Roles, Mix, and Interrelationships: Burberry Marketing Report

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This report offers a comprehensive analysis of Burberry's marketing strategies, examining the roles and responsibilities of marketing functions, their interrelationships with other departments, and the application of the marketing mix. The report begins with an introduction to marketing and its significance, followed by an overview of Burberry, a luxury fashion house. It delves into the roles and responsibilities of marketing managers, including developing marketing strategies, managing the marketing information system, conducting marketing research, creating customer satisfaction and loyalty, dealing with competition, and setting product strategies. The report then explores the roles and responsibilities of marketing within the context of the marketing environment and the organizational context of Burberry. It also analyzes the significance of interrelationships between marketing and other functional units, such as R&D and finance. The report then examines the application of the marketing mix (product, place, price, promotion, process, people, and physical evidence) within Burberry's marketing planning process, comparing it with Marks & Spencer. Overall, the report provides valuable insights into Burberry's marketing practices and their effectiveness.
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Marketing Essentials
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INTRODUCTION
Marketing is considered as the ongoing process which consists of different functions
which are promoting, distributing good quality products and services in the market. Marketing is
a wide scope that includes the elements like products, person, property, ideas and informations
that assist the business organisation to sustain in the market for the long period of time. It can be
stated as a technique which helps the organisation in in promoting their products to fulfil the
demands of the customers in effective manner to increase their satisfaction level (Abafita,
Atkinson and Kim, 2016). The present report is based on Burberry which is a UK based luxury
fashion house, situated in London, England. The organisation commenced its business operations
in the year 1856 and was established by Thomas Burberry. They have around 500 locations
worldwide. The project will discuss the roles and responsibilities of the marketing functions,
interrelation with the other departments of the organisation. The report will also include the
marketing mix and business plan will also be made in the report.
LO 1
Roles and Responsibilities of marketing function
Marketing-
Marketing is a process of building and maintaining relationship with customers and
satisfy their need and want. It is an activity that offers value to customers,clients, partners and
society at large. Marketing involves identification of customer need and fulfilling the wants of
consumer to achieve the organisational goals.
Concept of Marketing-
The concepts are formed to analyse the needs of their potential customers and making
effort to satisfy their need. The concepts are production,product, selling, marketing and societal
marketing concept. Marketing orientation has defined as a “philosophy of business management”
which includes following policies. Production concept is related to producing maximum volumes
by producing cheap products to maximise probability and scale. Product concept is selling more
products which offer quality, performance or innovative features. Selling concept is the efforts
which are made to persuade the consumer to buy more and the focus is on selling firm's existing
products. Marketing concept focus on identifying needs and want of target market and providing
value to their need better and early from their competitors. Marketing is a customer-oriented and
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organisational oriented approach Societal marketing concept is related to fulfilling the demand of
society and providing better quality product considering a social act. Burberry uses this concept
of marketing to achieve their marketing and organisational objective.
Roles and responsibilities of Marketing Manager-
A marketing manager is the person who manages all the marketing activities and
channelise the marketing resources effectively for a business. The manager is accountable for the
various product or services. A manager should be cooperative and friendly with the subordinates.
The manger also need to be highly focused regarding their target and goal and meeting budget
restraints. There are following function manager of Burberry required to perform are- Developing marketing strategies- The marketing manager of Burberry is required to
analyse the needs and wants of customers and plan strategies to add value in the product
and provide superior value. It is a managerial process which develops and maintain
balance between organisation's objectives, skills, resources and its changing marketing
opportunities. The strategic planning can be applied at four levels which are corporate,
division, business unit and product. Marketing Information system- The marketing managers of Burberry require marketing
information system for market and product analysis, planning and implementing and
controlling responsibilities. This provides important information and distribute it where
the information is required. Marketing research- The marketing manager of Burberry after analysing marketing
environment, it is necessary for manager to acquire company- specific knowledge and the
knowledge can be related to their product, company, market, target consumer group.
Modern manager prefer hiring of professional for conducting research and research can
be conducted for new product development or product modification. Creating customer satisfaction and loyalty- Customers prefer product that offers
maximum value. They choose the firm which offer highest customer value and various
quality management programmes to build customer loyalty. It involves examining
detailed information about individuals customers and using the information to win their
trust. The manager of Burberry performs this detailed examination and deliver customer
satisfaction.
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Dealing with competition- The competition in the market is taking new dimensions. The
competition is increasing through globalisation, online marketers, private label marketers
and brands extension. The role of marketing manager of Burberry is to identify
competitors strengths, objectives and weakness and to use all information in productive
manner.
Setting product strategy- The marketing manager of Burberry form marketing plan and
formulate offers to meet the customer needs. The customer will choose on the basis of
product features and quality, services mix and quality and price. All these qualities are
mixed and a offer is made to customer and tried to sell more products. The manager has
to decide that which product line to grow and modify and set pricing policies in response
to changes in competitors prices.
Analyse the roles and responsibilities of marketing in the context of the marketing environment.
To identify the roles & responsibilities of marketing in different marketing environment,
the manager in Burberry is needed to evaluate political, social and economical aspects which can
considerably impacts the profit margins and sales figure of the company. For instance, if the
needs and choice of consumers will change regularly then it is the responsibility of marketing
department to identify their choice and preference so that the concerned firm can offer products
and services in accordance with the demands of customers. This will benefits the company in
enhancing their growth and sustainability within marketplace.
Roles and Responsibilities of marketing related to organisational context of organisation
Burberry is a luxury fashion brand offering its products to population of United
Kingdom. This organisation is a composite of a number of departments working together to fulfil
organisational goals and objectives. Marketing managers within Burberry have to develop
optimum strategies so as to tap the advantage of opportunities present within the market. In this,
marketing has some specific roles and responsibilities which are briefly explained below:-
Co-ordination of Marketing Campaigns: This tends to be one of the most crucial roles
of marketing managers of Burberry where they have to take a control over the marketing
campaigns organised by the company. To facilitate coordination among departments, marketing
department takes assistance from other departments present within the entity so as to ensure
effective execution of marketing campaigns to gain the attention of a large number of people
(Eren and Gorgun, 2015).
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Integration with Employees: Employees are regarded as the most valuable asset of a
company as they are the ones who are collectively responsible for ensuring the growth or
sustainability of organisation. Thus, marketing department consider the needs and demands of
employees so as to fulfil them accordingly. This ensures their better engagement within every
activity.
Effective CRM: Marketing manager of Burberry develop strategies as well as plans
aimed at ensuring growth and sustainability of organisation in market. Also it provides assistance
to company in building a strong and loyal customer base and a positive brand image of entity in
minds of consumers (Galimberti and et. al., 2016).
Risk Taking: Striving for growth and profitability is the main aim of marketing
department and they take risks to ensure this. Marketing manager of Burberry has to market the
new and unique offerings of company and a high investment is required for doing so to gain
increased profitability in market.
Besides this, it is important for marketing department to create effective relations with
other departments of company to derive desirable outcomes. In context of Burberry, such
interrelationships are defined below:-
R&D and Marketing: The market in which businesses operate is highly dynamic and
changes take place here at rapid intervals. In this regard, Research & development department of
Burberry provides effective information about market trends and technologies to marketing
department so that they can carry out promotional campaigns and plans in an effective manner
aiming at increment in sales and profitability of company.
Finance Department and Marketing: Finance and marketing department have to work in
coordination to ensure orderly conduct and timely execution of activities. The marketing plans
and campaigns of Burberry can be executed only when the finance department allocates required
funds to marketing department in timely manner. This ensures that the marketing activities take
place in an effective thereby helping the organisation in enhancing its sales and profits (Gao,
Zhang and Chen, 2017).
Analyse the significance of interrelationships between marketing and other functional units of an
organisation.
Appropriate relation between different departments within an organisation results in
enhanced profitability and productivity. This is because all the work is carried out in a systematic
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and appropriate manner that results in timely completion of tasks. For instance, good relation
among marketing and R&D department will benefits the R&D department in appropriately
understanding the market environment and needs of customers (Nagg and et. al., 2016). This
will benefits the company in enhanced sales and profitability. If these departments will not work
coordinated manner then it will became difficult for Burberry to satisfy the needs of its
customers.
LO 2
Various ways through which organisations apply marketing mix to marketing planning process
Marketing mix is referred as a marketing tactics which is utilized by a firm to gain
competitive advantage in marketplace over rival organisations. It incorporate different kinds of
activities which will help Burberry in enhancing their brand image and market shares. This
tactics will benefits the firm in reaching out right product to the right people without facing any
complexity (Griffitts, 2016). It is an important aspect which is related with marketing and sales
of products & services. Marketing mix includes different factors such as place, price, promotion,
product, process, people, physical evidence etc. these factors are mentioned below:
Components Burberry Marks & Spencer
Product Products of Burberry are offered under
five categories and each of this category
have a different product line.
Commodities are available in different
varieties due to which customer can
choose from wide range of options.
Collection of company includes
Burberry prorsum, Timepieces, Burberry
Golf, children cosmetics and wears,
Burberry Brit etc. Accessories products
of company includes leather bags of
ladies and wallets for men. To enhance
the worth of its products, Burberry can
provide additional benefits to customers
M&S is one of the top retail chain
brand worldwide and offers products
for women, men and children. For
women, product offered by company
are cardigans, linen, cashmere, skirt,
jeans, loafers, sandals, boots,
sunglasses, beach bags, handbags etc.
for men available products are shirt, t-
shirts, jeans, casual wear etc. home
and furniture products are also offered
by company. Other than that M&S
offers food and wine section which
offer main courses, dinner and lunch.
Beside this, company sells gift items
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like delivery, credit, warranties, helpline
service etc.
and flowers.
Place Burberry sell its products through two
marketing channels i.e. online and
through wholesalers & retailers. In UK
only products are sold by approx 500
retailers, due to which products offered
by company are easily available to
consumers. Distribution channel of
Burberry is very fast and efficient. Motto
of company is one brand, one company.
It is an international brand which is
successfully operating approximately
1000 stores in around 50 countries.
Main business of company is in UK
and manages more than 600 stores
there. Company also offers online
services to its customers where clients
can order products online and gets
home delivery. For limited products,
M&S also offer international delivery.
Price Company uses competitive based pricing
strategy as information and data from
rivals is easily available. Due to more
features and high quality, products
offered by Burberry are priced high than
rival companies. Other pricing strategy
used by company is product bundle
pricing where products are given in
bundle to customers at less price. Online
products of company are slightly high
priced as delivery costs are included in
them. To further enhance their reach,
company can opt penetration pricing
strategy.
As company has in house brand for
kids, men and women, company
prefers to follow competitive pricing
strategy. Products of company are
priced as medium to high. Other than
this, company follows dynamic
pricing strategy in which offers and
discounts are given to customers on a
seasonal basis. In these discounts, old
products of company are put on sale at
a lesser price than new products.
Promotion Company uses different media channels
to advertise their products such as
traditional media that includes promotion
through radio and television. Other
Company adopts its marketing
strategy very tactfully by taking help
of digital marketing and in store
strategy. For promotion company uses
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modes of promotion are social media and
online advertising which is a cheaper
way to advertise. Social media such as
Facebook, YouTube, Twitter etc. are
widely used for promotion. Company
also undergoes sales promotion through
trade exhibitions and events (Macgregor
and Prosser, 2017).
all medium of communications such
as TV, radio, print media and other
online & social media campaigns.
Company uses its official website to
promote its products. To promote
further, company give special
discounts to loyal customers. Other
than that company has introduced a
program called spark where points are
rewarded to customers according to
their shopping.
People Company have employees working in
sales team which plays an important role
in its high revenues and profitability.
Customer service department of
company benefits in resolving the
queries of people regarding product.
Other important assets of company are
its employees which are working at retail
stores.
Company employees more than 83000
employees worldwide. Firm has
adopted competitive payment policy
so that employees can retain for a
longer time period. Beside this, basic
pay is given to workers on the basis of
their performance. Workforce is given
special discounts on online and offline
shopping.
Process To ensure that there products will always
be available at outlets and stores, a
system is installed that helps the retailers
to notify company about low inventory.
Firm also has online delivery process
where products are delivered to
customers without charging any shipping
fees.
Outlets of company are found that sub
urban and malls. These outlets are
well themed and properly organised
and have different sections for gifts,
floor and clothes. In these outlets,
ground floor is for clothes, personal
and home products. Second floor is
for gift shops and furniture whereas
third floor is for food.
Physical Firm sale its products and commodities Company operates at more than 1000
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Evidence in different colour packages due to
which customers are able to easily
identify them. Shelves on which
products are placed also have distinct
design and colour. Another physical
evidence for company is its online
website.
stores in 50 nations which acts as a
physical evidence for M&S. Other
places where physical evidence of
company can be widely seen are
Spain, turkey, France, Ireland etc.
products offered by company such as
gifts, flowers, clothes also acts as
physical evidence. Official website of
company is another physical evidence
for company.
Evaluate different tactics applied by organisations to demonstrate how business objectives can be
achieved.
Marketing mix is a strategic tactics which helps the managers in an organisation to
formulate different kind of strategies so that high sales can be achieved. To gain advantage over
rivals, company has carried out market mix and implement different plans. Burberry is required
to give specific training to its workforce so that customers can be satisfied in an appropriate
manner (Hugos, 2018). More investment is required to be invested in technology so that
workforce can perform complex task in a simple manner. By this effectiveness and productivity
of company will improve which will assists in achievement of organisational goals.
LO 3
Marketing plan for Burberry
It is a formal document in which future strategies of an organisation are mentioned. This
plan benefits the company in performing their business operations in an advantageous manner.
Different aspects associated with marketing plan are stated below:
Company overview Burberry group is a Britain based fashion house, situated in
England, UK. Main offerings of company are fashion accessories, fragrances, trench coats, ready
to wear dresses etc. At present company is successfully operating at more than 50 nations and
was established in 1856 by Thomas Burberry (Ko, Costello and Taylor, 2017).
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Vision and mission – Main mission of the firm is to sustain its integrity and validity
along with managing a business which is relevant with customer taste and emerging markets.
Vision of the company is to be a market leader in digital marketing and building a social
enterprise.
Objective– The objective of Burberry is to make use of digital technology to effectively
carry out marketing of activities aimed at enhancing the sales and profitability of enterprise.
With this, organisation is striving to enhance their share in marketplace by 20 % by the end of
next 2 years.
STP approach
Segmentation – Burberry has carried out segmentation of marketing on the basis of
geographical characteristics.
Targeting – This organisation is targeting millennials within UK as they are always
active over digital media.
Positioning – This entity is positioning its product within their outlets as well as on their
website by taking into account the needs and preferences of people.
SWOT Analysis
This analysis is done by organisations to gain knowledge about their internal as well as
external capabilities. SWOT analysis of Burberry is given below:-
Strengths Weaknesses
This organisation has a strong presence
within luxury market of UK.
The company is making use of digital
technology to gain the attention of a
large quantum of people towards the
offerings of entity.
This organisation only focuses upon
elite section of society.
Opportunities Threats
This entity stands a chance to tap the
advantage of selling their products at
reasonable prices to gain the attention
The rival entities present within luxury
fashion market act as threat for the
company.
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of customers belonging to all economic
groups.
The digital technology used by
company will give a chance to
company to enhance its loyal base of
customers.
Budget – The estimated amount of money for launching digital technology is given
below:-
From the above budget, it is visible that the company is investing 15000£ in the first year
of launching the technology, whereas the firm needs 7000£ for promotion of digital technology
in the market.
Marketing mix
The marketing mix for the burberry is discussed below for providing the new digital
technology in the market. The 4p's of marketing mix is discussed below:
Components Burberry
Product The new technology that is being brought within this organisation is
digital technology which consists of a number of effective tools and
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