Principles of Marketing Management: Burberry Marketing Audit Report

This report provides a comprehensive marketing audit of Burberry, a British luxury fashion house. It begins with an introduction to the importance of marketing principles and their application to Burberry. The main body of the report includes a detailed marketing audit, examining both macro and micro environmental factors, including PESTLE and SWOT analyses. It explores Burberry's competitive landscape, utilizing perceptual mapping and strategic group analysis to identify key competitors and their market positions. The report then outlines strategic priorities for Burberry's future, based on the findings of the audit. The analysis covers the company's operations in the UK market, its target audience, and its current market position. The report also discusses the impact of the COVID-19 pandemic on the company. The report concludes with recommendations for Burberry to enhance its marketing strategies and maintain its competitive advantage in the luxury fashion market.

Principles of
Marketing
Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing Audit.....................................................................................................................3
About Burberry.......................................................................................................................3
Macro analysis........................................................................................................................3
Micro analysis........................................................................................................................5
Competitive analysis..............................................................................................................7
Strategic priorities for the coming year................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
It is prominent to use the principles of marketing. It helps the company to attract the
customers and persuade them to make purchases from the company (Kasian and Korablova,
2017). It is vital to know about the effectiveness of these principles and use them for success of
the organisation. In the report there is discussion related to marketing of Burberry. It is a British
luxury fashion house that has its headquarters in London, England. The company deals in various
products such as accessories, clothing, cosmetics and perfumes PESTLE and SWOT analysis is
also done is the report as that will help to study about the influence of external and internal
factors. Competition is important to be studied and that helps to gain advantage over them. In the
end of the report strategies are formulated.
MAIN BODY
Marketing Audit
It is essential for a company to follow effective strategies of marketing. It is a process under
which there is review of marketing objectives, strategies and current activities that are used to
market the products and services (Shuba and Jassim, 2020). It helps to know the gaps and then
make strategies to follow that will help in improvement. It is important to do marketing audit of
an organisation as they are able to attain success by using the strategies. In this report there is
marketing audit plan for Burberry in the market of UK.
About Burberry
It is a multinational organisation that has its operations in around 421 locations. The
company was launched 165 years ago in 1856. The founder of the organisation is Thomas
Burberry. The headquarters of the company are in London, England. They sell ready to wear and
also trench coats that are one of the famous products of the company (Al Abdulrazak, and
Gbadamosi, 2017). There are number of products like footwear, cosmetics, accessories,
footwear, leather goods etc. The company has operations in 59 countries. There are 9,892
employees of the company. It is seen that currently Covid-19 pandemic is a problematic situation
for the company.

Macro analysis
It is one of the essential parts for forming strategies that are beneficial for the organisation. It
helps to understand the present situation and take actions. It is vital to have proper knowledge of
the external factors that have impact on the performance of the organisation. It is vital know
about all the factors that will help to enhance the performance of the company. It is seen that the
factors that are considered under macro analysis are political, social, technological, legal,
environmental and economic.
PESTLE Analysis
It is a framework that helps to analyse the impact of macro-economic factors. It is seen
that there are various factors and PESTLE Analysis in relation to Burberry is discussed below:
Political Factors: It is seen that there are various policies that are followed by business. It is
seen that in relation to Burberry the company has its headquarters in London. The political
conditions are stable and that helps the organisation to achieve success (Chawdhary, 2019). But
at the same time it is seen that the products of Burberry are high cost and that is the reason there
are various organisations that take competitive advantage.
Economic Factors: The economic condition of the nation of operation also has direct impact on
the performance of the business organisation. The economic factors include inflation rate,
interest rate, demand and supply, etc. The demand of company products was mostly due to the
visitors. So now due to fewer visitors the company is unable to enhance sales of the company.
Socio Cultural Factors: Social factors include choice and preference of the customer group in
relation to Burberry company target the people of good life style. It is seen that different people
prefer different products (Sun, 2017). So company focuses on their target customers and their
needs to provide them products that will satisfy their needs and wants. Is also seen that the
company uses social media platforms to gather the information related to customers that will
help to enhance customer experience.
Technological factors: It is seen that the company that uses updated technology is able to to
achieve success effectively. The technology keeps on changing on a rapid rate. In regard to
Burberry the component used is latest technology to advertise its products and services and this
helps them to reach more and more customers. It is seem that company uses online delivery
options that help them to gain advantage over the competitors.

Environmental factors: It is important for all the organisations to follow the norms that are in
benefit of the environment. In relation to Burberry the company produces its products in such a
manner that are not a hazardous to the environment.
Legal factors: It includes all the laws and legislation that are formulated and it applicable to the
organisation. In relation to Burberry the company follows all the legal laws in which the
company has operations. To get a favourable impact they also follow all the labour laws and
employment laws so that they are able to operate effectively.
So, it is analysed that Burberry should use latest technology to serve the customers
effectively and at the same time they should manufacture the goods and services in such a
manner that there is no negative impact on their environment. It is also important to follow the
policies and laws that are applicable to the country.
Micro analysis
It is equally important to study about the micro factors. It is vital for the company to know the
impact of these factors on the company’s operations. It is seen that there are various factors that
are micro but play a vital role in the organisation.
Company: It is seen that the company is operating effectively. But due to Covid 19 there is
negative impact on the performance of the organisation. The profitability position of Burberry is
Characteristic Net profit in million GBP
2020 121.6
2019 339.1
2018 293.6
2017 287.7
Customers: It is vital to note that customers are considered to be important stakeholder of the
organisation. The company has high class audience that they serve. The target audience are
generally men women that are between age group of 20 to 45 years. They try to fulfil the needs
and wants of customers in an effective manner.

Suppliers: There materials are supplied by the suppliers of the company. It is seen that it is vital
for the company to build good relations with suppliers as they are the one that help the company
to provide goods and services (Ortikmirzaevich, 2017). Ceramiche Refin spa is the main supplier
of the company. It is seen that they provide the goods on time and that helps the company to sell
the goods on time. It is seen that managing the supplier is vital for the company and helps in
achieving the goals and objectives of the customers.
Marketing Intermediaries: A channel of distribution is a collection of independent entities
participating in the production of a product or service available to consumers or businesses for
use or consumption. This is a very significant and vital part of the marketing mix, as well as the
fashion and clothing sector. In relation to Burberry Intermediaries are utilised to assist produce a
big supply of the goods in this model wholesale distribution channel.
It is important have proper knowledge and understanding about these internal factors. It is vital
to note that internal factors also contribute to success of the organisation.

Competitive analysis
It is important for an organisation to know about the competition that is present in the
market. To gain the competitive lead it is vital for the company to study about the competitors
and then formulate strategies that would help them (Sirajudeen and Janani, 2018). It is a fact that
the competition is in all the industries and all the companies has to face competition from some
or the other firm. Competitors of Burberry include Christian Dior, Calvin Klien, Gucci as well as
Ralph Lauren.
Perceptual mappings
A Perceptual Map is a diagrammatic approach used by marketers to visualise the perceptions
and views of potential customers regarding items, product lines, or brands. A perceptual map
may also be used to depict a company's competitive condition. It refers to a consumer's
understanding of competing items on the market and their features. Perceptual maps are also
known as placement maps in some sources. It is seen that Burberry has a strong position and is
high at the fashionable point of view and this shows the customers are attracted towards the
company. At the same time it is analysed that the company it expensive than the competitors.
The two important dimensions that are evaluated are quality and price. It is seen that Burberry

sells high quality products and at high price. A perceptual map can also indicate a customer's
desired emphasis area for a product.
Strategic Group Analysis
It is a method that is used to study about the competition in the industry. Strategic group
analysis means the study of group of businesses that belong to the same industry. It helps to
identify the direct competitors of the company. In relation to Burberry the competitors are Calvin
Klien, Gucci as well as Ralph Lauren. It is vital to note that all these business organisations lie in
the same industry. The customer differentiates the goods with the help of their quality. It is seen
that Burberry supplies the quality good and that are most fashionable and referred by the
customers (Gustavo, 2019). At the same time the problem that the companies facing is related to
pricing strategy as the company sells most expensive products in the industry. The company is
one of the good performers in the industry due to the quality of goods supplied by them and at
the same time maintaining the flow of fashion. They conduct a proper research of market and try
to satisfy the needs and wants of customers.
Competitors and their share
SWOT Analysis
SWOT analysis is a study of an organization's internal capabilities. It is beneficial to be aware of
the company's strengths as well as its weaknesses. If an organization can recognize its flaws, it
may strive to improve and modify them. Studying the opportunities and dangers that may occur
in the company's route is another essential component of SWOT analysis. The firm is capable of
planning for opportunities as well as being prepared for dangers and taking action in response to
them.
Strengths Weakness
 The company has attained good and  The company has policy of high pricing

effective brand value since so many
years of operations. It is seen that
company supply high quality products
to its customers.
 In 50 countries, there are more than 500
shops (Solimun and Fernandes, 2018).
Burberry's products are available to the
general public through both retail and
wholesale locations. This helps them to
operate effectively.
 Burberry clearly thinks that engaging
and responsive social media is critical
to become relevant to their target
demographic. The amount of fans and
followers they have earned
demonstrates the efficacy of their social
media marketing effort.
strategy. While cost shows consistency
and attractiveness, a high price range
has only made it affordable to a small
number of people. High-priced items
are out of reach for young people who
wish to live their ideal lifestyle.
 Burberry's product range comprises of
apparel, cosmetics, and makeup, all of
which are confined in the luxury and
design area, despite the fact that
numerous other companies have
expanded their product lines to include
Home Decor & Furniture, Personal
Grooming, and divisions (Sadeghloo,
2019).
 The company has various competitors.
It is difficult to gain advantage over the
competitors.
Opportunities Threats
 The saturation of established
economies, shifting preferences and
wants, as well as increased awareness
and changing habits in emerging
countries, there is a large demand for
luxury products and services.
 The growth of the product line would
offer up a new set of opportunities
while also allowing the company to
stand out from the competitors.
 Burberry has a lot of competition from
businesses with a global reach like
Versace, Gucci, and Prada (Lewicki,
2019). It is difficult to beat the
competition and gain advantage over
them.
 Imitation items are one of the most
serious issues that a luxury brand faces,
and they may have a long-term impact
on the brand's value.

Strategic priorities for the coming year
Formulating the strategies is one of the effective functioning of the company. It is vital to
note that the company should know about the strategies that will help in future (Lee, Chong and
Thadani, 2019). The strategies will be beneficial for the company and this will help them to
achieve goals and objectives successfully. The strategies that will help Burberry are as follows:
 The company should change pricing strategies they should focus on competitive pricing
that will help them to attract customers. It is seen that providing the goods at affordable
price will help them company to gain advantage over the competitors. As there are
various competitors that are present in UK.
 Along with that it is time of Covid-19 the profit of company is going down. So it at this
time the company should enhance the business operations through online mode. The
company should also spend on social media marketing. As that will be beneficial for the
company and will help to serve the customers.
 The company should conduct proper research related to the customer trends. No doubt
company sells goods that are fashionable but they should also know about the preference
and spending power of customers. This will help the company and will help to enhance
the sales of the organisation.

CONCLUSION
From the above report it is concluded that forming strategies is a important part of
company's success. In the present report there is this question related to marketing audit of
Burberry. In the starting of the report the position of the company is analysed. There is vital to
note that the micro and macro-economic factors impact the position of the company. In this
report there is discussion related to the PESTLE and SWOT analysis that helps to know the
factors that impact business. There is discussion related to competition of Burberry and strategies
that will help the company to attain success are also discussed in this report

REFERENCES
Books and Journals
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conceptual overview of consumer brand loyalty. Society and Business Review.
Chawdhary, R., 2019. Marketing for scientists. In Management for Scientists. Emerald
Publishing Limited.
Gustavo, N., 2019. Trends in Hospitality Marketing and Management: facing the 21st century
challenges. In Handbook of Research on Entrepreneurship and Marketing for Global
Reach in the Digital Economy (pp. 311-337). IGI Global.
Kasian, S. and Korablova, K., 2017. Principles of integration marketing communication activity
of the Ukraine exhibition companies. European Journal of Management Issues, 25(3-
4), pp.144-153.
Lee, Z.W., Chan, T.K., Chong, A.Y.L. and Thadani, D.R., 2019. Customer engagement through
omnichannel retailing: The effects of channel integration quality. Industrial Marketing
Management, 77, pp.90-101.
Lewicki, M., 2019. Managing E-marketing in Business. Managing Economic Innovations–
Methods and Instruments, p.6.
Ortikmirzaevich, T.B., 2017. Principles and functions of management of production
capacity. Journal of process management. New technologies, 5(4), pp.61-68.
Sadeghloo, T., 2019. Analysis of Factors Affecting the Appropriate Marketing of Saffron from
the Viewpoint of Saffron Growers in Gonabad County. Agricultural Economics and
Development, 26(104), pp.153-185.
Shuba, R.K.H. and Jassim, S.H., 2020. BALANCING CUSTOMER AND COMPETITOR IN
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IRAQI AIRWAYS. PalArch's Journal of Archaeology of Egypt/Egyptology, 17(3),
pp.2621-2648.
Sirajudeen, N.M. and Janani, V., 2018. A Study on Digital Marketing.
Solimun, S. and Fernandes, A.A.R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
Sun, F., 2017. Relationship versus transaction marketing in China: an institutional
approach. Business and Management Studies, 3(2), pp.47-60.