BURBERRY Module: Luxury Brand Management Module Code: MGT6B2 - - PowerPoint PPT Presentation

BURBERRY

Module: Luxury Brand Management Module Code: MGT6B2

Burberry Brand History

• 1856

– Brand established by Thomas Burberry

• 1880

– Developed a waterproof material called Gabardine

• 1901

– Introduced the Equestrian Knight trademark

• 1924

– Check print made public The red, white, beige and black check pattern symbolises the brand The print was used as lining for the trench coat By 1967 the brand expanded their check print to other merchandise The brand became saturated with counterfeit items, the print started to look “cheap” The new CEO made the brand to a produce more quality pieces and less merchandise with the print.

Burberry Brand Id Identity

Kapferer’s (2004) luxury brand identity model

Physique

• High-end quality
• Users acquire a look of casual

sophistication

• Recognisable by distinctive Equestrian

Knight logo and endorsement by celebrities

Personality

• Classic
• Sophisticated
• Check pattern

Culture

• British sensibility
• Strong international recognition

Relationship

• Connectivity through extensive use of

social networking platforms

• Focus on relationship building
• Flagship stores with high quality service

Reflection

• Wealthy and accomplished
• Fashion conscious

Self image

• Affluent
• Elegant and stylish
• Globalised

Constructed source Constructed receiver Externalisation Internalisation

Burberry Brand Personality

Karl Heine’s (2009) luxury brand personality model

5 10 15 20 25 30 Modernity Eccentricity Opulence Elitism Strength Brand personality

Modernity:

Timeless, everlasting, peaceful, balanced, charismatic

Eccentricity:

• Respected. Down-to-earth, solid, decent

Opulence:

Prestigious, wealthy, glamorous, prominent

Elitism:

Cool, elegant, accomplished, flawless

Strength:

Resolute, direct, ambitious, successful, purposeful

Burberry Brand Positioning

1 2 3 4 5 6 7 8 9 10 Accessories (perfumes, timepieces, eyewear) Thomas Burberry Blue Label Black Label Burberry London Prorsum

Ease of Access

Ease of Access

Luxury- limited distribution Premium- wider distribution

Sporty Casual Fashionable Classic Couture Price/accessibility

• Burberry
• Gucci
• Giorgio

Armani

• Polo

Ralph Lauren

• D&G
• Channel
• Hugo Boss
• Miu miu
• Just Cavalli

SWOT

Strengths:

• Wide international network of retail, wholesale and licensing channels
• Granted royal warrants by Prince of Wales and Queen Elizabeth II
• One of the largest luxury fashion brand in the UK
• Strong advertising and brand presence in UK and Europe
• International celebrities as brand ambassadors
• Inaccessible to working class, exclusive

Weaknesses:

• History of negative association with ‘chavs’ and football hooliganism
• Weak cost structure
• Lack presence in particular areas of the world

Opportunities:

• Expansion and growth into emerging markets
• Increasing use of e-commerce
• Increase accessibility of diffusion products such as accessories
• Hosting more fashion shows
• Increasing celebrity endorsements
• Increasing sponsorship for events
• Increase innovation for new products/services

Threats:

• Intense competition, high bargaining power and low switching costs for

customers

• Substitute products
• Pricing pressure
• Threat of negative associations
• Insufficient stores (brand presence) in smaller cities

Recommended Growth Strategy

Current Products New Products New Markets Current markets Market Development

• More flagship stores and regional offices in

emerging markets such as Middle East, India, China, Sao Paulo, Armenia, Mongolia, Egypt, Israel

• Vertical integration-acquire textile industries

which supply Burberry with raw materials

• Acquire close rival companies such as D&G,

Hugo Boss

Product Development

• Intensify non-apparel development
• Appoint new, young designers
• Increase endorsements by famous

celebrities, especially those representing emerging market cultures

• Licensing of new accessories

Market penetration

• Intensify online social media events to

increase consumer participation and e- commerce activities

• 3D screening of fashion shows in emerging

markets which have less opportunities for such shows to be run in their countries

• Increase the efficiency of supply chain

processes

• Increase retail stores in small cities

Diversification

• Horizontal integration- form joint

ventures or contractual relationships with other luxury industries such as high end sports cars to produce their merchandises

References

Ansoff, I. (1957), Strategies for Diversification, Harvard Business Review, 35(5), pp. 113-124. Heine, K. (2009), Using personal and online repertory grid methods for the development of a luxury brand personality, The Electronic Journal of Business Research Methods,7(1), pp. 25-38. Kapferer, J. N. (2004), The new strategic brand management: Creating and sustaining brand equity long term, 3rd edition, London, UK: Kogan Page Porter, M. E. (2008), The five competitive forces that shape strategy, Harvard Business Review, 86(1), pp. 78- 93. Truong, Y., McColll, R., and Kiitchn, P. J. (2009), New luxury brand positioning and the emergence of Masstige brands, Journal of Brand Management, 16, pp. 375-382.