Burberry Marketing Management: Applying Key Marketing Models & Tools

This report provides a comprehensive analysis of Burberry's marketing management strategies, employing key tools and techniques to evaluate the company's approach to achieving its organizational objectives. It focuses on three primary analytical frameworks: SWOT analysis, marketing mix (4Ps), and the STP (Segmentation, Targeting, and Positioning) approach. The SWOT analysis identifies Burberry's internal strengths and weaknesses, as well as external opportunities and threats. The marketing mix examines the company's product, pricing, placement, and promotional strategies. The STP approach assesses Burberry's market segmentation, target customer identification, and product positioning. The report concludes with recommendations for Burberry to enhance its marketing strategies and maintain a competitive edge in the luxury fashion market.

Marketing
Consultancy
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Executive summary
The main objective of this report is to analyse about the marketing management which
consist of various tools and techniques in order to achieve organisational objectives. This report
is based on three tools these are SWOT analysis, marketing mix and STP approach. The
organisation taken in this is Burberry.
The first is SWOT analysis which helps organisation in analysing internal factor which
can affect business operation. Here is the discussion of internal factors which affects Burberry
organisation.
Next is Marketing mix which consist of four elements these are product, price, place and
promotion. These elements helps organisation in analysing their present product in a market and
attract customers towards their brand.
Last is STP approach which develops three approaches. These are segmentation,
targeting and positioning of a products of a brand. This develops target customers for their brand
and enhance their profits as well. Further, there is a recommendation made to Burberry that how
they cane improve their marketing strategies.
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Table of Contents
Executive summary .........................................................................................................................2
Introduction .....................................................................................................................................4
Task..................................................................................................................................................4
Environmental analysis tool.............................................................................................................4
SWOT analysis ......................................................................................................................4
STP strategy ....................................................................................................................................6
Marketing mix .................................................................................................................................7
Conclusion.......................................................................................................................................9
Recommendations ...........................................................................................................................9
References .....................................................................................................................................11
Books and journals ..............................................................................................................11
Online ..................................................................................................................................12
Appendix .......................................................................................................................................13
PESTLE analysis..................................................................................................................13
Porter's five forces model.....................................................................................................14
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Introduction
Marketing management refers to the process of controlling marketing feature by setting
organisational goals and objectives, organising all plans step by step and taking all the decisions
of firm and executing them for meeting customer needs and demands. It is regarded as a firm's
discipline that focus on the application of marketing tools, techniques and method inside an
enterprise (Wallace, Gehrig, and Nolan, 2021). It is most important for an organisation to
conduct overall analysis of market. Marketing management involves tools of competitive
advantage to analyse the industry in which an enterprise is operating. The selected organisation
within this report is Burberry. Company is one of the British luxury fashion house which was
founded in the year 1856. Company distributes clothes, footwear, eye-wear, cosmetics, leather
goods and accessories etc. It is serving more than 500 locations in all over the world. There are
about 9,900 employees working in an organisation currently (Burberry, 2021). This report
includes environmental analysis to identify opportunities and threats for organisation. It involves
STP approach and marketing mix of the chosen organisation. Further, it includes
recommendations of how the concerned company can improve their marketing strategies.
Task
Environmental analysis tool
Marketing management is the process to create, plan and implement strategies that helps
in achieving business objectives. These goals of business help in increasing awareness and
boosting profits and revenue of a business. Marketing management is more essential because it
help in engaging and reaching to large base of customers. This also understand what a customer
desires and what is being liked by them (Fatica, and Panzica, 2021). As Burberry is the biggest
fashion brand which mainly focus on their products. So that they could gain more competitive
advantage within a market. There are some of the models coming in environmental analysis
which are discussed below:
SWOT analysis
Strength : One of the strength of Burberry is that, it is one of the iconic fashion brand
which remains similar with British fashion. Company is one of the manufacturer of clothing,
accessories and fashion products which provides high quality and long lasting garments. Then
next strength, it focused on branding and creating brand retention. Many of the TV ads are
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promoting Burberry brand. Next, it is having strong global presence- as it is having more than
500 stores within 50 countries. Company is selling their products to end customers who are
having both retail and wholesale channels (Bhardwaj, 2021). Further, company is having unique
style, class and tradition in their product design, that is being liked by customers. Enterprise is
also handling social media profile to get more engage with customers.
Weaknesses : One of the weakness of Burberry is that it is having premium price
products, so that it could only be reachable to high class society people (Guo, Wang, and Guo,
2021). A young age people who are having less income cannot able to afford products offered by
Burberry. Then it is having limited product line- company is having products which only
consisting of Beauty products and other accessories that are being limited to luxury fashion
segment. Whereas other fashion brands also providing home furnishing and décor products to
customers. Next, it is in Asian markets- as its some of the sales comes from Asian markets
globally. So, if there is any change in customer taste and preferences and social and political
changes in Asia, this could impact Asian consumer's income and results in impacting profits and
revenue of business as well.
Opportunities : One of the opportunity which Burberry could gain is changing lifestyle-
by changing technologies and customer taste and preferences will be resulting in increasing
demand of premium company products and services ( SWOT analysis of Burberry – Burberry
SWOT analysis, 2021). Then developing emerging market is an opportunity- when company
enters into new markets like Thailand, Egypt and Turkey etc. So, they develop more
opportunities to succeed in developing markets. This helps them in increasing market share and
competing with competitors as well. Then increasing demand of premium products- now a days,
there is an increasing in premium products demands in developing nations which helps
organization in increasing their revenue as well.
Threats : Some of the threats of Burberry is that there is high competition. As many of
the other brand like Gucci, Prada etc. will be using these marketing strategies which Burberry is
using (Deiner, Yamanaka, and Bernatchez, 2021). Then next is changing customer taste and
preferences- as customer is continuously changing their lifestyle and fashion brand. So this can
become a threat for organisation.
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STP strategy
STP approach is used by organisation in order to identify their most valuable market
segments which helps in selling successfully with having targeted products (de Bogotá, 2021).
The STP approach stands for three steps. These are segmentation of market, targeting best
customers and positioning of offering provided by organisation. This model is most useful
because it helps in identifying the desired customers with their valuable needs and demands.
Further, it helps in development of products and messages of marketing that could suit
customers. STP consisting of three tools that helps in align of the products and services provided
by brand with their right and potential customers. This approach allows an organisation in
engaging better with every group member, individualize the message and selling more products
to the customers (Sion, and Nehmé, 2021). The model is used by Burberry also, which is
discussed below:
 Segmentation: Segmentation is used to divide customers according to the groups decided
by company. These groups are on the basis of characteristics and needs of an individual.
This provides an opportunity for organisation in order to gain competitive advantage
among competitors (Burberry SWOT Analysis, Competitors & USP, 2020). There are
various types of segments such as demographic, geographic, psycho-graphic and
behavioural. Company selects their customers according to these segments. Segmentation
approach divide buyers and purchaser into the groups who are having similar needs and
wants so that they could make best use of their resources and products. Burberry is one of
the biggest fashion brand (Gauri, Jindal, and Howerton, 2021). It is one of the elite
fashion brand for male and female which deals in premium segment. It focuses on those
people who appreciate smart and want to be a classic style. They are operating in
geographic segment like America. Asia pacific and Europe etc. further, by suing this
segmentation approach, company can target their audience on the basis of similar
products requirements. It may also resulting in increasing market efficiency by making
segments of different characteristics.
 Targeting: This is the another step of STP approach. In this, organisation decide their
targets of people to whom they should have to sell their products. Company founds most
attractive ones who are taking interest in their products (Ganassali, and Matysiewicz,
2021). In this customer size and growth is analysed according to each group. In context
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with Burberry, they target middle age people who are from upper class society. Company
is targeting men and women who consist of upper class. Further, they are also targeting
the age group of 20-45 years old people who are having demands of having high rate
clothing brand, cosmetics and other related accessories etc. Further, while making sue of
targeting, company is targeting their potential groups and which results in reducing their
risk within new market or in the existing market (Rogel del Hoyo, 2021). So this helps
Burberry in targeting their customers according to the age groups and assure their profits
level.
 Positioning: This is the last step, which identify how an organisation wants to position
their products to attract targets customers towards the brand. In this company identifies
why customers purchase their products rather than those of competitor's products. This is
made to understand each segments that is related with company products. This helps in
determining how best company can offer their products in market. In relation with
Burberry, they have position their brand with wealthy heritage of British civilization
(NICOLESCU, DIACONESCU and NICOLAE, 2021). Burberry is showcasing quality
and style of their products which is done by craftsmanship with form and function. In
addition, positioning results in increasing customer satisfaction and build loyalty among
customers. Burberry is making their position of products to attract customers and
building customer loyalty as well.
Marketing mix
Marketing mix is a framework which is used by organisation in analysing marketing
strategy. It involves 4 Ps. These are product, price, promotion, place which helps in planning,
innovating and pricing of a products and service which company is offering (Tzavella, 2021).
This helps organisation in positioning their product in market and among competitors.
Product: Burberry is one of the fashion brand of British. It deals in some of the core
products such as clothes, sunglasses, perfumes, cosmetics and beauty etc. Some of the
accessories like scarfs are growing market for them. Further, they have introduced gabardine
which is a breathable fabric (López-Jauregui, 2021). Some of the fragrance like Burberry
weekend, Burberry touch, Burberry Brit etc. are provided by company to gain customer
attention. In addition, company involves products like Burberry golf, children wear and
cosmetics (Marketing mix of Burberry – Burberry marketing mix, 2021). As company's 20%
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sales is dependent on menswear and majority is going with women wears. Further, company is
manufacturing their products at Burberry factory while keeping in mind latest fashion style.
Every product is having their own story of being prepared within factory. Also, it is known for
international market because it is having durability, high quality and unique designs.
Price: As company is producing luxurious products with having latest innovative designs
(Mistry, 2021). This is because, their target market is high class elite zone who can spend more.
What matter is quality of products which cannot be compromised. Its pricing policy is depending
on various factors. Since, it is having global presence, so they have high pricing strategy.
Company is more spending on research and development department, production and paradigm
so that to make best wearing apparel for their buyers. It is one of the most expensive retailers
within world who know how their prices matters (Stahl, Stein, and Flath, 2021). This is a pricing
strategy which company is focusing. Company is having annual revenue of more than $2 billion.
Place: Company is located in 500 locations in all over the world. Products are being sold
to global franchises through third party dealer. Company is effectively using latest technologies
and brand assets in order to attract customers. The location of company is very prominent,
influential so that it could be easily reachable to the customers. Company products are located at
many premium stores (Philp, Dolega, and Green, 2021). They are having own official websites
through which they sell products and services. Further, Burberry stores operates on luxury stores
who are consisting of high class customers. Also, they are providing luxuries facilities and high
class customer services. In addition, they have shifted towards e- commerce mediums at a time
of Covid- 19 pandemic that provides online facilities to customers. They are selling through
digital channels.
Promotions: Burberry is focusing on their promotional strategies so that they could
enhance large number of customer base (Boykoff, Chandler, and Osnes, 2021). They select high
class magazines to place ads on them. Also launching on visual media platforms to highlight
their products. Further, they have made a campaign called “Romeo Beckham”. This campaign is
being promoted by British models such as Edie Campbell, Charlotte Wiggins and Max Wendell
(Marketing mix of Burberry – Burberry marketing mix, 2021). Further, company is using both
traditional and modern methods such as advertisement media, newspapers and outdoor
advertising. However, Burberry is more focusing on promoting through digital channels and also
coming up with regular new campaigns as well. Also, for promotion, Burberry is presenting
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more offering to their targets and potential customers. These helps them in attracting more
customer towards their brand.
Conclusion
From the above, it can be concluded that marketing management tools and techniques
helps the organisation in analysing their internal and external environment and gaining
competitive advantage among competitors. In this above report, some of the factors like political
factors and economical factor can create threats for the organisation. Further, Burberry can gain
competitive advantage by working on their weakness and converting them into strength. Also,
they are having various competitors like Gucci, Channel and Prada are working effectively to
attract customers. Then target market for company is men and women of having high upper
class income which helps organisation in gaining more profits. These helps them in making
better promotion and working on their pricing strategies as well. This develops opportunity to
attract more customers towards brand. In addition, it could be concluded that company is using
effective marketing strategies but they should more focus on developing more opportunities
through various channels such as online or digital channels. In addition, company should work
effectively towards achievement of organisational goals and objectives. By using effective
marketing strategies, company should be able to achieve its objectives and resulting in providing
benefits to the customer and even gain customer satisfaction. By earning customer satisfaction,
company can be able to increase their profits level gain competitive advantage among
competitors as well.
Recommendations
From the above, it can be recommended that marketing strategies are now a days very
important. As every organisation should have to focus on their marketing strategy which helps in
gaining competitive advantage within their competitors. In relation with Burberry, they have
analysed internal and external environment of business which helps them in creating effective
marketing strategy and analyse a target market. From the above swot analysis, company is
having certain strength which creates opportunity for them while expanding or introduction of
new product development. On the other hand, some of the weaknesses like high pricing of
products can become a threat for them. Then some of the factors like political and social factors
can become a threats. So for this, they should have to follow all rules and regulation made by
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government of every country such as Employment and labour law. Also, it is recommended that
Burberry should also target middle class people so that they could be able to reach company
products. By providing quality of products, company can attract more customer and they could
even position their products in targeted market. Further, promotions of a company should be
done through digitally, or by having some other campaigns which helps in attracting more
customers towards brand. Also they could take feedbacks from customers so that they could
make improvements in their products and services. In addition, Burberry should be able to
conducts various promotion techniques such as they should promote their products through
digital channels and media which helps them in attracting more customers. This helps in gaining
more customer satisfaction and loyalty. This helps in developing brand awareness among
customers and developing profits and revenue. If company wants to expand in any new market
then they should more focus on their quality so that customers could be attracted towards that.
On the above SWOT analysis, it is recommended that currently company is one of the
manufacture of clothes which is having high quality of products and services, but on the other
hand, they are having certain weakness which they have to focus upon. Company is having
strong global presence which develops its awareness among various countries and builds
valuable reputation. However, company should focus on their pricing strategy, so that their
products could be meet by middle class people also. This will helps them in attracting customers
and creating large customer base. Some of the other weakness like company is having limited
product line, so they have to work in variety of products which could attract more customers and
gain customers satisfaction as well. In addition, Burberry is segmenting their customers
according to different locations, taste and preferences. They make group of each of the potential
customers which will helps them in targeting more customers and builds efficiency as well. It is
recommended to the company that they should develop effective campaigns in order to develops
awareness among people and target them accordingly. They should start taking feedbacks after
purchases. They should take online reviews and rating from customers which helps them in
getting true outcomes and developing customer loyalty. By getting this, organisation can be able
to make improvements in their products and services provided to customers and builds loyalty.
They should also provide customer loyalty cards and discounts on occasions which results in
attracting customers and increasing profits and revenues as well.
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