According to Exhibit 13, the respective market shares for Polo, Armani, Gucci, and Burberry are 9.1%, 3.5%, 4.4%, and 5.2%. Coach was not included among the Top 10 Global Luxury Goods Players in general, but specific to accessories, they have an estimated 6% market share compared to Burberry’s 4%. This data illustrates that Burberry is doing quite well. They are one of the Top 5 Global Luxury Goods Players and it appears that they have plenty of room for growth. Unlike many of its other competitors, as mentioned by Rosie Bravo, Burberry has positioned itself as brand that is not only aspirational, but also functional. This best of both worlds quality differentiates Burberry from many of the other players. Under Bravo’s guidance, Burberry now appeals to a wide demographic in terms of age, income, and fashion preferences. However, this might actually be an area of concern because now every firm is a competitor. In essence, Burberry does have a very sustainable competitive position, though it might be wise to shift towards one spectrum (i.e. lifestyle or fashion) instead of straddling between the two. Question 2:
Burberry’s customer base ranges widely in terms of age, and is more defined by style than anything else. Their core customers are the old money type individuals interested in a classic look, while their newly targeted consumer base includes the young and trendy group of individuals. According to the case study, there was an individual on Big Brother who sported the Burberry check in every episode. This could lower Burberry’s brand value because it sends the message that anyone can wear Burberry; the aspirational quality of a brand is largely backed by the idea of exclusivity. Customers might turn away from Burberry as a result.
In response, Burberry could decide to use the check with more discretion. Noticeably, Burberry’s core consumers tend to avoid products with the check in pursuit of a more classic, more subtle look. This...
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