...FASHION MARKETING - BURBERRY 1- Overall Context The year 2014 has been a huge turning point for Burberry with Angela Ahrendts leaving the company and with Christopher Bailey taking over major roles as the Chief Creative and at the same time the new CEO of the company. As the annual revenue grows more as a result of a stronger Burberry under the undeniable leadership of past and current CEO’s Rose Marie Bravo, Angela Ahrendts and Christopher Bailey, the company is moving upward as it embraces the innovations and new challenges of the current times. Burberry still revolves around its values and identity of keeping the brand unified, strengthening its origin and history, emphasizing on its british legacy by creating a strong focus on its core product which is the trench coat in which Burberry is famous for, building a stable structure amongst its internals and employees which provided a venue for employees both recent and veteran to grow and maximize their potentials and capabilities, and to become a forward thinking brand by adapting and even innovating to the growing changes of modernity and digital technology. As Burberry now grows with operation for more than 200 stores, hitting its revenue more than double from 2006 and obtaining a growing number of more than 11,000 employees, through its new leadership under Bailey, Burberry is not pacing down as the brand strengthens its core to provide a complete customer experience. Burberry’s products are divided into Accessories...
Words: 2575 - Pages: 11
...BU5003 International Business operation Tutor Dr Neil Moore Assessment number G35691 Number of words 2015 Date 14/11/2012 Essay topic: “The decision to develop and grow business operations can be a daunting prospect for any galvanization. In particular, the decision to expand into overseas markets generates a broad range of challenges and issues. Using contemporary examples and concepts considered in this module discuss the challenges and issues faced by business organizations as they decide whether or not to internationalize their operations.” As a company expands, it begins to get itself involved in marketing programs that may not have been part of the original business plan. Businesses evolve, and plan change and a company may begin to realize that it needs to get involved in international markets. Obviously, it has a lot of benefits when a company enters into a foreign market. Expanding sales, acquiring resources and minimizing risk are the three principal operating objectives that why companies engage in international business. Normally, these three objectives guide all decisions about whether, where and how to engage to be international business. So in order to seek high sales and profits, gain global market share and reduce dependence on existing markets, it is inevitable for any companies to go abroad. However, it also generates enormous number of challenges and issues...
Words: 2188 - Pages: 9
...There was simply no way to predict how Apple would do without Steve Jobs. But that didn’t stop anyone from speculating. Tech pundit John Dvorak said, “At some point, Apple becomes like a John Wayne movie with no John Wayne. You begin to notice something is missing. Apple without Steve Jobs is Sony.” When Tim Cook took over as Apple CEO, I had a decidedly different take: “Apple has a solid foundation as the most powerful and influential technology company on the planet. It has a unique culture, but one that Steve Jobs built to last, as he knew this day would surely come for some time now.” I went on to say that Apple’s iconic co-founder “infused a new way of thinking” that is “baked into” Apple’s culture “in a way that can live on without Jobs.” In an internal email, Cook vowed to stay true to that culture. “I want you to be confident that Apple is not going to change," he wrote. "I cherish and celebrate Apple's unique principles and values. Steve built a company and culture that is unlike any other in the world and we are going to stay true to that-it is in our DNA.” But I also knew that much of the company’s success going forward would “depend on new chief Tim Cook and rest of Apple’s management team,” and that “despite Cook’s promise, things are going to change. They have to change.” Related: The 9 Best Real-World Strategies Every Entrepreneur Should Know Indeed things have changed. But Cook has managed to walk that fine line between staying true to what’s...
Words: 833 - Pages: 4
...Introduction The Burberry business model: creating an international luxury fashion brand Christopher M. Moore and Grete Birtwistle The authors Christopher M. Moore is the Director for the Glasgow Centre for Retailing and Grete Birtwistle is Head of the Division of Marketing, Glasgow Caledonian University, Glasgow, UK. Keywords Premier brands, Brand management, Fashion Abstract The performance of the British fashion brand Burberry has been determined largely by the adoption of business models which, on occasion, have been detrimental to the company’s performance. For the financial year ending 31 March 1998, Burberry saw its annual profits drop from £62m to £25m, leading financial analysts to describe it as “an outdated business with a fashion cachet of almost zero”. However, from 1997, at the instigation of a newly appointed chief executive, Rose Marie Bravo, Burberry has radically re-aligned its business model and has enjoyed, as a result, significant improvements in its business performance. Drawing from extensive documentation that was published by Burberry in support of their initial public offering (IPO), this paper will provide a review of the history of Burberry; evaluate Burberry’s re-positioning strategy as defined by the firm in their IPO prospectus; and critically delineate Burberry’s current business model. Electronic access The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The...
Words: 6710 - Pages: 27
...The domain name info is a generic top-level domain (gTLD) in the Domain Name System (DNS) of the Internet. The name is derived from information indicating that the domain is intended for informative Internet resources, although registration requirements do not prescribe any theme orientation. The info TLD was a response to ICANN's highly publicized announcement[citation needed], in late 2000, of a phased release of seven new generic top-level domains. The event was the first addition of major gTLDs since the Domain Name System was developed in the 1980s. The seven new gTLDs, selected from over 180 proposals, were meant in part to take the pressure off the com domain.[1] The info domain has been the most successful of the seven new domain names, with over 5.2 million domain names in the registry as of April 2008. After the September 11, 2001 attacks in the United States, the Metropolitan Transportation Authority of New York switched to the easier to remember mta.info website to lead users to latest information on schedules and route changes on the area's transportation services. Even in 2013, a website, Current Score info, was formed to provide current score of Football and Cricket across India. ICANN and Afilias have also sealed an agreement for country names to be reserved by ICANN under resolution 01.92.[2] info is an unrestricted domain, meaning that anyone can obtain a second-level domain under info for any purpose, similar to the com, net or org domains. This is in contrast...
Words: 333 - Pages: 2
...STRATEGY Brand and Business From its founding in 1856 when Thomas Burberry constructed his first outerwear garments for the sportsmen of Basingstoke, England, Burberry has become a leading luxury brand with a global business. The Burberry brand is defined by its: • • • • 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 recognised icon portfolio: the trench coat, trademark check and Prorsum horse logo The Group management and their teams are challenged with the responsibility of maintaining the integrity and vitality of this extraordinary brand while continuing to develop a business which remains relevant to ever-evolving markets and consumer tastes. The following pages outline Burberry’s strategy under each of its five key strategic themes. Our strategic themes Leveraging the franchise Intensifying non-apparel development Accelerating retail-led growth Investing in under-penetrated markets Pursuing operational excellence Today, the business built upon this brand is distinguished by: • Multi-category competency: womenswear, menswear, non-apparel and childrenswear – 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 A unified, passionate and seasoned...
Words: 2745 - Pages: 11
...Macarena Araya MBA 240 Individual Case Study: Burberry I. Statement and Causes of the Problem Burberry is a brand that has been around for over 150 and years, and much of its popularity has been a result of its legendary check pattern, which can be found in a plethora of its products. When individuals think of the brand there are always two words to describe it, luxury and durability. However, the success of Burberry was not always constant. By the mid 1990s, the company was facing multiple issues due to several reasons, such as a narrow base of core products, an older customer base, inconsistent retail environments around the world, and a limited control over Burberry’s licensees. As a result, in 1997 the company brought Rose Marie Bravo to reinvent Burberry, she had all the necessary skills to change Burberry from being a tired outerwear company into “a luxury lifestyle brand that was inspirational, stylish, and innovative” (Moon, 2). By 2003 and after many changes done by Bravo, Burberry was considered to be a hip brand and was now popular among a much younger generation; therefore, it was obvious that Rose Marie Bravo and her team did nothing but an exceptional job by reinventing the luxury brand. Although Burberry has continued to be categorized as a well-known respectable luxury brand for many years after its reinvention, Bravo believes that the following years are critical for the future of the company since she believes it has not yet reached its full potential...
Words: 1851 - Pages: 8
...The Burberry business model: creating an international luxury fashion brand Christopher M. Moore and Grete Birtwistle Introduction The viability, or otherwise, of a fashion brand is dependent upon the efficacy and appropriateness of the decisions of those responsible for its management. There are numerous examples of brands that have prospered and/or withered as a result of the business models that management have deployed in order to achieve their strategic (or not so strategic) objectives. Gucci, the Italian luxury brand is a case in point. In the 1950s the brand enjoyed significant success. It was the status brand of choice for Hollywood film stars and European royalty. However, just over a generation later, the brand suffered a loss of cachet and the once profitable business made significant losses. The adoption of a business strategy (which sacrificed management control over product development and distribution in favour of seemingly indiscriminate licensing agreements), undermined the credibility of Gucci as an exclusive and aspirational fashion brand (Jackson and Haird, 2003). Tom Ford’s arrest of Gucci’s decline in the 1990s has been well documented (Moore and Fernie, 2004), and has been attributed to his adoption of a business model that maximised internal controls with respect to product sourcing, brand communications and distribution. Ford’s legacy has been the implementation of an integrative business model which maximised “back-end synergies” in relation to logistics...
Words: 6710 - Pages: 27
...Burberry In Beirut Souks “One Brand, One Company” “The brand is not this kind of cold, static name outside a shop or outside a building or on a piece of clothing. There are values and a culture behind it." Brand equity is a very valuable term to the British luxury brand Burberry: it lies in the famous checker pattern which is now Burberry’s trademark. Christopher Bailey’s wise words reflect the enterprise’s global strategy. But what did Burberry do to double its net income in just five years? Well, the secret is Britain’s most paid CEO, Angela Ahrendts. The hire of Angela in 2006 turned things around dramatically at Burberry’s headquarters: she understood Burberry’s core competences and its history; she understood the brand and the recent trends in the luxury sector. About Burberry Mission: To maintain the integrity and vitality of Burberry, while continuing to remain relevant to ever-changing markets and consumer tastes. (World Press, 2012) Vision: To be the first digital end to end company. "Our vision is that a customer has total access to Burberry, across any device, anywhere," says Angela Ahrendts. "They get exactly the same feeling of the brand and a feeling of the culture. Everyone can come to Burberry World and understand the journey that Burberry is on.” [ (SalesForce) ] Core Values: Protect, Explore and Inspire. The Business Strategy: It consists of the following steps; starting with “Leveraging the franchise”: market innovation and product excellence;...
Words: 2053 - Pages: 9
... WORD COUNT: 2,498 SUBMITTED: 12th May 2011 EXECUTIVE SUMMARY In this report, focus on the issues facing Burberry movement to china will be discussed. Burberry is a luxurious British brand trying to move from Wales in Britain to China in order to reduce cost of production of their product. This report was done in stages, the first a PESTLE analysis was conducted on China. The analysis consisted of the political environment of china; the economic condition of china was also reviewed, technological development, social values, legal and ecological factors that might affect the Chinese market were also discussed. Secondly, SWOT analysis of the Chinese market was conducted, while the advantages and disadvantages of moving to china were given. However, in the conclusion given, Burberry was advised to move to china because it will definitely reduce cost of production and it will give them opportunity to gain from china’s big market size. Thirdly, this report discussed the best HR policies that the company can used to meet the demand of their new customers. Furthermore it was advised that standardization and adaptation will be a good policy for the HR to use to sustain its position. Finally, recommendation and an action plan were drawn for Burberry to perform better and to reduce the cost of their products in order to be relevant in china’s competitive market. CONTENT 1. Executive...
Words: 3030 - Pages: 13
...Annual report 2010/11 burberry An iconic british luxury brand established in 1856 leverages its rich heritage, proven strategies and talented team to assure sustainable, profitable growth on a global scale Contents 4 8 12 18 22 28 44 54 58 66 68 71 76 86 87 88 89 90 91 92 93 Financial highlights Chairman’s letter Chief Executive Officer’s letter Executive team Burberry Group overview Strategy Business and financial review Risk Corporate responsibility Board of Directors Directors’ Report Corporate governance Directors’ Remuneration Report Statement of directors’ responsibilities Independent auditors’ report to the members of Burberry Group plc Group income statement Group statement of comprehensive income Group balance sheet Group statement of changes in equity Group statement of cash flows Notes to the financial statements 133 Five year summary 135 Independent auditors’ report to the members of Burberry Group plc 136 Company balance sheet 137 Notes to the Company financial statements 141 Shareholder information 143 Executive team 1 FINANCIAL HIGHLIGHTS DELIVERING RECORD PROFITS Total revenue (Year to March) £1,501m 11 10 10* 09 08 07 0 1501 1,501 1,185 1,280 1,202 995 850 Retail revenue (Year to March) £962m 11 10 10* 09 08 07 0 962 962 710 749 630 484 410 Wholesale revenue (Year to March) £441m 11 10 10* 09 08 07 0 489 441 377 434 489 426 354 Revenue by channel in 2010/11 Retail 64% Wholesale 29% Licensing 7% ...
Words: 56964 - Pages: 228
...Personal Essay: Burberry Mingda Dong (Mario) Angela Ahrendts needed to turn the Burberry Brand around. Because in 2006, luxury was one of the fastest-growing sectors in the world, but at that time, Burberry was becoming ubiquitous and ubiquity means you are not luxury anymore. When Angela Ahrendts became the CEO of Burberry, she was facing problems including but not limited to the following: 1. No consistency including the design and price. 23 licensees around the world, each doing something different. Nothing wrong with any of those products individually, but together they added up to just a lot of stuff, something for everybody. It was being ubiquity. For example, in Hong Kong, the design team was producing polo shirts and two women shirts with famous Burberry check but not a single coat. In America, the design team was making outerwear but the price was half in UK. In addition, as a British brand, the classic raincoats was made in USA. 2. Missing the historical core. Burberry began with its coats but in 2006, outerwear only represented 20% of global brand business. Instead of the coats, polo shirts and other stuff represented a lot. 3. Retail operation is not good. Burberry is a luxury brand so the target audience should be elite buyers. Burberry should find the right place to reach the right consumers to support luxury brand. But when the markets was identified, there was no stores in the market where the tow of the competitors had ones. 4. Salespeople...
Words: 929 - Pages: 4
...Case Study: Burberry Eunice Hurh University of North Texas Case Study: Burberry 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 long term? Why or why not? a. When repositioning the brand, Bravo and her team noticed available niches between Polo Ralph Lauren/Giorgio Armani in apparel and Coach/Gucci in accessories (Moon, 2004). Relative to its competitors, Burberry is presented as ‘accessible luxury’ (Moon, 2004). Burberry’s new competitive positioning is seen as sustainable over long term. What separates Burberry from other luxury brands is the functional aspect—a trench coat that has a purpose (Moon, 2004). Burberry’s point of difference was to be aspirational, but also functional (Moon, 2004). Bravo described the brand’s current position as wedged between Ralph Lauren’s lifestyle and Gucci’s fashion (Moon, 2004). Not only are lifestyle and fashion brands competitors of Burberry, but companies like Target are competitors as well (Moon, 2004). This is due to people shopping everywhere; high-income people shopping at discount warehouses and middle-income people shopping at luxury retailers (Moon, 2004). Since Burberry is continuing to bring out innovative designs and products partnered with proper advertisements, its competitive positioning is sustainable over the long term. 2. The case notes that Bravo’s team has managed to elevate the overall...
Words: 1371 - Pages: 6
...evaluated through PEST analysis. PEST analysis of Burberry to evaluate strategic capabilities: The PEST analysis looks into the Burberry’s exposure to Political, Economical, Social and Technological factors, which may affect its strategy formulation capabilities. The following factors may be considered in this regard (Wetfeet, 2008): Political: (Kluyver, 2010) The Group operates in many countries including the emerging markets. These countries subject to changes in laws and regulations, including accounting standards, taxation, (tax rates, new and tax laws) and environmental laws in domestic or foreign jurisdictions particularly in times when public sector debt is high and tax revenues are falling. Burberry faces intense competition from developing countries due to cheap copies of his brand where no copyright law exist. Political conditions like civil unrest, unstable governments historically and have been subject to political instability and restrictions on the ability to transfer capital across borders.Ability to penetrate developing and emerging countries, which also depends on economic and political conditions, and how well they are able to acquire or form strategic business alliances with local fashion trends and make necessary changes which also affects the luxury brand of Burberry The Burberry has strong luxury brand, which is only feasible in some geographic environments and demographics. Economical: (Griffin, 2006) The global economic downturn affected the...
Words: 3037 - Pages: 13
...Overview Burberry is a fashion and luxury company which creation remounts to 1856, when Thomas Burberry opened a draper’s shop in Basingstoke, England. Burberry-lined trench coats, worn by British soldiers in WWI, became a company icon. This brand was highly dependent on licensing and distribution arrangements and had a narrow set of products. Around 1980s the company started making losses because of its old-fashioned products, so in 1997 Rose Marie Bravo assumed the leadership of the company. Bravo and her team had a main objective that was to revitalize the brand, updating the product line, expanding the brand portfolio and creating new advertisement campaigns. Question 1 - Marketing Situation Company: Burberry is a company that nowadays sells a wide range of luxury products; they sell from apparel to accessories as handbags, shoes, hats, ties, and so on, and to licensed products as fragrances or eyewear. The brand is known for its heritage, history and functionality. Burberry wanted to create the image of an accessible luxury. In the 1920s Burberry was introduced as a registered trademark, and was seen as a symbol of luxury and durability, after that by the 1990s Burberry was sold to a British company, Great Universal Stores Plc. (GUS) and by the 1970s GUS management agreed to license the brand in Japan. The product started to grow worldwide, but due to the fact that a wide range of product categories become licensed the products began to vary across markets (price, design...
Words: 1738 - Pages: 7
