chapter 7: Business marketing

  Burberry does most of its marketing online due to the fact that the world is in a huge technology bubble right now. For businesses to promote their products in the most effective way the internet is definitely the right place for them. One of the ways that Burberry sees if they have success with online marketing is simply looking at how many followers or comments they have on their account. For example if Burberry posts a picture on Facebook and they get 100,000 likes this is a way to determine if the people really like the product or not. Burberry does not do a lot of wholesale work so they can't really relate to purchase volume.

  When Burberry sells their products it usually isn't at a high volume due to the fact that only one person can purchase items. When a potential customer walks into the store they are not planning on buying hundred of items like wholesale buyers do. Burberry is very focused on targeting their costumers so they don't get involved with much Business to business operations. some people may think this is a weakness for the company but in reality it is a strength because they only have to watch over one thing and not multiple. Companies who both sell to customers and businesses may have to much on their plate to handle and ultimately lead to failure.

  What Burberry may have to do to that involved a business to business relationship is to buy the fabrics and materials needed to build a product. Burberrys clothing does not come from anywhere. For example a Burberry trench coat is usually made of cotton. Burberry has to ship this cotton to the factory so they can make this product.

BURBERRY COTTON NECK TIE

Chapter 8: Segmenting and Targeting Markets

 Burberry as a company realizes the great importance of market segmentation and incorporates this strategy with the company. Burberry sells their products to countries all over the world so they must differentiate their target markets and the actual products they sell.  Below shows specific segmentation categories and how Burberry uses them to benefit their company.

Geographic Segmentation- Burberry first started out as a company that only sold outerwear. The reason for this is that in london it was very cold and people needed to shelter themselves from it. Burberry originally created trench coats, its, scarves, gloves etc. As burberry expanded they realized they can't sell all of these items to countries with hotter climates. This is why they expanded to sell fragrances, accessories, bags, etc.


Demographic segmentation- Burberry has to differentiate some customers with others to see who they want to target. Burberrys products are generally high so they usually target 19-35 year old people with a high income. Burberry sells their products to men and women and to any race. An example of how they use Demographic Segmentation is how when they sell their products to the people of japan they had to create two different brands. One is called Burberry Black Label, and one is called Burberry Blue Label. These brands differ because in one of them the clothing are tight fit while the other is loose or regular fit.


Pyschographic segmentation- Burberry tries to use this on their customers a little but usually it happens naturally with a high end brand. Customers who always buy products from one specific brand usually stick with that brand and won't buy any other company. Burberry is trying to make it the next cool and hip thing to do if you are wearing their products. They don't want to be known as the high end company for grandmas ( some companies really are).


Multisegment Targeting- With some of Burberrys products they target several different people. For example the trench coat. A man can be seen wearing one and so can a women. It is a very popular staple in the English communities.


Customers of high end companies take their buying habits personally and they want to be treated in the best of ways. With these type of consumers Burberry will potentially give them a personal shopper to help the person see what they like and to give confidence to that person.

Chapter 11: Developing and Managing Products

  Due to the fact that Burberry is a high end luxury fashion company their products are usually made once and kept like that for a while. What i mean by this is that if Burberry creates a dress that is for the runway shows which will ultimately be sold in stores they will keep it that way. The only thing changed by them would be the size. Burberry comes out with new lines throughout the year showing the customer the latest hot items. Unlike most companies who are constantly changing specs and details of products, Burberry tries to stick to its original state. What Burberry does do is create a product development process. They take all the steps necessary from new product strategy to actually having that new product out. Burberry has employees to take over these jobs.

  Burberry does not deal with distributors a lot because they are not so big in wholesale. The same goes with vendors, most burberry products are sold in Burberry stores or even a department store or two. Burberrys competition is usually on the same pace as them when it comes to creating new products. To become ahead of the game Burberrys products developers must think of new ideas quick so they can reach out to customers quicker. With fashion, once a great product comes out most of the other companies copy this product but put their own spin on it. An example of this is the trench coat. Burberry was one of the first companies in the world to introduce the trench coat. Today you can see that all of their competitors sell this product.  Burberry is very good at the step of Commercialization.
This is where they have an advantage over their competitors. Burberry markets their product in a great way that can reach the potential customer in a better way then other companies. EX: social media

Saint Laurent Trench Coat

Burberry Trench Coat

Burberry innovates in a lot of ways. Whether its showing a new line to important people in the fashion world or using different ways of digital marketing. Burberrry does not have any competitors that can potentially bring them out of business and this is a very good thing. For example the DVR set has been basically extinct due to that fact of DVD's and netflix.

Chapter 18: Social Media and Marketing

  Burberry is emerging as one of the number one high fashion companies in the world that use social media. Their last CEO Angela Ahrendts was the biggest motivator for this change. A lot of people would think it would be hard for the 156 year old company to be so interactive and up to date with the current fashion world but they defied odds and did so. Burberry won the digital innovation award which celebrates the leaders in online initiatives and communications in fashion. Not only have they won awards for their success in social media and online marketing, their profits have rose as well. Burberry has millions of fans on their Facebook site and this is going to continue to grow. On their Facebook timeline it shows pictures of new Burberry products coming out. The same goes for twitter, their main account holds 2.3 million followers. Most of their tweets feature pictures of fashion shows or new products coming out.

  Burberry also markets to the people who like to view videos of products. Burberry has a separate page directed towards this where they show videos of fashion shows and products.  Not to mention Burberry also has a google+ account with 1.9 million followers as well. One of the most popular products that Burberry has is the famous Clutch. This product has been like 49,000 times on Facebook, and counting.

  Burberry also launches something called Burberry Acoustic . What this does is that it streams Britains favorite musicians songs and performances on to a site where everyone could enjoy it. Burberry also streams 3d online videos of their concerts all around the world. This is a very interactive way to show potential customers the newest clothing lines about to come out.  Burberry came out with something called BUrberry kisses. They collaborated with Google on this one. Burberry kisses shows a journey brought to life in which a person can send a "kiss" to someone across the world.  Below is the video showing it. Ever since burberry has been starting to engage in social media their E-Commerce has went up 50 percent in Europe and 30 percent in the U.S. This will only continue to grow as the company looks for every way to engage a great relationship with their followers and fans.

chapter 10- product concepts

 Burberry has many products that they produce to sell to the consumers. However, all of their products are consumer products and not industrial or business products. All of the stuff the company creates are intended to satisfy the customers needs and not bought to resell. usually Burberrys products are classifies as either a shopping product or a specialty product, depending on the availability of the actual product. today most burberry shoppers appear to be women so one of the best sellers that the company has is a tote bag with the Burberry stitching and logo on the front. This product sells for 895$ dollars at a retail or department store. Another best seller is the Burberry trench

Dutchess Kate Middleton wearing trench coat from Burberry

coat. This coat has elegance and style and many people wear it in london.







   Burberry often creates product lines to show their target markets so everyone could get a product that they desire. Burberry also creates different lines for different stores, depending on which country the store is located in. If Burberry sees that in china the Accessory market is growing they will create a separate line for the stores in China to boost customer relations and make their target market happy. Burberry is very successful at product modification. The company came so far from when they started just selling trench coats to the men in the army. As time went on Burberry wanted a piece of the fashion mania and decided to expand there product mix.

Granddaughter of Duke and Dutchesss of Devonshire

 By the 1990s Burberry was selling everything from coats, bags, perfumes, and even dresses. Burberry also uses Ads to relate to their target markets. These ads are successful because they feature the royal men or women in them. The people of london like this because its showing them that people in their city are of importance.  The burberry brand name has positioned itself to one of the top luxury brands in the world. With their elegance and modern sense of style they are one of the most successful clothing companies in the world today. Burberry has a high brand equity and people all around the world know of this company. Burberry is also a global brand. They have stores all over the world and 1/3rd of their earnings are obtained from outside its main home.

 Burberry is definitely familiar with Brand loyalty. If someone is going to spend a large sum of money on a product they are most likely going to come back. If this statement was not true Burberry wouldn't be in business. Usually people who buy their products are usually set to come back for some more.
Burberry has a trademark on their company and no one is allowed to use their famous check or copy their products. 2 years ago there was a case of trademark infringement against Burberry and they ended up receiving 100 million because people were copying the products they were selling. Burberry is looking out for this type of stuff so that they won't become a generic product name. Packaging is an important part to how a company does business. Depending on the product Burberry has a few different way of packaging their products. Burberry also gives Warranties on their products showing the customer that they have belief that they will enjoy the product.

chapter 17- personal selling and sales management

  Burberry uses personal selling a lot in their company. The sales person has to get a customer to buy a product that is very expensive in relating to other stores. The customer must have enough liking in the expensive product to be willing to part with his money and buy it. Burberrys salesman are very good at promoting and getting the customer to buy the product and eventually come back for more. If Burberrys sales people were not good at this they would not be a successful company, so they must be doing something right. Burberry cares about every single one of their customers and wants them to keep on coming back to the store. Burberry is not often involved with campaign management because they don't usually change prices for people and make it more attractive for customers. Burberry does not often have sales due to the fact that they want to keep a steady price so people will see their company means business.

Burberry sales women showing products

  Burberry has personal shoppers in their stores and this is a very good way of selling goods. A personal shopper/salesman is someone who would exclusively go with one customer and dress them and pick out what clothes they think would look good on the customer. This is a very personal experience that can lead to many success in the future.  Once a customer has a good experience with a personal shopper they would want to come back because they feel like someone actually cares about them and what they wear.

  Burberry doesn't give a sales role to any person they must have certain characteristics.

They must be very good at creating relationships with customers and lead by example so that the other sales people can look after them.

Burberry uses technology to promote their products and to bring people to the store to ultimately make a sale. Burberry is very in touch with the customer and what they would like to see. Unlike their competitors burberry is the leading brand in E- Busines.

Burberry E- business example

chapter 16- Advertising, public relations, and sales promotion

  Burberry was always known to be the top of the line when it came to advertising and public relations. Burberry knows how to reach the consumer in a way that no other high end retailer can. Burberry is very big on social media so this is a way they can showcase there clothing and products. Burberry is also mentioned in a lot of fashion magazines and they have their own as well. This is very good for them in the advertising standpoint because fashion magazines will always be popular. This company puts on a good advertising appeal by showing the products being worn by models who fit perfectly into the clothing.  Another way Burberry advertises their items are at fashion shows.


At fashion shows models are dressed to perfection with all of Burberrys new clothing for the upcoming season. People from all around the world can tune in and see what products they like. This is a huge advantage for them because most stores do not hold fashion shows for their products. This can be described as a great public relations opportunity for them. Unlike most stores burberry does not usually put up commercials for the company. This can be said to be a disadvatange but with their popularity in the high end fashion world i think this is okay. Burberry also puts billboards up and this is a good way of advertising the company. All of the advertising and public relations strategies mentioned are a great example of product placement. The marketers are doing a good job at showcasing Burberrys products in more then one area or sector.


Burberry is not known to be one of the biggest companies when it comes to promotions. Most of Burberrys items are expensive and this makes it harder for promotions and deals to be brought about. If burberry had a lot of promotions everyone would just wait till the promotion to buy the product. Stores with cheaper items could hold promotions because their products are being baught on a daily basis due to the cheap price. Burberry has not had many times of crisis or unfavorable publicity. The latest big news that they had was their CEO moving to apple. Apple is a huge company and the fact that they would hire someone from Burberry shows that Burberry is a renowned company in which people favor.