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NUMBER OF WORDS: 2008
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EXECUTIVE SUMMARY
Creating a strong brand image is very essential for any brand. A company that has a
strong brand image is likely to have high profits. Another factor that contributes to high profits is
the ability to reach the target customers. Burberry is an example of a company that uses the two
factors to ensure great profitability. They use the SWOT analysis to know their area of weakness
while the strengths to keep their brand stronger. Through the use of the marketing mix and their
great distribution strategy, the company is able to show a great performance in the financial
market. All this is shown in the report.
Table of Contents
Introduction..........................................................................................................................3
BRAND OVERVIEW.........................................................................................................4
Brand history and future..................................................................................................4
Brand image.....................................................................................................................5
SWOT ANALYSIS OF BURBERRY.................................................................................5
Strengths..........................................................................................................................5
Weaknesses......................................................................................................................6
Opportunities...................................................................................................................6
Threats.............................................................................................................................6
TARGETING.......................................................................................................................6
CUSTOMER PEN PORTRAIT...........................................................................................7
RETAIL ENVIRONMENT AND PRODUCT OVERVIEW..............................................7
Product.............................................................................................................................7
Price.................................................................................................................................8
DISTRIBUTION STRATEGY............................................................................................8
FINANCIAL POSITION.....................................................................................................9
RESEARCH CONCLUSION..............................................................................................9
RECCOMENDATION AND CONCLUSION..................................................................10
Recommendations..........................................................................................................10
Conclusion.....................................................................................................................10
References..........................................................................................................................11
Appendix............................................................................................................................12
LIST OF FIGURES
Figure 1: rating of Burberry brand in the market on a scale of 1-5 according to customers.
Figure 2: Burberry target customer pen portrait
Introduction
Burberry Group Place is a British fashion house that deals with luxury goods, distributing
fashion accessories, clothing, sunglasses, fragrances and cosmetics. What makes Burberry even
more famous are the trench coats it produces which were designed by the founders of the
company. The company uses its branded stores and franchises all over the world to distribute its
products. The company has Royal warrants from Queen Elizabeth II and the Prince of Wales
despite the Wales branch closing down. Burberry exists in the London Stock Exchange and is a
constituent of the FTSE 100 Index. The companys success is attributed to the strength of its
brand image and the high level of efficiency in reaching its target market. This project will
analyze the brand image created by Burberry brand and the strategies it uses to reach the target
customers. It is through this analysis that we will be able to understand the importance of a
strong brand image and ability to reach target customers and improve the companys
profitability. The project will also evaluate the 4Ps of the marketing mix that the company uses in
a way to increase their profitability. This will be performed in addition to a SWOT analysis that
also illustrates possible loopholes that exist in an organization hence prompting relevant groups
to develop measures that will address such loopholes. Further, the SWOT analysis indicates the
strengths of the company, the opportunities it can exploit, the threats it should avoid and the
weaknesses that it needs to work on. With Burberry as the brand to be studied, it is easy to see
how brand image as well as the ability to understand ones target customer appropriately is
essential in a company that seeks high profits. Using survey and analysis of secondary
information as the research methods, the report will show the performance of the brand in the
target market. The data obtained will then show the importance of a strong brand image and
ability to understand and reach the target customer to gain high profits.
BRAND OVERVIEW
Brand history and future
Burberry is a company that was founded in 1856 by Thomas Burberry when he was 20
years old. He opened the first store in Basingstoke and by the year 1870, the store had a
reputation for its distinctiveness and quality wear. Gabardine which is a hard wearing and water
resistant fabric was Burberrys 1880 invention. In 1891, Thomas opened his first store in London
which has been the companys headquarters since then until recently when it changed. At around
this time, the customers called it Burberry of London and it was due to this reason that Thomas
changed the stores name to Burberry. After Ross Bravo was appointed CEO, the company set on
re-branding and focused more on design, which by the dawn of the 20th century brought financial
improvements. The success of the company continued when Bailey became the CEO as he
rejuvenated the brand image while taking heed of the companys heritage. Since then the
company has continued to show great trends in the market (Weathersby 2003). If Burberrys
future is to be predicted, it is clear that it will have great improvements especially in Britain as it
always has its distinctive British identity. Other things that would facilitate its future growth are
the strong management the company has, the innovative culture of the brand and most certainly
the unique products that they sell. There is hence an assurance of greater profits for Burberry in
the future.
Brand image
Brand image is the perspective from which consumers view a certain brand. In the case of
Burberry brand, the users view Burberry as a friendly, innovative, artistic and reliable brand
(McDowell 2009). Figure 1 shows customer reviews on the brand.
SWOT ANALYSIS OF BURBERRY
Strengths
Burberry has a strong management that has a long term positive effect on the firm. It is
due to its management that the company stays at the top at all times. The other factor that works
to the advantage of the company is the innovative nature of the company. This innovative nature
helps the company in producing unique goods that meet the target customers needs (Weathersby
2003). The strong brand image and name that the company has is also a contributing factor to its
great success.
Weaknesses
A great weakness that Burberry may have is bankruptcy that may arise from high debts. If
the company continues to take more loans, it may come to a point where it cannot be in the
market anymore and therefore it will close (McDowell 2009). The company also has a weak cost
structure in that the prices of competitors are way too low compared to those of Burberry. This
can hence lead to decrease in profits.
Opportunities
Burberry only exists in 50 countries. This therefore indicates that there is still space in the
international market where the company can invest (Weathersby 2003). The new opportunities in
the international market may be a chance of the company to increase profitability based on
increased sales.
Threats
In the market there are always new entrants who are very competitive and may want to
take the position of Burberry in the market. This poses as a great threat as those competitors may
lure the customers with superior products at lower prices (McDowell 2009). This will therefore
lead to Burberrys poor performance which means low profits. The availability of substitute
products in the market is also another problem to Burberry as it limits them from controlling
their prices.
TARGETING
In gaining the data to use, the report employed primary and secondary research methods
as necessary. The primary research method used was survey while the secondary research
method used was the analysis of secondary data which meant the use of other peoples books and
research studies on the subject. From the research, it is evident that most of the items in the
stores were meant for people between the ages of 18 and 55+. With regards to income, the brand
targets people with a range of $ 55,000 which means it targets the middles class and the wealthy.
The company accommodates both the conservative consumers and those that are keen on fashion
trends (McDowell 2009). It has products for both people who would love traditional wear and
those who would love trendy attire.
CUSTOMER PEN PORTRAIT
Sex The brand targets both male and female customers.
Age The group that the brand targets most is those between the ages of 18 and 55 going
forward.
Lifestyle It offers products to the people who love traditional wear and also to those
who like products that are on fashion.
RETAIL ENVIRONMENT AND PRODUCT OVERVIEW
The product range (Price and Product) usually relies on the retail environment (Place and
Promotion). The prices and products though may differ according to the type of store opened.
Product
Burberry offers a number of products which are either for use by men or women. These
products include coats, bags, shoes, scarves, gifts, accessories and beauty products. The price of
these commodities may differ based on the location of a store (McDowell 2009). For example, in
a place where there is cold weather in most seasons the prices are usually high. The prices of
products in wholesale stores and flagship stores that are also not expensive compared to the other
retail stores that sell the companys commodities. The products available also depend on the
place a store is located e.g. in countries in the North Pole warm wear is required.
Price
It is important that every business promotes the target customers by advertisement or
offers. During promotions the products are usually sold at cheaper prices. The stores that are
more likely to feature promotions are the online stores and retail stores as they feature direct
customers. The promotions that usually exist in wholesale stores are for the retailer who will
purchase the products for resale (McDowell 2009). Places with more rich people are likely to
have a store that sells products at very high prices compared to the areas with low social class.
The reasons for creating differing retail environment and product mix is because the
product or brand wants all categories of people to feel recognized (McDowell 2009). The brand
identity therefore portrays itself as true as people from different geographical positions and social
classes are all accommodated by the brand.
DISTRIBUTION STRATEGY
The distribution strategy of Burberry is usually done in steps. The first step is the control
of inventories. The inventories are divided into dry and wet categories after which good
calculation of quantities is made to save costs and time. After that they look for a perfect position
to set up their stores and use enough research and allocation of resources to target their
customers (Chevalier 2012). The last step is that they ensure efficient customers in their brand
distribution.
FINANCIAL POSITION
The Burberry brand still is a significant brand in the British luxury fashion. The company
has had great fortunes in the recent past which is we can say is from the influence of its brand
image and its efficiency in reaching the target market effectively. The company continues to
gather great interest as it is focusing more on the super premium beauty and time pieces
(Chevalier 2012).
RESEARCH CONCLUSION
The brand Burberry has been in existence for a long time. With the time they have been
in experience, they have managed to build a strong brand image to the target customers. This has
worked to their advantage as the number of their customers has been on the increase. Using their
distribution strategy they have been able to reach a great number of their targeted customers. It is
through numerous researches that the brand is able to know their target customers based on their
location. They usually regulate their prices and product range depending on where they have
located their branches (McDowell 2009). For example in china where there has been growth of
the luxury brand market, they usually sell their products at higher prices but in other areas that is
occupied by the middle and lower class people, the brand has to regulate their price by lowering
it so that it can fit the social class of the surrounding social class. The brand uses its strengths in
fighting the competitors and ensuring they still top in the financial market (Chevalier 2012).
They also look into their weaknesses and try to mend the areas where there are problems. This
way the company has become very successful and that is why it is still in existence even after all
those years
RECCOMENDATION AND CONCLUSION
Recommendations
The Burberry brand mainly targets the age group of 18-55+. The brand should however
try and increase their specialty in kids wear as it will increase their profits more. The kids wear is
one area in fashion that is usually not occupied by many brands and therefore by venturing in the
market fully will add to their profits.
Another thing that is recommendable for the brand is to maintain its prestigious nature as
a luxury brand by continuing to invest in the digital market. There are people who love luxury
brands just because of their luxurious nature (Chevalier 2012). Maintaining the prestigious
nature will ensure that the people who love the brand for its prestigious nature will love it even
more and it will also lead to the attraction of new customers.
Conclusion
The brand Burberry is a great example that shows the importance of having a strong
brand image and the ability to reach target customers. The brand tries its best to maintain its
brand image as a way of drawing customers to the brand. It also makes adequate research on its
customers and that way they are able to reach their customers effectively therefore ensuring
customer satisfaction at all times. The brand however should try and make some changes in their
produce to fit other categories like the children to increase their profitability. The brand should
also try and maintain its prestigious nature by venturing more into the digital market for the
purpose of those people who love the brand because of its prestigious nature. This is another way
to increase the profitability of the company.
References
Chevalier, M. 2012. Luxury Brand Management. Singapore: John Wiley & Sons.
McDowell, C. 2009. "Christopher Bailey: Burberry's golden boy". The Times. [Retrieved
17 November 2014].
Weathersby, W. 2003, Burberry, New York. New York: Architectural record
Appendix
.
Figure 1: rating of Burberry brand in the market on a scale of 1-5 according to customers.
figure 2: Burberry target customer pen portrait
SexBoth
male and female
Burberry
Target
customers
Ag
e- 18-55
and above
Lifestyleaccommodates both the
traditionalists and the new
trends fashion icons
