Analyzing Burberry's Marketing Decisions with Situation Analysis

This report evaluates Burberry's marketing decisions through situation analysis, utilizing SWOT and PEST models to assess the company's internal strengths and weaknesses, as well as external opportunities and threats. The SWOT analysis identifies Burberry's iconic brand and high-quality goods as strengths, while premium pricing and limited product lines are noted as weaknesses. Opportunities include leveraging lifestyle changes and social media marketing, whereas threats encompass competition and product imitation. The PEST analysis examines political, economic, social, and technological factors affecting Burberry, such as Brexit, economic shifts, evolving social preferences, and the rise of online sales. The report concludes that situation analysis enables marketing managers to make informed decisions by understanding market dynamics and converting challenges into opportunities, ultimately enhancing the effectiveness of Burberry's marketing strategies.

Marketing Across Boundaries

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Evaluating selected model that how it is supporting marketing decisions of marketing
manager........................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing across boundaries helps organisation to understand and execute marketing
strategies within the organisation both at national and international level. When marketing is
done overseas then it will help company to get sales from outside country as well. Burberry is
the global company which is having stores across the world. They deals in clothing, accessories,
fragrances etc. they sell good quality and premium products. This report will discuss about how
the selected situation analysis model helps marketing manager in taking marketing decisions.
MAIN BODY
Evaluating selected model that how it is supporting marketing decisions of marketing manager.
Situation analysis:
Situation analysis consists of various methods which is helpful in order to understand the
external and internal environment of the company. This report will consists of theories or models
which are as follows:
swot analysis:
strength:
Burberry is the iconic brand and sells high quality of goods (Bhasin, H., 2019). Company is the
manufacturer of clothes, accessories and fragrances and continuously try to bring something
innovative in the market. In order to do marketing, company prefer fashion website and
magazines. As through this channel marketing manager can target those audience who are
interested in buying latest fashion items.
Weaknesses:
Burberry is following premium price range and because of that young generation are not able to
buy their products because they cannot afford it. It is observed that company is earning good
revenue from Asian countries. As in Asia they are able to sell more. But changes in their
customers preferences or changes in political or economic environment can affect company
sales. So that is why marketing manager should study properly that by using what marketing
channel they can attract more Asian customers. Company have limited product line and because
of this their customers are shifting to rival companies.
Opportunities:

Changes in lifestyle can be act as opportunity for the company because customer tastes and
prefers are affected with their lifestyle and education. So Burberry can launch premium products
in order to attract more customers. Social media marketing is also the opportunity for the
company. As through social media marketing team can target their customer base easily. Users
on social media platforms are also increasing rapidly. So with the help of social media company
can promote its product properly and can increase its sales (Smook and et.al., 2018).
Threats:
There are massive competition in the outside world. Many companies like Gucci or Prada is
giving tough competition to Burberry. Changing lifestyle of the customers is also the biggest
threat for the company. So marketing manager should study market trends properly in order to
fulfil their customer demands. Another threat which is often faced by fashion or lifestyle
companies is imitation of their products. Imitation of products can influence the brand equity and
hurts company's reputation.
SWOT analysis helps business to identify its position in the market. While doing
marketing practice swot analysis helps to take steps which can strengthen the business position.
By doing swot, marketing team will come to know about USP of company and also its
achievements. By identifying weakness marketing manager can easily find out that where they
are lacking and what steps should be taken to improve business operations. Swot also helps to
know opportunities which company can take from changing environment. Through swot
framework company can find out that what obstacles they are facing in the marketing, sales or
any other departments and what business practices company should employ so that they provide
same level of satisfaction to the customers like what their competitors are providing. So with the
help of this model marketing manager can evaluate changes in marketing environment and make
effective decisions to convert changes into opportunities.
Pest analysis:
political factors:
Burberry is the multinational company (Wei and Xie, 2020). So that is why they are operating
worldwide and that is why it is exposed to the political risks of various countries. As rules and
regulations of all countries are different. Brexit has affected company because it has imposed ban
on the free movement of workers from EU to UK.
Economic factors:

Middle class people gets affected when company increases their prices. So that is why is
company loses their customers because they gets shift to its rival companies. Customers who are
quality conscious often shifts to other brands who are providing good quality as compare to
Burberry. So company should keep an eye on its competitors in order to beat them.
Social factors:
Burberry earlier only have premium products and that can be afford by higher class people only.
So in order to expand and increase sales company also launched mid range products which can
be afford by middle class people. By doing this company has increased its sales and customer
base.
Technological factors:
Technology has become the biggest opportunity for the company to expand their business and to
also keep their business up to date. Company is also using social media platforms to improvise
its brand image and also to increase sales. Company is also focusing on online sales so that to get
more sales.
Pest framework is used by marketing manager to evaluate the micro environmental
factors which can influence the organisation. Pest factors will help marketing manager to find out
the opportunities for the business. Examples if there is any change in the government policy
which is favourable for the company then company can enter in new markets. By studying
society behaviour Burberry can come to know what society want and can come up new product
range in order to enhance efficiency of operations (Bose and et.al., 2019). Along with
opportunities pest also helps in evaluating threats. Decline in the market can affect business
operations. So by reviewing pestle model carefully marketing manager can take marketing
related decisions efficiently.
CONCLUSION
Through this report it can be concluded that situation analysis helps marketing manager to know
their strengths and weakness. They also provide information regarding opportunities which
marketing manager can take to increase the sales. It also gives information about political, social
and other factors so that marketing manager can make decisions accordingly.

REFERENCES
Book and Journal
Bose, I. and et.al., 2019. The “Fill the Nutrient Gap” analysis: an approach to strengthen
nutrition situation analysis and decision making towards multisectoral policies and
systems change. Maternal & child nutrition. 15(3). p.e12793.
Smook, B. and et.al., 2018. Substance abuse and the workplace: a situation analysis. Social
Work. 54(2). pp.194-209.
Wei, Y. and Xie, X., 2020. Current Situation Analysis and Benefit Analysis of Construction
Waste Reuse. International Core Journal of Engineering. 6(6). pp.76-80.
Online
Bhasin, H., 2019. SWOT analysis of Burberry – Burberry SWOT analysis. [Online]. Available
through: <https://www.marketing91.com/swot-analysis-of-burberry/>