An international brand/business analysis of Burberry.Burberry is one of the leading British luxurious clothing brand, having a great iconic history of about 200 years.

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2. History
 Founded in 1856 by Thomas Burberry in
Basingstoke, England
 Innovative in fabric and outwear design
 1895 Burberry develops a coat for British officers
during the Boer War: early trench
 1914 Epaulettes and „D“ rings are added: Birth of
the trench coat
 1955 Burberry was awarded a Royal Warrant by
Queen Elizabeth II

3. Heritage
 Outerwear core with adventure/exploration history
 Iconic products
 Burberry was originally synonymous with quality and durability
 Was part of regulation uniform for soldiers duringWW I
 Received royal warrant by British royal family
 (Burberry check) world’s most recognized and widely copied
tartan pattern
 Past: classic, rogue outerwear brand. Future: next generation,
 Fashionable youth. “Burberry chic”

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5. Corporate Identity
 1920 The Burberry Check, registered as a
trademark, was introduced as a lining to the
trench coat.
 Itwas later used for a broad variety of accessories
and clothes and became more symbolic as the
actual logo

6. BRAND & CULTURE:
 Quintessential British fashion with outerwear core
 -One of the oldest & most respected British labels
 -Leading luxury brand with global business found in 26 stores worldwide
 -Iconic trench coat, trademark check and Prorsum knight heritage logo
 -Brand leader in digital communication (social media, burberry.com, fashion
shows)
 -Personalized customer care offering consumers a superior shopping
experience
 -Social Responsibility (Burberry Foundation)

7. USP
 Authentic British heritage
 Rooted in integrity of outerwear
 Broad consumer appeal
 Across genders and generations
 Global reach

9. Consistent execution of key strategies
 LEVERAGE THE FRANCHISE
 Outerwear around half of apparel sales
 Significant opportunity in menswear; grow tailoring
 Unlock the potential in licensing
 Directly operating fragrance and beauty
• Greater brand control
• Under-penetrated; significant opportunity
 Digital marketing critical for reach and engagement
 Innovation in social media: nearly 15m Facebook fans

10. INTENSIFY NON-APPAREL
 Innovation in large leather goods, half of non-
apparel
 Significant opportunity in men’s accessories,
especially in male-focused Emerging Markets
 Continued opportunity in soft and shoes

11. ACCELERATE RETAIL-LED GROWTH
 RETAIL-LED GROWTH
 Investing in flagship markets, biased to
 Larger store formats
 Focus on driving retail productivity through
 Monthly floor sets and replenishment
 Building customer centricity with investment
in customer insight

12. INVEST IN UNDER-PENETRATED MARKETS
 Move from franchise to direct control over time; Increase investment
in retail and infrastructure
 Drive productivity in China; evolve store network
 Develop new high potential markets including
 Middle East, Central/Latin America and India
 Continued opportunity in US wholesale; 9% of group retail/wholesale
revenue

13. PURSUE OPERATIONALEXCELLENCE
 Support business growth in logistics
 Drive efficiency through existing supply chain infrastructure
 Improve assortment planning and reduce inventory growth

15. DIVERSIFIED BUSINESS MODEL
 By channel
 By region
 By product

16. STRONG FOUNDATION FOR SUSTAINED PROFITABLE
GROWTH
 BY CHANNEL
Retail expansion: c. 12-14% new space
in FY 2013
 BY REGION
Drive growth in core regions,
especially flagship markets
Emerging Markets growth
and evolution
 BY PRODUCT
Accessories
Women
Men
Children's
Beauty

20. Image problems and its buildup
strategies

21. Image Problems
 Burberry became mainstream culture, threatened to lose its luxury image
 Check became ubiquitous
 Kate Moss: not upmarket
 Became popular with British football casual cult, associated with chavs
and hooligans
 Pubs started to ban people dressed in Burberry
 No respect to the brand image
 Sold in retail environments inconsistent with its quality proposition
 Brand loses its exclusivity

23. The 90s: First Repositioning
 1997 To over come retail problems, Burberry repositioned itself through
new design, merchandising and marketing strategy
 Strong focus on the Burberry Check
 Broader product line , focus on younger target group
 Kate Moss as new testimonial for instant accessiblity

24. Second repositioning:2000 era
 Recapturing the luxury market
 Baseball Caps removed from sale
 Reduced visibility of the Burberry Check
2001: 20%
2004: <5%
 Kate Moss got replaced by Rachel Weisz
(Upper Class, sophisticated, elegant)

25. A new era: (Digital age)
 New Creative Director: Christopher Bailey
 Focus on sub brand/catwalk label Burberry Prorsum
 2009 Return to LFW for the 25th anniversary of the
British Fashion Council: celebration of Britishness,
pushing London as fashion hotspot
 New testimonial, Emma Watson is appealing to young ,
but upscale target group

26. Marketing strategy:

27. COMPETITIVE ADVANTAGE
• -Performance based advertising
• -Cost effective for international banner and text ad campaigns
• -Text and image ads supported
• -Placement is automated, more relevant to users
• -Ads are placed on a wide range of sites not just search engines

28. TARGET MARKET
-Burberry maintains a broad appeal across dual gender audience, 20s to 50s
-People with a medium to high standard of living
-Accessible “functional” luxury
-Cross-generational:
-Mature audience seeks classic appearance
-Youth audience seeks innovative/contemporary design

29. STRENGTHS & WEAKNESSES
Existing Strengths
-Strong/proven management team
-Licensing growth. High incremental
return on incremental capital
-Well-established luxury brand with
classic heritage products
-Powerful celebrity endorsements
-Iconic products, logo, check print
-Accessible “functional” luxury
-Progressive digital communication
(website, fashion shows, social media)
Existing Weaknesses
-Low vertical integration reduces
capture of margin and value from
manufacturing
-Apparel segment has increased
fashion risk but accounts for majority
of profits
-Internal brand awareness confusion
(Burberry London, Burberry Brit,
Burberry Prorsum, etc.)

30. Embracing Social Media:
 Burberry has a sophisticated digital strategy
 Youtube channel
 Facebook fanpage
 Twitter Account
 Engaging younger customers with the brand
 Giving them a unique insight/background
information
 Using the opportunity of feedback

31. Before
• Dependent on licensing
and distribution
arrangements
• Limited set of products
• Brand image of being
staid and boring
• Just another clothing
brand
After
• Distribution strategy
was overhauled
• Product line was
revamped
• Seen as being young
yet classy
• One of the leading
luxury brands of the
world

32. Current strategies

33. Changing the way things are
done
New Goal:
• To transform Burberry from a tired outerwear manufacturer
to a luxury lifestyle brand that was inspirational, 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

34. Repostioning the Brand
 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

35. Changes on the ground
• 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
women swear menswear and accessories but
stayed true to its heritage
• With non-licensed products Burberry exercised
control over EVERYTHING (design, sourcing,
manufacturing, distribution)

36. Changes on the ground (contd.)
• 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

37. Expanding Brand Porfolio
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

38. BURBERRY’S COMPETITION
In competition with Burberry there are a lot of companies like
Coach or Gucci.
But in the three years since Burberry’s floatation on the London
Stock Exchange in 2002, the Company has enjoyed exceptional
growth, with revenues growing over 40% and operating profits
increasing in excess of 80%. Looking to the future, Burberry is
committed to build upon this momentum in order to continue to
generate shareholder value over the long term.

39. The Next Five Years
• The Burberry brand has successfully been turned around
• Expansion into product categories such as perfumes,
children swear 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

40. China:
 The integration of the company’s China operation was
finalized and enhanced merchandising, marketing and
store service.
 Intensified marketing focus extended reach and relevance.
 Burberry achieved a leading luxury position on Chinese
social media platforms, launched a simplified Chinese
version of burberry.com and was named the brand with the
second-highest ‘digital IQ’ in China by the influential L2
think tank.

41. Japan:
 Sold in Japan and made locally
 High quality apparel but lower positioning
and price points than the International Line.
 Weaker accessories due to licenses held buy
small manufacturers.
 •Blue and Black Labels.

42. USA:
 In the United States, over 30 new women’s,
men’s, accessories and children’s shop-in-
shops were opened in key department stores.

43. India and Middle East
 In India, Burberry is still new but they focuses
but they focuses on formation of a new
subsidiary with a local partner in
Saudi Arabia.
 From that subsidiary partner ,they are also
have a presence in Middle East.

44. Thank you