Burberry Brand Faced Lot Of Problems Marketing Essay

Burberry Brand Faced Lot Of Problems Marketing Essay canvas Burberrys market position relative to that of its competitors, including Polo, Armani and Gucci.Answers Burberry had positioned itself into a opulence lifestyle patsy that was inspirational, stylish, and innovative mug. Burberry had targeted its brand in order to attract younger guest base along with the traditional stodgy feel, conservative and a node based skewed towards the honest-to-goodnesser generation. Therefore, the market positioning for Burberry can magic spell to the hip 25-year-old man or the conservative 65 year old man. Burberry had become a brand symbolizing both luxury and durability.Burberry was focused for a niche seg ment between brands such as Polo Ralph Lauren and Giorgio Armani in App bel, and between bearing and Gucci in accessories. Burberry had a particular price evince and for a particular price segment. Burberry was never just a authorised brand or a brand always having a acid edge bu t had always maintained itself as a well-disposed luxury brand.The point of difference (PoD) which made Burberry unique was its functionality, i.e. the products had a purpose. Burberry was an aspirational brand with functionality which made it unique.Burberry had comfortably nestled itself between a lifestyle (represented by Ralph Lauren) high end fashion products (represented by Gucci) in the accessories and more or less men array and the high end brand in womens turn and nearly mens apparel.Market ShareIn conditions of Market share, the Exhibit13 display that Burberry has the quarter largest market share at 5.2%. The relative performance of Burberry as compared to Polo, Armani and Gucci are as follows______________________________Players____________Market SharePolo Ralph Lauren 9.1%Burberry 5.2%Gucci 4.4%Giorgio Armani 3.5% bloodlineAccessoriesExhibit14 shows the gross gross sales of accessories in Eur(mn) of Burberry in simile to the other brands. The accessories of Bu rberry had an sales of 445 Eur(million). In comparison to the other brands the sales of 2001 were_____________________________Players________________Eur(Mn)Gucci 1,394Polo Ralph Lauren 484Burberry 445SourceIn terms of sales Louis Vuitton had the some amount of sales. Gucci and Polo Ralph Lauren had to a greater extent amounts of sales in terms of revenue as compared to Burberry.ApparelExhibit14 shows the sales of apparel in Eur(mn) of Burberry in comparison to the other brands. The apparel of Burberry had an sales of 988 Eur(million). In comparison to the other brands the sales of 2001 were__________________________Players________________Eur(Mn)Polo Ralph Lauren 3,621Burberry 988Georgio Armani 661SourceIn terms of sales, Polo Ralph Lauren had the most amount of sales. Burberry had more amounts of sales in terms of revenue as compared to Georgio Armani.Advertisement ExpenditureThe following is the amount of expenditure done by the fashion companies with respect to burberrys advertis ement expenditure______________________________Players_________________Eur(Mn)Burberry 98Giorgio Armani 72Gucci ingredient 111Polo Ralph Lauren 100Gucci has spent the maximum on advertisement expenditure, followed by Polo and and then by Burberry. Giorgio Armani witnessed the least advertisement expenditure for 72 million.Source uncertainty 2) Is Burberrys competitive position sustainable e rattlingwhere a long term?Answer There are some constraints that Burberry is facing, these are The marketplace and contemporary trends are constantly changing.Everyone is a competition.High Income great deal shop everywhere, and land income people are starting to shop for for affluent brand secernates.The brands sales rely heavily on the Burberry check.With emergence of modern customer base, depending towards them might create a danger of alienating old lymph node base.The new-sprung(prenominal) focussing of Burberry has overcome these constraints efficiently, but with the rise in com petition, the management has to work re entirelyy hard to keep the brand contemporary and pathetic in the positive direction.Question 3) Bravos squad is currently carrying out some(prenominal) initiatives including sixfold collections, multiple convey and multiple licenses. What is the role of each of these initiatives in Burberrys overall business model?Multiple CollectionsUnder Bravo Burberry was positioned as a brand in between Polo Ralph Lauren and Giorgio Armani in apparels and between Coach and Gucci in accessories.Bravo wanted the Burberry brand to appeal younger generation, slice maintaining its old customer base. In order to change over the brand and attract new customers base Burberry launched multiple collections. The other reason for launching multiple collections was to remain consistent with the current fashion trend in the market. Bravos team started slashing the number of SKUs to eliminate outdated designs and had a consistent look across the products. Each se ason Burberry used to introduce 450 to 500 womens apparel styles and 330 to 350 mens apparel styles. These collection were very cross generational i.e. it targeted people in the age range of 25 to 60. In this way Burberry made itself more visible and easily approachable for the customer. In order to make people aware that something new is happening at the Burberry, a high profile high-end brand called Prorsum was introduced. Prorsum was available only in the best stores of the world. Through its multiple collections Burberry was successful in creating an image of high fashion brand all the same approachable for the customers.Multiple ChannelsBurberry Brand faced lot a problem before Bravo joined due to parallel trading, which had a negative impact on its process and brand image. Burberry had 3 channels of distribution retail, wholesalers and licensed partners. By the end of 2002 Burberry had nearly 3162 wholesalers worldwide which include 434 departmental store and 2728 specialit y stores. Burberry likewise had 132 company owned stores all over the world. These company stores where designed to display the entire product range, typesetters case the company vision and were in addition used as a scrutiny ground for new concepts.Multiple channel armed serviceed Burberry increase its visibility among the customer, which in turn helped in acquiring new customers. Prices of products were raised to reflect the brands new positioning as a result the margin increased to 56% to 47%.Multiple licensesBurberry exercised complete control over sourcing, designing, manufacturing and distribution. When specific expertness was required to certain product Burberry used licensees who had design, manufacturing and distribution. Burberry used licensees mainly in accessories business where they didnt shake competitive advantage. Having control over the licenses, wholesalers and distributors helped Burberry in move its brand and creating a positive image among the customers. In the process Burberry bought some of the distributors to stop parallel trading and have a tighter control over the process.Elevating the prices.Control over communications global communications.Question 4) Has Bravos team managed to bring up the overall status of the Burberry brand?Answer The Bravo team was very successful in elevating the overall status of the Burberry brand. This was not an easy labor or something that was accomplished overnight. Bravos goal when she took over was to transform Burberry into a luxury lifestyle brand that was aspirational, stylish and innovative. Some immediate changes made to Burberry to help accomplish this and elevate the overall status were cosmetic. This included changing the companys name from Burberrys to Burberry and introducing a contemporary new logo and packaging. Then Bravo went onto reposition the brand. This meant attracting younger customers while retaining Burberrys core customer base. The product line was also updated. The new product line included product classified as either continuity or fashion oriented. Continuity products were expected to have much longer lifecycles and fashion oriented products were responsive to fashion trends. Burberry also updated its product line to have three primary collections womens wear, menswear, and accessories. With all of these new and radical changes, Burberry was able to elevate the overall status of its brand.Balance between continuity and fashion oriented productsBalance between mens and womens wear (27% vs 33%) mens wear has relatively longer PLCBalance between accessories and apparelsBalanced distribution Sales = 39% DOS 52% Distributors 10% LicensesGreater geographical balance dependence on Asia 75%Brand tier system London, Prorsum, Thomas Black.Blue.