Marketing Essentials: Burberry Case Study - Unit 15

Desklib provides solved assignments and past papers to help students succeed.

UNIT 15
MARKETING ESSENTIALS
1

Table of Contents
INTRODUCTION......................................................................................................................................................................................................... 4
ACTIVITY A................................................................................................................................................................................................................. 5
INTRODUCTION..................................................................................................................................................................................................... 5
COMPANY OVERVIEW........................................................................................................................................................................................... 5
RESPONSIBILITY AND ROLE OF MARKETING WITH OTHER FUNCTIONS OF COMPANY.........................................................................................6
CONCLUSION....................................................................................................................................................................................................... 11
RECOMMENDATIONS.......................................................................................................................................................................................... 11
ACTIVITY B........................................................................................................................................................................................................... 12
7P's APPLICATION IN ACHIEVING BUSINESS OBJECTIVES.................................................................................................................................... 12
MARKETING PLAN OF BURBERRY........................................................................................................................................................................ 17
CONCLUSION........................................................................................................................................................................................................... 21
REFERENCES............................................................................................................................................................................................................ 22
2

3

INTRODUCTION
Marketing has been defined as an important asset in terms of defining an effective and modern business plan. The aim of conducting this
report is to evaluate the marketing strategies along with the marketing mix of an organization which contributes to overall profit generation
ability of an organization. An organization which has been focused on the entire report is named as the Burberry Organization. The brand
named as Burberry was founded in 1856 by Thomas Burberry in Basingstoke, England. The company deals with the way of providing the best
fashions and designer clothes for both men and women. The report aims to evaluate the marketing position of the Burberry in order to define
the suggestions and recommendations (Straker and Wrigley, 2016).
Burberry is classified as a reliable brand of today. It has been defined as a unique brand along with international opportunities. The buyers of
the company use the brand name as the sign of the values and reliability which brings huge honor for the company.
The aim of conducting this report is to analyze the components and factors of the Burberry which contributes to the development of the
effective marketing strategies leading to high-level profit generation (Khan and Jan 2019).
4

ACTIVITY A
INTRODUCTION
The responsibilities and roles defined over the marketing are defined as the combination of various duties and opportunities with the motive
of analyzing the potential ability of the products and services being provided by the organization. The components which contribute to the
process of effective decision making in an organization includes product development, market research, and analysis, sales and finance team,
etc. (Young, 2018)
COMPANY OVERVIEW
The reason behind the popularity of the brand is to protect, inspire, and explore the new and attractive set of products and services which are
found efficient for an organization. The three ethics defined above are the heart of the Burberry. The company was developed by Thomas
Burberry in 1856 at Basingstoke, England. At an initial stage, the company was started by opening the shop for the men's outfits. Later on by
the introduction of the material named as Gabardine, the development, and the reputation of the company was improved. The material
named as Gabardine was identified as the tearing resistance, and weatherproof. This new fabric was made suitable for designing the army
officer’s dress, raincoats and was defined as an important fabric of the British officer’s uniform (Young, 2018).
The company defined new innovations toward the raincoat designing by introducing functional elements like D-rings and straps which are
known as ‘Trench Coat'. Along with this, the company developed the distinctive patterns, red patterns known as the Burberry classic for the
military associations. On 1967, the Burberry check has been registered as the trademark and is widely used for the production of various items
such as luggage, umbrellas, scarves, and other products.
5

The company reinvented itself as the Digital Enterprise which serves to offer the luxury set of products. Along with this, Burberry also used
data analytics and artificial intelligence with loyalty programs and reward programs. This provided the way for the company to regain its brand
image and customer insights, which enhanced the brand with the customer engagements (Tank, 2015).
RESPONSIBILITY AND ROLE OF MARKETING WITH OTHER FUNCTIONS OF COMPANY
The British Luxury named as the Burberry developed distinctive craftsmanship, which was designed with the innovations defined at the place.
The company is headquartered in London. It serves to define then brand by designing, manufacturing, and selling the range of products which
includes ready to wear clothes, fragrances, sunglasses, and cosmetics.
The marketing functions of the company have been defined according to the way of satisfying the needs and requirements of the customer
demands (Grewal, 2018).
COMPONENTS OF MARKETING FUNCTIONS
The marketing functions serve to define the responsibilities and duties providing the potential within the company to develop effective and
attractive products in the way of satisfying the requirement and demands of the company. The marketing functions include strategies and
research methods which serve to promote innovative products as per the change in the demands of the people. By defining the operational
functions overall performance of an organization can be enhanced.
The marketing team of the Burberry provides a variety of product development which satisfies the needs of the customers. Burberry has a
diversified range of products offering all over the world. According to the latest report, it has been found that the company serves to provide a
6

variety of products differentiated in various categories such as accessories define 36% of the wholesalers and retailers. The product
manufacturing has been defined as 30% for women, 23% for men, 7% for beauty, and 4% for children (Grewal, 2018).
In terms of defining the accessories, the company produced huge good made up of leather for half of the revenue of mainline. In addition to
this, the company also produced leather products having iconic shapes. As a result of which men's accessories is increased by 20%. The
company provided the differentiated outfits for the women having a variety of outfits according to then summer and spring season. In terms of
defining the beauty products, the company launched Brit Rhythm fragrance for both men and women (Steenkamp, 2017).
MARKETING CONCEPTS
The marketing concept upon which the overall development of the company is based includes the five major components identified by the
marketing team of Burberry, which are defined as:
PRODUCTION CONCEPT
It focuses on the way of developing the product as per the demands of the customers. It includes the innovative set of skills and strategies
which serves helpful in maintaining the standard of the product. Burberry serves to provide varieties of products in terms of outfits and
accessories satisfying the diverse varieties of age groups.
SELLING CONCEPT
It focuses on the way of evaluating the maximum and minimum products being purchased by the customers. It defines over the way of
introducing a new and innovative set of strategies enhancing the marketing promotion.
7

Burberry also used data analytics and artificial intelligence with loyalty programs and reward programs. This provided the way for the company
to regain its brand image and customer insights, which enhanced the brand with the customer engagements (Steenkamp, 2017).
MARKETING CONCEPT
The marketing concept of the Burberry is based on the three ethics defined as inspiring, protect and reliable. It serves as the major factor in
attracting the maximum number of customers towards the development and production of then-new products.
SOCIETAL MARKETING CONCEPT
Burberry defines the techniques and strategies applied over the development of the product as per the varying choices of the people defined
from one country to another. It helps in providing stability over the brand image of the company (Sharma, 2018).
MARKETING MANAGEMENT
The process of planning and executing the techniques and strategies as per the demands and requirement is known as Marketing
Management.
The marketing roles in Burberry are:
Marketing Strategies: The new strategies have been defined by the manager, to satisfy the demands of the target customers. It defines an
increase in marketing opportunities. The differentiated targeting strategy is used by the Burberry Company and it targets the customer
belonging to the upper social class in the age group of 20-45 years.
8

Marketing information system: It defines the information related to the real-time logistics defined over the planning, control, and
implementation of the marketing strategies. Burberry serves to extend its business in other countries by using the third-party e-commerce site.
Marketing Environment Monitoring: It includes the analysis of the various factors such as legal, social, and political factors as per the
development of the new product.
Marketing Research: It includes the research being defined over the price and delivery of products as per the needs and requirement of the
customers (Marques, 2016).
Marketing Segmentation: It includes the way of evaluating the geographical, demographic, and psychological factors being defined as per the
effective delivery of products.
Burberry has been defined as an iconic brand having variables of offering for men, women, and children. It operates in the regions of America,
Europe, Asia-Pacific, and Middle East locations. The aim of the company is to encourage the heritage and creativity of British culture in various
parts of the world.
Brand Equity: The accessories and apparel British Brands has been ranked on 147 by the Forbes Magazine, in the list of the top multinational
performers. Burberry has organized and sponsored the events such as The Womenswear February Show 2016, The September Show 2017,
which helps in increasing the share of mind.
MARKETING FUNCTIONS
The major marketing functions which are served important for the progress of Burberry are:
9

RESEARCH: To promote the set of an innovative and attractive set of technology, research has been defined as an important factor. Burberry
uses the Burberry Bespoke, which enables the customers to customize the trench coat as per their choice. Burberry defined the Burberry
kisses to promote its beauty products. It uses snap chat to promote its collections and fragrances.
STRATEGY: It deals with the identification of the weakness and strengths defined as per the operational department. It helps in defining the
realistic outcomes and possibilities defined in the research.
PLANNING: The marketing department of Burberry includes financial planning, distribution, and other procedures. It helps in regulating the
development of the new product within the defined interval of time (Marques, 2016).
TACTICS: Burberry serves to achieve success by defining the small plans of marketing. It offers the range of offers over the defined products in
order to attract the major number of customers towards the products and services delivered by the company.
INTERRELARTION AMONG THE MARKETING FUNCTIONS
The connection between the financial and the marketing department has been determined that the marketing department includes the set of
the economic resources related to the planning, implementation and research evaluation which defines then marketing plan and strategies in
an organization defined by the financial department. The functions and roles of other departments are related to the financial department of
an organization (Nguyen, 2018).
In terms of evaluating then increase in sales of an organization, it serves necessary to include the policies defined by the HR department to be
linked with the marketing department of the company. In case when the marketing department is unaware of the policies defined by the
financial and HR department, the overall working of an organization will be affected in terms of the profit generation ability. Thus, it serves
10

necessary for the various departments of an organization to be interlinked with each other. This increases the overall development and profit
generation ability of an organization (Turban et al., 2015).
CONCLUSION
Burberry is classified as a reliable brand of today. It has been defined as a unique brand along with international opportunities. The buyers of
the company use the brand name as the sign of the values and reliability which brings huge honor for the company.
The aim of conducting this report is to analyse the components and factors of the Burberry which contributes to the development of the
effective marketing strategies leading to high-level profit generation (Jaber and Lundvall, 2016).
The report serves to provide the identification and evaluation of the duties and responsibilities which are defined over the marketing structure
of the Burberry. It has been analysed that the interrelationship between the various departments of an organization plays an important role in
defining the overall growth and stability of an organization (Pärlhem and Rutberg, 2018).
RECOMMENDATIONS
In order to achieve the growth and stability over the progress of an organization, it has been recommended that the accurate techniques and
procedures must be included over the implementation of an effective set of procedures and techniques (Earls, 2015).
11

ACTIVITY B
7P's APPLICATION IN ACHIEVING BUSINESS OBJECTIVES
With the aim of achieving the goals and objectives defined in an effective manner, the marketing mix plays a vital role in terms of defining the
marketing procedure of an organization. There are various ways which have been implemented in an organization to achieve the marketing
mix efficiently over the growth and development of an organization. It includes components such as the demographic factors, products, and
services being delivered by the organization. It helps in achieving stability over the growth and profit generation ability of an organization. The
marketing mix has been divided mainly into 4P's of marketing which can be subdivided into 7P's providing the detailed description and
information about the products being delivered. It includes components such as promotion, people, price, place, product, place and physical
evidence (Khan and Jan, 2019).
The company uses the differentiated target strategy, in which the products are delivered as per the demands and requirement of the target
customers which focuses over the people belonging to the age group of 20-45 years and children of age group 1-14 years. Burberry has 48
million subscribers online and has established its empire in more than 20 social networking sites such as Twitter, Facebook, Line, etc. The
personalized platform defined by the company helps in defining the strong relationship among the customers. The company has also reduced
the product option count to 15-20%, by focusing on the strong product line and innovation in design. The company has launched a customer
feedback program in order to effectively implement the suggestions provided by the company (Young, 2018).
The distribution strategy serves to generate 38% revenue towards the brands. The retail segment serves to generate 77% of revenue. The
brand operations of the company are divided into three regions defined as the Asia Pacific defining 39% of wholesale revenue, America
defining 25% of revenue and Europe, Middle East, Africa and India defining 36% of the revenue. Apart from this, the medium of digital
12