A Proposal for a New Market Strategy for the Thomas Burberry London Perfume Range

6982 Words Mar 1st, 2006 28 Pages
A proposal for a new market strategy for the Thomas Burberry London perfume range

1.0 Introduction

The 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
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Table 1: The UK market for cosmetics and fragrances by value at current prices (£m at rsp), 1998-2002 1998 1999 2000 2001 2002
Cosmetics 585.5 620.0 660.0 714.0 750.0
Fragrances 650.0 655.0 662.5 680.0 705.5
Total 1,235.5 1,275.0 1,322.5 1,394.0 1,455.5
% change year-on-year - 3.2 3.7 5.4 4.4
Rsp- retail selling prices

The 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 £1.46bn. Consumers base their choice of cosmetic or fragrance on the image of a particular brand, as well as on the product's 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, £34.2m was spent on advertising women's 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 (£m at rsp and %), 2002 Value (£) Total (%)
Females fragrances 465.5 66.0
Males fragrances 240.0 34.0
Total 705.5 100.0

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