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Burton's Musical Jacket Looks Good, Sounds Better - Case Study Example

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The paper “Burton's Musical Jacket Looks Good, Sounds Better" is a dramatic example of a case study on marketing. Burton is a large company that deals in a multiplicity of products including audio devices, multifunctional cameras, cars, and global positioning system devices, toys, robots, gaming devices, hardware devices such as laptops and netbooks, home and kitchen devices, etc…
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MARKETING PLAN: Burton's Musical Jacket Looks Good, Sounds Better Executive summary Burton Company has released its newest product, the Burton Musical Jacket, which has features that make it not only look good but also sound good. The jacket has a superior design tailored for boarders. Its additional features include built-in speakers that are waterproof, a quality that is appropriate for boarders who like going out to any type of weather. The Burton Musical Jacket also contains a carrying case to hold an audio player and is compatible with modern devices such as iPods and MP3 players that utilize a 3.5-millimeter jack for the headphone. In addition, the jacket contains a dedicated contour hood with removable speakers, a nest pocket goggle for goggles, nice handwarmer pockets, and a sound pocket that incorporates a headphone port. The multi-function jacket comes in a variety of colors, i.e. red, white and black. The Burton Musical Jacket has a three-year life cycle over which rapid innovation is expected in advertising and promotion in order to capture and maintain a market niche before eventual withdrawal. Many companies pose threats due to high level of technology but the Burton Musical Jacket’s unique features are expected to unveil a new level of competition. Burton works in line with Australian laws land regulations regarding business and therefore hopes that the Burton Musical Jacket will present a new dimension in the clothing market as it looks good and sounds good. Table of contents Executive summary i Table of contents ii 1. Introduction and Background Information 4 2. Company overview and the mission statement the Company 4 3. Introduction to the project 5 4. Product description 5 6. Environmental scan 6 Burton’s competitors include Hai Yan Company that manufactures all sorts of clothing and particularly jackets (Hai Yan). The company invests substantially in online marketing and therefore poses significant competition. Additionally, the company takes orders from customers to tailor products according to customer specifications. Another company that deals in jackets is the Asian based HKTDC that deals in all sorts of jackets including car-racing jackets (HKTDC). The advantage that Burton has over these companies in the unique features of the Burton Musical Jacket. An analysis of this point is presented in the appendix. 6 The jacket industry is characterized by pure competition since there are various manufacturers who use different features. Many companies are now investing in technologies such as computer aided design to produce perfect patterns. Others use Stylist Software while others invest in digitation systems and marker making techniques. These are some of threats of direct competition faced by Burton in its bid to popularize the Burton Musical Jacket. In addition to the direct competitors who are jacket manufacturers, another threat of competition is posed by manufacturers of compliment products such as audio players, MP3 players and headphones. Thus, customers are likely to go for standalone products rather than those incorporated in the Musical Jacket. 7 The Burton Musical Jacket life cycle will take three years. Along this line, the company will target rapid expansion and establishment of a niche within the first year. This will be maintained for some period until toward the end of the first year when relevant measures will be taken to progressively withdraw the product from the market as shown in figure 1. 7 7 Figure 1: Product life cycle model 7 Source: Adapted from Komninos (2002) 8 In order to enjoy the benefits of a new market, the company will focus mostly on the introduction and growth phases through intensive advertising and promotional activities. This will ensure that a niche is created and efforts applied thereafter will target maintenance of the captured market. 8 7. Economic environment 8 9. Legal Political and regulatory environments Laws 9 Consumer rights and laws 9 Licensing rights and trademark protection 10 Impact of consumer pressure groups 10 10. Social and cultural environment 11 11. Technological environment 12 Appendix 14 1. Introduction and Background Information Burton is a large company that deals in a multiplicity of products including audio devices, multifunctional cameras, cars and global positioning system devices, toys, robots, gaming devices, hardware devices such laptops and netbooks, home and kitchen devices, home cinema equipment, all sorts of printers and scanners, computer software devices and sports and fitness equipment (Pocket Lint). The company’s mission is to be a global leader in production of high quality products tailored to meet customer specifications. This mission is however hampered by high competition mostly from unscrupulous business who deal in counterfeit products. 2. Company overview and the mission statement the Company Burton deals in a variety of products including audio devices such as iPods, MP3 players, speakers and radios (Pocket Lint). It also deals in a wide variety of multifunctional cameras such as compact cameras, DSLR cameras, and other camera accessories. Burton also deals in cars and global positioning system devices, toys, robots, gaming devices, hardware devices such as laptops, keyboards and netbooks, home and kitchen devices, and home cinema equipment such as DVD players, projectors and televisions. Others include all sorts of printers and scanners, computer software devices and sports and fitness equipment such swimming costumes, footballs, and cycling equipment, which are available in the company’s catalog. The name of the company’s latest product was derived from the company’s name, Burton. The company’s mission to be a global leader in production of high quality products tailored to meet customer specifications is driven by the desire to satisfy the customer and put the customer before any monetary benefits for the company, which are among the company’s objectives. 3. Introduction to the project Burton has released its latest product, the Burton Musical Jacket, which not only looks good but also sounds good. The jacket has a design suited for boarders. Its additional features include built-in speakers that are waterproof, a quality that is appropriate for boarders who like going out to any type of weather. The jacket also contains a carrying case to hold an audio player and is compatible with modern devices such as iPods and MP3 players that utilize a 3.5-millimeter jack for the headphone. Additionally, the jacket contains a dedicated contour hood with removable speakers, a nest pocket goggle for goggles, nice handwarmer pockets, and a sound pocket that incorporates a headphone port. The multiple use jacket comes in a variety of colors, i.e. red, white and black The Burton Musical Jacket has a life cycle of three years after which production will cease. It will be sold and distributed Australian market although some components or entire products may be produced overseas. 4. Product description The Burton Musical Jacket has many unique features that make it not only look good but also sound good. Its water resistant speakers are designed to be used by boarders in all seasons. The jacket is fitted with a carrying case in which users can fit their audio players and has a system that is attuned with MP3 players and iPods. All these devices can use a 1.5-millimeter jack pin that is included in the system for headphones. The jacket’s dedicated contour hood ensures that a user is covered at all times and has a good feel of the hood’s far lining. Other additional features of the jacket include a sound pocket fitted with a headphone to facilitate a personalized enjoyment of music; a pocket to carry goggles, and well-zippered pockets for warming hands. The pockets are fitted with a micro-fleece lining to ensure that the user enjoys the feel around hands (Pocket Lint). The Burton Musical Jacket comes in different colors, i.e. red, white and black, having all the features described above. Plate 1 shows a white sample. Another feature that makes the jacket outstanding is its price. All the features are available at a retail price of $ 419. Plate 1: The Burton Musical Jacket Source: Pocket Lint (undated) 6. Environmental scan Burton’s competitors include Hai Yan Company that manufactures all sorts of clothing and particularly jackets (Hai Yan). The company invests substantially in online marketing and therefore poses significant competition. Additionally, the company takes orders from customers to tailor products according to customer specifications. Another company that deals in jackets is the Asian based HKTDC that deals in all sorts of jackets including car-racing jackets (HKTDC). The advantage that Burton has over these companies in the unique features of the Burton Musical Jacket. An analysis of this point is presented in the appendix. The jacket industry is characterized by pure competition since there are various manufacturers who use different features. Many companies are now investing in technologies such as computer aided design to produce perfect patterns. Others use Stylist Software while others invest in digitation systems and marker making techniques. These are some of threats of direct competition faced by Burton in its bid to popularize the Burton Musical Jacket. In addition to the direct competitors who are jacket manufacturers, another threat of competition is posed by manufacturers of compliment products such as audio players, MP3 players and headphones. Thus, customers are likely to go for standalone products rather than those incorporated in the Musical Jacket. The Burton Musical Jacket life cycle will take three years. Along this line, the company will target rapid expansion and establishment of a niche within the first year. This will be maintained for some period until toward the end of the first year when relevant measures will be taken to progressively withdraw the product from the market as shown in figure 1. Figure 1: Product life cycle model Source: Adapted from Komninos (2002) In order to enjoy the benefits of a new market, the company will focus mostly on the introduction and growth phases through intensive advertising and promotional activities. This will ensure that a niche is created and efforts applied thereafter will target maintenance of the captured market. 7. Economic environment Various aspects of business such as income rates, expenditure, operational space and many others affect the Burton Company’s performance. Table shows recent building arrival rates. These statistics are important for the company in that they will be of help during allocation of buildings for expansion and other activities that need space. Table 1: Building approval rate: March 2009 Key Figures TREND March 2009 No. February to March 2009 % change March 2008 to March 2009 % change Total dwelling units approved 9 851 0.4 -25.6 Private sector houses 7 098 0.3 -20.4 Private sector other dwellings 2 496 0.7 -37.8 SEASONALLY ADJUSTED Total dwelling units approved 10 494 3.5 -16.5 Private sector houses 7 333 2.8 -15.7 Private sector other dwellings 2 840 2.8 -22.4 Source: Australian Bureau of Statistics (2009) Income statistics In recent years, employees’ earnings in Australia have increased, implying that Burton Company will have to consider paying its employees in line with the current market rates. In 2008, income rates were on average $1400 or more per week for 19.1 per cent of all employees. Further, adult employees account for the largest age group of employees and earn $1258.60 as compared to the other groups who earn $964.80 per week. There is also a disparity in earning by gender in that on average, male employees working fulltime are paid on average $1335.20 as compared to $1080.90 for females (Australian Bureau of Statistics 2009). The above statistics are significant for the company in ensuring that its employees are paid in line with the recommended market standards in order to improve its efficiency. 9. Legal Political and regulatory environments Laws Various regulations and the Australian political environment affect the market space of the Burton Musical Jacket. There are many issue issues at hand, such as procedures for packaging and labeling, government restrictions, trademark rights, tariffs, trade barriers licensing rights, influence from pressure groups and so on. Burton aims at ensuring that its products are environmentally safe and work with investment groups such as Australian Ethical Investment Limited. Hence the Burton musical jacket has been prove to be environmentally safe. Consumer rights and laws Burton company understands that the consumer is the most important aspect of business and does everything necessary to please the consumers. The company operates within the stipulations of various consumer protection laws such as the Sale of Goods Act of 1923 and the Practices Act of 1974, which bars unfair competition in the business environment (Fleming 2004). The company operates under the guidance of the ACCC (Australian Competition and Consumer Commission to guarantee that all its operations are within consumers’ level of satisfaction (Mwenda & World Bank 2006). In its operations, Burton adheres to Australian legal requirements for registration such as provision of a title for particular goods, a clear description of the goods to avoid ambiguity, and provision of samples to customers as an assurance of quality (English 2006). The Australian law also requires firms to produce goods or services of merchantable quality (English 2006). This has been embraced by Burton right from its objectives in which it aspires to satisfy the customer. The company also observes the principle of fitness for purpose as stipulated in Australian law by showing utmost care for consumer demands as it provides exactly what consumers want in the market. In performing all the above, Burton works in accordance with the Fair Trading Act of 1998 that sets code of conduct between the seller and the buyer. Part V of this act is related to consumer protection and sovereignty of the seller in the market (Lembach, Lembach & Wood 2001; Fleming 2004). Licensing rights and trademark protection Burton has adhered to all the business requirements in terms of being dully registered and having an operational name. The company has also addressed various issues that relate to trademark protection by using a proprietary name as its trademark and therefore enjoys immunity from the problems of trademark infringement. Impact of consumer pressure groups Pressure groups in Australia work like trade unions and have a lot of influence in the market with reference to consumer rights. These groups have a lot influence since they link consumers, sellers and various government departments through different forms of petitions. 10. Social and cultural environment Australia is a culturally diverse society with different groups of people based on cultural backgrounds, ethnicity, religious and linguistic backgrounds (Australian Government Department of Foreign Affairs and Trade 2009). Most of the working people are older adults and therefore posses most of the discretionary income. In addition, these groups have families through they can they can expend their resources. Thus, most of the target market for the Burton Musical Jacket is families. The Australian government campaigns for a society that has respect for human rights, respects and recognizes cultural differences, celebrates and makes use of its cultural diversity, and encourages cohesion among members of different communities (Australian Government Department of Foreign Affairs and Trade 2009). In order to achieve this, Burton Company has agents who operate in all regions of Australia to promote its products. In doing this, the company uses a motto that “a people that wears the Burton Musical Jacket lives as one. Imagine seeing everyone in this great fancy jacket.” Australia’s linguistic diversity is reflected in the diversity of languages used in the media such as newspapers and TV (Australian Government Department of Foreign Affairs and Trade 2009). This information is important in aspects of business such as advertising, along which the company projects to advertise in all languages such as English, Arabic, French, Chinese, Korean, and so on in order to penetrate a wider market. The different ethnic communities in Australia have different aspects of social life and attitudes towards leisure (Australian Government Department of Foreign Affairs and Trade 2009) Since the Burton musical Jacket is a fancy device, the company will first target communities and social classes that enjoy fancy devices before targeting the other areas. 11. Technological environment Various instances of technological advancement in Australia have necessitated investment in products that reflect a high caliber of improvement such as the Burton Musical Jacket. The company embraces technologies such as electronic data interchange, which is important for online transactions and advertising. Since most people in Australia are employed, they have very little time for activities such as window-shopping and buying from retail stores. But through electronic data interchange, all products are brought to their desktops, laptops or notebooks in office or at home. This technology has lowered advertising costs while still being popular among many target groups. The company also utilizes data scanning technologies to serve customers at the shopping level and this has greatly improved its efficiency. Through the improved level of technology, the company is targeting a wider market by provision of personalized services online. Customers will be able to book products at their own convenient time and make payment arrangements as it deems fit for them. The facilities will also enable the company to receive feedback from customers through which they decide the kind of products they want, some of which can be tailored based on their own specifications. References Australian Bureau of Statistics, Available from http://www.abs.gov.au/ (May 5 2009) http://www.haiyangarment.com/jacketmanufacturers.html Australian Government Department of Foreign Affairs and Trade 2009, A diverse people, Available from http://www.dfat.gov.au/aib/society.html (May 5 2009) English, J W 2006, How to Organize & Operate a Small Business in Australia: How to Turn Ideas into Success, Allen & Unwin, Sydney Fleming, L 2004, Excel HSC Business Studies, Pascal Press, Melbourne Hai Yan. Jacket manufacturers, Available from http://www.haiyangarment.com/jacketmanufacturers.html (May 6 2009) HKTDC. Car Racing Jacket (10). Available from http://www.hktdc.com/sourcing/industry/en/1738/Car_Racing_Jacket_Manufacturers.htm (May 6 2009) Komninos, I 2002, Product Life Cycle Management, Available from http://www.urenio.org/tools/en/Product_Life_Cycle_Management.pdf (May 6 2009) Lembach, M, Lembach, M & Wood, M 2001, Revise HSC business studies in a month Pascal Press, Melbourne Mwenda, K K & World Bank 2006, Legal aspects of financial services regulation and the concept of a unified regulator, World Bank Publications, New York Pocket Lint, Burton Ronin Audio Stroll Jacket, Available from http://www.pocket-lint.com/news/news.phtml/19222/20246/Burton-Ronin-audio-stroll-jacket.phtml (May 5 2009) Appendix Environmental factors concerning Burton Musical Jacket Current status Best possible Worst possible Most likely The product design provides unique features which set it above competing designs The company ventures more in online advertising and selling to exploit the untargeted market. The technologies used by other companies such Computer aided design, use of Stylist Software, digitation systems and marker making techniques may hinder the penetration of the Burton Musical Jacket in the market With good advertising and promotion, Burton will be able to get a niche and outshine rivals. Read More
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