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.

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Value Chain Analysis:
Businesspeople love Porter's value chain concept. Burberry Group must not use it as a hard,
isolated foundation for all operations. Burberry's Value Chain Analysis shows that not all
activities or functions need the same amount of inspection. First, determine the relevance of
activities based on their role in goods delivery.
Primary Activities:
Burberry's major value chain operations are creating and selling products to clients.
Analyzing the company's fundamental value chain processes may help enhance Burberry's
performance.
Inbound logistics:
Supplier support is needed to receive, keep, and distribute the product. Burberry can
encounter development issues without studying inbound logistics. A corporation must
analyze incoming logistics from raw material to finished product. Inbound logistics includes
obtaining raw materials, storing them, and distributing them internally to start manufacturing.
Outbound logistics:
Burberry may analyze and optimize outbound logistics to fulfill corporate growth goals.
When outbound activities are handled with optimal prices and product order fulfillment has a
minimal negative impact on performance, satisfaction of customers, and growth potential
increase. Burberry should prioritize its outbound value chain activities when its items are in
high demand.
Operations:
Both production and service are included in operations. Burberry's competitiveness depends
on an in-depth understanding of the company's operational activities. Burberry may be able to
achieve steady economic growth, higher profitability, and a solid foundation for a
competitive edge because of the enhanced efficiency.

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Secondary Activities:
Support activities coordinate and facilitate primary value chain activities. Burberry's
assistance actions can be analyzed as seen below.
Firm Infrastructure:
Infrastructure includes quality control, legal issues, accounting, finance, planning, and
organizational strategy. Burberry can optimize its value chain with effective infrastructure
management. Burberry can manage infrastructure costs to boost its market dominance.
Human resource management:
Burberry can examine HRM by analyzing recruitment, selection, development, rewarding,
performance appraisal, and other people management operations. Burberry may lessen
competitive pressure with effective HR management focusing on employee motivation,
dedication, and talents. The organization can reduce expenditures by comparing hiring and
training costs to their return. Burberry's reliance on staff talent will make this value chain
activity important.
Technology development:
Practically every value chain activity requires technology in today's highly developed society.
Production, distribution, advertising, and human resources (HR) must all be integrated into
one system at Burberry. There is also an emphasis on product and process development.
Technology-supported customer service and research designs are instances of automation
software.
External Analysis:
PESTEL Analysis:
Burberry uses PESTLE analysis to understand market forces and enhance its operations. The
PESTEL analysis of Burberry is discussed below:

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Political Factors:
Burberry isn't only a London company. Since it operates widely in many nations, it must
follow its rules and regulations. Political stability helps a country's operations. Brexit has left
behind an unpredictable climate where businesses are unsure of the laws that will alter their
viability. Investors have cut back on these countries due to regulatory uncertainties. Politics
affect Burberry's business (Olteanu, 2020). Certain corporations' high taxes on foreign items
have increased costs and reduced profits. In developing and underdeveloped countries, the
first copies of the brand affect and disrupt revenues. These countries have weak copying
laws.
Economic Factors:
Since the brand is more elite, tax changes or dollar valuation won't affect its operations
substantially. Unless those circumstances impair sales of its premier products, this range's
sales will stay consistent. Middle-range pricing changes affect it. With price increases but
less discretionary income growth, customers will opt for cheaper alternatives to Burberry.
London vacationers often buy Burberry. Tourism decline may affect goods sales. The quality
of a company is diminished if its utility or quality is reduced or if buyers locate a better
brand. The corporation must monitor pricing, promotions, product value, and rivalry to stay
competitive.
Social Factors:
Wealthy people prefer Burberry's luxury brand. Since seeing the possibilities in upper-
middle-class consumers, the corporation has introduced mid-range products. By meeting
client needs, the company hopes to grow sustainably. The company runs in numerous
segments, serving distinct categories of people. To be relevant, the organization must meet all
its needs. Burberry accommodates all fashion preferences, from skimpy to conservative. The

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country's business operations have changed the market, and it uses social media to get
customer feedback so it can further serve the public.
Technological:
Burberry has remained relevant through shifting fashions. The brand makes use of a variety
of social media platforms to enhance its public image and boost sales. The organization feels
that collaborating with social media is the best way to stay relevant in today's market. It is
only a matter of time until a firm becomes outdated if this component of sales is overlooked.
Burberry also places a lot of emphasis on shopping online. The use of numerous e-commerce
networks, social media sites, and statistics to help predict patterns based on the current
situation and demand are all part of the company's strategy.
Environmental:
The firm has recently established science-based sustainability goals to attain in the future.
Burberry has vowed to minimize carbon and GHG emissions from its industrial activities. It
plans to cut direct operations by 98 percent by 2025 and supply chain emissions by 40
percent by 2035. These aims will assist Burberry fulfill the Climate agreement. The firm is
also dedicated to employing sustainable energy in its supply chain (Percoco, 2017). (Percoco,
2017). Burberry is taking attempts to accomplish environmental excellence and contribute to
the society.

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Legal:
Burberry operates in multiple countries and must follow restrictions. It must observe local
labor and employee rights. If these laws are broken, the corporation faces lawsuits from many
parties, and rebuilding the brand's reputation is tough. The corporation must obey anti-bribery
rules in multiple nations. The US and Europe have stricter laws. In poorer countries,
particularly in Asia, these regulations are laxer. Consumers also file quality-related
complaints that harm the company’s image. Burberry must monitor changes in product
policies in different regions to avoid consumer litigation.
Porter Five Forces:
Power of buyer:
Consumers' power is influenced by economic power. Because they are less vulnerable to
economic downturns like the recent global financial crisis, high-net-worth individuals make
excellent customers. The number of buyers who fall within this category is rising, giving
them more clout in negotiations. Despite it having less purchasing power, middle-market
buyers influence fashions and designs. As an upper-middle class, their market has great
potential. The business is in a difficult balance due to two incompatible buyer groups.
Power of supplier:
Established market segments affect suppliers' influence. Increasing bargaining power may
cause vertical integration and industrial specialization. This reduces suppliers' bargaining
strength. Supplier specialization is rare. Established players can buy small-scale suppliers to
starve competition.
Threat of Rivalry:
The industry is characterized by a high level of rivalry. Customers' views of pricing and the
normally substantial margins mean that competition isn't centered on price. The competition

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is mostly based on how viewers perceive and evaluate an image's quality. Attracting and
retaining talented designers is an important component of this industry's competitiveness.
Threat of Entry:
New designs threaten the industry. Major industrial companies easily absorb tiny yet
effective innovators. Businesses provide designers foundation for growth. Newcomers can
readily grab volatile middle-class clientele. Customers want brand names, which take time
and effort.
Threat of Substitution:
Burberry specializes in trench coats. They created a collection of apparel and accessories.
Losing exclusivity led to a decline in brand value. Individuals who bought from its stores
intended to distance themselves from lesser classes, yet due to growth, those of all lifestyles
could buy Burberry. The brand's popularity declined, and customers began researching
alternatives, so the corporation rolled back its product offerings to generate value. Since the
corporation won't try the bitter medication again, they're exposed to apparel designs that
compensate for traditional things they can't sell. In the evolving fashion industry,
replacements might determine Burberry's market edge.
Strategy summary:
Methods for interacting with the target market, formulating a plan, and identifying the
organization's goals are all included in marketing strategies. Many marketing strategies have
been used by Burberry to reach its target audience across the globe. As a result, let's take a
closer look at the company's marketing strategies. Burberry's marketing strategy is based on a
steady stream of promotional activities. It promotes its products and brand using both
traditional and cutting-edge marketing strategies. It uses commercials, print, and outdoor
advertising as part of its traditional marketing approach. Burberry, on the other hand, has

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shifted its marketing strategy to concentrate more on digital media. Ads and events by the
company are often inventive.
In addition to using country-specific brand ambassadors to market its goods, the company
increasingly prioritizes elaborate digital advertising. Now that we understand how Burberry
delivers its products to its target market, we will examine the marketing tactics it has used
over the years to promote itself.
Brand Ambassador:
The stars of each popular company are its Brand Ambassadors. The pace of life has
accelerated, and mobility has increased. When you need to contact someone, you may easily
do so and get a prompt answer. They act as a bridge between a firm and its customers,
facilitating communication. Many of these specialized groups also benefit from their
participation in these activities. Among Burberry's brand ambassadors are creative people and
sports stars at the national level(Phan, Thomas and Heine, 2011). Sales of their products have
risen dramatically as a consequence of the efforts of these ambassadors. Among the
celebrities are Marcus Rashford of Manchester United, Luke Wong of Korea, and Zhou
Dengyo, a well-known actress in China.

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(Brand Ambassadors of Burberry)
Videogames digital marketing:
Burberry's business strategy was to push itself and many others. This approach relies on
creativity, both on-premise and in digital campaigns like mobile game launches. Burberry's
digital marketing approach included this theme(Shastri, 2018). B Bounce and RatBerry have
increased customer involvement with the brand at retail stores and online with mates, family,
and other consumers worldwide.

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(Games of Burberry)
Pop-up Store strategy:
Pop-up shops provide two roles for a brand. For starters, popups provide companies with a
way to interact with their consumers and provide them with information about their goods
and services. In addition, firms may use it to display new items without having to rent real
space.

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This unusual kiosk-like launch of Burberry's pop-up shops in certain regions is introducing
the brand's items to new customers. They continue to endeavor to provide the finest possible
service to their clients.
(Burberry pop store in Jeju Island South Korea)
Key performance indicators of Burberry:
The high-end market is made up of businesses that produce and/or sell high-end items in
terms of both quality and cost. An array of luxury goods may be found in this category:
upscale garments and accessories, as well as high-end footwear and jewelry. Wines and
liquor, as well as autos, may also be included. The quality of luxury brands is regarded as the
best in the industry(Straker and Wrigley, 2016). The combination of high costs, restricted
availability, and celebrity endorsements create a sense of exclusivity and luxury for
consumers. The six strategy pillars and Responsibility objectives are tracked using KPIs, or
key performance indicators.
As adjusted operating profit is the company's profit KPI performance metric, modified profit
before tax has been deleted as a KPI. On any new rewards for Executive Directors, adjusted
pre-tax profit is no longer considered a performance indicator. A new KPI for ROIC has been

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developed to take into account the effect of IFRS 18 and utilize Group operating profit
beginning in FY 2019/20. This aligns better with other KPIs than the previous option. In
addition, operational profit measurements are used in setting incentive compensation goals.
Every year, starting in FY 2019/20, a new KPI will be added to the list until a five-year
history has been compiled.
Burberry is proud to have several distinctive assets, such as the strong brand equity it has as
well as the famous check pattern that appears on its hallmark coat product. This is especially
the case as a direct consequence of the fact that the company has had a long history ever since
it was founded. Burberry has invested a lot of time and effort into developing its goods
(Value). They redesigned and upgraded their textiles, reimagined their shapes, and expanded
into product categories that were lucrative and connected with their mission. Burberry's
persona created 'Warrior' and 'Creator' brand identities from the beginning of the company's
existence. Brand Name and Digital Development are two of Burberry's Core Competencies
that are Key to the Company. When it comes to a premium fashion company like Burberry,
both the name of the brand and its reputation are of the utmost significance.
Estimate Risks:
"The Risk Score is a useful metric for evaluating the attractiveness of a company. There is a
Risk Score of 6.00 for Burberry Group plc, meaning that the company has a medium risk. A
Risk Score of 10 indicates that the company faces a very low risk "

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Burberry has a much greater Risk Score than the companies in its peer category. Because of
this, Burberry has a far lower risk profile than its peers in the industry. Emerging threats are a
major concern. With the help of their responsible team, they conduct horizon scanning in
order to keep an eye on any prospective threats that might have an impact on the industry
and/or our firm. To put it another way, while developing hazards are in their infancy, their
entire potential effect is unknown. They use third-party experts as appropriate to understand
better how the risk level could vary over time. In the risk management strategy, one year has
been considered short term, four to seven years intermediate term and much more than 5
years long term.
The most significant danger is that consumers' tastes may shift. heightened awareness of the
need for long-term viability in products and businesses Consumer buying habits are heavily
influenced by important groups and people, such as the expanding social media power of
Generation Z.
Marketing And Communication:
Nothing beats the power of a brand actively working to raise consumer knowledge of and
affinity for its name and image. Participating in numerous campaigns and events may boost a
firm's market recognition and financial returns in a matter of weeks or months. To reach a
wider audience in each nation, Burberry actively participates in the development of new
operations, both online and off. Campaigns like "Voices of the Future" are encouraging
young people to speak their thoughts(Zigu, 2018). It is the goal of this program to transform
the culture of young and bring communities together. For this party's campaign promotion,
they've teamed up with Marcus Rashford. Burberry's new campaign demonstrates the
premium fashion house's willingness to support the voices of the future in order to achieve a
brighter future.

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As a result, the company's logo depicts a horse rider holding a shield. The horse conveys
magnificence, pride, and innocence, despite the shield's symbolism of safety. The black of the
emblem symbolizes elegance, longevity, and power of Burberry's goods.

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(Burberry logo evolution)
Since its conception in 2018, Burberry's emblem has evolved to represent the brand's new
age. With its young and contemporary style, it emphasizes the fashion house's active and
progressive nature as well as its propensity to study and create the most current fashions.

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