Burberry brand report

1

Burberry

Pinterest: Virtual Fashion

2

Contents

Contents

Burberry, Regent Street, London

pg 4- Executive Summary pg 6-7- Brand Profile/History pg 9- Brand Identity pg 11- Consumer Profile pg 13- Market Position pg 14-15 Communication Mix

3

Pinterest: Burberry, Short Double Wool Twill Trench Coat Black

4

Executive Summary

Tumblr: Gentlemen’s Essentials, Burberry

Executive Summary

T

his report profiles the British luxury fashion brand Burberry. This will encompass the business model and marketing strategies that they use in order to remain at the forefront of the luxury fashion sector. Beginning with a profile of the brand and its rich history, this report aims to highlight how the company has developed in terms of their manufacturing, distribution and consumer base, as well as outlining the key events which have impacted the company. This report then looks into the brand’s identity; showing how the company has created a level of trust between the brand and consumer. The brand’s consumer is then identified, exploring how the brand has a younger demographic as their primary consumers which may differ from what most people would assume Burberry’s target

audience to be. The report moves on to explain how Burberry are strategically placed within the luxury fashion market in terms of their points of difference to their competitors. Lastly, there is an exploration of the brand’s communication mix. This outlines how Burberry utilises marketing strategies via social media in order to create accessibility between the brand and the consumer. This also explains how the company uses advertising campaigns including social icons which have become crucial in supporting the brand’s identity as the most notorious and only remaining British luxury fashion brand.

5

Pinterest: Burberry

6

Brand Profile and History

Brand Profile and History

B

Burberry is a public limited company operating within the luxury fashion and retail sector. Based in London, Burberry was founded in 1856 by Thomas Burberry from Basingstoke, Hampshire, where the then 21 year-old opened his first store.

At this time the brand’s initial focus was on outdoor apparel before it eventually moved on to develop and patent the products and styles that Burberry would become most renowned for: gabardine and the trench coat. In Kal Di Paola’s article entitled ‘The Burberry Story’ she explains, “It wasn’t until 1880, 24 years later, that he patented a hardwearing, water resistant fabric “gabardine”

and became famous for the perfect English raincoat” (Paola, 2014).

After this point Burberry went on to set up headquarters in Haymarket, London, and develop the iconic Equestrian Knight logo. The brand was brought to the forefront of the industry, and celebrated by explorers and aviators who began wearing Burberry on their expeditions. Most significantly, in 1914, Burberry adapted its designs to meet the needs of the British military during WW1.

This next citation from a 2011 article surrounding Burberry’s iconic trench coat explains its significance: “Their waterproof coats became synonymous with the war because the designs incorporated War Office requirements with traditional aspects of leisurewear”. (Tynan, 2011) Subsequent to these events, Burberry received a royal warrant as tailors, the famous Burberry check was created, and the company began operating as a PLC in 1920.

The supply of Military apparel and accessories was to re-occur during the

Burberry, Regent Street, London

Second World War, whilst the brand also supplied civilian clothing. This created the cornerstone from which Burberry has developed a rich heritage of iconic designs, continually adapting through each decade.

7

Brand Profile and History

From the 1940’s to present day, Burberry has expanded into countless foreign market. Then creating globally renowned advertising campaigns featuring icons such as Kate Moss. Currently Burberry has 443 stores worldwide. This includes 56 franchise stores across 80 countries according to Retail Week’s article ‘Burberry: A great British Success’. The article also explains how successful Burberry are within the current market. “In a market where many retailers feel as though they’re swimming through treacle, Burberry has shown consummate adaptability and enjoyed standout success as a result” (Thomson, 2012). Burberry stands as one of the market leaders in luxury fashion retail. In support of the point, according to Forbes 2014 report Burberry was the 94th most valuable brand. (See Appendix 1) In terms of their product mix, Burberry have continually expanded to meet the demand of their consumer base and remain at the forefront of the industry.

Burberry’s mix included both men’s and women’s clothing, before expanding into children’s attire in 2002. (Hendriksz, 2015) According to ‘Burberry: The Business Model’, Burberry have extended their product lines out of demand to compete with their competitors. “In recognition of their need to extend the range of products included in the Burberry offer in order to furnish a flagship store and compete with the product ranges provided by competitors” (Birtwistle, 2004) This highlights how Burberry continually expand in order to maintain their position in the market.

The Business of Fashion: Burberry Ready to Wear, Spring 2017

8

Pinterest: Burberry

9

Brand Identity

Brand Identity L

ooking at brand identity, Burberry puts president on authenticity and heritage.

Burberry has created an identity of the quintessentially English fashion house. They have a rich history from which they have continually drawn from and adapted to suit the demands of their consumer base. This next citation from a 2015 designer fashion report shows the identity which Burberry has developed. “The brand is perceived as classic and heritage due to its products such as trench coats and the well-known Burberry print that is used on scarves and bags”.

(Sender, 2015) This also creates a level of trust. Looking at appendix 3, we see UK consumer attitudes towards luxury fashion brands.

Burberry along with Michael Kors is perceived as a brand that can be trusted. This means Burberry has created this as a brand identity (See Appendix 3) From these examples we see how Burberry has estab-

lished a strong brand identity. The adaptation of clothing across each decade has created trust between the brand and the consumer. Burberry’s heritage and pricing scheme, firmly gives them an identity as Britain’s most notorious luxury fashion house.

Burberry Campaiigns: On set of the Autumn/Winter 2014 campaign

10

Business Insider UK: Burberry Advertising Campaign

11

Brand Consumer

Brand Consumer

D’Marge: Romeo Beckham, James Bay and more big names unite for Burberry

B

urberry has specific demographics which drive their levels of revenue. According to a 2015 mintel report, consumers aged under 35 are the most committed to the brand. From appendix 4 we see Burberry’s user profile. This supports how a younger demographic are the main drivers of Burberry’s success in the current market. The over 35’s have more of a negative outlook on the brand and therefore less inclined to purchase their products.

Burberry market a wide variety of products, this causes a differentiation in the consumer base. These

next citations from the designer fashion marketing report explains this further. “Young men stand out as the principle purchasers, with 57% of males aged 16-24 having bought designer clothing”. (See Appendix 5) and in contrast to this “Young women are the keenest designer fashion accessories buyers, with 38% of female 16-24s having bought designer items in the last three years” (See Appendix 5) This highlights how the target consumer differs between the product departments. An issue with a younger demographic being the key consumers is accessibility. This next citation from designer fashion UK highlights this point, “The shift to a younger designer shopper has nevertheless created new challenges for luxury brands, which have to find a balance between making their designer fashion accessible to this demographic whilst maintaining an element of exclusivity to protect the brand image”. (See Appendix 6) This means that the company must have a USP so that it can maintain its levels of revenue.

12

Fashion Gone Rogue: Burberry Prorsum Resort 2016 Collection

13

Market Position

Market Position L

ooking into the brands market position.

Burberry must be strategically placed in the market in terms of their relative positioning and points of difference to their competitors. Burberry has placed themselves firmly within the market as ‘functional luxury’ offering an extensive product mix, Lauren M Jacobson’s ‘Burberry Case Study’ explains this point further: “With so many different products

offered in different collection and the fashion vs. continuity of Burberry products the product mix is very great. This contributes to the positioning of the Burberry brand” (Jacobson, 2008). Burberry’s quality of product in both the apparel and accessories market is which propels their market position. In contrast to some of their competitors such as Ralph Lauren who focus of the apparel market, Burberry occupies both sectors giving them a competitive advantage. According to Appendix 15, we can see that Burberry is viewed as one of the most desirable brands for purchasing clothing. In relation to this, looking a 2016 Mintel article we can see how Burberry is dedicated to

improving their accessories in their Harrods concession. “In store, Burberry is hosting events to highlight the craftsmanship behind its trench coat and handbags, as well as enabling customers to customise their handbag with painted initials” (Burberry takes over Harrods with “A Very British Fairy Tale”, 2016)

Freddy My Love: Burberry Dreams

14

Communication Mix

Communication Mix

B

urberry’s brand image has been driven by endorsements from social icons since they first patented gabardine in 1880.

Most significantly the ad agency Baron and Baron and celebrity photographer Mario Testino were contracted to create campaigns starring Kate Moss. This next citation from a marketing article surrounding Burberry highlights how the brand uses endorsements.

“Ads have also featured Jerry Hall, Lord Frederick Windsor and Marianne Faithfull, as well as `new Brit’ faces such as the Beckhams, Nicole Appleton and Jarvis Cocker” (Burberry, 2002) The same article goes onto explain just how effective such campaigns were to Burberry’s turn around for their image and profits. “The brand’s turnaround has been remarkable, as shown in the accounts. Burberry reported a 21 % hike in operating profits in the year to March 31, 2002 to (English pound)90.3m, achieved on a 10% sales increase to (English pound)500m” (Burberry, 2002).

More recently, Romeo Beckham has become the face of Burberry’s children’s range (See Appendix 7).

This current advertising campaign signifies a revival from the days of ‘the chav’ from which Burberry’s image suffered. This next quote from The Daily Mail’s article about the campaign explains further. “As Romeo Beckham stars in their new ad, how Burberry went from chic to chav to chic again” (Ostler, 2014) This also makes Burberry accessible to a new market.

Burberry also utilise social media very effectively as this next citation from an article surrounding Burberry in the digital age explains. “In 2009, it was one of the first fashion

houses to live-stream a runway show. It’s also been known to tweet images of a new collection before a show, effectively giving its Twitter followers a glance at the line before front-row celebrities and high-powered editors get one” (Morrison, 2012) This highlights how Burberry capitalises on the accessibility which social media provides. Expanding on this point, a 2011 trade report based on Burberry’s usage of social media platforms, explains how Burberry have been innovative with how they utilise platforms such as Twitter, Facebook and Instagram. “BURBERRY partnered with Twitter to create the first ever live ‘Tweetwalk’ show, premiering the Spring Summer 2012 collection with instant backstage Twit pics of every look live from London’s Hyde Park show space” (Burberry Trends Globally on Twitter With First Instant Tweetwalk Show Live From London, 2011) Using these platforms in order to showcase their brand is crucial to Burberry’s

success in the current market.

Lastly, looking at the brand’s distribution channels, Business of Fashion’s article surrounding Christopher Bailey explains the brand’s strategy. “today we are a truly omnichannel digital and physical retail business” (Imran Amed, 2016) This highlights how Burberry in the modern era distribute to their consumers via physical means i.e stores, pop ups, concessions etc and also on an online platform. This allows them reach a significantly wider customer base. Burberry are now making their ranges available to purchase as soon as the runway show has ended as this next

15

Communication Mix

Dashin Fashion: Romeon Beckham Stars in “Burberry From London With Love”

citation from the same article explains further. “by unifying its collections under one label; aligning its runway and retail cycles by combining its men’s and women’s shows together in two annual runway events, with ‘seasonless’ collections available to buy immediately after the shows” (Imran Amed, 2016) This method of distribution to their consumers acts as a unique selling point for Burberry. This could potentially give Burberry a competitive advantage in the market.

In relation to the brand’s distribution channels. Burberry have collaborated with The New Craftsmen to create Makers House.

This exhibition was opened following the brand’s September show. Located in the former Folyles bookshop in Soho, the exhibition showcases crafting of all varieties based

on Burberry’s collection as this next citation from Alice Morby’s article for Dezeen explains. “It featured different stations and spaces inspired by the collection, and saw makers curated by The New Craftsmen demonstrate various crafts and techniques” (Morby, 2016). This next citation from Rachael Steven’s Creative Review explains the significance of this business to consumer distribution. “The event marks the first time that Burberry has released its collection during Fashion Week.

It typically takes up to six months for clothes to hit stores after runway shows but Burberry along with many other brands is doing away with this long lead time in favour of a ‘straight-to-consumer’ approach” (Steven, 2016). The pop up fashion space was launched for London Fashion Week and London Design Festival, combining the two industries in an exclusive exhibition acts as a USP for Burberry.

16

Bibliography Birtwistle, C. M. (2004). The Burberry business model: creating an international luxury fashion brand. Retrieved from Academia: http://www.academia.edu/3453797/The_Burberry_business_model_creating_an_international_luxury_fashion_brand Burberry. (2002, August 1). Retrieved from Proquest : http://search.proquest.com.lcproxy.shu.ac.uk/ docview/214971112?accountid=13827&rfr_id=info%3Axri%2Fsid%3Aprimo Burberry takes over Harrods with “A Very British Fairy Tale”. (2016, November 11). Retrieved from Mintel : http:// academic.mintel.com/sinatra/oxygen_academic/display/id=800143?highlight Burberry Trends Globally on Twitter With First Instant Tweetwalk Show Live From London. (2011, September ). PR Newswire Europe Including UK Disclose. Retrieved from ProQuest.

Burberrys Market Position And Its Competitors Marketing Essay. (2015, March 23). Retrieved from UK Essays : https://www.ukessays.com/essays/marketing/burberrys-market-position-and-its-competitors-marketing-essay.php Hendriksz, V. (2015, March 25). Burberry to take control of childrenswear. Retrieved from Fashion United : https:// fashionunited.uk/news/fashion/burberry-to-take-control-of-childrenswear/2015032515973 Imran Amed, L. H. (2016, July 11). Christopher Bailey Speaks on Burberry Shake-up. Retrieved from Business of Fashion : https://www.businessoffashion.com/articles/news-analysis/christopher-bailey-speaks-on-burberry-shakeup Jacobson, L. M. (2008, May 5). Burberry Case Study. Retrieved from Lauren M Jacobson: https://laurenmjacobson. wordpress.com/case-studies/burberry-case-study/ Melhuish, N. (2010, November 2). Timeline: Burberry. Retrieved from Nicola Melhuish: https://nicolamelhuish. wordpress.com/2010/11/02/timeline-burberry/ Morby, A. (2016, October 10). Burberry marries fashion with craft at Makers House. Retrieved from Dezeen: https:// www.dezeen.com/2016/10/10/burberry-new-craftsmen-makers-house-fashion-craft-exhibition-london-design-festival-2016/ Morrison, M. (2012, December 10). A FOCUS ON DIGITAL HAS MADE BURBERRY RELEVANT TO A NEW GENERATION. Advertising Age, p. 24.

Ostler, C. (2014, November 5). As Romeo Beckham stars in their new ad, how Burberry went from chic to chav to chic again. The Daily Mail.

Paola, K. D. (2014, January 31). The Burberry Story . Retrieved from Stylsh: https://www.styl.sh/articles/381-the-burberry-story Sender, T. (2015, November). Designer Fashion UK November 2015. Retrieved from Mintel Academic : http://academic.mintel.com/display/716169/ Steven, R. (2016, September 23). Makers House: a fashion and craft pop-up from Burberry and The New Craftsmen.

Retrieved from Creative Review : https://www.creativereview.co.uk/makers-house-a-fashion-and-craft-pop-upfrom-burberry-and-the-new-craftsmen/ Thomson, R. (2012, March 19). Burberry: A great British Success. Retrieved from RetailWeek: https://www.retail-week.com/burberry-a-great-british-success/5034635.article Tynan, J. (2011, 02 24). Military Dress and Men’s Outdoor Leisurewear: Burberry’s Trench Coat in First World War Britain. Journal of Design History, pp. 139-156.