Burberry Marketing Strategy – Marketing Strategy of Burberry: Established in 1856, the global British Luxury brand Burberry has developed unique craftsmanship and design that combines innovation. The brand is based in London and designs, manufactures, and sells ready-to-wear clothes, sunglasses, and fragrances.
Burberry reinvented itself in 2006 to become a digital enterprise that offers luxury products. Artificial Intelligence, data analytics tools, and reward & loyalty programs were used by Burberry to improve customer engagements.
Burberry At A Glance – Marketing Strategy of Burberry
Company : Burberry
CEO: Marco Gobbetti
Founder: Thomas Burberry
Year founded: 1856, Basingstoke, United Kingdom
Headquarters: London, United Kingdom
Annual Revenue: £2.63 billion
Profit | Net income: £122 million
Products & Services: luxury clothing, leather goods, accessories, fragrance and beauty products
Burberry Fun Fact: In the early 20th century when World War I broke out, the British Army tapped the expertise of Thomas Burberry to update the Tielocken and turn it into a functional outerwear on the battle ground. He designed the coat to include belt rings to hold grenades, maps and flasks; shoulder straps to secure binoculars and a gas mask, and large flaps for an added protection on the chest while military men were in the trenches (thus, the term “trench coat”).
Marketing Strategy of Burberry
Burberry’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Burberry? Let us discuss.
Burberry Marketing Strategy – Segmentation, Targeting, Positioning
Burberry, the iconic brand, segments the population-based on variables such as offers for women, men, children (0-36 months old baby, Boy/Girl in the age range 4-14 years), as well as fitness freaks and operating in geographical segments Asia, America, Europe, and the Middle East.
Burberry employs a differentiated strategy to target customers. This includes upper social class customers aged 20-45 and diverse requirements like clothing, accessories, hygiene factors, and cosmetics
It is a brand that carries the rich heritage of British culture, creativity.
Burberry Mission Statement
Our purpose is to unlock the power of imagination to push boundaries and open new possibilities for our people, our customers, and our communities.
Burberry Vision Statement
“To bring pioneering British creativity and culture to the world by creating beautifully made products, inspiring with storytelling and shared experiences, delivering impeccable and distinctive services, and continually innovating.”
“Iconic British Luxury Brand Est. 1856”
Burberry Marketing Strategy – Competitive Advantage
Burberry has 48,000,000 subscribers online. It is also present on more than 20 social networking sites, such as Facebook (17 million subscribers), Twitter, and Instagram. WeChat, Line, WeChat, Line, etc. These platforms allow Burberry to stay in touch with customers and understand their changing needs.
Downsizing Assortments & improved Customer service:
The company simplified the product lines, reducing product options to approximately 15-20%. However, they kept their focus on the Strong Product Line and innovation/newness in the design.
A company launched a customer feedback program (promoter scoring methodology) to increase its focus on Retail Businesses. This system measures the quality and satisfaction of customers using the feedback system.
Burberry Marketing Strategy – BCG Matrix
The Clothing business accounts for more than half of the brand’s revenue. It has a growth rate of 5 % in 2017 vis-a-vis the BCG matrix.
Accessories complement the mainline clothing business by offering customers accessories that match their style. This segment is Star because it generates 38% of the brand’s revenue and follows the global fashion trends.
Burberry faces competition from companies that offer a wide range of beauty and cosmetic products.
Burberry Marketing Strategy – Distribution Strategy
Retail generated 77% of the brand’s revenue, while wholesale was responsible for 22%. License agreements generate 1%.
The operations of brands are split into three regions. The Asia Pacific accounts for 39% of total retail/wholesale revenue, the Americas account for 25%, Europe, the Middle East, and India account for 36%, and Africa (EMEIA), 36%.
The fastest-growing channel in the distribution model is digital commerce. It accounts for 7% of luxury sales. In recent years, Burberry has developed third-party relationships with Amazon and Alibaba to leverage this medium.
Burberry Marketing Strategy – Brand equity
Apparel and accessories British brand was ranked 147 on the Forbes Magazine List of Top Multinational Performers. Its Market Capitalization is $9.6 Billion as of May 2017, while the brand’s revenue in the last year was $ 2.8 Billion.
Most Luxury brands are associated with customers through shows or events. Burberry also sponsored/organized events like The February 2018 show, The September 2017 Womenswear February 2016 Show, which helped the brand increase its Share of Mind.
Burberry Marketing Strategy – Competitive Analysis
Through its global supplier network, the Luxury brand has been able to transmit the rich heritage of different countries. This has allowed it to popularize unique and authentic designs.
Burberry is a market leader by reaching out to developing countries (India, for example) and delivering innovatively through Omni-channels. This includes reducing product ranges and simplifying offerings.
It competes with luxury brands like Zara and Only, Dior, Madame Tussauds, and Armani.
Burberry Marketing Strategy – Market Analysis
Burberry has begun SAP Ariba Technology to enable a digitally-enabled universal supply network. Burberry’s market continues to be difficult due to stagnation in developed countries, high levels of debt in emerging markets, and easy acceptance of digital media for purchasing. The well-respected wholesale segment is seeing a decline in sales growth.
However, the strategy for the brand is digitally compatible with other players on the market, thanks to the advancements in technology and digital platforms.
Burberry Marketing Strategy – Customer Analysis
Burberry’s customer is a super-rich HNI (High Net Worth Individuals), who are at the Esteem stage according to Maslow’s hierarchy.
These customers are highly demanding and have a detailed view of everything around them. They are also passionate about looking good and standing out from the crowd.
Wholesale segment customers include franchisees, eCommerce websites, wholesalers. The retail segment caters to women and men between 20 and 55 years old, as well as children between 0 36 months and 04-14 years.
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