Burberry group PLC is one of the leading manufacturers of high-end luxury goods. They specialize in selling outwear, accessories, fragrance, clothing for women, men and children. The iconic checkered or tartan pattern of Burberry is a distinctive style adopted by the company. Originally founded in 1856 and was bought by Great Universal stores PLC in 1955 (Phan, Thomas and Heine, 2011). Company has managed to sustain and thrive. In 2006, Angela Ahrendts took over the company from Rose Bravo. She brought in a number of innovative marketing strategies of the company. During Angela Ahrendts a “Multi Dimensional strategy” was adopted in order to make sales. According to a 2013 report net asset value of Burberry was estimated to be 4.34 Billion (Johansson, 2014). In 2014 Christopher Bailey Took over the company and has been presiding over the company as CEO (Ward, and Dahl, 2014). The thorough marketing and brand strategy made by Burberry is explained in detail in the following.

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Case study Analysis: Burberry
Name
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Date
University

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Table of Contents
CASE STUDY ANALYSIS: BURBERRY..........................................................................................1
PART 1. BURBERRY MARKETING STRATEGIES FROM 2006 TO PRESENT...............3
INTRODUCTION.....................................................................................................................................3
OVERALL MARKETING STRATEGY OF THE COMPANY...................................................3
BRAND REPOSITIONING STRATEGY ..........................................................................................4
CURRENT BRAND POSITION...........................................................................................................4
MARKET SEGMENTATION...............................................................................................................4
4 PS OF MARKETING FOLLOWED IN BURBERRY.................................................................5
PROMOTION OF THE PRODUCT THROUGH OMNI CHANNEL MARKETING STRATEGY .......................5
Social media and digital media: ....................................................................................................................... 5
PRODUCT ALIGNMENT: .......................................................................................................................................6
PRICE.........................................................................................................................................................................7
PLACE........................................................................................................................................................................7
MARKET ORIENTATION....................................................................................................................7
CORPORATE SOCIAL RESPONSIBILITY (CSR).......................................................................8
CONCLUSION ..........................................................................................................................................8
PART 2: RECOMMENDATION...............................................................................................................9
COUNTRY-SPECIFIC STRATEGY ALIGNED WITH PRIMARY OBJECTIVE.................................................9
INCREASE IN CHILDREN WEAR.......................................................................................................................10
Facilitate better relations with target consumers by focusing on Heritage of the brand.......11
OVERALL REDUCTION IN LUXURY MARKETS ...........................................................................................12
BRAND DISSONANCE WITH MIDDLE INCOME SHOPPERS .......................................................................13
ENHANCING PRODUCT LIFE CYCLE...............................................................................................................13
REFERENCE.......................................................................................................................................... 15

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Part 1. Burberry Marketing Strategies from 2006 to Present
Introduction
Burberry group PLC is one of the leading manufacturers of high-end luxury goods. They
specialize in selling outwear, accessories, fragrance, clothing for women, men and
children. The iconic checkered or tartan pattern of Burberry is a distinctive style adopted
by the company. Originally founded in 1856 and was bought by Great Universal stores
PLC in 1955 (Phan, Thomas and Heine, 2011). Company has managed to sustain and
thrive. In 2006, Angela Ahrendts took over the company from Rose Bravo. She brought
in a number of innovative marketing strategies of the company. During Angela Ahrendts
a “Multi Dimensional strategy” was adopted in order to make sales. According to a 2013
report net asset value of Burberry was estimated to be 4.34 Billion (Johansson, 2014). In
2014 Christopher Bailey Took over the company and has been presiding over the
company as CEO (Ward, and Dahl, 2014). The thorough marketing and brand strategy
made by Burberry is explained in detail in the following.
Overall Marketing Strategy of the company
Company follows strategic marketing strategy that is maneuvered according to the global
markets and competition. Initially the company wanted to change its brand image to
relate to the consumer (Butler, 2013). They wanted to portray Burberry as essentially a
brand that sells that high quality high value that entices the younger demography
(Beverland, Nielsen, and Pryce, V., 2015).

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Brand repositioning Strategy
Prior to 2006 the brand Burberry followed traditional models of conducting business.
There were fundamental changes in the organizational structure of the company along
with branding strategies (Mason and Wigley, 2013). Initially Burberry made products to
suits whims of every designer and there was a general brand image that the company was
aligned to older times in history. There were many products made by the company
nevertheless there was not an integrated brand image schema adopted by the company
(Zheng et al., 2013). In 2006, Burberry brand image was repositioned. It was realigned to
the branding strategy. The brand image was “One brand One Company”.
Current Brand position
Currently Burberry has positioned itself as a brand that serves accessories and clothing
market. The rival competitors of Burberry are Gucci, Coach, Armani and Polo. Apart
from this there are also local competitors that are specific in every market that competes
with Burberry (Ahrendts, 2013). Company has managed to emerge as a Brand that sells
both accessories and clothing. It has aligned itself to be a product that is considered to be
comfort luxury (Ahrendts, 2013). It has an eclectic mix of products. Apart from this the
company has also maintained the traditional tartan pattern in many of its design elements.
Market Segmentation
Burberry tries to sell its products to all the demography in the market. It can be used by
all people in the demography and relate to the product. Nevertheless the key market
demography of the product is youth demography between the ages of 18 to 30 (Ahrendts,
2013). Adults whose ages range between 30 to 40 years are also found to be one of the

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key targets of the marketing strategy. Higher income families whose disposable incomes
are high are another key segment (Ahrendts, 2013). They target youth demography
primarily by explaining about the unique fashion trends of the product. A number of
marketing channels are dedicated to entice the youth demography of the population.
4 Ps of Marketing followed in Burberry
Promotion of the product through Omni channel Marketing strategy
Traditionally from fashion shows retailers from various outlets used to buy products and
stock them in their stores. From which the product was sold to the actual consumer.
Company aggressively embarked on flash sales (Zhang, Kim, and Xing, 2015). It is a sales
concept where there are a number of discounts and value added services that are provided
for the products by the companies. Omni channel marketing and promotion is easily
facilitated by the concept of flash sales (Skorobogatykh, Saginova, and Musatova, 2014).
Company focused on promotions of sales through online and retail channels. The
company to sell the products established “Brick and mortar” concepts in its online stores
(Alberti, and Pizzurno, 2013.). In order to enhance the in store experience it added a number
of characteristic features to create a definitive brand persona for the product (Ahrendts,
2013). Celebrity endorsements were a key factor to develop sales. Product lifecycle was
enhanced because of these celebrity endorsements (Ahrendts, 2013).
Social media and digital media:
Special importance was given to social media and digital media tools by Burberry in
order to sell its products (Phan, Thomas and Heine, 2011). There was a lot of importance
given to social media like Facebook, Twitter. Company has one of the highest numbers of

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people who are following the brand in social media. This factor had enabled the company
to shift from traditional brand persona to a more (Phan, Thomas and Heine, 2011)
Company aligned the marketing strategies to cater to the Business-to-Business marketing
and Business to Consumer marketing (Ahrendts, 2013). There has been a shift from
wholesales marketing to businesses to consumers that has been observed by the company.
Owing to the company opting for online retail channels it was able to create different
channel that sold products to the end consumer directly.
Product Alignment:
There were a number of merchandises that was produced by the company. Initially
auditing was done. It was based on qualitative and quantitative assessments
It tried to suit the needs of every retailer. This made production process extremely
cumbersome and extensive time was spent in actual designing of the product. The
company decided to focus on Core and it reduced product diversification. Creative team
designs the product and makes the manufacturers produce the product.
There are three fundamental classifications of the product it is Prorsum or the Premium
range this accounts for 10% of the sales, London range and Brut range that caters to the
casual range of the products (Hennigs, Wiedmann, and Klarmann,2012). In the new product-
designing model the retailers were not allowed to discuss about the product they desire
rather sales people sold the products that was manufactured by the company (Miller and
Mills, 2012). This was a measure undertaken for practical feasibility purposes.
Apart from this Ahrendts reduced dependence of the Tartan pattern of the company to
10% this measure was to reduce counterfeiting of products (Ahrendts, 2013).

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Price
Burberry follows competitive pricing strategies. They price their products according to
the other high value luxury brands like Louis Vitton, Gucci and Armani etc. Brand image
of the company is that it portrays exclusivity and luxury (Hennigs, Wiedmann, and
Klarmann, 2012). If the product prices the product below the usual pricing schema people
will wonder about the quality. Niche consumer base for the product are high-income
individuals who want quality (Kim and Ko, 2012). If the price is reduced the brand image
of the company will be affected markedly (Peng and Chen, 2012). Hence the company
adopts competitive pricing strategy. They are priced according to the competition.
Place
Physical retail outlets are strategically placed in locations where the premium consumers
frequent (Karen and Micheal 2012). They are placed in locations where the consumers
can experience unique services that are offered by Burberry (Yu, Lin and Chen, 2013). In
an effort to reach to a wider audience the company utilizes online channels that are for
potential retailers and consumers.
Market Orientation
The company was able to change its brand persona and meet consumer demands. In 2006
the company management realized that it was not enough to produce merchandise they
should be essentially given an experience (Kajalo, and Lindblom, 2015.). This is very true
where luxury brands are sold. In spite of the growing importance to online channels,
much number of consumers prefers retail experience in the case of luxury brands
(Caniato, Caridi, and Moretto, 2013.). Prior to 2006 the company retail outlets each had its

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own image and delivered services (Donnell, Hutchinson, and Reid, 2012.). This factor
changed in the company. The company wanted a uniform consumer experience where the
consumers were given the same high quality service in all their retail and online stores.
They oriented their marketing strategy to meet consumer demands and expectation.
Company realized that to survive it is mandatory to be product oriented, interact with the
target consumer base through online and retail channels.
Corporate Social Responsibility (CSR)
They have also embarked in a number of socially responsible activities to connect with
the audience in general (Schramm-Klein, Morschett, and Swoboda, 2015).. Company has also
adopted a number of channels to reduce its environmental wastage and carbon emissions
in its production process. Every aspect of their supply chain is checked to find ways to
optimize resources and reduce wastage in the process. These CSR activities have also
enabled the brand to gain a lot of brand equity in the process.
Conclusion
To conclude the company utilizes strategic marketing strategy that uses Omni channel
tools to interact with the consumers. From 2006 onwards, the company has changed the
internal organizational structure, which has reflected in the marketing strategy. It has
integrated certain products. Established a separate creative design team in order to create
new designs. There has been increasing importance given to social media channels and
online channels to reach a wider audience and create brand awareness of the product. It
had tried to create homogeneity in its retail operations to create an experience for the
brand. It has emerged as a strong global player owing to these activities.

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Part 2: Recommendation
Country-specific
Strategy aligned
with Primary
Objective
Burberry currently focuses its strategy for the high-income groups
all over the world. There is a general good brand image that is
associated with the product (Cooper, Miller, and Merrilees, 2015). To
increase the product sales it has been recommended that the
company leverages global brand image. Homogeneity should be
structures in its retail experience. They also have distribution
channels that are strategically maneuvered in order to cater to the
consumers (Kumar, 2007). The company already has focused its
efforts to create this persona. It should create a special line of
product and develop a marketing strategy specific for the country as
well. It should not deviate from the core value and objective of the
company nevertheless must also factor new marketing strategies for
the different countries. In 2011, Blue label was exclusively
launched for the Japanese audience (Kim and Mauborgne, 2015 ) . It is
recommended that the company create similar strategies for
emerging countries such as China (Songer, 2014). Key Flagship
stores should have exclusive product range in order to entice more
audience.
According to consumer survey data it has been found that in the
emerging markets there is newfound individualism (Songer, 2014).
Burberry should launch key products that are developed to meet the

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requirements of the individuals in the emerging countries. It is
recommended to create specific marketing strategies for Chinese,
Chinese, Indian and Middle Eastern markets. Sales revenue in the
apparel industry has increased by 30% in the last few years in India
(Gupta, 2014). There is 20% increase in the Luxury market sector
in the Indian markets (Jayasankaraprasad, 2014.). Youth
demography of the Middle eastern countries has recently developed
affinity to youthful brands that are chic and high quality. Chinese
markets have increasing disposable income of the people. By
focusing on these markets the company would boost more sales and
increase profits (Gupta, 2014). One key factor that the company
should safeguard against itself is to ensure that counterfeiting of
products should be avoided. It has found to be pronounced in the
emerging markets (Davis, 2014). Already the checkered pattern
utilized by the company has been counterfeited. It needs to have an
effective unique style that sets it apart from its competitors.
Increase in
Children wear
From actual sales figures it has been found that 40% sales of
Burberry products was actually from its accessories division. Rest
of the sales was from women, men apparel. Only 5% of the sales
are from children apparel.
Around the world there has been decrease in the number of children
being born. This has lead to a new interest for buying premium
products for children wear. In Japan there has been 3% increase in

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Children wear, In India 2% increase, in China 4% increase expected
to grow up to 11% (Euromonitor.com, 2015). There is also a peer
pressure that exists in these markets to buy high quality apparel for
the children. In the developed markets such as UK there has been
increase in fast fashion retail sales (Euromonitor.com, 2015). Hence in
those areas there has been a decline in the premium range of toddler
clothes (Han, Nunes, and Drèze, 2013). Private labels are not very
popular in the developed markets. Nevertheless there is growing
markets and requirement for the premium brands in emerging
countries and even in some developed countries like Japan hence it
is suggested to dedicate a children line of clothing. World over it is
expected that the Children wear market will increase by 4%
(Euromonitor.com, 2015). This share of the markets can be easily
acquired by premium brands like Burberry.
Facilitate better
relations with
target consumers
by focusing on
Heritage of the
brand.
Burberry has effectively conquered digital marketing tools. It has
millions of Facebook like and Twitter followers (Ahrendts, 2013).
Target marketing to youth and key market. More emphasis given to
non-consumer and overall brand. Reposition of the brand with core
consumers is essential for the company. There have been a number
of endeavors taken up by the company in the recent times.
Nevertheless there has been a very broad approach undertaken by
the company. Louis Vuitton had recently developed the Louis
Vuitton wardrobe. This had essentially resonated well with the key

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target demography. Company needs to maintain its unique British
Heritage and culture when promoting to the consumers (Kapferer,
2015). Burberry has already undertaken effective strategy in regards
to quality and luxury. There should be more importance given to
the cultural significance of the product. This would enable people to
connect with the product.
Overall Reduction
in Luxury markets
There has been a general decline in the Luxury good owing to the
decrease in disposable income of the people in the current fiscal
year. This is due to morose market conditions. Nevertheless there
has been a 4% increase in overall luxury good (D’Arpizio et al., 2014).
Out of this there has been 29% increase in sales of the Accessories
(D’Arpizio et al., 2014) There has been an increasing amount of
people who wanted to buy the luxury products in accessories. It is
recommended that the company focus more on the accessories
department. There is heavy competition in the apparel industry for
Men and Women. Fast Fashion trends have also reduced luxury
markets products (Castelli, and Sianesi, 2015). Internet savvy youth
tends towards hybrid consumption. They tend to be en masse. They
want to try out different products and ranges.
Burberry has already established itself as a company that sells
premium brands to the people (Uggla, 2015). It is not recommended
for the product to sell like fast fashion trends. Nevertheless that can
focus on aspects like Accessories to boost sales.

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Brand Dissonance
with Middle income
shoppers
Cognitive dissonance theory stresses on how the products are
considered to be with dissonance with the consumers. In the case of
Burberry it is considered to be a high quality premium brand. There
is a lot of brand equity for the product. Modern day consumers are
found to be hybrid consumers. They are willing to try out many
products and this is also due to higher disposable income of the
people. A growing number of middle class shoppers occasionally
indulge in premium products ( Dimitrakopoulou, 2015.). A key
objective message of the company and its brand persona seems to
be in dissonance with these consumers based on Cognitive
dissonance theory.
In order to avoid this it is recommended that the company increase
product diversification. It has only targeted high-income consumer.
Modern day consumers are found to be Hybrid in consumption
(Rau, 2004). There is a need to shift focus to middle income people
wishing to buy high luxury products. For this to occur the company
should strengthen its low end product range (Whatley, 2012). Casual
range of products should have more diversity in order to make
middle-income consumers purchase the product. There should be
more emphasis given to catering middle-income consumers.
Enhancing product
Life cycle
Burberry traditionally extend product life cycle by continuity
products. By using the core objective of “Functional Luxury” the
company tries to extend the product life cycle of the brand

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To conclude Burberry is a global market player. It has done a lot of innovative strategies
in the past. This has enabled the company to sustain in the modern era. Nevertheless by
changing some of the key aspects discussed in this essay it is expected that the company
will grow manifold in the future.
(Ahrendts, 2013). Being a premium luxury brand it is recommended
that to increase personal selling and reducing ads. There can be a
few teaser ads that the company can use to create awareness of the
products (Restuccia et al., 2015). It is important for the company to
ensure that they maintain the current standards of exclusivity for the
brand. Even though Macro environmental factors suggest that there
are a number of new threats and competitors that enter the global
markets (Sung et al., 2015). They can affect the selling of the
products. But Burberry is more towards selling of a persona (Stark,
2011). Hence It is recommended that the company should retain its
current product life cycle methods.
Traditionally it has been thought that the product life cycle follows
a bell shape curve. This need not be the case. There can be increase
in sales by changing key marketing strategies. Burberry is about
selling the brand image. The company should focus on adding
intangible value, celebrity endorsement to increase brand image.
This would result in overall growth of the products.

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