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Burberry case brand, marketing

This case entitled “Burberry” by Youngme Moon presents the scenario a British luxury goods company “Burberry” under the leadership of Rose Marie Bravo, the new CEO of the company, who completely transformed the company with a battered, rustic brand into a classic yet contemporary brand. Burberry is one of the oldest fashion businesses of the world, founded in 1856 by Thomas Burberry. During this period of almost 150 years, Burberry provided many remarkable products, the most notable being the gabardine-made trench coats, that it invented and the classic iconic “Burberry Check”, the camel, black, red and white plaid design that became its identity. In this period, the company saw many highs (extreme popularity) serving the Royal customers, celebrities, politicians as its clientele but as it approached the late 1990s, it started getting tapped in its own old-fashioned products and thus, its brand value greatly diluted due to parallel trading, counterfeits and lose control over its distribution channel. But as Rose Marie Bravo joined the team, she completely revamped the company’s brand equity, product line, and distribution system and gave a new life to the company. The result was the company sales rose from £225 million in FY 2000 to £594 million in FY 2003.

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Burberry case brand, marketing

  1. 1. Presented By: Group 9
  2. 2. Summary • Burberry -Estd 1958 • Thomas Burberry • Almost 150 years of history • Many contributions to Fashion Industry
  3. 3. Summary • Gabardine, Burberry Trench Coat • Burberry check- Camel Black Red White Plaid Design
  4. 4. Summary • Rose Marie Bravo- CEO • Many highs • Lows: during late 1990s • Old-fashioned products • Counterfeits • Diluted Brand Value
  5. 5. Porter’s 5 Forces
  6. 6. SWOT Analysis •Competition •Popularity in non-target groups •Not enough stores in small cities. •Expansion of stores globally. •Wide age groups. •Can conduct more Burberry shows in different cities. • Eroded Brand Image • Poor Quality and Reliability • Eroded Dealer Confidence • Low Marketing Budget •Well established brand. •Original Design and uncompromising quality •Huge channel network’ •Iconic check •Large range of products S W OT
  7. 7. Analysis Market Position
  8. 8. Market Position • Placed between Functionality and Luxury • Positioned as “Functional Luxury” • Polo and Armani: Apparel • Coach and Gucci: Accessories
  9. 9. Various Changes and Effects on Risk Profile • Repositioning of the brand • Updating the product line • Expanding the Brand Portfolio • Advertising
  10. 10. Role • Multiple channels • Multiple brands • Multiple collection • Multiple license
  11. 11. Overall Brand status • Burberry’s to Burberry • contemporary logo and packaging • Repositioning of the brand into a “luxury lifestyle brand that was aspirational, stylish, and innovative” • Extension of the customer base, updated the product line. • Products responsive to the changes in fashion industry • Expansion of the brand adding “Prorsum” a leading luxury high end brand • Introduction of innovative advertising bringing in the best experts of the time
  12. 12. Transition to more restrained Check or not? • Check: crucial to core customers • Ubiquity of the check • Check: A cliché? Underplay Check? Check Undercover Philosophy? •No Aggressive transition •Check: Identity of Burberry for 150 yrs •Customers buying only for the sake of the check •25% sales -SIGNIFICANT
  13. 13. Customer Base
  14. 14. Target Customer • Two dimensions:
  15. 15. Target Customer • 1. Generation – Original Core Customers: Older Generation – Younger, fashion-conscious Generation • 2. Target Customers relative to competitors – For Apparel: between Polo Ralph Lauren and Giorgio Armani – For Accessories: between Coach and Gucci
  16. 16. Popularity of Non-target customers Develop new line Do Nothing/IgnoreOr • Urban, Hip-hop musicians • Not what they had planned • Two possible choices: Capitalize the new market •Low brand loyalty •Will move to the next new thing “BUZZ”
  17. 17. Launch of the “Brit” • New perfume line: • Posh, high end market • Launch or No Launch? • YES, DEFINITELY • New “accessible entry point” • But • Limited customer base • Should • Wider market English women, in 30s? •Extend to 25 to 30s,even 40s •Outside England too
  18. 18. Other Product Categories • Curtains, bed sheets, table cloth, pillows • Jewelry • Hair and Cosmetic Products • Tech Accessories • Cosmetics • Sportswear
  19. 19. Conclusion • Burberry successful in reinventing itself • But just the beginning • A long way to go • Shedding of old leaves • New leaves yet to grow • Venture into new product categories • Flagship: Real Differentiator
  20. 20. THANK YOU! Any Questions?

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