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 Burberrys founder : Thomas Burberry, 21-years-old,

opened a drapers shop

Create Trench Coat that made from gabardine Burberrys trench coat was chosen to be an official coat
for British Army in World War I

1920s; Burberry check pattern became a register

trademark. They introduced as a lining to its signature trench coat

Make Burberry as a symbol of both luxury and durability 1955; Great Universal Stores Plc. (GUS) a British company
had bought Burberry

Burberry had lost much of its exclusivity because the

wholesalers sold to unauthorized distributors

BEFORE o Invented gabardine; became anyones choice especially people who had passion venture into extreme conditions o Official coat for British Army in World War 1 o This Burberry check pattern became a registered trademark. Politicians, celebrities, famous adventurous also British royalty wear Burberry o Japan discovered brands iconic check, GSU agreed to license the brand in Japan, became common brand, particularly in Asia o The brand skewed to an older customer base especially older males and Asian tourists

AFTER o Bravos goal; transform Burberry from a tired outerwear manufacturer into a luxury lifestyle brand o Introduced packaging, changed companys name & contemporary logo o Attract younger customer, maintain Burberrys core customer o Hired a new design team & came out with the new product line o Divide into three categories which are womenswear, menswear and accessories.

oCore customer of Burberry consist of

people who loved to wear something classic yet contemporary, luxury oA waterproof and breathable fabric; it is suitable for anyone who loves venturing into extreme conditions oBurberrys first introduced as official coat of the British Army in World War I oAfter introduced check pattern; more celebrities, politicians, famous adventurous seen in Burberrys check oKing Edward VIII is one of the Burberry wearer oBurberry brand became a license. customer concentrated among older males and Asian tourists oAttract younger customer but still remain the customers base oProcess of developing its childernswear line

oGoal; transform Burberry from a tired outwear

manufacturer into a luxury lifestyle brand oAttract younger customer oThey want to create a following and loyal base customer oReach the customer, they can continue to broaden their brand while being profitable oBurberry began to find out that their brand is becoming popular in the hip-hop and urban youth community oNot only going to attract female young customer, but male customer too oHired new design team, come out with a fresh look oBecause they have to study the lifestyle of the youngest in every country

5 Strengths of the current brand positioning strategy:

Leading strong brands Channel expertise Global portfolio Leading employer in luxury and functional

brands
Multi category competency

5 Strengths of the current brand positioning strategy: 1) Leading strong brands

oStrong brand will exists in the mind of the consumer oSum of thoughts and feelings about a particular company or
product

oBurberry brand values constantly evolve to suit changing

market conditions

oBurberry has iconic of trench coat which linked to British

heritage and it is unique positioning within the luxury brand

oThe adoption by:

; Humphey Bogart and Ingrid Bergman in Casablanca ; Peter Sellers in The Pink Panther

; Audrey Hepburn in Breakfast at Tiffanys

oTrench coats have been expanding their consumers by famous

aviators, balloonists, and expeditionists seeking to conquer the South Pole and Everest

2) Global portfolio

oBurberry has been expanding their brand portfolio with a label

called Prorsum
; Burberrys new positioning in the luxury market ; Hand-tailored from innovative fabrics ; Have a good quality ; Featured with haute couture ; Provides a high profile and high end brand ; Was placed in the best stores in the world

; Successfully and honoured as British Classic Design Collection of the year during its first catwalk show (London Fashion Week) in September 1998

oBurberry also famous for its trademark check o In 1920s, the Burberry check pattern was introduced with a
camel, black, red, and white plaid design

oThe celebrities, well known adventures, and politicians were

often seen in the Burberry check

oThe use the check can be seen even in everywhere such as on

socks, scarves, shoes, hats, coats, pants, jackets, umbrellas, eyeglass cases, and others

oBurberry trademark check was bring some soul to the consumer oThere was about 25% of all companys revenue was derived from
prominent check product

3) Multi category competency

oThree primary collections :

; Womenswear ; Menswear ; Non apparel which are accessories Womenswear

oWomens apparel styles for each season oOffer about 450 to 500 womens apparel in autumn, winter,
spring, and summer season.

oBurberry womens apparel stands for sporty, functionality, and

protection ; Eg - Casual wear, swimwear, and others

Menswear

oThe company offered 330 to 350 styles per season including

tailored suits, raincoats, trousers, and shirts

oThe collection had been updated to include a wider variety of

fashion-influenced apparel Accessories

oSoft accessories - scarves, shawls, and ties oHard accessories - handbags, small leather goods (belts and
wallets), womens shoes, luggage, and others

oBurberry had a wide range of price points made them able to

attract potential new customer

oSo, with multi category of products, Burberry can maintain their

market and revenue growth for long term target as they also can expand their targeted consumer in the market

4)Channel expertise oThrough licensing and wholesale oLicensing - Burberry works with licensees, a company who had the right to design, manufacture, and distribute products under the Burberrys name when Burberry require specific expertise to produce some products that was outside of Burberrys core skills such as fragrances, eyewear, and childrenswear - The licensees received 10% royalties of Burberry revenue. - Help Burberry to expand their product and fulfil the needs of the consumer - They are not only concentrate to their main products in apparel but also try to enter and build a new product even they are lack the expertise to produce more products. - This is one of key that Burberry success to sustain their growth in market

Wholesale

oBurberry had 3,162 wholesale doors worldwide, including; - 434 departments stores - 2,728 specialty stores - 132 company-owned stores, including newly opened flagship
stores in London, Barcelona, and New York City.

The stores were designed to display the full product range, showcase the vision, and act as a testing ground for new concepts and designs brand message of Burberry

- Burberry stores are among the best tool to communicate the full

5)The leading employer in luxury and functional brands

oRestructured the strategies and updated the companys product

line

oBurberry core consumer consist of politicians, well known

adventures, and the celebrities that they were often seen in the Burberry check

oBurberry also decided to attract younger customer oBurberry brand increasingly became a luxury brands that was
aspirational, stylish, and innovative

oRepresent their product as accessible luxury oDistinguishes Burberry with other product is the functionality of
the brands ; Eg: A trench coat is not known as luxury brand but also give the functionality to the consumer that keep consumer warm and dry.

2 major product categories of Burberry current product mix: 1)Menswear

o o o o o

They have tailored suits, raincoats, trousers and shirts Accessible luxury and one of the fashions influenced apparel, they will deals at least 300-350 styles per season Use the iconic Burberry plaid in a more understand manner Young generations, they want a young guy looks hot while wearing Burberry clothes on their body The older generations, Burberrys team want they to appeal the guy who wants great quality and modern and yet still looks classic

oBurberrys target a broad range of customer for menswear oThey want to reach the different generations. oThis clearly shows when the menswear gained sales every
year

oThe profit of sales still increase 2000 (73.8mil), 2001

(142.4mil), 2002 (149.4mil) and 2003 (162.8mil).

2)Accessories

oDivided into two :

-Soft accessories include; scarves, shawls
-Hard accessories; more to handbags, luggage, womens shoes, umbrellas, eyewear, timepieces and small leather goods for instance belts and wallets.

oSince the price is affordable, and theres no size for

specific accessories and they were less fashion-oriented yet less risky so its easy for to attract new customers

oHead of accessories, Pamela Harper said, Accessories are

a piece of the dream

oSales of Burberrys accessories are quite encouraging

compared between year 1999 and 2003

o The sales of their core accessories are handbags from 36%

to 49%, small leather goods from 16% to 18% and 7% to 8% for silks, accept scarves / mufflers dropped from 41% to 25%.

Strategies that the company may consider to adopt: a) Product extension (eg: footwear, fragrance, and childrenswear) i) Expand, maintaining and add value to the product - Elevate the value of their product extension by; : Maintain a high quality : Create the uniqueness of the product : Build a creative of packaging and labelling - Consumer can distinguish the uniqueness of the product

FOOTWEAR
Create footwear for all level of age

Different colour

Affordable price

Maintain a high quality

oCan attract more target consumer from kids, teenager, and

adults

oThey feel like they are part of the brand experience

FRAGRANCE

oNeed to deliver the uniqueness of the product to consumer

which able to change the consumers mind to accept their product extension like their strategy to create a new perfume line with the trademark check oThey need to maintain their trademark check oThis can considered as one of a strategy of Burberry to expand the product line indirectly as a key for the companys growth plan because the product with Burberry check generate the profit for Burberry

CHILDRENSWEAR Newborn Kids

oThey are not only focus for womenswear and menswear

collection but expand the product line to childrenswear

oThis move would be the best move for the Burberry brand o Loyal customers of Burberry would want their children to follow
suit and dress in their favourite fashions, and other consumers would want the luxury of Burberry for their children

ii) Upgrading the wholesale stores

o Burberry can allocate the product extension in

many stores together with their core product

oThis strategy can help a company to introduce

and promote the product extension to the customer

oFurthermore, Burberry needs to enhance the

service of their store

oThis is important to be industry leading standards

of customer services in Burberrys store

oEg: Burberry can open the service customer counter ; as one of

initiative for Burberry to discuss the specific requirements or questions of customer.

oBy enhancing the service of store, the customer would feel

comfortable to get information regarding on Burberry product especially the product extension of Burberry

oWhen Burberry builds the best wholesale stores in the world, it

determines the availability of the product

oIt is part of product placement and shows how Burberry is going

to make the product available to the customer and how intense the brands exposure and greater availability to consumer markets.

b) The existence of non-target customers i) Build a loyal product base

oBy apply and keep the luxury image that they create for core
customer to non target customer

oBurberry needs to reposition the brand to attract non target

customer in order to sustain the market growth

oThe younger is one of example of non target customer for

Burberry

oBurberry still can create and build a product that offer a luxury
image of Burberry product to non target customer that offer with aspirational, functional, high quality, and luxury.

o Eg: Burberry needs to expand their product extension like

fragrance to the market and change the fragrance line to new customer

o This type of product is less expensive rather than their core

product and the non target customers will afford to own one of the Burberry products

oBesides, the fragrance line can add not only Burberry Brit for
women but include mens line and teenager.

oThis can help Burberry to expand the consumer in the market,

means they should not offer one product to one gender and same level of age only

oSince the non target customer able to buy the Burberry fragrance
that offer with affordable price, high quality, attraction and different scents and designs, the non target customer will give their brand loyalty to the Burberry product since it fulfil their desires.

o With all the criteria of the Burberry product, they are not only
offer the product as a luxury brand to core customer, but it helps to attract the non target customer to enter into Burberry market

ii) Organize a promotion strategy

oTo attract the non target customers while retaining their core
customer

o Without decreasing the price of the Burberry product, Burberry

still can maintain their price strategy by give the discount for the product

oBurberry get to maintain their image as luxury brands rather than

decrease the product that will give a negative impact and reduce the quality of Burberry brands

o It is a good idea for Burberry to let the non target customer

enter to Burberry market as it shows that Burberry campaign to revamp the company is working

c. The extensiveness use of the check (logo) i) Advertising

Emphasize on advertising to promote the use of the check for Burberry product Through public relations using various newspaper, magazines, and the best way is using billboards at selective places The check is history of Burberry; they need continuously expand the core values and drive consistently the use of check Successfully revamp the companys product line and next, revenue of Burberry had grown from about 225 million in fiscal 2000 to almost 600 million in fiscal 2003.

They need contribute more and great idea to describe the use of
check and the uniqueness of this trademark

Shows the differences to another product in the market Burberry should try in different ways to introduce the uniqueness
of their product for the use of check; that enable them to expose and deliver the products to the customer

The use of check brings some soul to the product so the customer
interested in getting the collection with Burberry check.

The use of check not only can be seen with trench coat, but the
check has appeared everywhere such as on socks, scarves, shoes, hats, jackets, and pants

Contributes significant profit for Burberry but it gives a very

amazing impact for Burberry

ii) Change the strategy to redesign the uniqueness of the product

Redesign the product and produce limited design Change the design of the product with intense colour, a cute,
sweet and elegance design with variety of choice for customer changes of world fashion fashion and market.

The needs and desire of customer will keep changing based on Build their product with a new and fresh idea based on current

d) Future product positioning -As a consumer's view of a product as compared to its competitors -Positioning helps establish product identity within the eyes of the customer i) Conducting the online survey Helps Burberry to get a feedback and any comment or recommendation for the current or future Burberry product Able to get the information from customer To get the worldwide response. Will success to revamp the strategy to create the other product line in order to expand their targeted customer Able to know the strength and the weaknesses of their product So that they can create another strategy to improve the product based on needs and desire of customer

ii)Sustained in three pillars which are:

product

design

communication

Design
-Produce the variety of product with the attractive of design for all the level of age and gender.

Product
-Three primary collections : womenswear, menswear, and accessories

-Next, they expand the product line into cosmetics, fragrance, and childrenswear

-Famous for their trademark check ;As a unique symbol

;When the customer buy the product with the trademark check, the customer will know that is the label or the trademark of Burberry
;This strategy help Burberry to expand the market by attract non target customer especially the youth, hip hop musicians while remaining the core customers in the market

 Communication
-Company had 3,162 wholesale doors worldwide

;department stores ;
;specialty stores ; flagship stores in London, Barcelona, and New York City

-By maintaining a worldwide wholesale and store around the world, Burberry can ensure that the customer will able to get their product in everywhere for each country as well.

oBurberry is a unique brand because it has a great history

and British heritage

oBurberry has positioned its brand in the minds of consumer

to be functional luxury

oWhile retaining Burberry core customers, they were

expanded to youth and hip-hop musician customers

oThis strategy has been to develop and expand Burberry

targeted customer

oThis is shows that Burberry was success to restructure the

companys product line

oBurberry successfully revamp the companys product line oRevenue of Burberry had grown from about 225 million in
fiscal 2000 to almost 600 million in fiscal 2003