Burberry Case

Topics: Brand management, Burberry, Luxury good Pages: 6 (1738 words) Published: November 9, 2011

Analyze the Marketing situation (5C’s) and compare Burberry’s market

Positioning before Rose Marie Bravo arrived vs. the current (2003) positioning.

1.1 Marketing situation 1.1.1 Customers Before the arrival of Bravo to the company administration, Burberry customer base were those belonging to class A. By 1990’s its customer base was particularly older males and Asian tourists. When Bravo took office, her first worry was the repositioning of the brand and her priority goal was to attract younger customers while retaining Burberry’s customer base. To achieve this goal, Burberry has offered a lower-price label designed to appeal to a younger, more fashion-conscious customer, and has created another label as a way to reinforce Burberry new positioning in the luxury market. Thus, based on Burberry pricing structure, product lines and brands, we can define the brand as cross generational, whereas Burberry wants their apparel and accessories to reach different generations but keeping the image of style and functionality. Therefore, Burberry wanted to create the image of an “accessible luxury”. In this context, Burberry main target customer is someone who wants luxury while being also functional.

1.1.2 Company skills Burberry is one of the most fashion-oriented and classic brands. The company is, therefore, one of the most trend and preferred brands ever, due to the fact of being one of the few international luxury brands that could be considered classic as well as contemporary, which led the company to win some international important awards. This is due to “its great history and British heritage”.

1.1.3 Competition Since the early 1920’s, Burberry has remained as a symbol of both luxury and durability, which has drive Burberry to its current market position. According to Bravo, “Burberry focused on a particular price point and a particular bracket”, “We knew we didn’t want to be cutting-edge fashion; that was too tough, too rarified, too frickle, and too antithetical to Burberry. We also knew that we didn’t want to be just classic because there were enough of those brands”.

With this mindset, the first decision made by Bravo and her team was to reposition the brand and become “one of the luxury greats”. Therefore, they began the pursuing of their goal by doing an extensive market surveying that could help them identifying the missing gaps of the market, which they needed to fulfill. Therefore, we can find a niche for Burberry that stands between labels such as Polo, Ralph Lauren and Giorgio Armani in apparel, and between Coach and Gucci in accessories.

1.1.4 Collaborators Bravo hired top talent from the retail industry in order to achieve her vision. Specifically, to promote the new Burberry brand image, Bravo and her team hired the creative director Fabien Baron and a famed team that included the photographer Mario Testino, whose work had appeared in some well-known magazines, such as Vogue, The Face and Vanity Fair. According to Bravo “it was important that we stay true to our heritage” and the reason Mario Testino was the “perfect partner for us was that he understood the importance of a heritage brand. He also understood Englishness (...)”.

1.1.5 Context By the mid-90s, the company was facing a number of strategic and structural issues and, although the business was profitable, the earnings quality was low. The market structure is another important feature to take into account, since Burberry was facing the stiff competition of its competitors. Bravo, however, took important measures in order to compete in the market.

1.2 Burberry’s market Positioning before and after Rose Marie Bravo Burberry started in 1856 when Thomas Burberry invented the gabardine, a waterproof and breathable fabric for extreme conditions. Over time, the trademark check pattern became the company signature and was used by some well-known celebrities, such as Audrey Hepburn and Peter Sellers. At this time, Burberry was a...
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