Burberry Kenya Case Study

Marketing value 5 1. AIDA Selling Theory 6 1. Innovation diffusion theory 6 1. Key Findings 7 1. Situation analysis 7 1. Online marketing 12 1. Offline marketing 12 1. Conventional methods 13 1. The action plan, budgets, and financials 14 1. Marketing budget 14 2. The report began by looking at the company's overview and its previous trends in the world market and the key elements contributing to its success in the fashion industry. This is explained better by the diffusion of the innovations within the company and how the products have gained momentum and spread to different population and systems. The ultimate end result of this diffusion is that people as the part of the system have adopted the new products. The aim of this report is to evaluate and analyze Burberry's brand marketing approach by looking into various marketing dimension during the entry of the company into the Kenyan market.

This report will describe the aims and objectives of the company investing in the Kenyan market, activities involved as well as the strategic plans. Burberry was originally known for the universality of its products but now it is greatly recognized as a digital innovation luxury leader (Moore, 2004). The company emphasizes its British heritage by developing and mixing the highest product quality with the iconic British style with modern fashion trends. In addition, the company is managed with a significant stakeholder map which comprehends the views, values and various ideas from stakeholders. The company’s success in becoming a leader in the luxury fashion market has been attributed to the company’s ability to aim at cross-generational customers and deliver innovative as well as a personal shopping experience.

The management of Burberry Company has clearly set strategic objectives to sustain the integration of digital and physical platforms as well as continued investment in flagship markets. Nevertheless, Kenya is open to brand making and international retailers thus making it a fertile ground for the fashion business. According to fashion companies that have invested in Kenya, they term Kenya as a good investment destination since it has a relatively well developed retail environment, infrastructure and a growing middle class in comparison to other west and east African countries (Preiholt & Kumar, 2016). As an ideal market for expansion of fashion companies, Kenyans have an international outlook on entertainment and fashion as well as always being in tune with the current fashion trends around the world.

Consequently, Kenyans are highly receptive to new brands and also appreciate high quality by just looking at the international brands in the Kenyan market. Burberry Company is known for its innovative and high-quality luxury fashion products and this places it in a better position of doing well in Kenya than other companies. The company is also managed by a Gantt chart which specifically helps in controlling the web applications. The Gantt chart which is used by the company is very well illustrated and offers a very interactive platform within the company. The diagram below summarizes the Gantt chart of the Burberry Company. Where each color symbolizes the task carried out. Time Line JAN FEB MAR APR MAY JUN JUL AUG SEP Idea generation red Market survey Segmentation and positioning red Setting marketing objectives Kenya red Infrastructure buying red Renovations green Stock checking and restocking purple purple purple purple Technology and Hr Developing of a website pink Staff hiring And development Pink pink pink Promotional Strategy orange orange Promotions and campaigns and tears orange orange orange orange orange Analyzing the current risk factors their mitigation for future yellow yellow Analyzing current financial and the marketing strategy orange Orange 1.

Strengths Burberry Company enjoys the following strengths which enhance its competitiveness in the Kenyan market: • Strong product quality • Superiority in digital innovativeness of the brands • Commitment to product and brand values • Strong online marketing platforms 1. Weaknesses Burberry Company has the following weaknesses: • low turnover • high-priced products • weak interaction with new customers 1. Opportunities • Rapidly developing and promising Kenyan market ("Growing at the speed of fashion," n. d. • growth in demand for affordable luxury • increasing number of Kenyan middle-class consumers • increasing interest of Kenyans in fashion and entertainment 1. Moreover, this marketing approach would significantly focus on the various dimensions of marketing. Another aim of the company will be ensuring that the retailing of Burberry products gives chance for the customers to realize that the products are a must-have and this would help in deflecting the customer’s attention from the pricing criteria.

Focusing primarily on the products and their quality would help to achieve this and this means that the customers would believe in the worth of investing in a product regardless of the price tag. Finally, another general objective is to improve the total sales ratio for Burberry both internationally and locally which will be achieved through the smart, cost-aware and timely resource allocations by integrating the practice of innovative organization concepts which will ultimately raise the sale and profit ratios. The expansion Burberry market to Nairobi, Kenya particularly fashion locale would be a smart move towards achieving more sales percentage. Companies make use of strategic marketing to create marketing plans that address the various customer needs thus ensuring their satisfaction as well as improving the company’s performance and significantly increase profit.

Strategic marketing has four components which include: • Positioning strategy • Targeting strategy • Market segmentation • Competitive advantage 1. Market segmentation Burberry Company segments its customer populations on various variables such as unique offerings for men, children and women and also fitness freaks. In addition, Burberry has its operations in different geographic segments including Europe, America, Middle-East and Asia-Pacific. The Kenyan market is characterized by different groups depending on their personality and characteristic aspects. This is a marketing targeting strategy where a company serves two or more market segments by developing specific marketing mixes. The Kenyan market is comprised of various age groups and mainly, the target age group of Burberry products will be between the age of 25 to 60 years due to its classic products such as trench coats and other multiple fashionable lines.

Further, Burberry products range to appeal to both women and men. In addition, the customers majorly belong to middle and upper middle class since there is a relatively higher price range of the products. However, other Burberry products are accessible to lower income earning populations. For instance, the company can use the live streaming feature on Facebook to exhibit products and use twitter to interact and engage the users. There are numerous online product selling platforms in Kenya which help companies in advertising, promoting and selling their products. Such platforms such as Jumia Kenya online market will help in selling the company’s products across the country. Offline marketing The offline marketing strategies involve the use of creatively designed fashion magazines, publishing detailed articles describing the products, investing in product advertisement using local programs in televisions and radios.

This way, effective awareness will reach all the targeted market across the country. It is no exception with Burberry into the Kenyan fashion market and different stages of creating awareness will be implemented to enhance the product acceptance. The table below summarizes the projected budget towards entry of Burberry into the Kenyan market: Type of campaign Anticipated quantity Cost per unit ($) Total projected cost ($) National and local marketing Banner Ads 5 400 2000 Newspaper 8 300 2400 Public relations Press releases 8 200 1600 Social media marketing Instagram 20 100 2000 Facebook 20 100 2000 Pinterest 15 100 1500 Twitter 20 100 2000 Google 5 100 1000 Online marketing Website 3 200 600 Blog 5 700 3500 Advertising Television 4 500 2000 Online 3 3000 9000 Print 3 600 1800 2. Ethics, sustainability, and CSR Burberry is a global luxury manufacturer and retailer and it involves numerous players from sourcing materials from all over the world to supplying finished goods. It is, therefore, the company’s corporate responsibility to leverage its brand to drive positive environmental and social change globally by maintaining a stable supply chain and a healthy environment.

For instance, Burberry relies significantly on cotton farming for its raw materials and therefore it will conduct some training programs to increase awareness among farmers as well as encourage adoption of sustainable farming practices of cotton in Kenya. There are two main seasons when sales are relatively high and these are the festive season which begins from August to December and cold season from April to July. The festive season attributes to most sales since the seasons are accompanied with many activities and events that require fashion. On the other hand, the cold rainy season requires warm clothing such as trench coats to keep warm. Under the current Kenyan market circumstances, the contingency plan for Burberry will include a fresh approach to the already existing marketing mix.

The most useful and applicable contingency plan is direct marketing which offers a number of benefits to both the company and the consumers. The extent of commitment increases as additional resources are combined with various organizational portions and their resulting value from this integration. On the other hand, the quantity of resources is viewed as the proportions being invested such as organization, marketing, among other areas. Market knowledge This concept is made up of the market-specific knowledge as well as the general knowledge. Market-specific knowledge emphasizes the specific national market features whereas the general knowledge concerns with common traits of various types of customers and marketing methods. The firm can acquire market knowledge through experiential knowledge learned from past personal experience or by the objective knowledge that can be taught.

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