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Introduction of Marketing Environment and Data Analytics of Burberry Assignment
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The marketing environment can be termed different internal and external factors that can directly or indirectly affect the decisions of the organization associated with the marketing activities. The report includes a discussion about the marketing environment involving the SWOT analysis, pestle analysis, and porter 5 forces capability pyramid of Burberry. It also covers the Integrated Marketing mix which is considered an extension of the four P’s considered in the marketing management of Burberry. At last, it covers the integration of company e in offline and online media (Camilleri, 2018). It will help to understand the overall marketing activities performed by Burberry in the present scenario of business.
Brief about the company
Burberry is a premium fashion label that sells personal accessories, footwear, clothes, and other items. It was established in the year 1856 by Thomas Burberry based in London. Further, the company faces many challenges and has come an extended way to produce waterproof fabric and design a luxurious clothing line. However, Burberry sells apparel, jewelry, handbags, shoes as well as accessories along with this they sell other beauty products. Further, it also caters to the upper level of the manufacturers and society and distributes its products to the different countries as well.
Marketing Environment
SWOT Analysis
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Strengths
· Burberry promotes its products through fashion websites as it is highly focused on branding.
· High presence on social media that helps to interact with the target audience through appropriate social media engagement (Gbadamosi, 2020).
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Weaknesses
· High range of price as it provides desirability and quality so the products are reachable to some people only.
· There is an inadequate line of products as it consists of many like fashion segment and it also extended towards the home decor and personal grooming.
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Opportunities
· Collaborations with the different brands help Burberry for making affordable clothes for many people.
· The development in the emerging market can be considered a huge opportunity and the market includes Egypt, Thailand along with various potential counties for reaching success in the marketplace.
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Threats
· Highly competitive market including the brands like Prada, Gucci, and Louis Vuitton, and their presence in the marketplace can be a huge threat for Burberry.
· The frequent changes in the lifestyle of customer affects Burberry and the company need to develop new fashionable products to increase its presence in the marketplace.
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Political Factors: Several political considerations influence Burberry's company. Certain firms' high tax rates on foreign products have increased costs, resulting in poorer profitability. There are many initial copies of the brand accessible in some emerging and undeveloped nations, which further impact and interrupt revenues to a certain degree.
Economic Factors: The purchase of Burberry increases when people are on holiday in London but, it affects to decrease in the sales of products (Camilleri, 2019). Further, the products and their values are related and they will be demanded in the market if there is some compromise on the quality.
Social Factors: Burberry is a luxurious brand and is mainly preferred by wealthy people. However, they need to satisfy the needs of customers and cover various segments which include different people with diverse needs. The company also activated CSR activities which helps them to lead in changing environment.
PESTLE Analysis
Technological Factors: With emerging dynamics, Burberry has kept up to current. Numerous social media channels are leveraged even by brands, to boost their image, and promote sales. The organization feels that collaborating with social media nowadays will assist one stay competitive. If this sales element is overlooked, it is just a question of time until a firm becomes outdated.
Legal Factors: Burberry operates in several nations and must adhere to a variety of rules. It must adhere to the numerous labor relations regulations which are in effect in these places. If these regulations are broken, the corporation may face litigation from a range of sources, and recovering the brand presence after it is damaged is a challenging undertaking (Ferrell, and Ferrell, 2020).
Environmental Factors: The Corporation has been working on different elements of sustainability, and it just announced its varied scientific sustainability future goals. Burberry has pledged to diminish carbon releases and other greenhouse gases from its different production methods.
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Porter’s five forces Analysis
Threats of New entrants: The threat of new entrants for Burberry is a weak force to impact the competitive environment. However, the new people are not a direct competitor to obtaining the customers.
The threat of Substitutes: There is a moderate force to define the viability strategies of Burberry regarding the threat of substitutes in the changes in fashion trends.
Bargaining Power of Customers: Burberry shoppers buy the things because of the distinct expertise and luxury range of products available only to a greater level of individuals. As a result, it is identified that client bargaining power is a modest force, influencing the economic landscape in the instance of Burberry due to its uniqueness and absence of near competitors.
Bargaining Power of Suppliers: Because of its size, Burberry can obtain high-quality raw materials at competitive prices from its sources (Krizanova, and et.al., 2019). Vertical integration is not an option for these tiny players. As a result, suppliers’ negotiating power is a very weak influence in understanding Burberry's economic programs and initiatives.
Competitive Rivalry: Burberry competes directly with other premium labels such as Prada, Gucci, Louis Vuitton, and others. However, because many firms are competing for the same consumer base, which is a tiny proportion of the total population, the rivalry is fierce. Each one of these companies occupies a distinct market position and draws clients by its vision. However, the increase in online shopping affects the strategies of the business.
Thus, the porter five forces of Burberry mainly highlight different elements that affect the competitive environment of the business. However, it helps in evaluating the diverse external elements of the business (Laurie, and Mortimer, 2019).
Drip Marketing
Burberry's management sends a series of automated emails to those who do a specified activity. You may specify how many emails to send and at what pace for every particular activity. Drip marketing helps Burberry to boost sales and turn the visitors into buyers along with increasing the repetition of purchases and dormant the audience (Duralia, 2018). It can be effective for the target market and automated emails to a wide range of customers to maintain a connection with them.
Capability pyramid
The highest level of a different set of activities at Burberry mainly considers the core competencies of the business. There are some skills of the people at Burberry for growing competency. In addition to this, the second aspect of required competency helps to manage the requirement of competencies at Burberry. The tasks can be completed with the help of different suggestions from people (Juska, 2021). At last, the tasks which are not included in the core competencies are considered the extraneous competencies at Burberry as these functions need to be eliminated.
Integrated Marketing Communication
Burberry employs the marketing mix deliberately to achieve not only marketing goals, but also larger company goals. Businesses must have an effective and transparent marketing plan to grow sales. In this setting, the company's sales and earnings improve year after year as a result of its strengths such as high-quality elegant items, the tremendous development of outlet shops across the UK, and successful marketing efforts. This report will give a detailed marketing strategy for Burberry. The promotional tools play an effective role in developing a unified knowledge for the people (Blakeman, 2018).
Advertising: Burberry has shifted its advertising emphasis away from beautiful print ads and toward digital spending. According to the Financial Times, the premium fashion company is marketing the introduction of its scent Burberry Bodies using Facebook rather than glamorous design publications for the very first ever. Burberry, as a worldwide brand, has used a variety of marketing methods to achieve its aim of attracting people to buy its products. So, let us look through the marketing methods it has used to advertise its high-end items.
Sales Promotion: The sales promotion of Burberry helps to introduce the aspect for an individual for getting some gifts and offer for some new collection. Burberry's sales promotional strategy is based on constant sales promotion. It markets its brands and products using both old and innovative approaches. When it comes to conventional marketing, employs television, paper, and display ads (Zwerin, Clarke, and Clarke III, 2020).
Events & Experience: The event marketing of Burberry mainly uses strategy marketers for promoting the brand, services, and products in the aspect of real-time experience. However, the experimental marketing of Burberry mainly aims to engage the customer with the help of their branded experiences. Burberry is generating growth via innovative customer journeys, bridging the gap between digital channels and physical shops through the use of digital technologies.
Public Relations: The public relations strategy of Burberry will max strength for the emotional connection along with the authentic luxury at the time of leveraging the strong network regarding the communities as well as influencers for amplifying the brand. Further, the company also maintains the focus on the aim of differentiating Burberry’s competitors. Burberry also mentions its presence on more than 20 social platforms and it also includes the people like more than 50 million. Accompany also launch a chatbot with the help of Facebook to promote their show (Benzaghta, and et.al., 2021). The customer also uses chatbots for getting updated regarding the new products and services offered by the company.
Integrated Marketing Communication
Direct Marketing: Burberry uses some direct marketing channels where the company collects the personal information of the customers like their names, phone numbers, and email addresses along with the poster addresses. Further, this information from customers helps the company to provide information about the different products of the company. However the management of Burberry sometime about the customer’s preferences like birth dates for enhancing the services. The email updates regard the new collection of Burberry directly sent to the customer with online exclusives. In addition to this, the company also uses different marketing channels for expanding its business (Teoli, Sanvictores, and An, 2019).
Interactive Marketing: The interactive marketing of Burberry clothes is the publicity campaign that allows the customers to select changes in the images for viewing the products. The technological changes made it possible for the company to make proper use of techniques for the perspective of advertisement. However, the roots of Burberry within the innovation along with the outer clothing can be done with the help of a campaign and people see the images for the shopping purpose.
Word-of-mouth Marketing: Word-of-mouth marketing at Burberry is the practice of genuine people discussing their opinions about your company and its products, so obliquely promoting sales growth and suggestions for you - similar to a ripple effect. It is considered one of the foremost organic aspects through which Burberry tells about the products to the customers. Further, it includes some shareholders to promote and increase the advantages of the products with the help of different channels. Thus, word of mouth for Burberry is wide-ranging quality for the business and increases the level of profitability in the marketplace.
Personal Selling: At this point, Burberry highly uses personal selling in the company. The salesperson must get a customer for buying the product which is highly expensive in comparison with other stores. The salesperson of Burberry is usually good at promoting and trying to get a customer for buying products. The company is not involved in campaign management as they don't make changes in price for people as they do not try to attract customers with their pricing strategy (Wang, and Wang, 2020). The company also has some personal Shoppers in the stores and they are very experienced and selling goods. Personal experience of the management of Burberry helps them to get a wide range of customers.
Thus, Burberry's marketing plan comprises three main essential aspects. For starters, it acknowledges the significance of marketing in the formation of a premium brand image and lifestyle connection. Second, beauty pageants and related events are critical to achieving global media attention (Pardal, 2021). Finally, a social marketing strategy is critical for achieving enough editorial exposure as well as the development of a solid worldwide product overview and status. It is important to follow marketing communication strategies to develop business activities in a marketplace.
How does the company integrate its online and offline media?
Burberry now demonstrates how technology assisted them in adapting online, on social, and also in during the year marked by Covid-19 lockdowns and declining sales. The customers of Burberry want to get benefits from the online as well as offline services by consuming the data from different channels as per the requirement. They desire the convenience of purchasing through online platforms as well as the personalized service that gets with purchasing things in-store. It is still critical to ensure that your offline and online marketing tactics accommodate your audience's varying desires and requirements at each touchpoint, combining your offline and online activities gives a consistent message, which will aid in the development of a trusted and unified brand (Daradkeh, Gouveia, and Sen, 2018). There are five ways in which Burberry can integrate the online and offline media are as follow:
Using one to promote another: Burberry can promote their products with the help of online methods and it can be vice versa. For instance, they can showcase their products before the release of the big TV campaign by sharing some ideas. It means the customers will get an idea about the product line of the company. In addition to building anticipation and excitement, this will increase the likelihood of customers noticing and paying attention to the ad when it does appear. Alternatively, Television and radio commercials may be utilized to direct offline customers to the Burberry website in preparation for an online event or promotion. Spreading your message over both platforms increases its reach and makes better use of the marketing dollars.
Mix up online and offline data: The management of Burberry joins the online and offline data which helps to build in detail the profile of the customer and gives a better understanding of the journey. Once the process of integration is started, the data can be used to collect information on marketing strategy. For example, the company needs to bid aggressively for high-value customers with the help of paid media campaigns and some local ads which help to fulfill the purpose of the business (Ziyadin, and et.al., 2019).
Ensuring Brand steadiness: Synergy between your online and physical branding is critical for integration success at Burberry. If a consumer encounters a tangible marketing effort, such as a leaflet, the digital version should resemble the company’s branding and language. If you operate a business, your website should serve as an extension of your real location. This familiarity with online and offline marketing helps to develop trust with your audience and motivates them to purchase through both methods. If at all feasible, tie up customer service as well. Customers would like to be able to get in touch with companies through one channel and then discuss the topic through another.
Make use of social media for offline events: Make use of media platforms to advertise and boost participation during in-person meetings at Burberry. Customers may utilize your social networking site when in events to engage in competitions, surveys, and post images, improving engagement, strengthening your online presence, and making your audience feel like they're a part of your business. One of the most effective methods is to use hashtags (Ugolkov, and et.al., 2020). Catchy hashtags have become part of the brand property, making it simple for customers to identify and participate in online conversations around events and campaigns. If at all feasible, tie up customer service as well. Customers want to be able to contact brands through one channel and then discuss the topic through another.
Engage some offline customers to prefer online: The management of Burberry should promote online consumers to attend more physical events, Burberry should also encourage your offline customers to connect with your business online. From including your social network accounts and website URL on receipts and banners to offering in-store discounts to users who have shared your posts or "checked in" online, enabling customers to engage with and follow your company online makes it easy to keep the relationship.
Combining your digital and offline marketing activities produces a much more seamless digital experience, enabling customers to navigate more quickly through the customer lifecycle. It also enhances brand recognition and awareness, which will assist your brand stand out in the crowd. It will help to make changes in the preference of the customers and they started to believe in the online presence of the products.
Thus, the marketing management of Burberry required integrating the online as well as offline media channels to grow in a powered direction for enjoying the journey of business. Integrated marketing is no longer a fancy extra – it's a need if you want to survive, and research reveals that it's also good for client loyalty. If you're not convinced, remember that an inclusive approach is also significantly more expensive. The use of a creative mind will help to consider the online marketing strategies possible and beneficial for the development of the business.
Conclusion
Burberry is one of the world's foremost haute couture. Because since its inception, the firm has become a household name amongst design critics and shoppers, carving out a position for itself among some of the upper crust. It will help to understand the marketing environment and the factors which affect the performance of Burberry and some learning about the activities in the marketplace. A business needs to grow in a way that different marketing communication helps the company to promote the products to a wide range of customers. It also covers the integration of Burberry regarding online and offline media.
References
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