Burberry Group PLC: Marketing Mix, Plan & Strategic Analysis

This report provides an overview of Burberry's marketing essentials, including an analysis of its marketing mix and a detailed market plan. The report begins with an introduction to marketing and its importance, particularly for luxury brands like Burberry. It then delves into the marketing mix elements...Read More

Marketing essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
LO 1.................................................................................................................................................1
Covered in PPT.....................................................................................................................1
Part 2................................................................................................................................................1
LO 2.................................................................................................................................................1
P3) Marketing Mix.................................................................................................................1
M3) Evaluation of different tactics applied by these organisation.........................................5
LO 3.................................................................................................................................................5
P4 & M4) Market plan...........................................................................................................5
D2) Strategic marketing plan..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing is not only related with promotion or selling of a product instead it is a quite
broader concept that makes an organisation capable to look at all activities and operation of
whole business from point of view of customers (Arunachalam and Sharma, 2019). Therefore,
marketing lead to accomplishment of business objective through satisfying the needs and wants
of customers in an effective manner and also establish better communication and relation with
them. This assignment is based on marketing essentials of Burberry group plc which is a famous
luxury British fashion house having its headquarter in London, England and dealing in a range of
luxury accessories, clothing, cosmetics and perfumes. This assignment consists of a description
about use of elements of marketing mix to analysis its effectiveness in achieving business
objective together with a basic marketing plan.
Part 1
LO 1
Covered in PPT
Part 2
LO 2
P3) Marketing Mix
Overview of marketing planning process
It is a systematic approach used by Burberry to the achieve its marketing goals in an
effective manner. Various steps of marketing planning process in context of Burberry are as
follows:
Analysis- At this step efforts are made by marketing team of Burberry to evaluate various
marketing factors in order to develop better understanding about prevailing circumstances and
trends of market. Market analysis by Burberry includes better evaluation of current opportunities
and threats so that better planning can be done on the basis of market analysis (Bădin, 2018).
Planning- After analysis of marketing trends effective plans and strategies are made by
Burberry to grab existing opportunity and encounter possible threats in order to enhance its
viability and success. This stage of marketing planning process includes formation of better
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strategies and plans by Burberry to grab current opportunity and encounter possible threats so
that better success can be ensured.
Implementation- This step is associated with proper execution of strategies and plans in a
better and more effective way in order to achieve the desired level of performance and better
position in the business environment of Burberry.
Control- Proper control measures and monitoring tools are used by Burberry to keep a
check and control over its strategies so that timely change and modification can be made to
remain in balance with dynamic business environment.
Marketing mix is basically a strategic tool that facilitates a set of action and tactics that
are in control of organisation and lead to better promotion of product and create better brand
image for the organisation (Chhabra, 2020).A description about elements of marketing mix of
Burberry and its competitor Mulberry is provided where both operates in the luxury fashion
industry of UK (Marketing mix of Burberry , 2019). This comparison provides a better
understanding about how elements of marketing mix are used by these organisation to have
effective strategies and marketing planning to achieve the business objectives.
Elements of
Marketing mix
Burberry Mulberry
Product Burberry is having a range of high
end products that includes fashion
accessories, ready to wear clothes
(including all menswear, women-
wear and children wear),
perfumes, cosmetic items and is
famous for its trench coat for
affluent and more upper market
customers. But now to attract a
lager section of customers
Burberry has also launched some
less expensive collection of
product like Burberry Brit.
The core product of Mulberry
includes an extensive range of luxury
fashions bags, clothes and other
accessories for both men and women
(Corsi, 2020).
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Price Burberry is offering its product at
premium pricing strategy in order
to attract elite and upper rich class
people for its exclusive and luxury
products. But now to attract
younger section of society and
broaden its product range some
less expensive items are also
offered by Burberry like Burberry
Brit which lead to success and
profit growth (Fill, 2019).
Use of premium pricing together
with competitive pricing strategy is
made by Mulberry to attract elite
people together with better
competitive strength.
Place The functions of Burberry are
spread across more than 50
countries of world and having
more than 500 outlets and
showroom in UK and across
world. The showrooms of
Burberry are located at crowded
and high profile areas to attract
lager number of elite customers.
Beside this, use of third party
dealer and online website is also
made by Burberry to offer better
and comfortable experience to its
customers.
The operations of Mulberry are
spread across various locations of
UK only and have limited expansion
in world.
Promotions Being in a fashion industry, use of
aggressive promotional activity
become essential for Burberry.
Thus, the promotional technique
of Burberry includes use of digital
Use of moderate and traditional
approaches of promotion is made by
Mulberry that includes more use if
print media and advertising through
TV together with billboards and use
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and social media, together with
advertisements through magazines
and Billboard.
of social media (Haywood, 2019).
People Burberry is employing more than
9752 employees and providing a
healthy and positive atmosphere
to them through timely
interactivity and training program
that facilitates boost in their skills
and moral for better performance.
Beside this a comfortable
atmosphere is provided to
customers at showrooms with
polite and friendly staff.
The staff of Mulberry is highly
skilled and timely training and
development programmes are also
provided to maintain their
competencies level to ensure better
interaction with customers.
Process The process of Burberry includes
a effective distribution and
logistic process that keeps a
balance and coordination between
supply and demand at all stores
and locations of Burberry
(Kostelijk and Alsem, 2020).
Use of online website together with a
well coordinated distribution channel
ensure balance between demand
supply for Mulberry.
Physical evidence The most vital technique used by
Burberry to make its presence feel
in market is use of attractive
packing together with exclusive
and well structured showrooms
that attracts elite people to make a
visit. Beside this, use of various
promotional camping and
festively discounts are also made
The attractive outlets and use of
exclusive company symbol create
physical evidence for Mulberry.
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to create physical evidence in
market.
M3) Evaluation of different tactics applied by these organisation
On the basis of above marketing mix it can be concluded that Burberry is making use of
premium pricing strategy to attract elite people and also started offering some products at
affordable price to attract wider customers section where as Mulberry is making use of a mix of
premium and competitive pricing strategy that facilitates better competitive strength and larger
profitability through attracting rich people (Kreutzer and Vousoghi, 2020). Beside this, use of
aggressive promotional tool has lead to better promotion of Burberry across world and lead to
achievement of its objective of having better market share and customers base where as a
moderate approach of promotion is used by Mulberry to communicate with its customer across
the UK to attract them to have increase in its sale volume.
LO 3
P4 & M4) Market plan
It is basically a written document that contain information about various tactics, planning
and strategies that are used by an organisation in order to accomplish a project in an effective
manner with timely achievement of desired of objectives (Kuntonbutr, 2019). Following market
plan is prepared by Burberry in order to get better competitive strength through effective launch
of its new range of lather product that incudes luxury hand bags and purses for men and women.
Overview
Burberry is a famous British luxury fashion house that is providing a wide range of
products and fashion accessories to its customers, together with perfumes, sunglasses and other
cosmetic items. The headquarter of Burberry is situated in London, England and having more
than 500 outlets and showrooms across UK and around 50 countries of all over the world.
Fashion industry is considered as one of the most dynamic industry where coming up with new
exclusive products is essential to keep a balance with changing trends (Mankiw, 2020). For this
purpose and to effectively encounter the high level of competition prevailing in its business
market, Burberry has planned to come up with a new range of leather products that will include
exclusive hand bags and purses for both men and women.
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Innovation by Burberry- The new range of leather hand bags and purses launched by Burberry
will be waterproof and very stylish that is the new innovation created by Burberry. Thus,
creation of a stylish and exclusive range of bags and purses with 100% waterproof feature is the
new innovation and creation lead by Burberry to achieve its objective higher productivity and
profitability.
Vision
The long term vision of Burberry is, “ To set up an strong, exclusive and most superior
position across the world in the luxury fashion industry through continuously delivering
unique and most stylish product.”
Mission
The mission statement of Burberry is, “ To develop a business that remain relevant to
ever evolving and changing market and consumer taste to maintain integrity and vitality of its
brand.”
Objectives
The main objective and targets behind launching a new range of leather products by
Burberry is:
 To get better competitive strength in the market in order to enhance its sales revenue and
productivity by 15% in coming 9 months.
 To enhance its target market by 10% in next 1 year through attracting a larger section of
customers (Mwebesa and Maringe, 2020). To improve the overall productivity and profitability of organisation by 12% in the next 9
months.
STP model
Use of STP model is made by Burberry to properly and more clearly define its target
market together with effective planning and strategy formulation for better positioning and
targeting of product in order to earn to higher profits.
Segmentation- This process of STP is basically associated with bifurcation of market
into smaller chunks or groups so that an effective decision regarding the most suitable and
profitable group of market can be made. Burberry is making use of demographic segmentation
so that its market can be easily bifurcated and divided on the basis of age group and financial
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positions of individuals so that a selection of appropriate group can be made for its new range of
leather products (Proctor, 2020).
Targeting- It is basically a process of selecting most suitable chunk or group of
individual from the market on the basis of segmentation process so that more emphasis can be
given to desires and needs of that target market. Burberry is targeting of both men and women
for its new range of leather product but its more focus is on needs of youngster to appeal them
for buying. For its new leather bags and purses, Burberry is targeting both rich and upper middle
class individuals to attract wider section of customers.
Positioning- This process is mainly associated with creating better image and awareness
about new product through making use of effective promotional and communication techniques
in order to have a positive impact of product in minds of customers. Burberry has planned to
make use of digital media for its new product together with use of magazines and social media to
effectively promote its new range of leather products including bags and purses(Thanasi-Boçe,
2020).
Budget
Following estimated budget is lead by Burberry for its new range of leather products:
MARKETING BUDGET (£)
PARTICULARS Ist Year IInd Year IIIrd Year IVth Year Vth Year
Initial money 5000 8500 13000 15000 19000
Investment 8500 10500 15000 20000 21000
TOTAL 13500 19000 28000 35000 40000
MARKETING OUTLAY
Promotion 5646 2559 5693 2975 2111
Sales publicity 1365 1000 2452 1492 1050
Direct selling 2345 1900 4961 1300 4644
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TOTAL 9356 5459 13106 5767 7705
Controlling and Monitoring
It is a most important aspect of every project to have effective controlling and monitoring
policy to maintain and keep a check on its performance and efficiency. Burberry is also making
use of effective controlling measures like KPI (Key Performance Indicator) to ensure proper
monitoring on activity and performance of project so that timely steps and corrective action can
be taken to resolve theses flaws to ensure an effective and better achievements of desired level of
goals and targets(Watson, 2020).
Evaluation and monitoring of market plan
For this purpose use of various sales analysis, market share analysis and efficiency ratio
are made by Burberry. It has been evaluated that this business project of launching leather hands
bags and purses is successful for Burberry that has enhanced in sales revenue and productivity by
16% together with improvement in its overall productivity and profitability of Burberry by 12%.
Further use of efficiency ratio is also made by Burberry to measure its current performance and
success of new product launched. Use of efficiency ratio is made to measure ratio between
overhead as percentage of its revenue (Bădin, 2018). After evaluation of Burberry’s current
performance it has been evaluated that a decrease in its overheads are seen together with increase
in its total revenue thus, overall profit margin of Burberry also get increased with launch of its
new product that is depicting its success.
D2) Strategic marketing plan
With the use of 7 elements of marketing mix following strategic plan is prepared by
Burberry for its new range of leather product that includes a variety of hand bags and purses:
Product- Burberry is planning to deliver a new range of leather product that includes
stylish and exclusive hand bags and purses for both men and women.
Price- The expected range of price for new leather product portfolio of Burberry is
between £250-£400 .
Place- This product will be offered through online website of Burberry and through its
showrooms and authorized retailer .
Promotion- Use of aggressive promotional strategy will be made through featuring best
models and actress in its advertisement through digital and social media.
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People- For ensuring better quality of product manufacturing of product is done by
skilled and creative employees to maintain uniqueness in its product(Arunachalam and Sharma,
2019).
Process- For this new product automatic and highly integrated technology and machine
will be made.
Physical evidence- the goodwill of Burberry together with its positive image in fashion
industry will create better physical evidence for this new product.
CONCLUSION
On the basis of above report it can be concluded that use of elements of marketing mix
facilitates better set of strategies and tactics to effectively meet the objectives and desired targets
of organisation. Use of various tactics like promotion strategy, pricing strategy, etc. are made to
have better productivity and sales. Beside this, it can also be summarised that marketing plan is a
document that facilitates information about strategies made for effectively accomplish a project
or task.
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REFERENCES
Books and journal
Arunachalam, S. and Sharma, A., 2019. Marketing Analytics. In Essentials of Business Analytics
(pp. 623-658). Springer, Cham.
Bădin, A. L., 2018, May. New ways of interacting with culture consumers through cultural
services marketing using Big Data and IoT. In Proceedings of the International
Conference on Business Excellence. (Vol. 12, No. 1, pp. 93-102). Sciendo.
Chhabra, S., 2020. Mutual Fund: Marketing Mix and Promotional Strategies. In Foreign Direct
Investments: Concepts, Methodologies, Tools, and Applications (pp. 210-224). IGI
Global.
Corsi, J. R., 2020. Self-directed Iras: Investment, Marketing, And Trust Administration
Strategies. Routledge.
Fill, C., 2019. Marketing Communications: Touchpoints, Sharing and Disruption. Pearson UK.
Haywood, M., 2019. Brand essentials. Professional Beauty, (Mar/Apr 2019), p.78.
Kostelijk, E. and Alsem, K.J., 2020. Brand Positioning: Connecting Marketing Strategy and
Communications. Routledge.
Kreutzer, R. T. and Vousoghi, D. S., 2020. Voice-Marketing-Journey zur Implementierung des
Voice-Marketings in Unternehmen. In Voice-Marketing (pp. 61-67). Springer Gabler,
Wiesbaden.
Kuntonbutr, S., 2019. Book Review: Essentials of Marketing. RMUTT Global Business
Accounting and Finance Review. 2(1).
Mankiw, N. G., 2020. Essentials of economics. Cengage learning.
Mwebesa, C. and Maringe, F., 2020. 3 An integrative model for marketing higher education in
Africa. Strategic Marketing of Higher Education in Africa.
Proctor, T., 2020. Absolute Essentials of Strategic Marketing: A Research Overview.
Thanasi-Boçe, M., 2020. Enhancing students' entrepreneurial capacity through marketing
simulation games. Education+ Training.
Watson, J. H., 2020. Mastering Marketing: Leading A Journey Of Becoming. Accrue
Performance Marketing Inc..
Online:
Marketing mix of Burberry . 2019. [Online]. Available
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