burberry case brand, marketing

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Presented By: Group 9

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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 ! :)

TRANSCRIPT

Page 1: Burberry case brand, marketing

Presented By:

Group 9

Page 2: Burberry case brand, marketing

Summary

• Burberry -Estd 1958

• Thomas Burberry• Almost 150 years

of history• Many

contributions to Fashion Industry

Page 3: Burberry case brand, marketing

Summary

• Gabardine, Burberry Trench Coat

• Burberry check-CamelBlackRedWhite Plaid Design

Page 4: Burberry case brand, marketing

Summary

• Rose Marie Bravo- CEO• Many highs • Lows: during late

1990s• Old-fashioned products• Counterfeits• Diluted Brand Value

Page 5: Burberry case brand, marketing

Porter’s 5 Forces

Page 6: Burberry case brand, marketing

SWOT Analysis

•Competition•Popularity in non-target groups•Not enough stores in small cities.

•Expansion ofstores 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 WOT

Page 7: Burberry case brand, marketing

AnalysisMarket Position

Page 8: Burberry case brand, marketing

Market Position

• Placed between Functionality and Luxury

• Positioned as “Functional Luxury”

• Polo and Armani: Apparel• Coach and Gucci: Accessories

Page 9: Burberry case brand, marketing

Various Changes and Effects on Risk Profile

• Repositioning of the brand• Updating the product line• Expanding the Brand Portfolio• Advertising

Page 10: Burberry case brand, marketing

Role

• Multiple channels• Multiple brands• Multiple collection• Multiple license

Page 11: Burberry case brand, marketing

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

Page 12: Burberry case brand, marketing

Transition to more restrained Check or not?

• Check: crucial to core customers• Ubiquity of the check• Check: A cliché?

Underplay Check?

Check

Undercover

Philoso

phy?

•No Aggressive transition•Check: Identity of Burberry for 150 yrs•Customers buying only for the sake of the check•25% sales -SIGNIFICANT

Page 13: Burberry case brand, marketing

Customer Base

Page 14: Burberry case brand, marketing

Target Customer

• Two dimensions:

Page 15: Burberry case brand, marketing

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

Page 16: Burberry case brand, marketing

Popularity of Non-target customers

Develop new line

Do Nothing/Ignore

Or

• 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”

Page 17: Burberry case brand, marketing

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

Page 18: Burberry case brand, marketing

Other Product Categories

• Curtains, bed sheets, table cloth, pillows

• Jewelry• Hair and Cosmetic Products• Tech Accessories• Cosmetics• Sportswear

Page 19: Burberry case brand, marketing

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

Page 20: Burberry case brand, marketing

THANKYOU!Any

Questions?