Ultimate aim of any organization is to gain maximum profit (Wilson, Zeithaml and Gremler, 2012). In order to achieve this, it is only possible when firm is able to fulfil their needs and requirements. Present report is based of two organisations which are Burberry and Prada, both deal with fashion industry. This report covers various elements of marketing mix of both companies. Lastly, it also includes development of marketing plan for Burberry fashion organisation.
Business objectives of Burberry and Prada are as follows:
- To raise their profitability and market share.
- To make improvement in customers services.
- To main the financial condition of the firm.
- To increase customers base by raising quality of products and services.
- To reduce the rate of employees retention.
- To make proper competitive analysis.
7Ps Marketing mix for both companies
Marketing mix can be determined as the operational part for preparing marketing plan. It is beneficial for the organisation to make sure that they distribute the product or service effectively to customers. There are about seven elements that are involved in marketing mix. Below given are the marketing mix for Burberry:
Product: There are different type of product range that is provided by cited firm. In this context, it includes timepieces, cosmetics, clothing, etc. (Chaffey, Smith and Smith, 2012). All the products delivered by them have unique design and is helpful to attract customers interest. Further, it includes fragrance collection like Burberry Brit, Burberry Touch. Burberry Weekend, etc.
Price: All the products are luxurious items and so that make use of premium pricing which fall under high class elite zone. The quality provide by this firm is too high that the cost cannot be compared. The price for all the products is high as the demand is very high.
Place: There are about 500 locations in which they have stores. More specifically, it is spread over 50 countries (Boonpradub and Thechatakerng, 2015). Companies products are sold with the help of branded stores and through global franchises and it also makes use of third party dealers.
Promotion: There are many different type of promotional strategies used. In this context, they make use of television, radio, newspapers, internet, etc. Among all these, they mainly make use of print media and that is with the help of magazines. Further, they have brand ambassadors like Roald Amundsen (First person to reach South Pole) and celebrities like George Mallory and Ernest Shackleton.
People: They are the face of organisation. In order words, they are the one who present the services and products to customers. Management understands their importance and make sure that they perform their roles and responsibilities effectively and efficiently.
Process: This is way in which product reaches customers. Cited firm make sure that customers are provided with after sales services. This is done in order to make sure that they develop strong relationship with their customers (BÃâÃâcilÃâÃâ, Pop and Drule, 2012). It is the service procedure that is used by the organisation in order to make sure that adequate services are provided.
Physical evidence: This is the display that is make use by the products given by Burberry. Further, it includes the location of service industry. This is done as it makes lot of difference for the experience of users.
Below given are marketing mix of Prada:
Product: Provide customers with luxury products for both women and men. In this context, it includes footwear, home products, eye wear, leather good, clothing, etc. (Shirsavar and Fashkhamy, 2013). Moreover, it includes cosmetics, jewellery and handbags for women.
Price: They make use of premium pricing strategy and they have luxury line of products. This is because they have high brand value and as per the quality they charge their customers with high price.
Place: There are many countries around the world in which they have established their business. In this context, it includes countries like UK, Austria, India, Australia, Asia, USA, UAE, Europe, Canada, etc.
Promotion: They have their own website in which all the information about their products and services included. Further, they make use of magazines like Elle and Vogue. Moreover, they also make use of television and social media (Roshani, Zad and Bijarchi, 2015).
Process: The process from purchasing of products and till making it use highly effective. Further, firm also provide their customers with after sales services and this is helpful to develop strong relationship with customers.
People: They are the one who present the services and products to customers. They provide their customers with proper training so that they will be able to make use of their full potential through customers can be provided adequate services. (Roshani, Enayati and Lashkary, 2013)
Physical evidence: Distribution done for the product by cited company is highly effective. It enables to attract or grab attention of customers.
Marketing plan for Burberry
Marketing plan is A statement which describes how a product will accomplish its target in market area. In another words, marketing plan is a detailed written statement specifying target, marketing programmes, responsibilities, time scales and resources to be used, within defines budgets (Brassington and Pettitt,2007). It is Developed and executed by organisations for selling a specific product and services to consumers. Marketing plan designed in a systematic way supports in accomplishing desired goals of the entity and vision and mission of the entity are aligned with the brand.
Most marketing plans are conducted annually. It could be geographically based, product based, business unit based or oriented towards specific segments (Brassington and Pettitt,2007). Marketing plan is essential for every firm to ensure targets are achieved and to provide an early warning of things going wrong. In addition to this, it follows corrective measures to be taken soon (Brassington and Pettitt,2007). In Burberry, the purpose of market planning to find a systematic way of identifying a range of options, choose one or more of them, then to schedule and cost out what has to be done to achieve the objective (Brassington and Pettitt,2007).
Marketing plan enables to develop path on which information about the new products can be delivered to customers. With this respect, below given are the marketing plan for Burberry:
Executive summary: - The marketing plan introduces a new product that is SOAP which is consumable for male and female consumers. The product is designed for providing better sanitation services to consumers. Below is a summarisation of the marketing plan.
Company overview: -
The concept for developing new soap is based on improving the living standard of people by providing them better sanitation services. The new soap product of the enterprise is available at reasonable price and medium and lower income group consumers. The main objective for launching this product is to enhance profitability and financial revenue of the entity so that competitive advantage can be gained for the business.
Product and Services: - The new soap product is available for all age group people and attributes and features of this product make it differentiated from other products that are available in market. It is available at lower price range and these products helps in skin whitening.
Market and industry analysis: - cosmetic industry is having demands for products that supports in skin whitening and new soap product of the company has potential to meet this demand. It has been observed from market analysis that this soap product has potential for capturing huge market area and enhancing financial revenues and profitability of the entity.
Marketing plan: -
Product: Cited firm has developed a new product that is soap. This will be for both men and women. The product will be for all the age groups. This soap will enable to get skin whitening. In addition to this, it can also be applied on face as a face wash.
Price: The product will be sold for low price. In which context, there will be comparison made of organisation which provide similar product (Gordon, 2012). The price will be kept low comparing the price that is determined by competitors.
Price will be kept in the range of Â£5- Â£6. It is reasonable price and each consumer belonging from middle and lower income group can easily avail it.
Place: All physical stores will be selected and in all its stores this product will be sold. In addition to this, product will also be distributed online. The rate of internet users is increasing drastically and this will help to attract more and more customers.
Promotion: In order promote the product, firm will make use of television, magazines, radio, newspaper and social media. Further, as a promotional strategy, organisation will also provide free gifts and discount offers with this product (Mishra and Sinha, 2014). This way strong customers base will be developed. Attractive discount schemes will be given such as % off on purchasing three soaps together. It will aid in enhancing sales of soap products and profitability of the enterprise will also enhance through this.
People: New people will be hired how will be trained and they will be able to present the product to customers. Employees are the face of organisation as they have direct interaction with services. They are helpful enough to increase the sales and profitability.
Process: This is the process through which the product reaches customers. Customers can get the products directly from the physical store. In addition to this, people will be able to get the product or purchase it online. This will be able to reach out customers effectively and efficiently.
Physical evidence: The physical presence of this product will be done in such a way that people will get attracted to it (Makvandi, Aghababapoor and Mondanipour, 2013). Further, they package that will be in three different colours. This will be helpful enough to grab attention of service users.
Development strategy: - Three main stages will be including and they contain technical, strategic and commercial and stage.
Commercial advantage: - The new soap product has potential for capturing large market area as this product offers unique whitening properties.
It is available at reasonable price which makes it different from soap products that are offered by business consumers (Roshani, Enayati and Lashkary, 2013.
Target consumers: - This product is suitable for consumers belonging from all age groups and gender. It meets the needs of buyers and it has unique properties that it helps in skin whitening.
USP: - products is available at lower price than soap products that are available in market.
Pricing strategy: - Soap products will be available at lower price range and positioning of the product will be done as reasonable prices skin whitening soap.
Distribution plan: - This is the process through which the product reaches customers. Customers can get the products directly from the physical store. In addition to this, people will be able to get the product or purchase it online (Chaffey, Smith and Smith, 2012). This will be able to reach out customers effectively and efficiently.
Offers: - 10% Discounts will be given on purchasing three soaps together.
Marketing material: - Promotions of soaps will be done by making use of effective advertisings and it includes publishing advertisement on newspapers and giving advertisement on different websites.
Online marketing strategy: - Use of social networking sites will be taken for promoting the products. Attractive advertisement will be given on Facebook, YouTube, Instagram and Twitter.
Steps taken by Burberry in terms of marketing mix to achieve marketing objectives
The objective set by cited firm to make sure that Customers base is raised
In order to achieve this business objective, management will follow the below given steps:
Seasonal offers: During festivals, the rate of purchases made are high and this can be raised more by delivering customers with special offers. In this context, it includes festivals like Xmas, Summer, Easter, etc.
Loyalty cards and vouchers: Loyalty cards are provided to customers who regular buyers for the product of Burberry. For each of the purchases made provides them with points and it gets increased when purchases are done of the products. Further, vouchers will be provided for certain products.
To reduce the rate of employees retention.
Strategies to achieve this objective:
Understanding issues: All the issues that are faced by workers will be identified and it will be done interaction. With the help of effective communication, managers will develop trust and confidence. According to the issues faced, management will take steps. This way the performance level can be raised and customers will be satisfied.
To make proper competitive analysis
Strategies to achieve this objective:
Suggestions from employees and feedback from customers: Employees have direct interaction with customers so they know the problems that are faced by customers. This way improvements will be made and better services will be done compared with competitors. Customers make use of the services and so by getting feedback will enable to know the strategies that are used by other companies to attract customers
As per the report make, it can be articulated that when organisations want to introduce new product or services, before that they should make wide market research and proper evaluation so that they will be able to understand the customersâ needs and requirements. Accordingly, products should be developed so that customers can be satisfied. Further, employees are the face of organisation as they have direct interaction with services. They should be provided with proper training so that they meet all requirements of their customers which significant part of the organisation's overall objectives.
- BÃâÃâcilÃâÃâ, M. F., Pop, M. D. and Drule, A. M., 2012. Was luxury little researched? An exploration of studies and research trends in the area of marketing of luxury goods, before 2005. Management & Marketing-Craiova, (2), pp.325-340.
- Boonpradub, W. and Thechatakerng, P., 2015. Brand Endorsement by Celebrity in Thailand: 7Ps of Marketing Mix and the Impact of Brand Alliance. International Journal of Trade, Economics and Finance. 6(1). pp.8.
- Chaffey, D., Smith, P. R. and Smith, P. R., 2012. eMarketing eXcellence: Planning and optimizing your digital marketing. Routledge.
- Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix. Australasian Marketing Journal (AMJ). 20(2). pp.122-126.
- Makvandi, F., Aghababapoor, T. and Mondanipour, I. N., 2013. Studying the Effect of Internal Marketing on Employees' Self-Esteem Case Study: Employees of Isfahan University of Medical Sciences. International Journal of Academic Research in Business and Social Sciences. 3(12). pp.519.
- Mishra, T. and Sinha, S., 2014. Employee motivation as a tool to implement internal marketing. International Journal of Commerce, Business and Management. 3(5).
- Roshani, S., Enayati, G. and Lashkary, M., 2013. The Investigation Of The Effects Of Internal Marketing On The Services Quality Emphasizing The Role Of Intermediate On Organizational Citizenship Behaviours (Case Study Of The Banks Of Esfarayen City). Interdisciplinary Journal Of Contemporary Research In Business. 4(10). pp.929.
- Roshani, S., Zad, M. R. K. and Bijarchi, M. H., 2015. The investigation of the effects of internal marketing on the services quality emphasizing the inter madiate role of organisational citizenship behaviours (case study of Esfarayen city banks). Journal of Scientific Research and Development. 2(3). pp.203-209.
Marketing can be determined as a process in which firms aims at providing information to customers regarding the products and services that are delivered. Ultimate aim of any organization is to gain maximum profit (Wilson, Zeithaml and Gremler, 2012). In order to achieve this, it is only possible when firm is able to fulfil their needs and requirements. Present report is based of two organisations which are Burberry and Prada, both deal with fashion industry. This report covers various elements of marketing mix of both companies. Lastly, it also includes development of marketing plan for Burberry fashion org