Burberry Case Study

Topics: Customer service, Marketing, Sales Pages: 7 (1672 words) Published: April 5, 2011
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
* 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?

* 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 seasonality in the market? * How do Burberry’s competitors do their promotions?

Poor customer service

* Who would use this Burberry product /service?
* Does Burberry maintain high quality standard?
* Does Burberry reasonable for different level of society? * What are the aggressive benefits?

* Who are the targeted Burberry customers?
* Are customers satisfied with the strategy of market expansion? * Are Burberry products suitable for all level of customer? * How ready are the potential Burberry customers to try the product?

* Will Burberry increase the sales with extended market
* What are the inferences for the product’s marketing plan? * Will Burberry exceed the profit goal of company?
* Would the target markets be located and reached with cost-effective media and trade channels? *
* What are the obstacles of market expansion?
* Should Burberry have different dealers according to different level of society? * Where and how to advertise the company?
* Who are the suppliers and intermediaries?

Narrow Market
(Luxury and Exclusive Heritage)

Step: 6 Defend implementation
Outline of argumentative essay
Name: Adeeb Mahmud Bin Traeq
Case study: Burberry

Thesis statement: Burberry should adopt modern technology to provide fast customer service, minimize communication cost and enhance customer loyalty.
Argument 1:
Online customer service (e-commerce) mostly known as e-commerce can provide valuable supports to both Burberry and its customers.
Supporting points:
1. The online customer service provides busy customers the opportunity to buy Burberry products at anywhere and anytime. (William Pirraglia, 2009)
2. E-commerce reduces agent-assisted interactions, agent-assisted emails but increases product ideation. (Christopher Musico, 2009)
3. The service also improves customer retention and customer lifetime value....

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:
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