NUR IZZATY SYAFIQA MOHAMAD816389UMMI RAIHANA KHAIRUDDIN816199

Burberrys founder : Thomas Burberry, 21-years-old, opened a drapers shopCreate Trench Coat that made from gabardineBurberrys trench coat was chosen to be an official coat for British Army in World War I1920s; Burberry check pattern became a register trademark. They introduced as a lining to its signature trench coatMake Burberry as a symbol of both luxury and durability1955; Great Universal Stores Plc. (GUS) a British company had bought BurberryBurberry had lost much of its exclusivity because the wholesalers sold to unauthorized distributors

BEFOREAFTERInvented gabardine; became anyones choice especially people who had passion venture into extreme conditions Official coat for British Army in World War 1This Burberry check pattern became a registered trademark. Politicians, celebrities, famous adventurous also British royalty wear BurberryJapan discovered brands iconic check, GSU agreed to license the brand in Japan, became common brand, particularly in AsiaThe brand skewed to an older customer base especially older males and Asian touristsBravos goal; transform Burberry from a tired outerwear manufacturer into a luxury lifestyle brandIntroduced packaging, changed companys name & contemporary logoAttract younger customer, maintain Burberrys core customer Hired a new design team & came out with the new product lineDivide into three categories which are womenswear, menswear and accessories.

Core customer of Burberry consist of people who loved to wear something classic yet contemporary, luxuryA waterproof and breathable fabric; it is suitable for anyone who loves venturing into extreme conditionsBurberrys first introduced as official coat of the British Army in World War IAfter introduced check pattern; more celebrities, politicians, famous adventurous seen in Burberrys checkKing Edward VIII is one of the Burberry wearerBurberry brand became a license. customer concentrated among older males and Asian touristsAttract younger customer but still remain the customers base Process of developing its childernswear line

Goal; transform Burberry from a tired outwear manufacturer into a luxury lifestyle brandAttract younger customerThey want to create a following and loyal base customerReach the customer, they can continue to broaden their brand while being profitableBurberry began to find out that their brand is becoming popular in the hip-hop and urban youth communityNot only going to attract female young customer, but male customer tooHired new design team, come out with a fresh look Because they have to study the lifestyle of the youngest in every country

5 Strengths of the current brand positioning strategy:

Leading strong brands Channel expertise

Global portfolio Leading employer in luxury and functional brands Multi category competency

5 Strengths of the current brand positioning strategy:1) Leading strong brands

Strong brand will exists in the mind of the consumerSum of thoughts and feelings about a particular company or productBurberry brand values constantly evolve to suit changing market conditionsBurberry has iconic of trench coat which linked to British heritage and it is unique positioning within the luxury brand

The adoption by: ; Humphey Bogart and Ingrid Bergman in Casablanca ; Peter Sellers in The Pink Panther ; Audrey Hepburn in Breakfast at TiffanysTrench coats have been expanding their consumers by famous aviators, balloonists, and expeditionists seeking to conquer the South Pole and Everest

2) Global portfolio

Burberry has been expanding their brand portfolio with a label called Prorsum; Burberrys new positioning in the luxury market; Hand-tailored from innovative fabrics; Have a good quality ; Featured with haute couture; Provides a high profile and high end brand; Was placed in the best stores in the world; Successfully and honoured as British Classic Design Collection of the year during its first catwalk show (London Fashion Week) in September 1998

Burberry also famous for its trademark check In 1920s, the Burberry check pattern was introduced with a camel, black, red, and white plaid designThe celebrities, well known adventures, and politicians were often seen in the Burberry check The use the check can be seen even in everywhere such as on socks, scarves, shoes, hats, coats, pants, jackets, umbrellas, eyeglass cases, and othersBurberry trademark check was bring some soul to the consumerThere was about 25% of all companys revenue was derived from prominent check product

3) Multi category competencyThree primary collections :; Womenswear; Menswear; Non apparel which are accessories WomenswearWomens apparel styles for each season Offer about 450 to 500 womens apparel in autumn, winter, spring, and summer season.Burberry womens apparel stands for sporty, functionality, and protection ; Eg - Casual wear, swimwear, and others

Menswear The company offered 330 to 350 styles per season including tailored suits, raincoats, trousers, and shirtsThe collection had been updated to include a wider variety of fashion-influenced apparel AccessoriesSoft accessories - scarves, shawls, and tiesHard accessories - handbags, small leather goods (belts and wallets), womens shoes, luggage, and othersBurberry had a wide range of price points made them able to attract potential new customerSo, with multi category of products, Burberry can maintain their market and revenue growth for long term target as they also can expand their targeted consumer in the market

4)Channel expertise Through licensing and wholesaleLicensingBurberry works with licensees, a company who had the right to design, manufacture, and distribute products under the Burberrys name when Burberry require specific expertise to produce some products that was outside of Burberrys core skills such as fragrances, eyewear, and childrenswearThe licensees received 10% royalties of Burberry revenue.Help Burberry to expand their product and fulfil the needs of the consumerThey are not only concentrate to their main products in apparel but also try to enter and build a new product even they are lack the expertise to produce more products.This is one of key that Burberry success to sustain their growth in market

WholesaleBurberry had 3,162 wholesale doors worldwide, including;434 departments stores 2,728 specialty stores 132 company-owned stores, including newly opened flagship stores in London, Barcelona, and New York City. The stores were designed to display the full product range, showcase the vision, and act as a testing ground for new concepts and designsBurberry stores are among the best tool to communicate the full brand message of Burberry

5)The leading employer in luxury and functional brandsRestructured the strategies and updated the companys product lineBurberry core consumer consist of politicians, well known adventures, and the celebrities that they were often seen in the Burberry checkBurberry also decided to attract younger customerBurberry brand increasingly became a luxury brands that was aspirational, stylish, and innovativeRepresent their product as accessible luxuryDistinguishes Burberry with other product is the functionality of the brands; Eg: A trench coat is not known as luxury brand but also give the functionality to the consumer that keep consumer warm and dry.

2 major product categories of Burberry current product mix:1)MenswearThey have tailored suits, raincoats, trousers and shirtsAccessible luxury and one of the fashions influenced apparel, they will deals at least 300-350 styles per seasonUse the iconic Burberry plaid in a more understand mannerYoung generations, they want a young guy looks hot while wearing Burberry clothes on their bodyThe older generations, Burberrys team want they to appeal the guy who wants great quality and modern and yet still looks classic

Burberrys target a broad range of customer for menswear They want to reach the different generations.This clearly shows when the menswear gained sales every yearThe profit of sales still increase 2000 (73.8mil), 2001 (142.4mil), 2002 (149.4mil) and 2003 (162.8mil).

2)AccessoriesDivided into two :-Soft accessories include; scarves, shawls-Hard accessories; more to handbags, luggage, womens shoes, umbrellas, eyewear, timepieces and small leather goods for instance belts and wallets. Since the price is affordable, and theres no size for specific accessories and they were less fashion-oriented yet less risky so its easy for to attract new customersHead of accessories, Pamela Harper said, Accessories are a piece of the dream

Sales of Burberrys accessories are quite encouraging compared between year 1999 and 2003 The sales of their core accessories are handbags from 36% to 49%, small leather goods from 16% to 18% and 7% to 8% for silks, accept scarves / mufflers dropped from 41% to 25%.

Strategies that the company may consider to adopt:

a) Product extension (eg: footwear, fragrance, and childrenswear)

i) Expand, maintaining and add value to the product- Elevate the value of their product extension by; : Maintain a high quality : Create the uniqueness of the product : Build a creative of packaging and labelling - Consumer can distinguish the uniqueness of the product

FOOTWEARDifferent colourCreate footwear for all level of age Affordable price Maintain a high quality

Can attract more target consumer from kids, teenager, and adultsThey feel like they are part of the brand experience

Need to deliver the uniqueness of the product to consumer which able to change the consumers mind to accept their product extension like their strategy to create a new perfume line with the trademark checkThey need to maintain their trademark checkThis can considered as one of a strategy of Burberry to expand the product line indirectly as a key for the companys growth plan because the product with Burberry check generate the profit for Burberry FRAGRANCE

CHILDRENSWEAR Newborn Kids

They are not only focus for womenswear and menswear collection but expand the product line to childrenswearThis move would be the best move for the Burberry brand Loyal customers of Burberry would want their children to follow suit and dress in their favourite fashions, and other consumers would want the luxury of Burberry for their children

ii) Upgrading the wholesale stores Burberry can allocate the product extension in many stores together with their core productThis strategy can help a company to introduce and promote the product extension to the customerFurthermore, Burberry needs to enhance the service of their storeThis is important to be industry leading standards of customer services in Burberrys storeEg: Burberry can open the service customer counter ; as one of initiative for Burberry to discuss the specific requirements or questions of customer.

By enhancing the service of store, the customer would feel comfortable to get information regarding on Burberry product especially the product extension of BurberryWhen Burberry builds the best wholesale stores in the world, it determines the availability of the productIt is part of product placement and shows how Burberry is going to make the product available to the customer and how intense the brands exposure and greater availability to consumer markets.

b) The existence of non-target customersi) Build a loyal product base By apply and keep the luxury image that they create for core customer to non target customerBurberry needs to reposition the brand to attract non target customer in order to sustain the market growthThe younger is one of example of non target customer for BurberryBurberry still can create and build a product that offer a luxury image of Burberry product to non target customer that offer with aspirational, functional, high quality, and luxury.

Eg: Burberry needs to expand their product extension like fragrance to the market and change the fragrance line to new customer This type of product is less expensive rather than their core product and the non target customers will afford to own one of the Burberry productsBesides, the fragrance line can add not only Burberry Brit for women but include mens line and teenager.This can help Burberry to expand the consumer in the market, means they should not offer one product to one gender and same level of age only

Since the non target customer able to buy the Burberry fragrance that offer with affordable price, high quality, attraction and different scents and designs, the non target customer will give their brand loyalty to the Burberry product since it fulfil their desires. With all the criteria of the Burberry product, they are not only offer the product as a luxury brand to core customer, but it helps to attract the non target customer to enter into Burberry market

ii) Organize a promotion strategy To attract the non target customers while retaining their core customer Without decreasing the price of the Burberry product, Burberry still can maintain their price strategy by give the discount for the product Burberry get to maintain their image as luxury brands rather than decrease the product that will give a negative impact and reduce the quality of Burberry brands It is a good idea for Burberry to let the non target customer enter to Burberry market as it shows that Burberry campaign to revamp the company is working

c. The extensiveness use of the check (logo)i) Advertising Emphasize on advertising to promote the use of the check for Burberry productThrough public relations using various newspaper, magazines, and the best way is using billboards at selective placesThe check is history of Burberry; they need continuously expand the core values and drive consistently the use of checkSuccessfully revamp the companys product line and next, revenue of Burberry had grown from about 225 million in fiscal 2000 to almost 600 million in fiscal 2003.

They need contribute more and great idea to describe the use of check and the uniqueness of this trademark Shows the differences to another product in the market Burberry should try in different ways to introduce the uniqueness of their product for the use of check; that enable them to expose and deliver the products to the customerThe use of check brings some soul to the product so the customer interested in getting the collection with Burberry check.The use of check not only can be seen with trench coat, but the check has appeared everywhere such as on socks, scarves, shoes, hats, jackets, and pantsContributes significant profit for Burberry but it gives a very amazing impact for Burberry

ii) Change the strategy to redesign the uniqueness of the product

Redesign the product and produce limited designChange the design of the product with intense colour, a cute, sweet and elegance design with variety of choice for customerThe needs and desire of customer will keep changing based on changes of world fashionBuild their product with a new and fresh idea based on current fashion and market.

d) Future product positioning-As a consumer's view of a product as compared to its competitors-Positioning helps establish product identity within the eyes of the customer

i) Conducting the online survey Helps Burberry to get a feedback and any comment or recommendation for the current or future Burberry productAble to get the information from customer To get the worldwide response.Will success to revamp the strategy to create the other product line in order to expand their targeted customerAble to know the strength and the weaknesses of their productSo that they can create another strategy to improve the product based on needs and desire of customer

ii)Sustained in three pillars which are:

Design-Produce the variety of product with the attractive of design for all the level of age and gender. Product-Three primary collections : womenswear, menswear, and accessories-Next, they expand the product line into cosmetics, fragrance, and childrenswear

designcommunication

-Famous for their trademark check;As a unique symbol;When the customer buy the product with the trademark check, the customer will know that is the label or the trademark of Burberry;This strategy help Burberry to expand the market by attract non target customer especially the youth, hip hop musicians while remaining the core customers in the market

Communication-Company had 3,162 wholesale doors worldwide;department stores ;;specialty stores; flagship stores in London, Barcelona, and New York City-By maintaining a worldwide wholesale and store around the world, Burberry can ensure that the customer will able to get their product in everywhere for each country as well.

Burberry is a unique brand because it has a great history and British heritageBurberry has positioned its brand in the minds of consumer to be functional luxuryWhile retaining Burberry core customers, they were expanded to youth and hip-hop musician customersThis strategy has been to develop and expand Burberry targeted customer This is shows that Burberry was success to restructure the companys product lineBurberry successfully revamp the companys product lineRevenue of Burberry had grown from about 225 million in fiscal 2000 to almost 600 million in fiscal 2003