Luxury Good and Burberry

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Compare Burberry’s market position relative to that of its competitors including Polo, Coach, Armani and Gucci. Is Burberry’s competitive position sustainable over long term? Why or why not? Burberry has positioned its brand in the minds of consumers to be “functional luxury.” Burberry maintains a product line with great width and depth consisting of many products. Their products fall into one of two main categories: fashion or continuity. Fashion products are designed to be responsive to fashion trends and are introduced on a collection-by-collection basis. Continuity products have life cycles that are expected to last for a number of years. Burberry also has three primary collections: womenswear, menswear, and accessories. With so many different products offered in different collection and the fashion vs. continuity of Burberry products the product mix is very great. This contributes to the positioning of the Burberry brand. Burberry has received awards for the Contemporary Design Collection of the Year and the Classic Design Collection of the Year. This illustrates how diverse the Burberry brand is. Therefore, the market positioning for Burberry varies. Burberry can appeal to the hip 25-year-old man or the conservative 65 year old man. However, many Burberry ads feature younger models. Recent Burberry ads have featured everything from a British landscape with aristocratic looking models to edger ads with models in bikinis. Taking all of this into account, Burberry is targeted towards many different segments of the population with one common theme, functional luxury. Burberry has many competitors that include: Coach, Polo, Armani, and Gucci. Relative to that of Burberry’s competitors, they have positioned themselves very well in the minds of consumers. Coach primary positioning is on handbags. While Coach also carries other accessories that range from watches and shoes to scarves and dog collars, Coach remains primarily in the accessory end of fashion. Coach was also not even a player in the top 10 luxury goods players. However, Coach held 6% of the accessories share and in a price comparison was more on the low end of cost for accessories. This does not however reflect Coach’s marketing positioning. Coach is just simply more affordable and more accessible to the general population. Polo’s marketing positioning is centered more towards clothing. While Polo was a number two player in the top luxury brands they captured the most market share for apparel, however, lower priced than Burberry. The Polo brand has great brand equity and is very well established in the minds of consumers. Armani, another competitor or Burberry, placed 8th in the top 10 global luxury goods. While Armani really only focuses on apparel the brand still maintains a strong luxury position in the market. Gucci also placed in the top 10 global luxury goods. Gucci’s marketing position is towards luxury accessories. They captured 12% of the accessory market share and were the highest priced brand for accessories. Overall, Burberry’s competitive positioning is suitable over the long term. While brand like Coach and Gucci focus more on accessories and Armani and Polo focus more on the apparel market, Burberry has succeeded in penetrating both the accessory and apparel market while remaining a luxury good. Burberry has also succeeded is positing itself between brands such as Polo Ralph Lauren and Armani in apparel, and between Coach and Gucci in accessories. Burberry also has many different lines within the Burberry brand. This allows for more high-end goods and goods that would be feasible for purchase by the general population. Burberry’s positioning of functional luxury is extremely competitive and will sustain over the long-term. The case notes that Bravo’s team has managed to elevate the overall status of Burberry’s brand. How has it managed to accomplish this? The Bravo team was very successful in elevating the overall status of the Burberry brand. This...
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