Market Segmentation of Burberry

Luxury fashion houses are well-known for reasons we may need to be aware of. They are always at the top of their game, providing new items to millions of consumers. Among luxury fashion houses are Louis Vuitton, Channel, Gucci, Burberry, etc. In this blog, we are going to speak about Burberry. Burberry makes different fashion accessories, clothing items, handbags, perfume, and other cosmetic products. This brand was established in 1856 and now has about 218 stores internationally. While we can easily guess that those are outstanding achievements, this blog will help you understand Burberry’s strategy better and implement some valuable techniques for your future fashion house. 

To begin with, we are going to analyze the segmentation strategy of Burberry.

To do so, we are going to watch a short video first.

The video is fast-paced, showing us lots of things at once. It features numerous well-known lovely models. We are pretty much witnessing what their shoots would look like. 

First, we are following a photoshoot setup on a horse; then, it is a phone call, a catwalk with a purse balanced on the head, a luxurious silk bed, and an office. 

Throughout the video, we see the different versions of the Burberry Lola bag. The collection includes blue, brown, yellow, pink, beige, and black bags. They also feature gold or silver chain details and the brand’s logo.

What can we guess from this short ad?

The first hint that we get from this ad is, obviously, brand orientation. These women love Burberry and are hunting for a new purchase whenever the brand releases new items. 

Secondly, we also witness the success of these loyal consumers because of the feelings we get from the video. With Bella Hadid being featured twice and a successful icon in the industry, that is the message Burberry is trying to spread. 

By now, we are sure that the segment that Burberry has chosen to target is Carpe Diems.

What can we say about this segment?

Lifestyle and values:

Carpe Diems prefer to lead a lifestyle they know they will enjoy. It is simple to make life appreciation your reality; there are a few methods. It can be hanging out with friends, going to a luxurious restaurant, and other arrangements. One can also enjoy life through spontaneity and seeking adventures. 

The latter does not take away from the desire to lead a successful career; it is a significant commitment for this segment. 

Carpe Diems love earning a consistently high income because it allows them to be free. Freedom gives one the power to do anything that comes to their mind, whenever it comes to their mind.

Carpe Diems are incredibly independent. Thus, one of the goals they aim to achieve in their lifetime is to establish their company one day. 

This segment is so focused on becoming successful that they spend less time with friends and family. Although it can seem challenging, Carpe Diems are ready to make the sacrifice. 

Carpe Diems always attend to stay up-to-date with the rapidly evolving and emerging sectors. Those include fashion, technology, music, automobiles, etc. 

Another passion for this segment is leading a healthy lifestyle accompanied by healthy eating and regular exercise. 

Attitude to shopping:

Carpe Diems manage a high standard of living. That is why it is safe to state that this segment is brand-oriented and relishes luxury items.

When Carpe Diems go shopping, they do not look for deals. They only care about finding the perfect fit with excellent quality, and regardless of the pricing, they will purchase. Carpe Diems go by “Quality over quantity.”

Whenever Carpe Diems find the brand of their heart, they stay loyal to it. They always follow to be aware of new product lines. They will search for items from their favorite brands whenever they need something.

Although it is very infrequent for Carpe Diems to shop from new brands, they sometimes go for it. 

Shopping is not solely a necessity. It is also a ritual for Carpe Diems. They spend a relaxing time enjoying shopping whenever they are free. 

Other interesting facts about Carpe Diems

Carpe Diems​

• Attend parties a lot
• Spend considerable time with their friends at pubs or cafes
• Mostly choose well-known and upscale places to attend 
• Go to the movie theater regularly
• Are passionate about cultural events; thus, they visit museums, exhibitions, wine cellars, etc.
• Enjoy reading books when relaxing about biographies, sports, or classic literature.
• Spend a lot of time playing cards 
• Generally read press on issues and topics that matter to them, like cars, sports, computers, and technology. 
• Are not regular TV consumers, but when they watch TV, they mostly search for mainstream programs. 
• Consume the internet for entertainment and communication purposes only 
• Listen to the radio more than the average person. 

Want to know more about segmentation? Our book 16 Personalities is the way to go. It will provide insights into your perfect consumer’s values and life preferences and allow you to get more information about other segments. The book also includes additional negotiation and marketing techniques. 

Moving along, we are going to discuss the positioning of Burberry. 

The positioning of Burberry, in short, is stable for function and luxury. This positioning approach has been constant throughout Burberry and is the chief operator in pushing Burberry into its current market position. 

The initial positioning of Burberry was in a way that the latter was not cutting-edge or classic fashion but a mix of the two. Characterization of Burberry is a fashion brand; it was not as aristocratic or traditional but did not fit the Haute Couture segment. 

Burberry’s position aspired to put it between brands such as Polo, Giorgio Armani, and Ralph Lauren in the garment category. The goal was to position Burberry between Gucci and Coach in the accessories category. So, the ultimate conclusion was that Burberry is a “Functional Luxury” brand. 

Ralph Lauren is an apparel and lifestyle brand. Thus, it got the majority of the apparel market share. However, Polos products have lower pricing than Burberry.

Gucci and Giorgio Armani are high-end luxury fashion companies. Armani’s primary focus is solely on clothing, even though they have recently grown their collection to incorporate cosmetics, fragrances, and accessories. On the other hand, Gucci caught 12% of the market share and has the highest prices in the accessories category. 

So, with the competitors in mind, to make comparisons, Burberry is a “functional luxury” brand. It carries an item line that has numerous products. 

The main categories of Burberry are continuity and fashion. Fashion items are responsible for covering fashion trends and get released on a collection-by-collection rationale. Continuity items, in turn, get released with the approach of lasting for a few years. 

The three main collections of Burberry are men’s wear, women’s wear, and accessories. Burberry has broadened its scope since it presents various items in different collections. This approach contributes to Burberry’s positioning. 

The Burberry Prorsum and Thomas Burberry collections have built up Burberry’s positioning and items. 

Correspondingly, Burberry has positioned itself as a company that creates not only functional clothing and affordable fashion but also luxurious custom-made clothing items. 

The various collections of Burberry have made a niche for Burberry in the clothing industry. 

Hence, Burberry also positions itself as a sustainable and long-lasting brand. 

Lastly, we are going to break down the marketing mix of Burberry.

First, let’s understand what marketing mix means. This notion discusses four brand concepts: product, pricing, place, and promotion. Since all of those start with “P,” marketers refer to Marketing Mix also as “4Ps.”

We are going to touch upon them accordingly.

Product:

Burberry is among the world leaders in luxury fashion brands. The main products of Burberry are beauty, clothing, perfumes, accessories, and sunglasses for women, men, and kids. 

Those fall under the product strategy of Burberry. Entry-level consumers mainly purchase accessories. Clothing items of luxury brands typically are in the market for four months. During that time limit, the brand has to sell them because, after that, they get out of style.

Scarves and other soft accessories are an increasing market for Burberry. The brand has signature trench coats with a considerable market share. Burberry also markets other accessories that one does not have to try on before purchasing. Examples are handbags, and they are simple to sell. 

Fossil Group has a market share slowdown. Burberry’s watch market I licensed to Fossil Group. The item offered is a differentiating element in the fashion industry. 

Burberry started using breathable gabardine fabric in 1880. The brand’s fragrance coverage includes Burberry Weekend, Burberry Touch, and Burberry Brit. The brand also thoroughly thinks through kids’ wear. 

Burberry stated in 2021 that by 2040 it seeks to be a climate-positive brand by decreasing chain emissions. 

Place:

Burberry is present in over 50 countries; hundreds of stores. These stores are in urban areas with a high population which promises substantial revenue for the brand. 

Many people living in those places belong to Burberry’s target audience. Hence, such cities predict increasing returns. 

The customer service of Burberry stores is innovative and digitally influenced. The amount of individuals purchasing online from Burberry’s website drives a good traffic percentage. 

Burberry owns most of its stores and thus has equivalent customer satisfaction rates. 

This brand exhibits its products at boutiques and department stores but in fewer quantities. Hence, its distribution channel is efficient and fast. Burberry’s online portal has its entire product line that customers can shop online.

Whenever consumers buy Burberry’s items, the delivery takes place right away. 

Price:

The pricing strategy of Burberry is premium for marketing its items. 

The proper mix of low-cost coverage and high-end luxury items is what Burberry strives to reach. 

Price is not the direct competition weapon of Burberry, although it is a luxury brand. The brand’s differentiators are durability, perception, and product design. Altering their prices could drive the consumer to leave the brand; thus, Burberry’s pricing strategy stays comparably exact. 

The competitor pricing and deep market evaluation demand are what Burberry uses to set its pricing. Burberry prices its products according to consumer demand and the wish to buy an item. 

Additionally, Burberry examines competitors’ pricing comprehensively before setting a price for an item. The annual revenue of Burberry is over $2 billion. 

Promotion:

Burberry concentrates primarily on its marketing exercises. The apparel industry’s most significant aspect is promotion. Burberry puts its advertisements in high-class magazines to reach its specific audience. 

The brand utilizes different types of promotions like billboards, online ads, TV, and print ads in its marketing mix. 

The brand acknowledged the essence of social media marketing; thus, it has had an online presence since the beginning. Digital marketing assets allowed Burberry to share its brand message with consumers easily. 

Burberry heavily depends on celebrity collaborations. The brand primarily uses viral marketing as its promotional strategy and fewer TV ads. 

Burberry collaborates with celebrities like Agyness, Kate Moss, etc. Digital technology usage is the critical success element for promotions. 

And that concludes the “Market Segmentation of Burberry” blog. Through this blog, we attempted to uncover the achievements of Burberry. We spoke about this functional luxury brand’s targeted segment, Carpe Diems, positioning, and marketing mix. Make sure to stop by our main website for more blogs about other successful, well-known companies.