Introduction - Analyzing Burberry's Approach to Consumer Engagement
Marketing strategies are the major aspects that have a huge influence on revenue generation as well as building effective relations with consumers. The marketing strategies can be improved for the de3vleoipmetn of the organisation and development of sales. Marketing strategies are the most effective part of business development as it provides an effective attraction with consumers. It also helps in maintaining the reputation of the business and helps in taking an effective decision-making process. The brand chosen for the business development and establishment of the marketing strategies in the current market is Burberry. The current marketing strategies are provided in the report with the help of the current market situation and the strategies applied by the organisation for developing the marketing strategies. Burberry is a fashion industry and it helps in providing effective fashion products that support consumers with trendy clothes with the best product quality.
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Burberry is a fashion brand that maintains the living style of humans by providing every fashion product that builds an effective look for humans. It provides dresses footwear and bags for every age and gender category. The products provided by Burberry are luxury as well as fashionable. It targets generally high-class society people, as the cost of brand products is huge and unaffordable by middle-class people. The major aspects of the marketing process used by Burberry are campaigns advertising in the fashion shows advertisement through technology and various aspects of marketing such as television marketing.
The current market includes employment of the candidates in fashion industry 555000 and the retail sale of clothing is around 414000. There are four tough competitors in the UK market, which include Next Plc, Mark & spencer and ASOS. The retail market of Uk has suffered a huge loss during the covid-19 due to supply chain issues and then it recovered a lot in the coming years. The revenue of the current market is projected just 55 billion pounds but by teh end of the financial year 2026, the market cast up to 65 billion pounds (Statista.com, 2023). The global market of the fashion industry has been estimated to reach the target of marketing up to $ 1.7 trillion by the end of 2022. The statics has reached 103% to 108% from 2019 to 2022 with an increase of 3.2 per cent. The e-commerce of the fashion brand has reached up to $ 14.19 billion in 2022 (Fashiondiscounts.uk, 2023). The fashion industry has also maintained a CSR for sustainability in the UK as it is the second largest industry in terms of using water soo major industries are using the reuse and recycling process.
These are the major aspects that interrupt the selling of Burberry and to give tough competition to these brands market analysis is a must and it must be supported with effective data collection. Burberry is the largest brand in terms of fashion and it has the largest capital-based market with effective sales and a share of the market. Major of the employees are working in the retail sale of clothing the remaining employees work in wholesale and the manufacturing department. Around 75 % of employees are working in retail store which includes 414000, 8% in wholesale of foot w3ere and clothes and the rest of the employees are working in the manufacturing department. The employees working in the manufacturing department includes 43000 employees who hold a different position in the organisation. 34000 are general labours and 5000 are in a certain position. The size of the UK fashion industry depends on 4 major companies that have their perspective size. The size of Burberry is 10 billion dollars, next Plc has a market size of 7.16 billion dollars, Mark & Spencer has 6.18 billion dollars and ASOS is having a market size of 6.18 billion dollars. Uk consumers are spending around 56, 048 and 9961 on clothing and footwear which can be termed as 5% and 2% respectively of their expenditure in clothing and footwear (Fashionunited.uk, 2023). The demand for clothing in a foreign land is also effective; they export 9.2 billion USD for clothing and 2.8 billion in footwear.
According to Lyppert, (2021), Burberry is the largest brand in the fashion industry because of consumer satisfaction and effective marketing strategies. It provides effective clothing quality as well as footwear. The brand has a specific goal that it \meets in the best possible way by plotting effective strategies for attracting customers and fulfilling its goals with the proper generation of brand awareness. The marketing strategy used by Burberry is Segmentation targeting and positioning of the market based on the STP model. it targets consumers who are fashion freaks and can have a better knowledge of the product (Cheng et al. 2021). It fulfils the need of the consumers. It segments the market according to geographic, demographic, behavioural and psychological aspects. These marketing strategy help in analysing the consumers and helps the brand to analyse the behavioural aspect of the consumers as well as psychological aspects. It targets the developed regions of different nations and analysis the consumers by their dressing sense and provides effective suggestions \with effective style and quality. It generally targets a high-class audience, as the cost of the product is very high (Silvano, 2020). It uses an effective process for approaching its audience using various techniques, which include artificial intelligence and machine learning that helps in analysing the customer in terms of the data collection process.
Brand essence or the values of the brand are built in an effective manner by spending time in the analysis of the market and the research and development of the process. The time spent in the research and development provides the best quality fibre to the consumer that has a huge consumer attraction base. They reinvented their branches and silhouettes for increasing the profitability of the organisation. The customer's need is fulfilled by the brand and the customers are Gen Z and Millennial who has a higher resilience that provides an effective business in poor economic. As Millennials are not affected by any kind of economic change and this leads to building an effective revenue generation process. It also collaborates with famous brands that help in providing effective support in business development in terms of knowledge sharing as well as the awareness generation process. The collaboration organisation are Burberry X Minecraft, Burberry X Ssense, meet Burberry Ambassador Jun Ji-Hyun and The Lola Bag And Highsnobiety (In.burberry.com, 2023). This collaboration provides effective support in campaigns as well as various advertising methods. The market of Burberry has and is estimated of increasing by 180% from 2019 to 2025. Burberry has increased its sales by 14% due to changes in its strategies such as generating brand awareness (Linkedin.com, 2023). It has also increased the stock market by £1b and saved £100m through the cost-saving plan.
Recommendation
Burberry is the largest brand and it has a huge impact on sales and revenue generation as it provides effective customer satisfaction. The major issue faced by the organisation is whether it is affordable by high standard or higher society people and middle-class people can think about purchasing the product. The product quality is high but the price is comparatively very high which has a negative impact on the consumer. The price of the products must be reduced to some extent to have an effective demand as well as a craze for new products produced by the organisation. This will increase the sales to huge amounts and the revenue of the organisation will increase to the highest extent. The marketing strategies that must be implemented regarding other methods include mixed marketing. The various advertising methods that must be induced in the marketing process include social media marketing and omicron marketing channels.
Conclusion
Burberry is a fashion brand that provides products with effective design and quality. The major targeted peoples are Gen Z and Millennials and it is not affordable for middle-class people. The brand has a huge consumer base as it has a reputation for providing effective support to the consumer in terms of service, brand quality and design. This helps in increasing the revenue of the organisation by increasing sales. The marketing strategies used by the organisation include the STP model that helps with segmentation, targeting and positioning. This model helps in effectively maintaining the market, as they are the major aspects of capturing the market. The targeted consumers include millennial consumers and these customers are loyal towards the brand. This consumer has an effective balance in purchasing products, as they don't have any effect due to any type of crisis. The market size of the Uk is huge as fashion is the second largest economy generation sector in Uk and supports effective competition in business development. The export of fashion brands has a huge impact on revenue generation and economic generation. The export of fashion brands includes clothes and footwear.
Reference list
Journals
Cheng, D., Wu, Y., Zhao, G. and Fu, S., 2021. A comprehensive survey on STP approach to finite games. Journal of Systems Science and Complexity, 34(5), pp.1666-1680. Doi: https://arxiv.org/pdf/2106.16086
Lyppert, E.M., 2021. Rebranding of luxury fashion brands: A case study of how to communicate rebranding to younger consumers. Doi: https://www.diva-portal.org/smash/get/diva2:1607744/FULLTEXT01.pdf
Silvano, M.D.C.L.F., 2020. Playing against the rules: how a digital strategy can enhance a luxury business: the case of Burberry (Doctoral dissertation). Doi: https://repositorio.ucp.pt/bitstream/10400.14/29675/1/152118049_Maria%20Silvano_DPDFA.pdf
