Burberry

Case Discussion: April 15th

Target Solutions Marketing Group
Taiya Brandon Kelvin Brown Shawn Correia Dale Hall John Kimwele

Market Position
Give me my Burberry!
Brand a symbol of both luxury and durability Check pattern of camel, black, red, and white plaid design a registered trademark Company image transformed from a tired outerwear manufacturer into a luxury lifestyle brand Brand repositioned to a niche between cutting-edge fashion and classic fashion, excelling in clothing lines and accessories

Issue and Challenge

Maintain the current Burberry prestige and customer base How to continue to grow the brand without risking customer burnout?
Introduction of new products Role of the Check

New Direction
1. Which new product categories should Burberry enter?
Product extensions considered a key part of the

companys growth plan

1. Popularity of the brand among the non-target customers (urban youth and hip-hop musicians). Would this affiliation alienate Burberrys core customers? 3. Sustainability of brand positioning between fashion brands and lifestyle brands
Competition with both kinds of brands as well as

competitors

New Direction continued

4. The Role of the Check should the trademark pattern be as prolific and visible on new products?
Burberry Apparel Sales

Overt usage of the Check 10% Check featured in seasonal color variations 10% No Check featured at all 40%

Check used subtly (e.g. in the linining) 40%

 Using the AIDA Model, comprise the most effective promotional strategy for market position
Burberry Sales (2222 ) -2222
Europe 2 2 North America Asia Pacific Other

Recommendations Future Growth

2 2

2 2 Percentage of Sales (%)

2 2

2 2

2 2

2 2

2 11. 1 11

22 22

22. 2 22

22 22

22. 2 22

22 22

22. 2 22

22 22

22. 2 22

Recommendations Future Growth

The promotional strategy in Europe would have objectives of reminding the target audience of the qualities of the Burberry brand As growth has been slow in the Asian market, a promotional strategy persuading the target audience to the prestige of the Burberry brand North American sales have declined over the past three years. A combination strategy -persuasion and reminding the target audience of the Burberry brand

 Introduction of new products or product extension?

Recommendations Future Growth

Focus on product extension in the categories of Womenswear and Accessories; transition out of the Other category Burberry Sales by Category to align resources with potential growth categories
22 22 2 2 22 22 22 22 22 22

2 2

2 2 Percentage of Sales (%)

2 2

2 2

2 2

2 Womenswear Menswear Accessories Other License

Recommendations Future Growth

Continue to promote the brand and keep customers aware of Burberry. The popularity of the brand in the non-target customer segment can help grow the brand in both Asian and North American sectors Sustainability of the brand positioning on product line extensions, branch out further in to the cutting edge fashion and classic fashion. The purchase price in comparison to others in the same market will grow sales. Important to get the customers attention and interest.

Recommendations Future Growth

Role of the Check
Current product mix has 40% without the check and 40% with the check used subtly Continue new product line expansions by maintaining this check mix on apparel items; on accessories, look to expand the no check to further establish the brand position of Burberry and promote the prestige and quality of the products

Acknowledgment
The Burberry check pattern is a registered trademark Product images used in this presentation are the sole property of Burberry