Burberry uprise and downfall

01 Burberry Marketing Strategy: Failure and Revitalisation Group Members: 0517504 0625284 0625290 0519593 0525607 0509508

Objectives, Background – Arafat

Mistakes in Marketing Strategies,

Brand model, Ansoff Matrix – Inga

Failures – Anna

Revitalisation, Lifecycle – Rashid

Maintaining Success – Stacey

Regional revenue, marketing strategies – Tim

Conclusion – Arafat

Contents 04

Identify the mistakes in Burberry’s marketing strategies/what went wrong

Identify the measures that could have been taken to preclude problems that were experienced

Define possible actions to maintain the position in the market

Objectives 02

British Luxury brand established in 1856 by Thomas Burberry

1920 ‘trench coat’

Endorsed by royalty, politicians and celebrities

Now operates in Europe, North America, Asia

Background 03

A desire to appeal to a wider audience

Change in design

Reduction in price

Product diversification

Excessive check usage on the products

Non-strategic distribution locations

Mistakes 04

http://www.emeraldinsight.com/Insight/

05 The Burberry product/brand model

Existing Markets New Markets Existing Products New Products 06 Ansoff Matrix Diversification N/A Market Development Diffusion ranges in mid 1990s for wider audience (Younger Consumers) Product Development Burberry Accessories i.e. stadium hats, handbags, toys, fragrances etc. Market Penetration Classic garments for existing target market (Trench coats, outwear, etc)

Brand “Hijacking”: Association with hooligans and “chavs”

Counterfeits

£37m Decrease in sales

in 1997

07 Failure: Lost Brand Identity

1997- New CEO

Returning to Traditional Garments

Celebrity Endorsement

Reduced Exposure: Limited Advertising

More Selective Distribution

08 Revitalisation

09 Retail Lifecycle

4 P’s :

Product : Maintain Prestige, Push Product Beyond Plaid

Price : Keep premium pricing

Place : Selective location / Limited Distribution

Promotion : Continue to Place Advertisement in Exclusive Channels e.g. Fashion show

Maintain Good Media Relations

Clamp on Fraud

Continue to research target market

10 Maintaining Success: Recommendations

Regional Revenue 11

More than two thirds of sales - abroad (unaffected by company’s problems in the UK)

Overall sales growth abroad – 11%

Biggest markets – Japan and Spain

Popular with young adults

Marketed by keeping it British

12 Summary International Sales

UK:

Continue to identify product values and attributes.

Balance between accessibility and status

Target audience: those who best meet Burberry’s overall objectives.

Continue market penetration and invest in product development

13 Overall Marketing Strategy

Existing Markets New Markets Existing Products New Products 14 Ansoff Matrix (UK) Diversification N/A Market Development Convert upper-class non-users Product Development New offerings i.e. in accessory market Market Penetration Winning customers and expanding value-added partnerships

Abroad:

Continue frequent flow of new products to Burberry’s stores.

Investment in high potential markets

Continue to represent British culture, history and tradition

15 Overall Marketing Strategy

Existing Markets New Markets Existing Products New Products 16 Ansoff Matrix (Abroad) Diversification N/A Market Development Invest in high potential markets abroad i.e. Eastern Europe Product Development Developing niche accessories for e.g. in 2005 Burberry successfully extended their apparels to include golf wear in Korea Market Penetration Winning customers; upgrading distribution channels

Burberry - one of the most successful British fashion brands.

Has struggled to cleanse its brand image, after years of association with “chavs”, through various strategies.

This transition has allowed a gradual sales growth in the UK.

Has managed to revive as a prestigious and exclusive brand, departing from its “downmarket” brand image

17 Conclusion

Any Questions?

18 THANK YOU FOR YOUR TIME!

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References 19

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