The Burberry’s Case presentation
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thedigitaladvantage.docxRunning Head: THE DIGITAL ADVANTAGE
THE DIGITAL ADVANTAGE 8
Strategic Digital Marketing and its Transformation Management
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Strategic Digital Marketing and its Transformation Management
Introduction
In the modern and advanced era of globalization and technology, the competition is increasing at a higher rate. This is because of the latest technologies and digitalization of businesses and services related to every industry. However, the world has realized the power of technology and digitalization. It can be also added that those countries can get full advantage of the technology that had admired and implemented digital technology in every possible sector. Also, digital technology can uplift businesses and the vast majority of the citizens of any country who are embracing digital technology.
Moreover, businesses in which digital technology is involved are regarded as the digital leaders of the industry. It is because that digital leader can outperform than peers and can achieve remarkable benefits in terms of profit, growth, product development and market valuation. Up till now, it is realized that digital technology is the core that can drive appreciable growth and transformation. In this regard, this research paper is proposed to analyze the deepening of the digital framework in the real market.
In order to become powerful and stable in the strategic business one should adopt the latest and modern technology, so that success can be achieved in a competitive market. Furthermore, Burberry's case for its strategic Digital marketing and transformation management is discussed. In addition to this, the comparison between Gucci and Burberry's campaign is also highlighted. However, this report is proof that to become a leader of industry one must be a digital leader first.
Reflections about Burberry’s Case
The Burberry's case discussed in the paper named "The Digital Advantage" reveals that before the joining of Angela Ahrendts as CEO the company was underperforming in 2006. However, Burberry was not found competitive against its peers in the industry these days. Eventually, by embracing the digital technology the Burberry has covered a distance towards the digital leader. It is revealed by Angela Ahrendts that this transformation is fruitful for their organization whereas it had also enabled them to perform better against the peers of the market. However, the management of Burberry is satisfied by this transformation and had future reforms regarding the implementation of digital leadership.
It is also analyzed that strategic digital marketing and its management have transformed an aged British icon into the global luxury brand. It is also revealed in the paper provided that the global revenue of the Burberry is increased enormously after the adoption of digital technology. Whereas, trying to become a digital leader is much more than the adoption of digital technology because with respect to business and market proper management and transformation strategy is required. Burberry has perfectly transformed the historic brand into a shareable digital experience. The company has adopted digital transformation rather than expanding in the different territories.it has achieved online success through innovation in social sharing and services that has affected positively both the company and customers as well.
Digital Marketing Initiatives and Transformation Management
The digital transformation is proved to be the blessings for many brands and companies because it opens the door of opportunities and growth. In order to get the most of digital technology certain initiatives are taken, that can help while the transformation into the digital leader (Berman, 2012). However, the digital leader is one who takes initiatives to acquire the highest levels of scale, innovation, accuracy, efficiency, and profit in a competitive market by the use of data and technology. Similarly, these sorts of initiatives are taken by Burberry and Gucci as well. Moreover, it is not easy for everyone to become a global icon. It takes a lot of struggle, initiatives and management policies
Transformation Management in the Burberry’s and Gucci corporate culture has gone through similar challenges and initiatives (Dubois, 2017). The main thing which is analyzed is that transformations are not always warmly welcomed. Because a single change in any company can affect all the employees and policies of the company. However, the overall culture of the company such as long and temporary strategies, processes, services and tools that are used before all are varied according to the transformation. However, reputation acquisition and digital transformation require management which is supported by designing the appropriate strategies and policies that can fit at the global level with respect to the technical resources, direction, sharing and collaboration ( Michelman, 2019). No, any transformation is beneficial if it is not admired by the consumers and supporters but as digital transformation is admired by consumers so it turns the culture of the company into stronger and profitable than before, as it is noticed in the case of Burberry.
Besides the organizational culture, channel management is also important for successful transformation. The channel management strategy defines how all the channels of digital marketing can be controlled and updated. However, it is also revealed in the existing articles studied for the research that Gucci and Burberry have changed their marketing channels and strategies in order to become the digital leaders of the market. It can be added that channel selection and management is easier than relocating and expanding the businesses as it is seen in the case of Burberry. Subsequently, an important goal in the digital transformation is customer retention, satisfaction and ease of the customer and management team as well.
The next initiative that is needed to manage is the adoption of appropriate technology along with channel management. A digital leader selects the easiest way to relate to digital technology that can suit consumers like social media selection for marketing and product delivery. Thus, it can be added that customer engagement and internal operations are needed to manage first under the leadership qualities which can benefit the company by enabling a competitive environment (Mazzoli et al., 2019). The above elaboration is made by analyzing the existing literature such as reviews, articles, and reports related to the global icons who had adopted digital technology in their businesses.
Digital Matrix
Burberry
The review of articles and interviews reveals that the Burberry holds a strong social strategy that is designed to reach out to the interested and active audience of the world. However, Burberry has expanded its outlets in the busiest areas of the world. Additionally, the social media campaign is also stronger and is widely known in digital space including Twitter, Facebook, Instagram, Burberry.com and many others. Their social media services like Facebook live streaming and art campaigns are also appreciable while these things have a role behind the transformation (Dubois, 2017).
Today, Burberry is added to one of the most innovative digital brands around the globe. Additionally, it is also declared as the most famous brand of the present world on social media. The supporters and likers across the social media and websites are in the range more than millions. In addition to this, recently Burberry is regarded as the global icon; it was also regarded as a 4th fastest growing brand around the world in 20011. It is also known as the luxury brand on the Interbrand's index. It has gone through the historic transformation and is now the most illustrious brand which produces a large variety of products. The company’s revenue is increased at a higher level after transformation and has transformed from 730 million pounds (2006) to 3000 million pounds in recent days. By the data above the position of the Burberry can be analyzed in today’s competitive market.
Gucci
The Gucci's success as the digital leader is no secret as it is the most competitive brand against the Burberry. The Gucci is also famous because of embracing the digital transformation and success in this era. However, Gucci is often cited as the blockbuster success story because of the revamped digital strategy. In addition to this, it is also considered as the top of the luxury brands because it had the highest digital IQ store. It is an Italian brand that firstly invested in top-tier site functionality and launched a robust shopping experience. This was done by robust navigation and search along with pleasing product pages.
Moreover, to keep customers satisfied Gucci has designed a Facebook integrated chatbot. The latest technological tools and campaigns including augmented reality and virtual reality installations through which customers can get attracted and part of the campaign. Moreover, the use of digital technology along with the best policies and strategies are used in the company. As collaborations are also created with famous artists so that the best memes and advertisements can be launched. The millionaire and rich audiences are targeted by providing classy and demandable products.
In consequence, prudent digital strategy and management have roared the success for many years. Moreover, the Gucci has remained the most visible icon across the e-tailers. Besides this, Gucci is also known as the highest searched fashion brand on Google. It is mostly rated and found in hashtag mentions the various digital channels. It is further analyzed that the products of Gucci are selling more than before nowadays. Moreover, a 48.3% increase in sales is recorded last year (Dubois, 2017).
Comparison between Gucci and Burberry
After the detailed individual study about both brands, it is analyzed, that these both brands are the competitive icons while both are admired around the globe. Moreover, Burberry and Gucci have gone through the digital transformation and have managed their reputation and fame by embracing digital technology along with the management strategies and policies. However, both brands are generating higher revenue after digital transformation. Additionally, different types of audiences admire and rate them over social media websites.
In another perspective, it is analyzed that Burberry is competing to the Gucci in terms of luxury and durability (Berman, 2012). While Gucci is trying to defend the classical luxurious products so that Burberry cannot overcome Gucci’s targeted audience. Moreover, Burberry has also gone the several strategic and corporate level issues but its stability in these is an alarming sign for the Gucci. While comparing both products in terms of similarities it can be added that both are competing for becoming the same icon in the industry.
The revenue reports and graphs had revealed that both are reaching the highs of success and stability. Gucci and Burberry are now added in the fashion icons globally. Another difference that is analyzed is the difference in the targeted audience. Burberry often targets youngsters by producing demanding and most selling products. After the changing in the designers Burberry has surpassed various other top-selling brands. Gucci 50 % revenue generally comes from millionaire customers as Gucci is continuously maintaining the classy products of all types.
It is also analyzed that products even produced by Burberry is of low price and good quality but still Burberry is required to adopt more appropriate policies in terms of product quality, price, and trends. So far digital transformation achieved by Burberry in this competitive industry is appreciable. Many best policies and management's skills can upgrade and maintain the class and demand for Burberry. However, Gucci is more stable in the industry that is why none is still able to surpass Gucci besides the embracing of digital technology (Catlin et al., 2015).
All the above research has determined that the adoption of digital technology can resolve the world especially the way of doing business. Moreover, the benefits that are achieved by these brands are directions for other businesses as well. The blessings of digital technology are worthy and fruitful because digital technology can foster and turn an unstable business into a stable and iconic brand. But these benefits are only possible if the best strategically means and transformation management is adopted.
References
Berman, S. J. (2012). Digital transformation: opportunities to create new business models. Strategy & Leadership, 40(2), 16-24.
Catlin, T., Scanlan, J., & Willmott, P. (2015). Raising your digital quotient. McKinsey Quarterly, 1, 1-14.
Dubois, D. (2017). Digital and Social Strategies for Luxury Brands. In Luxusmarkenmanagement (pp. 327-337). Springer Gabler, Wiesbaden.
Mazzoli, V., Grazzini, L., Donvito, R., & Aiello, G. (2019). Luxury and Twitter: an issue of the right words. Qualitative Market Research: An International Journal, 22(1), 33-49.
Michelman, P. (Ed.). (2019). Who Wins in a Digital World?: Strategies to Make Your Organization Fit for the Future. Digital Future of Management.
Westerman, G., Tannou, M., Bonnet, D., Ferraris, P., & McAfee, A. (2012). The Digital Advantage: How digital leaders outperform their peers in every industry. MITSloan Management and Capgemini Consulting, MA, 2, 2-23.
