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Strategic Management Of Burberry

Executive Summary

The report is analyzed using various frameworks and models to improve the health of the business environment. The report analyzed Burberry as one of the most prestigious brands in the world. Meanwhile, the company analyzed both its strengths and weaknesses. Both action and strategic management help to better understand Burberry. Various factors of a company in the marketing mix are called brand development.

Table of Contents

Introduction. 4

Discussion. 4

Situational analysis. 4



STP. 6

Objective. 7

Strategy. 9

Tactics. 11

7P marketing mix. 11

Action. 12

Control 12

Conclusion. 13

References. 14


Burberry is one of the most renowned companies in the UK market as a fashion and lifestyle brand. The report has analyzed through different frameworks and models to improve the condition of the business environment.


Situational analysis

Burberry’s objective and action plans can be implemented in the UK market. Macro and micro-economic factors in the UK market would help to improve the functions in Burberry. In Burberry, the marketing factors would be described in the report with the help of strengths, weaknesses, opportunities and threats.



In the UK, political instability has become higher. The political factors are very important for continuing the business in the country. On the contrary, the UK has a better position in international trades. Moreover, the EU regulated policies and rules would affect the factors in permanent business. Global, military, scientific and political affairs are the factors, which can affect the business of Burberry. 


The UK is one of the most advanced economies in Europe. During 2020-21, the economic factors were affected due to Covid-19. The GDP was 3108.42 million dollars in 2020 (Statista, 2021).  The GDP rate was dropped by 9.85% in 2020 but the rate was increased by 6.76% in 2021 (, 2021). Therefore, the economic factors of the country were improved as per the growth of GDP. The FDI of the country would help the company to improve their business. Wages in the UK would improve the business of Burberry. The current corporation tax rate in the UK’s companies is 19%, which would help the business (Petroff, 2021). 


The UK has a huge population with 68 million (, 2021). In the UK, numbers of educated people would help to improve the factors in business. Different types of people and diversity would help to improve the factors associated with the workforce. On the other hand, cost of living would help to improve the business of luxury brands. Burberry’s business is based on foreign tourists and overseas markets. The company is mostly dependent on the development of better sales in the luxury apparel and accessories sales. In the UK, the options of selling different luxury brands are higher as different foreign tourists visit the country. Moreover, 17 million and 8 million followers of Burberry would be found in Instagram and Twitter (Statista, 2021). Therefore, it can be observed that the customers of Burberry would be found in the UK.


Country’s technological advancement and development would help to improve the options of Burberry to market in the country. Therefore, investments and talent acquisition would be better with the help of technological advancement (Cooper, 2020). Not only economic factors but also the technological factors are associated with the development of technology in the UK. Financial and technological aspects would be implemented in the betterment of the business. Technological resources are available for development of better business networks in the country.


In the UK, environmental laws are very strict therefore to continue the business the company should improve internal policies. Both the terms and conditions in the country would be developed for positive results in the environment. Sustainability and improvement of the environment should be maintained during doing the business. As Burberry is an apparel company, it should maintain all the factors associated with the management of the environment in the country. All the resources like water, land and natural materials would be properly managed


Employment Act and equality act should be maintained in the company due to the regulatory aspects in the country. Legal environment of the country would help to improve for addressing key areas in the business. The rights of employees and development of fair rules in the company (Adamyk, 2019.). Leave policies and regulations for salary would help to improve the legal obligations in the company.



  • Long-term presence in the market has improved the legacy of the brand.
  • The patterns and designs are distinct and recognizable in the market.
  • Brand retention and recalling would create the focused branding by the company
  • Global presence would improve the effectiveness of the brand (Burberry, 2021).
  • Transformation of the brand from manufacturer to a lifestyle label
  • The company has achieved the royal warrant for two times 
  • The company has strong community engagement


  • Higher prices of products would affect the loyalty of the customers for the brand.
  • The company has a very limited product line so that the luxury fashion segment would be affected in the development of a proper fashion and apparel line to improve the fashion segment.
  • The company has not entered the Asian market successfully therefore, it is important for the company to explore that segment (Vlados, 2019). 


  • The increasing demand of luxury brands in the market would improve the sales of the company in the UK market (Daradkeh, Gouveia and Sen, 2018).
  • In the Middle East and Asia-pacific area, the demand for luxury products would help to improve customers’ base.
  • With the help of product differentiation, the expansion of the market would be better.
  • Premium products of the company would help to improve the revenue.


  • High level of competition with the players like Gucci, Prada and Louis Vuitton might affect the market possession of the company.
  • The lifestyles and preferences of the customers are changing day by day. Therefore, the variety of the company should be increased (Elavarasan et al., 2020).
  • Chinese and Asian Luxury brands have higher variety in fewer prices so that the chances of brand switching would be higher.
  • Fake products are increasing in numbers in the market;therefore, the brand equity in the market would be depreciated.



In America, 569 million pounds of revenue would be obtained. In the Middle East and Asia-pacific region, more than 800 pounds would be gained by the company as revenue (Burberry, 2021). The company has focused on the apparels of every age group among the customers. Most of the customers in Europe and America prefer the brand for the rich and elegant approaches of the company. Haute couture, normal fashion and casual styles are included in the company (Camilleri, 2018). On the other hand, the company has included different types of customers and procurement processes. Retailers and manufacturers should be included in the company’s customers. Retailing and wholesaling markets are very profitable for the development of segmentation (Huang and Rust, 2021). Licensing would include 25 million pounds from the company (Burberry, 2021). Therefore, three types of sales channels are included for the development of the market segmentation.


Both fashion-conscious and brand lovers would be associated with the customer range of the company. In occasional and yearly purchase behaviours could be observed among the customers of the company (Camilleri, 2018). Both men and women are the customers for the company. A wider age group such as 15 to 45 would be incorporated in the customer range (Burberry, 2021). Most of the customers of the company are students,white-collar employees, business people, fashion models, fashion enthusiasts and professionals. Therefore, both psychographic and demographic are associated with the brand.


Burberry has positioned itself as the luxury brand in the fashion market. Therefore, brand equity and loyalty are the factors, which attract the attention of the British easily. The company focused on two factors such as fashion and heritage, Classic artisanship along with heritageand elegance make the difference in the appearance of the company’s products with the competitor (Camilleri, 2018). Burberry Prorsum contains runway fashion and cutting-edge couture with exclusive distribution. Prestigious price range and minimalistic designs are also the parts of Burberry London. Prada and Glorgio Armani are the competitors for the companies. Burberry Brit provides casual and stylish products, which might havedirect competition with Polo Ralph Lauren due to their iconic polo tees.

Figure 1: Market Positioning


Objective1: Improvements of sales with better stock in South America and South Asia Pacific would increase the revenue of the company by 30%.

Specific Measurable Attainable Relevant Timely action
The company should improve their performance in the regions of South America and Asia pacific regions for the development of better revenue by 30%. Quarterly report would be improved. Performance of the brand would be better in the selected regions. ROI would be better. High revenue can be obtained in the company. Stock renewal and increase of demand would be frequent in the business.   The objective can be attainable through market analysis and stock improvement As increasing sales helps in enhancing revenue, this objective is relevant. 6-9 months

Table 1: Objective 1

Objective2: Increasing the numbers of flagship stores containing comparatively lower range products in digital platforms would increase the customer pool by 10%.

Specific Measurable Attainable Relevant Timely action
Number of flagship stores would be increased in the digital platform with lower price range products for better revenue. Increase the number of customersIncrease popularity of the websites Number of visits to the websites Revenue increase of the online store Increase brand popularity and awareness.  Increasing the numbers of flagship stores containing is the way of attaining this objective. Increasing members of flagship store will enhance the digital presence of the company. Thus this objective is relevant. 3-6 months

Table 2: Objective two


Market penetration:

Digital performance of the company is very impressive as the company has contributed in both website and social media marketing with better results of attracting customers. Embracing new technology and better opportunities for a market would help the company for gaining high quality customer base and effective revenue earning. In both websites and mobile application, platforms the factors associated with the development of better revenue could be obtained easily. E-commerce products are increased by the company but the flagship stores and lower range of items would help the company to penetrate the unexplored and low-profit gaining markets.

  • Iconic products like trench coats and scarves can be relaunched in the market of  South America and Asia pacific regions
  • Region based market demand should be reflected in the product range
  • The product lines should be enlarged and increased by the company with better colors and new ranges.
  • Young and new customers should be attracted to the company products to improve the impact on the business.

Market development

Previous market development of the company was successful but in Asian countries, the company could not expand with rapid and constant growth. Therefore, to improve market development, the company should improve the product lines and variety. In both Latin America and Asia pacific regions, the company has developed its market. However, in COVID pandemic situation and for different socio-economic conditions the company faced a huge loss in the regions (, 2021). Therefore, the company should tryto improvethe performance in those regions. With improvementof product variety and controlling the price range. In Asian market, the numbers of competitors are increasing day by day therefore the company should improve the functionality in both the regions. Online platforms of the company would improve the range of different products in the company for betterment of the brand.

Data Analysis and Findings

Product development

Most of the products of the company carry British legacy and heritage therefore, similarity of products might be found. Therefore, the products should improve the globalised identity of the company. Moreover, new products would help to expand the variety and range of the products so that the number of customers would be improved in the newly explored market of the company. Better accessories and a high range of apparels should be endorsed in the market of the company. The online platform should endorse and promote different types of products to improve the image.

Product differentiation

In the e-commerce platforms, the company should endorse different types of products rather than traditional trench coats and bags. With the help of personalization and customization of the products, the company can help to improve product variety and differentiation. The runway collection of the products would help to improve the revenue of the company by 10-12%. The product differentiation would improve the popularity of the flagship store in online platforms


7P marketing mix

Marketing mix Analysis
Product Accessories for both sexes and kidsSunglass fragrance clothes and beauty productsTrench coats and scarves are the signature productsBurberry touch, Burberry brat and Burberry weekend are the product lines  
Price High and premium pricing can be observedLuxury product range with direct price marketing mixBeta durability and perception should be reflected in pricing strategyThe brand has an annual revenue of more than $2 billion
Place Burberry has thousands of stores across the worldMost of the stores are situated in populated areas and metropolitan cities 
Promotion In TV and social media, promotion would be occurredCelebrity endorsementOnline promotion Digital marketingPrinting media
People Sales force and executivesCommitted people
Process Innovation and improvementTimely deliveryBrand management
Physical evidence Feedback for better performanceShoppers friendly atmosphereHigh purchasing in packaging

Table 3: Marketing mix

Source: (inspired by Pogorelova et al., 2016)



  Activities Q1 Q2 Q3 Q4
Objective 1 Increase product development        
Objective 1 Better product distribution        
Objectives 1 and 2 High promotion        
Objective 2 Creating flagship product labels        

Table 4: Gantt chart

Source: (Self-created)


Balanced Scorecard Benchmark Action Strategy KPI Time
Customers High rated promotion and advertisement would help to improve the market Market penetration and development Gross margin, growth revenue Q3 2022
Product New product launches and better brand development Product development Customer Acquisition Cost, Customer Lifetime Value and Retention rate Q3 and Q4 2022
Distribution High range of distribution and better sales channel distributions in the market Market and product development Inventory accuracy, Inventory turnover   Q2,Q3 2022
Online presence Flagship product sales in websites and better product marketing Market development Conversion rate Q3, Q4 2022

Table 5: KPI management and actions

Source: (Self-created)


The report has analysed that Burberry is one of the most reputed brands across the world. On the other hand, the company has analysed both strengths and weaknesses. Both actions and strategic management would helpto improve the understanding about Burberry. The company’s different factors in the marketing mix have been described as the development of the brand. Action and control would improve the brand management through the report.


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