Burberry is a luxury British fashion brand seeking to improve its digital marketing. A situational analysis identified strengths in supply chain management and reputation for British design, but weaknesses in price affordability and limited products. Opportunities exist in technology advances and online markets, but threats include economic challenges lowering consumer purchasing power and strong competition from other luxury brands. The report recommends objectives of improving online sales, followers, and reducing traditional marketing costs through actions like website and social media improvements.

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Digital marketing plan of Burberry
Table of content
Executive summary..........................................................................................1
1. Introduction ..................................................................................................2
2. Situational analysis of Burberry....................................................................2
2.1 PEST framework ....................................................................................2
2.2 Resource analysis ..................................................................................3
2.3 Competitor analysis................................................................................5
2.4 SWOT analysis.......................................................................................6
3. Digital strategy for Burberry .........................................................................7
3.1 Digital objectives ....................................................................................7
3.2 STP strategy...........................................................................................8
3.3 SATIS strategy .......................................................................................9
4. Digital marketing mix for Burberry..............................................................10
5. Action plan .................................................................................................12
6. Conclusion .................................................................................................13
References ....................................................................................................17
Executive summary
The report aims at developing a digital marketing plan for Burberry to improve
its current problems in the online presence and gain more potentials in the
challenging age. The report contains the situational analysis via PEST
framework, resource analysis, competitor analysis and SWOT model; the
digital strategy and digital marketing mix. It develops the central objective to
improve online sale and online visit, number of online followers and save
traditional marketing costs for Burberry in the next year. It is also
recommended that the important actions for the organization are to improve
its website and social network and to train the employees to prepare for the
success of the digital marketing plan.

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1. Introduction
Burberry is a famous British fashion organization, focusing on the high-end
market as luxury brand globally (Power and Hauge, 2008). It was established
in 1856 and now has been highly appreciated as the iconic British brand with
the Western culture and British attractiveness in designs to position in the
minds of both the domestic and foreign customers (Peng and Chen, 2012).
The organization currently provides the diversified product ranges, for the
men, women and children and apart from the apparels, it also supplies the
“soft” and “hard” accessories such as scarves, ties and handbags, shoes and
luggage.
As other companies in the digital market, Burberry is also aware of the digital
marketing strategies to attract new customers as well as to retain the
profitable and potential customers. Eventually, according to Phan et al.
(2011), Burberry is highly appreciated as the first luxury fashion brand to
engage with the social media wholeheartedly. That said, its concern and
investments in the digital marketing are very noticeable. In the study of
Yasmin et al. (2015), the successes for the followers of the new trend in digital
marketing strategy are confirmed via their financial performance, market
performance and future potentiality. They explained that by applying to the
digital marketing plan, the organizations could interact more effectively with
the customers, especially new online customers and support them better to
increase their satisfactions. Therefore, in this report, the researcher aims at
developing a digital marketing plan for Burberry to improve its current
problems in the online presence and gain more potentials in the challenging
age. The report contains the situational analysis via PEST framework,
resource analysis, competitor analysis and SWOT model; the digital strategy
and digital marketing mix.
2. Situational analysis of Burberry
2.1 PEST framework
PEST framework is valuable to demonstrate the environment dynamics of the
business environment for the organization (Thomas, 2007). It consists of

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Politics, Economics, Social and Technological factor. For the Burberry in the
fashion industry, these factors are identified as below.
 Political factor: Burberry operates internationally, so, the political
conditions in different regions in the world can largely impact its
performance. In recent time, the political instability has been observed
in the Eurozone (Nelson et al., 2012). However, despite increasing
instability, Burberry still perceives the significant growth in sale in these
countries (Burberry Strategic report, 2015).
 Economic factor: Major trend in the economic factor is the recovery
from the financial crisis, including, the improvement in the fluctuations
in the material prices and the decrease in purchasing power (Tong and
Wei, 2009). It results in the pressure for the luxury brands to fit the
demands in the affordable prices. According to Euromonitor (2015), UK
apparel industry sees the positive growth rate of volumes but the
struggle of the value sales.
 Social factor: New trends are observed as the “seamless customer
experience” via the Internet, social media and digital techniques via
mobile and computer. It demonstrates the needs for the customers in
all industries to interact online with the firms and with other customers.
Their powers are also improved in the digital landscape. Online retail
has performed best in the UK fashion industry (Euromonitor, 2015).
 Technological factor: In association with the customer experiences in
digital environment, the key technological trend is noticed as the
digitalization (Thierer, 2014). It appears in both product launch and
product sale. In addition, the online technology such as Adword and
SEO to upgrade website performances is highly appreciated.
Moreover, wearable devices are expected to grow fast in the next
years. Currently, mobile technology is the fastest area.
2.2 Resource analysis
To analyse the resources and competitive advantages of Burberry, the value
chain analysis is taken into account. Its manufacturing and selling model is
revealed in the figure 1.

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Source: Moore and Birtwistle, 2004, p. 418
Figure 1: Value chain of Burberry
As can be seen from the figure 1, it is noticed that the company has engaged
with the outsourcing to achieve efficiency and effectiveness. According to
Moore and Birtwistle (2004), the organization also involves the retail and
wholesale distribution to deliver its products over the world. This strategy
proves the diversity in the distribution of Burberry. In application to Kay’s three
distinctive capabilities model (Kay, 1993), the value chain of Burberry reveals
its noticeable resources from the architecture, or the relationship with the
suppliers and customers.
Moreover, in the summary of the marketing communication strategy of
Burberry, see figure 2, another resource to be appreciated by the organization
is its reputation.
Source: Moore and Birtwistle, 2004, p. 421

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Figure 2: Marketing communication strategy of Burberry
To explain, the iconic British symbol and British lifestyle are the core
meanings in the design of Burberry to attract the interests from the customers.
So, its reputation is improved in the relation with the British attractiveness. In
addition, from the figure 2, the online presence of Burberry via social media is
also marked significantly as its aim. According to Phan et al. (2011), Burberry
ranks first in the social media Facebook and Twitter among the luxury fashion
brands. Digital marketing now plays an important part to decide success of
the company. However, these authors also addressed that in reality, the
company faces the problems in re-defining its marketing strategies in the
digital age.
2.3 Competitor analysis
Porter’s five forces model is applied to figure out the competitive environment
of the organization (Porter, 2008). It is synthesized in the figure 3.
Source: Adapted from Porter, 2008, p. 27
Figure 3: Competitive analysis of Burberry

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It is explained that the high rivalry among existing competitors is constituted
from the domestic rivals and global rivals such as Gucci, Coach, Fendi,
Cartier, Chanel and Prada and so on (DiVirgilio, 2013). Since Burberry has
operated its business internationally, the extent to which it competes with the
other luxury brands is also high.
In addition, as mentioned in the PEST framework, in the digital age, the power
of customers increases substantially (Euromonitor, 2015). So, the bargaining
power of customers is high as a consequence of changing technology.
Instead, thanks to the resources in the value chain via architecture (Moore
and Birtwistle, 2004), Burberry can lower its threat from the supplier powers.
Nonetheless, despite the low threat of new entrant in the high fashion market
because of high investment and differentiation, the threat of substitutes is
noticed to be very high from other brands in low-end markets.
2.4 SWOT analysis
As summarized from these above models, the application of SWOT analysis
is shown in table 1.
Strengths:
Effectiveness and efficiency in supply
chain management
Iconic British brand and lifestyle
brand in designing
Focused brand in the high-end
market with differentiation strategy
Global presence
Engage in the online social media
Opportunities:
Technology advances to motivate the
organization to innovate its products
Developing emerging markets
Potentials in online market
Weaknesses:
High prices to make some products
unaffordable to mass markets
Limited product lines
Threats:
Lower purchasing power of
customers
Increasing customer powers
Threat from the new substitutes from
the low-end markets
Fierce competitions
Source: Summarized by the researcher, 2016

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Table 1: SWOT analysis of Burberry
3. Digital strategy for Burberry
3.1 Digital objectives
The situational analysis emphasizes the business context for Burberry to face
the trend in the digital marketing, which plays an important part as both
opportunity and challenge. The company has favourable conditions to develop
its digital marketing because of its initial presence on social network via
Facebook and Twitter. So, it needs to apply digital marketing plan to gain
successes in the future. As emphasized in the study of Phan et al. (2011), it is
necessary for Burberry to transform its traditional marketing activities to digital
marketing. The global presence, online status and iconic reputation will
support it to achieve this central aim. Certainly, increasing customer power
could not be lowered easily by the organization. Instead, Burberry can use
digital marketing strategies to meet customers’ demands and powers.
In compliance with this digital marketing need, 5S objectives of e-marketing
are applied. SMART criteria are also integrated in each objective to ensure
their feasibility and suitability (Day and Tosey, 2011). It consists of five
criteria, including, “specific, measurable, achievable, realistic/ relevant and
timed” (Bovend'Eerdt et al., 2009, p. 352). In detail, the digital objectives for
Burberry are listed in the table 2.
5S Objectives for Burberry
Sell To increase the online sales by 20% in the next year
Serve To increase the number of the followers in the social media by 15%
in the next year
Speak To increase the visiting of the online users in website and social
networks by 10% in the next year
Save To reduce marketing cost via traditional marketing (email and
newspapers) by 5% in the next year
Sizzle To increase the brand awareness of the customers by 5% in the
next year
Table 2: 5S objectives of Burberry in the next year

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3.2 STP strategy
STP strategy refers to the “Segmenting, Targeting and Positioning” to narrow
the potential market for the company from the mass market and serve them
effectively and profitably (Hajar et al., 2014). They are forced to be suitable for
the digital objectives (Chaffey and Smith, 2012). In application to Burberry,
STP strategy is mentioned in table 3.
STP strategy Digital strategy of Burberry
Segmenting Online and offline customers (because the digital marketing
clearly emphasizes the online sale from Internet, while
Internet removes any barrier in geography, so, the key
concern in segmentation in the online or offline customers)
Income level: low, middle and high
Age: young and old
Nationality: domestic and foreign
Targeting Online customers (as users of the social media such as
Facebook, Twitter, Google and Youtube and so on) since all
objectives concentrate completely on the online sale
High income level (because Burberry is a luxury fashion
brand with the high premium price, so, it can only connect
with the people at high income level)
Young customers (because the major users on Internet are
young and they easily adapt with the change in technology
rather than the older customers)
Focusing on foreign customers to deliver the iconic British
brand and increase the number of customers
Positioning For the young online customers in foreign countries at high
income level, the proposition is addressed as “Better
opportunities in digital age”, focusing on the lower online
prices, better services such as free shipping and convenient
payment
Table 3: STP strategy of Burberry

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3.3 SATIS strategy
In addition to STP strategy, SATIS strategy is also applied, based on
“Sequence, Acquisition, Tactical tool, Integration and Social media” (Chaffey
and Smith, 2012, p. 553). It is emphasized in the case of Burberry in the table
4.
SATIS strategy Digital strategy for Burberry
Sequence Use the sale promotions via Facebook and Twitter to
convert customers and persuade them to buy online
(because the organization has successfully created brand
awareness via social media and it needs to re-define its
traditional marketing to digital marketing (Phan et al., 2011)
Acquisition or
retention
Acquire new customers from foreign countries because the
online platforms have advantages to connect fast with the
new customers at low cost. Burberry develops the digital
strategy to acquire new customers, focusing on social
networks
Tactical tool Engaging with digital marketing mix
Developing “viral marketing strategy” because Burberry
now has high number of online customers via its social
networks, so, it is time for the company to take advantages
of existing customers as marketing partners to influence
and persuade the others to become customers of Burberry
Integration Combining online website and channels via social network,
and Youtube channel to serve both computer and mobile
platforms (because mobile technology is fastest
developed)
Developing brick and click business model
To explain, these strategies are necessary for Burberry
because it aims at improving online sales in both social
network and website. It is also suitable to meet the current
opportunities and weather its threats from the external
environment
Social media Incorporating user-generated content (UGC) in the website

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and social media because it can help connect with the new
customers as well as keep profitable relationships with the
existing customers effectively and smoothly.
In detail, Burberry will add videos, discussion forums, and
digital images instead of just text and picture to draw
attentions from online community and increase the
interactivity of the customers
Table 4: SATIS strategy for Burberry
4. Digital marketing mix for Burberry
Digital marketing mix, or e-marketing mix is developed from the traditional
marketing mix under 4Ps to support the development of digital products and
improvement of digital sales (Dominici, 2009). Thus, in addition to Price,
Product, Promotion and Place, the digital marketing mix also considers the
Process, Physical evidence and People (Chaffey and Smith, 2012). Moreover,
it is applied in the online context instead of the physical stores as traditional
concern.
First, since Burberry aims at improving the number of followers in social
media by 15%, it should improve its digital products via the personalization of
the apparels and accessories to meet the individual needs appropriately and
consistently. Burberry faces the limitation in product line, so, it is a chance for
the organization to expand its product line to serve new customers to increase
the customers by 15%. In detail, Burberry will expand its product line to the
“big size” and “thin” people.
Secondly, in term of price, it is noticed that Burberry strongly positions itself as
premium product (Power and Hauge, 2008), so, its prices are very high. To
increase online sale by 20% in the next year, Burberry adjusts prices when
the customers buy online. It is also noticeable to help the company meet the
threat on the lower purchasing power and drive the customers to buy online
and visit its online networks regularly. The strategy meets the “Sell, Serve and
Speak” objective. In detail, Burberry will adjust prices of products, which are
hard to be sold at physical stores, by 2% to 5% permanently for the online
purchase.

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Thirdly, regarding placing, Burberry applies Adwords and SEO marketing
technique along with Facebook marketing to increase the rank of its website
on Google. This strategy certainly helps the company to increase the online
visit traffic by 10% in the next year. In addition, the customers can access
more conveniently with Burberry to predict the increase in online sale.
Fourthly, the promotional strategy is highly appreciated in digital marketing
plan for Burberry, see table 5.
Promotional strategy Description
Online advertising Regularly posting advertisements on social network
and Youtube channel
Promoting the customers to share these
advertisements by giving extra benefits for them
such as vouchers, discounts and gifts for the lucky
customers
It helps Burberry save cost of traditional marketing
by 5%, increase brand awareness by 5% and
increase visit by 10% in the next year
Online PR Sponsorship activities via social networks, based on
online events and exhibitions for example, the
campaigns to recruit the online users to participate
in a donation and those participants will receive
discounts from Burberry. These tactics help
increase the brand awareness of customers to the
brand by 5% because they give positive feelings on
the brand.
Digital image and video clips to PR its products. It
also helps Burberry to increase the visit by 10% in
the next year because of attractiveness of these
images and clips.
Survey on the online customers and press release.
Online sale
promotions
Discounts (from 5% to 25%) for the online
customers when they like and share the posts of
Burberry. It certainty increases the number of

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followers by 15% and visit by 10% and saves costs
of traditional marketing by 5%
Table 5: Promotional tactics of Burberry
Finally, in terms of process, physical evidence and people, these strategies
are associated with the customer relationship management in online presence
of Burberry (Chaffey and Smith, 2012). Physical evidence is achieved via the
user-generated contents on official websites and social networks. It means
Burberry regularly check its website to avoid any error in connection or error
in image. Its information is regularly updated. In addition, one of most
important elements in digital marketing mix is the people. The online
marketers and admins of websites and social networks are trained to regularly
communicate with customers, answer to any question and immediately
respond to their inquiries. Based on these elements, the organization
proposes the strategy to have a technical employee and from 5 to 10 online
marketers and 5 admins of websites and social networks. Such strategies
worth to help Burberry meet the Sell and Serve objective but they may be
contradictory to the achievement of Save objective because instead of
reducing costs of traditional marketing, it may incur additional costs in human
resource management.
5. Action plan
Finally, action plan is shown in the table 6.
Actions Estimated
costs
(£000)
Duration Expected results
Improvement in
website content
and design
13,000 3 months User-generated contents
Easily applying SEO and Adwords
to increase visit by 10%
Adding
discussion
forums to website
5,000 3 months Increase interaction with the
customers to increase followers
by 15%
Applying 15,000 1 month User-generated contents

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Facebook
marketing to
social networks
Increase ranking to increase visit
by 10%
Online
advertising
35,000 Per
month
To increase brand awareness by
5% and increase number of
followers by 15% and save costs
of traditional marketing by 5%
Online
sponsorship
12,000 Per year To increase brand awareness by
5% and increase number of
followers by 15% and save costs
of traditional marketing by 5%
Online PR 10,000 Per
month
To increase brand awareness by
5% and increase number of
followers by 15% and save costs
of traditional marketing by 5%
Online sale
promotions
22,000 Per week To increase brand awareness by
5% and increase number of
followers by 15% and increase
online sale by 20%
Expansion of
product line
25,000 1 year To increase number of followers
by 15% and increase online sale
by 20%
Adjustment prices
of online
purchase
6,000 Per
month
To increase online sale by 20%
Table 6: Action plan
6. Conclusion
In summary, the report proposes the digital marketing plan for Burberry to
attract new customers as online users and re-define its traditional marketing
activities to digital marketing activities on the basis of its success in online
presence. It is recommended that the important actions for the organization

14. 14
are to improve its website and social network and to train the employees to
prepare for the success of the digital marketing plan.

15. 15
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