...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...
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...BURBERRY 1. Bravo’s team has managed to elevate the overall status of the Burberry brand. How has it managed to accomplish this? Bravo’s goal was to transform Burberry from a tired outerwear into a luxury lifestyle brand that was aspirational, stylish and innovative. And she began by recruiting a top management team, who could succeed in a retail environment and also understand customers, price points and gaps. Together, they changed the brand’s name from Burberry’s to Burberry and introduced a contemporary logo and packaging. By repositioning the brand into “accessible luxury”, they could attract younger customers and, at the same time, retain its core base. The next step was to update the product line by slashing the number of SKUs and hiring a new design team, which was in charge of only three primary collections: womenswear, menswear and accessories. Bravo’s team also decided to raise prices and expand the brand portfolio with the label Prorsum, which was the best way to reinforce Burberry’s new positioning in the luxury market. To promote the new image, they hired Mario Testino, Fabien Baron and David Lipman, who were able to associate the brand with a more trend-conscious, modern look and also with its heritage. 2. Decisions include managing different brands, different collections, channels and licenses: what is the role of these different elements in the overall business model? The role of each decision was to have a consistent brand image: a perfect mix...
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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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...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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...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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...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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...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 known for the...
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...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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...In 1997, Rose Marie Bravo set out on an impossible journey to reinvent the Burberry brand by transforming Burberry from “a tired outerwear manufacturer into a luxury lifestyle brand that was aspirational, stylish, and innovative.” Firstly, she was very effective in identifying the most important factor that would ensure the success of the brand. She initiated her call to action by forming the very best management team possible. She looked for efficient industry professionals whom were experts that understood the basic business model and environment of a retail business. “I needed people who knew what it took to succeed in a retail environment, people who knew what customers wanted, what price points people wanted, where the gaps were.” Rose Marie was influential in her management style by leading her team with a sense of precedence of what was most imperative that needed to achieve. Thus, she started with an instantaneous and preemptive decision of repositioning the brand. She changed the company’s name from Burberry’s to Burberry along with updating and modernizing its logo and packaging to reflect its new aura. Next, her primary objective was to appeal and acquire a younger clientele whilst maintaining the brands primary consumer and staying true to their core brand believes. Rose Marie and her team choose to do so by capitalizing on their points of difference that is the desire of being an ‘accessible luxury’ brand that focused on aspiration and functionality. Than, she...
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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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...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...
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...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...
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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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...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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