Burberry's Marketing Management: STP, Mix, and Relationship Marketing

This report provides a comprehensive analysis of Burberry's marketing management strategies. It begins with an introduction to marketing management, emphasizing the importance of meeting consumer needs and wants for brand growth. The report then focuses on Burberry, a British luxury fashion house, and examines its Segmentation, Targeting, and Positioning (STP) strategy, highlighting its demographic, psychographic, and geographic segmentation approaches, and its targeting of affluent consumers aged 18-65. The report also delves into Burberry's positioning strategy, which emphasizes cost and quality. Furthermore, the report analyzes Burberry's marketing mix, including product, price, place, and promotion strategies, detailing the company's premium pricing, exclusive store locations, and promotional activities. The report also discusses Burberry's relationship marketing strategy, its use of customer relationship management systems, public relations, and customer feedback to enhance customer engagement and loyalty. The report concludes with recommendations for optimizing Burberry's STP, marketing mix, and relationship marketing strategies to further enhance brand performance and customer engagement.

MARKETING
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1.1Segmentation, targeting and positioning................................................................................1
1.2Segmentation basis and targeting strategies...........................................................................2
1.3 Applying of positioning strategy...........................................................................................2
PART 2............................................................................................................................................3
2.1 Definition of marketing mix..................................................................................................3
2.2 4P’s strategies of selected organisation.................................................................................3
PART 3............................................................................................................................................4
3.1 Relationship marketing strategy............................................................................................4
3.2 Relationship marketing strategy of Burberry........................................................................4
PART 4............................................................................................................................................6
4 Recommendation based on above analysis...............................................................................6
4.1 Recommendation for STP......................................................................................................6
4.2 Recommendations for marketing mix...................................................................................6
4.3 Recommendations for relationship marketing.......................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing management can be defined as process of managing activities related to
promotion of goods and services. In this emphasis is laid on marketing techniques, operations
and methods used so that company can be able to grow. Marketing management in any company
assists organisation in making sure that marketing resources and activities are been managed
adequately. Main concept of marketing management is that needs and wants of consumers are
being fulfilled. This assists company in enhancing consumer satisfaction. Marketing is the
concept which is been used by companies in order to increase sales of their products. It assists
organisation in increasing their brand reputation and also by managing all these aspects firm will
also be able to grow. It has also been evaluated that the marketing department of company is also
been involved in doing marketing research. This assists organisation in growing and also
achieving goals and targets. Present report will lay emphasis on Burberry. Is a British luxury
fashion house headquartered in London, England. Company is being engaged in selling various
fashion accessories like leather goods, clothes, cosmetics, perfumes and many other aspects.
Company is being involved in making use of various marketing strategy so that they can be able
to grow and reach out high range of consumers. Main purpose of report is to Analyse their STP
strategy. It will also lay focus on marketing mix and 4 P’s of firm. Report will also cover the
relationship marketing strategy of company.
PART 1
1.1Segmentation, targeting and positioning
Segmentation: Market segmentation can be defined as the process in which market is been
divided into smaller or more defined categories. It is being separated in to various basis like
demographic, psychographic, geographic etc. Segmenting of market is really necessary as it can
assist organisation on focusing of group which has interests in their products and goods. It is also
easier to maintain the market when it is being segmented. Organisation can be engaged in
segmenting market on basis of gender, age, income, location, beliefs.
Targeting: In this the large market group is broken down in to smaller market. It helps company
in laying focus on specific consumers. It defines a segment of customers based on their unique
characteristics and focuses solely on serving them. It is really necessary for organisation that
they identify their target audience as it will assist them in increasing their profit and revenue.
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Positioning: It can be defined as ability to change the consumer preferences and perception. In
this where the company has positioned itself is analysed. They can make sure that better products
are provided with adequate prices so that consumers satisfaction and experiences can also be
increased.
1.2Segmentation basis and targeting strategies
Segmentation: Burberry has been involved in making use of demographic, psychographic and
geographic segmentation strategy. In this company has segment their consumers on basis of age
and income. It is being done as company is selling high prices fashion accessorise which can be
only affordable by rich. It has also been evaluated that Burberry is also being involved in
segmenting according to geographic location. They are serving around 20 and more countries.
Firm has also evaluated that fashion accessories supplied by them are according to needs and
demands of consumers. This has assisted them in growing and also because of this they are been
able to achieve target goals and objectives (Sousa and Alves, 2019).
Targeting: Burberry has also made use of targeting strategies. In this they have targeted
consumers between the age of 18-65. They target those consumers who have high taste in
fashion and also company is engaged in targeting consumers with higher disposable income.
They are only targeting consumers who want luxurious products. It has also been evaluated that
organisation is being engaged in targeting males, females and children. They are providing goods
and services according to needs and demands of consumers, so that they can be able to grow.
1.3 Applying of positioning strategy
Burberry is making use of cost and quality positioning strategy. It has been evaluated that
company is being involved in selling fashion accessories at high cost and also of high quality.
Only consumers who have high disposable income can purchase fashion accessories from
Burberry. It has been analysed that firm has increased their cost and also quality of services
which is been provided by them. Burberry is being involved in analysing the needs and demands
of premium consumers and then providing them with better quality fashion accessories. Burberry
has positioned their brand in minds of customers as functional luxury. They are trying to position
their brand on ultra-luxury section. It has also been analysed that company has kept their prices
quiet high and it cannot be affordable by every consumer. They are also engaged in providing
high quality of clothes and other accessories so that brand value can be increased and also this
can assist organisation in achieving their set target and mission. This can also assist firm in
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growing and also they have been able to expand their business in other areas. It has supported
company in positioning them better.
PART 2
2.1 Definition of marketing mix
Company makes use of various marketing tactics, so that they can expand their business and this
can also assist them in growing. It includes the following:
 Product: In this the goods and services which is been sold to consumers are been
defined. Products supplied by company can have various attributes and features that can
assist company in growing.
 Price: It explains about the pricing strategy adopted by organisation in order to increase
sale of their product. There is various type of pricing strategy which can be used by firm
like competitive pricing, penetrating pricing, cost plus pricing and many more. Company
make sure that goods are been sold at correct price.
 Place: It includes the various locations through which company is handling their
business. The location from which goods can be purchased is important for optimising.
 Promotion: Various methods of promotion are being used to increase sales of goods and
services. It has been evaluated that company can make use of digitalised channels to
promote their products. They can also be involved in making use of other advertisement
services so that sales of goods and services can be increased and objectives can be
achieved.
2.2 4P’s strategies of selected organisation
Burberry has made use of various marketing strategies so that they can be able to reach out
consumers. It includes the following:
Product: Company has been engaged in selling various fashion accessories. It includes leather
goods, bags, perfumes, clothes for males, females and children. It has been analysed that
Burberry is trying to sell high quality products at higher prices. It has also been evaluated that
they are been engaged in differentiating their fashion appliances with other competitors by
meeting needs and demands of consumers (Aka, Kehinde and Ogunnaike, 2016). This has
assisted Burberry in growing and also because of this they have been able to achieve set target. It
can be better explained through product life cycle theory. In this the product will go from
introduction stage, then growth, maturity and decline stage. It has also been evaluated that
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products of Burberry are at maturity stage. Company is trying to bring something new and
innovative in their goods every time.
Price: Burberry is being engaged in making use of premium pricing strategy. It has been
evaluated that company has set its price high as they only want to attract premium consumers.
This assisted them in gaining competitive advantage and also because of this they have been able
to grow. In this strategy company will set price high at will keep it there. This is because firm is
only targeting consumers with higher disposable income.
Place: Burberry has its stores in more than 20 countries. They have also made their interior
exquisite so that high range of premium consumers can be attracted. This assists them in
achieving their set target and objectives. It has also been evaluated that the company also have
online presence so that they can attract large range of consumers through it. This has assisted
firm in achieving set goals and mission.
Promotion: It has been analysed that Burberry is making use of different type of promotional
channels such as social media marketing. They are attracting consumers through online channels.
This has assisted them in enhancing their consumer base and also because of this firm has been
able to grow. Now they can also attract global consumers. They have also been engaged in
making use of celebrity endorsement. This has assisted them in gaining attention of customers
which is really necessary for growth of firm. This has supported firm in increasing their profit
and revenue.
PART 3
3.1 Relationship marketing strategy
Relationship marketing strategy is basically that method which is been used by companies
so that they can maintain an ongoing relationship with target audience. This strategy assists in
enhancing the engagement of consumers towards firm. It also assists company in achieving their
goals and objectives. Consumers get more engaged in firm because of this strategy. It also
supports in increasing customer retention (Brodie, 2017). It has also been analysed that in this
strong communication is made with customer so that loyalty can be increased. This marketing
strategy assist firm in growing.
3.2 Relationship marketing strategy of Burberry
Burberry is being involved in making use of relationship marketing strategy, so that they can
retain consumers. It has been analysed that for this company has invested in right customer
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relationship management system. In this software they keep data of consumers with them and it
assists organisation in providing products and services according to needs of customers. It has
supported firm in growing and also because of this they have been able to achieve their set target
and mission. It has also been evaluated that Burberry is making use of relationship marketing
strategy so that they can engage audience. Firm is making use of better public relation method. In
this to increase relationship firm is being involved in communicating with consumers and also
they are working on customer feedback. This has assisted company in increasing their profit as
well as revenue. It has also assisted company in growing and achieving their set goals and target.
It has also been analysed that by working on Feedback Burberry has also been able to overcome
their loopholes (Jia and Li, 2016). This has assisted them in achieving their set goals and targets.
It has helped in growing. It is also being evaluated that Burberry can also be engaged in doing
personal selling, so that more and more consumers can be involved in the products which is
being sold by them. It has also been evaluated that in order to enhance consumer’s engagement
in company, better customer relationship is being maintained by providing them with high
quality goods and services. This has assisted Burberry in achieving goals and target. It has also
been evaluated that for company to expand their business it is really necessary to maintain better
relationship with consumers.
This will assist them in creating brand loyalty and also it will help organisation to grow their
business. There are various strategies which is been used by luxury brand to enhance relationship
with their consumers. It includes email marketing. Firm tells about their goods and services to
customers with the help of email. This has assisted them in maintaining better relationship with
consumers. It has also assisted them in increasing brand loyalty and they are able to grow.
Burberry is also trying to enhance their relationship with social media marketing. This has
assisted them in knowing more about consumers and because of it they are been able to increase
their customer base. It has also assisted company in attracting large range of consumers. Firm
make sure that they also display the offers and discounts made to customers on social media
websites. This has supported them in growing and achieving goals and target. It has also been
evaluated that Burberry is maintaining their relationship with consumers by providing them with
high quality goods and services (Boateng, 2019). Consumers get more engaged in firm because
of this strategy. It also supports in increasing customer retention. It has also been evaluated that
for making their relationship better, company also communicates with consumers related to
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problems and issues faced by them in products and services. This has assisted them in increasing
interest of customers in organisation and also because of this they have been able to grow.
Consumer loyalty has been created by making Burberry through making use of this strategy.
This has assisted firm in growing and achieving their set target and mission.
PART 4
4 Recommendation based on above analysis
It is being suggested to company that they can also lower down price of their fashion
accessories as this will assist them in targeting customer with lower disposable income too. This
will assist them in being popular in that segment too. It is also being evaluated that Burberry can
also be engaged in doing personal selling, so that more and more consumers can be involved in
the products which is being sold by them. This will assist firm in achieving their set target and
mission and also because of this they will be able to grow. It will help in achieving mission.
4.1 Recommendation for STP
Burberry has made use of segmentation, targeting and positioning strategy. In this
company is been suggested that they must be also be involved in segmenting their consumers on
basis of income, they can also target customer with lower income. They can also diversify their
product and brand positioned themselves on medium cost and high quality of good and services.
This will assist the company in increasing their profit as well as revenue. It is also being
recommended to Burberry that they can also make use of strategy like product positioning. In
this they will only focus on attributes of product (Gummesson, 2017). This will also assist them
in increasing their business and it will help firm in growing and achieving their set target as well
as objectives. It is also being recommended to company that they must be engaged in making
better strategies related to segmentation and targeting as this will help them in grabbing attention
of large range of consumers and this will assist them in growing and achieving set target and
mission.
4.2 Recommendations for marketing mix
I t is being suggested to Burberry that firm needs to be involved in laying more emphasis
on attributes of their products. They must be engaged in providing creative and innovative
services to consumers so that firm can be able to attract large range of consumers and also it will
assist firm in creating brand loyalty. It is also being suggested to organisation that they must be
involved in making use of other promotional channels like digital marketing. This will assist
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them in increasing their consumer base and also they will be able to target consumers at global
level. It will assist Burberry in expanding their market share and also it will assist company in
increasing their profitability. It has also been suggested to company that they must be engaged in
making use of penetrating marketing strategy as it will assist firm in creating monopoly. This
will help them in increasing their consumer base which is really necessary in order to increase
productivity. It is also being suggested that Burberry can make use of email marketing so that
better relationship is being made by them to consumers. It will help in achieving objectives.
4.3 Recommendations for relationship marketing
It is being recommended to Burberry that they must be engaged in making better use of
relationship marketing. In this company can be involved in making use of text messages so that
better relationship is being created by them with consumers. This will assist Burberry in growing
and also by this they will be able to achieve their set target as well as objectives. It is also being
recommended that they can ask consumers to write down feedback on their websites. This will
support company in knowing about gaps in their services. It will assist them in retaining
consumers and growing. They will also be able to achieve objectives and grow. This will also
assist them in increasing their business and it will help firm in growing and achieving their set
target as well as objectives (Gummerus, von Koskull and Kowalkowski, 2017).
CONCLUSION
From the above study it has been summarised that marketing has assisted firm in enhancing
sale of their goods and services. It has assisted them in reaching out large range of consumers. It
has also been evaluated that product life cycle theory is also being discussed in report. It has also
been analysed from the research that company has made use of targeting, segmenting and
positioning strategy so that they can break target market into smaller segments. This has led and
assisted them in focusing on smaller number of consumers. It has also been evaluated that firm is
being engaged in selling fashion accessories. They have been engaged in selling leather bags,
perfumes and other items. It has also been evaluated that company has made use of premium
pricing strategy. This is because they are only targeting those consumers with higher disposable
income. It has also been analysed that organisation is making use of different type of
promotional channels such as social media marketing. They are attracting consumers through
online channels. Firm is being involved in analysing the needs and demands of premium
consumers and then providing them with better quality fashion accessories. It has also been
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analysed that company is making use of relational marketing. This has assisted them in building
up better relation with consumers. This has assisted them in increasing profit and also because of
this firm has been able to achieve their goals and objectives. It has also been evaluated that
company has positioned themselves on high cost.
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REFERENCES
Books and Journals
Gummerus, J., von Koskull, C. and Kowalkowski, C., 2017. Guest editorial: relationship
marketing–past, present and future. Journal of Services Marketing.
Brodie, R.J., 2017. Enhancing theory development in the domain of relationship marketing: How
to avoid the danger of getting stuck in the middle. Journal of Services Marketing.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and
beyond. Journal of services marketing.
Boateng, S.L., 2019. Online relationship marketing and customer loyalty: a signaling theory
perspective. International Journal of Bank Marketing.
Jia, S.S. and Li, F., 2016. A review on the formation and development of the relationship
marketing theory. International Journal of Business Research and Management, 7(4),
pp.53-62.
Sousa, B.M. and Alves, G.M., 2019. The role of relationship marketing in behavioural intentions
of medical tourism services and guest experiences. Journal of Hospitality and Tourism
Insights.
Aka, D., Kehinde, O. and Ogunnaike, O., 2016. Relationship marketing and customer
satisfaction: A conceptual perspective. Binus Business Review, 7(2), pp.185-190.
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