Burberry Reinvention

VIRGINIA MACDONELL

DERRICKA CALHOUN

MADDIE WALLACE

ALEX WANG

FASM 410

CO NTE N TS 01

BURBE R RY

05

Histor y of the Brand

02

FINANC I A LS

CHAN N E LS

06

ANALYSI S Burberr y ’s S ales Trends

ADVANTAGES C ompetitors Successes

TA RG E T CO N S U M E RS Ages & Preferences

07

S ales by Channel

04

09

D emographics VALs Profiles

S ales, Profit , and Stocks 5 years & Past Quar ters YoY

03

P E RS O N AS

P E RCE PT UA L M A P 10 Main C ompetitors

08

COMPETITORS Price C omparatives

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

est . 18 56

HISTORY OF BURBERRY •

Founded in 1856

•

Thomas Burberry at 21 yrs old

•

Provided Protection from British Weather aka “Weatherproof”

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

HISTORY OF BURBERRY

1879

1920s

2002

2011

Burberr y invents Gabardine

Burberr y Check becomes a registered trademark

Burberr y is a Public Traded company in the London stock exchange

Retail becomes main source of distribution

2018 Riccardo Tisci becomes Chief Creative Officer New logo and monogram is created with Peter S aville

1914 -1918

1990

2010

2016

Burberr y Trench Coat is invented during W WI

“Bu rberr y is granted a royal warrant

by HRH The Prince of Wales as an outfitter ”

First to Livestream a fashion show

D ow J ones Sustainabilit y Index recognised as a leader in ‘Textile, Apparel and Luxur y Goods

First luxur y brand to join the ethical trading initiative

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

F I N ANC IALS

BU R BE R RY

Burberry’s Revenue from 2016 to 2020 ( in millions )

FINANCIALS

$3,700.00

PAST FIVE YEARS

$3,576 M

$3,600.00

$3,517 M

•

Burberry was the seventh most valuable luxury brand in the world and the only British company in the top 10 ranking as of 2018

KEY METRICS IN 2020

$3,500.00

$3,533 M

$3,400.00

$3,404 M

$3,300.00

$3,200.00

$3,252 M

Revenue: $3,404,000,000 Billion $3,100.00

Profits: $560,000,000 Million Current Stock Price: $20.70

$3,000.00

2016

2017

2018

2019

2020

Burberry’s Adjusted Operating Profits 2016-2020 (in millions) $610.00

$603 M

$600.00

$593 M

$590.00 $580.00 $570.00 $560.00

$566 M $560 M

$550.00 $540.00 $530.00

$540 M

$520.00 $510.00 $500.00

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

2016

2017

2018

2019

2020

Burberry Quarters in Retail Revenue YoY ( in millions )

FINANCIALS

PAST QUARTERS YOY •

$1,000.00 $900.00 $800.00 $700.00 $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00

Q1

The sales are decreasing due to the exponential growth of other luxury fashion houses such as Louis Vuitton and COVID-19

Q3 2018

2019

2020

Burberry Stocks per Month YOY $35.00

$20.00 $15.00 $10.00 $5.00

2018

2019

2020

be r

De ce m

be r

r

No ve m

Oc to be

r

Se pt em be

Au gu st

Ju ly

Ju ne

M ay

Ap ril

M ar ch

$0.00

Fe br ua ry

Consistant descreases in Revenue over past 2 years Stocks stayed consistant until 2020

$25.00

nu ar y

Revenue YOY: Down 45% in 2020 compared to 2019

$30.00

Ja

KEY METRICS IN 2020

B UR B ER RY

CHANNELS

RETAIL

WHOLESALE

LICENCING

Retail accounts for $2,725 M (80%)

Retail accounts for $615 M (18%)

Retail accounts for $60 M (2%)

(AS OF 28TH MARCH 2020)

(AS OF 28TH MARCH 2020)

(AS OF 28TH MARCH 2020)

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

ANALYSIS

•

COVID-19 has taken a large toll on sales

•

Burberry expects sales to decline even further in Q2 (-15% to -20%)

•

While there is a turnaround in place Burberry is still not connecting with Gen Z

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

TARGE T MAR KET

BU R BE R RY

TARGET MARKET DEMOGRAPHICS • Ages 25-55 • Crosses All Genders • Single or Married • Bachelor’s Degree or Higher • Professionals, Celebrities, Socialites • Income range $100,000 and above • Has disposable income GEOGRAPHICS • International • North America • Asia • Brazil

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

TARGET MARKET PSYCHOGRAPHIC • Innovators, Experiencers, Achievers, Thinkers • Understands technology and looks for it in

stores.

• Wants heritage items • Reading Impactful material • Exploring the arts and culture • Giving back to the community • Attending banquets and dinner parties

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

B E L L A S C OT T

Age: 25 Location: New York City, NY Occupation: Partner at a Law Firm Income: $180,000 Marital Status: Single VALS Profile: Achiever (Primary), Experiencer (Secondary) Style: Sophisticated, Fashion-Forward Shops: MiuMiu, Versace, Burberry Typical Day: Shopping during lunch, working late nights, having dinner on a balcony and binging How to Get Away with Murder.

Publications, blogs or social media: Instagram, Twitter, NYT, The Cut, Law Publications

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

N AO K I S ATO

Age: 32 Location: Tokyo, Japan Occupation: Commercial Architect Income: $130,000 Marital Status: Married VALS Profile: Innovator (Primary), Thinker (Secondary) Style: Classic, Minimalist, Streetwear Shops: Nordstrom, Neiman Marcus, Zara Men, Adidas, Urban Outfitters Typical Day: Yoga class, Relaxing morning swims, visiting wineries, taking weekend vactions Publications, blogs or social media: The Guardian, Instagram, DIY YouTube, Corridor Crew

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

COMPETITION

B UR B ER RY

PERCEPTUAL MAP Burberry is leaning towards mass market. Moving forword, Burberry will grow into the exclusive market.

The key competitor for Burberry will be Gucci.

KEY COMPETITORS GUCCI JACQUEMUS CHLOÉ BOTTEGA VENETA LOUIS VUITTON

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

COMPETITOR’S PRICING Burberry is mid to lower priced compared to its competitors. They’ve positioned themselves as entry-level luxury.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

COMPETITORS GUCCI • Under the Kering Umbrella • Cult favorite and specializes in leather • Has largest social media following in the luxury market • First luxury brand to announce going carbon neutral • Connects well with Gen Z and Millenial age groups

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

COMPETITORS

JACQUEMUS

BOTTEGA VENETTA

Jacquemus connects with millennial customers with disposable income.

They have strong success on social media which seperates them from other luxury brands.

Bottega Venetta connects with millennial and Gen X customers in elite professions.

The new creative director, Daniel Lee, fills the gap left by the departure of Phoebe Philo.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

COMPETITORS

CHLOÉ

LOUIS VUITTON

Bottega Venetta connects with boho millennial and Gen X consumers.

They have strong aesthetic, are known for their feminine silhouettes, and it-bags.

Louis Vuitton is the most profitable brand under the LVMH umbrella. They specialize in luggage and handbags. They have incredible brand recognition that seperates them from others.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

STR ATEGIES

B UR B ER RY

MARKET EXPANSION STRATEGY ONE

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

• Create a narrative that engages Gen Z • Increase variety of accessories with new logo and variety of beauty to create Gen Z entry points • Increase Awareness in Burberry’s Sustainability Practices.

B UR B ER RY

NEW TARGET PERSONA

KELSEY SIMONE Age: 21 Location: Syracuse, New York Occupation: YouTuber/ Influencer Income: $110,000 Marital Status: Single VALS Profile: Innovator (Primary), Experiencer (Secondary) Style: Neutrals, Chic, Professional, Classic Shops: Vintage, Gucci, Burberry, Reformation, H&M, Dior Typical Day: Morning Green Tea, Cooking, Creating Videos, Styling, Traveling Publications, blogs or social media: Instagram, Twitter, WWD, Vogue, Bible Studies

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

GANTT CHART

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

CONSIDERATIONS & CHALLENGES

CORPORATE CULTURE

MARKETING

• Burberry needs to continue their transparency and invest more in leadership, talent, and diversifying their workforce to connect with Gen Zers.

• The brand will shift towards more curation and storytelling in their social media and accelerating digital partnerships.

CAPITAL & HUMAN RESOURCES

• The brand has a long-standing commitment to sustainability and supporting those programs. They have already begun addressing this issue.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

BU R BE R RY

CONSIDERATIONS & CHALLENGES MERCHANDISING

• Burberry will continue to rebalanced the price architecture. The company should also increase their strides in sustainability and finding new suppliers for their products.

SYSTEMS

Virginia Macdonell

• Their supply systems should become more simplified, eco-friendly and efficient.

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

SOCIAL MEDIA

TIK TOK

• Burberry began using TikTok in May 2019 • Increasing posts in TikTok would be beneficial towards engaging G Zers.

• TikTok’s algorithm is very rewarding

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

BU R BE R RY

PRODUCT ASSORTMENT

BEAUTY

• Burberry will expand their foundation selection • This will help the brand become more inclusive and serve as an entry point

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

WEBSITE

ACCESSORIES

Virginia Macdonell

• This is already a leading category • Increase visability on accessories with home page shop options • Increase color ranges and more tech related items

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

MARKET PENETRATION STRATEGY TWO

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

• Create a narrative for the Aging Millennial and Gen Xers.

• Increase Aging Millennial/ Late Gen X Influencers • Increase Awareness in Sustainability

BU R BE R RY

GANTT CHART

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

CONSIDERATIONS & CHALLENGES

CORPORATE CULTURE

MARKETING

• In the aims of transparency, Gen Xers would enjoy reading about the company’s corporate social responsibility and should be more accessible.

• Burberry is moving to market new consumers, they should consider keeping the exclusivity, classical touch in their customer service. Burberry should market this through exclusive perks.

CAPITAL & HUMAN RESOURCES

• The brand will have to maintain and even renew their customer care and accessibility statements to ensure their stakeholders and community groups are appeased.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

BU R BE R RY

CONSIDERATIONS & CHALLENGES MERCHANDISING

• Burberry will continue to rebalanced the price architecture. Gen Xers are becoming more interested in innovative ways to make new products.

SYSTEMS

Virginia Macdonell

• New innovative Technology may cause some consumers to become disinterested and exhausted with the brand’s movement toward more innovation.

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

SOCIAL MEDIA

INSTAGRAM

• Burberry’s Instagram page would play up influencers that align with their values • The influencers will be apart of the Aging Millennials and Gen X age ranges • This will help to round out the narrative that is directed towards Gen Zers as well.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

MARKETING

EMAILS

• Emails will be a way to increase understanding of the new narrative • Sustainabilty will also be highlighted

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

BU R BE R RY

WEBSITE

INFLUENCERS

• The website will showcase the same influencers used for Instagram campaigns

• Website would feature a new virtual assistant to help with education

• This will encourage an ominchannel presence and connect the online platforms

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

B UR B ER RY

PERCEPTUAL MAP

• The Perceptual Map will not change.

• This position already aligns with Gen Z values

• The advantage of our strategies would be to increase the market size and build brand loyalty.

Virginia Macdonell

Derricka Calhoun

Maddie Wallace

Alex Wang

FASM 410

SOURCES https://www.burberryplc.com/en/responsibility/creating-tomorrows-heritage.html https://www.burberryplc.com/en/company/strategy.html#item-undefined https://www.burberryplc.com/en/company.html https://www.burberryplc.com/content/dam/burberry/corporate/oar/2020/pdf/Burberry_Annual_Report_2019-20_Financial_Highlights.pdf https://finance.yahoo.com/quote/BURBY/ https://www.burberryplc.com/content/dam/burberry/corporate/oar/2020/pdf/Burberry_Annual_Report_2019-20.pdf https://www.businessoffashion.com/articles/professional/burberry-pandemic-jacquemus-fashion-show https://www.businessoffashion.com/articles/news-analysis/burberry-plans-ethical-luxury-investment https://www.businessoffashion.com/articles/professional/burberry-wechat-tencent-china-shenzen https://www.businessoffashion.com/articles/professional/burberry-1q-results-2020-shares-fall-june-china https://www.businessoffashion.com/articles/news-analysis/burberry-to-cut-jobs-at-headquarters https://www.businessoffashion.com/articles/news-analysis/burberrys-sales-fall-27-in-last-quarter https://www.vogue.com/fashion-shows/spring-2021-ready-to-wear/burberry-prorsum https://www.nytimes.com/2020/09/18/fashion/burberry-london-fashion-week.html https://www.voguebusiness.com/companies/burberry-earnings-show-riccardo-tisci-promise https://www.thelist.com/186661/the-untold-truth-of-burberry/ https://qz.com/quartzy/1667430/burberrys-new-monogram-is-attracting-more-shoppers/ https://www.washingtonpost.com/business/burberry-may-never-be-gucci-cool-now/2020/07/15/f218b7b4-c694-11ea-a825-8722004e4150_story.html https://www.forbes.com/sites/scottdavis/2014/03/27/burberrys-blurred-lines-the-integrated-customer-experience/#5a8a85853cc6 https://www.businessinsider.com/burberry-twitch-summer-2021-fashion-show-2020-9 https://www.burberryplc.com/en/company/strategy.html#item-undefined https://statsmash.com/calculator/kelsey-simone-stats https://www.whowhatwear.com/bottega-veneta-clutch-bag/slide3