How Burberry Has Reached the Expectations Required - Essay Example

?Introduction The ability to reach various audiences with merchandise is able to determine the success and growth of various companies. The profit and growth of Burberry is one of the areas that have been created to alter the expectations within the company. The different products, target market and the approach toward growth is one that can be defined specifically with marketing policies and activities. This is combined with a variety of options that are available with the company as well as the expectations that are required for growth. This research paper will examine the profile of Burberry and how it has reached the expectations required. This is combined with the marketing policies and activities as well as the strengths and weaknesses of the company. After analyzing the different perspectives of Burberry, there will be the ability to create and define the way in which the company can begin to grow and expand with the marketing aspects of the company. By doing this, there is the ability to create and define the audiences and the movement into new territories with the company. Profile of Burberry Burberry was established in 1910 by Thomas Burberry. The development of the store was based on an overcoat trend of fashion for both men and women. The association with the trench coat then led to a variety of styles that were used for different activities, such as adventure, aviation and mountain climbing. The approach then began to develop into activities and looks that were further defined by the art of the trench coat. Today, the Burberry fashion is focused on younger generations not only with the overcoat but also with other trends in winter and summer wear. The Burberry fashion has extended into over 16 countries in both the East and the West with a variety of initiatives to expand the particular fashion line with specific styles and designs that are associated with the brand. This reputation has been followed with the influence of corporate social responsibility, specifically with defining the environmental and humanitarian approaches that are associated with the company (Burberry, 2012). Success of Burberry The success of Burberry is one that is based on the continuous expansion in terms of the internal and external environment. The growth of the company is dependent on the factors of leveraging the franchise, intensifying development of non – apparel items, retailed growth, development of the markets and pursuit of operational excellence. The brand value has been stimulated through these particular aspects, which has led from a profit margin of $2783 million in 2006 to $3732 million in 2010. It is noted that the success is developed partly because of the expanded brand reach that has taken place with the marketing. This has been established because of the ability to use online elements for advertising and promotion as well as different demands and expectations that are related to the environment. This particular approach is one that has provided more options for retail operations within the company (Nomura, 2012). Not only is there an expansion in the marketing and development into other markets. The strategy of Burberry has looked at the competition with culture and innovation in terms of long term growth and meeting needs at a global level. The approach is one which is based on creating a social enterprise. The marketing used is one which has developed the brand name as a part of fashion trends that are also socially acceptable. This is inclusive of offering a variety of trends and social styles, including luxury brand items as well as more casual approaches that can be segmented into different target markets. To do this, there is a combination of online and offline tactics used to meet consumer expectations as well as the ability to evaluate the returns and evaluation with each of the products. Using this to leverage the culture and innovation is able to provide the company with more success and potential for growth, specifically because of the willingness to work with the apparel and the non -–apparel units through various cultural innovations and flexibility with new products that are used in each season (Nomura, 2012). The success of Burberry is furthered with the brand identity that has been established through the company. The brand identity is based on specific relationships that are created through those that are looking at the company. The level of loyalty and the attitudes which are created from those that are looking at the brand identity are defined specifically by the viewpoints of customers and those that are interested in the performance of the business. The brand identity is also associated with the level of quality of materials as well as the expectations that are approached in terms of the products that are available. The brand identity is furthered with the relationship that the consumer has toward those that are looking at the brand identity and the expectations that are related to this. By doing this, there is the ability to develop and create a stronger approach to those interested in the brand (Silveira, Lages, 2011). The strengths of Burberry come from the establishment of the brand identity and the ability to create an understanding of luxury items that move across cultures. The innovation that has been used by the company is able to create and identify the luxury brand while establishing and broadening the market into segments that are interested in different types of luxury and casual wear. Marketing Policies and Activities The first way in which Burberry has been able to alter the marketing policies and activities is to work with the internal environment. A focus that is associated with the success of the company is through the focus on equity as a part of the growth of the company. Environmental and corporate responsibility as well as the highlights of corporate responsibility is one of the main staples of the company. This is able to provide recognition while changing the organizational environment for specific needs. This is combined with an ethical framework that allows the corporate responsibility to become a part of the market. By doing this, there is the ability to create and identify different commitment levels through promotions and items that are used within the company. The ability to identify corporate social responsibility is one that is identified specifically with the ability to grow and develop promotions and materials while identifying communication and causes that are a part of the social environment (Ven, 2008). The marketing strengths that are associated with Burberry are furthered with processes that are used for growth and development of the product. There is a dynamic approach which is used, specifically which offers development and growth of products in different countries. Burberry continues to expand the lines with newer fashion trends and definitions for each season. This is furthered with moving outside of the wardrobe statements and into non – apparel. The marketing strengths are based on the ability to reach more target markets of different demographics. The movement into globalization is associated with this as well, specifically to provide more options and opportunities with the marketing while creating and developing more marketing activities within the company. Segmented marketing as well as approaches to different formats for apparel and non – apparel is able to offer expansive opportunities with the marketing and with the activities that have been created (Fischer, Albers, Wagner, 2010). The various marketing activities that have been created have led to different approaches from segmented markets. The result of the segmented markets and expansion into different cultures and innovative products creates specific responses from consumers. Specifically, there is the ability to grow a stronger sense of trust within the segmented markets while creating even more options with the success that is developed. This is furthered with commitment and trust that develops with a cultural impact among the various cultures. Word of mouth, customer satisfaction, brand reputation and honest communication are some of the approaches which are adding into the strengths of the market. The marketing strengths are further identified with approaching cultural specific differences in each of these marketing communication fields. All of the approaches are able to further identify the needs and responses from those that re working within the specific markets (Falkenreck, Wagner, 2010). The approach to marketing is one which requires an understanding not only of the cultural impact from activities. The use of online and social media is another area that has been able to create and identify the needs within the market. Specifically, there is an understanding of how social media marketing activities are able to create and develop customer equity and loyalty to the brand name. The social media marketing is able to create word of mouth responses, communication and development within the market to create and understand the brand name. With this, there is the ability to define and identify the various products. For instance, luxury brand names are able to have word of mouth reputations that are reviewed through social media. This is further identified with fashion brands and expectations that are associated with the social media. As followers are able to identify with the brand name, the more that there is the ability to gain a stronger sense of loyalty among various segmented markets (Kim, Ko, 2011). Currently, Burberry has identified this with over 10 million followers on Facebook and a brand name reputation that works effectively for various needs. Strengths and Weaknesses The different approaches to marketing as well as defining the brand has led to a variety of strengths and weaknesses within the company. The first aspect of this is within the internal environment. The internal environment has identified a part of the brand through corporate social responsibility. The activities and donations that are associated with this are able to create a stronger image and reputation of the company. As this continues, there is the ability to enhance the brand while creating different approaches to selling items. Currently, the trends in corporate social responsibility are allowing different individuals to become strongly associated with the brand name while having brand loyalty that is a part of the response to the different components (Qiu, 2012). Burberry has done this by highlighting corporate social responsibility in a variety of communities while using this as a part of the promotions that are used with the company. The strength within the internal environment is followed by the customer service and the different manufacturing that is available. This is allowing the reputation to be noticed in various countries as one which holds to the luxury brand and which continues to produce the products that are efficient and effective with specific needs. The concept of customer lifetime value is one which is associated with this particular approach. The internal environment, manufacturing process and the ability to have the right level of customer service has a direct impact on the way in which the environment is developed. There is an upgrade with marketing planning activities that is created, specifically which changes the lifetime value of customers. If a customer is approached by a company without the correct quality, then it changes the brand image identity and the quality which is expected (Sudarevic, Pupovac, 2011). For Burberry, this is established specifically with the internal environment and the luxury items that are able to create a specific relationship to what is required within the environment. The external environment follows with the approach taken by Burberry for the same approach to the marketing which is used. A strength that is associated with the company comes from the segmented market and the approach to culture and innovation as a part of the expansion. The approach of globalization, working with specific markets and identifying new products by the cultural needs and expectations is able to provide different options for Burberry while creating different ideologies and needs for the marketing. The ability to use segmented markets with the products is able to offer a stronger option for growth and innovation while changing the organizational environment to offer more in terms of products and services that are a part of the company. This is able to develop a different sense of value and options for the company while allowing the pricing and the placement of the products to continuously fluctuate according to the market needs and desires (Stewart, 2009). A risk and weakness of Burberry is based on the focus of innovation and culture without considering the risk and the cost of the changing market and external fluctuations. The approach toward a strong market and advertising abilities also carries a variety of risks. This occurs with the stakeholders that are a part of the market as well as the impression that this leaves among those that are working within the school. The weaknesses that are associated with this are furthered with the indirect effect on marketing that may not always have positive aspects of those that are looking at the innovation and culture that is required. The harm that is done is based on stakeholders not being able to work within the given market while those that are looking at the business may not want to invest in the high amount of risk used with the innovation of the company (Smith, Palazzo, 2010). The question which Burberry needs to consider is based on the research and development that is associated with investments to lower risk. Marketing Segmentation The approach which Burberry is using is defined specifically with market segments that are used. The ability to have a specific market segment is first identified with the products that are available. The products are based on luxury items, changing luxury names and new brand items that can be identified. The innovation used with the products can be used to open new lines to provide different alternatives for the company. The marketing segmentation is one which can be further divided by the responses from the culture, specifically with the movement into globalization. The combined marketing approach with online and offline efforts can help to develop the identity of different marketing segments and cultural applications while creating and defining various alternatives to those that are interested in the different products. The 4 P’s Product: The product of Burberry is initially defined by the luxury brand items. However, this has currently expanded into the casual items as well as the items which are not a part of the wardrobe. The products that are expanded in the company offer a strength for marketing segmentation as well as for developing more opportunities for growth. However, this also places higher risks with innovations which may not be as cost effective or which may change the brand identity and reputation of the company. Price: The price of Burberry is based on luxury items, specifically which segments the market into lower portions. This is a weakness of the company that the brand is currently known for. This can be altered by creating the innovative features. However, the opportunity with this is based on the innovations that are able to segment outside of the idea of luxury pricing. Promotion: The promotion of the materials is a strength because of the expansive alternatives that are associated with this. The promotion materials are one which is defined specifically by understanding the online and offline alternatives. This works a strength for the company. This can be expanded by focusing on the innovations as well as presenting the idea of luxury in a different manner. Place: The place with Burberry is currently a strength, specifically because the company has embraced the globalism as a part of the company. This is allowing cultural initiatives to be placed within the different lines. However, there is also the need to maintain the global aspects of the company, which creates a threat because of larger numbers of competition and the need to continue adding in innovation to the company. Recommendations While there are a variety of strengths from Burberry, there also need to be some alterations with the way in which the brand continues to develop. The initiatives that are created are developed specifically with the need to have a sense of accountability toward the changes. There needs to be a balance between the innovation of the products with the current brand reputation. Currently, Burberry is based on growth and development with innovation into an international market. This is being done without considering the risks and problems which may arise as well as the problems that are linked to working within this specific market. This is further being identified with difficulties and problems that are a part of the brand market and the changes which are being made to Burberry. An approach which can be used to lower the risk is to begin to create different lines with expected products. Instead of changing the idea of luxury, there needs to be a separation of different types of items according to segmented markets. If an individual is looking for luxury items, they have the ability of finding the Burberry brand as the main association. However, others that want different levels of casual apparel or other items have the ability to look at other lines that are distinguished from Burberry but associate with the same level of identity. By doing this, there is the ability to create and establish the understanding of the products while developing a stronger understanding of what is readily available for the markets and the expectations that are associated with this. The products and the apparel then have the ability to remain segmented for different individuals without taking a high risk with the innovations that are associated with the company. References Burberry. (2012). “About Burberry.” Retrieved from: http://us.burberry.com/store/corporate/corporate-responsibility/. Falkernreck, C, R Wagner. 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