Burberry Analysis

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Exam: Semester exam project- BusinessPages: 19 Deadline Date: 14th of Juni 2010 Tutor: Christina Rath, Ulla AbbasName: Jeanette Klit Jensen Word count: app. 5057College: Business Academy South West Index.

Front page……………………………………………………………………….…………… Page 1 Index……………………………………………………………….……………….………… Page 2 1.1 Problem statement.……………………………………………………….………………Page 3 2.1 History/ Background ……………………………………………………………………Page 3 3.1 The Old structure……………………………………..…………………………………Page 4 3.2 External environment………………………………………...………………………Page 4- 5 3.3Products and placement…………………………………...…………………………Page 5- 6 4.1 The new Strategy…………………………………………………...…………………Page 6- 7 4.2 Marked and business scope.………………………………………………..………Page 7- 9 4.3 Products……………………………………………………………………………...Page 9- 12 4.4 The product lines. …………………………………………………………………Page 12- 13 4.5 Manufacturing and sourcing.………………………………………….…………Page 13- 15 4.6 Distribution channels.…………………...…………………………………………Page 15 - 16 4.7 Marketing communication.…………………………….…………………………Page 16- 17 5.1 Conclusion.……………………………………………………………….……………Page 18 6.1 Source of references ……………………………………………………..……………Page 19

Problem statement.
1.1
How Is Burberry Structural build up and how do they work whit their external environment. Explanation of what structural changes Burberry did, to turn the company in to the success it is today. Analyze the process of the finding the core products that Burberry have chosen. How they have targeted a new segment of the market, true marketing and branding.

History/ Background.

2.1
The fashion world is well known for the exclusivity, luxury and high prices. A high fashion brand, represents style and important to the few that can effort to wear it. But the market for fashion is bigger than only the super rich. A global fashion brand must reach out to as many customers as possible, whit out loosing the value and exclusivity it possesses. This demands a very clear and well coordinated business plan, together whit some talented designers. But a well selling luxus brand just doesn’t happen overnight. It takes years and decades to build up the reputation and image that a fashion brand represents. A brand that has the history, exclusiveness and reputation of a real global fashion brand is Burberry.

Burberry was founded in 1856 by Thomas Burberry, when he opened a store selling men’s outerwear. He develops a fabric called Gabardine, which was weatherproof, breathable and resistant to tearing. This was the start to Burberry success. The fabric was perfect for the British Army and Burberry designed the famous Trench coat. Soon after the know world famous Burberry check was developed, for use as a easily recognizable pattern in the lining. Because of the quality fabric gabardine, Burberry got known as the explorer’s best friend and is still today a brand that symbolizes quality for the world traveler. But it has not been whit out troubles along the way. Fast growing and poor management of values and quality made Burberry lose some of the exclusivity and image they once possessed. But they regained control and turned the company around, making it one of today most sold high fashion brand. This is exciting in its simplicity, but the real excitement lies in how they did it. This is what I will analyze and describe in the following project.

The Old structure
3.1

To understand the company’s success today, we have to know the past and where it went wrong. Therefore we have to find the key problems and analyze the company. Then we can see where the company started to lose control and later compare it to the Burberry today. I will base the analyses on different business strategies such as the marketing mix - the 4 P´s (product, price, promotional and placement), Supplier relation management, together whit Ansoff´s generic strategies for growth and Porters Three generic...
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