Case 3 – Burberry: reinventing the brand
M2 AEI, CAI. Année 2010-2011
Le groupe est composé de :
TRAN THI THU
How were the clothes bearing the Burberry name augmented to create a brand before the 1980s?
Mix marketing (before 1980s)
• In 1856, Thomas Burberry proposed gentlemen’s outfitters (men’s clothes) with high quality clothes.
• After that he thought that it is better to sell ready-to-wear clothes. The collections were small but the sells want up.
• During the WW1, Burberry sold trenchcoats to the British army; then to customers.
• In 1920, the brand introduced the check which became very famous.
• At the beginning Burberry aimed only at upper-class but after it wanted to attract upper-class and middle-class.
• Burberry aimed at the domestic market before 1980.
• Thomas Burberry set up his own gentlemen’s outfitters in 1856 (a small shop).
• Then, he developed his company and supplied trenchcoats to the British army.
• In 1955, the Great Universal Stores bought Burberry and allowed the brand to expend its market proposing the products in more shops.
• The reputation of the brand grew because it proved its contribution to the national cause. Indeed, the fact that the British army won the war increased the good image of the brand.
• Burberry brand was worn by different actresses in some movies who became very famous. Fashion people started to buy the same clothes.
What problems might arise in trying to build Burberry into a global brand? What are the dangers inherent in Burberry’s strategy since 1997? What are the challenges in marketing luxury brands?
According to industry observers, luxury brands tend fare better than mass market brands during times of economic hardship. It is agreed, that in general luxury products are based on basic products and exceed the customer´s satisfaction applying additional attributes. The role of brands can be functional, rational, symbolic, emotional or intangible, depending on whether the performance of the service or product suits the required demand, or the representation of the brand to express the customers themselves through the brand choice. For this purpose convincing the customers about product or service related benefits and advantages to remain in their minds are important for a successful brand strategy. These are the elements of brand-building factors of Burberry.
• High quality clothing
• Positioned as an exclusive, up-market lifestyle brand appealing to younger consumers • Positioning was based on the concept of accessible luxury • Range was also stretched to a wider range of products • Consistent marketing mix
• Brand domain: the product range and design were changed to make the brand more attractive to younger people. Gift prices were lowered to increase store traffic, improve accessibility to younger people and increase sales. • Brand heritage: high class British heritage
• Brand values: quality, design and exclusivity.
• Brand assets: the Burberry brand name and distinctive check, both conveying an up-market image • Brand personality: wealthy and discerning.
• Brand reflection: ‘I feel classy wearing Burberry.’ • Well blended communications: product redesign and brand stretching, contemporary advertising campaigns, exclusive outlets such as Harrods and Harvey Nichols and premium prices meant that each of the elements of the marketing mix communicated a consistent image. • Being first: probably not a major brand building contributor here. • Long term perspective: Burberry’s international expansion plans and continuing marketing effort suggest that the brand is being built for the long term. • Internal marketing: there is no...
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