utilize the 7Ps of marketing to enhance their business operations.

MARKETING ESSENTIALS

 Introduction
 Comparison of application of marketing mix by various organizations
 Different tactics applied by organisations
 Marketing plan
 Detailed evidence -based marketing plan
 Strategic plan that make use of 7Ps
 References
TABLE OF CONTENT

Marketing determine as the activity which is use by the company for promoting their good and services in
an effective manner. Marketing includes advertising, selling, promotion and delivering the product to
customer or other businesses. It is a promotional tool adopted by the organisation to sell its product in the
market and also to grab the attention of customer toward its product or service.
INTRODUCTION

Marketing mix refers to all the ingredients which are used
by a company to market its product. It includes 7P's, which
are product, price, place, promotion, physical evidence,
process and people. All these ingredients plays an important
role in the development and success of every business.
Apart from new product development, marketing mix also
helps in increasing the portfolio of product.
COMPARISON OF APPLICATION OF MARKETING MIX BY
VARIOUS ORGANIZATIONS

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Basis Burberry Gucci
Product Burberry is a luxury fashion brand which is dealing in
women's, men's, and children's wear in addition of
shoes, perfumes and various accessories (Rescorla,
2014). The company is famous for trench-coats,
cosmetics and ready-to-wear outerwear. The major
factor for the success of this brand is its style, design
and quality which makes it different from other
companies.
Gucci an Italian premium brand dealing in
fashion and leather goods which includes
clothing for men, women, and babies, shoes,
watches, handbags,and various home
products. The products of the brand highly
focusses on movie stars, business tycoons,
politicians, etc. the products made by Gucci
are of higher quality for which customers are
willing to pay high prices.

Basis Burberry Gucci
Price As the company deals in luxurious
products, the premium pricing strategy
has been used by it. Since the company is
global its prices have to be consistent
everywhere. The pricing strategy is fixed
after evaluation of demand of the
product, competitors price and market
research.
As the company is targeting the elite class, the
company mostly uses competitive pricing strategy
which will include all sort of charges and expenses
incurred. The prestigious pricing makes the product
act as a status symbol. Company never compromises
with standards of quality. The company sell its
products higher than that of customers because of
the quality provided.
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Basis Burberry Gucci
Place Burberry offers its products in over 50
countries spread around the world. The
location of the stores are highly populated
areas so that premium customers can easily
visit them and high sales could be
generated. The company has also
established its expansion by e-commerce
portal, which constituted large number of
traffic.
Gucci is a worldwide successful network because of
its world-class products. The company sell its
products by two marketing channels (Rohlfer and
Zhang, 2016). The first is through online websites and
the other is through retail stores. The company have
limited number of franchises which are uniquely
designed with classic interiors which give a relaxing
experience to the customers.
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Basis Burberry Gucci
Promotion Burberry uses all type of promotions
like TV, print media, online
advertisements, etc. The
advertisements are placed in high
class magazines in order to target
specific audience. The adoption of
digital technology has helped in
communicating the brand message
easily to customers.
Gucci advertises through magazines, billboards, printouts,
banners and social media. Various campaigns are adopted
by them on Facebook, Instagram, Tumblr and you tube.
In order to promote content on social media, various
bloggers were hired by them (Sarstedt and et. al., 2014).
The company has its online store and application in eight
different languages namely 'Gucci Style App' which can
be easily used by customers around the world

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Basis Burberry Gucci
People Burberry believes that people i.e., employees are
the greatest assets and therefore the company
focuses on attracting the best talent from the
world, provides various developmental
opportunities, rewarding performance, building
stronger relationships, ensuring safe and healthy
work environment and thoroughly supporting the
health and well-being of the employees (Shenkar,
Luo and Chi, 2014).
Gucci make its employees aware about the
goals and objectives of the concern so in order
to increase the performance of the team. The
company is giving training to employees and
also give guidance in regard of how to treat
customers. Employees of customer service
department are trained in regard of how to
solve queries of customers.

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Basis Burberry Gucci
Process Burberry uses an efficient and
standardised sales process linked with
high quality customer service. The
customer service is offered to a personal
shopper for building a unique experience.
Through e-commerce there is clear
navigation with quick, safe and efficient
online transactions.
Gucci uses an efficient sales process in which
they ensures that products are available at retail
stores for which a system is installed where
retailers can notify whenever their inventory
level is low (Smith and Wong, 2016). The
company is focussing on understanding the
customer needs by collecting feedback at stores,
helpline or social media pages.

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Basis Burberry Gucci
Physical Evidence Physical evidence used by Burberry is clean and
attractive modern stores with standard layout
across all the outlets. The company ensures that
products are same as appeared in advertisements
and online (Sreejesh, 2014). Dark wood and
neutral colours are used to create a sense of luxury
and wealth.
Physical evidence used by Gucci
are the different colours used and
distinct designs which can be
easily identifiable on retails
shelves. The company has online
website which allows customers
top view products from different
angles.

In order to establish the objective the marketing-mix is required to be done as it helps in promoting and
expanding the company. To have a broad understanding two companies i.e., Burberry and Gucci are
taken. These companies have a competitive customer segment. The pricing strategy used by Burberry is
premium pricing strategy and by Gucci is competitive pricing strategy.
DIFFERENT TACTICS APPLIED BY ORGANISATIONS

Marketing plan is a framework or blue print which
outlines the efforts required for advertising and
marketing in the coming years. It begins with
identification of customers needs and how they are
fulfilled by the firm (Tucci and et. al., 2016).
Marketing plan is categorised in to two types: Short-
term plan (for one year) and long-term plan (exceeds
one year).These plans is managed by the top level so
that effectively it can be executed in the coming year.
MARKETING PLAN

Various steps included in Marketing plan of Burberry are as follows:
 Executive Summary: Burberry a multinational luxury brand was developed in the year 1856 in
London. The company deals with clothing, Fashion accessories , fragrances, cosmetics, etc. Burberry
is ranked as one of the best brand across the world . It was launched by 21 year old Thomas Burberry,
163 years ago in Basingstoke, England. The company is headquarter in London,united kingdom.
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 Vision : The vision of Burberry is to work all together to create the brand which all love and achieve
highest degree of sustainability.
 Mission : The mission of Burberry is to become the leader in luxury market world-wide.
Objective: The objective of Burberry are explained as follows:
 To increase the sale up to 10%in the coming six months.
 To pull the elite layer in the market in order to increase profits upto 2021.
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 STP Approach: It is the most common marketing tool used by various businesses in order to form
proper marketing strategies for the company. It helps in analysing the link between overall market and
how a company chooses to compete with that market.
 SWOT Analysis: It refers to an analytical tool or technique used to measure the strengths, weaknesses,
opportunities and threats related to business in order to achieve success. Strengths an Weaknesses are
internal to an organisation, that means they can be controlled by business whereas threats and
opportunities are external to an organisation, that means they cannot be controlled by business.
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4P's of Marketing: It is also known as Marketing-mix, which refers to putting a right product, at right
place and at right time. Combination of these actions helps in promotion of the brand and product of the
company. Marketing-mix of Burberry is explained, as follows:
 Product: It refers to a commodity sold by the company in consideration of money paid by customer.
 Price: It is the most crucial step of marketing-mix. It refers to the amount of money which is required
to be paid by customers.
 Place: it refers to physical distribution of product from place of production to consumers in a way
which could be easily accessed by potential buyers.
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Promotion: it refers to market a product to increase the sale and value of the brand. It includes various
tools such as advertising, hoarding, personal selling, publicity, celebrity endorsements, etc. Burberry can
use social media advertising, magazine advertising , celebrity endorsements, etc. which will help in
attracting the customers.
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 Budget : It refers to the statement that provides estimate of income as well as expenditure which are
incurred in a specific duration of time.
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Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 50000 60000 65000 70000 90000
Investment 100000 120000 135000 140000 140000
Total 150000 180000 195000 210000 240000
Marketing outlay
Promotion 25000 30000 32000 32500 34000
Sales publicity 40000 48000 42000 50000 49000
Direct selling 24000 31000 28500 24000 30000
Total 89000 109000 10500 106500 114000

 Monitoring and Controlling: Budget must be checked at regular intervals in order to evaluate
performance of the company. If there are any extra occurs factor which affects the performance of the
company than that must be controlled (Wilson and Popp, 2017). From the above budget plan it could
be easily interpreted that the company incurred additional expenses on promotion and publicity. So the
company needs to control such expense in order to work an effective manner.
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Marketing plan refers to a document in which complete facts are described which will be performed by
the company in the coming year. In marketing plan of Burberry, the vision, mission and objective of the
company are properly explained, which will give direction to the company in which it needs to perform.
DETAILED EVIDENCE -BASED MARKETING PLAN

Marketing plan is done in order to expand operations of business by developing a new product for which
Marketing mix plays an important role. It covers 7Ps namely product, place, price, promotion, physical
evidence, people and process. In above context, 7Ps of both Burberry and Gucci in order to improve the
operation of business. The marketing mix helps the company to attain a dynamic position, stay
competitive and also provide guidance to improve the business operations.
STRATEGIC PLAN THAT MAKE USE OF 7PS

 Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
Macmillan International Higher Education.
 Moore, F., 2016. Transnational business cultures: Life and work in a multinational corporation.
Routledge.
 Piller, I., 2017. Intercultural communication: A critical introduction. Edinburgh University Press.
REFERENCES

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