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Burberry Case Study

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BURBERRY
Introduction
Rose Marie Bravo, CEO for Burberry from 1997 until now (2003). Changed company from “heavily reliant on licensing and distribution ”(1997) to “leading luxury brand”(2003)
Revenue increase: £225 million in 2000 almost £600 million in 2003. She has been able to successfully steer the company through an initial public offering of 22.5% in 2002.
History: Founded in 1856 by 21 year old Thomas Burberry, who opened a draper’s shop and soon invented gabardine, a waterproof and breathable fabric that was chosen to be official coat of British Army in World War I.
In 1920’s Burberry check pattern – a camel, black, red and white plaid design was introduced and it became registered trademark. Celebrities (Humphrey Bogart …show more content…

Operated more than 132 company owned stores including London, Barcelona and New York flagship stores designed to display full product range. * Gross margin rose from 47% in 2000 to 56% to reflect brand’s new positioning. * Biggest design challenge was to create consistent brand image without risking to loose brand credibility.

Brand Portfolio:
(a) Burberry London – Core label
(b) Thomas Burberry (only in Spain & Portugal) lower-priced for younger, fashion-conscious customers
(c) Burberry Blue and Black for young women and men in Japan
(d) Prorsum – was introduced as hand-tailored from innovative fabrics, associated with haute couture. Aim to showcase new image to the top industry journalists and get editorial press for colledctions. First staged on catwalk show in September 1998 in London Fashion eek and honoured as British Classic Design Collection of the Year. Later, semiannualy showed at Milan Fashion week.
Advertising: New team of photographer Mario Testino (worked with Vogue, The Face, Vanity Fair), creative director Fabien Baron and advertising agent David Lipman was formed with £10 million advertising budget. Advertising campaign consisted of 2 parts:
(1) in 1998 model Stella Tenant appeared in Burberry outwear and conveyed brand values – chassic and chic and fun and witty.
(2) in 1999, model Kate Moss joined and iped years off the average age of customer with a shot

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