Burberry is a British luxury fashion house created in 1856 by Thomas Burberry. The Burberry brand is part of the Burberry Group PLC, a company listed on the London Stock Exchange and part of the FTSE 100 Index, headquartered in London, England. The fashion house focus is principally to create and distribute trench coats, out-wear and fashion accessories.
The Burberry marketing is principally based on the materials at the base of their clothing; in fact, as we know, Burberry has developed a fabric called Gabardine, which is completely breathable and waterproof. Their coats are all made of this fabric with their recognisable worldwide and unique pattern.
Burberry first attempt to product customisation was for the Burberry Bespoke Campaign, they have fulfilled the wishes of their customers. The brand enabled their shop to choose the style, the colour and the materials of their trench coat and their scarves. This was their first attempt of mass customisation.
Collaborating with tech companies
The second marketing strategy is part of the technology that the brand uses to drive the marketing to the digital path. With their Burberry Kisses the brand wanted to promote its beauty product, and with the help of Google, they created a unique experience for the customers, enabling them to send kisses around the world, thanks to the facial recognition of Google and just a smartphone or a PC. During that period the sales of their lipstick line have grown exponentially.
The social network is part of our daily routine so Burberry aware of that used Snapchat and Instagram to promote their new collection. On both social networks, the collection debuted one week before the worldwide release, allowing the fans of the luxury house to be able to preview and buy the new line before the normal customers.
Combining online and in store shopping
In 2012, Burberry opened the Burberry Regent Street in London to provide users with a unique experience.
“Burberry Regent Street brings our digital world to life in a physical space for the first time, where customers can experience every facet of the brand through immersive multimedia content exactly as they do online,” said Burberry CEO Angela Ahrendts in an interview. “Walking through the doors is just like walking into our website. It is Burberry World Live.”
Customers can resume their shopping from where they left it at home. The site cart is shown exactly on screens where they allow those who can buy their items of clothing, to be able to customise them and proceed to checkout without having to go through the cash desk.
The results? Burberry achieved a one-year growth of 86% and a brand value of $3.38 billion
Advantages and disadvantages of the communication methods
Burberry is not only one of the UK's best luxury brands in terms of design but also in terms of communication strategies. In 2010, Burberry decided to start a new concept in their market that is called product customisation. Overall, this concept has many advantages as it can be very beneficial for customers. Some clients prefer their scarf red instead of black, also wider or longer in size, and this is what this service proposes. Burberry has also calculated the potential outcomes and it turned out to be pretty much high 12 million potential outcomes. The only disadvantage I can see coming from this concept is the fact that it takes time to have a finished customized product. By that said, from 4 to 8 weeks due to the high demand and the work put in customising it.
Another communication strategy that Burberry has been using is the Burberry Kisses campaign. In 2013, the brand partnered with Google to launch the digital kisses worldwide. The advantage of this is that it's mainly a win-win case. The company gets to promote their beauty campaign while the customers enjoy kisses internationally. Lipsticks were sold more than usual because of this strategy that the company used. Also, once this campaigned was launched there were 253,000 search results for Burberry kisses on google within the first 10 days and live in 13,000 cities meaning they have communicated with people all over the world. However, the disadvantage could be that it only targets only the women's market if they were to target to men's beauty or cosmetics they would increase revenues and therefore profits too.
Barriers to communication
There are many barriers to the business this may be from anything gender, emotional and much more. This could also have an impact on the people that are working for Burberry. One of the main issues that they might have is the Brexit this is going to have a large impact on the business because they must pay twice as much when they are shipping something to the customers or they are have something brought into the store. This could also be very bad for them because they have might have to close some of their stores once they have left the EU because they really can't afford to keep their stores open for a long period of time.
One other barrier that may have is the space of the store. This could be an issue for the employees because of the lack of space for the move around when they have a lot of customers coming into the store. Sometime there will be some people will have an emotional issue that they might be going through that day this could be from being angry about something and anxiety. This can be caused by a very high pressure from the workplace for personal issues. Finally, sometimes there could be a language barrier between the customers and the employees.
Conclusion and recommendation
In conclusion, we can see in the first part of the report Burberry had achieved 86% growth in one year and increased their brand value to $3.38 billion. This was achieved through the marketing strategies implemented by Burberry which they were successful and appealed to the customers and differentiated themselves from other luxury brands. Also, marketing through social media is the best way to expose your brand to customers it helps connect people with your brand and your message through. Burberry excelling in making revenue and brand exposure does not mean that they do not have any problems or barriers.
Burberry should hire more potential domestic employees to the fasten the process of making the customised products which will enable them to generate more revenue which later will be helpful during Brexit as faster service will lead to more demand and in return more revenue and profits for them to inject back into their products.
For Burberry to be more cost-effective (post-Brexit) they do not have to shut down their stores in other major cities such as Paris or Milan. Rather, they can convert them into a click and collect store and mostly focus on online shopping which will encourage customers to buy online which lead to a reduction of human labour and decrease costs.
Comparing Burberry to another FTSE 100 company such as EasyJet both Burberry and EasyJet use the internet to communicate with their customers. Burberry combines the online and instore shopping whereas, Easy jet uses the internet (digital marketing) for booking tickets as they do not have any offices whereas Burberry has stores all over the world for the customers to access.
I would recommend Burberry too encourage customers to purchase items online as it will help them decrease man labour. However, I also think they should invest more time in the combining online and in store shopping all over the world rather than just doing it in London as customer will be attracted to this feature.
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