burberry internal analysis

9
SHADON MOHAMED - QUEENA NING - JINGWEI CHIANG - SUMMER LEE - LAURA BELSLEY

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Page 1: Burberry Internal Analysis

SHADON MOHAMED - QUEENA NING - JINGWEI CHIANG - SUMMER LEE - LAURA BELSLEY

Page 2: Burberry Internal Analysis

Internal AnalysisBrand CultureHeritage & TimelineFinancial OutlookCompetitive AdvantageTarget Market Strengths/Weaknesses

Page 3: Burberry Internal Analysis

-Quintessential British fashion with outerwear core

-One of the oldest & most respected British labels

-Leading luxury brand with global business found in 26 stores worldwide

-Iconic trench coat, trademark check and Prorsum knight heritage logo

-Brand leader in digital communication (social media, burberry.com, fashion shows)

-Personalized customer care offering consumers a superior shopping experience

-Social Responsibility (Burberry Foundation)

BRAND & CULTURE

Page 4: Burberry Internal Analysis

HERITAGE-Outerwear Core With Adventure/Exploration History

-Iconic Products

-Received Royal Warrant By British Royal Family

-World’s most recognized and widely copied tartan pattern (Burberry check)

-Past: Classic, rogue outerwear brand. Future: Next generation, fashionable youth. “Burberry chic”

Page 5: Burberry Internal Analysis

TIMELINE

Page 6: Burberry Internal Analysis

FINANCIAL OUTLOOK (2011-2012)

Page 7: Burberry Internal Analysis

COMPETITIVE ADVANTAGE

-Performance based advertising

-Cost effective for international banner and text ad campaigns

-Text and image ads supported

-Placement is automated, more relevant to users

-Ads are placed on a wide range of sites not just search engines

Page 8: Burberry Internal Analysis

TARGET MARKET

-Burberry maintains a broad appeal across dual gender audience, 20s to 50s

-People with a medium to high standard of living

-Accessible “functional” luxury

-Cross-generational: -Mature audience seeks classic appearance-Youth audience seeks innovative/contemporary design

Page 9: Burberry Internal Analysis

STRENGTHS & WEAKNESSESExisting Strengths-Strong/proven management team

-Licensing growth. High incremental return on incremental capital

-Well-established luxury brand with classic heritage products

-Powerful celebrity endorsements

-Iconic products, logo, check print

-Accessible “functional” luxury

-Progressive digital communication (website, fashion shows, social media)

Existing Weaknesses

-Low vertical integration reduces capture of margin and value from manufacturing

-Apparel segment has increased fashion risk but accounts for majority of profits

-Internal brand awareness confusion (Burberry London, Burberry Brit, Burberry Prorsum, etc.)