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Burberry

Case Discussion: April 15th

Target Solutions Marketing Group

Taiya Brandon
Kelvin Brown
Shawn Correia
Dale Hall
John Kimwele
Market Position
“Give me my Burberry!”
• Brand a symbol of both luxury and
durability
• Check pattern of camel, black, red, and
white plaid design – a registered
trademark
• Company image transformed from a tired
outerwear manufacturer into a luxury
lifestyle brand
• Brand repositioned to a niche between
cutting-edge fashion and classic fashion,
excelling in clothing lines and accessories
Issue and Challenge

• Maintain the current Burberry prestige and


customer base

• How to continue to grow the brand


without risking customer burnout?
• Introduction of new products
• Role of the Check
New Direction
1. Which new product categories should Burberry
enter?
• Product extensions considered a key part of the
company’s growth plan

2. Popularity of the brand among the non-target


customers (urban youth and hip-hop musicians).
Would this affiliation alienate Burberry’s core
customers?

3. Sustainability of brand positioning between


fashion brands and lifestyle brands
• Competition with both kinds of brands as well as
competitors
New Direction continued…
4. The Role of the Check should the trademark
pattern be as prolific and visible on new products?
Burberry Apparel Sales

Overt usage of the Check


10%

Check featured in seasonal color


variations
10%

No Check featured at all


40%

Check used subtly (e.g. in the linining)


40%
Recommendations – Future Growth
• Using the AIDA Model, comprise the most
effective promotional strategy for market position

Burberry Sales (2000-2003)

Europe North America Asia Pacific Other

70

60

50
Percentage of Sales (%)

40

30

20

10

0
1999.5 2000 2000.5 2001 2001.5 2002 2002.5 2003 2003.5
Recommendations – Future Growth
• The promotional strategy in Europe would have
objectives of reminding the target audience of the
qualities of the Burberry brand

• As growth has been slow in the Asian market, a


promotional strategy persuading the target
audience to the prestige of the Burberry brand

• North American sales have declined over the past


three years. A combination strategy -- persuasion
and reminding the target audience of the Burberry
brand
Recommendations – Future Growth
• Introduction of new products or product extension?
• Focus on product extension in the categories of Womenswear
and Accessories; transition out of the “Other” category to align
resources with potential growth categories
Burberry Sales by Category

2000 2001 2002 2003

35

30

25
Percentage of Sales (%)

20

15

10

0
Womenswear Menswear Accessories Other License
Recommendations – Future Growth
• Continue to promote the brand and keep
customers aware of Burberry. The popularity of
the brand in the non-target customer segment can
help grow the brand in both Asian and North
American sectors

• Sustainability of the brand positioning – on


product line extensions, branch out further in to
the cutting edge fashion and classic fashion. The
purchase price in comparison to others in the same
market will grow sales. Important to get the
customers’ attention and interest.
Recommendations – Future Growth
• Role of the Check
Current product mix has 40% without the check
and 40% with the check used subtly

Continue new product line expansions by


maintaining this “check” mix on apparel items; on
accessories, look to expand the “no check” to
further establish the brand position of Burberry and
promote the prestige and quality of the products
Acknowledgment

• The Burberry check pattern is a registered


trademark

• Product images used in this presentation are the


sole property of Burberry

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