Marketing is a process which is used by the organization in their business environment to promote a new product in the existing market or existing product in the new market. Marketing management and planning is a need of a company to cover a wider area of products starting from development until to end on the sale. A company have to carry a marketing plan for each type of product because each product is having their own customers to be targetted and satisfied to achieve desire profits and gains. This report is having focus on the types of marketing and human capabilities. This report indicates future marketing activity for the company and their future planning to enter a new market. SWOT and PESTLE analysis of the organisation analyse the potential for their future plans(Alrubaiee and Al-Nazer, 2010). This report is analysing the barriers for their marketing planning and way to overcome on them The present report is on Burberry, one of the most popular brand in clothing segment in whole world. Burberry Group Inc is a luxury house headquartered in London, England which deals with the ready to wear outwear, fashion accessories, fragrances, sunglasses and cosmetics. Thomas Burberry is planning to open new fashion store in Brisbane in Australia which requires in-depth market research and analysis related to the various elements affecting the research and plans the segments to be targetted and implement the same.
In the present report, Burberry is opening a new fashion store in Brisbane in Australia so it requires the effective marketing plan to promote its products in the targetted market and maintains its profitability and goodwill in the same(Armstrong and et.al., 2012). Thomas Burberry chooses Brisbane as a new trading destination because of the following reason:
- World-class air, sea, road, and rail infrastructure connecting Brisbane directly thus it is the attractive tourist destination which leads to access of a large number of customers in the city and thus enhances the profitability objective of the company.
- Rapidly growing population in the South East Queensland which is just 6 km to the Brisbane makes this market ideal location for the business.
- Dedicated industry and peaceful political environment providing the opportunity to co-locate with complementary businesses(Frank and et.al., 2010).
- Brisbane is the city of Australia where curfew-free, 24-hour operations at Airport is possible which again makes it the best business destination for Burberry as 24-hour service on airport i.e. access to country's largest capital city airport where 33 international and domestic airlines lands and takeoffs which make Brisbane the best business destination.
- The government of Australia has declared various policies to encourage the new businessmen to enter in the market to trade about which Thomas Burberry is well known about as he already trading in the Sydney and Melbourne city in Australia.
- A sophisticated modern economy, cultural diversity, and world-class growing capabilities of Brisbane enhancing the reputation of Brisbane very quickly and thus attracting Burberry to invest in this destination(SHuang and Zhang, 2011).
- Burberry mainly includes the most fashion-forward collection, tailored collection which customers wear on weak days for work and also includes the casuals worn on weekends thus this company covers all the customers of every class, status and financial organisation and this also facilitate them to enter in a new market without any hesitation.
- Burberry is itself a popular brand and well known to people of Brisbane and thus this is also one of the biggest reason for opening the new store in Brisbane(Kozak and Baloglu, 2010).
Trends allow traders as well as investors to capture maximum profits for long and short term in an overall trending market or a ranging environment, the flow from one price to another is what creates profits and losses. There are four major factors that cause both long-term trends and short-term fluctuations. These factors includes governments, international transactions, speculation, expectation, along with the supply and demand. Major market forces which affect Burberry clothing company are :
Government - Governments play a important role in affecting business activities or operations of Burberry clothing company. Fiscal and monetary policy have a profound effect on the financial marketplace. By increasing and decreasing interest rates the government and Federal Reserve can effectively slow or attempt to speed up growth within the country(Lee and Lam, 2012 ). This is called monetary policy. If government spending increases or contracts known as fiscal policy, and can be used to help ease unemployment as well as stabilize prices.
International transactions -The flow of funds between countries having a impact on strength of a country's economy as well as its currency. The more money that is leaving a country, the weaker the country's economy and currency. Countries export, whether physical goods or services, are continually bringing money into their countries. This money can then be reinvested and can stimulate financial markets within the countries.
Supply and demand - Supply and demand for Burberry clothing company, currencies and other investments creates a push-pull dynamic in prices. Prices and rates change as supply or demand changes. If something is in demand and supply begins to shrink, prices will rise. If supply increases beyond current demand, prices will fall. If supply is relatively stable, prices can fluctuate higher and lower as demand increases or decreases(Lindgreen and et.al., 2012).
Effect on Short- and Long-Term Trends By these factors causing both short- and long-term fluctuations in a market, and these are the elements which are combined together and create trends. Government mandates impact international transactions, which play a important role in speculation as well as supply and demand plays a role in each of these other factors. Government helps in proposing changes in spending or tax policy. Along with this they have to make Federal Reserve decisions to change or maintain interest rates which have a dramatic effect on long term trends. Lower interest rates along with the taxes which helps in encouraging the consumers to do spending and economic growth. This has a tendency to push market prices higher, but the market does not always respond in a proper way(Morrison, 2013).
Thomas Burberry have decided to introduce new store in the Brisbane of Australia. Brisbane is one of the biggest business hub in the world thus Thomas Burberry have decided to introduce new beauty products like self manufactured perfumes, hair clips, nail polishes lipstick,mascara,eye shadow,shampoo,hairstyling products along with the fashionable and casual dresses to enhance the attraction of the customers towards their show rooms. For this purpose the marketing managers has adopted the STP strategy which could be easily explain by following diagram:
The STP strategy is being developed to sale their new beauty products to along with their luxurious and fashionable costumes to target the following segments of the market which is described as follows:
- Demographics: This factors includes the age, gender, income and marital status of the women of Brisbane. The beauty products are targetted to every women in the Brisbane whether household or working or business women. The R&D team of Burberry present the report that women of Brisbane is very much health and beauty conscious, thus this is the best way to penetrate in the market of Brisbane(Verhoef, Reinartz and Krafft, 2010). No matter what is the age or the income, every women wants the large kit of the beauty products at home. These beauty products are basic necessity of every women in the city. Brisbane is the place where large number of Indians are settled temporarily or permanently thus here marital status is also considered as Indian married women is incomplete without the beauty products like nail polish, lipsticks etc.
- Psycho-graphics : This includes the life-styles, hobbies and personality of the people to be targetted in the market. In Brisbane Burberry have targetted the life- style, hobbies and personality of women to enhance its sale of its branded dresses along with self manufactured branded beauty products. The women of Brisbane enjoys social get together, outings and discos in the weekends to refresh themselves from the week days working pressure and thus wants to keep up to date which requires the qualitative beauty products which enhances their personality because women of Brisbane are very conscious towards their personality and life style(Kim and Ko 2012). The Marketing team of the Burberry have made various surveys to collect data regarding necessities of the targetted women to be fu-filed and founded that the women of Brisbane are very much conscious towards their health also that the beauty products used by them should not harm their skin and health and so they prefer quality products in spite of cheaper products. Thus, this competitive advantage of the company will help Burberry to easily introduced their new and some what expensive products in the city and face the cut throat competition in the market.
Thomas Burberry followed the following marketing strategy for the new beauty products in new market in Brisbane:
Situation Analysis: Since, the Thomas Burberry have large experience of opening new show rooms as he have number of stores in each part of the world. Thus, this experience helped him to analyse the weak nerve of the women in Brisbane. He have examine the necessity of the quality beauty products which do not affect their skin and health ( Morgan, 2012 ). Women of Brisbane are also very conscious towards their life style and dressing sense and Burberry deals with all type of the fashion forward collection, tailored collection as well as casuals worn on weekends and weak days and special occasion thus this company covers all women of every class, status and financial organisation and thus facilitate them to enter in new market without any hesitation. Thomas Burberry is also well known about the brand popularity of his products in Brisbane and thus confident about the sale of the products with good opening.
Marketing Strategy: After the situation analysis marketing managers develop the effective marketing strategies to promote the beauty products by segmentation, targetting and positioning. Thomas Burberry has segmented and targetted the market on the demographic and psycho-graphic criteria which includes women's age, income, life-style and hobbies. After segmentation next step is to position the right product at right place and price. The positioning of the product can easily be done through 4 P's strategy which could be explain as follows:
Product: Here, product means the “beauty products” which Thomas Burberry need to sale in the Brisbane Market of Australia to enhance the revenues of the company. Thus, beauty products should be designed and featured in such a way that it could cover large number of the women customers(Rampersad, Quester and Troshani,2010). Since, Burberry is dealing with the beauty products that has wide scope of alternatives and customers can easily switch over to another alternative if not satisfied their demands. So Burberry needs to be very keen about their quality and changing demands of the customers so that they do not get attracted towards the other alternative after entering its shop.
Price: Price is the most essential element in the cut throat competitive market as it directly affects the profitability and outcome of the organisation. Burberry is the popular brand all over the world and so it gains competitive advantage over other competitors but it also need to keep in mind the class, status and income of the people living in the area where Thomas Burberry is planning to open the show room(Schmitt, 2011).
Place :Place means the location where the show room need to be opened. This factor need to be analyse in the light of the segments the company planned to target i.e. demographic and psycho-graphics factors in reference to women. Thomas Burberry require to analyse the location for show room which is easily accessible for the women of Brisbane. It should be at the busy hub where other facilities like beauty parlours, discos, cinema halls where large crowd of women daily reach and pass by. This place should also facilitate various government incentives declared by the Australian Government for the new retailers in the country.
Promotion: This is the last step in the marketing mix which decides how the product need to be communicated to the potential customers to attract them towards the show room of the Burberry. The promotion includes the free distribution of the beauty products by door to door service at every home(Varadarajan, 2010). It can also be possible by encouraging the near by beauty parlours to use their products on large discounts or even free. Today social media is also very active which allows the business men to reach large number of population with least cost and time. Since Burberry is the popular brand so it can also use the printing and electronic media as one of the promotion strategy.
Branding And Promotion:Burberry is the popular brand which now acts as trade mark in the clothing and fashion world. It has large number of branded stores and franchises in all over the world which enhances their product demand and thus it is the one of the best competitive advantage which the Burberry have in its side. Burberry can add this brand cost in its product easily and can enjoy the taste of high profits on its products. This also ensures the long term sustainability in the cut throat competitive market in global world. Burberry is also experienced and effective in online selling as he was the first one to start online sale in US in 2006. So, he has 12 years long experience in this field so he can also use it as one of the promotional strategy for its new product. Branding is itself a promotion strategy which requires no cost and time in marketing(Wright, 2010).He well-known brand also has its own emotional connections with the customers which enhances the quality value of the newly launched product in the market. The customers have blind faith on the brand which allow the Burberry to introduce new product in new market without any hesitation.
Relationship Building: In today's globalisation world developing and sustaining trust isn the most difficult task for any organisation or company in the market. Brands creates such relationship with the customers which ultimately enhances the profitability of the company. Brand image helps the company to develop the positive attitude of the customers towards the owner which again increases the revenues of the company. Developing relationship with the customers help the company to know the issues of the customers so that their feedback can help them to resolve the customer's issues as quickly as possible which also leads to enhance social image of the organisation(Yan,2011).
The above report is about the branded clothing company Burberry of UK planning to open a new store in Brisbane of Australia with the new section of beauty products to be targetted to the women of every class, status, income, age and marital status because beauty products are the one of the basic necessity of the life style and personality now days. Thomas Burberry has introduced the 4P marketing strategy to introduce its new beauty products in the market of Brisbane keeping in mind the demographic and psycho-graphic factors of women. Burberry is one of the most popular brand in the world so its branding image is the competitive edge for the company which leads to enhance the profitability of the organisation.
Books and Journals
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- Armstrong, G and et.al., 2012.Marketing: an introduction. Pearson Prentice-Hall, London.
- Frank, S.M and et.al., 2010.System and method for marketing, managing, and maintaining intellectual property. U.S. Patent 7.801.830.
- Huang, R. and Zhang, D., 2011. Managing underwriters and the marketing of seasoned equity offerings.Journal of Financial and Quantitative Analysis. 46(01). pp.141-170.
- Kozak, M. and Baloglu, S., 2010. Managing and marketing tourist destinations: Strategies to gain a competitive edge. Routledge.