A Proposal For A New Market Strategy For The Thomas Burberry London Perfume RangeEssay Preview: A Proposal For A New Market Strategy For The Thomas Burberry London Perfume RangeReport this essayA proposal for a new market strategy for the Thomas Burberry London perfume range1.0 IntroductionThe organisation I have decided to propose a new marketing strategy for is Thomas Burberry. This organisation is a distinctive luxury brand with international recognition and broad appeal. They design, source, manufacture and distribute high-quality apparel and accessories. Burberry was founded in Basingstoke, England in 1856; they have a unique heritage associated with Great Britain and position themselves as the authentic British lifestyle brand. From their founding, Burberry have established a reputation for innovation, quality and style through developments such as the invention of gabardine, which the organisation believe was the worlds first weatherproof and breathable fabric and the creation of iconic products, including the trench coat and of the Burberry check.

The product I have decided to develop a new strategy for is from the Burberry perfume range. Burberry has a range of fragrances such as Burberry Brit, Burberry Touch, Burberry Weekend and more. The fragrance I will be focusing on is Burberry London.

I believe that it is time for a new marketing strategy for the Burberry London perfume, because although the perfume was introduced not long ago- the mens fragrance was launched in 1997 and the womens fragrance was introduced in 1995- sales are not increasing as fast as hoped, probably due to better marketing by other perfume brands in competition with Burberry, In particular I feel that the overall packaging and the bottle design is too plain and does not really persuade the consumers to buy the product. Therefore I feel that we need to give this product a new market strategy and re-launching it with more distinctive packaging.

The main aims for my new strategy are: –To increase overall sales for the Burberry London perfume rangeTo breathe new life into the product life-cycle by re-launching itTo increase market share against competitors brandsTo improve the product and business image e.g. packagingThe strategy I have proposed embodies the main principles of marketing. In developing my new market strategy I have tried to ensure that: –The new product meets actual and potential customers needs by communicating with the customers-I have tried to ensure that Burberry fully understand customer needs and the changes taking place in the buying population e.g. the age structure of the population, tastes and preferences, incomes, etc. I have done this by conducting my own market research. The knowledge I have gained has been translated into a better product for customers.

(2)

(2)

(2)

It is based on an understanding of the customers-Again market research is the key role here, by making sure that I have undertaken primary and secondary research. Before deciding on my new strategy I can be confident that it is based on an understanding of the market for my product.

I have taken into account the competition by understanding them and keeping ahead of them-The perfume & cosmetics industry is a large market; I have tried to ensure that Burberry stay ahead of competition by researching into the PEST & SWOT analysis, and taking into account the other large brands and their approach to selling a product, brands such as Lacoste, Henri Lloyd, Fred Perry etc

I have taken into account other external factors which influences this market-I have also tried to ensure that I take into account the other factors, which influences the perfume & cosmetics industry, factors such as recent market trends, shown in both my SWOT & PEST analysis.

I have taken into account internal influences, which may affect the organisation and its ability to implement the strategy-My SWOT analysis has identified the strengths and weaknesses of the Burberry organisation.2.0 Current Market Situation2.1 Market size and structureThe UK retail market for the cosmetics and fragrances covered by the key note report was estimated at 1.46billion in 2002.The figure below represents an increase of 4.4% on the value for the previous year.

Table 1: The UK market for cosmetics and fragrances by value at current prices (Јm at rsp), 1998-2002Cosmetics585.5620.0660.0714.0750.0Fragrances650.0655.0662.5680.0705.5Total1,235.51,275.01,322.51,394.01,455.5% change year-on-yearRsp- retail selling pricesThe perfume & cosmetics industry is a very large industry. The UK retail market for perfumes & fragrances grew by 4.4% between 2001 and 2002, to a value of Ј1.46bn. Consumers base their choice of cosmetic or fragrance on the image of a particular brand, as well as on the products function. Fashion plays a key role in defining this image, and in-store presentation and method of distribution are also important factors. According to International Flavours & Fragrances, the failure rate for new fragrances is approximately 90% after the first year and 99% after 3 years, so for a fragrance to maintain its popularity for decades, brands such as Chanel No. 5 and Miss Dior, is no mean feature. Vast promotional spending is necessary to maintain an established brand, let alone launch a new one. In the year to September 2002 for example, Ј34.2m was spent on advertising womens premium fragrances alone, which is a great deal of money for promoting a brand.

Table 2: The UK market for fragrances by sector by value at current prices (Јm at rsp and %), 2002Value (Ј)Total (%)Females fragrances465.5Males fragrances240.0Total705.5100.0Fine or premium fragrances account for around two-thirds of the fragrance market by value

Get Your Essay

Cite this page