Burberry Marketing Analysis: A Comprehensive Report

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MARKETING ESSENTIALS
BURBERRY

Table of Contents
INTRODUCTION........................................................................................................................2
TASK 1...................................................................................................................................... 3
REFERENCES........................................................................................................................... 12
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INTRODUCTION
The competitiveness in the business environment has been prevailing significantly such that
it has become important for the organization that they work on their operational practices
in order to attain effectiveness. There are different areas in the business where the
organization could improve for gaining the desired outcome. Marketing is one of the key
areas which possess a huge role in the success of the organization (Brassington and Pettitt,
2012). The marketing operations of the organization provide a significant advantage to the
organization in gaining a potent image in the market. A report has been developed in order
to attain insights regarding the principles of marketing in the organization, Burberry. In
addition, a marketing plan has been developed for Burberry by considering their competitor,
Zara, in the business. Furthermore, substantial information and application of market would
be attained through the report.
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TASK 1
INTRODUCTION
Burberry is a London based fashion house which has been carrying their operations since
1856. There are around 500 locations in the world where the organization has been
conducting their operations and also they have maintained a substantial position in the
market (Burberry, 2019). The brand name of Burberry has been maintained in the market
due to their marketing operations as it has been helpful in gaining substantial name at the
global level. A report has been developed which discusses the marketing concepts along
with its role in Burberry. Further, the application of the marketing mix of Burberry with Zara
has been applied.
PART A
MARKETING AND THE NATURE OF MARKETING
The meaning of marketing could be evaluated in term of traditional and modern manner. In
the traditional manner, the marketing is termed as the business activity where the products
and services of the organization are directly provided to the customers (Groucutt and
Hopkins, 2015). The modern marketing definition has been presented by Philip Kotler, the
social and managerial process of the organization through which they understand the needs
and desire of the consumers which help in developing and offering the products and
services in the market (Kotler and Armstrong, 2013). Furthermore, the nature of marketing
possesses a huge role in the functioning of the organization. There are various aspects under
which the nature of marketing could be understood such as human activity, consumer-
oriented, technology, exchange process, consumers, goal-oriented, dynamic process, utility
development, etc. Burberry has been conducting their marketing operations by considering
the nature of marketing.
MARKETING CONCEPT
Moreover, the importance of marketing concepts in the functioning of the organization has
been huge. There are different kinds of marketing concepts which are applied in the
functioning and operations of the organization. The marketing concepts are influenced by
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the current and future trends such that it is vital for the organization like Burberry to
effectively work on the trends (Jobber and Chadwick, 2012). The concepts have been
discussed below:
Figure 1 - Marketing Concepts
Source - Marin, 2017
Production Concept – The management of the organization focuses on enhancing the
efficiency of production and distribution. Burberry has worked on enhancing its production
process by considering the requirement of the market (Jobber and Chadwick, 2012).
Product Concept – The quality of the products is very important for the organization such
that the product concept assist in making suitable improvement in the quality of the
products so that the need of the consumers could be fulfilled (Jobber and Chadwick, 2012).
Selling Concept – The concept states that the consumers only purchase the products when
the organization have to carry selling and promotion at large level. Burberry has conducted
their marketing at a huge level which attracts the attention of the consumers (Jobber and
Chadwick, 2012).
Marketing Concept – It is a customer-centric approach where the organization conducts the
marketing by considering the requirements of the customers so that they could be provided
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with maximum satisfaction. The management of Burberry focuses on carrying attractive
marketing for targeting their consumers (Jobber and Chadwick, 2012).
Societal Marketing Concept – The marketing of organization is carried by focusing on
providing satisfaction to the customers and society welfare along with the profit to the
organization. Burberry understands their responsibility towards the society such that carries
responsible marketing which fulfils the requirement of consumers and business (Jobber and
Chadwick, 2012).
ROLE OF MARKETING
The market department of the organization plays a major role in its growth. There are
different operations which are carried by the marketing department. The effective
functioning of the marketing department is dependent on the potent structure. Burberry
has been working with a hierarchical structure such that the marketing department of the
organization also follows the structure (The Hartford, 2019). There are different entities in
the department which worked together with such as marketing manager, marketing
researcher, public relations, and designer and creative department. There are various
operations of the marketing department in Burberry such as:
 The department has been working effectively in the market to build a brand image of
the organization.
 Campaign management is carried by the department in order to fulfil the marketing
initiatives.
 The promotional and marketing content is developed by the marketing department
of the organization which promotes its products and services.
 The department focused on building internal communication so that high
productivity among the employees could be ensured.
 One of the key operations of the marketing department is to conduct customer and
market research in order to gain a competitive advantage.
In addition to this, there are various other operations which are carried by the marketing
department in order to assist Burberry in availing desired growth in the business. The
marketing department of the organization also focuses on different marketing processes in
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order to avail the desired benefits. There are four segments in which the marketing process
has been categorised such as strategic planning analysis, marketing-mix planning, marketing
implementation, and marketing control. The strategic planning analysis is carried by the
marketing department through segmentation, market niche, consumers, and positioning. It
helps in assessing the target market and segment which would assist in availing huge benefit
in the business. Further, the marketing-mix planning is also an important marketing process
which assists the organization in selecting a suitable strategy for the business so that
required goals could be accomplished. The marketing-mix is majorly focused on four areas
such as product, price, place, and promotion.
The market implementation is carried further by the marketing department in order to
implement a suitable strategy in the business. The implementation of strategies is carried
through the help of promotion mix as it provides an idea regarding the consumers and the
market. At last, it is essential for the marketing department that they carry market control in
order to practice their strategies effectively. There are four kinds of marketing control such
as annual-plan control, efficiency control, profitability control, and strategic control. These
stages in marketing processes play a major role in the effectiveness of the organization in
the market.
The marketing also plays a vital role in the B2C and B2B segment of the market which assists
the organization in gaining a significant advantage. It is evident that the marketing
department of Burberry has been conducting the marketing both B2B and B2C context
which assists the organization in gaining a competitive edge. B2B marketing is conducted in
order to promote the products and services to the businesses in order to demonstrate the
features of the products. The focus on this kind of marketing is major on the usage of the
product by the people not only on the product (Lake, 2019). It helps the buyer in attaining a
huge return on the investment. Burberry has maintained a significant image in the market
such that they have been offering quality fashion products in the market which attracts the
buyers. In contrast to this, the B2C marketing focused on the benefits which would be
offered by the products. The purchasing processes are shorter for the customers than the
businesses. Burberry carries attractive marketing in the market which attracts the customers
to purchase their products. Moreover, it could be stated that B2B and B2C marketing
possess significant importance in the success and growth of the organization.
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INTERRELATIONSHIPS OF FUNCTIONAL UNITS
Marketing plays a crucial role in the functioning and operations of the organization. In
addition, it could also be stated that marketing as a business function assists the
organization in achieving its business objectives effectively. In Burberry, marketing
possesses a significant role in the promotion of the organization. There are different
activities in which the marketing department of Burberry is involved such as promotion,
marketing, customer relationship, market research, etc. which provides a competitive edge
to the organization. The marketing function of the organization assists in carrying the
market research that helps in evaluating the requirement of the customers and further
assist the organization in conducting their business operations (Seidel, 2019). Burberry
carries its business operations by considering the market requirement which helps in their
growth. Furthermore, the marketing department also carries the risk assessment and
quality control regarding the products with other functions of the business in order to attain
substantial knowledge.
In addition to this, the marketing function of the organization works with other business
functions of the organization in order to attain the desired benefits in the business. The
major functional units with which the marketing works are human resource, finance,
customer relations, and sales. The details are discussed as followed:
Human resource – The department recruit potential candidate in the organization which
also works in the marketing function. It helps in conducting operational functions with high
efficiency.
Finance – The operations of the marketing department are carried through the budget
allocated by the finance department. In Burberry, the finance department assesses the
marketing activities and then provide the budget for the marketing functions.
Customer relations – The business attain growth when customer relations are effective in
nature. The marketing department assists the customer relation department regarding the
products and services of the organization which help in dealing with the customer
complaints and assisting them in retaining the customers.
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Sales – The marketing and sales department worked together to assist the organization in
achieving its goals in the market effectively. The insights regarding the market are shared by
the marketing department to the sales department which assists them in carrying effective
sales of the products and services.
The effective interrelationship between the different functions of the business results in
several benefits for Burberry in the business. The marketing works with other departments
of Burberry in a significant manner which assists the organization in achieving its goals and
objectives.
PART B
MARKETING MIX
The marketing mix is an application of potent marketing aspects and it is known as the
process through which the products are effectively placed in the market at an appropriate
place and time. Generally, there are 4P's of marketing but in recent time, there are 7P's of
marketing which is also known as service marketing. These 7P's are the product, price,
place, promotion, process, people, and physical evidence. The application of marketing mix
would be helpful for Burberry in gaining substantial understanding regarding their products
and services in the market. A comparative marketing mix of Burberry has been conducted
with Zara so that substantial insights could be attained. The detailed marketing mix analysis
has been carried as follows:
Figure 2 - Marketing Mix
Source - Hanlol, 2017
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Product – Burberry has been offering various products in the market such as beauty, men,
women, accessories, and kids. In addition, they also offer breathable fabric in the market
which is quite favourable among the consumers. Zara is a huge competitor to Burberry and
its product range is comprised of men, women, and children. They offer trousers, skirts, T-
shirts, bags, jeans, tops, knitwear, shoes, and accessories in the market. Zara has a
competitive edge over Burberry due to its sustainable business operations as they carry eco-
friendly practices.
Price – The pricing strategy which has been applied by Burberry is the premium pricing
strategy where the organization is working with a combination of low cost and high
premium products. In contrast to thus, Zara has been working with a strategy of low pricing.
The costing structure of the organization is low as compared to the competitors in the
business.
Place – The Burberry has been present in around 50 countries where they have been
carrying their operations through 475 stores. The stores have been located in the most
populated areas which provide significant revenue to the organization. The presence of Zara
is in 88 countries and they have been operating through around 6500 outlets. In addition,
they have been operating through online stores.
Promotion – Burberry has been conducting its promotion through different channels such
as TV, print ads, billboards, social media marketing, etc. In addition, there are various
celebrities who endorse the products of Burberry such that it could comprehend the
organization spend major money on marketing. Zara spends barely on the marketing and
advertising of their products. The major promotion of the organization is carried through
the word of mouth and social media.
People – The employees who are working at Burberry are qualified and professional in
nature. The working culture of the organization is effective and motivates the employees to
come with innovative ideas of working. Zara also possesses a potent workforce that comes
from diver background with significant skills.
Process – Both the organization gives a major focus on maintaining customer relationship
such that the employees are provided with suitable training so that they could meet the
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requirements of the customers effectively. The staff members at the outlets of Zara and
Burberry are also potent.
Physical Evidence – The physical evidence of Burberry could be determined through their
outlets, websites, PR activities, branding, etc. while the Zara has physical evidence in the
market through the outlets, social media platforms, websites, etc.
It could be evaluated through the marketing mix that Burberry lags behind Zara in different
aspects such that is important for them to work effectively and overcome their weaknesses.
The product and price are effective in nature but the place and promotion need to enhance.
In addition, the business practices should be eco-friendly and the staff members should be
provided with adequate training for better performance.
MARKETING PLANNING PROCESS AND MARKETING STRATEGY
The marketing planning process would be helpful for Burberry is attaining significant benefit
in the business. The market analysis helps in evaluating that the product range should be
enlarged by the organization along with their presence. In addition, the target market
should be improvised for better growth of the business. The organization should plan on
enhancing their business operations and structure in order to avail the desired benefits. The
management of the organization should implement a suitable strategy for gaining
effectiveness. Furthermore, it is vital for the management to control aspects like risks,
barriers in implementation, etc. for achieving the goals. There are some marketing
strategies which are proposed for Burberry to gain success in the market such as:
Market Penetration – The organization could introduce its existing products in the existing
market through attractive marketing.
Market Development – The existing products could be offered by the organization in the
new market for enhancing their consumer base.
Product Development – The new products could be offered by the organization in the
existing market for retaining the consumer and gaining effectiveness.
Diversification – The strategy proposes new products in the new market which assist the
organization in building a strong base in the market.
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CONCLUSION
The knowledge that has been availed through the report is helpful in understanding the
importance and principles of marketing in the context of business. In addition, it provides an
opportunity to understand the application of marketing in different aspects of the business
which assist the organization in availing their desired goals.
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