Strategic Brand Management in Global Context: A Comparative Report

This report provides a detailed analysis of the strategic brand management approaches of Burberry and Marks & Spencer (M&S) in a global context. It begins with an introduction to the importance of branding and its role in competitive markets, followed by an identification of the two companie...Read More

Strategic Brand Management
in a Global Context

Table of Contents
INTRODUCTION......................................................................................................................4
TASK A......................................................................................................................................4
Task b.........................................................................................................................................8
Task c.......................................................................................................................................12
Conclusion................................................................................................................................13
references..................................................................................................................................14

Illustration Index
Illustration 1: Channel mix.........................................................................................................5
Illustration 2: Regional mix........................................................................................................5
Illustration 3: Product mix..........................................................................................................6
Illustration 4: Business model of M&S......................................................................................7
Illustration 5: DRIP Framework.................................................................................................9

INTRODUCTION
Branding plays a vital role in the marketing of any business, whether large, medium
or B2B or retail. It creates a major edge to survive in competitive market. Branding
management helps an organisation to stand out from other competitive rivalries. There are
many successful brands like Marks & Spencer, Burberry etc. The present report discuss about
the competitive nature of two markets and various brand strategies adopted by them. It will
also brief about the brand equity and brand positioning. Moreover, this report also provide a
complete understanding of marketing activities to build brand equity with the context of
Burberry and M&S.
TASK A
Identification of two companies
Burberry Group PLC is well-known UK based luxury fashion house, which is
headquartered in London. It is also renowned for its excellent products and services. The
Burberry's fashion house is popular for its various fashion accessories, ready made outer-
wears, sunglasses, cosmetics and fragrances. It consists of various branded apparels and
accessories of different categories including men and women. The fabrics for cloths and other
materials are purchased from well-known suppliers, then products are manufactured and
supplied across the world. It developed marketing and creative content to engage and connect
its branded products and brand with customers (Kapferer, 2012). The company is operating in
around 497 regions globally via its stores and through online site Burberry.com as well as
through many offline mediums.
Burberry has four key themes that underpins its strategic agenda and helps in to
connect its various global activities. These key components are: Brand First; Famous for
product; Customer-centric and Productive and responsible. The first key theme, Brand First
states that Burberry's business is carry out by its brand name, there are several decisions
taken for its long-term interests to maintain its brand image. Famous for Product depicts that
Burberry is committed to deliver quality, distinctive and authentic products. There should be
innovations in its cloths and other fashion accessories while manufacturing and designing.
The company has belief to focus on its customers, it aimed to engage with customers through
both online and offline mediums. It also emphasize on the efficient ways to increase the
productivity of the business.

Burberry is continuously increasing its sales revenues by 2014/15, in retail sector it
accounted around 71% of revenue and 26% in wholesale of goods and services.
It also licensing its agreements globally, leveraging many of its license partners. It is
estimated in 2014/15 that Burberry operates in main three regions; Asia Pacific where it
acquired 38% of retail revenue, Europe, Middle East, India and Africa (EMEIA) represented
35% revenues and 27% of sales revenues are acquired in America. The overall growth and
retail/wholesale revenue of company is presented by underlying figure.
Illustration 1: Channel mix
(Source: Burberry Annual Report 2014)

Burberry has diverse range of products like, fashion accessories, apparels and beauty
products. In 2014-15, 36% of retail and wholesale sales revenues are shared by fashion
accessories, 30% revenue on women apparels and clothings, about 23% on men products, 3%
on children and 8% of sales revenue is gained from beauty products. All sales revenues are
shown by following pie-chart:
Illustration 2: Regional mix
(Sources: Burberry Annual Report 2014)

Marks & Spencer is UK-based multinational retailer, founded in 1884 and
headquartered in London, England. The company is listed in London Stock Exchange and
part of FTSE 100 Index. It is well-known retailer which has expanded its business across the
globe. It is specialised in distributing of luxury food products, home appliances and clothings.
M&S have more than 1,330 stores and retail outlets worldwide including many international
stores in India, Russia, France, Hungary, Egypt etc. By 2015, its overall sales revenue was
£10.300 billion and there are more than 83,069 employees are associated with this
multinational retail chain. Moreover, its overall turnover is also split into Food items (57%)
and on General Merchandise (43%). The main of the company in to deliver sustainable
values of products and services to its customers, shareholders and other organisations by
Illustration 3: Product mix
(Sources: Burberry Annual Report 2014)

rendering high quality of clothing, food and other home products through stores in
supermarkets as well as via online website, marksandspencer.com. There are more than 7
million users are registered through its site. Moreover, it has fastest growing market in food
operations, as it is committed to bring-forth innovative and delicious food products.
M&S has developed a business plan named, Plan A that directs the company to
provide leadership qualities to attain success and lead the food industries. It is an ethical and
environmental programme which governs the company to reduce the waste of resources and
helps it to properly allocate them. The business model of M&S is shown below which shows
its values, target audience, main products and services and contribution of its stakeholders in
business operation. It has also variety of products like, Food products, home products,
banking services and electric power supply etc. It is well-known for availability of varied
range of food products. So, it is focusing to increase its Food business across the world in
order to stand-alone in the competitive market.
Illustration 4: Business model of M&S
(Sources: Marks and Spencer Annual Report 2014)

Main competitors of M&S are Next Plc and Primark, there is huge competition in
between these multinational retailers in terms of Food products and other home appliances.
Hermes International and Kering are two strong competitors of Burberry, so it is required for
the company to develop various business strategies and tactics in order to survive in
competitive market. Moreover, M&S and Burberry both are highly competing each other.
M&S loosing its fashion market, it need to develop more creative and stylish apparels and
other fashion accessories in order to lead the fashion industry.
TASK B
Analysing Branding strategies of two organisations
M&S developed three year branding strategies which help it to thrive in competitive
multi-channel world. Quality and style are two main attributes that make this multinational
retailer unique (Dinnie, 2015). Its aimed to showcase its brand of style and quality of
products. It is expanding its trading online every time with new concept. All over the globe,
its fashion sub-branded products are available in every store. It is conducting 'Leading Ladies'
campaigns to feature 10 international flagships stores to attract customers, there are many
dynamic models and celebrities who represent stylish apparels and accessories as brand
ambassadors (Beard, 2008). It also adopted various social media tools like, Facebook and
twitter. Recently, it launched a game Pass the Parcel on Facebook in which about 1.7 million
customers participated and pass the virtual parcels through their mobiles. It also broadcast the
news of Valentine's Day offers on food, flowers and lingeries via social media. M&S is also
in a partnership with leading fashion magazine, Vogue and GQ. where it featured its branded
products.
Burberry always look forward to embrace its innovative and authentic products which
embodied its brand. There are certain ways by which Burberry contact with customers
globally, it can be either through runway shows, campaign talent or music, marketing
innovations and using digital mediums to intensify customer experiences and perception
about the brand (Philip, 2016). Burberry organise various runway shows in London, four
times in year in order to connect with audiences more closer. By having YouTube
functionality in S/S15 Womenswear show enabled audiences to take a look of interlinking
videos. Burberry also engaged with twitter to let the customers to capture the pictures of
famous runway shows from anywhere. Moreover, it is also involved with LINE, in order to
allow Japanese users to watch Burberry's Womenswear show (Mullins, Walker and Boyd Jr,
2012). Many of its runway shows are available on iTunes, so that people can easily

download. Burberry also opened several stores in flagship markets which are accompanied by
social media campaigns and city-wide events. The company also launched its brand product
on more than 400 magazine covers worldwide. Moreover, it is listed as 'Top 100 Global
Brands' in many magazines for every consecutive sixth year.
Branding model
Organisations use various marketing strategies and branding models to differentiate
their brand from other competitors. DRIP framework is most popular method which is
discovered for the purpose of assisting brand differentiation (Clifton, 2009). DRIP is an
acronym for Differentiate, Reinforce, Inform and Persuade. It consisting of four stages which
determines the various digital communications strategies that can help the company to
differentiate their brand from other competitive rivalries. It will also guide the company to
positioned its brand in the competitive market. The first step state about the brand position in
the market place, point out the area of focuses and differences from other competitors.
Reinforcing a brand message is second step which identify the points of differences and
provide the ways by which a company can make avail its brand to communicate with
customers. After that, it is required for the organisations to make use of various digital
communication mediums in order to inform customers and shareholders. The last step
Illustration 5: DRIP Framework
Sources: Kapferer, 2012

determines the ways by which a company persuade audiences and engage with them by
rendering new products and services.
M&S is more focused on its food businesses, as it is provides varied range of food
items which are innovative and delicious enough. It is also relaunching its clothing industry
with large range of stylish cloths that are rich in quality (Campbell and Rahman, 2010). The
Chief Executive of Organisation, Marc Bolland said that his entire team is also opening new
upgraded stores and launching new websites in order to expand its business in international
market. The brand message of M&S is to provide quality and stylish products in the range of
clothings (Roper and Fill, 2012). It is focused on the principle of quality, trust, innovations,
values and services in order to influence customers and improve its position in competitive
retail industry. M&S is reaching to customers by establishing vibrant and refurbishment
programmes in stores. Its online site, M&S.com is very flexible and convenient for
customers, as billions of customers are pulled in for shopping purpose bat anytime and
anywhere. It also participated in London Fashion Week in the year 2014, by representing
Winter Womenswear collection. M&S encourage people to get involve with its services. It is
involved in many fundraising activities and charitable trusts that raise the interest of
employees and customers by £4.2m. Due to this, many people are encouraged to get engaged
with its new range of products and services. M&S foods are always come with innovative
new dishes. It is estimated that around 800,000 couples enjoyed its Valentine's Day menu. Its
overall food revenue is about £5.1bn which is increasing by 4.2% yearly, it also acquire 3.9%
of market share in food industry.
Burberry is a global luxury brand which built its reputations in the field of innovation,
design and craftsmanship (Polonsky and Jevons, 2009). It outwears are core of its business. It
is committed to bring creativity and innovation in its ready-to-wear outwears. It is also aimed
to bring authentic and diversified range of fashion accessories and clothings. It has variety of
Heritage scarves and ponchos which are inspired from runway shows, also its famous
Heritage trench coats are driving its growth. It has differentiated range of products for all age
groups including men, women and kids (Kondratov, Kondratov and Sergey, 2015).
Burberry's reinforced brand message is to contact with consumers with equivalent authentic
brand voice, wherever they reach to the brand. It also reinforced the company's over-clothes
leadership while raising the potential of its brand in order to differentiate from other apparels
and accessories. The company is continuously focusing on underdeveloped categories of
products, in order to maximize the opportunities (Hatch and Rubin, 2006). Burberry is

leading in various kinds of outer-wears like scarves and Heritage trench coats with strong
demand of customers. There are many mediums through which Burberry is reaching to its
customers. The company is investing large sum of amount in digital commerce, online
websites and in-stores innovations to create a better scenario, so that customers can
experience its excellent services and products. Burberry.com is rendering its services in more
than 44 countries in 11 different languages. It also enhanced its mobile app to avail better
experience to customers. Moreover, around 200 collect-in stores are available in 24 countries
including Japan and China which is increasing its revenue by 20%. Burberry is continued to
invest in core luxury products and customer insights to increase its productivity and drive
improved customer services. Recently, it evolved its store portfolio in China, even in
Shanghai it conduct brand engagement programmes named 'Dreams of London'. Burberry
also launched many festive campaigns like 'From London with Love' in China and on its site
too. Burberry continue to unlock its market opportunities by engaging with Japanese
customers (Hatch, and Rubin, 2006). The main core strategy of Burberry is to grow its
business in competitive market by delivering varied range of quality and stylish fashion
accessories, sunglasses, apparels and outer-wears. Its Cashmere scarf and Heritage trench
coat is globally recognised iconic product with continuous innovations in its manufacturing
and designing.
Brand positioning and equity
Brand equity depicts the value the brand image of company in the marketplace. Brand
positioning is used to differentiate a company's brand, products and services with other
competitive rivalries (Truong, McColl and Kitchen, 2009). Every organisation is required to
build and maintain its brand image in order to increase its productivity. Burberry is aimed to
develop differentiated fashion accessories and outer-wears for its target audience (Simmons,
2007). Market segmentation is key component of Burberry in order to positioned its brand. It
is offering high quality products like, apparels, sunglasses and accessories at all range of
prices due to which market is highly segmented within customers. According to demands,
choices and preferences of people, it designed and manufactured its outerwear cloths and
other accessories. Its product mix consists of diversified products range, like apparels, beauty
products and accessories among men, women and children across three regions of world.
M&S has differentiated range of products, it has food business which have 6,400
variety of food products and supplied in more than 1,253 stores. It is also involved in clothing
industry, there are around 12,300 variety of clothing products are available in many online

websites and catalogues (Keller, Parameswaran, and Jacob, 2011). It adopt different
strategies and tactics to maker innovation in products and increase its customer base. M&S
also consists of many home products which is reaching to many national and international
customers. Moreover, it is also partnered with many cosmetics manufacturing companies and
providing around 3,300 beauty products at diverse locations. M&S is also known for its
Banking services, as its is joint ventured with HSBC bank in order to provide many banking
facilities to several people. It is displaying diversified range of products and services to many
customers, due to which the company is able to drive its customer towards to varied range of
products and services. As a result, it helps to build customer-base and loyalty.
TASK C
Recommendations
From above study it is recommended that both organisations have used different
branding strategies in order to increase their position in competitive marketplace (Fuchs and
Diamantopoulos, 2010). M&S and Burberry has varied range of products and services that
are rendered to many customers. Both multinational retailers have different brand
segmentations and market activities, according to which its performance affect. So there are
some recommendations identified in order to improve the branding strategy of M&S and
Burberry.
 It is recommended to M&S that it should improve its clothing industry, as its clothing
sales are declining due to lack of style and innovation, therefore it is suggested to
bring creativity and style statement in apparels and other fashion products, so that its
customer-base will increase. It is very necessary to acquire the trust of customers, so
companies should provide creative and high quality of products.
 M&S is also lacking the availability of new products, which are desired by customers.
Customers find difficulty to choose products according to their needs and demands.
So it is recommended that the company should improve its customer services.
Customers are very dissatisfied its availability of cloths and other accessories, so the
company should widen its platform in order to bring new products and services.
 It is estimated that Burberry is hit by Chinese slowdown; its luxury market is
suffering more challenges which lead down its sales by 4% in last 3 months. The
demand for its fascinating Heritage trench coats and scarves are slowing down, which
is falling its sales in Asian market. So Burberry required to again carry out market
research about the fashion trends of people in many countries of Asia. The product

should be developed more innovative and stylish according to customer's preferences
and choices.
 The cost of living is changing year-on-year, so it is require to focus on new product
development strategies and techniques. With the change in mind-set of people, it is
required to adapt changes according to them. There should not be obsolescence in
apparels and other fashion accessories.
 Both the organisations are also required to focus on marketing and promotions
activities. They should maximize its advertising activities in order to hold the
attention of customers. The company should use various digital marketing tools to
communicate with their consumers in order to get feedbacks on the branded products
and services.
 As due to evolution of e-commerce, the competition of these retailers have been
increased. People prefer to shop from online sites rather than visiting to physical
stores and supermarkets. So Burberry and M&S should heavily invest in web
browsing tools, customer data abstractions, analytic and database management
techniques in order to grow luxury customer-base.
CONCLUSION
Branding strategy is key component of any business. There is a great impact of
branding strategies and models on the marketing activity of an organisation. So, each
company is required to evaluate its brand position and equity to stand-alone in the
competitive retail industry. From above report, it is concluded that Marks and Spencer and
Burberry should adopt various branding strategies in order to widen their businesses and
increasing the productivity. With the increase in market competition, companies should be
able maintain its position by adopting several strategies or branding and positioning.

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