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Internal and External Analysis of Burberry

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The study on Burberry

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Introduction to Marketing

Marketing refers to communicating information of products and services to end users in order to create its unique identity in the marketplace. It enables corporation to create competitive edge in the marketplace and increase customer base. Present report is based on Burberry, the UK based organization which offers several products like outwear, fragrances and sunglasses as well as cosmetics. This corporation has several branches across world with 10851 employees. Furthermore, the net income earned by company in 2015 was £341.1. The report under investigation conducts  market analysis of corporation by using effective tools like PESTLE and SWOT. In addition to this concept of modern marketing has also been evaluated along with identification of challenges associated with the same.


Market analysis of Burberry

The marketing analysis of corporation is very important which helps management to assess current information and accordingly bring modification in the marketing strategies. It consists of several tools like PESTLE, SWOT and Porter Five Force analysis. Here, for conducting analysis of Burberry, following tools have been applied-


The pestle analysis of organization has been done as follows-

Political -Political factors consists of many factors like tax policy, accounting standard and environmental law. Here, management of Burberry has to pay higher corporate tax that tends to reduce overall profitability (Cravens and Piercy, 2008). In addition to this, accounting standard of company also must be based on changing political parties so as to ensure ethical conduct of business. However, long term political stability support corporation in doing business effectively.

Economical-It consists of factors like inflation, global financial crisis and low unemployment (Decker, Wagner and Scholz, 2005). For example, inflation tends to reduce purchasing power of customers that affect overall profitability of corporation. On the other hand,  global financial crisis also create negative impact of Burberry as it face issue in raising its short or long term finance.

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Social-It is the most important aspect for organization that helps in understanding preferences and taste of buyers. For Burberry income inequality of customers is the major issue through which young generation has issue in accessing good quality of fashion products. However, growing and ageing population indicates growth and success of fashion company (Hughes, 2005).

Technological-Burberry is accessing updated technology at rapid speed. Owing to this, access to internet. Similarly, appropriate mode of communication are used so that buyers can be get important information related to products and services.

Legal-Legal framework imposed by government of UK must be considered by company. For example, Competition Act 1998 specified standard rules and regulation which are complied by Burberry (Phillips, Davies and Moutinho, 2011). In the same way employment Act and other related regulations are also taken into account. It leads to operate business in an effectual manner.

Environmental- The issue of CO2 emissions remain high for organization operating in UK. Owing to this, company need to take care of the same and CSR activities are performed so that general community get benefit from the same.


The SWOT analysis of company can provide information related to internal and external environment. It enables management to find issues faced by corporation and accordingly corrective actions can be table to overcome the situation-


Burberry is operating in fashion segment and provide large variety of products and services to end users (Simkin, 2002). It is presented at international level with reinvented approach. However, the organization uses social media and  other appropriate mode of communication for better connectivity with large number of buyers. On the other hand, royal warrant was received by Burberry. Here, the first one is Queen Elizabeth and Prince Charles which aids to create value for corporation at international level.


The premium price range is the most crucial issue for organization because young age population generate face issue affording costly products and services in accordance with their requirement. On the other hand, product line of company is limited such as cosmetics & accessories and apparels (Siomkos and Vrechopoulos, 2002). In addition to this, most of portion of income is generated from Asian market that can affect performance of company in case of change in regulatory framework of the same.


Burberry can expand itself in emerging markets like India because demand of premium products is increased. Furthermore, weaknesses of corporation is reflecting that product line can be enhanced for catering need of large number of buyers (Wood, 2008). However, aspect of differentiation must be considered by corporation so as to make customers highly satisfied. Furthermore, life style of customers is changing at rapid speed due to change in education, preferences and taste. This leads to expand market and increase market share of Burberry.


The threats present to Burberry can be understood in context of high competition in market. Similarly, life style of customers is also changing to a great extent which affect company as it has to bring innovation in the current products and services (Wood, 2003). Furthermore, fake products caused by unauthorized use of trademarks and intellectual property.

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Key marketing issues affecting the organizations strategic position

The internal and external analysis of corporation bring forth following issues. All these issues affect operation of Burberry to a great extent. These are explained as follows-

  • Limited product line-According to internal and external analysis of company it has been found that company has limited product line (Wrenn and Mansfield, 2014). This limited product line depicts that company is having issue in creating its brad image at international level.
  • High competition in the market-There are number of competitors of organization such as Gucci, Louis Vuitton & Prada is performing better than Burberry.
  • Premium price range-Burberry set premium prices for its products and services that tends to affect young customers because they cannot afford costly products and services (Belz and Peattie, 2009).
  • Diffusion of brands-Burberry attract all customers across the world rather than focusing the aspect of Britishness. This affect brand image and unique identify of company in the marketplace.


2a Critically evaluating the concepts of modern marketing environment

The concept of modern marketing is very important for current businesses. Here, management gives importance to preferences of buyers rather than just selling products and services to them (Cova and Dalli, 2009). The modern marketing concepts consists of following aspects. Furthermore, issues associated with the same has also been analyzed-

Production concept-Here, organizations like Waitorse and Tesco produces products and services which are necessary for consumers. This consists basic food products like tea, coffee and ready to eat vegetables. Here corporation merely focuses on production and assume that consumers will buy it when the same comes to market. At this juncture, issues may be faced by companies due to innovation and creation in products offered by one.

Product concept- The modern marketing concept related to product depicts that organization like Tesco emphasize on quality aspect (Hollensen, 2015). This facilitates to meet their expectations effectively and retain them for loner time span. However, issue related to quality or produce range can affect performance of hotel to a great extent. Furthermore, Tesco produces product with innovative marketing strategy so that sales turnover can be increased with less efforts and in the same way profitability can also be enhanced.

Selling concept-In current era concept of selling is very important wherein management of Waitrose and Tesco try to shift their focus on promotion of products and services. At this juncture, updated technologies like social media and search engine optimization are used so as to communicate the information to end users. Furthermore, inappropriate marketing strategies create issue for company by just adding cost and reducing profitability. Owing to this, content marketing strategy is used by Waitrose for promoting sales and retain existing buyers and attracting new one also (Waitrose's head of marketing on why its customers 'love' its content, 2013).

Marketing concept-Marketing concept determine long run success of company in the marketplace. For this purpose, Waitrose and other retail organization offer discount on its products and services. Similarly,  offers like “buy one get one” are provided with the help of appropriate mode of communication. On the other hand, Burberry also provide special offer on the basis of occasion so that more customers are attracted. The issue associated with marketing concept is selection of wrong communication channel and less effective strategy.

Consumer concept-Here, specific attention is given on customers so that company produces products and services accordingly. For this purpose one to one marketing is done by organizations like Tesco and Waitrose (Huang and Sarigöllü, 2012). It enables them to identify specific issue related to service or product quality. In case company does not incorporate views of customers then sales turnover might be reduce to a great extent. For instance, Waitrose introduces “pick your own offers” wherein customers are attracted towards offerings of the same. This way loyalty program are in place thereby retention of customers can be ensured to access good quality of products.

Societal marketing concept-Here, company need to focus on general community, customers and competitors also. Owing to this, ethical practices are adopted with inclusion and Corporate Social Responsibilities. This create issue in  managing profitability as CSR activities require investment (Decker, Wagner and Scholz, 2005). For example, Tesco faced issue related to beef meat in eatables which created negative feeling among its buyers. At this juncture, company focused on community by bringing changes in existing product. At the same time, social media was used by the same so as to make community aware of current issue.

2b Critically assessing marketing approach for selected organization

The concepts of modern marketing and identified issues of respective organization reflects that several marketing approach es are used for creating good image of company. For instance Watirose offer good quality of services through using innovative technology like Facebook and Twitter. Here, range of products are advertised so that consumers can come to know that same and they can also provide quick feedback for the same. Moreover, queries can be raised by customers so that Waitrose find it feasible to sort the issue at the same time. Furthermore, the use of updated technology proves to be effective in retaining buyers for longer time span (Simkin, 2002).

On the other hand, horse meat scandal of Tesco depicts that burger provided by corporation contain 29% of horse meat. It affected image of company in bad manner. Owing to this, management of Tesco adopted effective strategy and removed all frozen burger from sale with immediate impact (Tesco beef burgers found to contain 29pc horse meat, 2016.). This message was floated to customers with the help of internet. It reflects that concept of consumer and societal marketing was highly applied by management. This way after some span of time Tesco recovered its position and offering products to its customers in different new ways.

This way both Waitrose and Tesco use on-Site content marketing for attracting more buyers and creating its competitive edge in the marketplace. However, they lays emphasis on current trend and overall concepts of modern marketing environment so that companies create value for its consumers (Hollensen, 2015). For example, Tesco Real Food is the marketing approach used by company wherein customer can find recipe of their most of favorite food. This also provides specification related to my meal plan along with video. Similarly, Waitrose also offer lucrative schemes for its potential buyers by giving description related to food products. In this regard, option for purchasing breakfast, lunch and dinner are provided via online. It assists consumers to frequently take purchase decision for their routine (Waitrose marketing boss, 2016).

Therefore, Tesco and Waitrose are operating in modern marketing environment whereby buyers can be satisfied and objectives of firm related to high rate of return, better quality product and unique identity in the marketplace can also be fulfilled. Furthermore, appropriate marketing strategy is selected for particular concept like customer, production or product so that buyers find it feasible to get product in accordance with their taste and preferences. However, investment of financial and human as well as physical resources is required for effective operation of businesses in current era (Andreasen and Kotler, 2008).

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3a Improving current marketing approach

According to the discussion it has been found that Burberry is operating its business at global level. It is also applying appropriate strategies for  marketing of products and services. However, single approach has been applied to target number of buyers across the world rather than focusing on Britishness (Belz and Peattie, 2009). Owing to this, company review its marketing strategy and must communicate culture and trend by presenting images in more effective manner. Further, high competition is another issue faced by company depicts that management of Burberry can focus on innovative strategies like enhancement of product line. For example items related to decoration can also be included into product range. This aspect tends to increase customer base and create unique identity of the same in the marketplace. Furthermore, premium price range is another issue associated with company. Owing to this, company can offer discount on products so as to meet expectations of young generation. This scenario will bring innovation in existing marketing strategies thereby marketing objectives of firm can be fulfilled effectively (Andreasen and Kotler, 2008).

Furthermore, Burberry can give special offer for its new or existing customers according to occasion. For example students can get sunglasses on discount of 35%. This way goodwill can be created of organization because young generation like to prefer luxury products and they are majority of buyers. However, this will be offered occasionally which tends to reduce additional cost and customer base will be increased for company for particular time span.

3b Making justified recommendations for improving

The current approach marketing does not require much modification but a bit innovation for attracting more buyers. However, it was found that majority of income is raised through Asian marker which create insecurity for corporation in case of any change in that particular segment. Owing to this, it becomes necessary for company to build competitive edge through innovation and creativity in existing products and services (Phillips, Davies and Moutinho, 2011). Apart from this, offering discount for young generation will be helpful for gaining popularity in home country. This tends to increase customer base in UK so that insecurity associated with Asian market will be reduced to a great extent. However, certain cost will be incurred by Burberry at initial stage but this aspect will create goodwill of the same in the marketplace. In addition to this, enhancing product line and communicating about the same through online media is also helpful for creating strong customer base in UK. Apart from this, Burberry can drop out prices of some of its product for particular time like weekends.


The aforementioned study concludes that marketing activities play important role in achieving long as well as short term objectives of corporation. This tends to attract more buyers by offering them good quality of services. It can also be said that appropriate tools of communication like internet, social media are helpful in approaching targeted audience or buyers. Moreover, modern marketing concepts are followed by business to give importance to their associated stakeholders and meeting requirement of the same in an effectual manner.


  • Andreasen, A. R. and Kotler, P, 2008. Strategic marketing for nonprofit organizations. Upper Saddle River, NJ: Pearson/Prentice Hall.
  • Belz, F. M. and Peattie, K., 2009. Sustainability marketing: A global perspective. Chichester: Wiley.
  • Cova, B. and Dalli, D., 2009. Working consumers: the next step in marketing theory?. Marketing theory, 9(3). pp. 315-339.
  • Cravens, D. and Piercy, N. F, 2008. Strategic marketing. McGraw-Hill Irwin.
  • Decker, R., Wagner, R.. and Scholz, S. W 2005. An internet-based approach to environmental scanning in marketing planning. Marketing Intelligence & Planning, 23(2 ). 189-199.
  • Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
  • Huang, R. and Sarigöllü, E., 2012. How brand awareness relates to market outcome, brand equity, and the marketing mix. Journal of Business Research. 65(1).pp. 92-99.
  • Hughes, A. M, 2005. Strategic database marketing. McGraw-Hill Pub. Co..
  • Phillips, P. A., Davies, F. M. and Moutinho, L., 2011. The interactive effects of strategic marketing planning and performance: A neural network analysis. Journal of Marketing Management. 17(1-2). pp.159-182.
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