Burberry Plc Marketing
Burberry Plc Marketing
Introduction
Burberry Plc is a leading fashion house with its headquarters in London England. The company is involved in distributing of clothing, fashion accessories, cosmetics, sunglasses and fragrances just to mention a few. The company has been operational since 1856 and has several branded stores in different parts of the world (Richter, 2012). The company has realized a lot over the years which has led to it being listed in the stock market and has also been granted Royal Warrants by Queen Elizabeth II and the prince of Wales. The great success achieved by the company can be attributed to the best marketing strategies adopted by the firm.
Discussion
Segmentation has been one of the most important marketing tools employed by the company. This is a process by which an organization aggregates its prospective buyers into groups that have common needs and are likely to respond in a similar manner towards a certain marketing action. In order to have an effective segmentation exercise, it is important to putt in consideration several criteria that are critical in fulfilling this purpose. Homogeneity in consumers’ needs, distinction of group and their reaction to the market is essential in coming up with the effective segmentation strategy. The segmentation process can be demographic, behavioral, geographic or psychographic and the choice solely lies with the firms marketing department (Stephenson, 2005).
Burberry Plc intends to have Italy as its target segment. This form of segmentation is referred to as geographic segmentation. Under this kind of segmentation occurs when potential consumers are divided according to their location. It occurs as a result of aggregating markets according to different geographic units such as continents, countries and regions. In order to have an effective segmentation exercise, it is important to have a proper understanding of the different cultures among the different countries. It is also important to note that Burberry has a variety of products that provide services to people of ages and gender.
The reason why this kind of segmentation is considered a success is the fact that the potential market is likely to lead to tremendous increase in sales. This is because the Italians are known to be very conscious to fashions and related products. The fashion industry in the major cities in Italy has been thriving well and thus Burberry is hoping to capitalize on this advantage to increase on sales. Burberry is hoping to take advantage of the great sensitivity of fashions especially in Milan where it is taken as the fashion capital. The fashion company has a variety of fashions and jewelries that are suitable for all people regardless of their ages and gender.
Italy is also known to be a habitat for different people since many people have left their country of origin to settle in Italy. This has made Italy to become home of French, Italians, Greeks, Arabs and Albanians. The ability of the country to host different people with different culture has made it a suitable and profitable market for the Burberry fashions and fragrances. This is because the company has a variety and thus the different cultural groups can have their taste from the company’s stores. The country enjoys a massive population of natives and foreigners thus making it a noble market for the company (Johnson, 2004).
After identifying the target segment, it is important to identify the correct positioning of the firms product. The process of positioning is closely related segmentation and involves ensuring that the product in question is presented to the potential consumers in the best possible way. The product in question must be strategically located to ensure that sales and profits are maximized. Burberry Plc intends to have several branded stores in major cities in Italy with the largest concentration being in Milan. This is because there are several boutiques and fashion outlets in this city and thus consumes will have variety to choose from. The cities also boast of different cultures and massive population which are critical in providing abundant market for these products. The product will also be positioned in other major cities and towns where there lively economic progress (Lamb, Hair & McDaniel, 2012).
Burberry Plc can only venture in the Italian market either through foreign direct investment or through exporting their products. In order to make an informed and wise decision, it is important to understand how the two aspects will affect the overall profitability of the company. For instance, FDI can be instrumental for the Burberry Plc in its attempts to meet the shifting local demand more quickly thus leading to increased profits. On the other hand, FDI requires that the company will use local inputs which can be detrimental in terms of competition with the local firms. Use of FDI can only be recommended when the demand uncertainty is greater than the cost uncertainty. However, it is important to note that penetrating the market through exports can also be harmful to the company (Richter, 2012). This is because of the many restrictions and tariffs involved in foreign trade. It is for this reason that it is advisable for the company to combine both strategies to ensure that the profits are maximized.
References
Sandhusen, R., 2000. Marketing (3rd ed.). Hauppauge, N.Y.: Barron’s.
Saren, M., 2007. Critical marketing defining the field. Amsterdam: Butterworth-Heinemann.
Stephenson, R., 2005. Marketing planning for financial services. Aldershot, Hants, England: Gower.
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