Burberry Market Performance - Essay Example

It establishes a competitive market advantage by molding products that adopt continuity and flexibility to changes in fashion. Hence, it becomes the product of choice at all times. When Burberry introduced a check pattern of camel, black, red, and white plaid design as lining, the pattern soon became the signature trademark for politicians, adventurers, and celebrities. The company’s marketing strategy is superb with adverts featuring models and beautiful landscapes that boost its sales turnover. Indeed, Burberry's Brand growth rate occupies the fourth position among the fastest-growing brands. Moreover, Burberry offers product diversity in menswear, women's wear, and accessories of all ages. This gives the company a product mix that accords a higher edge over its competitors which include Coach, Polo, Armani, and Gucci. Because of these factors, the brand gained recognition and received the Contemporary Design Collection of the Year award and the Classic Design Collection of the Year award (Jackson and Shaw, 72-81).

Burberry competitors have relatively placed themselves in the market. Coach offers accessories like watches, dollar dogs, and shoes as well as handbags as its main product. Considerably, Coach offers accessories at a cheaper price and holds about 6% of the accessories share in the market. It is thus more accessible and affordable to the general population than the Burberry brand. Armani maintains a strong market position in apparel. However, it falls below Burberry in the global luxury goods market. On the other hand, Polo’s market position specializes in clothing. It has significant brand equity and is quite famous in the market. Polo offers lower prices than Burberry, dominates the apparel market share, and comes second in the top luxury brands. Gucci establishes a market position in luxury accessories. It has a significant market share, about 12% of the accessory market share becoming the highest-priced brand for accessories (Jackson and Shaw, 72-81). It is arguably true that Burberry products are relevantly more expensive than those of its competitors. This lowers Burberry market position on certain products like accessories and clothing. The long-term competitive market positioning of Burberry is guaranteed and sustainable. Its success over its competitors in the market proves its goodwill and possible going concern. Indeed, the Burberry brand has significant stakes in the accessory and apparel market as well as remaining a luxury good. The diverse lines of products, functional luxury, availability in the market, marketing skills, and service to all genders and ages, places Burberry in the best competitive position that guarantees sustainability in the long run.

The role of the check is a matter of concern as far as Burberry is concerned. The use of the signature check design should not face more restrictions. Indeed, the current product mix manifests 60% of the check and 40% with the check used subtly (Jackson and Shaw, 72-81). The current user volume should remain. Burberry should maintain a check on apparel items and a no check on accessories. This would enable continuity in expanding the new product line, establishing of the Burberry brand position, and promoting the luxury and quality of the product. The Burberry brand customers identify with it in coat linings, perfumes, handbags, and apparel. This unique identity helps in accommodating product diversity in all age groups about the same brand, Burberry. This creates a competitive advantage over its competitors and thus any more restrictions to the use of the signature check would demean Burberry's market position. Similarly, throughout the many changes in Burberry products, the signature check has been constant and withstood all challenges to remain an effective and distinguishing character of Burberry products. It has beneficially served the company throughout its existence. As such, the status quo concerning the Burberry signature check should remain to the advantage of the company and the convenience of the customers. Additionally, the signature check enjoys international recognition and forms the history of the Burberry brand (Jackson and Shaw, 72-81). As such, it is very significant to the customers and any more restrictions on it would only jeopardize the market position of the brand. Additionally, the customers of Burberry vary from design aspects to name aspects. The customer whose concern is the name of the brand considerably relates to the signature check design for purposes of purchase and showing off (Jackson and Shaw, 72-81). Thus, the check has a significant contribution to the direct sales of Burberry products hence, should not be restricted. In conclusion, I recommend no more restraining on the signature check as it is relevantly significant to both Burberry customers and the brand itself.