...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...
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...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31 March 1998, Burberry saw its annual profits drop from £62m to £25m, leading financial analysts to describe it as “an outdated business with a fashion cachet of almost zero”.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...
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...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...
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...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...
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...Company Overview Burberry is a distinctive luxury brand with international recognition and broad appeal. They design, source, manufacture and distribute high-quality apparel and accessories. Among their innovations was the invention of gabardine, the world's first weatherproof and breathable fabric, and the footballer's pattern of choice - the Burberry check. Sales are strong in Europe, North America, Asia and the Middle East through 151 retail locations. Wholesale customers include leading and prestige department stores, specialty retailers and franchise partners. In 2003/04, the total retail value of products sold globally under the Burberry brand was approximately £2.5 billion. Company Strategy The Burberry strategy: nurture and evolve the Burberry brand; continue to develop and expand the product portfolio; expand the directly operated store network; selectively build wholesale distribution; support growth in Japan; and enhance operational capabilities. With this, the Group achieved record financial results in 2011/12. Total revenue grew 24% to £1,857m. Operating profit increased 25% to £377m. After-tax return on capital remained strong at 37%. All of these figures are on an adjusted basis. The Group ended the year with a £338m net cash balance. The board has recommended a 25% increase in the full year dividend to 25p. Looking ahead, 2012/13 may present continued challenge. Although the global macroeconomic picture has generally improved with distance from the financial...
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...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;...
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...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...
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... 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...
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...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% ...
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...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 unique about the company while adding value in ways that only he could – ways that even Steve Jobs could not have done. And the way he runs Apple offers powerful lessons for every current and aspiring executive and business leader. Don’t fix what isn’t broken. If there was ever an organization that had every arrow pointed in the right direction, it was Apple when Cook took over. Iconic...
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...Design 1 Assignment 2 The history and promotional strategy recommendations for Burberry | Name: Shih Fen Tsao Student ID: 26317419 Module Title: Design 1 Module Code: ARTD 6075 Introduction Currently, promotion became a significant part of marketing as a result of its raising the consumer awareness of a brand and products, creating brand royalty and increasing sales. In this paper the author will focus on the case of Burberry. Burberry is one of the most important British luxury fashion brands. In the past few decades, the image of Burberry was from luxury brand to “Chav” and reborn in the early 21th. Burberry selected several marketing strategies to re-position it as a distinctive and unique luxury brand. The author will base on these promotional strategies and go further to give in depth recommendations. The aim of this paper is going to demonstrate the promotional strategy recommendations for Burberry. The structure of this essay is as follows. Next part will introduce the brief history and marketing strategy of Burberry. The subsequent parts will discuss and present the recommendations on promotional strategies then conclude with the concise conclusion. A brief chronology of Burberry Burberry was established by Thomas Burberry in 1856 when he started running a small shop selling men’s outerwear in Basingstoke, Hampshire, England. In 1880, a new fabric called “gabardine” was introduced by Burberry and soon enhanced the reputation of brand. “Gabardine” is...
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...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...
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...1.0 Introduction Burberry was founded in 1856 by Thomas Burberry，which is England's luxury brand. Burberry’s classic plaid (Figure 1) and the prorsum knight icon (Figure 2) are Burberry’s symbol. Burberry’s continuity product - trench coat (Figure 3) has a long Product Life Cycle and seasonal products are mainly reflecting the season's popular style trends (Moore & Birtwistle, 2004). Burberry products are divided into three categories, which are Burberry Prorsum, Burberry London, Thomas Burberry and Burberry blue and black label (Figure 4). Burberry gained customer loyalty and target profits through the use of different price range to meet its consumers’ needs. 2.0 Success of Burberry Burberry can be said to be successful by their outstanding financial performance. Burberry’s annual review 2012-2013 (2013) states that Burberry has opened 25 new stores from 2012 to 2013, 19 stores out of 25 were in emerging markets such as Hong Kong. The revenue has decreased by 15%. However, the retail and wholesale gross profit margin and net profit margin has increased to 70.6% and 17.8% respectively, which shows persistent improvements over the past 5 years (Figure 5). 3.0 Marketing Strategy Phan et al (2011) showed that Digital Marketing is Burberry’s core marketing strategy, which involves the interactive publicity, digital interactive fashion shows. Burberry used 60% of its marketing budgets on digital technology and started digital marketing since 2009. The photo-sharing site...
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...luxury brand Burberry, like its competitors, was still unsure of how to build a valuable presence in social media. This case study looks at how it eventually capitalised on the new medium - without eroding the exclusive, aspirational qualities that are core to the world of luxury. In 2009, fashion house Burberry was feeling the pressure of the economic downturn, even though its financials had been strong over the past decade. Revenue growth dropped from 18 and 15 per cent in the previous two years to seven per cent that year, excluding the impact of foreign exchange rates, while operating profit margin shrank from about 15 per cent to 9.8 per cent. In this harsh retail environment, Burberry recognised the potential value of the digital media. In March 2009, with 175 million users on Facebook and 600,000 more joining it each day, Burberry began allocating marketing and public relations spend and dedicated personnel to pursue tech-age marketing. Building a social media presence seemed critical, but the question was, "how"? Burberry was founded in 1856 when 21-year-old Thomas Burberry, a former draper's apprentice, opened his own outdoor apparel store in Basingstoke, Hampshire, England. Soon after, the company introduced the gabardine, a water-resistant but breathable fabric, and started producing the trench coats that would become famous in England and around the world. By the end of the 20th century the brand was going through difficult times, as the company's strategy had not...
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...ARTICLE 1 Airport Retail Flying High By Robin Mellery-Pratt 5 September, 2013 Once a profitable but rarely discussed sideline business, airside retail is now a highly lucrative, core component of a successful luxury strategy and airport operators are innovating to take sales even higher. BoF investigates. Dior concession at London Heathrow Airport | Source: Heathrow Airport LONDON, United Kingdom — Christian Dior’s dove grey carpets and boudoir mirrors vie for the eyes of customers with Prada’s harlequin tiles. The polished hardware of Dolce and Gabbana handbags glint, not far from lustrous exotic-skinned accessories by Gucci. No, this is not the Avenue des Champs-Élysées or Bond Street, but the departure lounge of Heathrow Airport’s Terminal 5, where passengers buy over $450 million per year of perfumes, clothing, scarves, sunglasses, jewellery, watches, bags and small leather goods from brands including Alexander McQueen, Burberry and Chanel, the airport’s top performer. A similar scene plays out each day at a plethora of major international airports across the world, from Singapore’s Changhi and South Korea’s Incheon to Dubai International and Charles de Gaulle in Paris. But this wasn’t always the case. Indeed, in the last 20 years, airside retail has undergone a radical transformation. From Sideline to Strategic Priority “What you used to have at Heathrow and Gatwick, for example, was big old airport terminals, with a WH Smith and maybe a Knickerbox and...
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