TIMELESS
BRITISH
ELEGANCE

AUTHENTIC
CLASSIC
LOOK

KNIGHT
CHECKER
TRENCH COAT

Who else but...

Competitive Environment
● INDUSTRY: Apparel, Accessories, and Luxury Goods
○ Unattainable - Burberry Prorsum
○ Intermediate - Burberry London
○ Accessible - Burberry Brit
● MARKET STRUCTURE: Monopolistic Competition
● KEY COMPETITORS

Market Share
2013
Market Share
2012
Market Share
2011
Market Share
2010
Market Share
2009
LVMH 40.46% 42.13% 40.93% 41.90% 41.36%
Dior 39.71% 40.59% 42.60% 43.56% 43.03%
Ralph Lauren 7.21% 7.80% 7.54% 7.66% 8.49%
Prada 4.91% 3.80% 3.73% 3.33% 3.56%
Burberry 3.55% 3.38% 3.21% 1.78% 1.62%
Michael Kors 2.99% 0.86% 0.59% 0.41% 0.32%
Salvatore
Ferragamo
1.18% 1.46% 1.40% 1.37% 1.62%
Market Shares Capital iQ

Porter’s Five Forces

● True competitors have to compete with intangible assets
of the brand
● Brand Heritage
● High Quality/High Volume
● High-end Retail Space
● Most new entrants will not be true competitors
Threat of New Entrants

● Relatively limited
● Purchases are based on intangible value
● Time-sale sites like Gilt and Myhabit are increasing
buyer power
● Due to relatively uniform product performance there is
an inverse relationship between brand loyalty and buyer
power
Bargaining Power of Buyers

● Extremely Limited
● Significant competition among textile manufacturers in
Southeast Asia
● Low cost of input materials
● Low cost of labor
● China is protecting cotton prices
Bargaining Power of Suppliers

● Largest threat is other brands in the category of
accessible luxury
● Counterfeit goods may negatively impact brand integrity
● Accessible luxury goods may take a greater hit during
economic downturns
Threat of Substitute Products or
Services

● Burberry competes mainly within the category of
Accessible Luxury, as well as Intermediate and
Unattainable Luxury
● Other brands in this category include Salvatore
Ferragamo, Prada, Louis Vuitton, Ralph Lauren,
Christian Dior, and Michael Kors
Rivalry Among Existing
Competitors

www.burberryplc.com

Changes Coming
● Continuing growth after the worldwide economic slowdown in 2009
● Industry growth in China slowing down
○ 2% growth in 2013, was 7% in 2012
○ government regulations → anti consumption, more savings
○ shift from mainland shopping to online and/or abroad shopping
● Increase in labor wages (especially in China)
● Baby Boomers - to appeal to younger generations

www.qz.com

Company Imperatives
•£259.2 million profit ($428,000,000) in 2013
•50 new stores since 2009
•Strategic expansion
- Seek other manufacturing opportunities, possibility Mexico
-Improving global economy and increases in labor cost→ Price
Increase
- Focus on their digital leadership to capture the younger generations

Business Environment
● The Luxury Goods Industry - Exposed to a large set of external
factors.
● The industry suffered as the global recession hit over 2008 and 2009.
● Placing greater focus on the Asian Market!
● “Burberry is constantly leveraging the energy in its creative thinking
culture.” (www.burberryplc.com)
○ The company commits to phasing out all hazardous chemicals from
its supply chain by January 1, 2020.

STP
www.burberryplc.com

www.burberryplc.com

Marketing Mix
● Product
○ Gabardine - patented waterproof, anti-wrinkle twill
○ Patented Prorsum knight logo and check pattern
● Price
○ High end
○ Trench coat retails around $2,000
● Promotion
○ Digital Leader
● Place
○ Retail

www.burberryplc.com

Marketing
Performance
•Importance of brand image
•Social Media success
-17 million Facebook followers
•71% of revenue is from retail
www.prc.com

Action Steps
● Continue to invest in new and emerging
markets
● Produce a mobile application for
○ artofthetrench.com → increase awareness
○ burberry.com → increase sales
● Link all digital marketing tools together → easier sharing across all
platforms
● Seasonal new product development and product diversification
○ reach and grow in new markets
○ retain customer loyalty

Integration and Organization
● Market share has been constantly growing since 2009.
● Burberry operates in four regions.
○ Asia Pacific: 39% of retail/ wholesale revenue.
○ Europe: 30%
○ Americas: 25%
○ Others: 6%
● Expanding digital market.
○ Get closer to the customers and capture the younger generations
○ Save costs by looking into alternative manufacturing locations
○ Extend the brand’s online e-marketing to maintain a strong digital presence
■ 17 million likes on Facebook
■ 2.8 million followers on Twitter
■ 8 million viewers on YouTube

www.burberryplc.com

Thank you!
At this time, we will open
the floor for any questions.

Sources
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