The Burberry brand has broad consumer appeal. See Appendix 1 for the suitable brand extensions that can improve the core brand (Pitta and Ktsanis, 1995). SWOT analysis a highly interactive process and requires effective coordination among â¦ 4.Burberry’s brand has a lot of competitors. The above comparison reveals that Burberry is present in those countries whose per capita income is far below that of Australia’s and if Burberry is still in those countries it shows they are still there because they are earning profits. The timeline shows Burberry's worldwide revenue from 2005 to 2020. As Randall (1997) observes, “A brand then has an existence separate from an actual product or service: it has a life of its own.”. Digital integration and e-commerce development: Burberry is committed to creating a seamless link between the physical and digital presence of the Burberry brand, responding to the direction of retailing as an increasingly multichannel proposition. Study for free with our range of university lectures! Therefore, the brand became a symbol of both luxury and superiority (Heller, 1999). The expansion of the product portfolio includes a wider purchaser base and the adoption of a multi-brand positioning, reflects many of the developments that have occurred within other premium international fashion retail companies which include firms like, Ralph Lauren, Gucci and Prada (Moore and Fernie, 2004). The reputation of the company was improved through Burberry’s development of “gabardine” – a material that was resistant to tearing which was weatherproof but was also breathable (Burberry, 2002). Gucci, the Italian luxury brand is one of the example. You can view samples of our professional work here. The optimum way to solve this problem is to compare the per capita income of Australian residents with those countries in which Burberry is already present.Â [xvi]Â Some of them are showed below. Buyers are likely to use brand names as signs of quality and value, which means they are reliable (Moorthy, 1985). Discover luxury outerwear, leather bags, cashmere scarves, beauty and more. If the skill level is so high, you can charge above average and enjoy high profits as niche brands do. What types of representatives, brokers, wholesalers, dealers, distributors, or end-use customers, and so forth should Burberry use? Therefore, they buy Burberry and moreover, they have the warranty. Marketing We manufacture our products at both Burberry-owned and third-party locations. Burberry needs to keep their brand at the peak of mind with their past, present and future customers. They will take the Burberry goods from sea port to the franchises. To further improve service to top customers, the Group launched a pilot initiative aimed at better meeting the specific requirements of these clients. All work is written to order. A successful brand name can be used as a stage to start related new products. -Licensee lacks ability to become a competitor, -Overcomes ownership restrictions and cultural distance, -Greater risk than exporting a & Licensing. PESTLE analysis â¦ Snacks and champagne could be served to make their brand image look more classy as Burberry is associated with the glamour world. Edison, NJ -- -- 12/15/2020 -- A new business intelligence report released by HTF MI with title "Global Luxury Goods Retailing Market Report 2020 by Key Players, Types, Applications, Countries, Market Size, Forecast to 2026 (Based on 2020 COVID-19 Worldwide Spread)" is designed covering micro level of analysis â¦ The challenge to re-position Burberry as a high fashion brand required the opening of a flagship store in central London. With an emphasis upon the trademarks and key products, the campaigns do not feature individual products, but instead presents a mix of products which present the overall brand image and thus demonstrates the scope of the product range. However, in response to these declining sales, the business is restructuring the company in an attempt to understand the foreign consumer. The higher the credibility, the more convincing the company (Sobel, 1985). There are three major pricing challenges that are faced by the companies like Burberry who provide high-end products, when going to a new country (say Australia). The brand can add major value when it is well recognized and has positive relations in the mind of the consumer. The company sells a variety of products, which include makeup, skincare, fragrances, bath and body, and hair care products. The below figure, shows a brief descripition of what product items had the most sales in 2009/10. Each country has its own unique set of trade compliance regulations and certainly each pose its own set of logistical challenges. Although it is being focusing on Corporate Social Responsibility but it is only regarding fair policies and deals with the supplier and partner firms. The marketing team must find a way to manage the meaning behind the check in a strategic way, which should create a consistent brand image. Moreover, each season the company provides a brochure containing the current collection focused on the customers and operates information in the website which contains information on the history of the business, descriptions of current advertising campaigns including the shareholder’s information. In addition, the shows create and support the fashion reliability of the brand and produce international press coverage. The organization team also recognised the significance of a flagship store as an important means for attracting the attention of the international fashion press and that it would help Burberry get hold of greater editorial and other media coverage. The Fall/Winter campaign was flourishing and Emma Watson was then the cover model for the 2010 Spring/Summer campaign. The overall economy has now slowed for three consecutive quarters. It must be calculated by keeping in mind all costs including hidden costs. Do you have a 2:1 degree or higher? It was the status brand of preference for Hollywood film stars and European royalty. The brand faces threat from other competitive everyday brands in terms of pricing as well as availability. Burberry has been using a variety of techniques to promote its products in unique ways e.g. Launched on a twice-yearly basis to agree with the release of the seasonal collections to their retail stockists and stores, the brand’s advertising campaigns are focused upon the leading fashion and lifestyle magazines. 12th Jun 2017 Although it is not possible to get 100% information about your competitors, yet you can get a reasonable amount of information about the prices and strategies of competitors and that becomes a foundation of setting prices according to the market strength and potential. Brand equity is an intangible benefit that relies on the relations made by the shopper. See Appendix 2 to get a brief description on advertising, fashion shows and editorial placement. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. This â¦ It usually takes many years before a reputation can be established. Milan because, it recognises the significance of the city as the global centre of luxury fashion and it also provides to maximise fashion media coverage internationally. Any local type of marketing communication and activity are determined by the path provided by the London marketing team. In recognition of the crucial involvement that advertising plays in the growth of international fashion brand positioning, the brand has attempted to rebrand itself with advertisements in magazines such as Vogue, Gentlemen’s Quarterly, Esquire, Tatler and Harper’s Bazaar. The Burberry Black and Burberry Blue brands are the two other diffusion lines that are sold exclusively inside Japan. PESTLE analysis is a framework which is imperative for companies such as Burberry, as it helps to understand market dynamics & improve its business continuously. The essay elaborates the annual report and accounts analysis of a luxury fashion house, Burberry â¦ In addition, your store service and the way you access the customer also matters. It is produced in limited quantities in order to gratify the demand for exclusivity among wealthy consumers, this collection is distributed through Burberry’s flagships stores and also prestigious department stores like Selfridges and Harrods in London. Extended Distances and Multiple Variables Goods are typically traveling a greater geographical distance, possibly requiring different modes of transportation. For instance if you are having a company owned store and special arrangements are made for customer relationship management, you will aim to set your price high even with no after sales services. Burberry In VRIO Analysis. (Exhibit 2), Public relations using various newspapers and magazines.Â [xiii]Â. Free resources to assist you with your university studies! 3)Inventory Management: All type of inventories i.e. There is a huge untapped market within Asian region. I did this survey to get a clear picture of the brand (Burberry)’ s current position. Burberry will have to take these factors into considerations and design its distribution network according to it. This could be done by, digging out the outdated merchandise of the line and replacing them with a new line of products. A brand is a symbol or name used to recognize a particular product. If your potential customer is elite class, you will focus on setting the price high as in case of luxury products. You provide your personal information voluntarily and Burberry can only send you â¦ We're here to answer any questions you have about our services. The only non-performing sales environment is Spain in which sales are down 20 percent (Rigby). 5.The brand’s sales rely mostly on the Burberry check. The Burberry brand also incorporates the company’s accessories range which with a sales value in 2008 of £58.3m, has appeared as a highly important part of their business (Haid, 2009). Burberry has a multi-level brand strategy that includes different brand stages. “Classic tailored style, especially in ready-to-wear, feminine elegance, luxury fabrics; reinvention of the invention of the woman suit.Â [xviii]Â, Tiffany and Co. is also available at seven different locations in Australia.Â [xix]Â, Prada is available in Melbourne, Sydney, Southbank and Surfer’s Paradise.Â [xx]Â, There are nine factors which a company needs to consider while setting a price:Â [xxi]Â. Let’s see the availability of some of the competitors: Gucci is available in Australia.Â [xvii]Â, “The fresh and joyous vision combined with savvy interpretation of the Gucci legacy has delighted fashion followers around the World.”. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Updating the product line could be another option. Credibility is the believability of an entity’s purpose at a particular moment in time. This report aims to identify Burberry’s marketing position in order to make recommendations. I would also suggest to create Brand Awareness. The Burberry London line is publicized at London Fashion Week each season in the showrooms in London. My survey was based upon 13 simple questions where the responders had to choose an option from about 4 or 5 choices, and in some questions they could choose more than one option. Choose your location and shop Burberry.com for innovative menswear and womenswear. The company has about 10.000 employees in over 500 stores around the world (Burberry 2017). Because of its high status and quality, it received two royal warrants from Britain's royal family over the â¦ Strength of competition and pricing in that country. If you need assistance with writing your essay, our professional essay writing service is here to help! Its revenue in 2016/17 was about £2,8 billion and its EBIT close to £400 million, making it one of the strongest companies in the UK. Using both – the primary and secondary research methods, I have provided plenty information about the brand and ensure that the data is valid and reliable as possible, and will fully support my final set of recommendations. Burberry produces and distributes a wide range of luxury outerwear for both men and women around the globe, but most of its revenue is generated through the sales of accessories. As such, it is possible to classify the Burberry brand model in terms of a pyramid. The Thomas Burberry range is one of three diffusion brands which is targeted towards the younger generation, 15-25 year old consumer group. Most of the marketing and promotional efforts of Burberry went for success but once they caused a heavy problem for the brand management. These all elements are essence of a well defined and controlled IMC plan which is clearly seen from Burberry’s current market success. The management team chose New Bond Street which was critical since it placed Burberry near to the other leading luxury and fashion brands in London – such as Chanel, Versace, Gucci, Prada, YSL and Bulgari. Social networking through Facebook and own social network named “Art of the Trench” which presents pictures of its customers.Â [viii]Â, Show at the London Fasion Week in 2009.Â [ix]Â, Television commercials for different products.Â [x]Â, Promotion of latest collection in 3 Dimensional graphics at Burberry’s website.Â [xi]Â, Develop interest and curiosity of customers through online Burberry games in which you can customize the clothes and accessories of a dummy so that you can imagine your personal choice on your own.Â [xii]Â, Billboards at selective places. Additionally, Burberry products such as inner clothing, pants and socks are made from organic cotton wool that â¦ Wherever a person sees a check print, they know that it is Burberry. We continue to invest in product to drive improvements in quality, as well as focus on reducing, reusing and recycling the â¦ Likewise, the presentation of the British fashion brand Burberry over the same era has been determined mostly by the acceptance of business models which have been harmful to the company’s performance (Cowe, 1998). 2. Company and market share data provide a detailed look at the financial position of Burberry Group Plc, while in-depth qualitative analysis will help you understand the brand strategy and growth prospects of Burberry â¦ By doing this, the risk will be shared, the expertise will be enhanced and Burberry will get an easy access to market. 3. Burberry Prorsum is the couture high fashion range that provides as the focus for fashion shows and editorial coverage. Burberryâs wide range of luxury products â¦ Gucci, Prada and Armani are providing but Burberry is not. Registered Data Controller No: Z1821391. Reference this. A proposal for a new market strategy for the Thomas Burberry London perfume range 1.0 Introduction The organisation I have decided to propose a new marketing strategy for is Thomas Burberry. But CSR also demands some social works so that people might have a soft corner in their mind and hearts about Burberry. Today’s marketplace is all about finding the next big trend. Gathering the responses the respondents gave, I have processed them in to a map of key brand associations. Talking in brief: Burberry today is believed to be one of the leading luxury brands of the world. *You can also browse our support articles here >. Kate Moss became the face of Burberry for sometime and in 2009 Burberry endorsed British actress Emma Watson. Which channels of distribution should Burberry use to market its products in Australia? The nature of the product you provide to customer and services associated with it will also affect pricing techniques. Burberry’s product line is very intensive and is covering six major categories. Its financial results are improved dramatically as they entered the new millennium. It is a unique luxury brand with international appreciation. Ever since the early 1920’s, Burberry has remained as a staple of both luxury and durability. Following actions are taken during Burberry’s IMC campaigns: Equipped Roald Amundson when he became the first man to reach South Pole and left a gabardine tent there to let Shackleton know that he had arrived first (power and hague2008)Â [vi]Â. Celebrity endorsement through British supermodels like Lily Donalson and Agyness Deyn to sponsor their latest collections. By keeping high prices if Burberry can earn profits from a country like India where per capita income is 3248, then they will definitely be successful in Australia (with 39231 per capita income) with the same high quality and high pricing techniques. Throughout the First World War, Burberry continued to produce the officer’s raincoat by adding functional dimensions such as straps, epaulettes and D-rings which is now named the “Trench coat”. Burberry can be mostly found in department stores, but their flagship stores are the actual place where they can propose the largest product line. A luxury item customer have more concern with the value of the brand and not its price so he is ready to pay more for such product as compared to a price sensitive customer who can compensate the quality on price.Â [xxii]Â, Pricing is the most direct way of communicating the product value to the customers. This could be done by using advertisements in glossy fashion magazines. Analysis of Burberry’s latest shift of focus: Burberry’s has shift company culture and processes from a static wholesale model to a dynamic retail model. Burberry’s trench coat was selected to be the official coat of the British army in World War I (Forden, 2000). Whereas marketing department of Burberry is conducting the market research for determining future situations and trends in the market (Blythe and Martin, 2019). These all progresses are reflecting the exponential growth of the company which is a proof of its successful marketing strategies that’s why I would recommend to stick with the current IMC plan.Â [xiv]Â. With this frame of mind, as well as extensive market surveying, Bravo identified that this was how to fill up those missing gaps of the market. The brand equity in the Burberry line of garments obviously lies in its famous checker pattern. The product is niche, so high control is required to ensure the quality of the products. BURBERRY Market Capitalization Analysis Market Capitalization is the total market value of a company's equity. The Burberry London line is the company’s ready-to-wear range which is presented in two collections for spring/summer & autumn/winter for both men and women. (Figure 2). 4) Order Processing: It can be managed according to the need and demand of the Burberry’s products in various franchises in Australia. Burberry has also started eliminating non profitable stores and opened new stores in Las Vegas, Tokyo and Nevada. The business is balanced between non-apparel (36% of 2009/10 revenue), womenswear (35%), menswear (24%) and the smaller but an upcoming potential, childrenswear division (5%). Burberry PLC is a manufacturer, wholesaler and retailer based in London, which operates in the luxury sector and is selling apparel and non-apparel products on high quality standards. (Exhibit 1) In a sense Burberry is differentiating itself through its signature trench coat and specific pattern so I would recommend Burberry to launch its existing products in new market with the same theme in order to differentiate their offering form that of competitors. So I would suggest Burberry to advertise more upon their beauty line. The option of a fashion brand is dependent upon the efficacy and appropriateness of the decisions of those dependable for its management. Similarly, the men’s collection has been extended to consist of swimwear, sportswear and a ski collection. Burberry's worldwide revenue amounted to about 2.63 billion GBP in 2020. The pricing strategy depends upon market segmentation and the target market. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. The Burberry In VRIO analysis is basically the extension of the Burberry In PESTEL analysis, which allows the oragnation to understand the resources, competitive edge, value proposition and its value in the market. Following are the products that Burberry can introduce. This modification was supported with the introduction of a new brand logo and fashionable packaging. Furthermore Figure 1 is confirming the fact that the luxury spending from high net worth consumer has started to fall in the mature markets of West and there is a rise in the luxury spending patterns in the Asian countries and is expected to grow further in future.Â [iv]Â Due to these facts, I would recommend Burberry to enter in the new markets with the existing products so that it can serve the untapped customers. If Burberry develops a technique to appeal to a broad customer base, they will be more successful. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Where should Burberry produce its products and how should it distribute them in Australian market? This is not an example of the work produced by our Essay Writing Service. The shows for both men and woman’s Burberry Prorsum are held twice, yearly in Milan. The Burberry check pattern was launched in the 1920s as a lining to its signature trench coat and thus became a registered trademark. Credibility is thus dependent on the company’s reputation (Fitzgerald, 1988), which Burberry is well-known for. As Burberry is featured among the 100 best global brands, now it is important for it to keep an eye on competitor’s move and products. Burberry has made itself distinctive from other brands with the help of it’s pattern. Nevertheless the â¦ This idea is referred to as brand equity (Hunt and Morgan, 1995). Its European and American markets grew and the trading profits and sales are increased handsomely. Despite of this SCR factor, Burberry’s current IMC plan is pretty good as this plan has got all the important elements that must be included in IMC of a niche brand. While the overall strategy for Burberry remains unchanged, in the short term, we will continue to strengthen the brand, complete the product transition and adapt our strategic initiatives to address the current market â¦ Burberry has been very different with quality, as defined by the classicism, endurance and functionality that characterized its history as the outfitter of choice for the explorers and adventurers who pioneered aviation and arctic exploration (Dovaz, 1998). Secondly, it is obvious that fashion shows and associated events are crucial to the realization of international media coverage. Company Registration No: 4964706. (3) Editorial placement. But it is a difficult task to set a price as it involves integrated decision making at different levels of the organization ranging from strategic planning (which takes long term planning for profit objectives into account), tactical planning (which take short term market dynamics like demand shifts and competitive effects into account) and execution level planning (which is concerned about inventory and supply management).Â [xxiii]Â. Burberry Plc deals in the fashion industry, where it distributes clothing, a variety of fashion accessories, as well as licensing fragrances. Burberry Group plc (Burberry) is a global luxury goods manufacturer, retailer and wholesaler. With a particular and strong focus upon the British images, these advertisements draw heavily from the firm’s history and heritage. Unreliable information adds risk and decreases flexibility in the SWOT analysis a highly interactive process and requires a of! Glamour world free samples could be done by, digging out the outdated merchandise of the brand Pitta! Nottingham, Nottinghamshire, NG5 7PJ is secure and we 're here help! Dissertations, you will focus on Corporate social Responsibility but it is only regarding fair and. Which Burberry is going to make recommendations are trying to make an online survey people. Which is clearly seen from Burberry ’ s the brand can add major value when it is trading... A & Licensing both luxury and durability all Answers Ltd, a company registered in England Wales... The foreign consumer ages of 18-55+ is well recognized and has planned to invest in! The Burberry London line is publicized at London fashion Week each season in the international supply beyond. Launched in the international supply chain moving ll be receiving until the shipment actually arrives Caroline Tynan Nottingham business. Burberry 's worldwide revenue from 2005 to 2020 a forerunner of their famous signature trench coat for officers! 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