the brilliance around Burberry when it comes to leadership, vision and global perf

Module:
Global Leadership & People Management
Intercultural Management & Negotiations
 index of contents
Burberry store 1
1. burberry history & current situation

2. building vision & strategic directions

1. 2.1 manager or leader
2. 2.2 old vision vs. new vision
3. 2.3 methods on building a vision
4. 2.4 implementation strategic directions

3. russian and chinese market

4. 3.1 chinese attitude towards luxury
5. 3.1.1 performance improvement in chinese market
6. 3.2 russian attitude towards luxury
7. 3.2.1 performance improvement in russian market

4. global brand image

5. sources
1. about Burberry & current situation

Burberry history
founded in 1856 in London (UK)

famous for its trenchcoats officer clothing during world war one
Burberry Trenchcoat 2
products highquality gabardine material & nova check swatch

since 1955 british royal purveyor to the court

current situation

Christopher Bailey gave up on his position as chief executive

Mario Gobbetti as the new CEO of Burberry

1
2.1 manager or leader Manager OR Leader ?

Mario Gobbetti 3 experiences

USE PERSONAL INFLUENCE

INSPIRES AND MOTIVATES PEOPLE
CREATE VISION AND STRATEGY

modern Leader

2
2.2 old vision vs. new vision
Old Vision
first company which is fully digital
building a social enterprise
offering consumers total access to Burberry
mixing tradition and heritage with modernity
(modern communication tools e.g. social media)
New Vision
a company with a stronge global fashion identity due to
unique products with a symbolic origin, design and heritage
character
a company that brings history into a modern global luxury
world which makes people feal special
digital performance is important but not the brands
key indicator
3
 2.3 methods on building a
vision
... how Mario Gobbetti should build a vision for Burberry ?
1.
2. Energizes people and focuses attention
high task high relationship; coaching toward achievement style| combining task and
relationship behaviours
2.3. Gives meaning to work
leader as a communication champion strategic conversation (using stories|dialogue|open climate)
purpose directed direct attention to vision, belief & desired outcomes
3.
4. Establishes a standard of excellence and integrity
optimism|energy|charisma|self-confidence|integrety|interpersonal skills

4. 1. Links the present to the future

clear understanding how to drive company to success due to new vision

4
2.3 methods on building a
vision
influencing employee-team to come around a common vision

rolemodel young team

success story Cline 30 years old
multicultural background open climate|
VISION

VISION
open door politic global team
& experiences with varified backgrounds
global luxury brands communicating vision
through daily team with a pioneering
inspiring & motivating spirit
team by using emotional interaction
intelligence

Workshops Jour Fix

brainstorming sessions | analysis & research | building common concepts & imaginations
5
2.4 implementation strategic directions

High strategic impact Hard to execute

VISION
major changes with a high potential to pay off

Mission
raising brands desirability and market demand

Strategy
6
2.4STRATEGIC
implementationDIRECTION
strategic directions

create a strategy by clarifying roles and resposibilities

VISION
challenging status quo set generalized & longterm company goals
(change brandperception|improvements in mainline retail|increased global & local performance
create synergy effects by introducing all corporate departments on their tasks

anticipate threats and opportunities adapt & face ongoing challenges|remind employees about companys
strengths|teach why certain actions are taken

interpret trends teach them to think outside the box|explain changes and allay employeess fears

achieve alingment ongoing communication

7
- VISION -

si a
Rus

8
3.1 chinese attitude towards luxury
Ken-Shou 30 years old businessman 4

why chinese people do buy luxury products?

social needs and status

demonstrates success & good taste

irrational way of buying

most popular luxury brands accepted by society

luxury brand associated by western culture

heritage|tradition|quality|craftmanship

new value trend

what does the brand stand for?
is the brand individual & exclusive enough?

9
Awareness of luxury brands in China 2014

Source: Statista 2015

10
3.1.1 performance improvement in Burberry ,,made in china 5
chinese market
paradoxical Burberrys place of production is China
no outsourcing by producing in europe (e.g. italy|UK) n a
in Ch i
promote symbolic values of products (heritage , tradition & story) ade
M
burberry exhibition|flagshipstores (brandexperience)

Old Burberry advertisement 6

veblen effect Burberry wants to raise brand cognition due to

40 percent markup compared to Europe
cutting of prices (transparency globalization)

69 retail stores in China

reduce number of point of sales to underline
exclusitivity & rareness

focus productlines on male costumer

China: higher consumption of luxury products through men
11
3.2 russian attitude towards luxury
Svetlana 35 years old rich husband 7
why russian people do buy luxury products?

symbolic meaning of luxury products

brandname & - lettering|brandvalue|quality

participation on European awareness of life

demonstrate apparent affluence

preference of innovative luxury products

stand out from the masses|represent uniqueness

identification with iconic brand ambassadors

vision for a better life|escape from reality| feeling of power

12
 3.2.1 performance improvement in
russian market Burberry commercial with Kate Moss 8

Burberry brand logo

focussing product lines on female consumers
pompous designs & curious shapes

promote the brand value by creating a burberry community

put logo in foreground as a figurehead

increase advertising efforts (e.g. TV|mega posters)

high impact on image indicator for economic power|
guarantee for quality|competitive advantage due to
products

focus on stationary trade

(low share of sales in online distributions: two percent) Burberry brand logo
monobrandstores (high quality marketing|extensive POS
design|excellent service)

no outsourced manufactures
quality is imporant ,,made in Germany 13
 4. global brand image Hofstede Cultural dimensions individualism & collectivism

generally Burberry has a strong global brand image and is seen

as one of the most important and exclusive luxury brands worldwide!

intermarket segmentation
consumers with shared values & needs
(e.g. Saudi Arabia (british brands are attractive|increased sales) Morocco)
(e.g. Brazil (10 percent growth in sales) Argentina)

balance between a consistent global image & adapted marketing mix

global brand association and identification

differences between emerging markets & developed markets

social status awareness of life

14
 5. sources
online text sources:
https://hovgaards.com/2012/01/06/burberry-we-have-a-vision-to-be-the-first-company-that-is-fully-digital-end-to-end/
http://www.4-traders.com/business-leaders/Christopher-Bailey-2031/news/Burberry-to-replace-Bailey-as-CEO-with-Celine-s-
Gobbetti--22675381/
https://www.theguardian.com/business/2016/jul/12/marco-gobbetti-the-man-tasked-with-putting-burberry-back-in-fashion
http://www.thefashionlaw.com/home/confirmed-marco-gobbetti-leaves-celine-for-burberry-ceo-spot
http://www.burberryplc.com/about_burberry/our_strategy/build_our_culture
https://www.businessoffashion.com/articles/news-analysis/marco-gobbetti-named-ceo-at-
burberry-christopher-bailey-to-become-president
https://www.theguardian.com/business/2016/jul/11/burberrys-christopher-bailey-new-ceo-celine-marco-gobbetti
http://www.g-i-m.com/fileadmin/templates/pdf/2006_Auszug_aus_dem_Investitionsfuehrer_Russland.pdf
https://www.welt.de/wirtschaft/webwelt/article130793212/Russen-bezahlen-ihre-Onlinebestellung-gerne-bar.html
http://www.thenational.ae/business/retail/burberry-stays-ahead-of-trend-to-meet-regional-luxury-goods-demand

picture sources:
1: http://www.burberryplc.com/multimedia/images/04.mediacentre/burberry-store-opening-in-omotesando-japan
2: http://www.fashiongonerogue.com/wp-content/uploads/2014/06/burberry-fall-winter-2014-campaign-photos2.jpg
3: http://newsimages.fashionmodeldirectory.com/content/2016/08/Marco-Gobbetti-2.jpg
4: http://www.manager-magazin.de/images/image-551077-mmo_panoV9-tmkw-551077.jpg
5: http://www.londonlovesbusiness.com/pictures/462xAny/2/8/9/2289_China-and-Burberry.jpg
6: http://www.manager-magazin.de/images/image-551077-mmo_panoV9-tmkw-551077.jpg
7: http://shop.a-la-russe.de/wp-content/uploads/2012/07/shawl-russian-russisch-schal-tuch-oleana-foulard-chale-a-%C3%A0-la-russe-scia
lle-russo-toquilla-fazzoletto-ruso-comtesse-sofia-foulard-brown-braun-flowers-posad-pavlovsky.jpg
8: http://smg.photobucket.com/user/djdj/media/kate_moss2Clily_donaldson-burberry-SS2005.jpg.html 14
 Anabela Maticevic| Prsentation Global Leadership| Intercultural Management

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