This paper aims to create a marketing plan for Burberry, a UK-based luxury brand, for its new international market of China. The marketing objectives of Burberry for its China market in 2018 a) to increase 40% of revenue, 5.72% of gross profit and 2.13 % of net profits by December 2018; b) to improve local market share in China from 14% in 2017 to 16% by the end of 2018; c) to increase customer satisfaction from 75% in 2017 to 80% by December 2018; d) to increase product ranges by adding at least 50 new products by December 2018, and e) to increase 20 new physical stores and online presence by adding mobile devices and developing an app by December 2018.
The key product ranges of Burberry are menswear, women wear, bespoke, seasonal, Burberry brand items, and others. Burberry focuses on formal, workwear and limited ranges, whereas it now focuses on the exclusive, younger target market and product differentiation. The main target customers of Burberry are young professionals under 45-year-old, a large amount of disposable income, and upper class and fashion-conscious people, whereas 70% of Burberry’s luxury products in China focus on young audiences. It is successfully competing with major Chinese luxury brands including Louis Vuitton, Dior, or Gucci. However, Burberry has a poor presence in the display and magazines. In addition, Burberry is now giving less concentration on marketing and promotional activities……
Table of Contents
Task One: The Marketing Plan.
1.1. The Value Proposition.
1.2. Key findings, challenges, and opportunities.
1.3. Marketing Objectives.
1.4. Strategic Marketing.
1.5. Marketing Tactics, both Traditional and Digital
1.6. Action plan, Budgets and Financials.
1.7. Ethics, Sustainability and CSR.
1.8. Controls, Measurement, Review, Risks, and Contingencies.
Task Two: The Uppsala model
Annual Financials for Burberry Group PLC ADR.
Task One: The Marketing Plan
1.1.1 Stakeholder analysis
A business stakeholder can be anybody who has an interest in or can affect a business (Kotler et al., 2015). Mendelow Model is widely applied to analyze stakeholders of a business and its influence on business success (Johnson et al. 2015). The Mendelow model in the following image shows the power and interests of Burberry’s stakeholders.
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1.1.2 Organizational Value Proposition
Organizational value proposition refers to the promises of value to be acknowledged, communicated, experienced, acquired and delivered among the stakeholders of a business (Johnson et al., 2015). The organizational value proposition of Burberry is identified using Porter’s Value Chain model.
1.1.3 Customer value proposition
Customer value proposition refers to a statement provided by an organization that clearly defines the benefits of specific products or services for the target and potential customers (Johnson et al., 2015). Customer value proposition includes functional value, end value, symbolic value, economic value, and emotional value.
The customer value proposition of Burberry
|Functional values||Products are comprehensive and convenience and have the problem-solving ability|
|Economic values||Products are comparably cheaper and provide other financial advantages, innovative, and promote energy conservation.|
|Emotional value||Products are attractive, pleasant, traditional and nostalgic.|
|Symbolic value||Products provide status towards social responsibility that is derived from the brand.|
|End value||Products focus on health, prosperity, independence, youth, customer satisfaction, excellent services, airtight guarantee, and clear explanations.|
1.2. Key findings, challenges, and opportunities
According to Burberry (2017), Burberry connects with its many customers internationally. Burberry is the most followed company on social media with over 48 million followers. Moreover, it is known as the iconic fashion brand in Britain. Then, the Chinese market has positively influenced Burberry’s revenue (Gasparini, 2017). After that, Burberry attracts many people in the community and social media. On the other hand, Burberry products are relevant to the fans of social media. Finally, Burberry’s adverts are placed on fashion websites (including Vogue and Elle) where they can target celebrities (Gurrin et al., 2016).
As Weston (2016) notes, a large number of customers of Burberry are unable to buy the products because of the high price. Burberry has limited itself to a few product lines (Burberry, 2017). Moreover, Burberry has a high staff turnover which decreases the efficiency of the organization. Then, Burberry has low inventory turnover. Finally, Burberry does not create home décor and furniture products like other businesses (Gasparini, 2017).
Burberry is improving end-to-end retail disciplines to drive retail productivity. Then, Burberry will benefit from market growth as it is going to increase sales volumes (Phau, Teah and Chuah, 2015). Next, product differentiation will yield high profits to Burberry. After that, Burberry has the opportunity to minimize the risk of losses whenever a particular product is not selling well (Gasparini, 2017). The company can generate revenue from products that are in high demand.
According to Kulik and Metz (2017), stiff competition from major opponents such as Gucci and Prada that are in the global market is a big threat to Burberry. Burberry products have a short cycle in the market due to changing lifestyles and preferences (Gasparini, 2017). Moreover, there are numerous counterfeits in the market branded as Burberry products. Then, customers begin to doubt if the products of Burberry because these are legit. On the other hand, politics and economic stability also impact negatively on the performance of Burberry.
1.3. Marketing Objectives
Vision and Mission
According to Kotler et al. (2015), the vision statement of a business outlines the purpose and the target point where the business wants to reach. A vision statement is the key source of business inspiration. On the other hand, the mission statement outlines the ways and approaches to reaching the vision means organizational goals.
The vision of Burberry is to be a leading luxury brand in the global market. The mission of Burberry is to attract customers maintaining the highest quality standards and integrity of products along with worldwide distribution networks and innovation. Burberry also maintains the vitality of its brand to ever-evolving markets and keeping in mind the changing needs of customers (Burberry, 2018).
Marketing objectives refer to the measurable goals of the business. The management turns the business vision and mission into objectives. The objectives of a business can be classified as traditional marketing objectives and e-marketing objectives (Palmer, 2015)……………….