Binming Li 27428486

Burberry in A Global Market

An overview history

1891 founded by Thomas Burberry

1901 appointed to be military uniform

1910 first Burberry store in Paris

1911 support the exploration

of South Pole

1970 first Burberry New York store

2009 new London and New York

headquarters

2011 first Burberry Beijing store

2012 first Burberry Taiwan store

(Burberryplc, 2012)

An overview history

• Burberry is a luxury brand which possesses the traditional British style, which includes

• womenswear,

• accessories, handbags,

• footwear,

• menswear,

• children's clothing,

• beauty makeup, perfume,

• housewares and gifts

• Classic check pattern

(Burberryplc, 2012)

The development of Burberry in Japanese market

• Burberry negotiated a wholesale agreement with the Japanese retailers (Burberryplc, 2012)

• Burberry launched a different Burberry London lines for its Japanese market (Moore & Birtwistle, 2004)

•Products are distributed under the Burberry London brand name (ibid.)

Strategies of development

Targeting Positioning

Issues

Targeting

A new product allows the main brand to enter a different category market

Brand Extension

Allows the brand to develop into a new market segmentation

(Sungkyung, 2010)

Targeting

Burberry Blue Label

Burberry Black Label

•A leisure wear

•Targets younger women

•Targets at younger male consumers

•A collection of tailoring clothing and sportswear

•“Elegant yet affordable men’s fashion”(Monden, 2015, pp. 144)(Moore & Birtwistle, 2004)

Positioning

•Concept•The policies and actions that utilized to establish and maintain a certain image for a product inside the mind of consumers in order for the product to show certain characteristics that demanded by the targeted customer segmentation (Ferrell & Pride, 2010)

•Positioning of Burberry•A luxury brand with high taste and unique design for customers in higher social class

However…

•The alteration of creating a younger and more affordable brand image allows its consumers to re-interpret the brand (Tungate, 2012)•The price of Black label and Blue label exclusively for Japanese market which mainly target at younger customers is relatively lower and more accessible, therefore may cause a self-devaluation of brand image

premium market in Japan and other Asia markets

counterfeitinginfluenced by the slow economic growth

Issues

•Andante economic growth in Asian market

•A reduce in spending

•The demand of luxury goods decreases

•Make the brand less valuable

•Burberry should not be branded as a mass premium product

•Make the brand ubiquitous again

•Iconic symbols are copied by others

•The proliferation of symbols caused a damage of the image of the brand (Oswald, 2012)

•Asian market as the the main force in counterfeiting (Chesters, 2012)

Polo ArmaniCoach

Competitors in the fashion industry

Burberry and its competitors

Gucci

•Accessory•includes watches,•shoes, •scarves and•Handbags

•Low-end market•more affordable for massive consumers (Jacobson, 2015)

•Concentrates on apparel•A more affordable price•High quality (Jacobson, 2015)

•One of top 10 global luxury products•Focuses on clothing•Top luxury brands in the fashion market (Jacobson, 2015)

•One of top 10 global luxury products•Concentrates on luxury accessories (Jacobson, 2015)•Suffers the influences of counterfeit goods in its Asia market

Burberry and its competitors

Apparel AccessoryMakeup &fragrance

•Horizontal brand extension

•Enter different categories in the fashion industry

•The brand is more sustainable (Jacobson, 2015)

BibliographyBurberryplc (2012) “Fragrance and Beauty to be Directly Operated”. [Online]Avaiable at: http://www.burberryplc.com/media_centre/press_releases/2012/fragrance_and_beauty_to_be_directly_operated[Accessed date: 22.4.2015]

Chesters, L. (2012) “Far East Fakes: The Burgeoning Underworld of Counterfeit Goods”. [Online]Available at: http://www.independent.co.uk/news/business/analysis-and-features/far-east-fakes-the-burgeoning-underworldof-counterfeit-goods-8301450.html[Accessed date: 30.04.2015]

Ferrell, O. C. & Pride, W. M. (2010) “Target Markets: Segmentation, Evaluation, and Positioning”. Marketing. United State of America: Cengage Learning

Jacobson, L. M. (2015) “Burberry Case Study”. [Online]Available at: https://laurenmjacobson.wordpress.com/case-studies/burberry-case-study/[Accessed date: 25.04.2015]

Sungkyung, I. (2010) “The Comparative Study on the Extension Brands of Fashion Industry”. Journal of Fashion Business, Vol. 14, No. 3, pp. 97-115. Chungcheongnam-do: Sangmyung University

Monden, M. (2015) “Rugged Suavity: Take Ivy and IVY Illustrated”. Japanese Fashion Cultures: Dress and Gender in Contemporary Japan, pp. 144. London: Bloomsbury Publishing Plc

Moore, C. M. & Birtwistle, G. (2004) “The Burberry Business Model: Creating An International Luxury Fashion Brand”. International Journal of Retail & Distribution Management, Vol. 32, No. 8, pp. 412-422. London: Emerald

Nikkei (2015) “Burberry’s New Strategy in Japan”. [Online]Available at: http://asia.nikkei.com/Business/Consumers/Burberry-s-new-strategy-in-Japan[Accessed date: 22.4.2015]

Oswald, L. R. (2012) “Marketing Semiotics”. Signs, Strategies, and Brand Value. Oxford: Oxford University Press Tungate, M . (2012) “Controlling the Plot”. Fashion Brands: Branding Style From Armani to Zara (3rd Edition). London: Kogan Page Limited

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