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Akriti - 12407 Maya - 12439 Nilotpal - 12234 Rahul - 12347 Uday - 12471 1

1856 - 2006
1. 1856 - Established by Thomas Burberry at the age of 21.

2. 1901 - The Burberry Equestrian Knight Logo was developed containing the Latin word "Prorsum", meaning forwards.
3. 1914 - Chosen as the official coat of the British Army at World War 2. 4. 1920- Introduced the famous check pattern . 5. 1955 - Great Universal Stores Plc. (GUS) brought Burberry.

6. 1970 - GUS licensed the brand to Mitsui and Sanyo, Japan .

7. 2002 IPO in London Stock Exchange 8. 2006 Began selling online.
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Mid 1990 crisis

1. Became licensed across a range of categories. Exercised limited control over licenses.

2.

Price, design and quality of products varied across local markets.

Parallel trading wholesalers sold to unauthorized distributors who then sold it further without preserving the brand image.

3.

4.

Brand dilution, loss of exclusivity. Far East Asia accounted for 75% of disproportionate sales. 37million pound decrease in sales.
Overly reliant on narrow base of core products outerwear and umbrellas Customer bases was heavily concentrated among older males and Asian tourists. Face strategic and structural issues and lacked both cohesive vision and discipline.
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5.

6.

7.
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Mid 1990 crisis

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Rose Era 1997-05

1. Rose Marie Bravo became CEO in1997. She had 25 years of retail experience and had occupied leadership positions in several major fashion businesses. Initiated a radical reform of the British classic brand and improvements of the company structure. 2002 Time magazine fashion CEO of the year. 2003 Award of the Council of Fashion Designers of America. Wall Street Journal listed her in its 2004 top 50 hall of fame. Fortune Magazine ranked her #13 in its 2004 and 2005 lists of "The 50 most Powerful Women in Business" outside the US. 2005 - Bravo retired as a CEO and became vice executive of Burberry
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2.

3.

4.

5.

6.
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Rose Era 1997-05

1. Became licensed across a range of categories. Exercised limited control over licenses.

2.

Price, design and quality of products varied across local markets.

Parallel trading wholesalers sold to unauthorized distributors who then sold it further without preserving the brand image.

3.

4.

Brand dilution, loss of exclusivity. Far East Asia accounted for 75% of disproportionate sales.
Overly reliant on narrow base of core products outerwear and umbrellas

5.

6.

Customer bases was heavily concentrated among older males and Asian tourists.
Face strategic and structural issues and lacked both cohesive vision and discipline.
6

7.

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The Team

Stanley Tucker, Fashion Director, Saks

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Christopher Bailey, Designer Womanswear, Gucci

Mario Testino, Fasion Photographer

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Brand Repositioning
1. Reposition the brand to attract younger customers. 2. Retain older customers.

3. Target to become one of the top luxury fashion brands.

4. New contemporary logo. 5. Identified the gap between Burberry and the top luxury brands such as Armani and Polo in apparel and, Coach and Gucci in accessories. 6. Position Burberry within the gaps. 7. Reposition but dont be either too classical or too much into cutting edge fashion. 8. Burberry should represent accessible luxury. 9. POD Aspirational but functional. Trench coat keeps you warm and dry.
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New product line

1. Number of SKU reduced from 100,000 to 24,000. 2. Continuity products and fashion oriented products. 3. Womanswear - Introduced 450 500 apparel style each season. Menswear - Introduced 330- 350 styles per season. 4. Soft accessories Scarves, shawls, ties etc. Hard accessories Handbags, shoes, umbrellas, eyewear, timepieces, etc. 5. Wide range of prices made them accessible at entry points for potential new customers. 6. Non-licensed products Burberry controlled sourcing, manufacturing and distribution. 7. Licensed products about 10% of revenue in royalties.
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Expanding brand portfolio

1. Burberry London core company label. Low priced label designed to appeal to the younger customer. 2. Thomas Burberry Spain and Portugal. 3. Burberry Blue Japanese women. 4. Burberry Black Japanese men. 5. Prorsum High profile, high end luxury brand to appear alongside the fashion greats. 6. Limited distribution of Prorsum to keep it exclusive for customers truly interested in fashion. 7. Burberry Brit perfume for women in their 30s. 8. Burberry Sport
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Expanding brand portfolio

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Brand element Check

1. Restrain in the use of the check to maintain exclusivity. 2. 40% of apparel did not feature the check. 3. 60-70% of sales in accessories featured the check.

4. 25% of all company revenue was derieved from check products.

5. Some customers brought Burberry specifically for the check. 6. Check management and check under cover philosophy.

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Advertisement

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Advertisement

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Growth
Year Opr. Profit (mil ) Opr. Profit %
1. 2002 worldwide 3162 wholesale doors. 2. 34 departmental stores. 1. 132 specialty stores. 2. Gross margin were 56% in 2002 compared to 47% in 2000. 3. Expanded greatly on the US market. 4. Bravo era - sales doubled from 470 million to 1 billion USD. 5. According to Business Weekly, Burberry is the 98th most valuable brand in the world 6. Almost sales distribution across categories. 7. Biggest markets Japan and Spain
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2000 2001
2002 2003

18.5 65.1
85.4 110.3

9.2 15.2
17.1 18.6

Category (2003) Menswear Womenswear Acessories

% of Sales 33.3 27.4 28.6

Challenges ahead
1. How to create products to meet the lifestyles of diverse customers in terms of age, location etc. 2. Maintain the current success, not be a victim of its own success. 3. Bravo The brand has not yet reached its full potential. Take it to the next level. 4. Brand management in non-target customers such as the hip-hop community.

Angela Ahrendts, CEO 2005 - present

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Learning
1. How a 150-year-old stereo typed brand has transformed itself into a fashion empire. 2. Brand can adapt to the changing market without sacrificing its core identity (product, value, brand elements, British culture and history). 3. Hire top in the industry people. 4. Celebrity endorsement. 5. Selective distribution. 6. Balance between accessibility and status. 7. New product development. 8. Investment in high potential market Japan, Spain, Portugal,
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Thank You

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