Marketing Essentials Report: Burberry Marketing Mix and Plan Analysis

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This report delves into the marketing essentials of Burberry, a prominent luxury fashion brand established in 1856. It explores the key roles and responsibilities of the marketing function within the company, including gathering information, making plans, budgeting, branding, meeting consumer needs, ensuring company growth, advertising, and implementing pricing strategies. The report also examines the interrelation of the marketing department with other departments like finance, HR, R&D, IT, and operations. Furthermore, it analyzes Burberry's marketing mix, covering product, price, place, and promotion strategies. The report provides an overview of the company's marketing plan, offering a comprehensive understanding of Burberry's approach to marketing.
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Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................3
1 Key roles and responsibilities of marketing function...............................................................3
2 Interrelation of marketing department with other departments .............................................5
3. Marketing Mix of organization ...............................................................................................8
4. Marketing plan.......................................................................................................................10
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Marketing essential is play vital role in any organization. It includes advertising, publicity
a sales technique. This report will explain the importance of marketing essentials in Burberry
company. Burberry established in 1856 by Thomas Burberry. It is famous fashion brand which is
leading in fashion market. It is global luxury brand with core out wear cloths. It designs
accessories, cloths etc. They sale their product by different sources such as retail digital
commerce, online stores and wholesale markets. Burberry business is managed by channel,
region and product which is supported by corporate functions. This report help to explain the role
of marketing and how marketing is interrelated with other functions in Burberry, It also explain
the roles and responsibilities of marketing the company. This report help to compare different
ways in which Burberry use macro environment factors such as 7Ps and in the end this report
help to evaluate the basic marketing plan for Burberry.
1 Key roles and responsibilities of marketing function
As Burberry is a British Luxury fashion company who operates worldwide and serve
more than millions of customers in a day. The major products in which the company deals in is
fashion accessories, clothing, footwear, eye wear, fragrances etc. being a global firm it is
necessary for the marketing department to promote its product in such a way that it becomes a
ruling company in the industry (Rangaswami, 2020). Marketing department of Burberry can
attract the potential customer.
There are few roles and responsibility of marketing function of Burberry
Gather and collect relevant information
The essential role of marketing department of Burberry is to collect the relevant
information about the products of the company. Marketing department is liable to collect the
reviews and feedbacks of customers about the product by doing so company can get to know
where they are legging behind and how they can improve so that they don't lose their potential
customer. Marketers try to understand that what product is being prefer by customers the most,
what kind of change they need in the products of Burberry and in what quantity they are
purchasing the product, all this information is gathered and analysed by the marketing
department.
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Making plan
Main motive of the marketing department is to make plans and policies as per the
information gathered by them. After conducting a market analysis, marketing department choose
the correct plan to promote their products. As per their plans production department works,
because marketing department gives relevant information about how much quantity is going to
sell in near future (Ungureanu, 2019). As per the policy, marketers do promotion in such markets
where people are unaware about the brand and products of Burberry.
Preparation of budget
The main responsibility of marketing department is to make accurate budget so that it doe
s not affect the revenue and profit of the company, all the marketing activities can bring out
efficiently. It is the another responsibility of marketers to prepare budget in such a way so that it
can determine the future situations as well. With the help of appropriate budget, Burberry can
reduce the unnecessary cost of marketing activity, which will help the company to maintain its
margin profit.
Branding
This is the main responsibility of marketing function to do branding of Burberry's product
in the market. Basically it is the procedure of making different product from competitors so
that customers can also differentiate them. It is up to the company that do they want to give
different name to different product or do they want to sell all the products under the same name
and in their own brand name.
Meeting up the consumers needs and wants
As the marketing department is well versed with needs, demands and perspective of the
customers, so it becomes easy to make such policies through which the customers can get their
desired product and they don't think to switch as customer loyalty is very essential and rare as
well, if the customer don't get their necessary product on time they can buy from other
substitutes.
Make sure about the growth of the company
Another responsibility of marketing function is to always ensure that company earn
growth every year, and the market share of Burberry get increases with passage of time.
Marketing department can help the company to attain its future goals and targets. As this
company follows customer centric approach so they try to provide high quality products to its
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customers (Cortez, 2019). For the growth of the company it is the responsibility of marketing
department to introduce the product of Burberry in developing country because the people living
there are hardly familiar with this brand, and they are crazy to use products of foreign company
for this they will not think much to pay the premium prices as well.
Advertisement
This is the main function of marketing department, for advertise their product they can
use social media platform of the company as the company is very iconic in the market so it has a
million of follower in their social media handle, so the marketing department has to update
relevant images and offer which the company is going to give to its customer, by doing this
customer will get aware about the latest collection and offers of the company apart from this,
company can hire a celebrity for the promotion of their products because it is the big brand in
clothing and accessories so when any celebrity endorse their brand on any award show and event
it will automatically increase customers for the company.
Implementation of right price
Price plays a critical role in very product if the prices of the product are too high to buy
so only a few people will buy the product, so it is the responsibility of marketing function to
adopt correct price so all the customer from different income group can buy the product. As
Burberry focuses on providing quality product, they put more emphasis on quality rather than
quantity, thus it makes the product little expensive. As the company has targeted high net worth
individuals to purchase their products, for increasing the market share they should introduce a
product range which will be available on affordable prices so the sale of the company get
increased. So this the responsibility of the marketing function to conduct research about it and
make appropriate plan for the same.
2 Interrelation of marketing department with other departments
Marketing plays a wide role in any company but without the help of other departments,
marketing can't get succeed. In Burberry, marketers bring the relevant information to other
departments and on the basis of such information other departments perform their job and
responsibilities. There is a relation, which marketing department maintains with the rest of the
departments.
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Relation between marketing and Finance
The collaboration between two departments are critical for Burberry, as both the
departments work in different directions (Malyarets, 2020). Marketing department is known to
spend funds lavishly, on the other hand finance department of Burberry tries to control the over
expenditure of funds. But marketing department has to work with finance to know availability of
fund and adequacy of budget, after knowing this marketing department can make their budget
and allocate the resources to meet the need of market research promotion, distribution and
advertisement. But finance department has to make sure about the tax return and various
financial laws as well.
Apart from this finance department has to mange the cash inflow and outflow of the
company, hence the working of both the departments are totally opposite to each other but
motive is same. Both the department wants that Burberry get immanence growth in the market.
The market share of Burberry increases day by day and company achieve their target and goals,
for this both the department coordinate to each other and share necessary information so that
both can conduct their activities smoothly in order to gain higher profit.
Marketing and HR
The work of these two departments are not similar in nature, as marketing department
works and look for external matter of the company on the other hand HR department works for
the improvement of the internal matter and resources of the company (Eyring , 2017). The major
role of HR is to select correct person for the right passion as Burberry deals in the clothing,
footwear and accessories so it is the duty of HR department to hire such candidate who have
very good knowledge of fashion and have skill to make some new product and bring innovation
in the product range of Burberry, on the other hand marketing department works to gather the
information from the people about the product, and remain in touch with the activities and trends
of the market.
Both the department has to work with each other, marketing department share relevant
information about the plans and policies with HR department, after getting this information HR
conducts meetings and sessions with the employees and make them, aware about the market
trends what kind of work company is expecting from them, and provide them relevant training to
enhance their knowledge so that they can perform their job effectively and contribute in the
profit of the company.
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Marketing and Research & development
The work of these two department are very similar in nature as both departments works
for the external analysis of the company, besides this the main objective of R&D department is
to keep the company update with the upcoming trend of the market. It is the responsibility of
R&D to bring innovative products to the company so that Burberry can remain competitive for
others (Edeling, 2020). On the other hand marketing department also conduct market research to
find out what kind of product customer want in their routine life and as per the information
collected by the marketers, R&D works to bring some improvisation and innovation to attract the
customers apart from this R&D also experiments with the taste of the people because people can
get fed-up by using same product, they want change for that both the department work together.
Marketing and IT departments-
In Burberry doing marketing they have to use some different strategies for promoting
their products and services. Company also done inter relationship between is such way that when
IT will bring some updation in their departments that could be more used by marketing while in
developing their goods. Marketing also helps IT in learning more about new technologies in
market and what needed to them for making their more developed. They both are important for
company along with they make more to create something new in their organization. Marketing
keeps supportive for IT department' in gain more knowledge about what's going in market and
what other companies are suing new technologies (Chernev, 2020). Companies must follow
demands of their market in which they can make their more developed and while taking help of
IT they can easily create different websites, social media and blogs so that customer can simply
make attraction towards company.
Marketing and operation department-
Operation department in company helps for making their products more attractive so that
they could make more customer. Marketing also helps their operation just for giving guidance in
how manner they should make their products in packaging, labelling and pricing. Marketing and
operation departments are interred related, and they try to make their company more developed
so that they can well trust of customer with selling their more products. They also play vital in
conducting their Burberry business meanwhile they are also important to each in which they can
simply make company more innovative and creativity.
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3. Marketing Mix of organization
Product:
It sells its products under different categories such as out wear, fashion accessories,
footwear etc. It's all products sold under its brand name. Burberry has different variety of product
customer select them according to their requirement. They sell unique and different product to
attract new customers. They sell traditional design for differentiation. Their product quality is
much higher than competitors. It recommended to Burberry that they should add additional
benefits for purchasing on their product so new buyer attract towards their product and it also try
to improve its packaging quality for transportation use. They can also introduce new and
innovative products in new market to fulfil customer expectations and needs.
Price:
Burberry's current pricing strategy is based on competitive environment. It also set
product price according to product quality and demand. If product demand is high then Burberry
increase product price and if demand is low then it set low price. It also charges extra price if
they sell their products online. Sometime it also fixed its price on final product. Burberry also
use optional product pricing strategy for certain products. It recommended to Burberry to
introduce some product with discount and offer prices for short term period to increase customer,
sales and profit. Burberry currently using product bundle pricing in this strategy product sold in
bulk.
Place:
When Burberry is deciding for its place than the decision of regarding the selling of
products is determined. For example, where they should sell their goods or what channel they
select for the delivery of their product. Place of product could be anything like selling in high
street stores, through warehouses or using the online platforms. The Burberry's objective should
be present their products in front of their targeted customers so that they most interest in buying
the products (Chou and et.al., 2020). The major points Burberry should need to consider before
placing its products in front of the customer that include, the most effective way of selling
product so that it attract larger size of consumers, access of correct channels of distribution,
analysation of competitors in the market etc. so that it increases the chances of selling the
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product with the maximum limit. Consequently, the brand or product should be display in that
way that is visible to its audiences effectively.
Promotion:
It includes various method of promotion like the advertising or marketing for example,
advertisement on TV, through email, by introducing podcast etc. Burberry should need to
carefully select the method for the promoting of its products as it directly impact on the brand
or decides success or failure (Sanober and et.al., 2018). The goal of this activity is to reveal their
products to the consumers and convince them to buy the from the Burberry company. If
company choose the wrong selection for its advertisement or promotes in the wrong time than it
might possible that it might ruin brand value. All these promotional tools can help Burberry to
put it message in front of its correct customers all over the world within a few minutes. The
important points that Burberry should consider is to find out the best time to promote goods or
services, the seasonality of market, the weather condition or find out about the competitor's
method of promotion etc.(HR and Aithal, 2020).
People-
This play important roles on focusing their development in employee along with building
their trust. For building stronger relationship Burberry provides the best employee training in
such ways that their employee are well-trained for developing their business more (Powers and
Loyka, 2010). Companies involves their workforce in taking decision about any matter and make
their more motivation by giving them some rewards.
Process-
Operation in Burberry are made clearly and well communicated to employee, and they
also make proper use of online portals for their people management. Burberry also maintained
quality and make their product while managing their quality. Process and polices are most
important part for Burberry for keeping their quality of products and stakeholder. Also ensure
about company should have make some policies to their employee and customer so that they
make their to earn more profits.
Physical evidence:-
Burberry maintains proper design and also enjoy offering their product to customer. It
controls and have more experience with making interaction among their customer. As they also
started business online in which they are attracting more customer, while by having websites
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they developed Burberry more products (Efanny and et.al., 2018). Company also used some
unique packaging along with company logo. Website design in such way that more customer can
attraction.
4. Marketing plan
Marketing plan is document which outlines strategies that organization needs to
developed in their business for reaching towards their target goals. It describes company
activities that involves in managing particular market objective within set of frame work.
Marketing plans start to identify customer needs through research in market along with that
business need to satisfy while generating something in return.
Objective-
To increase online shopping market sale of business by 15% end year of 2021.
Situation analysis-
Internal and external analysis in conducting business this situation states about
competitors and customer tastes. Here following are situation analysis-
SWOT:
Strength:-
Burberry is manufacturing clothing company and fashion products. It also known as
providing high quality of goods along with clothing in which they have gain more customer
satisfaction. In recent time Burberry have started business online shopping through which their
customer can get more benefits and company make their roots for working stronger (Sumarwan,
2019). They are mainly promoting their products through TV, radio, websites and newspaper.
Burberry understand customer needs more furthermore now they have interaction with customer
through having online shopping.
Weakness:-
Although pricing have suggests proper desirability and quality for high price as they try
to give products which comes under their customer budgets. Present time many other
organization have started their business online with having some different discount and
strategies, so Burberry needs to make more strategies through which they can easily adopt
market place. Specially young age have been more inspired by their products and services.
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Opportunities:-
Changing in lifestyle and expansion of product line can be great opportunities for
Burberry. In e-commerce company can well-developed their product line in creating more other
goods while at aforesaid time it could be different from other competitors. Increasing demand in
online shopping of any products and services.
Threat:-
Competition have been increased and also changes in customer lifestyle that could be
major threat (Chernev, 2020). Fake products also make customer for untrusted in their company,
this could damage the images of Burberry in market.
PESTLE:
Political factor:-
Burberry operates their business in all over the world with having their various products
and services. As they have also started their business online through which they can easily make
more customer and try to attract more customer for developing their more market place. Brexit
has left behind their environment, in this many countries have to change their working rules
along with investors have stopped for investing in any business. Burberry's organization has
highly impacted of political factor, having high tax imposed to increase sales in other countries.
Economic factor:-
With growth of price lead to have reduced disposable income sources. In Covid-19 they
have sold fewer products because Burberry gets effected by tourism sector. From side online
business shopping company can use their pricing tags, discount. Usually companies affected
more by local brands as well international competitive brands. Economic of every business has
come down so that they are not earning many profits and income of people being effected more.
Social factor:-
Some people love to prefer Burberry dresses so for that company have started their
business online in which they give more majority to clothes product (Efanny and et.al., 2018).
Organization used social media platforms including Face book, Instagram to create engaged with
their customer and collect information. After collection of information company required to
work on their experience in products.
Technological factor:-
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Live Burberry allowing their consumer to shop online and get door step delivered. Online
shopping may be developed more efficiency while travelling their customer easily prefer to use
their website and give feedback. Online business make company more luxurious along with that
company also provide very fast delivery, which helps in reducing competitive advantages.
Environmental factor:-
Company has made their product without harming environment such as socks, inner,
pants etc, so from this they can simply make more customer attraction. Burberry have also
committed for reducing print carbon and hazardous gas coming out from their manufacturing
plants (Powers and Loyka, 2010). In online business company take care about social distancing
due to current pandemic, to take action Burberry have started their business online in which they
can gain more customer.
Legal factor:-
Burberry operated their business worldwide and for that they are required to follow
various rules and regulation. While conducting e-commerce business companies needs in
adopting more changing policies which is related to various countries.
Marketing mix
Products:-
Online shopping have many products such as clothing, fashion and beauty products. They
are with much discount and offers as well in budget of every level of people. Women wear given
major priority as companies designed them in more proper ways. Also, maintained about quality
and durability.
Price:-
E-commerce companies have provided many sales, offers and less price from stores
price. Mainly global marketing of companies depended on pricing strategies and more about
brands demands along with their research. Burberry specially provides offers on luxury items so
that each levels of people can buy easily.
Place:-
Creating different websites, social media pages, blogs. Where more and more customer
can reach out in searching of their products (Mohseni, 2017). Their websites should be much
attractive in such ways even small children can also search their website quickly.
Promotion:-
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High class magazines media have been made used for promoting their business. Burberry
has given special investing in advertising their products and services.
People:-
in having business online they have to hire the best employee who can easily manage
their work and proper guidance to customer in explaining anything about products.
Physical evidence:-
Company can easily create attraction website through which they gain more customer and
reduce competition from market place. They basically used websites and social media, as
meanwhile more and more searcher can be their of goods and services.
Process:-
In online business they have make proper use of transportation facility so by that very
fast delivery can be done.
Financial plan
Expenses Costs (Ā£)
Transportation 20000
Advertising 10000
Technical staff 15000
Other expenses 25000
Total 70000
KPI
Social followers-
Creating business online they are required to have developed their pages on websites
through which they can make more customers (Sumarwan, 2019). Most of the peoples use social
media platforms at that place Burberry can easily conduct their business.
Time on site-
Innovative websites that should not take much time and must be attractive in such way
that customer will try to do research deeper.
Competitive pricing-
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Pricing should be done in proper way meanwhile if customer do not understand that they
must be contact with employee. Pricing strategies must be different from other organization.
CONCLUSION
To conclude, the above report elaborate about the company's main roles or responsibility
of marketing function that may effect overall growth of an organisation, apart from this
interconnection of various roles of marketing function with other functions like marketing or
finance, IT or marketing, Finance or marketing to organisational context is explained as how
this interrelationship bring advantages in an effective manner and how the company could bring
benefits from all these relationship. Further, the report elaborate about the various marketing mix
and its usefulness in which company is used this marketing mix and explain different ways that
an organisation is using this marketing mix tools in their management so that it bring positive
impact on the performance of every functions and it result in achieving the overall productivity
in an organisation. Lastly, the report elaborate about the brief discussion of marketing plan and
how company can achieve its accountability in the workforce. With overall explanation, how the
company can bring essential techniques or methods so that improvisation can be done in an
effective manner.
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REFERENCES
Books and Journals
Chernev, A., 2020. The marketing plan handbook. Cerebellum Press.
Chou, S.F. and et.al., 2020. Identifying the critical factors of customer behavior: 14An
integration perspective of marketing strategy and components of attitudes. Journal of
Retailing and Consumer Services. 55. p.102113.
Cortez and et.al, 2019. Marketing role in B2B settings: evidence from advanced, emerging and
developing markets. Journal of Business & Industrial Marketing.
Edeling and et.al, 2020. The marketingā€“finance interface: A new integrative review of metrics,
methods, and findings and an agenda for future research. International Journal of
Research in Marketing.
Efanny, W. and et.al., 2018. The relationship between marketing mix and retailer-perceived
brand equity. IMP Journal.
Eyring and et.al, 2017. How HR and Marketing Can Partner for Growth. People &
Strategy. 40(4). pp.14-20.
HR, G. and Aithal, P.S., 2020. Integrated Marketing Mix Framework for Baby Care Retailing in
India. International Journal of Applied Engineering and Management Letters
(IJAEML). 4(1). pp.191-218.
Malyarets and et.al, 2020. Optimization Of Indicators For Management Of Enterprise: Finance,
Production, Marketing, Personnel. Studies of Applied Economics. 38(3 (1)).
Mohseni, S., 2017. Marketing Plan for Kajaani University of Applied Sciences Library.
Powers, T.L. and Loyka, J.J., 2010. Adaptation of marketing mix elements in international
markets. Journal of global marketing. 23(1). pp.65-79.
Rangaswami and et.al, 2020. The role of marketing in digital business platforms. Journal of
Interactive Marketing.
Sanober, N. and et.al., 2018. Impact of Marketing Mix Strategies on Consumer Purchase
Intention.Page. I. p.52.
Sumarwan, U., 2019. Pemasaran Strategik: Perspektif perilaku konsumen dan Marketing plan.
PT Penerbit IPB Press.
Ungureanu and et.al, 2019. The Role of Marketing in Managing Modern Organizations.
In International Conference on Economic Sciences and Business Administration (Vol. 5,
No. 1, pp. 214-219). Spiru Haret University.
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