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Burberry

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Burberry

  1. 1. Group 4, Section A Ajitesh Jaiswal (08P007) Anuj Dharnidharka (08P013) Reeti Bhatia (08P039) Siddharth Singh (08P048) Subhratosh Khan (08P050) Varun Malik (08P053)
  2. 2. 1860 • Waterproof and breathable material is invented by Thomas Burberry • Considered leisure class sports wear WW I • Designed officer’s uniforms for British Army 1924 • Burberry’s classic “check” appears as the lining of trench coats 1930’s • “For safety on land in air of afloat, there is nothing equal to the Burberry coat
  3. 3. 1940’s • Burberry meets Hollywood 1960’s • Supermodel Twiggy revitalizes the trench 1970’s and 80’s • No longer on fashion runways but trench coat is used in movies like Pink Panther and Dick Tracy 2000 • Plaid of choice for the well-heeled and fashion conscious
  4. 4. • Burberry was originally synonymous with quality and durability • Was part of regulation uniform for soldiers during WW I • Distinctive check pattern begins appearing during the 1920’s and becomes a registered trademark • Celebrities, adventurers and politicians begin to be seen in Burberry’s signature check • Original designs and uncompromising quality make Burberry a symbol of both luxury and durability
  5. 5. • Ownership changes in 1955 and Burberry continues to grow worldwide due to licensing and distribution agreements • Brand becomes licensed from wallpaper to chocolates • Price, design and quality begin to vary • Unauthorised parallel trading occurs • No respect to the brand image • Sold in retail environments inconsistent with its quality proposition • Brand loses its exclusivity
  6. 6. Revenues grow about 3 times within 3 years
  7. 7. New Goal: • To transform Burberry from a tired outerware manufacturer to a luxury lifestyle brand that was aspirational, stylish and innovative Hiring the best talent • Top management team made up of A-list industry talent • People who had worked on shop floors and in fitting rooms • People who knew – What customers wanted – What price points people wanted – Where the gaps were
  8. 8.  Surveyed the market and identified gaps  Goal was to attract younger customers while retaining core customer base  Contemporary logo and packaging were introduced  Didn’t want to be cutting edge nor just classic  Key differentiator from other brands was its functionality
  9. 9. • Updating the Product Line • Slashing the number of product stock keeping units (SKU’s) from 100,000 to 24,000 • Eliminated outdated designs and had a consistent look about products • Almost a 1000 new styles each season across womenswear menswear and accessories but stayed true to its heritage • With non-licensed products Burberry exercised control over EVERYTHING (design, sourcing, manufacturing, distribution)
  10. 10. • Curbed inconsistencies in price, design and quality across markets • Tighter control over distribution • Opening up of flag ship stores – Display full product range – Showcase the vision – Testing ground for new concepts and designs • Create consistent brand image to avoid risk of brand credibility
  11. 11. Lower end • Low price labels to appeal to younger, fashion conscious customers • E.g.: Thomas Burberry and Burberry Blue and Black Upper end (Burberry Prorsum) • Limited distribution, not meant to be a brand for millions of people • Ultra luxury and appeared on runways with the fashion greats • Opportunity to showcase new brand image and get editorial press for its collections • Way to tell people something new was happening at Burberry
  12. 12. • 10 million pound budget to overhaul the image • Aim was to appear trendy without discarding its rich history and heritage • Although the campaigns were chic fun and witty the model used appeared aristocratic and classy • Kate Moss was chosen as brand ambassador because she was ultra stylish yet young and sexy
  13. 13. • The Burberry brand has successfully been turned around • Expansion into product categories such as perfumes, childrenswear and footwear • Popularity of brand among non-target customers needs to be tapped • The distinctive Burberry “check” appears in over 60-70% of all sales, more restrained use is required • Pervasiveness of the “check” needs to be done in a more strategic way (not too much nor too little) • Sustaining the brand positioning • Broken brand has been fixed but biggest challenge now is to continue to grow the brand without risking customer burnout

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