Testing 123 test
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).
[...] A new management has brought back the power of the Burberry brand. Through a tight central control from London, Burberry meets customer expectations, maintaining its positioning as an authentic British lifestyle brand. It has been argued that “UK's image is being associated with traditional country living; this is the image that some foreign consumers buy into and has been the core concept to brands like Burberry” (Bruce, Moore and Birtwistle, 2005, p. 160). On the other hand, the COO effect for Burberry can be analyzed in the light of the empirical study of Bhaskaran and Sukumaran (2007), considering Burberry's largest market – Asia. [...]
[...] In order to be consistent across international markets, Burberry has been consistent in its packaging. It has a distinctive golden luxury packaging. This gives the company global recognition. [pic] Conclusion All things considered, it can be argued that Burberry has adopted “a standardized brand proposition with product formulation” (Hankinson and Cowking, 1996). The fully standardized brand proposition helps Burberry fulfill its customers' expectations in terms of quality and enforces tighter management control (Buzzel, 1968), whilst a certain level of adaptation of its product lines offers more customer orientation since it systematically evaluates buyer behavior and market characteristics in each foreign country” (Douglas and Wind, 1987). [...]
[...] Internationalization Theories and Applications 3.1. Theories There have been several internationalization theories developed over the years, but as with all the theories, they are oversimplified and out of date, not taking into consideration that the business world is fast-moving. However, the following table reviews the main IP theories, with their characteristics, advantages and disadvantages. Considering that Burberry is also a retailer, a couple of international retailing specific theories have also been taken into account. Table 4: IP Theories |Theory |Characteristics |Advantages |Disadvantages | |Dunning's |Internationalization is determined by|Allows the combination |Static model, which does | |Eclectic |three types of advantages: |between the products |not take the dynamics and | |Paradigm |Ownership (specific to the company) |manufactured in the parent |strategy of the | | |Internalization (capacity to manage |company and the added |internationalization | | |processes internally e.g. [...]
[...] International Marketing. 13th ed. London: McGraw-Hill. Charters, S., 2009. Does a brand have to be consistent? Journal of Product and Brand Management [e-journal] 18(4), pp. 284-291. Available through Emerald database [Accessed 23 November 2011]. Design Scene, 2011. Kate Winslet in Burberry for Marie Claire France. [online] Available at:
[...] (Moore and Birtwistle, 2004) This type of promotion is used only in certain markets and only for certain brands. Shows for the company's high-end brand Burberry Prorsum take place twice a year in Milan. Burberry's choice to show its collections in Milan comes from the recognition of “the importance of the city as the global centre of luxury fashion and serves to maximize fashion media coverage internationally” (Moore and Birtwistle, 2004). In addition to that, Burberry shows its Burberry London line every year at the London Fashion Week, making sure it maintains its positioning along with the other luxury brands. [...]
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