Monday, 21 September 2015

FAPR Assignment Case study: Burberry


BRAND CASE STUDY

BURBERRY

Burberry the British global luxury brand we are so familiar with now, didn't always had an opulent luxurious outlook down the history line. Founded by Thomas Burberry at a young age of 21 in the year 1856, the brand was just a draper’s shop in Basingstoke, England. The previous reputation of this brand was only producing waterproof garments and outfitters which were supplied to the military during the war.  
After going through the case study, following are my reflections on marketing history of the brand Burberry.
Burberry had been facing many issues with their brand
Strategic and tactical marketing, both are equally essential for any brand.
The major strategic marketing decisions made by Burberry were:
·         Reinvention of Burberry
·         Revamping the product line
·         Overhauling company’s distribution strategy  
Then we come to the tactical marketing decisions:
·         Hiring a top management team for success in retail environment, from shop floors to fitting rooms. Hence, trying to figure out what customers wanted, what price points people wanted and where the gaps were.
·         Extensive customer base research with market survey (GAP and SWOT analysis)
·         The name of the company was changed from Burberry’s to Burberry with a new contemporary logo and new packaging.
·         With the strategy of repositioning the brand, Burberry wanted to shift its customer base, from older customer to younger ones while yet retaining the core customer base.
·         Burberry wanted to position between gaps and stay true to their brand values. The right niche was between labels like Polo Ralph Lauren and Giorgio Armani in apparels and between Coach and Gucci in accessories. Hence, Burberry was more of an accessible luxury because of its purposeful functionality.
·         The product line was updated by slashing the SKUs. Out-dated products were eliminated and pave way for new design. New design team was hired to update traditional products and have a new range of products to form continuity in the designs. Bandanas, miniskirts and spike heel boots were introduced among new products.
·         Burberry designed collections from season to season, introducing clothing for warmer climates like the famous Burberry bikini. New menswear and accessories were also introduced.
·         Then the issue of licensing was very important to resolve. Burberry exercised control over design, sourcing, manufacturing and distribution. No third party distribution was allowed. Burberry outsourced products such as fragrances, timepieces, eyewear etc. It gave authorized license to other companies with royalty to sell under Burberry’s name as they didn’t have enough expertise. Prices were raised for profit as new distributorship came in with strict control, credentials and quality check.
·         Sustaining brand value equally for a teenager or a countryside Englishman. Hence, in motive of expanding the band Burberry Prorsum came in. Hence, Burberry entered the haute couture world bringing a modern vision to the brand.
·         Branding and advertising were focused majorly. For a promotional campaign, Burberry hired famed fashion photographer, Mario Testino, creative director Fabien Baron and ad agent David Lipman. The black and white photographs had a heritage yet a modern look. Supermodel Kate Moss juxtaposition with Stella were hired to model for the campaign having a both aristocratic and modern bad girl look.
·         Now came the task to sustain the brand. The non-target customers and Hip-Hop celebrities were also introduced to the brand.
·         Burberry Brit perfume was introduced to women in mid 30s and the check became extremely popular too.

Burberry Prorsum
The brand new image of the brand was further stroked by the introduction of the luxurious high end Prorsum for the couture lovers. Burberry had many different lines available in several countries but Prorsum became the most popular. Prorsum had extravagance with hand-tailored intricate products. After communicating to the youth, Burberry wanted to communicate to the first class fashion stores and opulent runways and introduce the aristocratic to the brand’s new image. Top industry journalists and editorial press covered the collections, showcasing it to the world. Prorsum is not for the million but for the minority truly interested in fashion and with that Prorsum debuted in London Fashion Week. It experimented and showcased elaborate silhouettes, designs and fabrics.

Trading down in marketing is reducing the product features and benefits of the product to suit selling price and demand of the consumer. It helps the brand in many ways. It makes luxury accessible to the general masses and also helps growing flagship stores all over the world. It increases profits and sales to sustain a luxury brand.


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