Executive Summary

The marketing plan report covers Burberry’s fragrance line, which is a part of the London-based luxury fashion brand. The report examines the fragrance market’s strategic position and provides a mission statement for Burberry. Brexit and digitalisation challenges are identified through PESTLE analysis, whilst Porter’s Five Forces analysis shows that new entrants are fragmenting the bath and shower market by capitalising on health consciousness as a social trend. Furthermore, digitalisation is exacerbating the threat from existing competitors, with low switching costs and brand loyalty also playing a role. The internal analysis identifies Burberry’s enduring legacy of quality and exclusivity as a major strength. In contrast, the unfavourable reputation linked to a few of the brand’s prior campaigns is deemed a considerable weakness. The report has highlighted the increase in demand for moisturising cleansers that can be used by mid-youth millennial females who are employment seekers, posing a great opportunity. The marketing audit led to the proposal of SMART objectives in the report. The objectives aim to increase Burberry’s fragrance line sales by 15% by August 2021. The report suggests that offering more job opportunities to ethnic minority graduates can help increase the brand’s appeal to a more diverse audience. A target marketing strategy of niche marketing based on social grade, demographics, VANS Lifestyle, and product benefits sought is recommended in order to achieve these objectives, according to the report. Burberry’s fragrance line will be positioned as a luxurious and sophisticated product that embodies the brand’s image using the marketing mix, which includes product, price, place, and promotion. In addition, the marketing mix endeavours to present the Burberry brand as an advocate for uniqueness and inclusiveness. Lastly, the report describes a Gantt chart that presents a timeline of marketing activities and a cost and budget plan for implementing the proposed marketing strategy.

Introduction

Burberry is recognised as a luxury British fashion brand with iconic trench coats, distinctive check patterns, and timeless designs. In 1856, the brand was founded, and it has expanded its product line to include fragrances, accessories, and ready-to-wear clothing since then (Gilroy, 2023). Being a household name, Burberry’s signature style is a favourite among celebrities and fashion enthusiasts. Burberry has been trying hard to attract a wider range of audiences in recent years by promoting inclusivity and sustainability. To mitigate its environmental impact, the company has introduced initiatives such as using sustainable materials and partnering with manufacturers, prioritising ethics. To connect with younger audiences beyond traditional luxury consumers, Burberry has collaborated with social media influencers and musicians (Batat and Batat, 2019). This report intends to recommend a marketing plan that can enhance the sales and appeal of Burberry’s fragrance line among a wider audience. The report will investigate how Burberry can position its fragrance line as a luxurious and sophisticated product embodying inclusivity and individuality by utilising its heritage and image.

Mission Statement

Craftsmanship, heritage, innovation, and luxury are the key brand values that Burberry focuses on in its mission statement. The company strives to create products that embody the British style’s timeless beauty and sophistication. The mission statement emphasises how the brand’s heritage shapes Burberry’s approach to design and innovation (Matejka et al., 1993). Burberry’s mission statement states, “Our mission is to create enduring British style and design, recognised and appreciated around the world, for all generations” (Silvano, 2020). This quote underscores the brand’s emphasis on designing timeless pieces for a worldwide audience. The iconic trench coat has been a fashion staple for over a century, showcasing Burberry’s dedication to British style and design. Besides its commitment to design and craftsmanship, Burberry prioritises sustainability and social responsibility. Burberry aims to minimise its environmental footprint and positively impact communities, as stated in its mission statement. The quote highlights the company’s dedication to achieving this goal. Burberry’s mission statement underscores the role of innovation and technology in the brand’s design approach. The statement from Burberry highlights their dedication to utilising digital technology to drive growth, improve efficiency, and maintain a competitive edge in the fashion industry, all while continuing to innovate and captivate their customers.

Corporate Objectives

Corporate objectives guide Burberry’s strategic decisions and overall direction as a company. Sustainable growth and profitability over the long term are primary objectives for Burberry. This objective is achieved by emphasising innovation, investing in crucial areas of growth, and preserving a solid brand reputation (Dobos and Éltető, 2023). Burberry’s corporate objective of enhancing its digital capabilities and leveraging technology is to improve the customer experience. The company has heavily invested in building its online presence and e-commerce capabilities, recognising the growing importance of digital channels. To connect with customers and exhibit its products creatively, Burberry has included social media, mobile apps, and augmented reality in its digital strategy. Burberry’s commitment to these objectives includes operating socially responsibly and sustainably. The Burberry Foundation is among the initiatives the company has implemented to reduce its environmental footprint and support local communities through target setting.

Marketing Audit

By examining Burberry’s fragrance line in the UK market, this marketing audit intends to determine its strengths, weaknesses, opportunities, and threats (Hovell, 1979). This audit offers Burberry valuable input for creating an impactful marketing strategy for its fragrance products in the UK, using a PESTLE analysis, Porter’s Five Forces analysis, and internal analysis.

External Analysis

PESTLE analysis

PESTLE analysis is useful for analysing the external macro-environmental factors that can impact a business or industry. Appendix 1 is a PESTLE analysis of Burberry’s fragrance line in the UK market.

Porter’s Five Forces

Porter’s Five Forces analysis for Burberry’s fragrance line in the UK is as follows:

The threat of new entrants: The UK fragrance market is highly competitive with many established brands, making new entrants a potential threat. Despite this, the market may still see new entrants due to the growing demand for natural and organic fragrances. This could endanger Burberry’s market share.

Bargaining power of suppliers: The bargaining power of suppliers sourced from various sources can be influenced by the size and scarcity of fragrance ingredients. Burberry being a well-established brand means it probably has strong supplier relationships and, thus, a bargaining advantage.

Bargaining power of buyers: Consumers in the UK fragrance market have a wide range of options, making their bargaining power relatively high. Additionally, the rise of e-commerce has made it easier for consumers to compare prices and product features, increasing their bargaining power.

The threat of substitutes: There are many substitute products available in the UK fragrance market, including natural and organic alternatives, essential oils, and scented body lotions. This could pose a threat to Burberry’s sales.

Competitive rivalry: Burberry’s fragrance line faces intense competition from established brands such as Chanel, Dior, and Gucci, as well as from newer players in the market. This competition could lead to price wars and decreased market share.

Competitor Analysis

The competitor analysis conducted in the UK market for Burberry’s fragrance line exposes numerous key players. Euro monitor reports that Chanel has the largest market share at 15.2%, followed closely by Dior at 14.9% (Euromonitor International, 2014). Euromonitor International (2014) reported that Gucci, Tom Ford, and Prada are also among the notable competitors, with shares of 7.8%, 5.6%, and 4.9%, respectively. To identify potential opportunities or threats to Burberry’s performance, strategic group analysis will be utilised to identify close competitors and their strategic movements (Reger and Huff, 1993). Targeting mid to high-end consumers, Burberry’s fragrance line emphasises quality and luxury. The brand operates within the premium fragrance sector, competing with other high-end brands such as Chanel and Dior. The analysis will provide insights into the competitive landscape of the UK fragrance market, helping Burberry to identify its strengths, weaknesses, opportunities, and threats in relation to its competitors.

Internal Analysis

SWOT and TOWS analysis

The SWOT analysis will thoroughly assess Burberry’s strengths, weaknesses, opportunities, and threats in the UK fragrance market. The analysis will evaluate the brand’s performance in the market, considering internal and external factors (Coman and Ronen, 2009). The framework for strategic recommendations presented by the TOWS analysis will align with the brand’s objectives and available resources, building on the SWOT analysis. A comprehensive breakdown of the findings and recommendations resulting from the SWOT and TOWS analysis will be included in Appendix 2 to ensure the focus and clarity of the main essay.

SMART Objectives

The first SMART marketing objective seeks to increase sales of Burberry’s fragrance range in the UK by 15% by the end of the year through directed promotions and advertising campaigns. This goal has been specified, quantified, achievable, relevant, and has a time limit. Targeting sales for the fragrance line in the UK market is the specific objective. The 15% increase in sales is a measurable metric. Sales can be increased through targeted promotions and advertising campaigns, which makes it achievable. As increasing sales is a common marketing objective, it remains pertinent. The specified deadline makes the objective time-bound.

The customer base for Burberry’s fragrance line will be expanded by 10% by the end of the year, targeting younger demographics through social media marketing. This is per the second SMART marketing objective. The specific objective involves targeting a certain customer demographic through a marketing channel. Quantifying it can be done through the 10% increase in the customer base. Effectively targeting younger demographics through social media marketing makes attainability possible. Expanding the customer base is a common marketing objective, but its relevance cannot be denied. The objective has a specific deadline making it time-bound.

By introducing loyalty programs and personalised marketing tactics, the third objective strives to increase Burberry’s fragrance line repeat purchases by 20% by year-end, aiming to improve customer loyalty. The aim is to enhance customer loyalty by introducing loyalty programs and customised marketing strategies. Measuring repeat purchases involves a 20% increase. Loyalty programs and personalised marketing can increase customer loyalty, making it achievable. Businesses consider customer loyalty as very important, hence its relevance. Its time-bound nature stems from the objective’s specific deadline.

The fourth SMART marketing goal is to raise brand awareness for Burberry’s scent range in the UK by 25% through the release of a new fragrance line and focused advertising initiatives. Targeted advertising campaigns and launching a new fragrance line are the specific objectives to achieve brand awareness. Brand awareness has increased by 25%, which can be measured. By using targeted advertising campaigns, increasing brand awareness becomes attainable. For businesses, brand awareness is essential, hence its relevance. The deadline for the objective makes it time-bound.

Marketing Strategies

Segmentation

Burberry segments its fragrance line based on demographics, psychographics, and behaviour (Hoek et al., 1996). The company focuses on customers who value luxury, style, and elegance. Burberry’s fragrance line aims at fashion-conscious women with a high disposable income within the age group of 25 to 45 years old. Burberry aims at luxury fragrance enthusiasts who are both working professionals and homemakers within this segment. Psychographically speaking, Burberry’s fragrance line caters to consumers who prioritise quality, sophistication, and status. The brand positions its fragrances as exclusive and high-end products that attract customers ready to pay extra for luxurious items. Burberry segments its fragrance line based on how consumers behave as well. The trademark proposes a variety of aromas that serve different circumstances and sentiments. Burberry’s range of fragrances includes fresh and light scents perfect for daytime wear and heavier, more seductive scents ideal for evening wear. By using this segmentation tactic, Burberry can attract a broader audience with varying scent preferences.

Targeting

According to the above segmentation strategy, Burberry’s fragrance line focuses on a particular set of consumers who appreciate luxury and style. Women aged 25 to 45 with high disposable income and a fashion-conscious mindset are the primary target market for Burberry’s fragrances. Psychographics, like a preference for quality, sophistication, and status, can be used to further segment the target market. Burberry focuses on this market segment by utilising various marketing strategies, including working with other luxury brands, hosting exclusive events, and enlisting celebrity endorsements. Burberry has collaborated with luxury carmaker Bentley to release a limited-edition perfume that appeals to customers who value exclusivity and high-end goods (Roberts, 2022). Burberry segments its fragrance line based on consumer behaviour, in addition to targeting consumers by demographics and psychographics. The company provides a variety of scents suitable for various occasions and moods. For instance, they offer refreshing and lightweight fragrances for daytime use and more intense and romantic fragrances for evening wear. This segmentation strategy allows Burberry to target a broader audience with differing fragrance preferences.

Positioning

Burberry’s fragrance line signifies British style and sophistication luxuriously. Fragrances created by the company attract those who value luxurious and classic scents that showcase the brand’s legacy and skill and appeal to both males and females. The familiar check-patterned packaging used for Burberry’s fragrance line is widely associated with elegance, refinement, and sophistication. The company markets perfumes to a luxury audience and sets the price accordingly. Burberry markets its fragrance range as a luxurious, high-quality brand offering enduring fragrances with a contemporary twist.

Marketing Mix

The four fundamental elements of a prosperous marketing strategy: product, price, promotion, and place (Reid, 1980), are outlined in the marketing mix, commonly known as the 4Ps. Burberry can leverage this marketing mix to craft an engaging brand experience for its fragrance line customers in the UK.

Product

Burberry’s fragrance line consists of various perfumes for men and women designed to evoke the brand’s signature style and luxury (Silvano, 2020). The products are packaged in elegant bottles and feature unique scents created using a blend of high-quality ingredients. Burberry’s fragrance line also includes limited-edition releases, adding exclusivity and urgency to the brand’s offerings. Overall, Burberry’s fragrance line is positioned as a premium product that offers customers a high-end, luxury experience.

Price

Burberry’s fragrance line is positioned as a premium product, costing more than other fragrances sold in mass-market. By implementing this pricing strategy, the brand can create an exclusive and luxurious image (Piovan, 2022). The cost of Burberry’s fragrance products changes depending on the item, with limited edition releases generally being pricier. Burberry entices customers with discounted prices on bundled products in their gift sets.

Promotion

Print and digital advertising, social media, and influencer partnerships are among the marketing channels utilised by Burberry to promote its fragrance line (Rees-Roberts, 2020). The brand’s advertising campaigns aim to capture the essence of the Burberry brand’s signature style and luxury, showcasing its products through high-end photography and video that inspires aspiration. Burberry uses partnerships with influencers and celebrities to promote its fragrance line, using its influence and reach to increase sales and create brand awareness.

Print and digital advertising

The marketing strategy of Burberry has included print and digital advertising for many years. The company reaches a broad audience by using print ads in high-end fashion magazines and digital ads on fashion websites and social media platforms (Sergio, 2020). Typically, elegant and sophisticated print ads showcase the fragrance bottle and iconic Burberry check pattern in high-quality images. Featuring videos and animations, the digital ads, however, are more interactive in showcasing the fragrance and its essential ingredients.

Social media

Recently, Burberry has added social media to its marketing mix as an increasingly important component. The enterprise has a robust existence on channels like Instagram and Facebook, where it can communicate with its target audience and involve admirers (Khelladi and Castellano., 2019). Burberry displays its fragrance line on social media in numerous ways, such as sharing pictures of the fragrance bottle and publishing videos of people using it in real-life scenarios. The fragrance company also operates social media campaigns that motivate fans to share their photos and experiences, creating a sense of community around the brand.

Influencer partnerships

Burberry’s approach to promotion now includes making influencer partnerships a pivotal factor. The company collaborates with diverse influencers, from fashion bloggers to celebrities, to advertise its fragrance line. Influencers are commonly provided with free fragrance samples to test, and later, they share their viewpoints and encounters with their followers. To display the fragrance in a more comprehensive and captivating way, Burberry partners with influencers to create sponsored content, such as Instagram posts or YouTube videos. Actress Lily James had a notable partnership with Burberry’s fragrance line. Burberry announced James as the face of their new fragrance, My Burberry Black, in 2016 (Brugger, 2020). A short film directed by Mario Testing was included in the partnership, along with a series of print and digital ads featuring James. The fragrance campaign created hype and sparked curiosity among James’ followers.

Place

The fragrance range of Burberry is available on different channels like department stores, speciality retailers, and the company’s e-commerce platform. Customers can experience Burberry’s fragrances firsthand at the brand’s physical retail locations (Chevalier and Gutsatz ., 2020). The retail locations of Burberry are created to be elegant and stylish, which produces an exclusive and luxurious atmosphere that corresponds with the brand’s overall image.

Implementation and Controls

Burberry’s fragrance line in the UK will be promoted through a set of scheduled marketing actions delineated in Appendix 3’s Gantt chart (Checchinato., 2021). The marketing team will closely oversee and regulate the execution of the marketing plan to make sure it is implemented within the designated timeline and budget constraints. The succeeding control mechanisms will be established to guarantee the achievement of the set objectives:

• The marketing plan’s progress against the timelines and budget will be regularly reviewed.
• Monitoring and analysing performance indicators such as sales volume, market share, and customer feedback will determine the marketing plan’s effectiveness.
• The marketing team will also conduct periodic market research to evaluate the effectiveness of the marketing mix and adjust it accordingly.

The marketing team will ensure that all stakeholders involved in the marketing plan, including the production and distribution teams, suppliers, and marketing agencies, communicate and coordinate effectively, in addition to using the above control mechanisms. Efficient and timely completion of all marketing activities will be ensured.

Key recommendations

1. Strengthen Brand Positioning: To strengthen its brand positioning, Burberry should highlight its British heritage and the quality of its fragrances (Al-Jaberi, 2022). This can be achieved by emphasising the use of high-quality ingredients and craftsmanship in the production process and incorporating British cultural elements in marketing campaigns, such as iconic British landmarks.
2. Leverage Digital Marketing: Burberry should adopt digital marketing avenues to attract a larger audience and provide more appealing customer experiences (Mandelli et al., 2021). Creating immersive online experiences that enable customers to virtually sample fragrances, collaborating with influencers to promote the brand, and optimising the brand’s online presence through SEO and social media, marketing can achieve this.
3. Expand Distribution Channels: Exploring new distribution channels like e-commerce platforms, department stores, and speciality fragrance shops could help Burberry increase accessibility to its fragrance line (Park and Rhee., 2021). Increasing sales volume is possible by reaching a wider audience through this.
4. Invest in Product Innovation: Burberry should continue to invest in product innovation to remain ahead of the competition and fulfil its client’s changing requirements and preferences. Different customer segments can be targeted by introducing new fragrance variants and packaging designs.

References

Al-Jaberi, S.M.T., 2022. The direct effect of brand strategy and brand communication in building strong brand equity the case of Burberry (Master’s thesis, İstanbul Gelişim Üniversitesi Lisansüstü Eğitim Enstitüsü).

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Batat, W. and Batat, W., 2019. How millennials and post-millennials are reshaping luxury. The new luxury experience: creating the ultimate customer experience, pp.187-210.

Brugger, G., 2020. The strategic role of supply chain management in the luxury fashion sector.

Checchinato, F., 2021. The importance of data in transforming a traditional company to a digital thinking company: Interview with Fabrizio Viacava, chief digital officer of Etro. In Managing Digital Transformation (pp. 199-208). Routledge.

Chevalier, M. and Gutsatz, M., 2020. Luxury retail and digital management: Developing customer experience in a digital world. John Wiley & Sons.

Coman, A. and Ronen, B., 2009. Focused SWOT: diagnosing critical strengths and weaknesses. International Journal of Production Research, 47(20), pp.5677-5689.

Dobos, E. and Éltető, A., 2023. Regulation of the fashion supply chains and the sustainability–growth balance. Sustainability Accounting, Management and Policy Journal, 14(1), pp.101-129.

Euromonitor International., 2014. The Battle of the fragrance titans – J’Adore dior vs. Chanel…. Euromonitor. https://www.euromonitor.com/article/the-battle-of-the-fragrance-titans-j-adore-dior-vs-chanel-no-5

Gilroy, D.J., 2023. Little Book of Burberry: The Story of the Iconic Fashion House. Welbeck Publishing Group.

Hoek, J., Gendall, P. and Esslemont, D., 1996. Market segmentation: A search for the Holy Grail? Journal of Marketing Practice: Applied Marketing Science, 2(1), pp.25-34.

Hovell, P.J., 1979. The Marketing Concept and Corporate Strategy:: A Will‐o’‐the‐Wisp Relationship?. Management Decision.

Khelladi, I. and Castellano, S., 2019. Play it like Burberry!: The effect of reputation, brand image, and social media on e-reputation–luxury brands and their digital natives fans. In Handbook of Research on the Evolution of IT and the Rise of E-Society (pp. 281-300). IGI Global.

Mandelli, A., Piancatelli, C. and Arbore, A., 2021. Communication, business and digital transformation: the case of Burberry.

Matejka, K., Kurke, L.B. and Gregory, B., 1993. Mission impossible? Designing a great mission statement to ignite your plans. Management Decision, 31(4).

Park, J. and Rhee, Y.J., 2021. Analysis of digital marketing strategies of luxury fashion brands. Journal of the Korea Fashion and Costume Design Association, 23(1), pp.87-102.

Piovan, A., 2022. A Critical Analysis of Burberry plc’s Shareholder Wealth Creation in The Five years from 2016/17 to 2020/21.

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Appendix 1

Appendix 2

SWOT Analysis

SWOT Analysis for Burberry’s Fragrance Line in the UK:

Strengths

• Strong brand recognition and reputation in the UK market
• Wide range of fragrances appealing to diverse customer segments
• High-quality products with unique and recognisable scent profiles
• Strong distribution network, including Burberry stores, department stores, and online channels

Weaknesses

• Intense competition from other luxury fragrance brands in the UK market
• Relatively high price point compared to some competitors, which may limit sales to price-sensitive consumers
• Lack of diversity in brand ambassadors and marketing campaigns, potentially limiting the appeal to younger or more diverse audiences
• Limited customer engagement and interaction through social media and other digital channels

Opportunities

• Increasing demand for sustainable and eco-friendly fragrance products
• Growth potential in the male fragrance market in the UK
• Opportunities to expand into new distribution channels, such as speciality fragrance stores or subscription services
• Leveraging Burberry’s brand heritage and British identity to appeal to international tourists and consumers outside the UK

Threats

• Economic downturns or instability that may impact consumer spending on luxury products
• Increasing regulatory and legal pressures on fragrance products related to ingredients, sustainability, and animal testing
• Disruptions to global supply chains and shipping logistics, which may impact the availability of key fragrance ingredients or lead to production delays
• Increasing competition from new entrants or niche fragrance brands in the UK market

TOWS Analysis

Based on the SWOT analysis, some potential strategies for Burberry’s fragrance line in the UK include:

Strengths-Opportunities

• Capitalise on the growing demand for sustainable and eco-friendly fragrance products by launching a new line of environmentally conscious fragrances.
• Expand Burberry’s male fragrance offerings to target the growing male fragrance market in the UK.
• Develop marketing campaigns that leverage Burberry’s brand heritage and British identity to appeal to international tourists and consumers outside the UK.

Weaknesses-Opportunities

• Partner with popular social media influencers to increase customer engagement and reach younger and more diverse audiences
• Launch a more affordable fragrance line to appeal to price-sensitive consumers without sacrificing the quality and brand identity of Burberry’s fragrance products.
• Develop more diverse and inclusive marketing campaigns to appeal to a wider range of consumer segments.

Strengths-Threats

• Proactively address regulatory and legal challenges by prioritising sustainable, eco-friendly fragrance ingredients and production practices.
• Diversify supply chains and production facilities to mitigate the risks of disruptions to global supply chains and shipping logistics.
• Develop more targeted and effective marketing campaigns to differentiate Burberry’s fragrance products from those of competitors and retain market share in the face of increasing competition.

Weaknesses-Threats

• Conduct a thorough review of production and supply chain processes to identify areas for cost savings and efficiency improvements.
• Consider partnering with other luxury fragrance brands to leverage distribution channels and increase market share while minimising competition.
• Develop contingency plans for potential economic downturns or instability that may impact consumer spending on luxury fragrance products.