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Introduction to marketing - Burberry

Extracts from this document...

Introduction

I have developed an interest in a new product recently launched by an existing company. Burberry is a luxury brand with international acknowledgment and broad appeal. The company does designing, manufacturing, sourcing and distributing high-quality apparel and accessories. Burberry was founded in 1856 when 21 years old Thomas Burberry, a former beginner to a country draper, opened an outfitters shop in Basingstoke, Hampshire, England. From the founding, the company has set up a reputation for innovation, quality and style through invention of gabardine, which was the world's first weatherproof and breathable fabric. In 1891, Thomas Burberry opened his first shop in London at the Haymarket, in nowadays, the site of Burberry's corporate showrooms. Since 1900s, Burberry began to expand internationally; New York was the first place to start the expanding. Today, the company sells the products in Europe, North America and Asia through its own directly stores. From 1st June 2002, it operates sixty stores and ten connections. From the report in 2003, the company estimates that the total retail value of products sold globally under the Burberry brand is around �2 billion. The products include apparel for women, men and children and accessories such as handbags, scarves, silks and small leather goods. The company manufactures a segment of outerwear, with the majority of the products sourced form third parties. The most significant licensing relationship is in Japan, where the partners design and manufacture the product under the brand name Burberry. The Burberry Company is faced with intense competition in most of its product categories and market. The main aims and objectives for Burberry Company are to make a profit, growth and survival. The company keeps a detailed inventory and accounting system must be kept on the database, so that the company can keep track and reorder when appropriate so to prevent the unnecessary and often times extensive shortage costs, which shows Burberry Company is trying to make the maximization profit. ...read more.

Middle

Various methods of marketing Marketing mix and the use of the Boston matrix is a useful way of describing the various methods of marketing used by Burberry Company. Marketing mix The marketing mix refers to those elements of the firms marketing strategy, which are designed to meet the needs of the customers. There are four parts to the marketing mix- product, price, promotion and place. These are often known as the four Ps. To meet consumers' needs, businesses must produce the right product, at the right price, make it available at the right place, and let consumers know about it. Product: this means the combination of goods and services that is offered to the target consumer. Product aspects that may be manipulated include style, performance, quality, branding, packaging and after-sales service. For BURBERRY LONDON PERFUME, the basic function of package is to protect its contents in transit, in storage and in use, and this plays a major part in determining its shape, size and the materials used. However, consumers increasingly see attractive packaging as adding value to the perfume. Like packaging, merchandising and display have a major role to play in promoting the perfume to potential customers. Merchandising can be regarded, generally, as presenting stock effectively, whereas display is the specific act of putting stock in places where it is to be viewed by potential customers. Price: is the amount of money consumers have to pay to acquire the product. This can vary considerably from the advertised price. The pricing policy that a business chooses is often reflection of the market at which it is aiming. Deciding how much to charge for goods or services is also very important and will be linked to the overall marketing objectives. For BURBERRY LONDON PERFUME, the price is mainly charged around �35 to �40 in the UK. Because they are using the cost leadership, the price is around �25 in Asia. The price can also be different when the product is in a special offer or sale. ...read more.

Conclusion

Such risks might include the economy experiencing low growth, resulting in falling product demand. Most devastating of all, the BURBERRY LONDON PERFUME, the Burberry Company in marketing might lose favour with the consumer. Burberry Company is seeking to reduce the risk associated with operating in a particular market have entered new and unconnected perfume market. Another marketing strategy that the Burberry Company using is cost leadership, which as being the result of cost advantages achieved by management paying attention to what it calls cost drivers. However, lower costs must be achieved at the expense of quality. In other words, cost leaders are not producing inferior goods or services, just lower cost ones. This is usually done through high output, so that economies of scale and experience result in cost savings. Workers become more efficient and effective by learning from their mistakes, so that over time productivity increases. The last but not the least, marketing positioning is also a marketing strategy that the Burberry Company using. Positioning has been defined as 'the place occupies in a given market as perceived by the relevant group of customers'. The good thing of using this strategy is that you can clearly see which position the company currently own, who the company has to defeat to own the position they want. In addition, the Burberry Company can find itself a position that it is suitable for them to be in. Develop the marketing strategy If I must make recommendations on this marketing strategy, I would choose not to use diversification for marketing growth. Instead of diversification, I would prefer choosing market development. Because diversification has such a high risk to the company, although the Burberry Company has the power to cope with the risk, I would still prefer to reduce the risk. Market development entails expanding into new markets with existing products. These may be new markets geographically, new market sectors or perhaps new uses for the product. ?? ?? ?? ?? Page 1 of 36 Name: yang gao Tutor group: H101 ...read more.

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