Running head: CASE STUDY: BURBERRY

Case Study: Burberry

Eunice Hurh
University of North Texas

CASE STUDY: Burberry

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Case Study: Burberry

1. Compare Burberrys market position relative to that of its competitors including

Polo, Coach, Armani, and Gucci. Is Burberrys competitive position sustainable
over long term? Why or why not?
a. When repositioning the brand, Bravo and her team noticed available niches
between Polo Ralph Lauren/Giorgio Armani in apparel and Coach/Gucci in
accessories (Moon, 2004). Relative to its competitors, Burberry is presented as
accessible luxury (Moon, 2004). Burberrys new competitive positioning is seen
as sustainable over long term. What separates Burberry from other luxury brands
is the functional aspecta trench coat that has a purpose (Moon, 2004).
Burberrys point of difference was to be aspirational, but also functional (Moon,
2004). Bravo described the brands current position as wedged between Ralph
Laurens lifestyle and Guccis fashion (Moon, 2004). Not only are lifestyle and
fashion brands competitors of Burberry, but companies like Target are competitors
as well (Moon, 2004). This is due to people shopping everywhere; high-income
people shopping at discount warehouses and middle-income people shopping at
luxury retailers (Moon, 2004). Since Burberry is continuing to bring out
innovative designs and products partnered with proper advertisements, its
competitive positioning is sustainable over the long term.
2. The case notes that Bravos team has managed to elevate the overall status of
Burberrys brand. How has it managed to accomplish this?
a. First and foremost, Bravo and her team knew that the next five years were going
to be crucial (Moon, 2004). Bravos team set the goal to maintain Burberrys
currency and cachet of the brand across its customer base, whilst entering new
product categories and expanding distribution (Moon, 2004). These goals were

CASE STUDY: Burberry

met with vigor as the team tried to turn the brand around. Bravo brought in a top
management team made up of A-list industry talentpeople who knew what
customers wanted, what price points people wanted, and where the gaps were
(Moon, 2004). Also, some cosmetic changes were made such as changing the
name from Burberrys to Burberry (Moon, 2004). Additionally, Bravo and her
team began attracting a younger customer base with updated product lines and
new price points (Moon, 2004). Adding Burberry Prorsum (a high-profile, highend brand done in a first-class way), allowed Burberry to showcase its new image
to the top industry journalists and get editorial press for its collections (Moon,
2004). Hiring Stella Tenant and Kate Moss as faces of Burberry also
communicated its more modern and fashion-oriented side (Moon, 2004). Bravos
team also reined in many of the older licensing agreements to curb inconsistencies
in price, design, and quality across markets (Moon, 2004). This meant tighter
control over distribution (Moon, 2004). Many decisions have attributed to
Burberrys (and Bravos teams) successful status success within the fashion
industry and hopefully this will not be the end to its surmount.
3. Should Burberry be aggressively transitioning to a more restrained use of a check?
What effect will this decision have on the long-term sustainability of the brand?
a. Yes and no. If Burberry becomes lax with its use of check, then more counterfeit
goods will be produced, thus resulting in a cheapening of the brand. Bravo felt it
was important that the company transition to a more restrained use of the check
(Moon, 2004). After those five years of re-branding by Bravo, the company
continued with its check under cover philosophy and discipline (Moon, 2004).
On the subject of long-term sustainability, Burberry must think of its consumers.

CASE STUDY: Burberry

Since many become invigorated when purchasing a Burberry scarf with the
infamous check pattern, certain merchandise must continue to print the check
pattern. There are some customers who buy Burberry specifically for the check
(Moon, 2004). As mentioned earlier, all classes of people are shopping
everywhere (Moon, 2004). Therefore, Burberry must not rein in too much of its
control over the check or else its customers may not be pleased with the lack of
the visual fulfillment. Realistically, check management is a daily discipline
(Moon, 2004), so Burberry must decide which merchandise need the check and
which do not.
4. Describe Burberrys customer base?
a. Burberry hit a low point when it became overly reliant on a narrow base of core
products and its customer base became heavily concentrated among older males
and Asian tourists (Moon, 2004). Much exclusivity was lost and the Far East
accounted for a disproportionate 75% of sales (Moon, 2004).
5. Who is Burberrys target customer?
a. In repositioning the brand, Bravo and her team decided to reach out to a new
target market while keeping its core customer base. Upon surveying the market,
Bravos team decided to target a younger customer through the use of younger
models, trendy clothing lines (Burberry Prorsum), and updated product lines
(Moon, 2004).
6. How could Burberrys popularity among non-target customers affect the brand?
How should Burberry respond to this popularity?
a. Burberrys popularity among non-target customers affect the brand in that
legitimate and counterfeit items became increasingly popular among urban youth
and hip-hop musicians (Moon, 2004). The younger generations avidly purchased
these garments, resulting in what should be a positive sign regarding brand

CASE STUDY: Burberry

affiliation (Moon, 2004). However, therein lies the concern that this affiliation
could eventually alienate Burberrys core customer (Moon, 2004). In response to
this rise in popularity, Burberry should remain undercover. The more reaction the
public receives from a company, is exciting, especially if the reaction is negative
or unwarranted. Slowly, the younger consumers that are undesired will move onto
the next big designer, and Burberry will find itself safe again.
7. Should Burberry be launching Brit, the new perfume line?
a. Yes. Since this case study was written in 2004 and it is now 2012, there is
evidence that Burberrys perfume Brit was successful. As Burberry has expanded
into many other perfume lines for men and women, Burberry Brit show great
success in the industry. In relation to the point in time the perfume was released, it
couldnt have been a better moment for the company. The iconic check design and
musky scent gave its older customers yet another reason to stay with the brand.
Personally, I have used this perfume and love it. I received many compliments
when I wore it and found that many of my peers also used the same perfume. This
only attributes to Burberry Brits success among its younger consumers.
8. What other product categories should Burberry be entering?
a. There are three categories into which Burberry should consider offering or
expanding. Alcohol, home goods, and bride couture:
i. Partnering with a scotch whiskey brand like the Double Black limited
edition label by Johnny Walker will give its party customers another
option while out drinking. Since Johnny Walker is an already established
alcohol brand with loyal customers, Burberry could take advantage and
open licensing to this product category. Another possible alcoholic product
category would be investing in a vineyard and pushing Burberry wine,
only for the elite. Sponsoring charity events with these alcoholic

CASE STUDY: Burberry

beverages would be a success for the brands image and return on

investment.
ii. In order to appeal to the homier side of Burberry, it could expand its
product category of home goods into more than just cushions, photo
frames, and blankets. Imagine, a house decorated with all Burberry, but
because the check is not obvious, the house refrains from being tasteless.
Curtains with the check pattern on the paneling and sheer material for the
remaining fabric, plates with Burberry stamped on the bottom, flatware
with the check etched into the prongs. These are just a few ideas for home
goods expansion for Burberry.
iii. Bride couture is a huge product category, with proper social media
attention, could amount to enormous achievement. Currently, luxury
brands like Christian Dior, Vera Wang, Oscar de la Renta, dominate the
bridal market. If Burberry were to create a bride couture line all the way
from the dress down to the tiniest details like napkin rings, a lifestyle
brand would be the final result.

CASE STUDY: Burberry

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References

Moon, Y. (2004). Burberry. Harvard Business School. Retrieved from

https://learn.unt.edu/bbcswebdav/pid-338329-dt-content-rid1517325_1/courses/MDSE_4660_001_11235W2/Burberry.pdf