The report is prepared to discuss and develop some marketing strategies for Burberry. Burberry is a famous brand of luxurious products. The headquarters of the company is in London, United Kingdom. Burberry has opened its stores in China. They have made some plans to improve the business over there. Like, they want to increase the amount of revenue by 40% within 2020. They have targeted to achieve the increment in the percentage of gross profit and net profits to 5.72% and 2.13% by the end of 2020. The company wants to increase its share percentage in the local market of China. Customer satisfaction is another section where they try to up the percentage to 80% from 75%. They have a target to launch some new products in that market and also to increase the number of their stores.
Burberry generally has the production of menswear, women wear, bespoke, seasonal items, and Burberry special brand items. Burberry has its new target for young people and they want to set up the market according to that. In this report, SWOT analysis is described to know about the strength and weak sides of Burberry. Then with the Porter Value Chain model, the value-adding process of Burberry is discussed. 7Ps marketing mix model shows what kind of factor is related to the business process and how Burberry has operated its business with all these factors. All of these things can give ideas about the effective marketing process of Burberry in the China market. At last, some action, budget of Burberry is discussed.
2.0 Situational Analysis.
2.1 SWOT Analysis.
2.2 Porter Value Chain Analysis.
3.0 Marketing Plan for Burberry.
3.1 Marketing Objectives.
3.2 Strategic Marketing.
3.3 Marketing Tactics, both Traditional and Digital
3.4 Action plan and implementation.
Burberry has a reputation for good workmanship and represents the company at the highest level to the customers. The company gives value to the priority of the customers and does not make any sudden decision which can be harmful to the company. The company sets the business with lots of seasonal collections. They want recognition from the customers of a particular area where they have settled the business. Customers are always looking for something new. So, Burberry needs to realize this fact and should set a perfect business strategy for the company (Blueberry, 2019).
2.0 Situational analysis
2.1 SWOT analysis
Sorsby (2016)claimed that SWOT analysis is a kind of business strategic model that is used to figure out the condition of a company according to some criteria like strengths, weaknesses, opportunities, and threats. Burberry can set up their business by considering all these factors by using the SWOT Analysis.
Figures: SWOT Analysis Source: Research Methology (2017)
Richter and Pahl (2013) said that strengths refer to the strong factors of a company. The company always wants to have more strong sides for the prospect of the business. In the case of Burberry, it is very advantageous for them to have a strong network for business all over the world. They can easily connect to their international customers as around 48 million people all over the world are now following this company. They can promote the products on fashion websites and can attract so many people to the company. This thing helps the company a lot to compete over the other rival companies.
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Weaknesses are the reasons for which a company is lacking behind. The company needs to work on the weaknesses and should find solutions to overcome them for the improvement of the company. The high price of the products works as a weak factor for Burberry. Common people with lower income cannot afford to buy products from Burberry which creates some problems for the company. The turnover of staff is another weak factor for the company as it affects the efficiency of the company badly.
Opportunities are the chances for the companies to lash onto those and bring something good for the business. Opportunities play as a tonic for the business to make some progress. Burberry has its opportunity to manage end-to-end retail to have some products in the retail. The company takes the opportunity of expanding its market when the amount of sales increases. The company is very much capable of making some differences in the products which helps them to reduce the loss factors when the particular product is not doing well in the market.
According to Blokdyk (2019), threats are the dangerous factor for a company that can come from the outside or can create in the company also. The company should always have a precautionary arrangement to face threats. For Burberry, the biggest threat is the rival companies from which they always find tough competition. Competitor companies like Gucci, Prada also have a great position in the market. Changing style is responsible for the short lifecycle of the products. Burberry also considers the instability of the political and economic sectors as the major threats.
2.2 Porter value chain analysis
Porter’s value chain has discussed the areas of prospects and growths which a company can achieve. The company should capitalize on those factors through this analysis of Porter. It ensures the combination of the systems and operational activities of the company. It discusses the expenses to run the business and also about the process to satisfy the customers. According to this analysis, it is important to have a cost structure for the company. The company can add its production values with it. Porter value chain gives the idea to select a technically sound production process for the business…………..