Burberry Case Study
Framework: 2
Step: 1 Comprehend case situation
Burberry is a famous British originated fashion and luxury company that launched its first product in 1900. It had been a well-established luxury brand for wealthy middle-class people for several decades until 1980 when the company started making losses because of its old-fashioned products. To avoid further losses, its CEO Rosemary Bravo revamp it with modern feel and soon its popularity grew among hip-hop artists and football fans. This Burberry strategy to embrace new age resulted in loss of core customers, sales loss many more. Now, we are going to identify the problems, generate solutions, evaluate and select one problem and provide our arguments along with their counter-arguments and refutations.
Step: 2 Identifying Problem Areas
Step: 3 Problem statement
The original British luxury brand Burberry is facing challenges of a great loss of core customers, narrow market with luxury and exclusive heritage, old-fashioned brand, declines in sales, popularity as well as in profits.
Step: 4 Generate alternatives
Step: 5 Evaluate and select Product * What does the customer want from the Burberry product/service? * What needs does it satisfy? * How and where will the customer use it? * What is it to be called? * How is it branded? * How is it differentiated versus Burberry competitors?
Place * Where do buyers look for Burberry product or service? * How can Burberry access the right distribution channels? * Does Burberry need to use a sales force? or attend trade fairs? or make online submissions?
Price
* What is the value of the Burberry product or service to the buyer? * Is the customer price sensitive? * What discounts should be offered to Burberry customers? * How will Burberry price compare with Burberry competitors?
Promotion
* Where and when can Burberry get across its marketing messages to its target market? * When is the best time to promote? Is there
Step: 1 Comprehend case situation
Burberry is a famous British originated fashion and luxury company that launched its first product in 1900. It had been a well-established luxury brand for wealthy middle-class people for several decades until 1980 when the company started making losses because of its old-fashioned products. To avoid further losses, its CEO Rosemary Bravo revamp it with modern feel and soon its popularity grew among hip-hop artists and football fans. This Burberry strategy to embrace new age resulted in loss of core customers, sales loss many more. Now, we are going to identify the problems, generate solutions, evaluate and select one problem and provide our arguments along with their counter-arguments and refutations.
Step: 2 Identifying Problem Areas
Step: 3 Problem statement
The original British luxury brand Burberry is facing challenges of a great loss of core customers, narrow market with luxury and exclusive heritage, old-fashioned brand, declines in sales, popularity as well as in profits.
Step: 4 Generate alternatives
Step: 5 Evaluate and select Product * What does the customer want from the Burberry product/service? * What needs does it satisfy? * How and where will the customer use it? * What is it to be called? * How is it branded? * How is it differentiated versus Burberry competitors?
Place * Where do buyers look for Burberry product or service? * How can Burberry access the right distribution channels? * Does Burberry need to use a sales force? or attend trade fairs? or make online submissions?
Price
* What is the value of the Burberry product or service to the buyer? * Is the customer price sensitive? * What discounts should be offered to Burberry customers? * How will Burberry price compare with Burberry competitors?
Promotion
* Where and when can Burberry get across its marketing messages to its target market? * When is the best time to promote? Is there
References: * Igal Ayal & Jehiel Zif. ‘MARKET EXPANSION STRATEGIES IN MULTINATIONAL MARKETING’.84 / Journal of marketing, Spring 1979. Available from URL: http://www.jstor.org/pss/1250744 * Ben McClure. ‘Great Expectations: Forecasting Sales Growth’. Available from URL: http://www.investopedia.com/articles/stocks/04/100604.asp * “Disadvantages of Business Expansion: The Economic Growth on Business”. Published December 24, 2001. Available from URL: http://www.morebusiness.com/getting_started/primer/steps-successful-business-8.brc.brc