1. BURBERRY
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2. INDEX
The brand…………………………………. Pg. 3
Mission, Vision and Value chart ...……... Pg. 4
Competitors analysis………………………Pg.5
SWOT…………………………………...….Pg.6
PEST and BCG Matrix..…………………..Pg.7
5 forces analysis…………………………..Pg.8
The product and the market………….…..Pg.9
7.1 Contribution margin……………………Pg.9
8. Sources….…………………………………Pg.10
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3. The Brand.
Burberry is a luxury hause from Britain which manufactures clothes and
fashion accssesorie. Was founded by Thomas Burberry in 1856, he opened
his first store in Basingstoke. Its focus was to create outwear that
would expand the boundaries in which a human body can experience, thanks
to this he was very recognized. Burberry has now become a leading clothing
luxury brand with a large global business. Burberry is well known for its
unique British heritage, positioning into luxury arena, integrity of the outerwear
depending on the principles of quality, function and modern classic style.
In 1904 Thomas register the logo brand with a horse, even though the logo
did not appear in the clothes till 1920. In the 70’ Burberry has a great
expansión of all type of products. Rose Marie Bravo was externally hired as
CEO in 1997 and during her years at the helm she staged a turnaround
and put the brand in the runways. Her approach was to focus on the luxury
womenswear market and only license and sell Burberry to luxury retailers
such as Saks and Neiman Marcus.
In the next year the italian Roberto Menichetti asume the creative control of
the brand.
Burberry maintained its commitment to diversity and equal opportunities in
recruitment. Nearly 10,000 associates from over 100 countries are now
employed across all continents, with an age span from 16 to 77
Burberry is a worldwide company and has a structured product offering and
has seen growth across each of these business areas. For 2012/13,
accessories represented 39% of retail/wholesale revenue, womens 33%,
mens 24% and childrens 4%. Burberry turnover is £1,999M (+8%) (March 31
3013 Annual Report).
The team investes in strategic initiatives with longer-term horizons:
 Integrating beauty.
 Transitioning the Japan legacy.
 Reinforcing the supply chain.
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4. MISSION AND VISION STATEMENT
MISSION
Burberry is a luxury brand, which is recognized internationally with a
worldwide distribution network. The mission of the company is to maintain its
integrity and vitality of their brand, at the same time, continue to develop the
business, which remains relevant to ever evolving markets and consumer
tastes.
This mission statement shows that the brand mainly emphasizes on the
integrity, which is maintained from a long time keeping in mind the current
demands and choices of the customers. They also believe in developing the
business in every possible global markets.
VISION
To be the first company who is fully digital and to build a social enterprise.
Value chart
Physical
Organizational
High quality.
Charity.
Quality of services
Regularity
Desirability.
Clear communication.
Integration.
Discipline
Psychological
Ethical
Passion
Devotion.
Creativity
Excellence
Exclusivity.
Trust.
Honesty
Service of society.
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5. Competitors analysis
Gucci
Direct Access to raw materials
Raw materials quality
Customer response time
(personalization of fabrics)
Strenght of Customers’
Partnership
Commercial Push
Balance of man collection
(summer vs winter)
Balance of Ladies’ collection
(summer vs winter)
Market orientation (quickness in
responding to market input)
Product quality
Reliability on declared
composition of fabrics
On time delivery standars
Production (and product)
technology
Manpower (blue collars)
profesional standards
Prada
Ralph
Lauren
Yes
High
Fast
Yes
High
Medium
Yes
High
Fast
Medium
High
High
Storng
Good
Strong
Good
Strong
Good
High
High
Good
Average
Average
Average
High
High
High
High
High
Medium
High
Standard
Medium
Standard
Medium
Standard
High
Standard
High
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6. SWOT
Strength
1. Huge
network
of
retail,
wholesale
and
licensing
channels globally
2. One of the biggest fashion
houses in UK offering clothes,
perfumes, beauty products
etc.
3. Granted Royal Warrants by
Queen Elizabeth II and the
Prince of Wales.
4. One of the most valuable
companies in the world owing
to its legacy
5. Good advertising and brand
presence in Europe specially
England
6. Associations
with
international celebrities to
reach out to the customers
Opportunity
1. After collaboration with other
brands, the brand hopes to
make fashion more affordable.
2. More advertising and
marketing would increase
visibility.
3. Global expansion would help
the brand grow worldwide.
4. More celebrity endorsements .
5. Host more Burberry shows in
different cities.
Weakness
1. Due to Burberry’s positioning
it is very much accessible in
the high-street, and has a low
couture presence.
2. Not accesible to the working
class those who aren´t as
wealthy could also be seen as
a strengh.
Threats
1. Competitions from other big
brands.
2. The customers have a higher
bargaining power and low
switching costs.
3. Not enough stores in smaller
cities.
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7. PEST
Political:
Economic:
Long-term stability.
Double-dip recession.
Taxation.
Works on some emerging
markets.
Current global economy climate.
Low unemployment.
Inflation.
Social:
Technological
Ageing population
Growing population
Income inquality
Social media.
E-commerce / website.
Online promotions.
Digital market / innovate.
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8. BCG Matrix Analysis
 STARS: The trench coat is the star of Burberry´s products since it has
a large market share in a fast growing clothing segment. Indeed, there
is no other outwear clothing that has the prestige of the Trench Coat. It
generates cash, but because the market is geowing rapidly it also
requires investment like revivals to maintain its lead.
 QUESTION MARK: Accessories are Burberry´s question mark.
Indeed, although it stands for 39 porcent of Burberry revenue, this
business unit has a small market shere in a high growth segment. It
requires resources to grow and come up with an ït bag¨to achieve the
star status.
 CASH COW: Check accessories sush as scarces are Burberry´s cash
cows. Indeed, no other fashion brand have scarf, which is as highly
recognisable, and that is such an entry-level product in a mature, slow
growing segment. It requires Little investment and generates cash that
has been used to develop othes product lines like clothing.
 DOGS: Licences products like eyewear, tablecloths and so on have a
small market share in a mature industry. Although, it doesn´t require
substantial cash, but it ties up capital that could better be deployed
elsewhere. Therefore, it should be liquidate.
RELATIVE MARKET SHERE
20
High
MARKET GROWTH
Low
0
10
High
RELATIVE MARKET SHERE
Low 0.1
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9. 5 Force analysis
New enfants.
Capital
investment, e
conomies
scale.
Consumers.
Buyer power
is not strong
due to the
substitution.
Competitors
Gucci, Ralph
Lauren and
Prada
Suppliers.
Distribution
hub changed
Subtitues.
Competitors
apply.
The product and the market
The iconic trench, is the core and key growth driver of Burberry’s
apparel business. Non-apparel remains a key driver of growth, these
are:
Large leather goods
Men’s accessories
Shoes
Burberry works on a very high quality of materials, they are a value
pricing market
Contribution Margin
Variable cost
£ 351 million
-
Net sales
Contribution margin
£1,280million
£ 929 million
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10. Sources.
Burberry annual report 2012/2013
http://www.iseg.utl.pt/aula/cad602/Analise_Burberry_200403.pdf
12/01/14 12:52pm
Date of publication: 3th march 2004
http://www.vogue.es/moda/modapedia/marcas/burberry/116
8/01/2014 8:02 pm
date of publication: Is not expecific.
http://bianirys.blogspot.it/2012/09/chapter-1-history-and-missionstatement.html
8/01/2014 8:10 pm
Date of publication: 5th September 2012
http://burberrymarketing100.blogspot.it/2013/02/ch-1-overview-of-marketingbrief.html
8/01/2014 8:30 pm
Date of publication: 5th February 2013
http://www.slideshare.net/MadhuMalesh/strategies-at-burberry
9/01/2014 11:43 pm
Date of publication: 7th November 2011
http://www.youtube.com/watch?v=tpjMWNF9JqY
11-01-2014 13:23 pm
http://prezi.com/explore/search/?search=burberry#search=burberry&reusable
=false&page=1&users=less
12/01/2014 7:09pm
Date of publication: 8 January 2014
http://www.burberryplc.com/investor_relations/results_and_presentations/inter
im_results_centre
21th Jan 2014 2:57pm
http://www.slideshare.net/adeptfouralex/innovative-marketingcommunications-at-burberry?from_search=6
21/01/2014 3:14pm
Date of publication: 30/04/2012
http://www.wikinvest.com/stock/Burberry_Group_PLC_(LON:BRBY)
21/01/2014 4:02
Date of publication: 21/01/2014, 2:45 PM GMT
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