International marketing report: Burberry

Résumé du document

For the purpose of this report, the analysis of the product element of the marketing mix will incorporate the analysis of the product itself and its design, brand, packaging and positioning across international markets.

Positioning - In this case, positioning can be considered the most important part of the product element as it dictates all the others. Burberry is positioned as a luxury brand that expresses the authentic British lifestyle. This positioning is standardized to maximum across all the markets the company operates in so that brand dilution does not occur. The following perceptual map illustrates Burberry's positioning, alongside other well-known luxury brands.

As Lee and Usunier (2005) argue, a company should "standardize as much as feasible and customize as much as needed" when operating across different international markets. Burberry's product range includes men's, women's and children apparel, complemented by a wide variety of "soft" accessories (scarves, shawls, ties) and "hard" accessories (handbags, women's shoes, umbrellas, eyewear, watches). Another classification of Burberry's products would be continual (e.g. the classic trench coat) and seasonal (sold as a specific collection in one season).

Extraits

[...] and Sukumaran, N Contextual and methodological issues in COO studies. Journal of Marketing Intelligence and Planning [e-journal] pp. 66-81. Available through Emerald database [Accessed 26 November 2011]. Bruce, M., Moore, C. and Birtwistle, G International Retail Marketing a Case Study Approach. Oxford: Elsevier Butterworth-Heinemann. Burberry Corporate responsibility annual review [pdf] Available at: [Accessed 19 November 2011]. Burkitt, L Burberry stores in China get digital makeover. Wall Street Journal, [online] 14 June. Available at: [Accessed 19 November 2011]. [...]

[...] Through this multi-range of products, Burberry has maximum market and consumer appeal coverage. Burberry also recognised that adaptation is important for the markets in which the product is at a different stage of its life-cycle. Such an example would be the emerging Asian markets where the products are in the growth stage vs. the home market where the products can be considered to be in the maturity stage. Therefore, it can be argued that the product design is adapted to a large extent in certain international markets. [...]

[...] This was followed by wholesale agreements in Japan which represented Burberry's first steps into Asia. These agreements helped Burberry build a series of relationships with local distribution companies which afterwards became Burberry's licensees (Mitsui and Sanyo). When Burberry was acquired by the British retailer Great Universal Stores, a greater expansion in international markets started, especially towards the US market. This brief description of Burberry's international expansion helps in identifying which IP theories best apply to their case Dunning's Eclectic Paradigm It can be argued that this theory can be applied to Burberry because of the markets they entered in order to exploit a set of advantages (as detailed in the table below). [...]

[...] and Birtwistle, G The Burberry business model: creating an international luxury fashion brand. International Journal of Retail and Distribution Management [e-journal] pp. 412-422. Available through: Emerald database [Accessed 17 November 2011]. Moore, C. M. and Birtwistle, G The nature of parenting advantage in luxury fashion retailing the case of Gucci Group NV. International Journal of Retail and Distribution Management [e-journal] pp. 256- 270. Available through: Emerald database [Accessed 25 November 2011]. New York Fashion Behold: Emma Watson's Burberry Campaign. [...]

[...] It can be argued that the same type of distribution channels are standardised to a maximum extent across markets (e.g. company own stores or flagship stores have the same functions and are the same everywhere), whereas on the other hand not all types of distribution channels are utilised in all the markets, meaning that from this point of view, Burberry adapts to a maximum extent, being able to identify which market needs what. It is very likely that the company adapts partly because of its own decision (recognising that some distribution channels work better in some markets) and partly because it is forced to (this might be the case in Japan, as the Japanese distribution structure distinguishes itself because of the Japanese business philosophy that “emphasises loyalty, harmony and friendship” (Cateora and Graham, 2008); this implies long-term and strong relationships between dealer-supplier, which forced Burberry to rely on local respected licensees for its distributions) Promotion Promotion represents the most cultural-based and localised element of the marketing mix. [...]