Burberry The Well Known Luxurious Brand Marketing Essay

Burberry The Well Known Luxurious Brand Marketing Essay Burberry, the well-known luxurious brand, comes from England. It has existed since 1856, and was originally made by Thomas Burberry, of London. Currently, Burberry is an international brand and their multiple shops are located all over the world. The main office of the company is in London. Burberry was famous for the exquisite coats of its original time; however, nowadays Burberry sells coats, accessories, perfume, glasses (Burberry, 2010) Burberrys logo (HaiBao, 2010) 1.1.2 Prada Next, Prada is also a luxurious brand from Italy since 1913. Additionally, it started with the high-class leather by Mario Prada. The products of Prada are concerned modern style and trends. Not only the quality of Prada, but also the performance of modernistic art. Prada has been famous, over 100 years due to its handbags. (Prada, 2010) PRADA logo (2010, soutuzi) 1.2 Theory 1.2.1 Market segmentation According to Hall et al (2008), market segmentation is how a Business divides the features-such as geographically, demographically and behaviorally into sub-groups and how it attracts different types of consumers. 1.2.2 Marketing mix Hall et al (2008) reports that market mix also called four ps-products, price, place and promotion. It is the factors of the market that related to the firms strategy. 1.3Aims The goal of this report is to analyze the market segments as well as the market mix of Burberry and Prada. After that, Burberry is more affordable than Prada. Finally, it includes the recommendation. 2. Findings Discussion 2.1 Segmentation First, Burberry is divided into three sections; there are Burberry London, Burberry Bailey and Thomas Burberry. Since 1997, the new director came to Burberry. Therefore, it also had changed the style of Burberry, which provides the products to the elders, soldiers and the royal members; and it faces the wider customs from all over the world (Burberry, 2010). It could say the demographically of Burberry is all of the youth and the elders. Additionally, according to the Haibao, Burberry established the series called Thomas Burberry. It is suitable for the younger; however, as compare to the Burberry London or Burberry Bailey, T.B is more popular with consumers, because of the lower price and the younger styles. Another strategy of Burberry is geographical region. As for the market shares, Burberry is devoted in the Asian area and the United States. Burberry (Burberry, 2010) announced Sales all over the world is increased by 25% totally, and China takes up 15%, although the main area is still in the Europe. For instance, in 2009, Burberry set a multiple shop in Beijing. Actually, Burberry only chooses the place that has the most shoppers, especially the wealthy. Therefore, the majority of geographical regions are the large cities, such as Beijing, Shanghai in China. It is to say that the different areas citizens have different lifestyle and atheistic standards. Regions (2010) Following the findings above, everybody can know about the segmentation of Burberry. For example, Burberry targets young women, men and children. The measure of this segment is age and gender. As comparison, Pradas marketing segmentations is geographical, demographical and psychological. It is reported by Haibao that the majority of handbags are for mature women and the suits for successful men (2010). The age of consumers is apt to be older. Amount of consumer is high-class. Prada insists in Less is more (Prada, 2010). The fashion company aims at the youth, which can get high salary. Prada is a familistic brand all the time. Miuccia Prada and her husband, Patrizio Bertelli considered that they would do the vendition in Hong Kong firstly. According to Tammy (2010), one of the managers in Prada stated the company would choose Milan, London and New York in time. In China, Prada (Prada, 2010) located in Tianjin, Beijing, Shanghai, Xian, Dalian, Shenzhen and Guangzhou. 2.2 Marketing Mix 2.2.1 Products Burberry produces the products, which includes coats, women, men, womens accessories, bags, shoes, scarves, gifts, beauty, children and perfume. Burberrys new managerManley (Manley, 2010) announced that Manley previously looked after all communications aspects across traditional and new channel such as new stars and Internet service (Manley, 2010).In current, Haibao reports that Burberry shows that the series of Winter Storms and the majority of consumer are lovers. Additionally, accessorization, such as scarves, handbags and umbrella also belong to this theme. Winter Storms (2010) Originally, its market served Italy. Nevertheless, Mario Prada changed the materials into the special one nylon, to made bags. Nowadays, Prada includes clothing, underwear, accessories, handbags and oxides items (Prada, 2010). In 2010, Prada (Prada, 2010) forecasts the little gifts for Christmas Day. Accessories of Prada, for Christmas (Haibao, 2010) 2.2.2 Price Burberry sets a high level for the price of its product, Especially Burberry London (Burberry, 2010). However, Thomas Burberry sets a lower price for the mid-class youths. It seems that the price is divided by different level, such as Thomas Burberry is affordable for Burberry London. Certainly, two parts of Burberry-Burberry London and Burberry Baily is sold at a high price, it is to say that Thomas Burberry is approached to consumers. In a word, high-class of the society could be offered these expensive products (Burberry, 2010). Thus, it is obvious that China is a large market for Burberry. Burberry-bags-wallets-and-purses (2010) Pradas prices are similar to Burberry. Skimming is the first position of its strategies. Price of Prada (2010) raffaello-network 2.2.3 Promotion It is essential that a business promotes to attract customers. According to Burberry (2010), Burberry Foundation could give opportunities to make teenagers dreams come true. Therefore, the reputation of Burberry is great. Hence, there is great public relation that Burberry has done. Christopher Bailey, who is the highest manager of Burberry (Luxurious, 2009), with famous Chinese actor-ZhangMan yu, which celebrated the new store built in Beijing. Both of the companies use super stars or super model to display their products to attract consumers. Prada (Prada, 2010) predicts the advertising in 2011 will invite Mariacarla Boscono, Arizona Muse, Kinga Razjak, Zuzanna Bijoch, and Tati Cotliar show the new fashion. Prada in 2011 2.2.4 Place All of the channels of selling in Burberry is increased. Especially, the agency in China goes up and makes considerable profits for Burberry. Revenue by channel of distribution (2010) Amy and Pink (2006) reported the Internet has really changed the way that Prada sells. Wholesale of Pradas handbags are commonplace on the Internet, It is can make consumers buy very first Prada handbags. While Prada will never be considered cheap, the Wholesale Prada handbags offered on the Internet are generally a lot more affordable than the retail stores (Amy Pink, 2006). 2.3 Comparison Turning the topic into the comparison of Burberry and Prada, the traditional marketing mix is about 4ps, which are products, price, place and promotion. Certainly, it includes the unique selling point. First, the unique selling point of Burberry is their coats. However, Prada is famous for their handbags. Products, that Burberry has Perfume, clothing, underwear, accessories, perfume and glasses. Prada has no underwear all the time and Prada notice the familism but Burberry does not. Next, the place seldom has differences between two companies, because both of them are luxurious brand, the companies choose the developed cities to set their multiple shops. Nevertheless, Prada has greater chains of store in China. Therefore, Burberrys marketing share looks like more than Prada. Finally, the place for these two brands is obvious that Prada has more stores in China than Burberry. Moreover, Burberrys place is much better than Prada, because of multi-channel. For promotion, Burberry chooses Zhangmanyu to celebrate the new store and to find some famous, young, modules to represent the products. However, Prada just rely on the Weekly Milan to display their new product, although, Prada choose represents like John Varvators to show the products. After that, due to the luxury, Burberry is royal brand in the United Kingdom, so the price is high. However, there is Thomas Burberry has lower price. All the Pradas series are setting high price (Prada Burberry, 2010). 3. Recommendation In summary, the advantages of Burberry and Prada are the skimming strategy, because it can make more profits. Both of them are known that producing attractions to allure customers, the promotion of Burberry is more attractive than Prada because Burberry likes selecting famous stars to represent the products. However, the disadvantage of these two companies is the price is too high although the cost is high as well. Nevertheless, the marketing share cannot be high. Especially, Prada has no series that sets lower price for citizens, Burberry has Thomas Burberry to connect more consumers at least. Moreover, their multiple shops are located in the big cities, but medium-class cities cannot buy their products from local stores. The suggestion for Burberry is the selling place can be wide, particularly the cheaper Thomas Burberry.(Burberry,2010) As for Prada, the promotion is not enough, though, the words of mouth is popular. Moreover, all of the products and price of Prada is similar. It is hide that ignores medium consumer, so try to divide into more series for consumers could be improved. 4. Conclusion There are all the recent surveys for the Marketing Segmentations and Marketing Mix of Burberry and Prada, the pricy products, widely promotion and prosperous places could make these two companies develop preferable.