burberry market analysis

Our academic experts are ready and waiting to assist with any writing project you may have. The constrains I think that are taking place are the following: 1.The market and current trends are regularly changing. 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. UK, US, Asia and Europe but it is not covering it entirely. There are several examples of brands that have flourished and gone down accordingly of the business models that management have positioned in order to reach their strategic objectives. It was the status brand of preference for Hollywood film stars and European royalty. Burberry can be mostly found in department stores, but their flagship stores are the actual place where they can propose the largest product line. It also deals in men’s products that include cleanser… Burberry maintains its dominant position in market by carefully analyzing and reviewing the SWOT analysis. 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). Burberry Analysis Burberry is an international luxury brand with differentiating brand values that resonate across a multi-generational and dual-gender audience. Burberry must turn to outsource providers who can offer the expertise needed to keep the supply chain moving. The first proposal was to update the picture of the brand by firstly changing the name from Burberry’s to Burberry. (Exhibit 2), Public relations using various newspapers and magazines. [xiii]Â. Each country has its own unique set of trade compliance regulations and certainly each pose its own set of logistical challenges. These constrains could be covered by firstly, repositioning the brand. For instance, the company realises that its domestic advertising liter… 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. Sponsored Audrey Hepburn in Breakfast at Tiffany’s. [vii]Â. I would suggest opening Burberry stores in more places, as the brand is now bought by a broader customer base than in the past. 4.Burberry’s brand has a lot of competitors. A brand aiming at mass marketing will never set prices comparative to the niche brands that just focus on selective customers with supreme quality products. 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. The work of the Burberry Foundation and further progress in business responsibility demonstrates these values in practice (Burberry, 2003). *You can also browse our support articles here >. Furthermore, all the main competitors of Burberry are operating in Australia and are operating with the same skimming price strategy, so in order to compete them globally, Burberry would have to stick with the same pricing strategy. (Figure 2). For this, the levels of distribution channels will be low. Study for free with our range of university lectures! New locations are added into existing markets including Paris and New York to intensify Burberry’s presence in these high potential metropolitan areas. Keeping up with the trends and appealing to people of all ages could be the perfect way to saturate the brand. 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. Traffic Sources Find out which are the main sources of desktop traffic for burberry.com. To attain the credibility for high quality, a company must develop a reputation for manufacturing and delivering quality goods(Bell, 1984). Most companies are not sure how to get their goods from origin to port in-country, how to ship from port to port over the ocean. So market development strategy is recommended from the Ansoff growth matrix. The Burberry brand has broad consumer appeal. clothing, store design, headquarters architecture graphics and social media are been a significant part of its promotional strategy. Today’s marketplace is all about finding the next big trend. Because of its high status and quality, it received two royal warrants from Britain's royal family over the … 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. [xiv]Â. 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. So I would suggest Burberry to advertise more upon their beauty line. For buying power of the potential customers in Australia, Burberry won’t have to start from the base as Australia is not the first country in which Burberry is thinking to start business. 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 customer has an income of $55,000+.  [ii]Â. Burberry targets traditional individuals as well as the new fashion conscious customer. A brand is a symbol or name used to recognize a particular product. There are four options for Burberry to enter the Australian market. [xxvi]Â, -Limited sales potential in target country, -Maximizes scale uses existing facilities. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Burberry’s approach to marketing communications highlights three key considerations. Before the outbreak of COVID-19, we were on track to move to the second phase of our transformation in FY 2020/21. Burberry has also started eliminating non profitable stores and opened new stores in Las Vegas, Tokyo and Nevada. Additionally, Burberry products such as inner clothing, pants and socks are made from organic cotton wool that … “A luxury brand with a distinctive British sensibility, strong international recognition and different values that resonate across a multi-generational and dual-gender audience.” [xv]Â. These three ethics are at the heart of the brand, its behaviour and culture as a company. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. The pricing also depends upon your target market. But if your customer is price conscious, you will aim to set your price below average, even if you have to compromise on quality. How might Burberry differentiate their offering from that of competitors? Therefore, the brand became a symbol of both luxury and superiority (Heller, 1999). This idea is referred to as brand equity (Hunt and Morgan, 1995). 2.High earning people shop everywhere, and lower income people cannot afford Burberry. Some of the broader aspects of global logistics that should be implemented while going global and hence Australia: Visibility in global logistics becomes very complex and difficult to achieve in an international supply chain. Moreover, the brand being 150 years old, customers can rely upon it as they have survived so far. With this basis, the brand does not need to push away the loyal customers, because their line will remain stable with what they have responded to favourably all this while. Stock analysis for Burberry Group PLC (BRBY:London) including stock price, stock chart, company news, key statistics, fundamentals and company profile. This could be done by sending free samples to make-up artists so they can use it and be aware of the beauty collection too. This is not an example of the work produced by our Essay Writing Service. The only strategy that Burberry will have to adopt would be a Skimming Pricing Strategy as if a company’s offering has enough differentiation which can justify a high price and have minimal desires for having market penetration, then it can set your prices very high. [xxiv] The other reason for high prices is its skimming pricing in all the countries in which Burberry is available. Supplied the Ministry of Defense with a version of gabardine coat for use of its officers in the trenches of Northern France in World War 1. Potential New Target market and New Product Opportunities: The brand maintains a broad appeal across dual gender audience of ages of 18-55+. exporting and licensing as exporting will give the advantages of minimizes risk and Investment, speed of entry and maximizes scale uses existing facilities while licensing will have the benefits of legal protection and will cover the factor of cultural distance. 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). What are the characteristics and capabilities of the available intermediaries for Burberry? [xxv]Â. 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. Finally, a media management scheme is crucial for the achievement of adequate editorial coverage and the growth of a reliable international brand summary and standing. 5.The brand’s sales rely mostly on the Burberry check. 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! 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 pricing techniques heavily depend upon the strategy of a business. SWOT analysis a highly interactive process and requires effective coordination among … All of its major competitors are there in Australia and are operating with the same high prices that are worldwide. Do you have a 2:1 degree or higher? Extended Distances and Multiple Variables Goods are typically traveling a greater geographical distance, possibly requiring different modes of transportation. (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. According to my questionnaire, I realised that respondents are not much aware of their beauty range. Brand equity is an intangible benefit that relies on the relations made by the shopper. If Burberry develops a technique to appeal to a broad customer base, they will be more successful. I did this survey to get a clear picture of the brand (Burberry)’ s current position. Burberry achieved 60% growth in the year in E-commerce, and has planned to invest further in it. If your product is having high demand in the market, you can charge high price but if the demand is low or competition is strong, you will have to lower the prices unless your product is not uniquely identified. PESTLE analysis … The brand can add major value when it is well recognized and has positive relations in the mind of the consumer. Where should Burberry produce its products and how should it distribute them in Australian market? A multinational brand has intensive experience regarding workload, efficiency and number of customers, so they can easily set high prices. 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). Joining the ranks of global economy players is not easy and requires a lot of forethought, planning and consideration. The aim of this decision is to attract younger generation, while still appealing to the current customer base. Amongst the biggest problems in global supply chains include: Long and uncertain lead times which inhibit the ability to respond to market demands and adequately orders on a timely basis. Buyers are likely to use brand names as signs of quality and value, which means they are reliable (Moorthy, 1985). It is a part of product placement and shows how Burberry is going to make the product available to the customers. 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. 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