Communication Strategies essay
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Communication is not only just an aspect in business bit it has grown to be a very vital component in any sales strategies that are used by an organization. As a matter of fact, it is the level of communication enhanced by a sales promotion method that determines the extent or the level of success of the sales in the promotion. It is in this regard that the critical analysis of various communication devices and strategies used by Burberry and Louis Vuitton during the festive season ended over the Christmas period become very integral in the analysis of the level of sales that were made by the two companies.
The critical analysis that seeks to compare and contrast the different communication strategies that were employed by the two companies has mainly used the main areas of comparison as the In-store communication, online communication, communication within the UK and International communication. As is also clearly indicated, the analysis between the two companies has been done in the light of the similar market SWOT analysis that is also presented in the paper. This only aims to indicate that the atmosphere surrounding the two organizations is almost relatively the same.
Burberry, Louis Vuitton and Gucci comparison of the Communication Strategies for Christmas period
Burberry Communication Strategies
Burberry remains by far one of the most successful luxury fashion houses that are found in the United Kingdom. The iconic trench coat can not be argued against as it still remains the famous outfit offered by the company after it was invented by Burberry Thomas who is the founder. Its distinctive brand name and style has offered it undisputable recognition in the market with the sales that were concluded during the Christmas period in 2010 accounting for almost 25% of the 1,200 million that were sold in the financial year (Pearce 2010). The main communication strategies that were used by the organization during the past Christmas season have been analyzed in the sub categories indicated below.
The Retail Theater concept was the main communication strategy that was used by Burberry during the Christmas sopping period. The charged in-store retail theater that was newly launched specifically to accommodate the shopping season was aimed at creating a whole new difference for the luxury consumers that are found in the modern day. This technology was specially made so that Burberry could be bale to directly broadcast the new and emerging fashion designs straight form the headquarters into the stores. This played a huge role in determining the way customers engaged with the brand and offered the retail outlets with unlimited sales opportunities as far as in-store sales promotion was concerned (Pearce 2010). Apart from the broadcasting of the emerging fashions by the company, the communication strategy the strategy was also effectively used in ensuring that events involving truck shows were displayed in the stores so that the buyers could easily consider the reaction of the outside world to the new fashion designs that they were observing at the stores.
As a way of increasing the effectiveness of the method in ensuring that the sales figures shot up, the specific customers involving in the events in store were sent invitations that were personal videos. This increased the level of personal attachment to the customer hence most of it ended up as being actualized sales. The company on the other hand benefited in a very big way. Apart form the obvious increased sales volume at the time, the method invited with it the opportunity for the company to broadcast its content directly to the stores all over the globe.
Burberry has been able to effectively take full advantage of the marketing department, the talented creative media it has and the IT teams in the organization to ensure that it emerges as the expert in the digital arena. During the festive period that was in the December holiday and during Christmas season, Burberry was able to effectively communicate the new and trendy products it had to the public using two main approaches. The social media and live streaming were the main modes of communication that Burberry effectively used during the festive season to attract customers to making more purchase for Christmas shopping.
In regard to the social media, Burberry has managed to establish itself a brand that bears a leading presence among the common social networks that we have. As a matter of fact, Burberry was the leading brand on luxury that had most number of followers on Facebook (Pearce 2010). The social Burberry brand had an estimated over a million fans following all the new updates on the site during the month of December. It is in regard to this that Burberry ended up opening a new social media network that is most convenient at any place. artofthetrench.com is the new social network that was started by Burberry during the festive season so that customers could be encouraged into buying the iconic trench coat to the younger generation in the society.
Secondly, the live streaming that was done online enabled customers spread at different parts of the globe to enjoy relatively the same fashion show. This was actually the very first time that such an experience was being made at Burberry. Five locations around the world were the only ones which were chosen yet they served as an example to everyone as the contents were being live streamed for everyone to see (Pearce 2010). At this particular time, the company had offered to have runaway items available for the customers as a gift fro the shopping and festive season.
Louis Vuitton Communication Strategies
Louis Vuitton could not have done it any better than opening up a store in the center of London that is today considered as one of the most luxurious stores that has ever been opened by the company. This was a very strategic move that was aimed at not only expanding the sales that were made in the month of December during the festive season but it was aimed at ensuring that the Burberry which is basically based in London received its fair share of competition. As a matter of fact, the move was very strategic and effective in ensuring that Louis Vuitton increased the sales that it made during the festive season (Léonforte 2010). The opening up of the store and having a new store for customers was more than enough of an in-store promotional activity.
Just like its competitors in Burberry, Louis Vuitton was very instrumental in dealing with the Christmas shopping period by use of the internet services. As a matter of fact, it was as an attempt to grab the shoppers during the Christmas window that Louis Vuitton became the first luxury brand that launched a twitter account that was officially meant to act as the first step towards integrating the strategy about digital communications that it had started. Within the shopping period, 47,000 members were attracted into the site indicating that several shoppers had been intrigued into the site (Vandome 2010).
As a strategy to counter the Facebook page that was opened by Burberry, Louis Vuitton also went ahead to add to their twitter account a Facebook account. The fan page that Louis Vuitton opened was named The Art of Travel and ended up being not only a site meant to boost sales during the festive season but it went ahead to become the destination site in everything that was about Louis Vuitton. By the time the year was turning, the fan page had had already made an attraction to more that 800, 000 fans distributed all over the globe (Vandome 2010). This means that people from al over were able to easily access the variety of products that were offered by Louis Vuitton during the Christmas shopping period.
Gucci Communication Strategies
Gucci can be said to be the main source of strategy that was used by Louis Vuitton in opening more stores during the festive season. As a matter of fact, Gucci has the strength in the fact that it had very many stores that are directly operated by it. As a result f his, it is true to draw the conclusion that Gucci remained as one of the strongest companies due to the fact that it was in direct control of the distribution process (Trimarco 2010). In addition to the fact that Gucci is one of the strongest brands dealing in elegance, the fact that they used the strategy of accurate distribution to the stores during the shopping season means that they could not be easily beaten by their competitors.
Online communication was also another point of strength that Gucci used to ensure that it tapped the highest per cent age of customers during the shopping period. This was achieved by the company ensuring that the company approached the market using a diversified brand (Margolis 2010). Reducing tension on only one brand ensured that Gucci reached different levels of consumers of their products at different regions.
Burberry, Louis Vuitton and Gucci Comparisons in UK, France and Japan
The fact that Burberry is has its head luxury houses in the United Kingdom meant that the in-store strategy that was used by the company in its universal stores had more effectiveness in the stores in UK. On the other hand, the online strategies had less use in UK meaning that in France and Japan, the online services of communication by Burberry received more efficiency.
In the same analysis, Louis Vuitton was the major force in France given the fact that it is the homeland. On the other hand, though, y building the store in London, Louis Vuitton became very effective in offering revived competition to the Burberry stores in the country. Finally, it is true to conclude the fact that Japan as a country was shared by the three luxury products, stores although Gucci had an upper hand as compared to the other power houses. The fact tat its strategy ensured that the stores in different parts of the globe could be effectively controlled due to the number meant that Gucci emerged as the most successful retailer in Japan.
SWOT analysis of the market nowadays
The independence of the textile industry acts as a source of huge strength to the players in the industry. This is further added by the fact that abundance of raw materials helps the industry as a whole to effectively control the costs of production and fasten the process of production (Huseman 2001). Competitive advantage in the industry is added by the fact that skilled man power is not only available but also in low costs.
Limited customer base is the main weakness facing the industry. The fact that business in the industry highly depends on the economic conditions puts a lot of future decisions on hold. The industry is highly dependant on cotton. Bottlenecks that are found in infrastructural inefficiencies such as transaction time spent at the ports (Bonnye 2007). The high indirect taxes, together with power and interest rates make it very hard for the players in the industry.
Products that are custom made for prominent figures. Celebrities and especially movie actors can advertise using the industry's brands in the movies. The rapidly spreading expansion of the industry throughout the whole globe is creating more opportunities in the industry (Jones 2008).
Counterfeiting and counterfeits still remains as one of the hugest threats in the industry. This is accompanied by the current global trends in the economy and the ever changing fashion trends.