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 area) 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, large amounts of disposable income, and upper class and fashion-conscious people, whereas 70% of Burberry’s luxury products in China focus on the young audience. 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.
Therefore, it needs effective marketing initiatives to gain competitive advantages and better performance in the China market. The forecasted sales of Burberry in China for 2018 are $1670 million, and the estimated marketing budget should be $33.4 million for 2018 for the Burberry China market. This budget will be used for R&D, product development, price development, place development, promotional and marketing activities, people development, improvement in physical evidence and business process
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. The Value Proposition
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.
Image: Stakeholder analysis of Burberry Source: Burberry Plc (2018)
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.
|Firm infrastructure: licensing, wholesale and retail in global markets|
|HR: diverse workforce, Burberry recruits, Burberry helpline|
|Technology Development: use of modern technology and database|
|Procurement: new innovation, new design, new items in global markets|
· Burberry beyond
· Ethical suppliers
· Announced/unannounced audits
· Operation in China
· Apprenticeship schemes
· New training school
· Shipping options
· Regional distribution hub
· Deliver directly
|Marketing and sales
· Connected global audience
· Rise of social media
· Marketing innovation
· Customer centricity
· Customer service growth
· Customer feedback
Image: Porter’s Value Chain Analysis of Burberry Source: Burberry Annual Report (2017)
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.
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The customer value proposition of Burberry
|Functional values||Products are comprehensive and convenient 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.|
Image: Analysis of customer value proposition of Burberry Source: Burberry Annual Report (2017)
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……………….