Burberry Case Study examines Burberry's competitive position and strategies under CEO Angela Ahrendts. It analyzes changes Ahrendts made, including tightening control over licensing and distribution. The document defines Burberry's target customer as those seeking functional luxury who prefer classic styles. It explores how Burberry can respond to popularity among non-target customers without devaluing the brand. The case study also evaluates Burberry's 'Brit' perfume launch and what other product categories it should enter.

1. Burberry Case Study
International Fashion Academy
Luxury Brand Management
Strategic Marketing

2. Case Objectives:
1. Compare Burberry’s market position relative to that of its competitors, including
Polo, Coach, Armani, and Gucci. Is Burberry’s competitive position sustainable
over the long-term? Why or why not?
2. Because demand tends to be unpredictable in the world of fashion, the fashion
business is inherently risky. In this context, consider the various changes Bravo
made upon her arrival at Burberry. To what extent have these changes
exacerbated or mitigated Burberry’s risk profile?
3. Describe Burberry’s customer base. Who is Burberry’s target customer? How
could Burberry’s popularity among non-target customers affect the brand? How
should Burberry respond to this popularity?
4. Brand extension: Was it a good idea for Burberry to launch ‘Brit’, the new
perfume line? what other product categories should Burberry be entering?
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

3. Contents:
• History of Burberry Brand
• Brand Positioning
• Bravo’s Strategic Changes
• Defining the Target Customer
• Remaining Competitive
• Brand Extensions
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

4. 1856: Thomas Burberry founds Burberry in Hampshire, England as an outerwear company
1891: Burberry opens its first store in Haymarket
1914: Burberry is commissioned by Great Britain to redesign officers coats,
thus creating the "trench coat”
1920s: The Burberry “check” is developed for the lining of coats
2006: Burberry begins online sales first
2010: Burberry launches its cosmetics line Burberry Beauty
2015: Burberry operates three brands, sold in Burberry
stores, franchises, and department stores worldwide:
• Burberry Prorsum – fashion, styled
• Burberry London – tailored, suiting
• Burberry Brit – casual, weekend wear
Faces of Burberry:
History of Burberry:
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

5. Market Positioning:
• Burberry is positioned as an accessible luxury brand, between mid-level
brands (ex. Polo and Coach) and high-end brands (ex. Armani and Gucci)
• It is also positioned as a functional and wearable brand
• Burberry offers its classic products and also fashion-forward items
• The brand heritage and diverse product mix catering to a large target group
provides a sustainable advantage
Price
Product Mix
Prèt-a-Porter
Price
Product Mix
Accessories
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

6. • Took control of licensing issues, design, production and distribution
• Liscensed products more than doubled in total sales
• 2000- 30.8 Million Pounds
• 2003- 58.3 Million Pounds
• Updated Product line
• Cut the number of product stock-keeping units from 100,000 to
24,00
• Result: keep products up to date
• Streamlined into three collections:
• Womenswear- 450-500 styles each season
• Sporty, Function, Protection AND style
• Menswear – 330-350 per season
• Accessories
• Soft & Hard offerings
• “Accessories are a piece of the dream”
• Higher margins than fashion because more secure purchase,
available to target and aspirational consumer
Bravo’s Changes: Overview
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

7. • Increased prices for positioning
• Revenue increase:
• 2000- 47%
• 2005- 56%
• Added Prorsum label
• Debut at Fashion Week 1998
• Invested in marketing and hiring industry leaders
• Launched flagship stores to display new fashion items for the market
Bravo’s Changes: Overview
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

8. Brand Name:
Bravo began her tenure with a clear rebranding strategy
starting with a new name that brought focus and new
attention to the brand.
Plaid Management:
To prevent oversaturation of the market, Bravo and her team
worked to manage the use of plaid in all fashion and
accessories trying to limit the risk of counterfeit by setting
clear guidelines and standards for its use.
Bravo’s Changes: Rebranding
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

9. Bravo reigned in licensing in weak areas and extended herself in others. In
what seemed to be a shift towards control, licensing deals caused the
Burberry check to flood the market which showed the aspirational success
of a luxury brand but also potentially alienated the target market.
Reward:
• Removed licenses with little
control over quality and
distribution
• Purchased distributors
• Re-established relationships
with quality manufacturers
Risk:
• Too many items on the market at
varying price levels
• May have over extended use of the
Burberry check
Bravo’s Changes: Restrictive Licensing
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

10. • Risk: 10 million pound investment in the re-launching of the brand.
Hired notable photographer Mario Testino.
• Reward: Use of socialite Stella Tenant and supermodel Kate Moss
revitalized the image of the brand, lowering the age demographic and
created an edgier and higher end look for the consumer to identify
with.
Bravo’s Changes: Marketing Investment
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

11. Bravo decreased risks by taking control of the brand name, quality and
distribution and directing the public perception through focused advertising
campaigns and high end fashion designs.
Though it could be argued that she over licensed to brand in some respects,
she successfully positioned the brand in the high end luxury market while still
keeping it accessible to aspirational consumers.
Bravo’s Changes: Results
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

12. • A man or woman seeking functional luxury
• A customer preferring classic style
• Partial to accessibly priced products
• Has access to disposable income
• Cross-Generational market
• Product mix includes “continuity” items and “fashion”
items providing mass appeal
• Large amount of aspiration purchases
Burberry’s Target Customer:
• Brand awareness among non-target market can add to brand equity, though it reduces exclusivity
• To avoid devaluation of brand, anti-counterfeiting operations are critical, as is a more limited use
of the plaid tartan design
• If Burberry wants to profit off of consumers outside of its current target market, it can expand its
entry-level product line
Non-Target Market Brand Awareness:
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

13. Social Class:
Executives
Professionals
Professional Support
Clerical, Service, & Blue Collar
Part-Time & Unemployed
$200,000 >
$100,000
$72,500
$50,000
$32,000
$25,000
$20,000
$15,000 <
*Primary Target Group
$70,000 USD +
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

14. VALS Framework Segmentation:
Ideals Achievement Self-Expression
Believers Strivers
Thinkers
Makers
High Resource
High Innovation
Low Resource
Low Innovation
Achievers:
• High resources
• Motivated by achievement
• Enjoy showing off success
• Preference for established brands
Strivers: for accessories
• Lower-Resources
• Highly Style-Conscious
• Desire to Emulate Achievement
Achievers Experiencers
Survivors
Innovators
Innovators:
• High-Income
• High Self-Esteem
• Materialistically Indulgent
• “Finer things in Life”
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

15. Consumer
Conditioning:
Primary Reference Group Secondary Reference Group Shopping Displays
Television
Style Icons
Childhood Peers Childhood PeersChildhood Travels
Adult Travels Historic Appreciation Style Icons
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

16. Marketing Mix:
Capturing the Target Market
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

17. Product:
Womenswear Menswear Childrenswear Cosmetics
Accessories
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

18. Place:
Mono-Brand Boutiques Multi-Brand Stores Online Portal
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

19. Price:
Accessories:
Menswear:Womenswear: Childrenswear:
Cosmetics:
$95 - $4,300 USD $167 - $2,900 USD $79 - $289 USD
$22 - $125 USD $150 - $3,040 USD
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

20. Promotion:Magazines: Social Media: Digital Content:
TV Commercials: Concert Sponsorships:Billboards:
Promotion:
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

21. Prorsum, Burberry’s award
winning label is the key to
Burberry staying relevant in the
luxury market. Their ability to
enter into high fashion keeps the
brand interesting to the target
luxury consumer and aspirational
to other consumers.
Staying Competitive:
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

22. Plaid management and restrictive licensing is
also key to the survival of the brand.
Although estimates of 25% of revenue comes
from items with the plaid, popularity among
non target consumers such as hip hop artists
detracts the core target.
Bravos goal of decreasing the visibility of the
check in the future is important to avoid over
saturation and alienating the core consumer.
Staying Competitive:
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

23. Keeping the story alive through the use of
British icons (ex: celebrities, models, public
figures) in marketing will help keep the brand
relevant in the luxury market and keep it
noticeable in the media.
Romeo Beckham – Childrenswear 2014
Staying Competitive:
Eddie Redmayne and Cara Delevingne S/S 2012
Cara Delevingne and Kate Moss, My Burberry 2014
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

24. Fragrances are a key gateway item for
luxury brands. The launch of Burberry Brit
was another way for Bravo to reach a
younger demographic and open doors to
new consumers.
Price: $94 USD
Promotion: Use of younger models and
playful campaigns
Distribution: Brand stores, Department
Stores, Beauty stores
Brand Extension: Burberry Brit
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

25. The goal of becoming “like Chanel No.5” was
over reaching as it does not have the
historical status. Chanel No. 5 also has
different demographics than the Burberry
Brit goal of:
“30s, English, Charismatic”
This is the right demographic for the re-
launch of the brand, but wrong competitor
expectations.
*Next steps would include launching men’s
fragrances and expanding the Burberry Brit
line to include complimentary items for gifts
Brand Extension: Burberry Brit
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

26. Homegoods: In staying with the heritage of the brand, offering traditional home items
such as textiles, china and decor in the Burberry brand would continue to reach the
target market and open more gift offerings.
Target Customer Home Purchase
Future Brand Extensions
Extended Target Home Purchase or Gift Items
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

27. Bespoke Luxury is a growing trend in the industry and offering personalized
products such as monograms and other goods would continue to reach the
sophisticated luxury consumer.
Monogramed Poncho Runway AW 14/15
Future Brand Extensions
Monogramed Poncho popularity amongst celebrities
Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015

28. Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015
FIN

29. Lisa Delamarter Ι Vik Pisipati Ι January 15, 2015
Works Cited:
Davis, Scott. "Burberry's Blurred Lines: The Integrated Customer Experience." Forbes, 27 Mar. 2014. Web. 6 Jan.
2015. <Burberry's Blurred Lines: The Integrated Customer Experience>.
Goldfingle, Gemma. "Analysis: Burberry's Brand Revitalisation Continues in Bid to Attract New Customers."
RetailWeek, 14 Sept. 2012. Web. 7 Jan. 2015. <http://www.retail-week.com/analysis-burberrys-brand-
revitalisation-continues-in-bid-to-attract-new-customers/5040531.article>.
"Annual Report 2013/14." Burberry PLC. Web. 6 Jan. 2015. <http://www.burberryplc.com/investor_relations/
annual_reports/annual-report-2013-14>.
Schlesinger, Fay. "According to Burberry's New Shopper System, Are You Brit, London or Prorsum?" Daily Mail UK,
18 Nov. 2009. Web. 5 Jan. 2015. <http://www.dailymail.co.uk/femail/article-1228672/According-Burberrys-
new-shopper-class-Brit-London-Prorsum.html>.