By: Amy Diaz-Hablich
OBJECTIVE This tracking report has allowed me with the opportunity to research and gain knowledge on past history as well as the current state of Burberry. This report will touch on key aspects such as background on the company, a quick overview of how this company is doing in the markets as of yesterday, competitors along with company’s markets and forecasting their direction. As well as recommendations on aspects I believe will help the company move forward.
MISSION Burberry is a luxury brand that is recognized internationally with a worldwide distribution network. The mission of the company is to maintain its integrity and vitality of their brand, at the same time, continue to develop a business, which remains relevant to ever evolving markets and consumer tastes. This mission statement shows that the brand mainly emphasizes on the integrity that is maintained from a long time keeping in mind the current demands and choices of the customers.
VISION Burberry works on maintaining the highest quality standards of their products. The brand is defined by its… • Authentic British heritage • Unique democratic positioning within the luxury arena • Founding principles of quality, function, and modern classic styles
HISTORY Burberry is a luxury British fashion house established in 1856 by Thomas Burberry, at just twenty-‐one years of age. Not only does it manufacture clothing, but also fragrances and fashion accessories. Burberry’s distinctive check pattern is one of the most widely copied trademarks in the world. The first Burberry store was opened in Basingstoke in 1856, and by 1870 had established itself by focusing on the development of outdoor attire. The brand is most well known for the creation of the trench coat primarily for the First World War, which became extremely popular after this. The iconic Burberry check was soon placed in the lining of the garments and sold more widely. Burberry was an independent company until 1955 when it was taken over by Great Universal Stores (GUS). Fake garments with the distinctive check printed on the outside were sold to the masses, giving the impression that Burberry was no longer exclusive and took away its high desirability. Since then the brand has tried to reinvent itself, with advertisements and celebrity endorsements. Today after so many years, the brand is distinguished by its women wear, menswear, children wear and non-‐apparel with its unique outerwear as the foundation.
COMPANY DESCRIPTION • • • • • • • • •
Well-‐established brand High price point causing high desirability Strong celebrity endorsements Distinctive check (instantly recognizable) Burberry competes mainly within the category of Accessible Luxury, and Intermediate/Unattainable Luxury Burberry’s management has made smart decisions in investing in revamping the brand as well as expanding it. In 2012, Burberry was the first brand to hit 10 million likes on Facebook, and remains the most liked brand on the social networking site. In 2015, Burberry is the first brand to get an Apple music channel Recently, the Burberry brand has decided to unite their three clothing lines under one label.
COMPETITOR AND MARKET ANALYSIS
Burberry competes mainly within the category of Accessible Luxury, and Intermediate/Unattainable Luxury. They have three primary collections, which include women’s wear, menswear, and accessories. Currently, Burberrys top three competitors are Polo, Armani, and Gucci. On the other hand, Coach’s competition is on handbags, as well as accessories. Coach has an advantage because they are priced low, affordable, and are accessible to the customers. Another competitor is Polo, which positions its market more towards clothing. It is ranked number two in the top luxury brands, and has a most market share for apparel but lower priced than Burberry. Other competitors being Gucci, Armani priced almost the same as Burberry but held a higher position than Burberry in the luxury brand section. In order for Burberry to manage with its competitors, the brand has adapted a style, which is known as endless fashion. To respond to the daily fashion trends, Burberry introduces its products on a collection basis. They have tried to maintain their collection and also kept in mind the competitor's collection, while brands like Coach and Gucci have more focus on accessories and Armani and Polo focus on the apparel. Burberry has succeeded in handling both apparel and accessories markets while remaining a luxury brand. Now that Burberry has one label for all their apparel and accessories line, they will be able to concentrate more on their products, and their customers.
SOCIAL RESPONSIBILITY Burberry believes that it is important to be a socially responsible business, including by supporting diversity and equal opportunities in the workplace, promoting fair and sustainable employment practices internally and across its supply chain and investing in the communities where its employees live and work. Diversity and equal opportunities • With employees in 34 countries, representing over 100 different nationalities and covering an age span of between 16 to 78 years, the Company remained committed to supporting diversity and equal opportunities. • As at 31 March 2015, of a global employee population of 10,851, approximately 69% (7,457) were female and 31% (3,394) male, with women occupying 46 (37%) of the 123 senior management roles. Human Rights Burberry recognizes its responsibility to respect human rights wherever it operates and has conducted a materiality analysis to identify its principal human rights impacts. • Burberry has an established global team who work to promote human rights and good labor practices in the Burberry workplace as well as in the Company’s supply chain as identified and prioritized through Human Rights Impact Assessments. • Burberry has established grievance mechanisms, including hotlines in its supply chain where local labor laws are weak, absent or poorly enforced, as well as globally for its own employees.
ENVIRONMENTAL RESPONSIBILITY
Environmental baseline assessment
Burberry’s Impact is focused on driving environmental and social change globally. Burberry is strongly committed to reducing its environmental impacts across the supply chain and internal operations and has set a number of targets to achieve this. • All of the targets are based on the results of the 2012 independent baseline assessment of Burberry’s environmental impacts arising from materials, energy, water, chemical inputs and waste measured in CO2e. • Focused on resource efficiency and mitigating climate change, all 15 environmental targets are owned and monitored by senior members of the Burberry team. Burberry’s global Environmental Policy governs the management of all of these impacts.
WORKS CITED http://www.slideshare.net/sophiemerritt/burberry-‐case-‐study?related=3 http://www.ukessays.com/essays/marketing/burberry-‐is-‐a-‐luxury-‐fashion-‐house-‐ from-‐britain-‐marketing-‐essay.php • http://www.burberryplc.com/documents/ar-‐ 1415/burberry_strategic_report_2014-‐15.pdf • http://bits.blogs.nytimes.com/2015/09/14/burberry-‐creates-‐a-‐channel-‐for-‐apple-‐ music/?_r=0 • http://www.burberryplc.com/corporate_responsibility/social_responsibility • http://www.burberryplc.com/corporate_responsibility • http://www.burberryplc.com/about_burberry • http://www.burberryplc.com/about_burberry/company-‐ history?WT.ac=Company+History • http://www.burberryplc.com/about_burberry/our_strategy • •