Prestigious and Luxury brand such as Burberry symbolize the uppermost level and form of design. It strains a customer loyalty that is not exaggerated by movements. This brand established seasonal trends and is also capable of making consumers, wherever they are recognized. Luxury consumers are constantly in the search for newer ways to fulfill their unpredictable desires and needs. Therefore, it is important for Burberry not being bounded with the exclusivity and geographical location also to be able to conduct a study and supply their customers with a significant importance, to can be found as the successful high-end fashion label (Hines & Bruce, 2007).
This report will try to discuss and criticize the key factors of Burberry brand that helped to support its exclusivity and the marketplace strategies which have been put in practice to impact the brand image and gained such high revenue. Furthermore, it gives a conclusion how this brand can continue its aura and luxury status and finally a conclusion with tips on areas of improvements.
From the live loading of Burberry's runway fashion shows online and in the major flagship stores, the company's primary position on Facebook and Twitter to be the most ''liked'' brand, it's very successful promotional initiatives aimed to put the brand on the top within the ''democratic luxury placement'', Burberry has been viewed as one of the most profitable luxury brands of days gone by couple years, attaining their profits to go double when deciding to acquire digital marketing tools, thus having the ability to stay on float in the time of global tough economy and financial crisis.
Luxury brand is a ground-breaking notion both from the point of view of a internet entrepreneur and the buyer (Hines & Bruce, 2007).
Environmental factors impacting on the marketing of Burberry
Rivalry- associated collection trends
Analysing the annals of Burberry it sometimes appears that it was financially doing well till the monetary downturn of 2008. Since that time and until now it has not been fully recovered yet. Moreover, there is a huge competition within the luxury fashion industry. And during recent years it has intensified and Burberry is facing such a competition in many of its products and markets. Amongst company competitors are those international luxury goods companies who control a number of luxury brands and some are smaller firms focusing on local development. Thus, Burberry's opponents differ through the several products they produce including non-apparel, womenswear, menswear and childrenswear, hence they are having greater money and bargaining ability with suppliers. Furthermore, those customers with less income are buying more high street clothes, which in changes generate a competition from middle priced market (http://www. burberryplc. com/bbry/).
Unpredictably changing ecological and financial environment
An important environmental factor such as terrorist harm or natural catastrophe which is not under control of the company may affect the business market. In such conditions, businesses within the marketplace cannot be guaranteed, especially in the short term (http://www. burberryplc. com/bbry/)
Constantly changing customer profiles and daily life trends
The Burberry's successful business depends upon its capacity to go beyond the customers' expectation and unstoppably stimulate the demand by creating new, functional used and classy goods. Thus to build up trending categories, company must create particular product communities and balance major garments and non-apparel markets. In the meantime of attracting new customers to the brand, Burberry offers innovation to the market. In addition the business features outerwear and the Burberry Check symbols within its marketing initiatives (http://www. burberryplc. com/bbry/)
The company has created its hierarchy and expresses the eagerness to become more attentive to luxury fashion by acquiring the capabilities which would help revive products and reload them, hence it'll give the company main concern in responding to the constantly changing environmental factors in more efficient and proactive manner.
Segmentation methods, concentrating on and setting of Burberry
The geographic requirements refers to the regional and population aspect of the marketplace.
The demographic segment refers to era, gender, ethnicity, religion, social class, job and family status (Kotler, 2008). The Burberry customers tend to be in an enormous age range. The classic styles in today's perspective are obtained by an enormous range of men and women if they are more radiant or older. Furthermore, with having children's range the company can cater for all age groups.
Psychographic segmentation is usually a lifestyle-orientated section which uses passions and activities as the basis for the marketplace (Cant, 2010). The Burberry generally draws in traditional yet stylish individuals who appreciate the heritage and legacy of the brand. Those people who like old British classics like trench overcoat in today's perspective.
Behavioural segmentation will entail consumer purchasing patterns with regards to the product (Lancaster & Massingham, 2011). Burberry tends to target stylish, young people, both men and
female who are both fashion aware. Those could include
includes students and employees. They are satisfied about good clothes from
a traditional brand and realize there's a style. They are aware of good clothes and love them. Relating to the four segmentation conditions, the primary targeted individuals of the Burberry are usually young males and females who are old common fashion-loyal luxury style buffs.
After changing the label of the casual type of the women's and men's garments clothes as Burberry Brit, the company has achieved more quality in its brand segmentation. The dividing label from Burberry London series allowed the brand to broader their variety in each portion and to achieve more effective distribution of the products within the targeted group of individuals (http://www. burberryplc. com/bbry/)
The targeting strategy the Burberry uses is very much a distinct segment market. Also, they almost doubled their marketing budget and launched a fresh advertising campaign to build up and promote their brand image throughout the world. Their advertising strategies and production tend to presume that customers are those elite consumers and, specifically in recent time, increasing on the certain cultural groups of individuals within the united kingdom who are valuing a superior quality products and custom brands (Bickle, 2010)
Through the theoretical platform the Burberry's placement could be thought to be good position in the clients' head through better product capabilities, price and quality, offering the product in different ways than the opponents do (Kotler, 2008). The Burberry is put relatively strong against its competition. It really is rivalled against Ralph Lauren and Gucci luxury goods giants. Burberry has used segmentation, targeting and setting highly effectively in their online marketing strategy. They have got chosen a 'democratic luxury" placement which got a positive effect during the recent financial meltdown. Moreover, the business is focusing on improving of the grade of their products in the fashion industry. Altering affordable prices with high branding, which, in converts, help to position their products in the buyer's heads among the best. The Company again becomes as an attractive brand which has proven popularity amongst luxury fashion market and continues to grow. Their strategies are a reason for concern with their competition, as their market share increases. The merchandise is one which continues to develop, thus increasing their revenue.
As the blissful luxury fashion industry has been deliberate to proactively react to the quick rate of online marketing & branding, Burberry is a successful innovator in digital marketing, scrupulously among luxury brands, behaving as an inventor with initiatives which include:
Social Networks. Burberry got its typical trench cover and put it online, showing this timepiece to online users and thus attracting youthful audience through the digital advertising by starting the public networking website, Artofthetrench. com. Inside the first week it enticed more that 200, 000 guests and 3 million site viewers. Furthermore, Burberry has more then 700, 000 supporters on Facebook, attracting the clients with help of Twitter so you tube.
Moreover, whilst having considerable amount of fans on Facebook, the company realized it needed to develop its exceptional and exclusive personality through its created area and community which has been accompanied by inventing and employing further strategies by using following digital principles.
Retail Theatre. The retailer also known its customers' digital saviness and unveiled a range of iPhone software allowing customers to buy instantly, thus coinciding with their runway shows.
Online Channels of Runway Shows. Being aware that most people can't experience first-hand of the runway, Burberry attempted to provide their customers another most sensible thing with smooth online streaming shows. Which in changes created a fresh selling niche in the wonderful world of luxury fashion by bringing runway to truth faster than other competition' brands can deal with - goods ordered online are on hand for delivery within seven weeks, rather than the usual up to six calendar months- completely new in the standard luxury fashion delivery pattern (Bickle, 2010).
As an advantage of using digital tools in the online marketing strategy Burberry reported 20% upsurge in sales as consumers better their eagerness for luxury brands, after proclaiming the success of its digital inventions. As well as the rocketed earnings and better image the traffic significantly increased in their stores surrounding the world. According to the data a larger proportion of total marketing spend as a percent of sales was shifted to digital marketing consequently of this creativity. Furthermore, the brand has experienced increased brand consciousness and reach of clients, the addition of over 700. 000 Facebook followers and Artofthetrench. com, which received over three million webpage guests since its kick off in November 2009.
Gucci, LV and Vertu have various ways of getting and being psychologically mounted on their consumers. They established this through their versatile products, product looks, excellence in customer service quality, the retail environment, shopping experience and methods in syndication channels. These attributes reflect after the brands marketing methodology and how they adjust to their consumers.
