A Strategic Marketing Plan for Burberry: Module MMW226484 (2022)

This report provides a comprehensive strategic marketing plan for the luxury brand Burberry. It begins with an executive summary and introduction, followed by an in-depth internal analysis, including an examination of the marketing mix (product, price, promotion, and place), strengths, weaknesses, opportunities, and threats. The report then moves to an external analysis, utilizing PESTEL and Porter's Five Forces frameworks to assess the political, economic, social, technological, environmental, and legal factors influencing Burberry, as well as competitive forces. A value chain analysis is also presented, breaking down primary and secondary activities. The report includes a strategy summary, brand ambassador analysis, digital marketing strategies (videogames and pop-up stores), and key performance indicators. Finally, the report estimates risks and discusses marketing and communication strategies to enhance Burberry's market position. The report emphasizes customer focus, brand heritage, and social media presence as key strengths while acknowledging weaknesses such as high prices and product line limitations. Recommendations are offered to capitalize on opportunities like collaborations and product range expansion, while mitigating threats from intense rivalry and imitation products. The report concludes with a forward-looking perspective on Burberry's strategic direction.

2022
Title: Strategic marketing plan of Burberry
Student Name:
Student ID
Module name: Strategic Marketing of Luxury Goods
Module code: MMW226484
Module Leader: Professor Natascha Radclyffe-Thomas

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Contents
Executive Summary:.....................................................................................4
Introduction:..................................................................................................5
Internal Analysis:..........................................................................................6
Marketing Mix of Burberry:..........................................................................6
Product:.....................................................................................................6
Price:..........................................................................................................7
Promotion:.................................................................................................8
Place:.........................................................................................................9
Internal Analysis:..........................................................................................9
Strengths:...................................................................................................9
Customer Focused:................................................................................9
Wins Royal Warrant twice:...................................................................9
Strong Social media presence................................................................9
Weaknesses:............................................................................................10
High prices:.........................................................................................10
Short product line:...............................................................................10
Opportunities:..........................................................................................10
Collaborations:....................................................................................10
Increasing the Range of Products:.......................................................10
Threats:....................................................................................................10
Intense Rivalry:...................................................................................11

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Change in the lifestyle of people:........................................................11
Fake Products and Replica Threats:....................................................11
Competitive advantage:...........................................................................11
Value Chain Analysis:.............................................................................11
Primary Activities:..............................................................................12
Inbound logistics:................................................................................12
Outbound logistics:..............................................................................12
Operations:..........................................................................................12
Secondary Activities:..............................................................................12
Firm Infrastructure:.............................................................................13
Human resource management:............................................................13
Technology development:...................................................................13
External Analysis:.......................................................................................13
PESTEL Analysis:...................................................................................13
Political Factors:..................................................................................13
Economic Factors................................................................................14
Social Factors:.....................................................................................14
Technological:.....................................................................................15
Environmental:....................................................................................15
Legal:...................................................................................................15
Porter Five Forces:..................................................................................16

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Power of buyer:...................................................................................16
Power of supplier:...............................................................................16
Threat of Rivalry:................................................................................16
Threat of Entry:...................................................................................16
Threat of Substitution:.........................................................................17
Strategy summary:.......................................................................................17
Brand Ambassador:.................................................................................18
Videogames digital marketing:...............................................................19
Pop-up Store strategy:.............................................................................20
Key performance indicators of Burberry:...............................................20
Estimate Risks:........................................................................................22
Marketing And Communication:.................................................................22

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Executive Summary:
The purpose of this paper is to develop a marketing strategy for the premium British
company Burberry. Burberry's plans for the UK market's advertising. For men and women,
Burberry's main product lines are custom clothing, seasonal wear, and Burberry-branded
merchandise. As a result, Burberry has shifted its attention to a youthful, more exclusive
customer base and product uniqueness. The majority of Burberry's premium items in the
United Kingdom are aimed towards a younger demographic, with a considerable amount of
disposable cash, and those who are upper-class and stylish, as well as young adults. Luxury
companies like Louis Vuitton, Versace, and Gucci are effectively competing with it. When it
comes to window displays and publications, Burberry is noticeably absent. In addition,
Burberry is currently putting less emphasis on marketing or promotional efforts than it did
before. A comprehensive analysis of Burberry's marketing tactics and ambitions is the focus
of this project.

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Introduction:
When Burberry was established in 1857, it was a premium outerwear business that
specialized in both style and functionality. The company Burberry is now valued at around
£2.7 billion. Because of its significant UK export market share, it is a leading luxury brand.
Thomas Burberry established Burberry in Hampshire, England, and the company's global
headquarters are in London, the United Kingdom (UK). Burberry is one of the world's most
reputable brands, according to Forbes(Abalkhail, 2019). The competition includes Gucci,
Parada, and Carol. Burberry is a high-end fashion house that makes everything from
handbags to shoes to suits. Thomas Burberry founded the company in 1856. For decades, the
firm was known for producing waterproof materials but has now evolved into a luxury
apparel brand.

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As a renowned brand in luxury ready-to-wear clothing, it has been credited with various
contributions. In the fashion industry, the word "Burberry" has come to mean "excellence and
quality." They offer everything from handbags to shoes to jewelry to tiny leather products to
small leather goods to handbags at the premium design company. Luxurious goods are made,
designed, and distributed all over the globe by this company. A wide range of demographics
may be served by the company's goods. In this assignment, I will cover the background and
current position of Burberry. I will analyze `the marketing mix, PESTEL analysis, and
Porter’s five forces. Furthermore, I will analyze the internal and external analysis of the
organization.
Internal Analysis:
Marketing Mix of Burberry:
All four aspects of the marketing mix structure are examined in Burberry's marketing
strategy, including the 4Ps. One of the various ways you may sell your product is via
production process, pricing, and promotion.
Let's start with the Burberry Marketing Mix to grasp its product, price, marketing, and
distribution methods.
Product:
Product strategy and promotion mix may be summarised as follows:
Burberry is a well-known name in high-end fashion all around the world. As the world's
leading manufacturer of clothing and accessories for both men and women as well as
children, Burberry has a wide range of products. All of these goods are part of the premium
clothing brand's marketing mix. (Daradkeh, Gouveia and Sen, 2018).

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(Burberry outlet in the UK)
In contrast, accessories have a far longer shelf life than clothing, which must be supplied
within two months or they will be out of style. They are the best products for customers who
are just starting off. Among their offerings are scarves and other soft goods. Hooded cloaks
are among the company's most popular products. There are a number of Burberry products
that don't need a customer to test them out before purchase. For the time being, Burberry's
watch market has been taken over by Fossil Group.
Price:
Burberry charges premium prices on its items. Burberry aims for a balance between its low-
end and high-end products. Burberry doesn't compete with other high-end brands in the same
price range. Design, durability, and consumer perception are distinguishing aspects.
Burberry's pricing approach hasn't changed much because it could drive them away. Market
demand and rival prices determine to price. It bases rates on customer demand and buying
intent. Before pricing a product, Burberry considers its pricing advantages over the
competition. The company's annual revenue exceeds $3 billion. The company now
emphasizes online sales. Customers value digital channels more, therefore Burberry
reevaluated its warehouse and distribution touchpoints after the Covid–19 outbreak.

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Promotion:
The following is Burberry's promotion and marketing strategy:
Burberry invests heavily in marketing. Marketing is vital in the clothing industry. Ads in
upmarket newspapers target a certain audience. Burberry's marketing mix includes TV, web,
print, and banner ads. Since then, Burberry has used social media marketing. Strong digital
marketing helps Burberry communicate with consumers. Their strategy includes celebrity
endorsements. Burberry is promoted largely through viral marketing, not TV ads. Kate Moss
and others attend. Effective advertising requires digital technologies.

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Place:
Over 55 nations have hundreds of Burberry stores. Businesses in heavily populated areas
have a constant revenue. These locations have numerous Burberry fans. This suggests these
cities are profitable. New Burberry shops provide innovative, tech-driven customer service.
Burberry.com also generates a lot of visitors. Since Burberry controls most of its shops,
customer satisfaction is similar.
Internal Analysis:
Strengths:
A firm’s strengths are the places where it is well-positioned to do business and compete in the
market. The following are a handful of Burberry's best qualities.
Customer Focused:
Fashion publications and websites like GQ, Glamour, Elle, and Vogue are the only places
where Burberry is advertised. During the 1960s and early 2000s, it relied on celebrity
endorsements to regain its image. With the help of celebrities such as Kate Moss and Rosie
Hamilton brand was able to maintain its freshness and attractiveness.
Wins Royal Warrant twice:
Royal warrants from Queen Elizabeth II and Prince Charles indicate that Burberry may
advertise that they provide royal family members with their items(Irina Ivanovna
Skorobogatykh, Saginova and Zhanna Musatova, 2014). The brand has benefited greatly
from these historic accomplishments.
Strong Social media presence
To look relevant to its target audience, the company knows how important it is to use social
media excitingly and collaboratively. There are 15, 241, 296 Facebook likes, 1,803, 991

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Twitter followers, and 59, 061 Subscribers on YouTube for the firm, which shows the
effectiveness of the industry's social media marketing approach.
Weaknesses:
Negative features of a corporation, such as its weaknesses, are designed to harm its
reputation. This causes the brand to fall behind its rivals. To stay in business, the company
must address its flaws. The weaknesses of barberry’s are discussed below:
High prices:
Although the high price denotes quality and desirableness, only a few buyers can afford it.
High-priced things are out of reach for the younger generation, who want stylish, and
luxurious lives.
Short product line:
Only garments, cosmetics, and accessories make up the company's product range in the
luxury/fashion area, but other firms have expanded their product lines to include home
furnishings, personal grooming goods, and so on.
Opportunities:
Opportunities are variables outside of the company's control that have a beneficial influence.
In this case, Burberry can enhance its output because of the many opportunities it has. Let's
see if we can confirm that.
Collaborations:
Burberry and other companies may work together to reduce the price of clothing. If the
organization uses e-commerce properly, it may reach out to a larger audience.
Increasing the Range of Products:
As it expands its product range, the company can distinguish itself from its competition.
Taking advantage of these opportunities may help Burberry rise above its competition.

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Threats:
Additionally, external circumstances might impair a business in a significant way. To
counteract the dangers it faces, the company must be aware of its situation.
Intense Rivalry:
Having a global presence, Gucci, Bottega Veneta, and Prada pose a severe danger to
Burberry's long-term survival. To remain competitive, businesses in all sectors must always
come up with new and improved products.
Change in the lifestyle of people:
Keeping up with the ever-changing fashion and lifestyle trends is a constant source of anxiety
for the organization(Jung, Kim and Bae, 2009). Due to the limited lifespan of Fad goods, a
fashion house's standing in the market can only be maintained by regularly releasing fresh
collections of clothing.
Fake Products and Replica Threats:
In the long run, fake items reduce the value of well-known companies' reputations. Having
strong trademark and intellectual property (IP) rights is critical to the company's reputation,
success, and ability to compete in the marketplace.
Competitive advantage:
Burberry's major competitive advantage is that the firm has more resources than its
competitive brands. Retail, wholesale, licensing, and e-commerce platforms are used by the
corporation to sell its goods. Burberry's retail division serves as a direct conduit for customers
to purchase the brand's merchandise. The company's product line is categorized as
"continuity products," which means its lifespan is limited to a few years at most. As a "style
product" manufacturer, the firm makes things with a deliberate eye on keeping up with
changing fads. 'Functional luxury' is the firm's central concept, and it aims to appeal to all its
customers.