Marketing Plan For Burberry For Expansion in India in The Next 12 Months

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Marketing Plan for Burberry for Expansion in India

in the Next 12 Months

To: CEO of Burberry in India


From: The Digital Marketing manager
Date: 18.08.2021

Full Name:
ID Number:
Contents

Executive Summary...................................................................................................................3

01. Introduction.....................................................................................................................4

02. Situational Analysis........................................................................................................5

2.1 SWOT Analysis................................................................................................................5

2.1.1 Strengths....................................................................................................................5

2.1.2 Weaknesses................................................................................................................6

2.1.3 Opportunities.............................................................................................................6

2.1.4 Threats.......................................................................................................................6

2.2 PESTEL Analysis.............................................................................................................7

2.2.1 Political Factors.........................................................................................................7

2.2.2 Economic Factors......................................................................................................7

2.2.3 Social Factors.............................................................................................................7

2.2.4 Technological Factors................................................................................................7

2.2.5 Environmental factors................................................................................................8

2.2.6 Legal Factors..............................................................................................................8

2.3 Five Forces Analysis...................................................................................................8

2.3.1 Threats of New Entry – Low.....................................................................................8

2.3.2 Bargaining power for the suppliers –Low to Medium...............................................8

2.3.3 Bargaining power of buyers – High...........................................................................8

2.3.4 Threats for Substitutes – Low to Medium.................................................................9

2.3.5 Rivalry within exiting competitors – High................................................................9

03. Marketing Objectives......................................................................................................9

04. STP Process...................................................................................................................10

4.1 Segmenting................................................................................................................10

4.1.1 Demographic Segmentation........................................................................................10

4.1.2 Geographical segmentation......................................................................................10

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4.2 Targeting....................................................................................................................11

4.3 Positioning.................................................................................................................11

4.3.1 Perceptual mapping..................................................................................................11

4.2 Positioning Statement.................................................................................................12

05. Marketing Mix...................................................................................................................12

5.1 Product............................................................................................................................13

5.2 Price................................................................................................................................13

5.3 Place...............................................................................................................................13

5.4 Promotion.......................................................................................................................14

06. Marketing controls........................................................................................................16

6.1 Monthly control..............................................................................................................16

6.2 Quarterly Control............................................................................................................17

07. Conclusion.....................................................................................................................17

References................................................................................................................................17

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Executive Summary

In here presenting the marketing plan for Burberry for expansion in India in the next 12
months. Today digital media can be considered as an essential piece of the business
marketing strategy in any kind of organization. Advancement of technology and the growing
importance of various digital platforms and the high acceptance of luxury products via e
commerce sites the can be identified as the strategy of the brand on ongoing digital is in line
with other players in the market. Without any arguments it helps to link to the existing and
potential customers, enhance the brand awareness and enhance the sales and the leads. And
especially with the COVID 19 pandemic situation, customers are more tend for the digital
media and this trend will continue in future too. Hence the Burberry also essentially need to
adjust their strategic plan accordingly by special focusing on digitalized media. Otherwise
they will not be able to survive in the market. In case of that several objective have been set
up for the Burberry for next 12 months with the purpose of increasing digital market share,
enhancing the brand awareness and brand engagement, increasing the sales revenue,
motivating the online purchasing. To accomplish these objectives, this marketing plan has
been designed with an industrial and situational analysis. In there, mainly focus the
increasing digital awareness on the brand, digital market share increasing, online purchase
motivating and promoting social media network. This report presents full marketing effort
that Burberry should take to be success in digital market place.

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01.Introduction

Thomas Burberry has been introduced the brand Burberry in 1856. Today it has been
recognized as international luxury brand. Currently brand is engaged with women and men’s
wear, shoes, accessories, bags, children’s wear, fragrance and beauty, house and home goods.
Mainly it sell though three channels of retail, licensing and whole selling. Headquarters of
Burberry still located in London, England. And currently it owned boutiques are located in 48
countries all over the world. The ultimate purpose of this company is to be identified that its
excellence in operations of its luxury products as much as possible. Burberry can be
identified as a very special brand since it is with great longer history and paying their
attention on the quality of each level in creating, producing and distributing (Murphy, 2020).
It has ranked 97th inter brand best global brands in 2020.

No need to separate introduction to Burberry India, it also offer a vast variant of products for
the Indians who willing to build their personality for goods. The most classic products lines
are Burberry clothing and Burberry bags in there. Burberry India is with everything that was
made under Burberry with the best quality and top of line designs (darveys.com, 2019).

02.Situational Analysis

Burberry India has been strategically analyzed by using SWOT, PESTEL and Five forces
analysis techniques.

2.1 SWOT Analysis

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2.1.1 Strengths

 Brand Value – Burberry is with over 156 years of experience. The brand Burberry
has a value as a long lasing high quality clothing supplier.
 Focused marketing has paid the attention brand recall and high market
retention – they are no using TV advertisements, mainly they are promoted through
blogs, magazines, and celebrity endorsements by addressing focused market.
 Renovation of Brand – Burberry has got great choices in terms of accelerating and
renovating their brand. It has begun with fashionable apparel along with the standard
items.
 Royal Brand – Burberry has got the royal brand and it gets great significance to the
company.
 In addition to above there are some more strengths such as higher quality products,
strong social media platform, and huge amount of cultural awareness and ahead of
competitors from the digital innovations (Bhasin, 2021).
2.1.2 Weaknesses

 Premium price range – Prices are not affordable as they are much expensive.
 Limited products – Burberry is with limited products categories apparels, make up
items and cosmetics
 Highly depend on Asian market – Large portion of the income come from the Asian
market.
 Further to above, low turnover, low efficiency, week interaction with the social media
customer can be noted as the weaknesses (swotandpestle.com, 2021).
2.1.3 Opportunities

 Changing Lifestyles – with the developed economies most of the nations’ tastes,
desires and awareness and the buying habits have been changed towards premium
products.
 Developing emerging nations – can be combined with developing nations such as
Thailand, Mongolia, Turkey and Egypt as developed countries are much more
compatible.
 Increasing demand for the premium goods – In Indian market, there is a 33% of
growth rate in demand of premium products.

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 And also, growing demand for handmade products, strong growth in men’s
accessories in China can be identified as opportunities (Bhasin, 2021).
2.1.4 Threats

 Higher competition – huge competition is there from the brands such as Gucci,
Versace and Prada.
 Chinese brands – Most of the Burberry products have been imitated by China
 COVID 19 pandemic – Current situation has led to a lessor focus on products such
as apparel, cosmetics and make up items
 Government policies – Indirectly and indirectly affect the government policies
 Moreover fast developing young brands, growing quality of counterfeit products,
economic slowdown in China and Russia can be identified as the threats for Burberry
(swotandpestle.com, 2021).
2.2 PESTEL Analysis

2.2.1 Political Factors

 Tax Rates – higher tax rates for the foreign goods may lead to increase the cost and
reduce the profitability
 Government legislation - There is a huge impact of government legislation on
apparel manufacturers (totalassignmenthelp.com, totalassignmenthelp.com, 2021)
2.2.2 Economic Factors

 Exchange rate – Burberry highly impacted in the rapidly changing exchange rate in
India, greater fluctuation is there.
 Decrease the tourism – with the COVID 19 pandemic tourism attraction has been
reduced and most of the tourist buy these products when they visit India on their
vacations (mbaskool.com, 2021).
2.2.3 Social Factors

 Potential customers - Burberry is a premium brand and they have noticed that
customers are from upper middle class ones in India. Hence they have developed
separate product categories to cater that segment.
 Indian Culture - Especially India is with strong culture and Burberry need to satisfy
their needs, especially in terms of dress code and purchasing pattern.

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 Aging Population – India is with higher population and it’s coming up with vast
range of opportunities (totalassignmenthelp.com, totalassignmenthelp.com, 2021)
2.2.4 Technological Factors

 In-house system and software – Burberry is developing and researching on in house


system and software continuously.
 Digital Data – using the digital data to identify the new trends and supports to cater
better customer segment
 Social media – Different social media platforms are used to improve the sales,
number of customer, stay beyond the competition as well as their brand image.
 Online shopping – Indians can shopping online from the Burberry. They could be
able to cater separate customer range with this (mbaskool.com, 2021).
2.2.5 Environmental factors

 Sustainable targets – Burberry dealing with sustainable targets to be achieved in


future
 Carbon emission – Burberry is planning to reduce their carbon fruit print in India
within their operations. 95% of reduction in their direct operations in 2022 while
panning to reduce 30% through their supply chain in 2030 (mbaskool.com, 2021).
2.2.6 Legal Factors

 Labor laws and employment laws – Burberry has to obey for the country
regulations on labor law and employment laws.
 Ethical Audits – in 2016, they have carried out 1000 ethical audits to ensure the
integrity.
 In addition to above all the Indian country rule and regulations should be followed by
Burberry (totalassignmenthelp.com, totalassignmenthelp.com, 2021).
2.3 Five Forces Analysis

2.3.1 Threats of New Entry – Low

Threats of new entrants are law since the technological advancement and advancement of
cost are really high. Burberry is with cost advantages.

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2.3.2 Bargaining power for the suppliers –Low to Medium
For a luxury product essentially there should be more suppliers when it compares with the
number of current suppliers. It support to delivering of raw materials without any failures.

2.3.3 Bargaining power of buyers – High


Customer can affect for the price of the Burberry since there is a huge competition in the
market place to the luxury brands. Customer can easily switch in to another brand such as
Gucci, Prada.

2.3.4 Threats for Substitutes – Low to Medium

Fashionable cloths are imitable and lot Chinese counterfeits are there for Burberry. But
normally threats of substitute is perceived as low as there is a huge switching cost for a
luxury brand. Therefore it vary in between low to medium.

2.3.5 Rivalry within exiting competitors – High

Armani, Polo and Gucci are the main competitors of Burberry. Polo consists with high share
of market, while having lower value. Gucci is with higher competitive advantages when
compares to other.

Figure 2.1 Five forces analysis

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Source: (totalassignmenthelp.com, 2021)

03.Marketing Objectives

Below marketing objectives are suggested to achieve the ultimate targets of Burberry.

 To increase the revenue by 5% as 1% from offline retailing and rest of the 4% from
online selling in 2021/22.
 Launching a video game by mid of May in terms of increasing the crowd that are
engaged with Burberry. Try to increase the existing customer base by 5% through
this.
 To give the 5% of discounts for online transactions by getting together with local
banks for the festive season
 To offer redeemable points for each and every online purchasing with the purpose of
increasing sale volume.
 To promote the brand in social media platforms like Facebook, Instagram and
LinkedIn by connecting with trendy news per week with the purpose of enhancing
brad awareness.
 In India, luxury fashion item market is expected to grow by 11.32% (2021-2025)
(statista.com, 2021) and Burberry planning to increase their market share by 10% year
end with the purpose of increasing market share.

04.STP Process

4.1 Segmenting

As a luxury fashion product company, Burberry has identified that importance of segmenting
the market. Indian market can be segmented as below.

4.1.1 Demographic Segmentation

Burberry has to differentiate their products as target customers can identify. Normally
Burberry products are expensive and they target high income people who are in between 19
to 35 year old people. And both the men and women with any race will be targeted. India is
with multi-cultural country with so many race and ethnicities. All of them can be targeted,
especially professionals, high end entrepreneurs, actors and actresses, business people and
senior executives will be consisted with this segment. They can offer two different brands
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from this segment as Burberry with black label and Burberry with blue label (Adjmi, 2013).
These are differed as tight, loose and tight fit.

4.1.2 Geographical segmentation

India is the biggest Asian country when it compared to other Asian countries. Hence it is with
huge geographical diversity. Hence freely Burberry can target state such as Delhi, Mumbai,
and Bangalore as the base for their segmenting. Separate brand endorsers can be used for
each segment.

4.2 Targeting

As mentioned in first Burberry India will target who are in 19-35 years age group. And the
target group is basically represents the customers who spend luxury life style by using luxury
product items. Normally the customers who unwilling to swift to any other brand and stick
for a particular brand will be targeted by Burberry as it’s a high end value brand. And also
rich people who are more engaged with digital platforms will also be targeted.

4.3 Positioning

4.3.1 Perceptual mapping

When it comes to positioning, Burberry can get an idea through perceptual maps. The
fashionable luxury products market can be set in a perceptual map according to the
fashionable and expensiveness as in below.
Most Fashion

Least Most
Expensive Expensive

Least Fashion 11 | P a g e
And the same time Burberry can be mapped according to iconic, classic, understated and
contemporary by comparing other competitive brand as in below.

Iconic

Contemporary Classic

Understated

Above two maps witness for the position that Burberry is held as a brand. By based on that,
positioning statement for the Burberry India can be denoted as below.

4.2 Positioning Statement

“For the young and young at heart, Burberry is the adorable apparel manufacturer that best
delivers on an quality and classy look because Burberry and only Burberry is providing
complete mind, body and soul experience as the premier fashion”.

05. Marketing Mix

Burberry can be recognised as a leading


luxurious fashion product. Burberry have a range
of outerwear and other fashion designing items
for man and women. Currently company is

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planning to expand their operations in India over the next 12 months. When analysing the
marketing and communication tactics we can identified that the company is concentrating
on both the digital and non- digital marketing tactics. Generally, the marketing mix is
mainly concerned with the 4Ps of product, price, place and the promotion. In digital
marketing mix context, it mainly concentrated and focuses on the 4Ps in the digital context
(Blumble, 2021).
a. Very good in SEO
b. Content Marketing
c. In addition to this they can also look at magazine advertising, Ex: Vouge
d. They are also can-do sponsorships Ex: fashion shows, event marketing
e. Consumer promotions Ex: In-store promotions and online promotions like bundle promotions
f. Visual merchandising Ex: how you lay out the products
i. When you mention these, you need to mention why you’re going to use it, how you’re going to use it

5.1 Product

Product can be identified as the main component of the marketing mix. This denotes the
item that the business is planning to be promoting. This is the product that the company is
offering to the market. This needs to be fulfill existing customer demand or the business
have the chance and believe that the company have the capability of creating a new demand
for the product that they offer to the market (Twin & Anderson, 2021). When analyzing the
Burberry product range, we can identify that the company is offering a range of luxurious
product range including the children, women and men’ s outerwear clothing, bags, scarves,
accessories, shoes, fragrances, gift items and related designing. Throughout the history
company was able to deliver quality luxurious products and they have developed their
brand over the time.

5.2 Price

Price can be identified as one of the main concerns of the customer. Price is an income for
the business while its s a cost to the consumers. With this the marketing management of the
company is required to be set a price by considering the real and the perceived values. This
needs to be set with the concentration of organizational cost of supplying, seasonal
discounts, market competition and the perceived value to the customer (Twin & Anderson,
2021). Businesses have the capability of adapting the market penetration or the market
skimming strategies. Here with the nature of offering a luxurious product range to the
customers Burberry is focusing on to the market skimming strategy in the product pricing.
g. Very good in SEO
h. Content Marketing
i. In addition to this they can also look at magazine advertising, Ex: Vouge
j. They are also can-do sponsorships Ex: fashion shows, event marketing
k. Consumer promotions Ex: In-store promotions and online promotions like bundle promotions
l. Visual merchandising Ex: how you lay out the products
i. When you mention these, you need to mention why you’re going to use it, how you’re going to use it

5.3 Place

Place can be identified as the space where the product is going to place or this indicate the
place where the product or the service is selling to the customers. This mainly focuses on

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all the forms of physical displays, stores or the digital content such as the television shows,
websites and other online platforms by facilitating customers to get their purchases done
(Twin & Anderson, 2021).

In Burberry they are using both the digital and physical marketing places. Company has a
website which comprising all the relevant data and act as a online market place by
displaying all the required data and information to the customers with the indication of the
images and the photographs of the products. With the placement of these things in the
internet more people have the chance of access to their virtual shopping malls with the
website contents. Company is very good in social media with the sharing content and
sharing information related to the shop and their products. Further with the developments in
the information technology it had increase the online searching and content sharing.
Company use lot of bloggers like lifestyle bloggers, fitness bloggers to share the contents of
the shop. With the attractive website company is able to share all the details including the
company products and management related things which are needed to be published. In the
website they have shown all the details related to the products together with respective
prices. People have the chance of doing online purchases. Company is having the physical
locations which facilitates customers to visit and get connected with the people.

5.4 Promotion

Promotion can be recognized as the marketing methodology that the business is adapted to
bring their product or services to their customers. This includes the advertising, public
relationship building and the promotional strategy. Business entities are conducting the
promotional activities with the purpose of revealing the customers the purpose and the
importance of the purchasing decision. Business marketing management people are
focusing on to the promotion and the placement elements together as the have the capability
of reaching the core audiences. The place and the promotion activities are the mainly much
with the online platforms. Today in this digital era the products and the services are place in
the mainly marketed with the company web pages and the social media networks (Twin &
Anderson, 2021).

In the company marketing tactics, they are using the good and attractive social media
campaigns, lot of bloggers like lifestyle bloggers, fitness bloggers. Further company is
maintaining a very good website and have a good content of online videos, particularly
YouTube. In the contemporary society people are keener on the technological adaptation

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and the social media content. With the adaptation of such things the have the capability of
attracting more customers. With the influencer marketing tactics which are not limited to
the celebrities and they have strong opinion leaders.

Company is focusing on to the content marketing with the detail sharing. With the
publications in magazines, they have the capability of attract more corporate customers.
Japan and Indian people read a lot of newspapers compared to other countries with these
they have the capability of attracting more.
When the website usage the search engine optimization or the SEO is much crucial thing
that needs to be concentrated on. Company is adapting various steps to enhance the search
engine optimization. It is the technique of obtaining visitors through search engines' free,
organic, editorial, or natural search results. Simply said, it's the term for any operation
aimed at improving search engine ranks. It's essentially website quality control in many
ways. Image search, local search, video search, and news search engines are all examples of
search engines that SEO can target. A solid SEO plan can assist you in effectively
positioning your website to be seen at the most essential stages in the buying process or
when customers require your services.
When analyzing the organizational promotional strategies, we can identify that the
company is more focusing on to the building awareness through the information sharing,
making interest with the advertisements, creating desire and action in the customers.

Throughout the promotional campaigns company is concentrated on the digital marketing


tactics and they are focusing on the following steps (Figure 5.1),

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Figure 5.1 Digital marketing tactics

Awareness:

Building awareness is a crucial thing in the marketing. When company is marketing or


introducing a new product to a market, the target customer segment needs to have enough
knowledge and understanding on the company and their products. This is mainly done
through the information sharing with various modes. In Burberry Company is sharing this
information with the people via the websites, blogs and the emails. Through these platforms
like websites, they have the chance of sharing all the details about the company and history,
product ranges etc. With the use of blog company have the capability of conveying their
details and knowledge to the people, customer experiences sharing, virtual rides, etc. With
these things they have the capability of sharing the information and get people aware.

Interest:

With the detail information sharing people get aware. With the conduct of advertisement
and the promotional campaigns such as the attractive advertisements in Facebook and
boosting the ads and posts it have the capability of increasing the reaches to the company
products. With this they have the capability of increasing the reaches and do the tasks.

Desire:

With the creating of interest, it is important to develop the desire for the purchasing
decision. Organization is focusing on the marketing tactics via the YouTube video sharing,
virtual rides, Instagram and LinkedIn sharing contents.

Action:

Company is directing and leading the customers towards the purchasing decisions.

With these things we can identified that the company have the capability of developing the
company brand and enhancing the company market share.

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06.Marketing controls

6.1 Monthly control

Efficiency control – monthly checking spent marketing expenditure has been impact to
improve the spending efficiency. This can be done by looking at monthly sales, advertising,
sales promotion and distribution cost.

Profitability control - monthly basis Burberry can look into where they are earning money
and where they are losing money. This can done by looking at product, customers, segments,
territory, trade channels and order sizes.

6.2 Quarterly Control

Strategic control – in here Burberry should decide whether the business follows the best
option with regards to products, markets and the channels. This can be done through
marketing audits, marketing excellence review, marketing effectiveness rating instruments
and company ethical and social responsibility review.

Quarterly plan control – determine whether the planned marketing results and expectations
are met. For that sales analysis, market share analysis, financial analysis, market based
analysis and sales to expense ratio analysis can be done.

07.Conclusion

Report is consisted with marketing plan for Burberry India to next 12 months. Situational and
industrial analysis has been conducted by using SWOT, PESTEL and five forces analysis.
Then the objectives have been derived in order to support for achieving organizational goals.
Further STP process with respect to Burberry has been elaborate. Then marketing mix has
been discussed with relevant to both digital and offline markets. Lately marketing controls
has been expanded, quarterly and monthly basis.

References

Adjmi, A. (2013, 12). Retrieved from adjmi95.blogspot.com:


http://adjmi95.blogspot.com/2013/12/chapter-8-segmenting-and-targeting.html

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Bhasin, H. (2021). Retrieved from marketing91.com: https://www.marketing91.com/swot-
analysis-of-burberry/

Blumble. (2021, 8 18). Digital marketing Mix. Retrieved 8 18, 2021, from
http://www.marketingteacher.com/digital-marketing-mix/

darveys.com. (2019, 06 25). Retrieved from https://www.darveys.com/blog/burberry-india-


quintessential-luxurious-designs/

mbaskool.com. (2021). Retrieved from


https://www.mbaskool.com/pestle-analysis/companies/18026-burberry.html

Murphy, K. (2020). Retrieved from eatlovesavor.com: https://www.eatlovesavor.com/the-


history-heritage-and-quality-of-the-luxury-brand-burberry/#:~:text=Thomas
%20Burberry%20founded%20the%20brand,was%20introduced%20in%20the
%201920's.

statista.com. (2021). Retrieved from


https://www.statista.com/outlook/cmo/luxury-goods/luxury-fashion/india

swotandpestle.com. (2021). Retrieved from https://www.swotandpestle.com/burberry-group/

totalassignmenthelp.com. (2021). Retrieved from totalassignmenthelp.com:


https://www.totalassignmenthelp.com/free-sample/discussion-and-evaluation-of-
burberry-pestle-analysis

totalassignmenthelp.com. (2021). Retrieved from https://www.totalassignmenthelp.com/free-


sample/discussion-and-evaluation-of-burberry-pestle-analysis

Twin, A., & Anderson, S. (2021, 7 21). The 4 Ps. Retrieved 8 18, 2021, from
https://www.investopedia.com/terms/f/four-ps.asp

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