Burberry

Group 4, Section AAjitesh Jaiswal (08P007)

Anuj Dharnidharka (08P013)Reeti Bhatia (08P039)

Siddharth Singh (08P048)Subhratosh Khan (08P050)

Varun Malik (08P053)

1860• Waterproof and breathable material is

invented by Thomas Burberry• Considered leisure class sports wearWW I• Designed officer’s uniforms for British Army1924• Burberry’s classic “check” appears as the

lining of trench coats1930’s• “For safety on land in air of afloat, there is

nothing equal to the Burberry coat

1940’s• Burberry meets Hollywood1960’s• Supermodel Twiggy revitalizes the trench1970’s and 80’s• No longer on fashion runways but trench coat is

used in movies like Pink Panther and Dick Tracy2000• Plaid of choice for the well-heeled and fashion

conscious

• Burberry was originally synonymous with quality and durability

• Was part of regulation uniform for soldiers during WW I

• Distinctive check pattern begins appearing during the 1920’s and becomes a registered trademark

• Celebrities, adventurers and politicians begin to be seen in Burberry’s signature check

• Original designs and uncompromising quality make Burberry a symbol of both luxury and durability

• Ownership changes in 1955 and Burberry continues to grow worldwide due to licensing and distribution agreements

• Brand becomes licensed from wallpaper to chocolates

• Price, design and quality begin to vary• Unauthorised parallel trading occurs• No respect to the brand image• Sold in retail environments inconsistent with

its quality proposition• Brand loses its exclusivity

Revenues grow about 3 times within 3 years

New Goal:• To transform Burberry from a tired outerware

manufacturer to a luxury lifestyle brand that was aspirational, stylish and innovative

Hiring the best talent• Top management team made up of A-list

industry talent• People who had worked on shop floors and in

fitting rooms• People who knew

– What customers wanted– What price points people wanted– Where the gaps were

Surveyed the market and identified gaps Goal was to attract younger customers

while retaining core customer base Contemporary logo and packaging were

introduced Didn’t want to be cutting edge nor just

classic Key differentiator from other brands was

its functionality

• Updating the Product Line• Slashing the number of product stock

keeping units (SKU’s) from 100,000 to 24,000

• Eliminated outdated designs and had a consistent look about products

• Almost a 1000 new styles each season across womenswear menswear and accessories but stayed true to its heritage

• With non-licensed products Burberry exercised control over EVERYTHING (design, sourcing, manufacturing, distribution)

• Curbed inconsistencies in price, design and quality across markets

• Tighter control over distribution• Opening up of flag ship stores

– Display full product range– Showcase the vision– Testing ground for new concepts and designs

• Create consistent brand image to avoid risk of brand credibility

Lower end• Low price labels to appeal to younger, fashion

conscious customers• E.g.: Thomas Burberry and Burberry Blue and BlackUpper end (Burberry Prorsum)• Limited distribution, not meant to be a brand for

millions of people• Ultra luxury and appeared on runways with the

fashion greats• Opportunity to showcase new brand image and get

editorial press for its collections• Way to tell people something new was happening

at Burberry

• 10 million pound budget to overhaul the image

• Aim was to appear trendy without discarding its rich history and heritage

• Although the campaigns were chic fun and witty the model used appeared aristocratic and classy

• Kate Moss was chosen as brand ambassador because she was ultra stylish yet young and sexy

• The Burberry brand has successfully been turned around

• Expansion into product categories such as perfumes, childrenswear and footwear

• Popularity of brand among non-target customers needs to be tapped

• The distinctive Burberry “check” appears in over 60-70% of all sales, more restrained use is required

• Pervasiveness of the “check” needs to be done in a more strategic way (not too much nor too little)

• Sustaining the brand positioning• Broken brand has been fixed but biggest challenge

now is to continue to grow the brand without risking customer burnout