burberry competitive review

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Page 1: Burberry Competitive Review

BurberryCompetitive Presentation

October 1st, 2009

Prepared By: Bassem A MasriOctober 1st, 2009

Page 2: Burberry Competitive Review

Historical Timeline

1870

1880

1891

1895

1914

1950

1980s

Thomas Burberry Opens First Shop

Burberry Expands to an emporium

Water resistant gabardine invented and patented in 1888.

London store opens in Haymarket

First clothes for the British military, followed by officer uniforms in 1901

Military trench coat born when the British War Office commissions Burberry to make weatherproof coat with epaulettes and D- ring

Hollywood embraces the trench

Eyewear and timepiece collections introduced.

1955

Burberry receives Royal Warrant, from Queen Elizabeth II. Great Universal Stores acquires Burberry

1964

Asian expansion with master license awarded to Mitsui & Co

1924

Burberry check trademarked and used as lining to trench

1967Use of check

expanded to scarves, luggage and other key items

1967

New York Flagship Store Opens

1997

Rose Marie Bravo appointed CEO

Page 3: Burberry Competitive Review

Historical Timeline Continued

1998

1999

2001

2002

2004

2005

First advertising campaign by Mario Testino, starring Stella Tenant

The high-end Burberry Prorsum women's line is launched

Christopher Bailey takes over as design director from Roberto Menichetti

Stock market listing (IPO). Burberry launches "The Art of the Trench," a made-to-order raincoat service for men and women

Custom Canine, a made-to-order trench coat service for dogs, is launched

Angela Ahrendts appointed CEO effective July 1, 2006. She takes over from Bravo, who is named vice chairman of the company

2006

Burberry celebrates 150th anniversary. Sponsors the "AngloMania" exhibition at The Metropolitan Museum of Art

Page 4: Burberry Competitive Review

Core Identity

Authentic British heritage

Unique democratic positioning within the luxury arena

Founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear

Globally recognized icon portfolio: the trench coat, trademark check and Prorsum horse logo

Brand a symbol of both luxury and durability

Check pattern of camel, black, red, and white plaid design – a registered trademark

Company image transformed from a tired outerwear manufacturer into a luxury lifestyle brand

Brand repositioned to a niche between cutting-edge fashion and classic fashion, excelling in clothing lines and accessories

Page 5: Burberry Competitive Review

Extended Identity

The visual image of Burberry are groups of middle aged men and women who love the elegant, yet modern spirit of Burberry London. It epitomizes the cosmopolitan London lifestyle with independence and relaxed confidence

The brand personality is modern edginess merged with classic British elitism

Multi-category competency: women's wear, men's wear, non-apparel and children's wear with innovative outerwear as the foundation

Channel expertise in retail (including e-commerce), wholesale and licensing

Global reach: operations in markets throughout the world, with a balance across major geographic regions

Page 6: Burberry Competitive Review

Value Proposition

Functional benefits include increasing the luxuriousness of your life at an affordable price

Emotional benefits include the ability to set you apart as an exclusive member of a club that few can get into

Self expression benefits include its ability to express your success, financial power and exclusivity

Page 7: Burberry Competitive Review

Time peaces

Eye Wear

Children’s Wear

Perfumes

Limited Distributio

n – Premium Pricing

Wider Distributio

n – Accessible

Pricing

Burberry Prorsum - Couture

Burberry London – Ready to Wear

Diffusion Ranges

Burberry Blue Label

Burberry Black LabelThomas Burberry

Brand Model

Page 8: Burberry Competitive Review

Brand Strategy Highlights

Leveraging the franchise through more coordinated use of brand assets and greater integration of its global organization

Maintaining brand momentum. Consistent projection of Burberry's distinctive luxury message across all mediums

Reinforcing outerwear heritage and leadership. As the brand's defining category, outerwear innovation remains the top product priority

Further reshaping the product pyramid. Continuing to create clear distinctions between its Prorsum (runway), London Collection (wear to work) and Lifestyle (wear at weekend) lines

Capitalizing on menswear opportunity. For most of its history, menswear dominated Burberry's sales. While women's wear took the lead during the brand's revitalization over the last decade, During 2008/09, menswear continued its transition from legacy product licenses, strengthened its tailoring offering and enhanced dedicated marketing initiatives

Page 9: Burberry Competitive Review

Brand Strategy Highlights

Building children's wear. Currently a small business for Burberry. Developing a global product assortment and building the required organization

Enhancing marketing. The continuous enhancement of marketing and PR functions is a key objective. Intensifying efforts in the rapidly evolving digital arena through a reallocation of media spend and added dedicated human resources.

Optimizing licensing. Leveraging its brand management, design and marketing expertise in categories requiring the specialized skills of partners

Intensifying non-apparel development Intensify, focus on and invest in under-penetrated non-apparel categories to further leverage Burberry's unique positioning, design and merchandising expertise and iconic branding through investment in product development, marketing and supply chain

Accelerating retail-led growth. Shifting company culture and processes from a static wholesale model to a dynamic retail model. Retail-led growth refers not only to the operation of Burberry's own stores, but also to a fundamental shift in the Group's operating culture.

Page 10: Burberry Competitive Review

Brand Strategy Highlights

Investing in under penetrated markets. Focusing on and invest ingin under-penetrated markets. These markets consist of both developed markets, like the United States, and emerging markets including China, India, the Middle East and Russia. All distribution channels (retail, wholesale and licensing) are used to optimize these opportunities

Pursuing operational excellence. To be recognized as much for operational expertise as for product and marketing excellence

Page 11: Burberry Competitive Review

Brand Revamping

The brand became associated with a wide range of demographics and became off target which resulted in dropping revenue and distanced consumers Burberry became associated with hooligan fans Burberry became associated with ultra rich celebrities only Burberry became associated with stuffy, old, arrogant Englishman Burberry became associated as a raincoat company only

New CEO recruited in 1990s and set about revamping the brand to include: Hiring new designers who took the signature plaid from raincoats to bikinis Modern Burberry is associated with a modern edginess merged with a classic

British elitism

Page 12: Burberry Competitive Review

Revenue By Product Category

Children; 4%

Women's Wear; 37%

Men's Wear; 26%

Non-Apparel; 33%

Page 13: Burberry Competitive Review

Revenue By Destination

Europe; 34%

Americas; 27%

Asia Pa-cific; 21%

Spain; 13%

Rest of the world; 5%

Page 14: Burberry Competitive Review

Revenue By Channel

Global; 3%

Retail; 52%

Wholesale; 41%

Japan; 4%

Page 15: Burberry Competitive Review

Ad Campaign Spring 2009

Burberry went with a sunny, bright greenhouse full of greenery and plants for the official Spring 2009 ads.

The campaign was shot by Mario Testino at Petersham Nurseries, a posh garden center outside London.

“I wanted the mood to be gentle, relaxed, romantic and about a quiet, beautiful sense of luxury,” explained Burberry creative director Christopher Bailey. “This campaign highlights the spirit of our wonderfully crumpled classics.”

Page 16: Burberry Competitive Review

Ad Campaign Spring Summer 2009

Page 17: Burberry Competitive Review

Ad Campaign Spring Summer 2009

Page 18: Burberry Competitive Review

Ad Campaign Fall Winter 2009

Emma Watson is the face of Burberry for the Fall Winter 2009 Campaign

Ad campaign was shot by Mario Testino near Burberry’s new headquarters in London.

The campaign broke in magazines in August

An interactive digital campaign directed by Bailey that includes podcasts and behind-the-scenes footage appeared on the website

I wanted the images to represent both the rich history and the modernity of the Burberry brand, while at the same time reflecting a quiet beauty, timelessness and strength that is particularly significant today,” said Burberry creative director Christopher Bailey

Page 19: Burberry Competitive Review

Ad Campaign Fall Winter 2009 – Emma Watson The New Face of Burberry

Emma Watson is the fall 2009 face of Burberry

Celebrity face represents a shift for the brand, who cast a plethora of models — Lily Donaldson, Eden Clark, Alexina Graham, and Richard Wyndham — for the spring 2009 campaign

For the fall campaign before that, the label cast model Rosie Huntington-Whiteley alongside actor Sam Riley, and Lily Donaldson starred in the spring campaign before that

This is Emma's first major campaign

Page 20: Burberry Competitive Review

Ad Campaign Fall Winter 2009

Page 21: Burberry Competitive Review

Ad Campaign Fall Winter 2009

Page 22: Burberry Competitive Review

Ad Campaign Fall Winter 2009

Page 23: Burberry Competitive Review

Ad Campaign Fall Winter 2009

Page 24: Burberry Competitive Review

Ad Campaign Fall Winter 2009

Page 25: Burberry Competitive Review

PR-Press Coverage

Page 26: Burberry Competitive Review

PR-Press Coverage

Page 27: Burberry Competitive Review

PR-Press Coverage

Page 28: Burberry Competitive Review

PR-Corporate Social Responsibility

The mission of the Burberry Foundation is to help young people realise their dreams and potential through the power of their creativity.

The Burberry Foundation is committed to dedicating its global resources to help young people build confidence, make connections in their communities, and grasp opportunities to succeed.

The aim of the Foundation is to empower young people to use their intellectual creativity — that which will help them to imagine and achieve their life goals

The Burberry Foundation serves young people by helping them to: gain confidence in their daily lives and develop self-esteem; build connections to their families, friends, partners, and society at large; and develop the ability to reach for opportunities in school, work, and life

Elements of the Burberry Foundation Grantmaking in key cities and globally Encourage Burberry employee involvement with designated charities Merchandise and other in-kind donations to designated charities to support

programmatic, development and administrative functions.

Page 29: Burberry Competitive Review

MENA Presence - Boutiques Bahrain

Manama▪ City Centre Mall

Kuwait Kuwait City

▪ Arraya Centre Qatar

Doha▪ Villagio Mall

Saudi Arabia Khobar

▪ Al Rashid Mall Jeddah

▪ Khayyat Mall Riyadh

▪ Kingdom Centre UAE

Abu Dhabi▪ Abu Dhabi Duty Free & Inflight Catering Bldg.

Dubai▪ Burjuman Centre

Page 30: Burberry Competitive Review

Outlets

Asia China Hong Kong Korea

North America USA

Page 31: Burberry Competitive Review

THANK YOU