Many top market global brands have been struggling to increase sales or market share
in recent years. The news of Burberry’s continuing success leaves some wondering how
the company is delivering such a strong performance, with a revenue increase of 35%,
105 new stores added and a productivity boost of 11% in the last 12 months. ‘While the
luxury industry faces global challenges in the year ahead, we remain confident in our
team’s ability to outperform, underpinned by the consistent execution of our key
strategies,’ said Burberry’s chief executive. The sales figures show that the company’s
plan to survive the financial crisis by targeting flagship markets has so far been
successful. Burberry’s USP of being an ‘iconic British luxury brand’ has been enhanced
in the last few years to attract a new, younger market segment while keeping current
customers satisfied. Now the company is targeting young, digitally aware consumers in
the world’s wealthiest markets. As rising internet penetration and increasing familiarity
with online shopping is a burgeoning trend, the company’s focus is mainly on digital
integration. The company’s targets are 25 of the world’s wealthier cities (including
London, New York and Beijing); according to Burberry these account for more than half
of the global luxury fashion trade. These target markets also benefit from high levels of
tourism and very wealthy residents. The company is investing in underpenetrated
markets such as Asia Pacific, Latin America and the Middle East, as these are forecast to
see continued growth in consumption of luxury goods as tourism, salaries and store
openings increase. Non-apparel, including handbags, small leather goods, scarves,
shoes, belts and jewelry, remain a key driver of the company’s growth, contributing
40% ofQuestions:
retail sales in the last 12 months. Low prices have never been a consideration
1. Define the following terms:
a. Unique Selling point
A feature or quality that makes a product or brand stand out from competitors. And It’s what
makes customers choose one brand over others.
b. Target market (2)
A specific group of people that a company aims its products and marketing efforts at. Usually
chosen based on characteristics like age, location, income, and interests.
2. Describe two elements of Burberry’s marketing mix.
(4)
Product
Burberry focuses on high-end, stylish products like bags, scarves,
and jewelry. These items keep Burberry’s reputation as a luxury
brand, appealing to both loyal customers and younger people who
like trendy, exclusive items.
Place
Burberry chooses top cities like London, New York, and Beijing to
open stores, where many wealthy people and tourists shop. They’re
also expanding into growing areas like Asia and the Middle East to
reach more luxury shoppers. This helps them connect with rich,
online-savvy customers worldwide.
3. Construct a product positioning map for Burberry’s female clothing
based
on price and product quality. (2)
4. Evaluate ways Burberry differentiates its products from its
competitors in the market for female clothing.
(10)
Burberry differentiates its products from competitors in the female clothing market
through its strong British heritage, high-quality materials, and targeted luxury
marketing. Unlike more accessible brands like H&M and Zara, Burberry leverages its
iconic trench coats and signature check pattern to create a unique, recognizable
identity. By prioritizing premium craftsmanship, Burberry aligns with high-end
brands like Gucci and Louis Vuitton, appealing to customers who value exclusivity
and durability. Additionally, Burberry’s focus on digital integration and flagship
stores in wealthy cities helps it connect with a younger, fashion-conscious audience.
Unlike brands that focus solely on apparel, Burberry also offers a range of non-
apparel items like handbags and scarves, expanding its luxury appeal and positioning
it as a lifestyle brand. Together, these strategies set Burberry apart in the competitive
luxury market.
