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. PLEASE HIT LIKE IF THE ABOVE PRESENTATION IS HELPFUL ! :)

1. Presented By:
Group 9

2. Summary
• Burberry -Estd 1958
• Thomas Burberry
• Almost 150 years of
history
• Many contributions
to Fashion Industry

3. Summary
• Gabardine, Burberry
Trench Coat
• Burberry check-
Camel
Black
Red
White Plaid Design

4. Summary
• Rose Marie Bravo- CEO
• Many highs
• Lows: during late 1990s
• Old-fashioned products
• Counterfeits
• Diluted Brand Value

5. Porter’s 5 Forces

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. Analysis
Market Position

8. Market Position
• Placed between Functionality and Luxury
• Positioned as “Functional Luxury”
• Polo and Armani: Apparel
• Coach and Gucci: Accessories

9. Various Changes and Effects
on Risk Profile
• Repositioning of the brand
• Updating the product line
• Expanding the Brand Portfolio
• Advertising

10. Role
• Multiple channels
• Multiple brands
• Multiple collection
• Multiple license

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. 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. Customer Base

14. Target Customer
• Two dimensions:

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. 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. 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. Other Product Categories
• Curtains, bed sheets, table cloth, pillows
• Jewelry
• Hair and Cosmetic Products
• Tech Accessories
• Cosmetics
• Sportswear

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. THANK
YOU!
Any
Questions?