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 status of Burberry’s brand. How has it managed to accomplish this? b. First and foremost, Bravo and her team knew that the next five years were going to be crucial (Moon, 2004). Bravo’s team set the goal to maintain Burberry’s currency and cachet of the brand across its customer base, whilst entering new product categories and expanding distribution (Moon, 2004). These goals were met with vigor as the team tried to turn the brand around. Bravo brought in a top management team made up of A-list industry talent—people who knew what customers wanted, what price points people wanted, and where the gaps were (Moon, 2004). Also, some cosmetic changes were made such as changing the name from Burberry’s to Burberry (Moon, 2004). Additionally, Bravo and her team began attracting a younger customer base with updated product lines and new price points (Moon, 2004). Adding Burberry Prorsum (a high-profile, high-end brand done in a first-class way), allowed Burberry to showcase its new image to the top industry journalists and get editorial press for its collections (Moon, 2004). Hiring Stella Tenant and Kate Moss as faces of Burberry also communicated its more modern and fashion-oriented side (Moon, 2004). Bravo’s team also reined in many of the older licensing agreements to curb inconsistencies in price, design, and quality across markets (Moon, 2004). This meant tighter control over distribution (Moon, 2004). Many decisions have attributed to Burberry’s (and Bravo’s teams’) successful status success within the fashion industry and hopefully this will not be the end to its surmount. 3. Should Burberry be aggressively transitioning to a more restrained use of a check? What effect will this decision have on the long-term sustainability of the brand? c. Yes and no. If Burberry becomes lax with its use of check, then more counterfeit goods will be produced, thus resulting in a cheapening of the brand. Bravo felt it was important that the company transition to a more restrained use of the check (Moon, 2004). After those five years of re-branding by Bravo, the company continued with it’s “check under cover philosophy and discipline (Moon, 2004). On the subject of long-term sustainability, Burberry must think of its consumers. Since many become invigorated when purchasing a Burberry scarf with the infamous check pattern, certain merchandise must continue to print the check pattern. There are some customers who buy Burberry specifically for the check (Moon, 2004). As mentioned earlier, all classes of people are shopping everywhere (Moon, 2004). Therefore, Burberry must not rein in too much of its control over the check or else its customers may not be pleased with the lack of the visual fulfillment. Realistically, check management is a daily discipline (Moon, 2004), so Burberry must decide which merchandise need the check and which do not. 4. Describe Burberry’s customer base? d. Burberry hit a low point when it became overly reliant on a narrow base of core products and its customer base became heavily concentrated among older males and Asian tourists (Moon, 2004). Much exclusivity was lost and the Far East accounted for a disproportionate 75% of sales (Moon, 2004). 5. Who is Burberry’s target customer? e. In repositioning the brand, Bravo and her team decided to reach out to a new target market while keeping its core customer base. Upon surveying the market, Bravo’s team decided to target a younger customer through the use of younger models, trendy clothing lines (Burberry Prorsum), and updated product lines (Moon, 2004). 6. How could Burberry’s popularity among non-target customers affect the brand? How should Burberry respond to this popularity? f. Burberry’s popularity among non-target customers affect the brand in that legitimate and counterfeit items became increasingly popular among urban youth and hip-hop musicians (Moon, 2004). The younger generations avidly purchased these garments, resulting in what should be a positive sign regarding brand affiliation (Moon, 2004). However, therein lies the concern that this affiliation could eventually alienate Burberry’s core customer (Moon, 2004). In response to this rise in popularity, Burberry should remain undercover. The more reaction the public receives from a company, is exciting, especially if the reaction is negative or unwarranted. Slowly, the younger consumers that are undesired will move onto the next big designer, and Burberry will find itself safe again. 7. Should Burberry be launching Brit, the new perfume line? g. Yes. Since this case study was written in 2004 and it is now 2012, there is evidence that Burberry’s perfume Brit was successful. As Burberry has expanded into many other perfume lines for men and women, Burberry Brit show great success in the industry. In relation to the point in time the perfume was released, it couldn’t have been a better moment for the company. The iconic check design and musky scent gave its older customers yet another reason to stay with the brand. Personally, I have used this perfume and love it. I received many compliments when I wore it and found that many of my peers also used the same perfume. This only attributes to Burberry Brit’s success among its younger consumers. 8. What other product categories should Burberry be entering? h. There are three categories into which Burberry should consider offering or expanding. Alcohol, home goods, and bride couture: i. Partnering with a scotch whiskey brand like the Double Black limited edition label by Johnny Walker will give its party customers another option while out drinking. Since Johnny Walker is an already established alcohol brand with loyal customers, Burberry could take advantage and open licensing to this product category. Another possible alcoholic product category would be investing in a vineyard and pushing Burberry wine, only for the elite. Sponsoring charity events with these alcoholic beverages would be a success for the brand’s image and return on investment. ii. In order to appeal to the homier side of Burberry, it could expand its product category of home goods into more than just cushions, photo frames, and blankets. Imagine, a house decorated with all Burberry, but because the check is not obvious, the house refrains from being tasteless. Curtains with the check pattern on the paneling and sheer material for the remaining fabric, plates with Burberry stamped on the bottom, flatware with the check etched into the prongs. These are just a few ideas for home goods expansion for Burberry. iii. Bride couture is a huge product category, with proper social media attention, could amount to enormous achievement. Currently, luxury brands like Christian Dior, Vera Wang, Oscar de la Renta, dominate the bridal market. If Burberry were to create a bride couture line all the way from the dress down to the tiniest details like napkin rings, a lifestyle brand would be the final result.

References
Moon, Y. (2004). Burberry. Harvard Business School. Retrieved from https://learn.unt.edu/bbcswebdav/pid-338329-dt-content-rid-1517325_1/courses/MDSE_4660_001_11235W2/Burberry.pdf r