3. Burberry -Estd 1856
Thomas Burberry (21)
Almost 150 years of history
Many contributions to
Fashion Industry
4. 1879 – Burberry used a waterproof and
hardwearing material.
1920 – Burberry became the publically
quoted company for the first time
2002 – Burberry was listed in the London
stock exchange
2004 – Burberry launches its first
transactional website in US and UK was
followed in 2006
2013 – Burberry opened the first store in
India (Delhi) in the City Walk
5. • British Army
During WWI
• Celebrities (such as: Humphrey Bogart, Ingrid Bergman, Audrey
Hepburn, Peter Sellers, etc) , well-known adventurers , politicians,
aviators, balloonists and expeditionists, British Royalty, especially King
Edward VIII
1920s and 1930s
• European customers as well as international customers, mainly Asian
customers and in Asia also Japanese customers starting 1970s
1950s to 1980s
• Older Customer Base: Older males and Asian tourists
Early 90s to mid 90s
• Slowly and steadily Younger Customers started to enter the Burberry's
customer base
Late 90s, Rose M Era CEO – (1997)
9. Elite fashion for males and females in the premium segment who appreciate
the British clean, smart and timeless classic style.
➔Demographic Segmentation
➔Middle Aged Men & Women- Clothes & Fashion Accessories Perfumes.
➔Children-Childswear Range
➔Older People - Trench-coats
11. ● Burberry specializes in fashionable clothes that are appreciated worldwide
because of its distinctive designs and exquisite materials. Its Tartan pattern is
unique in its design and is associated with Burberry.
● Middle aged men and women from upper class.
● Concentrated Marketing-Niche Marketing
● Label Consicious Shoppers
● Celebrities
17. Burberry is the epitome of Britishness. It’s heritage is in leather goods;
Burberry’s is in trench coats. It has posted strong growth in the past 10
years, narrowing their scale gap with megabrands
like LouisVuitton and Gucci.
But, in the past few months, shares in this brand has lost significant value.
We can trace the roots of their recent woes to Asia; China in particular. Not
that the Chinese market has been easy for anyone recently.
18. Both Burberry and Prada achieved growth by developing product offerings
beyond their core, while retaining very significant centres of gravity.
Burberry has expanded from its apparel core into leather and accessories.
At the same time, in the past few years, the house has significantly
increased the price of their core offerings.
They have also moved toward becoming de facto retailers, withdrawing
from wholesale and integrating aggressively downstream.
But Burberry appear to be under greater pressure there than their luxury
peers. In its most recent quarter, Burberry saw like-for-like growth sinking
into negative territory.
Any misstep now will only compound the troubles facing these brands.
19. This pricing strategy considers the value of the product to
consumers rather than the how much it cost to produce it.
Value is based on the benefits it provides to the consumer
e.g. convenience, well being, reputation or joy.
20.
21. As all the products are luxurious items with excellent
craftsmanship and innovative designs, the pricing has
to be premium.
What matters is that the quality that cannot be
compromised at any cost. The pricing policy of the
brand is dependent many factors.
Burberry is both a luxury brand and a global company
and hence its prices have to be consistent around
the world everywhere because price discrimination
will result in diluting its brand image.
The global marketing team of Burberry is responsible
for the pricing strategies after heavy evaluation
about the product demand, market research and
competitor’s prices
22. In 1911, they outfitted Roald Amundsen, and later they outfitted Ernest
Shackleton and George Mallory.
Since earlier time’s, special emphasis have been given on promotional activities.
High-class magazines have been selected so that ads can be placed in them and the
visual media has been utilized to launch and highlight their products.
Romeo Beckham was then ten year old featured in the Burberry ads with British
models Charlotte Wiggins, Edie Campbell, Alex Dunstan, Cara Delevinge and Max
Rendell.
The famous photographer Mario Testino photographed the Spring/summer
Burberry collection.
Felicity Jones and Callum Turner, the British actors and the models Jake Cooper
and Jourdan Dunn. The famous teenage actor Emma Watson has also been a part
of Burberry collections.
23. Develop new
line
Do
Nothing/Ignore
Or
• Urban, Hip-hop musicians
• Not what they had planned
• Two possible choices:
Capitalize
the new
market
•Low brand loyalty
•Will move to the next
new thing “BUZZ”
Develop new
line
Do
Nothing/Ignore
Or
Capitalize
the new
market
•Low brand loyalty
•Will move to the
next new thing
“BUZZ”
Develop new
line
Do
Nothing/Ignore
Or
Capitalize
the new
market
Develop new line Do Nothing/IgnoreOr
Capitalize the
new market
25. •Competition
•Popularity in non-
target groups
•Not enough stores
in small cities.
•Expansion of
stores globally.
•Wide age groups.
•Can conduct more
Burberry shows in
different cities.
• Eroded Brand
Image
• Poor Quality
and
Reliability
• Eroded
Dealer
Confidence
• Low
Marketing
Budget
•Well established
brand.
•Original Design and
uncompromising
quality
•Huge channel
network’
•Iconic check
•Large range of
products
S W
OT
26. Burberry successful in reinventing itself
But just the beginning
A long way to go
Shedding of old leaves
New leaves yet to grow
Venture into new product categories
Flagship: Real Differentiator