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.

 

Chapter 14- Marketing channels and retailing

   
     Burberry is one of the most popular company in all of the UK. People from all around the world visit a store to get a chance to see and buy one of Burberrys amazing products. Over the years Burberrys "stock" has been rising and their selling has increased greatly. Some say this is because of CEO Angela Andthrendts and her marketing ability but i think it is just because of the way they sell their products at retail and the care in which the employees have for you. Burberry has increased 5.4 % in value of retail sales since 2012. Burberry had 26 retail stores open just this year. This is important because retail accounts for 64 percent of their revenue.

    Burberry also has a wholesale line. Burberry sells wholesale suits and mens clothing to china. However in January Burberry discussed that they would slow down wholesale shipments because they feel it is a risk of bad debt when they choose to curtail shipments.  I actually got a chance to visit a Burberry the other day and i was definitely impressed as to what i saw. Burberry has 11 stores in the state  of New york and they are considering expanding. When i walked in the store the first thing i noticed was the design of it. It was very clean and all of the products were displayed beautifully. However, the one thing i didn't like about it was that it didn't feel very inviting. Right when i walked in it didn't have that feeling of comfort. Usually when i walk into a store someone greets me. This could be so because it is one of burberrys smaller stores as it is in soho.  Ever since burberry made the change to have full internal control over manufacturing and distribution they have seen success. whenever Burberry sees a retail store that is not doing good enough or reaching its max potential they close it down.

   Burberry manufactures there products in many ways. There internal manufacturing is done in Castleford  Enlgand, Wales, and in New jersey. Control over quality is handled in Europe. Burberry often collaborates with companies to make the best product available in a specific field. For example Burberry paired with InterParfums S.A. to make the best fragrances in the market. They also Collaborated with Safilo S.P.A for their eyewear brand.

   In Japan  categories are managed under a group of licensing agreements. These categories are design, manufacturing, and distribution. This is good for Burberry because they have companies like Sanyo and Mitsui to overlook important categories while they sit back and receive the revenue.


   Other then retail stores Burberry also has concession stores. Burberry feels that the customers would like this because they wouldn't have to go to a large department store to buy there products. Burberry also operates 3 factory stores which are in the UK, USA and also spain. These stores can sell Burberry products with small imperfections by purpose so they don't throw away clothes that were botched.
Burberry continues to improve their marketing channels and hope to become an even more successful company that they are right now.

Picture showing how Burberry does business

Chapter 6: Consumer Decision Making

 Burberrys marketing managers are doing a good job of understanding the need recognition of the people they sell to. Burberry is a big company so they must understand what the consumer in each region would like to have. Burberry opens up different type of stores in different countries. For example in a country where the people like to wear makeup they will have more make up at the store. Burberry also has their own magazine so if consumers would like to see some of their products they can do so. This is also good for Burberry in regards to an internal information search. Not only do they have their own magazine but they are featured in magazines so the consumer can look at something to see their product.  This can also be known as a Marketing controlled information source. When burberry is in magazines they are marketing some of their own products to the public. Burberry sends out a survey to some of their consumers and asks how they like the product they have bought. Burberry is always connected with the customer to give them the best experience possible.

   Burberrys customers are usually satisfied with their product because the company has a low return rate. Burberry is confident that their customer won't return their item so they give them free shipping on every return within 30 days of purchase. Some companies do not do this and this is an edge for Burberry. For example Louis Vitton has a return policy that is very strict. They only take back the purchase if it is in perfect mint condition. Customers often complain about this. Also if it is after 14 days they will not accept it. Burberry trains their workers to be very loyal to the customer and to treat them with great respect. This plays a big factor in the consumers interest of buying the product because the salesman is very engaged into it. Burberry is also very good at marketing their products. They were named 2011 marketing company of the year.

 This is an example of Burberries involvement in the marketing of products. Burberry knows that a lot of people complain about the scent on perfume not being able to last. So what burberry did was market this product directly towards those people by saying how it is long lasting.
Burberry recognizes the culture of each region they are selling to. Burberry has customers in asia so they created a Burberry black and Burberry blue which sells products these people would like.
  A lot of the Burberry consumers want to be part of an aspirational reference group. When you see a person wearing Burberry it shows that they have the money to spend to buy this item. Everyone knows the product is expensive so the consumer feels good about him/herself when wearing this product. Celebrities wear their product to so people would want to be like them as well.

celebs wearing the Burberry trenchcoat

 Burberry is very involved with gender marketing. Burberry used to
 be a predominantly mens company. Trenchcoats were very popular for men back in the day so they targeted men at first.  If you look at all the Burberry ads from the 1900s you will find a man wearing a trench coat.

  As time went on Burberry started to expand more and more. They began to create products for women like bags accessories and even dresses. This made Burberry a more successful company.  The more a company expands the bigger chance it has to make money and this is what they did. Burberrys customers are part of a little family because they are dedicated to the product. No one spends a lot of money if they do not love the product.  Burberry continues to improve in the way they can relate to their consumer and listen to all their needs and wants.

Chapter 5: Developing A Global Vision

   Nowadays to be a successful company you must be a global company. What this means is that you can't only direct all your products towards only one country. You must be world renowned and sell your products everywhere. The more global a company is usually determines how much revenue they do throughout the year. In the more recent years Burberry has put in hard work to become a more and more Global company. They have catered to the needs of the countries that they sell their products to.
Burberry employs about 11,000 staff in 31 countries an have about 15 million followers combined on their twitter and Facebook account. Burberry also has stores in 8 different countries as well.

   An example of how Burberry is becoming a more global company is that since in Asia the body structure of their country is different to the U.S. and London they created for them two new lines. These lines are called:

•  Burberry Black label- Mens line selling everything from shirts,suits, trench coats to accessories. 
• Burberry Blue label- A ladies line that directs towards the hip and trendy girl.                                     

                                                   








Burberries CEO Angela Ahrendts has really improved the company in becoming a more global brand. She has done this with digital and traditional platforms. The newly revised website lets you view the burberry collection in a 360 degree view. They are reaching to their company in High tech and innovative ways. This shows they are global because the world nowadays is becoming filled with technology digital things.
Over the last few years Burberry has been trying to do a lot of business in Spain, Asia, and India. Countries like these love Burberries products because they are known to be a british brand and this is very popular. Burberry has a 5 percent growth in these new markets. Burberry has been a huge success in China. In 2013 they have posted a double digit percentage growth in store sales. Burberry also has licensing with a brand called Inter Parfume. It is a perfume company that mostly serves the north american market. Burberry is very conscious about the needs of their consumers around the world and can cater to them with their needs. Burberry saw that in India it a mostly mens market so they created more mens products. In India alone Burberry has more then half a million Facebook fans. Burberries buyers continue to travel the world looking for more products to add to their global portfolio.

Burberry just hired a global director a few years ago named Christopher Bailey. Burberry feels like to be a successful global market they only need one global director and not many. Burberry continues to be known as one of the most Global fashion companies in the world and are ahead of their competitors such as Gucci, Louis vitton, etc.