Burberry Report: Macro-Environment, Customer Behavior & Growth

This report provides a detailed analysis of Burberry's marketing strategies, focusing on the role of macro-environmental forces, particularly the impact of Brexit, and the adoption of innovation. It examines the potential impact of customer behavior on the organization's processes, including the shift to online shopping and the importance of segmentation (geographical and demographic) and branding. The report further explores growth opportunities within the macro-environment, such as strategic alliances and product line extensions. The analysis highlights Burberry's competitive advantage, its use of technology, and its ability to adapt to changing customer preferences and market dynamics within the fashion industry. The report emphasizes the importance of understanding customer behavior and leveraging opportunities for continued growth and development.

Creating Business
Excellence and
Marketing

Table of Contents
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
A. Role of macro environment forces on the organisation.............................................3
B. Potential impact of the customer behaviour that can change organisation
processes.......................................................................................................................4
C. Potential impact on customer behaviour that might change the process of firm......6
D. Determine the growth opportunity within macro-environment ..................................7
CONCLUSION...................................................................................................................8
REFERENCES..................................................................................................................9

INTRODUCTION
Marketing is the ongoing process of an organisation that is associated to carry
out the communication process and build effective relationship in terms to cater the
need of the customer. It even involve planning, educating and informing the confined
group about the innovation in order to grab their attention and carry out repeat
purchasing effectively (Asif and Gouthier, 2014). For the better understanding of report
Burberry which is public limited company has been selected. It is the fashion hub and
distribute various fashionable accessories, outfit, cosmetics items as well as sunglasses
to the customer. It is one of the most evolving industry that operate in different parts of
the country and effective understand the latests requirement in order to widespread its
operations successfully. This report cover topics like explanation of the strategies that
help the firm to gain competitive advantage. Along with that it critically analyse the
potential impact on the customer behaviour. Further, critically analyse the different
growth opportunity within macro environment that helps to attain core competency are
covered in the report.
MAIN BODY
A. Role of macro environment forces on the organisation
Macro-environment factor refers to the external factor that cannot be controlled
by an organisation but affect its day to day operations. Any change in the macro
environment direct affect the functioning of Burberry. So it is significant to shape
competitive strategy in order to gain the long term competitive edge as well as desirable
amount of profitability (Agostino and Sidorova, 2016). Explanation of different factors in
context to the role of Brexit and use of innovation that can affect the strategies and
activities of Burberry company are determined below:
Political factor: These factors involve the domestic rules and law that are
prepared by the local authorities and is necessary for both local and global company to
render. Burberry company has extended its operation in approximately fifty countries
which require them to understand the political condition of different geographical area.
Along with that respected company mainly operate in the developed areas where in
comparison to the emerging economies political conditions are quite stable (Secundo,

De Beer and Passiante, 2016). Additionally, even after uniform condition company need
to carry out functioning effectively like during the time of Brexit the multinational
countries who majorly gain revenue from UK experiences negative implications
(Carvalho and et. al., 2019). So Burberry to balance out its condition compensate by
enhancing the sales from other geographical area.
Economical factor: It involve the disposable income or spending power of
consumer based on which company need to strategies its policies (Caldwell, Licona
and Floyd, 2015). Initially, Burberry used to generate enormous revenue due to free
trade zone within European union. But later on it received negative implication due to
existence of Brexit as it lower down the profit margin of large global companies like
Burberry. Still most of the people that fall under upper class buy the products of
respective company because it acts as a status symbol for them that matches their
personality.
Social factor: This involve the culture, lifestyle as well as trend that is necessary
for the firm to understand in order to start the operation and diversify business.
Especially fashion industry is one of the most evolving ones in terms of latest design
and pattern that appeal the interest of audience (Metaxas and Koulouriotis, 2014).
Burberry usually engages the wide pool of potential customers through the different
social media sites such as Instagram and Twitter to collective gain the vital information
and enhance the experience of customer. Hence, as within EU respected company
need to pay more tariff but such strategy to connect the customer can leads to long
terms profitability.
Technology factor: Burberry has become one of the latest innovations in terms
of adopting latest technology. Like, it display live streaming video where customer can
instantly overlook the different stuff and place the online orders which they physically
receive at the footstep of company. Thus, adoption of latest technology in terms of the
luxurious items help firm to overcome negative implication of Brexit and gain
competitive advantage (Crema, Verbano and Venturini, 2014).
B. Potential impact of the customer behaviour that can change organisation processes
Burberry is one of the fastest expanding global brand that has gained the
immense trust of customers and recognised value by competitive against the premium

fashionable brands effectively (Ogunsiji and Ladanu, 2017). Within the home country
that is UK, respected company has established valuable image in terms to deal with
customer through brick and mortar outlet as well as online platform. The company has
the wide coverage area in terms to showcase the latest collection and design of outfit
for the preference of loyal customers. Along with that it immensely uses the digital
technology to display online catalogue, understand the buying pattern of customer and
successfully appeal the interest of prospectus (Chaffey and Smith, 2017). Due to the
immense presence of company and objective to gain result at real time Burberry has
successfully gain competitive advantage over other as it constantly bring alternative in
order to justify the prestigious prices of the commodity. Therefore, the company
successfully adopt the differentiation strategy in order to manage the internal activities
and carry out operations effectively.
Segmentation is the process that is used to subdivide the mass market into the
small subsets on the basis of preferences, behaviour, income as well as profession of
the audience. There is the huge importance of this marketing strategy as it let the firm to
focus on the particular group that can assist the firm to create value addition and gain
significant position (Marketing Strategy of Burberry, 2018). Burberry is the global brand
and distribute its goods and services at different parts of the developed and developing
countries. So the internal manager of company prefer to offer differentiated offerings to
its customers that help to build the significant image. The company uses different types
of segmentation that are explained below:
Geographical segmentation: Burberry started its operation by selling the
outwear items such as coats, gloves and scares in London. Later on it generate
desirable revenue and expand its operations in the other countries where disposable
income of customer is high by launching different items like bags, accessories and so
on ( Dlačić and et. al., 2014).
Demographic segmentation: The company target to both men and women who
fall under the age group of 20 - 40 years as the prices of the products are relatively
higher. There main customers are the independent people that have achieved certain
position in their lives like businessmen, entrepreneur and so on. It simply target the

audience who are the part of high social class so that they do not hesitate in terms of
pricing while making the final choice.
Targetting is the marketing strategy that assist firm to focus on the specific
customer group that can help the firm to gain best possible revenue (Macpherson and
et. al., 2015). On the basis of selection of specific group the company plan out the
suitable advertisement technique that appeal the interest of audience and promote the
sales of commodities. Burberry usually target the customers of higher income group that
are mainly adults who can invest the premium amount in the variety products like
clothing, cosmetics, accessories and so on.
Positioning refer to the sophisticated way by which the company set favourable
image through advertisement and brand promise in the minds of customer. Based on
this technique the company overview the certain brand accordingly. Like, if the brand
promise that they serve the best quality of outfit then they need to meet the needs of
customer accordingly (Enquist, Johnson and Rönnbäck, 2015). Otherwise in case if the
company lack to accommodate the requirement of customer then it leads to dissonance
and affect the presence of brand. Burberry has strong presence in the social media that
help them to understand the need of customer and target them accordingly. Within the
premium range it has huge base of the loyal customer because it has build desirable
position due to which most of the customer are reluctant to switch to the competitors
brand (Liu, Lee and Hung, 2017). Therefore, maintaining strong strong customer
relations does not affect the positioning of firm even if rivalry lower down its prices.
Branding is the process that entails the use of logo, sign or name in order to
recognise the particular brand and distinct it from the other alternatives available in
market. Burberry has done branding as the luxurious house that offer supreme level of
quality for both men and women (Dubey and Gunasekaran, 2015). The premium
pricing and skimming pricing strategy has helped the company to gain the loyalty
amongst the high social class people and uses particular brand in order to reflect their
status symbol.
C. Potential impact on customer behaviour that might change the process of firm
Customers are the sole stakeholders of company that help them to earn the
revenue and gain immense profitability. So it is the responsibility of each and every

business entity to sell the items which customer actually needs and satisfy their
requirement. Due to the globalisation and wide dependence on technology has laid the
firm to share all the necessary details, information as well as opinion to influence the
buying behaviour of customer. This has dramatically evolve the pace of maintain the
effective relationship with customer through digital medium. The potential impact of the
customer behaviour within the operations of Burberry company is Switching of customer
from mall shopping to the online shopping. Nowadays most of the people both male and
female work outside so instead of reaching out to a particular place (Jaeger, Matyas,
and Sihn, 2014). Customers then explore the website or e-commerce site and explore
the online catalogue of different companies. This has lead to the affirmative impact in
the operations of firm as they get the better area by which they can enhance their
technology and understand the changing trend of the customer. In comparison to the
traditional business use of digital media and google analytics can help the Burberry
company to retain the interest of their existing stakeholder and attract the new customer
effectively (Sheng and Hartono, 2015).. Along with that while making the online and
offline dealing the customer usually compare the quality and prices of different
competitors. So in order to cope up with this situation Burberry company extensively
uses the social media where they post their collection and inform customer about their
unbeatable offering. Therefore, this is an effectively way in order to deal with the
competitive pressure.
D. Determine the growth opportunity within macro-environment
In order to enrich the existing functioning of firm and gain global presence it need
to always exploit the opportunity that is available in the external market. Burberry
company with the objective to explicitly enhance its performance can avail the various
opportunity like from strategic alliance with the other companies in order to enter in the
emerging areas. Although the company deals in the premium product whose market is
more in the developed country (SWOT Analysis of Burberry, 2019). But by extending
the operations Burberry gets the opportunity to gain the additional revenue and
enhances the market share of company. This is the effective way to gain the potential
growth and development by penetrate in the large market successfully.

Along with that the company can extend the product line of their offering which is
gain a suitable way to attract the potential customer (Lee and Lee, 2015). For instance,
the company come up with the product range of men and women so along with that
they can focus on the new range that is exclusively designed fro kids. This is the
possible way for Burberry to gain the future opportunity effectively (Yang, 2015).
CONCLUSION
From the above report it has been concluded that marketing is a prominent part
of an organisation that help to expand the sales and attract the customers effectively.
To carry the operation it is vital fro firm to understand the macro environment and
external environment based on which strategies are articulated suitably. Along with that
focusing of the STP is essential to deliver the right commodities to the potential
customer which desirably maintain the efforts of company. Therefore, to gain the
advantage of sustainable performance the company needs to constantly explore the
opportunity that keep them ahead of rivalries and maintain the interest with prospectus.

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Online
SWOT Analysis of Burberry. 2019. [Online]. Available
through:<https://www.theodysseyonline.com/swot-analysis-burberry>
Marketing Strategy of Burberry. 2018. [Online]. Available
through:<https://www.marketing91.com/marketing-strategy-of-burberry/>