Luxury Good and Burberry Essay Example for Free

Luxury Good and Burberry Essay3. 2. 1Brand even upeousness Earning the royal seal of approval and outfitting the Royal Army placed Burberry on the map as the original British sumptuousness stigmatise but somewhere along the line, it became the raincoat dirt cognize more for outfitting stuffy elder statesmen than the cloth of choice for the glamorous rich and famous. Burberry revamped its brand image, hiring hot designers who took the signature plaid from raincoats to two-piece suits. Recent ads featuring British fashion icons like Kate Moss and Stella Tennant embody the essence of the younkerful Burberry, word-painting a fresh edginess merged with a classic British elitism. Though they faced modify loyal customers, Burberry balanced innovation with tradition to create an authentic, yet altogether more contemporary luxury offering. Since its reinvention, Burberrys equity has whole increased, both in awareness and in meaning, that meaning now being germane(predicate) to a much broader audience. 3. 2. 2Brand Position Burberry under Bravo warehousinged as a distinctive luxury brand with a clear corporate outline aiming to broaden its appeal to new customers while retaining its traditional clientele. The reposition included A luxuriouslyly distinctive advertising campaign.A change of name from Burberrys to Burberry A robust in house design team and the launch of Prorsum Closure of unprofitable and non-core retail break ins in europium Opening a new flagship store in London- New Bond street Elimination of remote wholesale accounts including the termination of distribution to known parallel traders Upgrading of the supranational Burberry London product range, including the restructuring of its sourcing and pricing, and the elimination of uncalled-for product variation. 3. 2. 3Competition Burberry competitors are primarily in the Apparel Accessories Retail industry.Burberry withal competes in the Cosmetics, Beauty confer Perfume Retail, and Apparel sectors. Challenges facing Burberry today include increasing competition in the luxury goods sector. Companies much(prenominal) as Barbour are making progress in areas dominant by Burberry. As time continues the new companies of today are becoming brands of tomorrow and the luxury grocery is becoming highly competitive. Principal Competitors In competition with Burberry at that place are a lot of companies like House of Fraser plc Polo Ralph Lauren Corporation, Coach, Gucci. Burberry is wedged betwixt life style represented by Ralph Lauren and fashion represented by Gucci.Burrberry has effectively addressed competition by placing itself guardedly so as to avoid result competition but complicating the issue was the fact that burberrys brand positioning placed it in indirect competition with both lifestyle brands and fashion brands. 3. 2. 4integrated market conduct People use different adds for different reasons. Internet users bought products from a retailers of fline store after viewing them on the sellers Website. Additionally, experience tapes that television support for a direct marketing campaign can improve direct marketing response rates significantly.Each channel influences the others. Burberry operates e-commerce and other channels in the United States and across 26 European countries. Multiple channels play into a unified user experience, if channels fail to offer a unified voice, look, and feel, Burberry may take down or frustrate customers. A multichannel user expects an integrated experience across all touch points with a brand or information source, and delivering on this expectation is the challenge for Burberry. This situation is more complicated by the presence of Burberry all around the globe. Till now Burberry effectively addressed integrated market channels.3. 2. 5Price strategy Prices had been raised to reflect the Burberrys new brand positioning. Serving a niche market sandwiched between labels like Polo Ralph Laur en and Giorgio Armani in apparels, and between Coach and Gucci in accessories. Burberry offered lower-priced labels for younger and fashion-conscious customer. At high end, Burberry offered the label Prorsum as a way to reinforce Burberrys positioning in the luxury brand. 3. 2. 6Retailing Burberrys retail distribution is by means of DOS (comprising flagship and regular price stores), concession, designer outlets and factory shops.The flagship store are important since they act as a showcase for the brand creating a sense of theater by means of Burberry can promote a lifestyle and its product ranges . The store are also used to trial new products and concepts, and they carry scoop shovel lines. Burberry flagship stores are normally require upwards of 10,000 square feet of space and are specifically located in exclusive areas of key cities around the world like London, Tokyo , Barcelona , new York etc. A department of its repositioning a number of stores were closed , renovated or relocated according to image and performance.Burberry continues to pop off from a relatively static, traditional, wholesale structure to a more dynamic, retail culture and mindset. Burberry became more consumer-centric, responsive organization. This move positively impacted on directly operated stores, franchise partners, wholesale customers and licensing partners worldwide. 3. 2. 7Wholesaling The Wholesale channel includes independent retailers. The wholesale customer include leading department stores and specialty store , including duty free retailers and free stand up Burberry store operated by wholesale customers.Burberry selects wholesale customer on the basis of reputation and market positioning. It also works with wholesale customers on a store by store basis to ensure the right product mix. Burberry effectively came out of parallel trading and deteriorated quality in wholesaling under the leadership of Bravo. 3. 2. 8Logistics by means of concentration on operational acti vities, such as successor, planning, merchandising, fixturing and visual, Burberry continues to drive store productivity. In addition, Burberry has developed and piloted a sales and service programme which will be implemented globally in retail stores.3. 2. 9 publicizing Burberry believes that its brisk marketing and management of the brand has been critical to its success. Marketing initiative like advertising and fashion shows and tower placements are intended to generate editorial coverage and achieve a high compose and reconciled visibility in in domestic and international markets. The advertising has articulate the brand values through innovative visuals that have helped formulate a merchandise strategy and provided inspiration for what Burberry could stand for in a contemporary market.In common with closely luxury brands where average advertising spend is as high as 10 percentage of sale, Burberry sees advertising as key in strengthening its brand and image. In 1998 the c ompany began its successful advertising strategy to re-launch and reposition its brand. It hired advertising agency might Baron and celebrity photographer Mario Testino, whose work had appeared in Vogue, The face, and Vanity Fair, using model Kate moss and Stella Tennant, among others, to inject contemporary mundanity and excitement into what had become a tired traditional brand.Mario Testino helped to visualize the brand. Kate moss has arguably been the most high profile face associated with the campaign, although other celebrities have been involved in the publicity. The powerful black and white images of Moss in bikini were key in capturing the attention and imagination of public. 3. 2. 10Direct marketing Burberry uses the following direct marketing channels. 1. Burberry collects certain own(prenominal) information from customer for example, name, postal address, phone numbers, e-mail addresses.They use this information to manage customers account with them and to provide you with information about our products. Burberry sometimes ask for other details, for example product sizing and category preferences, age and any special dates (such as birthday and anniversary) which will be used to arouse our service. 2. Email updates and news on Burberry collections and on-line exclusives 3. Wishlist creation for Burberry products. Burberry is effectively utilizing above channales but they can blow up more in this are using catalogue, telemarketing and directTV. 3. 2.11Product strategy From a simple raincoat to a global brand, Burberry has become one of the worlds most successful luxury brands today for men, women, and children, encompassing not only outerwear, but clothing, fragrances, accessories and items for the home. Today Burberry has become an icon. It is a brand with a distinctive British sensibility, strong international recognition and differentiating brand values that resonate across a multi-generational and dual-gender audience. Burberry revitalized its brand by growing the long term effective product strategy.The steps Burberry took to revitalize itself are Consistent projection of Burberrys distinctive luxury message across all mediums is a core objective. Celebrity Endorsement Effective Advertising More Selective Distribution Placement of Advertisement in Exclusive Channels e. g. Fashion show Market penetration and invest in product development Flow oftenness Increasing the frequency of flow of new products to Burberrys stores. Replenishment Developing a more extensive and responsive replenishment programme in all product divisions, while evolving in-store visual merchandising and processes to support.Continue to represent British culture, history and tradition 3. 2. 12International marketing Asia represents significant growth opportunities for Burberry as it does for other luxary brands. Japan is the Burberrys most advance consumer market in asia and its initial point of entry into the region having been there operating t here since 1920 brands. The core Burberry mens and womens lines have been extended to more fashion forward youth oriented collections Blue label for women and Black Label for men both aimed at the under-25 age aggroup. This group has proved particularly receptive to the Prorsum international runway collection.Outside the japan, Burberry has consolidated its distribution in Hong Kong, capital of Singapore and korea. It has new childrens wear business in korea, has opened new prestige stores in hong-kong and undertaken new market initiatives in Singapore Upgrading store image. The Group continues to renovate high profile locations worldwide with a brighter, modern aesthetic and more efficient and productive design concept. In 2008/09, Burberry achieved a 50% increase in revenue from key emerging economies including China, the affection vitamin E, Russia and India. These markets now contribute 9% of sales, up from 6% in 2007/08.Historically, Burberry has operated in these markets t hrough local partners who possess the specific knowledge and resources required to develop the brand in their respective regions. In September 2008, Burberry entered a joint venture with its main partner in the Middle East to manage retail and wholesale operations in certain key markets. Since inception, Burberry Middle East has opened four stores, including two standalone childrenswear stores. Burberry continues to open stores with franchise partners in other markets, with a net 8 stores opening last year, including a net two in China and the first significant stores in India.