Burberry 6 Month Plan

Ashley Chan

Taylor Miller

Taylor Vrscak

TABLE OF CONTENTS

OBJECTIVE

5

HISTORY

7

MISSION STATEMENT

9

IDENTITY

11

SIZE & SCOPE

13

COMPETITORS

15

CUSTOMER PROFILES

21

TARGET MARKET

25

MARKETING STRATEGIES

27

TRENDS

45

PRODUCT MIX

51

OPPORTUNITIES

55

6 MONTH BUYING PLAN

57

ASSORTMENT PLAN

61

STATEMENT OF OPPORTUNITIES

63

BURBERRY

Table of Contents

3

OBJECTIVE

The purpose of this project is to create a six-month buying plan that shows a consistent flow of receipts. We are buying for Burberry Fall/Winter 2015 Women’s Outerwear. In this book we will discuss and analyze demographics, psychographics, as well as trends that could influence our buying season.

BURBERRY

Objective

5

HISTORY

BURBERRY

History

7

MISSION STATEMENT

A global luxury brand rooted in its ambitions to deliver timeless elegance through excellent craftsmanship, innovation, and design

BURBERRY

Mission Statement

9

IDENTITY

An iconic brand with a rich heritage since 1856 that combines technology and creative innovation with tradition

BRITISH, MODERN, TIMELESS

BURBERRY

Identity

11

SIZE & SCOPE

2013/2014 Revenue $120 M 3% $953 M 27% $2,456 M 70%

Retail (Including Online

Wholesale

Licensing

• 497 operating stores in 32 countries • Burberry.com operates in 11 languages • 7 0 franchise stores in additional 27 countries • 1,400 department & specialty stores in over 80 countries • 10,000 employees in 34 countries • P roducts sold to end consumers through different channels:

-retail (including online): 70%

-wholesale: 27%

-licensing: 3%

BURBERRY

Size & Scope

13

COMPETITORS

RALPH LAUREN • American lifestyle brand centered around delivering quality goods for men, women, children and home • 11,500 locations world wide including upscale and mid-tier department stores.

• 435 Ralph Lauren and Club Monaco retail stores worldwide • Operates in North America, Europe, Asia, and Latin America

$3,495

$2,195

BURBERRY

$1,295 Competitors

15

MAX MARA • An Italian luxury brand specializing in outerwear, clothing, bags, accessories and shoes.

• Operates in 105 countries, both directly and through the other 10,000 multi-brand stores • 2,300 stores worldwide in Europe, North America, Africa, Asia, South America, and Australia

$3,800

$4,045

BURBERRY

$4,173

NEIMAN MARCUS • High end luxury department store specializing in apparel, shoes, accessories, cosmetics etc.

• 41 store locations in the U.S. • Plans to expand international in Asia

Bottega Veneta $5,400

Valentino $8,690

BURBERRY

Christopher Kane $3,840 Competitors

17

BARNEYS • Barneys New York is a luxury department store also featuring Designer Apparel, Beauty and home. • 30 locations (New York City, Beverly Hills, Boston, Chicago, Dallas, and other major cities; as well as a dozen other stores and outlets in smaller markets. )

Balenciaga $5,400

Saint Laurent $4,790

BURBERRY

Jill Sander $4,630

SAKS FIFTH AVENUE • Saks Fifth avenue is a luxury department store that specializes in Designer apparel (men, women, children), accessories, shoes, handbags beauty and home.

• 41 Saks Fifth Avenue stores in the U.S. and plans to add as many as seven in Canada • 22 states (including NY, NJ, MA, and CT)

Acne Studios $3,700

The Row $5,390

BURBERRY

Alexander McQueen $3,895 Competitors

19

CUSTOMER PROFILES

BURBERRY BRIT Name: Emily Age: 28 Status: Single Occupation: Graphic Designer Location: New York City Car: Taxis, Subway Reading: Vogue, Nylon Music: alt-J, Ben Howard, Lorde Favorite Restaurants: Gallow Green, Berry Park Hobbies: Reading, checking out new local bands, barhopping Favorite Stores: Urban Outfitters, Topshop, American Apparel

BURBERRY

Customer Profiles

21

BURBERRY LONDON Name: Kate Age: 35 Status: Married with second newborn Occupation: Works in the corporate world Location: Chicago Car: Silver Mercedes-Benz C400 Sedan Reading: the occasional Vogue, Elle Decor, classic novels Music: Clean Bandit, Sam Smith Favorite Restaurant: The Signature Room Hobbies: bike-riding along the lake front, eating healthy, traveling, singing Favorite Stores: Neiman Marcus

BURBERRY

BURBERRY PRORSUM Name: Anna Age: 27 Status: Single Occupation: Curator of an art gallery Location: London Car: Chauffeured around Reading: Pride and Prejudice, Jane Eyre, Sense and Sensibility Music: Elton John, 1975, Kings of Leon Hobbies: Philanthropy, fashion, art, and hosting parties Favorite Stores: Hermes, Fendi

BURBERRY

Customer Profiles

23

TARGET MARKET

MILLENNIAL Burberry was among the first to spot millennial potential • Influencers • Geared towards an experience rather than brand name & logo • Non-conformists; which breaks the tradition of luxury brands •Want production practices that are environment & worker conscious • By 2026, main consumers of luxury will be millennials

BURBERRY

Target Market

25

MARKETING STRATEGIES

Marketing Strategies

27

DIGITAL MARKETING • More than 60 percent of the brand’s marketing budget is towards digital marketing.

• In 2010, Burberry became first brand to live broadcast a runway show • In 2011, Burberry launched it’s online mobile site, compatible with smartphones and tablets • Holographic & 3D runway shows

BURBERRY

Marketing Strategies

29

SOCIAL MEDIA

•Facebook: has over 18 million likes •Twitter: 3.5 million followers •Instagram: 2.4 million •Youtube: 147,186 subscribers

BURBERRY

Marketing Strategies

31

ART OF THE TRENCH (2009) Burberry had a huge breakthrough with social media in it’s first major digital campaign, the Art of the Trench. The Art of the Trench allowed their trench coat enthusiasts to post a selfie, or picture to the official campaign site, where viewers could vote and comment on their favorite images, share with friends, or click on items that caught their eye that would take them directly to the site to purchase. In the first month of the site being live, it had over 7 million views, and the art of the trench site is still very popular today.

BURBERRY

Marketing Strategies

33 17

BURBERRY KISSES Burberry Kisses, collaboration with Google (2013) Delivers an emotional experience across devices. Consumers can send a message with one of their own sealed kisses. Through my research and experiments, both Burberry and Google were able to come up with face recognition technology that can detect the outline of the users lip through their webcam.

-253,000 search results for Burberry Kisses on Google -13,000 cities sent a kiss within the first 10 days.

-109 million miles traveled by kisses as of June 25, 2013

BURBERRY

Marketing Strategies

35

BURBERRY ACOUSTIC

Includes newly emerging British artists wearing clothing from the Burberry Brit fashion line. The campaign integrates music videos and interviews with the groups, and showcases them on the Burberry website.

BURBERRY

Marketing Strategies

37

BESPOKE (2011) Allows customers to customize their own personal trench coat. The customer has the option to design style & length, fabric & color, sleeves, lining, collar, buttons & hardware, belts, and monogram. This marks the brands first mass customization, but “it isn’t about selling coats to the masses, it’s customer engagement,” Angela Ahrendts.

BURBERRY

Marketing Strategies

39

“People remember things when they’re entertained, you push boundaries and you surprise them.”

-Christopher Bailey

CHRISTOPHER BAILEY

• Joined Burberry in 2001 as Design Director •In 2004, he came Creative Director for Burberry •Won Numerous awards including Menswear Designer of the year and Designer of the Year at The British Fashion Awards.

•In 2009, showed the Burberry collection in London (previously held in Milan) which brought back the reputation of London Fashion Week.

•2013, Became CEO of Burberry after Angela Ahrendts left her position to go to Apple.

BURBERRY

41

“I grew up in a physical world, and I speak English. The next generation is growing up in a digital world, and they speak social.”

-Angela Ahrendts

ANGELA AHRENDTS •Former CEO of Burberry

•She started to focus the marketing of Burberry on everyone & everywhere, especially the millennial.

•Everything should focus around the trench •She noticed the sales associates were not confident in selling a 1,000 coat.

•“ We created videos to demonstrate Burberry Craftsmanship: All the Collars are hand-rolled and hand-stiched. We equipped our sales associates with iPads and our stores with audiovisual technology to show these videos to best effect. We knew that beautiful compelling content would connect customers to the brand and our iconic trench” BURBERRY

43

TRENDS

THE SLEEVELESS COAT

Piazza Sempione

Alexander Wang

BURBERRY

Carven

Acne Studios

Trends

45

PRINT EXPLORATION

Valentino

Gucci

Moschino

BURBERRY

Sportmax

REINVENTED CLASSICS

Elie Tahari

Barbara Bui

Sonia Rykiel

BURBERRY

Versace

Trends

47

THE BLANKET COAT

Fendi

Chloé

3.1 Phillip Lim

BURBERRY

Sacai Luck

FRINGE

Tom Ford

Ralph Lauren

BCBG Max Azria

BURBERRY

Custo Barcelona Trends

49

PRODUCT MIX

Cape Coat

Fringe Coat

Fur Coat

Leather Jacket

Quilted Jacket

Trench Coat

BURBERRY

Product Mix

51

2013-2014 Revenue by Product Division •W omen’s: core outerwear makes up over half of revenue

$1,031 M 30%

$1,229 M 36%

$784 M 23%

•M en’s: outerwear makes up 40% of revenue •K ids’: outerwear makes up 35% of revenue

$227 M 7% $119 M 4%

Accessories

Beauty

Children’s

Menswear

Womenswear

BURBERRY

Apparel Pyramid

% of mainline retail apparel revenue Burberry Prorsum-5% The most fashion forward collection centered around runway shows, providing the design inspiration for the brand.

Burberry London-45% The tailed collection, typically what a customer wears on weekdays for work Burberry Brit-50% The most casual collection, typically worn on the weekend

BURBERRY

Product Mix

53

OPPORTUNITIES

• Th e use of innovative technology to engage the customer in an exciting and personal experience •C ollaborating with other brands to broaden their product outreach

BURBERRY

Opportunities

55

6 MONTH BUYING PLAN

BURBERRY

6 Month Buying Plan

57

NEW YORK MADISON AVENUE

BURBERRY

DALLAS

BURBERRY

59

ASSORTMENT PLAN

BURBERRY

Assortment Plan

61

STATEMENT OF OPPORTUNITY

We believe that it is highly achievable for us to reach our forecasted sales goals due to Burberry’s entire company initiative to provide the most innovative and quality products for our customers. By alternating the focus of the target consumers to the new generation of millennials who hold more than $200 billion in buying power annually, the new creative direction is sure to engage the new target market to help us reach our sales goals.

Burberry has become synonymous with the success of their digitally savvy approach to marketing and their annual sales growth is enough to convince us that it is a highly versatile company capable of adapting to the ever-changing tastes of consumers.

BURBERRY

Statement of Risk

63