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02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.
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02_Brand Consultancy_Burberry By Emily Chen, Oct 06 2009 With Comments Of Prof. Vb.

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Luxury Strategy- Case Studies -Burberry By Emily Chen, Oct 06 2009

Luxury Strategy- Case Studies -Burberry By Emily Chen, Oct 06 2009

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  • 1. Marketing of Luxury & Differentiated Products<br />Prof . Vincent Bastien<br />Student: Yu-ting(Emily) Chen,<br />@HECParis, Luxury Branding Strategy Course<br />Oct 6h, 2009<br />
  • 2. Strategic Moves<br />Luxury Strategy <br />1940s: film icons, Audrey Hepburn/ King Edward VIII)<br />1998~Rose Mary’ Bravo:Combination of Heritage/Prestige Luxury, Fashion and Premium<br />Premium Strategy: 1856~1930s British Army<br />“For safety on land, in the air or afloat, there’s nothing to equal the Burberry coat”<br />Fashion:1970~1990s<br />Japan Licensing.<br />World-wide market. Loss of Exclusivity<br />
  • 3. Revival<br />What ? Goal: Accessible Luxury<br />Who : Rose Marie Bravo<br />When : 1997~<br />Why-What went wrong?<br />Corporate Image: Stodgy looking&conservative: Skewed old customer base<br />Parallel Trading”-disrespect to the brand image in Prices, Distribution Channel<br />
  • 4. Revival<br />Why-What went wrong? <br />Over-Licensing<br /> Loss of Exclusivity<br />Inconsistant Quality Proposition<br />Product Range (from wallpaper to chocolate)<br />
  • 5. How? Repositioning 4Ps : Products I. Brand Architecture <br />Licensing: Non-Japan & Japan since 1970s<br /><ul><li>40 yrs
  • 6. Profit vs Brand Image: total sales in retails=rest of the world!
  • 7. Now: Direct Imported London Int’l Accessories Products</li></ul>Burberry Blue Label (Women,Men,Accessories)<br />JAPAN: Burberry Black Label (MEN)<br />Non-Licensing : control from design to manufacturing & distribution.<br />
  • 8. Revival: Product II. Brand Architecture<br />
  • 9. Revival: Product III. Brand Architecture<br />Product lines: Re-classified: continuity / Fashion-Oriented <br />Range: Womenswear, Menswear, Accessories, <br />
  • 10. Revival: Product II. Brand Architecture<br />Expanding the Brand portfolio: Prorsum<br />
  • 11. Revival: Price<br />Pricing ($ Up, gross margin up)<br />Apparel: Polo Ralph Lauren & Giorgio Armani<br />Accessories: Coach & Gucci<br />(P.19, Ex. 15): Trench Coat as the Luxury Product<br />Entry accessories product for potential clients<br />
  • 12. Revival: Price<br />Trench Coats<br />
  • 13. Revival: PlaceDistribution model Evolution<br />Distributors: Buying (Spain,Korea,Taiwan) , Ending, Renegotiating (Japan)<br />Solid Multi-channel Distribution: Retail, wholesale, and Licensing channel <br />New Flagship Stores: London ,Barcelona, NY, Japan 2004, Imported int’l London Collection Accessories<br />Singapore 2009<br />Story-sharing: Lafayette vs Le Primtemps<br />
  • 14. Revival: Publicity<br />Renaming:<br />Strong message of discontinuity while cultivating the rich past heritage of the brand<br />
  • 15. Revival: Publicity<br />Ads Campaign: <br />Modernity vs Classism <br />1998 Stella Tenant(Classism)<br />1999 Kate Moss (Modernity)<br />
  • 16. Referece<br />Material by Prof. VicentBastien<br />Burberry 2008-09 Annual Report<br />http://www.topclassmagazine.com/articolo.aspx?idArticolo=76&idCategoria=37<br />http://www.theage.com.au/lifestyle/fashion/facing-a-chill-burberry-bets-on-bags-20090403-9ofr.html<br />http://www.fashionunited.co.uk/News/Leads/Burberry_increases_revenue_200804155469/<br />http://www.independent.co.uk/life-style/fashion/features/best-of-british-why-burberry-has-the-fashion-business-all-wrapped-up-1784394.htmlhttp://web.mit.edu/wwinnie/www/papers/burberry.pdf<br />http://www.uwlax.edu/URC/JUR-online/PDF/2004/nguyen.pdf<br />
  • 17. Comment by Prof. VB, Oct-06,2009<br />Potato vs Roots<br />Burberry’s Potato<br /> King Edward VIII,<br /> British Army, <br />UK Classical: Rain, Umbrella, etc<br />
  • 18. Strategic Moves II. From Luxury SKU mgt to Fashion SKU mgt then reform it back to Luxury SKU<br />For obtaining new <br />customers, to gain awareness, but not <br />for profit-orientation<br />
  • 19. Licensing Strategy<br />Non-luxury strategy, not the best strategy but Strategy in the beginning: Good for entry a new market<br />Fix a deadline: Have to Purchase back someday <br />Eg. Ralph Lauren, licensing in Japan<br />Q: But what if it requires special skills? Buying back might cause more costs on learning. <br />
  • 20. Luxury vs Positioning? Accessibility?<br />Positioning: start from the product itself, then: where is my competition?<br />Accessibility: dangerous for exclusivity Entry product<br />Chanel: Not fashion strategy <br />

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