Essential Marketing Essay Example | Topics and Well Written Essays - 3000 words

Essential Marketing - Essay Example 6 5.Discuss and explain the rationale of the marketing mix variables used by Burberry 8 5.0.Product 8 5.1.Price 10 5.2.Place 10 5.3.Promotion 11 5.4.Process 11 5.5.Physical Evidence 11 5.6.People 12 6.Discuss and explain the rationale of Burberry’s use of digital marketing tools. What are the advantages and disadvantages of this approach? 12 References 15 Bibliography 17 1. Overview Burberry was established in the year 1856 by Thomas Burberry who is the regarded as the inventor of the gabardine raincoat. This particular product ultimately became one of the signature products for the organisation. The chief visions of the organisation are to attain significant competitive position over the competitors along with increasing the market share considerably (Burberry, n.d.). In the paper, the different business environmental factors, market segmentation methods and the various applications of marketing mix features will be discussed. Various aspects that include the execution of eff ective digital marketing tools along with its various benefits and disadvantages will also be depicted in the discussion. 2. Identify and explain the environmental factors affecting the marketing of Burberry 2.0. ... Al., 2010). For instance, the chief competitors of Burberry in the luxury market are LVMH, Gucci and others. Hence, it can be affirmed that the brand faces a significant amount of competition from other luxury brands which can be thus recognised as a major environmental factor that affects the marketing strategies of Burberry. In order to outrun these luxury brands, Burberry has been identified to often attempt to introduce an increased number of collections annually which generally ranges between two to eight annual collections. It is worth mentioning that the company also faces a steep competition in the segment of luxury accessories. In the accessory segment the major competitors of the brand are Chanel and Louis Vuitton. Thus, it can be stated that competition is apparently one of the significant environmental factors that significantly affect the marketing prospects of Burberry. 2.1. Macro Environmental Factors Another significant factor affecting the marketing strategies of Bur berry was the economic downturn that took place during the period of 2009. It was found by certain researches that in places like Spain and Japan, Burberry was perceived to be a premium brand rather than a luxury brand. These facts compelled the brand to implement certain cost reduction programmes during the economic downturn in order to attract the customers of the weaker markets such as Spain. The recessional stress acted as a major factor that affected the marketing strategy of Burberry and resulted in restructuring at several places. The economic downturn also compelled the company to include discount strategies in its marketing policies during December 2008. Several other government interventions such as licensing policies also