Brand extension for Burberry Process Book https://youtu.be/xK-gFD_u5HA

BRAND EXTENSION

EQUESTRIAN WEAR Jacob Sarradet, Yufei Wang, Yuxian Wang & Ying Shen FASH 763 | Prof. Alessandro Cannata

EXECUTIVE SUMMARY Burberry has been on an extraordinary journey over the last 163 years, from outfitting explorers more than a century ago to becoming one of the world’s most valuable global luxury brands with a distinctive, British point of view. In 2020 spring and summer, Burberry will launch The Pursuit collection, it is responding to a changing market in which the luxury consumer now “demands innovation, curation, and excitement.” The Pursuit collection reinforces the company’s culture and values through more energetic elements while continuing to highlight the brand’s classic elegance.

Brand Description Established in 1856 by Thomas Burberry, originally focusing on the development of outdoor attire and became known for it. In 1879, Thomas Burberry invented gabardine. This fabric was not only water-resistant but also extremely durable. Burberry is now a leading luxury brand with a global business. The brand is carried in boutique stores and franchises across the globe while overseeing a fashion catalog, a fragrance and cosmetic line. The Burberry brand is defined by its authentic British heritage and is globally recognized by the iconic trench coat, trademark check and Prorsum horse logo. 257 years after its founding, Burberry still stuck by its founding principles of quality, function and modern classic style, rooted in the integrity of its outerwear.

NEW INITIATIVE

*Original Proposal

Brand Extends to a New Category

New products: Sports bags Apparels Shoes Accessories

Price: Bags: $1,000-$1,500 Apparels Sports Bra: $250 Tops: $250-$350 Jackets: $300-$700 Trousers&leggings: $250-$350 Shoes: $300-$500 Accessories: $50-$70

——Sports line

*Final Proposal

Brand Extends to a New Category ——Equestrian Wear New products: Equestrian Shirt Equestrian Jacket Equestrian Pants Equestrian Boots Equestrian Whips Equestrian Gloves Equestrian Helmet

Average Price: Apparels Shirts: $200-$350 Jackets: $900 Pants: $800 Boots: $1000 Whips: $100 Gloves: $150 Helmets: $500

New Target Consumer Burberry would aim their newer products at millennials, instead of the usual, older trench coat wearer that had accounted for a large part of their sales. Millennials are the main influencers  in the fashion market today, they have an increasing level of disposable income and are seen to be increasingly brand loyal. They enjoy life and inspired by or really like sports.

CONSUMER SEGMENTATION

FORMER DEMOGRAPHICS

Burberry has to differentiate some customers with others to see who they want to target. Burberry’s products prices are generally high so they usually target old people with a high income.

NEW DEMOGRAPHIC Both gender 15-35years old Urban high income Fashion conscious Sports participants Shop at least two to three times a month Burberry Sport line primarily targeting sports participants, including those at the highest level of their sport, as well as non-athletes who are inspired by or really love sports. Target customers can be both genders and aged between 15-35 years old. Due to Burberry’s products are luxury , customers can be high income. In terms of psychographic and behaviors, target markets are young people who are fashion conscious and appreciated the heritage of the Burberry brand and love following the trend and shopping at least two to three times a month.

PSYCHOGRAPHIC Psychographic segmentation to target individuals with specific lifestyles and personalities. To use this variable effectively Burberry sports line must target individuals who enjoy sports.

Whether it is playing, watching or simply talking about sports, these activities shape personalities and lifestyles. Burberry sports line efforts are targeted at creating a “feeling� that transcends the product. It fosters an attitude, it develops a lifestyle.

There is also the smaller audience of those who aren’t into sports. They shop at Burberry for the logo and recognizable feature for a fashion statement.

SOCIOGRAPHIC Pursue quality of life and social status Love outdoor sports, fitness and adventure Crazy about social activities such as fashion parties, music festivals

BEHAVIORAL Prioritizing Informative & Entertaining Brand Experiences. Millennials, representing a large growing population of luxury, expect discovery and delight in their shopping experiences- whether occurring digitally or off line They are frequent travelers and enjoy sport, personally-tailored shopping and content such as digital fashion magazines or selfcurated content via the likes of Instagram or Snapchat. Create The Unexpected. Luxury is more a matter of lifestyle than possession. They show their taste and personality by buying luxury goods.

S.W.O.T. ANALYSIS

STRENGTHS • • • • • • • •

Burberry has a huge network of retail, wholesale and licensing channels globally Burberry is one of the biggest fashion houses in UK offering clothes, perfumes, beauty products etc Granted Royal Warrants by Queen Elizabeth II and the Prince of Wales.

One of the most valuable companies in the world owing to its legacy Good advertising and brand presence in Europe specially England makes Burberry a prominent brand Associations with international celebrities to reach out to the customers Close to 10,000 people are employed with Burberry company The brand has its presence in more than 50 countries & 500+ stores

•

1. Due to Burberry’s positioning it is very much accessible in the high-street, and has a low couture presence.

• 2. The brand has to constantly fight with cheap imitations

WEAKNESSES

OPPORTUNITIES • • • •

After collaboration with other brands, Burberry can try to make fashion more diversified More advertising and marketing would increase visibility Global expansion would help the brand grow worldwide Effective use of e-commerce can make Burberry reach out to more customers

The brand faces threat from other competitive everyday brands in terms of pricing as well as availability • The customers have a higher bargaining power and low switching costs Intense competition in the segment can reduce Burberry’s market share •

•

THREATS

COMPETITOR ANALYSIS

COMPETITORS

A collaboration between Adidas and Stella McCartney, since 2004.

• Product categories: Athletic Apparels, Shoes, Accessories for women Innovative materials and stunning design.

• Designed to better fit movements and compliment female body.

• Environmental friendly.

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A collaboration between Adidas and Japanese Designer Yohji Yamamoto, since 2003.

Product Categories: Athletic and Lifestyle Apparels, Shoes, and Accessories for women and men Innovative design, sport functionality, fashion elegance and spotless craftsmanship.

Aesthetics: edgy, avant-garde.

• • • •

Launched by Tory Burch in 2015.

Performance and lifestyle Apparel, Shoes, and Accessories for women.

Golf, tennis, and running.

Aesthetics: Vibrant colors

PERCEPTUAL MAP

Luxury

Athletic

Athleisure

Mass

IMC

BUSINESS ISSUE Create a marketing strategy and a campaign for the launch of Burberry’s gymwear line.

OPPORTUNITIES • • •

Burberry has already established some loyal customers and followers that will help to promote the campaign New and emerging medias vehicles that help to improve communication efficiencies.

Technologies that help to better track the performance of the campaign and audiences’ reactions to the campaign.

CHALLENGES • • •

Many luxury and designer brands are tapping into the athleisure field, how to stand out among those brand.

Avoid confusion from the consumers on the Burberry brand image.

Avoid becoming too accessible that hurts the brand image.

CONSUMER INSIGHTS

TARGET CONSUMER IN MARKET & MENTAL SPACE

Price Driven Purchaser Not Fashion Conscious

Mental Space Market Space

No value of luxury products *Original Edition

MENTAL SPACE

Chantal Sutherland

John R. Velazquez • • • • • • • •

Age: 47 Status: Married Profession: Jockey Over 6,000 wins Average Yearly Earning: $24,000,000 Inducted into Hall of Fame 2012 Trains tirelessly to make weight and be the best

• • • •

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Eats, sleeps, and dreams only about being the best Risks his life to perform in arguable one of the most dangerous sports of all time Wears Burberry for its technical performance

• • • • •

Age: 43 Status: Married Profession: Jockey Over 1,000 wins Average Yearly Earning: $2,754,000 Inducted into Hall of Fame 2012 Trains tirelessly to make weight and beat the best One of very few women in the sport

• • • •

Risking her life every time she goes out on the track Constantly trying to prove herself in a sport dominated by men Hobbies: Modeling, TV personality Wears Burberry for its technical performance

*Revised & Final Edition

MALE MARKET SPACE

• • • • • • • •

Age: 18-35 Status: Single or married Profession: Student, athlete, or working professional Aspiring to be the best professional in his sport, academic, or work life Eats, sleeps, and dreams only about taking the next steps to reach his goals Fashion forward Uses fashion to show the world his high level of achievements Believes that obtaining luxury goods signifies class

FEMALE MARKET SPACE

• • • • • • • •

Age: 18-35 Status: Single or married Profession: Student, athlete, or working professional Aspiring to be the best female professional in her sport, academic, or work life Eats, sleeps, and dreams only about taking the next steps to reach her goals Fashion forward Uses fashion to show the world her high level of achievements Believes that obtaining luxury goods signifies class

Obtain industry insights that enlighten us to the correct and resulting successful extension of Burberry into the gym wear market space.

RESE ARCH

GOALS Reveal workable consumer insights that will drive the design of the products and apparel

RESEARCH SELECTION Methods: 1. Survey

2. Interviews (Role playing)

3. Choice Ordering

We are using a mixed method of research techniques which will maximize our insight results into the gym wear market space. Utilizing a survey consisting of only close-ended questions will give us quick quantitative grouping, while our interviews and choice ordering will provide us with sufficient qualitative results.

RESEARCH DESIGN SECONDARY RESEARCH

PRIMARY RESEARCH

Existing Knowledge

Interview Based

Observation Based

SCAD Library Statista

WGSN

Euro Monitor

Qualitative

Quantitative

Choice Ordering INTERVIEW

SURVEY

ATTRIBUTES Classic - Luxury - International - Timeless - Iconic

ANALYSIS OF RESULTS

CONSEQUENCES Quality - Sophisticated - Refined

VALUES Accomplishment - Self Fulfillment - Self Esteem

ATTRIBUTES Innovative - Luxury - Trendy - Performance

CONSEQUENCES Prestige - Sophisticated - Refined

VALUES Accomplishment - Self Fulfillment - Self Esteem

Value congruity of current potential competition shows that Burberry has great potential to be successful in the activewear market.

KEY SUCCESS FACTORS

A. Stay true to the shared values of current customer base

B. Utilize influencers (conveyors) C. Limitations

No athletic footwear manufacturing infrastructure

POSITIONING STRATEGY A. Utilize Heritage

1. Explorers hard work and training to accomplish goals 1893

2. WWI soldiers - training to be a hero 1914-1918

B. Conveyor 1. Celebrity

2. Olympic Athlete C. Leverage its already existing brand attitude of luxury

COMMUNICATION OBJECTIVES

AWARENESS Create brand awareness and relevance

Put ads on billboard of mall and city center Put ads on magazines and Television Put ads on social media: Instagram YouTube, Weibo, official websites

COMPREHENSION Create conversation and interaction ith consumers

Celebrities and brands interact on social media to show the products Sponsoring actors in movies or TV shows to wear products to increase product exposure Cooperate with magazines to introduce products specifically by an article or brand interview

IMAGE Establish brand’s image to increase urchase intention

Host new products launch parties or corporate-wide celebrations Collaborate with Royal Ascot , hold some private parties to attract target customers directly Host in-store events and invite influencers Promote launch events or parties on various social media

MEDIA MIX

Instagram

Snapchat

Print

Primary

Secondary

Secondary

Gender: 30% of women (39% or online women use it) Age: 72% of 13-17, 64% of 18-29, Location (all users): 80% outside US (within US 42% of people living in urban areas use instagram, 34% suburban, 25% rural) Income: 42% of adults who make over 75,000 use instagram Education: 42% of adults with college education use Instagram

INSTAGRAM

Gender: 31% of women (online) Age: 69% of 13-17, 68% of 18-29, 26% of 30-49 Location (all users): 79% outside US (within US 29% of people living in an urban environment 23% suburban, 17% rural) Income: 30% of adults who make over 75,000 Education: 26% of adults with college education

SNAPCHAT

EQUUS MAGAZINE

99% of Households subscribed own horses 87% own their own home 67% keep horses on their own property 71% own or lease a horse trailer 58% compete (average of 4 events a year) 53% ride mostly western 34% ride mostly English 48% ride at the advanced or professional level

BUDGET

MEDIA SPEND

*Original Edition

The Pursuit Collection will introduces 52 styles of apparels and accessories, which is about 6% of Burberry’s existing merchandise. Since the collection was newly launched, it takes time to build awareness and also the association between Burberry and Equestrian wear. We predict that the Pursuit collection will contribute to 3% of the annual revenue after it launches. Last year, Burberry’s revenue was $3.46 Billion. We predict that the Pursuit collection can generate $103.8 Million revenue.

MEDIA SPEND Digital Instagram

Snapchat

Youtube Print Vogue

Equus Magazine Outdoor Billboard Direct Marketing Email Total

Objectives

Tasks

Create brand awareness, Post preview photos, campaign Facilitate click-through & photos as feed. Post videos on purchase Instagram Story and IGTV Create brand awareness, Post behind the scene videos on connect and interact with target snapchat. Interact with viewers. consumers

Buget

40%

$

The number of likes, increased followers, comments and click through rate The number of watches, 8,304,000.00 increased followers, and comments

Create brand awareness, brand Post the video on Burberry comprehensionand brand image Channel and promote video ads.

Create brand awareness and brand image among fashion lovers Create brand awareness and brand image among equestrian lovers and build credibility

Display campaign with launch date, website, and store location Display campaign with launch date and store location

Measuring Effectiveness

The number of likes, increased subscribers, and click-throughs

30%

$

6,228,000.00

The number of searches online, website and store traffic The number of searches online, website and store traffic

Create brand awareness, facilitate store visit and purchase

Display campaign near store locations

25%

$

5,190,000.00

The number of store traffic

Connect with existing customers

Direct emails sent to Burberry existing customers

5%

$

1,038,000.00

The number of click-through and enquiries.

$

20,760,000.00

According to Burberry’s 2018 Annual Report, communication and digial presence are huge revenue generator for the company.

Therefore, we distributed 20% of the predicted revenue to marketing activities, of which 40% will be the budget for digital campaigns.

*Revised & Final Edition

TIMING OF LAUNCH

Spring and Summer Royal Ascot is Jun 17-22 Leverage the building excitement Spring is the horse jumping season

ACTIVITY MAP

DEVELOPMENT OF THE CREATIVE IDEA, EXECUTION & PRE-TESTING

BIG IDEA

TAGLINE

No Longer Afraid of the Unknown

DEVELOPMENT OF THE IDEA Sports line TO Equestrian wear Royal Ascot as one of the inspiration Britain's most well-known racecourses June, every year Attended by the Queen, who has been interested in horses since childhood The Brand's British heritage More energetic & highlight the brand‘s classic elegance Equestrian girls: noble, self-confident and independent Bring hope, aspirations and dreams to girls.

STORYLINE A girl from a royal family is invited to the Royal Ascot. She gets bored at the race and wanders into the woods.

Unexpectedly, she sees a horse in the woods. She wants to take it back to the stables, but it runs away. "Clip-ClopClip-Clop� as she watches the horse disappearing in her sight, she feels this impulse starting from her guts.

She takes off her dress as she runs into the stables, revealing the Burberry equestrian wear underneath. She puts on a helmet and rides on a horse. She can hear the wind blowing so loudly. Everything becomes a blur in the corner of her eyes. She knows she can win the pursuit and bring it back.

EXPLORATIVE CONCEPT TESTING Interviewed students in equestrian classes Great expectation for our equestrian series Traditional equestrian clothing: boring.

Beside product performance, they also pursue a novel and stylish appearance.

Everyone wants to be the coolest girl on the racecourse. This gives us great confidence in our product line.

PRELIMINARY SUBJECTIVE EVALUATION OF THE EXECUTIONS Clothing: fashionable and practical Reference & Research Summarize the styles that everyone expects.

Cater to the public while maintaining the brand traditional image Some elements of youthful energy.

The shooting: expectations and challenges.

Balance the interaction between the actors and the horses while showing the details of the products.

This is definitely an exciting experience.

Demonstrate the product in use

Provide real news

Create imagery in the mind

EXECUTION TACTICS

MARKETING ASSETS

BEHIND THE SCENES

BEHIND THE SCENES

FILM

https://drive.google.com/file/d/1EqXyc1Ucwu-dM176rSwBBteezYtEv3ta/view?usp=sharing

OTHER MEDIA

MAGAZINE

BILLBOARD

SHOP THE COLLECTION

WATCH THE FILM

PLANTI CORNER

Campaign Tracking

Continuous Tracking

Techniques & Timing

More reliable Gives more insights of the effectiveness of the ads Media synergy

Time: Before launch to Sept. 14 Record every two weeks

Brand Awareness One of the communication objectives Are people associating Equestrian wear with Burberry

Purchase Intention Sale is the end goal Do people want to buy the Pursuit Collection

AD DIAGNOSTICS

Brand Consideration Recognize the competitors Improve positioning strategies

AD Recall Measures how effective the ad on Equues Magazine is comparing with competitors' ?

AD recognition Measures how well branded the ad is.

Message Take-out and Image Tracking

AD DIAGNOSTICS

Do people understand that Burberry now has a equestrian wear line?

Do people recognize the elegant and sophisticated image of Burberry's equestrian wear line?

Interviews Focus groups Impressions on social media Likes and comments

Metrics

LAUNCHING THE CAMPAIGN

SNAPCHAT BEHIND THE SCENE VIDEOS

INSTAGRAM BURBERRY_FASH763

FILM CREDITS SCAD FASH 763 FASHION PROMOTION - Spring Professor - Alessandro Cannata Produced by: Jacob Sarradet Yufei Wang Yuxian Wang Ying Shen Film: Junyan Ivan Chen - Director & Writer Lei Juno Wang - Producer Roco B. Salerno - Director of Photography Lei Juno Wang, Junyan Ivan Chen, & Yinan Kirwin Zhang - Production Design Benjamin McGonnel & Wen Chung Cheng - Assistants of Camera Yuchen Charlie Zhou, Yinan Kirwin Zhang, & Zhidong Yi - Gaffer and Grips Cast: Kelsey Tope Katia Monge Menegazzo Charly, the horse Special Thanks to: Xu Ash Yan Location: Red Gate Farm Animal Handler: Jessica Simson Mentor: Oscar Betancur

REFERENCES Burberry. Burberry Annual Reports 2017/18. www.burberryplc.com/content/dam/burberry/corporate/Investors/Results_ Reports/2018/Burberry_AnnualReport_FY17-18.pdf.

• Valerie. “BURBERRY (Consumer’s Behaviour Report).” Scribd, zh.scribd.com/document/336771354/BURBERRY-Consumers-Behaviour-Report.

• Haskell, Rob. “Tory Burch on Her New Sports Line, Finding Love, and Redefining Success.” Vogue, Vogue, 1 Feb. 2017, www.vogue.com/article/tory-burch-workout-clothes-tory-sport.

• Williams, Grace L. “Retail Check Up: Lululemon Athletica.” Forbes, Forbes Magazine, 29 June 2018, www.forbes.com/sites/ gracelwilliams/2018/06/28/retail-check-up-lululemon-athletica/#5118600e5b87.

• That’s a Good Taste. “Y3: Yet Another Swansong of Adidas.” That’s a Good Taste, That’s a Good Taste, 29 Dec. 2017, www. thatsagoodtaste.com/in-fashion/y3.

• Mainwaring, Simon, and Simon Mainwaring. “How Lululemon Builds Community To Create an Iconic Brand.” Medium, Medium, 27 Aug. 2018, medium.com/@simonmainwaring/how-lululemon-builds-community-to-create-an-iconic-brand-ff03d899a85f.