Burberry
1. Executive Summary
Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced new challenges of brand sustainability and positioning in a volatile industry (fashion) where customer behaviour is unpredictable. Thus, it requires a strategy that lays foundations for long-term growth and addresses the issues related to the challenges of product extension, management of the Burberry check and customer segmentation.
To reach a recommendation, we come up with five criteria: Brand image; Financial implications; Competitive advantage; Market growth and Ease of business. As maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market we based our recommendation on this criterion.
Based on the situational analysis, we narrowed to the following three alternatives:
1. Status quo
2. Reposition the brand through segmentation of the market
3. Reposition the brand to target core customers
After careful scrutiny and evaluation of alternatives, we recommended that Burberry should reposition its brand in order to target the core customers. By implementing this alternative, Burberry will be able to sustain its brand positioning in the fashion industry, which would provide competitive edge to Burberry over the other luxury brands. Association with high-end customers would further enhance the brand image, which would be very helpful to sustain the market growth in global arena. Further, Burberry would be able to implement this strategy with...
Please login to view the full essay...