Brand and Burberry

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1. Executive Summary
Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues related to the challenges of product extension, management of the Burberry check and customer segmentation. To reach a recommendation, we come up with five criteria: Brand image; Financial implications; Competitive advantage; Market growth and Ease of business. As maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market we based our recommendation on this criterion. Based on the situational analysis, we narrowed to the following three alternatives: 1.Status quo

2.Reposition the brand through segmentation of the market
3.Reposition the brand to target core customers
After careful scrutiny and evaluation of alternatives, we recommended that Burberry should reposition its brand in order to target the core customers. By implementing this alternative, Burberry will be able to sustain its brand positioning in the fashion industry, which would provide competitive edge to Burberry over the other luxury brands. Association with high-end customers would further enhance the brand image, which would be very helpful to sustain the market growth in global arena. Further, Burberry would be able to implement this strategy with much less efforts and with minimum financial implications.

2. Situation and Problem Definition
Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues related to the challenges of product extension, management of the Burberry check and customer segmentation. With the above issues in mind, we will carefully analyze the situation (Section 4) and develop the alternative course of actions (Section 5). Further, using the recommendation criteria (Section 3), we will evaluate each alternative (Section 6) and will come up with a recommendation in form of a business strategy that Burberry should adopt (Section7). Finally, we will prepare an action plan for the implementation of the recommended business strategy (Section 8).

3. Recommendation Criteria
In order to evaluate the effectiveness of the alternatives and to reach a final recommendation, following criteria is devised. 1.Brand image: Burberry has gained a reputation as distinctive luxury brand with international recognition and a broad appeal. Any poor strategy at this stage would hamper the brand value of the company so the recommendation should strengthen the Burberry brand. 2.Financial implications: Firms often need to spend tremendous amount of money to make tangible changes to the product and packages, as well as intangible changes to brand’s image through advertising. Therefore,...
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