Strategic Marketing of Med Thau Maree SAS Company - Case Study Example

Burberry Case Study of the Table of Contents Introduction 3 Question 3 Burberry’s perception in market 3 Present and past image comparison of Burberry 3 Question 2 4 CEO Perspective: Challenges Faced 4 Question 3 5 Negative Impacts of Outsourcing in Blueberry 5 “Made in Britain” Label in Keeping Luxury Status 5 Question 4 6 Operational and Marketing Changes in Burberry 6 Future Impacts of Burberry’s actions on its market position 6 Conclusion 7 Reference 8 Introduction Burberry today happens to be a competing brand in the personal luxury market and particularly in the global apparels, accessories and luxury goods market which combines attires, jewelleries, watches, leather commodities and cosmetics. Revenues of the company are gradually increasing and it positioned itself to be a market leader. It has a luxury status with a quality image and is renowned among people as the top apparel brand (Jarosinski, 2014). The objective of the study is to analyze Burberrys position in the market and to compare the present image of the company with its past. The aim is to analyze the challenges faced by the company’s CEO and the factors that need to be focused on to address them. Whether outsourcing production have a serious negative impact on the organization or not and the criticality of made in Britain label in keeping luxury status of an organization is reflected upon (Jarosinski, 2014). In addition, the organizational and marketing changes that can be made by Burberry will be discussed in details. Lastly, the potential future impacts of company’s actions will be discussed. Question 1 Burberry’s perception in market Burberry is a British luxury apparels brand and its clothing stores are selling business to consumer shopping goods. The brand has an established reputation and name. Burberry has the strongest association in its trench coats and winter collections. Luxury customers identify the brand for its classic English fashion and for its brand Ambassador Emma Watson. Burberry is perceived in the market as the most renowned fashion apparel brand and for its unmatched quality of products. The product life cycle of the brand is in its growth stage as Burberry’s revenue and profits are growing increasingly and they are innovating and adding fashion in each season. The brand is perceived to penetrate deep into the US market and their revenue generation from US is at the highest point. The market share of Burberry is mounting every year depicting its increased favorability among customers and sales. Present and past image comparison of Burberry In the first decade of 2000’s Burberry was living in a nightmare of brand perception. In those days people of Britain started associating the 156 years old brand Burberry with the chavs, which is a particular tribe of teenagers in Britain that used to put on caps of Burberry as a uniform. Chavs were considered as the most stereotyped class of people in UK (Jarosinski, 2014). Those people were considered as low class, deprived of education, heavy drinkers and drug addicts. Perception of the brand those days was totally spoiled for which Burberry had to eliminate baseball caps from sale. They even had to limit the visibility of the brands distinguishing pattern. In the recent years Burberry strongly gripped control over their brand communication and the company is finally trailing its connection to chavs imagery. This progress took place step by step for years. Burberry now-a-days is not just a high quality fashion brand, it is also emerging as a booming multimedia company. They not only manufacture superior quality fashion apparels but are also raising public interest and bringing to use the social media for attracting and engaging huge customers (Jarosinski, 2014). With live streams and innovative appealing websites Burberry is reaching to millions of its new fans and reaching to a large global audience. Question 2 CEO Perspective: Challenges Faced As the new CEO, the biggest challenges which require to be focused on are as follows: The biggest challenge faced by the renowned brand like Burberry is the current slowdown in the luxury market. China encountered slow economic growth and political instability which resulted to the clampdown in spending which drastically affected the luxury goods market. Burberrys focus is on controlling rapid expansion plans to strive in the terrible economic conditions. Burberrys Profit margins reduced due to the impact of unfavorable interest rates. Also the renowned brand is facing tough competition from the new designers that are emerging in the market. For continuing their revenue growth, Burberry needs to focus on their innovative strategies in manufacturing luxury goods. In this era of globalization, Burberry is found to lose focus on expanding its business globally. In the global marketplace they used to sell goods such as dog coats and leashes. Initially, these products did not have any problems but all together they did not prove to be much compelling to their customers. Now its focus is on establishing a global strategy and to centralize on all its design to compete against its rivals. Question 3 Negative Impacts of Outsourcing in Blueberry As the world is becoming globalised, the quality of production in many outsourced factories is enhanced but outsourcing production still comes with many negative impacts on Burberry. In case of luxury market, outsourcing has a negative impact on the company’s brand image .Outsourcing production has the potential to kill Burberrys legitimacy and believability. It provided competitive advantages to the company in early stages of its adaptation by Burberry but later it came with many disadvantages. Consumers started believing that producing goods in a lower cost country does not validate the high prices of the products of Burberry anymore. The quality of the products was questioned when the production of Burberry was outsourced. This is the reason Burberry moved only its accessories’ and low prized products production overseas and kept its high prized goods in reputed countries. Burberry combined the need of competitiveness, its British tradition and status by outsourcing few of its operations overseas while ensuring elevated standards of corporate social responsibility from suppliers. “Made in Britain” Label in Keeping Luxury Status The “Made in Britain” label is considered critical in keeping the luxury status of Burberry. This label is one of the most influential associations and declaration a brand could leverage. This depicts the association of Burberry with the countries heritage, tradition and exclusivity. The British products have a great demand all over the world and so Burberry used the label as its marketing strategy. An era of products that emerged in Britain became brands such as twinning’s tea, Cadbury, Laura Ashley’s apparels and many more. With this, “Made in Britain” label generated its value and people all over the world perceived that products emerging from the country are of superior quality. London emerged as a fashion capital of the world and people all over the world desired to follow its fashion. Using the label resulted to the success of Burberry and people preferred to buy its products perceiving it to be a superior brand manufacturing high quality products. The label serves to be a critical component of the luxury brands like Burberry which desires to carry a royal warrant and endorse its pedigree and quality. Question 4 Operational and Marketing Changes in Burberry Burberry can implement various strategies for making operational and marketing changes in order to sustain the competitive global market and to ensure that their business strategy is aligned with the image that the brand wants to project. Burberry requires splitting its products among the product lines such as prorsum, womenswear, menswear and accessories (Jarosinski, 2014). They also need to assure that their product lines are appropriate for their strategies to go forward. Burberry needs to expand its business to children’s line as the loyal customers of the brand would desire their kids to follow their favorite fashion brand. Burberry recently launched their new website and extended their luxury leadership position in the public media. They require building strategies for renovating their fashion shows in order to digitize their brand and implement new technologies to enhance their communication channels. These marketing changes can be implemented by Burberry for gaining a competitive advantage. The brand needs to develop its global franchisee and implement new formats of apparels and expand its display places. They need to optimize the potential of their beauty division and relocate their resources to ensure growth. A multichannel distribution strategy needs to be implemented by Burberry consisting retail, whole selling and licensing for reaching its products to a large number of its customers. Future Impacts of Burberry’s actions on its market position Burberrys competitive strategies are expected to deliver suitable results in the long run. By making people aware of the brand through social media it will penetrate more in the accessory and the apparels market while remaining a luxury product. Burberry will be able to position itself between its competitor brands such as Prada and Gucci through its digital strategy . The company by implementing the growth strategies such as expanding its product lines will be able to reposition its brand and its sales will hike by introducing new logo and packaging. These modernisms are likely to attract the young customers while preserving its core customer foundation. The decision of expanding its line for making children apparels will be successful and profitable for Burberry. In future, the brand will show that luxury is in demand by its increased sales. The fashion retailer’s shares will rise and generate it high revenues in the upcoming years as a result of its efficient leadership approaches. Conclusion Though Burberry had enjoyed enhanced growth over many years, the sales expansion was not at par with the expansion observed in the personal luxury industry. Big changes arrived within Burberry with excellent leadership and it became a renowned fashion brand. Various challenges faced by the brand forced it to make efforts to transform its business in order to lucratively adapt to the vibrant and innovative global environment of the luxury industry. The negative impacts of outsourcing needs a keen focus and such issues needs to be addressed. By implementing various strategic brand decisions, Burberry will be successful to keep a hold of its luxury status and recover its profit margins. Reference Jarosinski, M. (2014). Burberry. Ivery Publishing, 28(4), 1-16. Read More