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