Luxury Good and Burberry

Topics: Luxury good, Brand, LVMH Pages: 6 (1719 words) Published: August 3, 2009
3.2.1Brand Equity
Earning the royal seal of approval and outfitting the Royal Army placed Burberry on the map as “the original British luxury brand” but somewhere along the line, it became the raincoat brand known more for outfitting stuffy elder statesmen than the cloth of choice for the glamorous rich and famous. Burberry revamped its brand image, hiring new designers who took the signature plaid from raincoats to bikinis. Recent ads featuring British fashion icons like Kate Moss and Stella Tennant embody the essence of the new Burberry, depicting a modern edginess merged with a classic British elitism. Though they faced alienating loyal customers, Burberry balanced innovation with tradition to create an authentic, yet altogether more contemporary luxury offering. Since its reinvention, Burberry's equity has only increased, both in awareness and in meaning, that meaning now being relevant to a much broader audience. 3.2.2Brand Position

Burberry under Bravo repositioned as a distinctive luxury brand with a clear corporate strategy aiming to broaden its appeal to new customers while retaining its traditional clientele. The reposition included •A highly distinctive advertising campaign

A change of name from Burberrys to Burberry
A strong in house design team and the launch of Prorsum
Closure of unprofitable and non-core retail stores in Europe •Opening a new flagship store in London- New Bond street
Elimination of inappropriate wholesale accounts including the termination of distribution to known parallel traders; •Upgrading of the international Burberry London product range, including the restructuring of its sourcing and pricing, and the elimination of unnecessary product variation.

Burberry competitors are primarily in the Apparel & Accessories Retail industry. Burberry also competes in the Cosmetics, Beauty Supply & Perfume Retail, and Apparel sectors. Challenges facing Burberry today include increasing competition in the luxury goods sector. Companies such as Barbour are making progress in areas dominant by Burberry. As time continues the new companies of today are becoming brands of tomorrow and the luxury market is becoming highly competitive. Principal Competitors: In competition with Burberry there are a lot of companies like House of Fraser plc; Polo Ralph Lauren Corporation, Coach, Gucci. Burberry is wedged between lifestyle represented by Ralph Lauren and fashion represented by Gucci. Burrberry has effectively addressed competition by placing itself carefully so as to avoid direct competition but complicating the issue was the fact that burberry’s brand positioning placed it in indirect competition with both lifestyle brands and fashion brands. 3.2.4integrated market channels

People use different channels for different reasons. Internet users bought products from a retailer’s offline store after viewing them on the seller’s Website.” Additionally, experience shows that television support for a direct marketing campaign can improve direct marketing response rates significantly. Each channel influences the others. Burberry operates e-commerce and other channels in the United States and across 26 European countries. Multiple channels converge into a unified user experience, if channels fail to offer a unified voice, look, and feel, Burberry may disappoint or frustrate customers. A multichannel user expects an integrated experience across all touch points with a brand or information source, and delivering on this expectation is the challenge for Burberry. This situation is more complicated by the presence of Burberry all around the globe. Till now Burberry effectively addressed integrated market channels. 3.2.5Price strategy

Prices had been raised to reflect the Burberry’s new brand positioning. Serving a niche market sandwiched between labels like Polo Ralph Lauren and Giorgio Armani in apparels, and between Coach and Gucci in accessories. Burberry offered...
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