BURBERRY & MARY KATRANTZOU An Analysis of the Global Luxury Market
Fig 1: Mary Katrantzou s/s 17. FIg 2 & 3: Burberry’s September Collection 2016.
MA Fashion Management & Communication International Marketing & Brand Management Sememester 1 Submitted 06/01/17 Carly Ryan 2
CONTENTS PAGE 4 PAGE 6
EXECUTIVE SUMMARY INTRODUCTION
COMPANY ANALYSIS PAGE 8 BRAND OVERVIEW PAGE 12 LOCATION PAGE 14 PRODUCTs & SCOPE
MARKET ANALYSIS PAGE 16 swot analysis
EXTERNAL ANALYSIS PAGE 18 PEST ANALYSIS PAGE 22 PORTER’S 5 FORCES PAGE 24 SHORT & LONG-term FORECASTS PAGE 26 CONCLUSION PAGE 27 REFERENCES PAGE 31 APPENDICES
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EXECUTIVE SUMMARY Luxury according to Jackson(2004) is characterised by three things: “exclusivity, premium prices, image and status which combine to make them desirable for reasons other than function�.
The luxury market is turbulent and greatly competitive, it is therefore instrumental for fashion labels to release lines that encapsulate all of these things, yet are still in keeping with brand values and identity. With a growing middle class and emerging markets in Asia, the demand for luxury is increasing simultaneously with the pressure to deliver. In this report I will be comparing established British powerhouse Burberry, with the emerging label Mary Katrantzou in relation to the current luxury market. I will be considering possible development strategies for both brands to ensure their economic survival.
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KEY WORDS Luxury Global Market- PLACE Burberry Mary Katrantzou STRENGTHS WEAKNESSES IMPROVEMENTS research fig 4 & 5: mary katrantzou s/s 15.
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INTRODUCTION The global luxury market is subject to constant change, the main markets in luxury consumption have moved to the East, with the impact of political upheaval in the United Kingdom concerning Brexit and the election of a new president in the United States, the economic impact is yet to be fully disclosed. It is therefore increasingly important for brands to have robust business plans that cannot be easily weathered. In this report I will be examining the brand strategies of Burberry and Mary Katrantzou to unveil their successes and potential failures. This can be fundamentally broken down into three chapters, company analysis, market analysis, and external analysis. The first section will therefore take into account each brand and their marketing mix, paying particular attention to both location and product ranges. The second chapter’s focus will shift to comparative analysis, and where
either brand sits amongst its competitors in the luxury market. Finally I will consider the external impacts; drawing from the PEST and Porter’s five forces model and analysing both short and long-term forecasts. My aim in essence is to investigate how both brands can be developed to their full potential and what they can take from one another to do so. METHODOLOGY
I will consistently be referring to my own personal research, which includes an observational study of the Manchester Burberry branch, a market research report for Burberry, and an analysis of brand advertising in a series of fashion magazines.
BREXIT: An abbreviation for “British exit”, “brexit” makes reference to the 2016 referendum where British citizens voted to exit the European Union.
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Fig 6: Lily Aldridge in Burberry for Harpers Bazaar Singapore.
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COMPANY ANALYSIS BURBERRY
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Burberry has a history that is iconic. Their heritage is something that has been embedded within English culture as well as the brand itself, it is reflected in their values and their image. When people think of Burberry they almost simultaneously think British. Founded in 1856 by Thomas Burberry, the creation of the waterproof fabric gabardine paved a colourful, if beige and red chequered history. From Sir Ernest Shackleton the Arctic explorer, to Betty Kirby Green who broke records flying from London to Cape Town, Burberry dressed them both. As of 2016 Burberry have a very clear-cut brand image, and this is one factor of their success. “WE’VE GOT OUR OWN DNA.I DeSCRIBE IT AS DISHEVELED ELEGANCE, THIS BEAUTIFUL CRAFtMANSHIP WIth SOMETHING A BIT BRoKEN UP. THAT’S VERY CLOSE TO MY PERSONAL VIEW ON DESIGN.” Christopher Bailey burberry ceo (cited by bailey, 2011)
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Fig 7 & 8: sara donaldson styles the burberry trench.
COMPANY ANALYSIS MARY KATRANTZOU
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“Mary has not only created a strong and hugely appealing identity for her work but she has put in place measures thatshould ensure an exciting and successful next stage of her career.� Alexandra Shulman EDITOR OF BRITISH VOGUE (cited by milligan, 2015).
Mary Katrantzou on the other hand was first established in 2008, a Central Saint Martins graduate, she has forged a career with abstract prints and hyper-real graphics awash with colour. 2011 marked her as one to watch with the unveiling of her Spring/Summer interiors collection, which was quickly met by acclaim. She also holds the coveted 2010 Swiss Textile Award as well as the Vogue Fashion Fund prize from 2015, a marker of her quality and future potential. The brand currently has no shareholders and the business structure therefore remains small, however the introduction of new CEO Trino Verkade in 2015 was made in hopes of developing a sufficient senior team to manage the global expansion of the brand.
Fig 9: Hollie-May Saker in Katrantzou for Harpers Bazaar. 11
Fig 10: Burberry’s flagship store 121 Regent Street.
“Walking through the doors is just like walking into our website. It is Burberry World Live.” Angela Ahrendts burberry ceo 2006-2014 (Cited by Walker , 2013).
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LOCATION Burberry is currently sold in 52 countries, with 9 branches in London alone. In comparison, Mary Katrantzou is yet to lay claim to a store of her own. Her collections retail online and are also stocked by 250 different retailers worldwide. Burberry’s 121 Regent Street flagship however delivers the ultimate multi-channel experience, drawing on multi-media to explore the brand through every medium. Housed in a former theatre, the store reaffirms the importance between retail and customer experience. “Brands must react by creating full fashion experiences, that makes everything from the store itself to staff a brand touchpoint” (Varvatos,2016).
This is something Katrantzou however loses. Stockists although more accessible, only reveal a snippet of a collection, and the customer experience is reduced to simply a few items of clothing on a rail.
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The stores are an extension of brand image and despite the influence of online shopping people are still willing to shop in a physical retail store. Customers can engage with the displays in Burberry, the magic mirrors play runway shots of the clothes you are holding in your hands. Interactive, innovative and entertaining, it is much more than your typical bricks and mortar store. The shopping experience itself has been evolved, as September 2016 saw the “see now, buy now” model introduced. You can buy straight off the runway, and collections prior to the actual fashion shows. Where Burberry have innovated the shopping process, Katrantzou should do the same and consider pop-up stores to create some interest. Mary Katrantzou should look to Burberry for retail inspiration; a flagship would benefit the brand in regard to both customer experience and sales.
PRODUCTS & SCOPE “imagine a field of flowers. A field of flowers at its rawest and ripest. some side of vivid, petals just on the turn. And imagine it seen through a long-lens camera, perhaps while a bit tearful, perhaps while heartbroken and distracted. Hold that image in your mind: this is a Mary Katrantzou print.� The guardian (Cited by Wiseman , 2012).
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Burberry today is no longer just trench coats and scarfs, although this remains at the brands core. The Manchester store, which covers 2 levels, had the first floor primed to display these two products, please refer to appendix A. The trench coat is offered in 21 styles and up to 4 different colours and has a cult following, as seen with artofthetrench. com launched in 2009, a celebration of the coat in a series of streetstyle scenarios. The “brands origin, location and history act as a source of its credibility” (Okonkwo, 2007), which therefore explains why in a study 5 out of 10 Burberry purchases were those mentioned above, please see appendix B. The trench coat and chequered cashmere scarf, both made in England, embody Burberry’s heritage and its relationship to English culture. These products are essentially markers of the brand. Both Burberry and Mary Katrantzou have their trademarks, however the key to success is developing products beyond this. 30% of the global luxury market is made up of accessories (Bain & Company,2015).
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Both brands could therefore build upon this statistic considering the market potential. For Burberry their handbags are less revered in comparison to competitors Gucci and Louis Vuitton, although signature prints provide the foundation, they do not dominate the designs for the latter. There is room to develop and improve accessories for both brands, particularly in regard to handbags. In keeping with the luxury market, Katrantzou has instilled some very high price points, with a dress ranging from £890 to £5270 in price. For Jackson (2004), luxury can include high priced, yet accessible items, which “maintain a premium price differential” once compared to other similar products. T-shirts with the trademark prints at a high-mark up has the potential to open up another market, for those seeking luxury, but not with the four zero price tag. Christopher Kane has delved into accessible luxury with his line of t-shirts that retail from £145 to £595, and doing so has widened the brands appeal without dampening the exclusivity. Compared to Burberry, Katrantzou’s collection is considerably small, consisting
solely of womenswear. However a series of high profile collaborations has allowed the brand to delve into alternative areas, including sportswear with Adidas and shoes with Gianvito Rossi. Collaborations are not only beneficial for the emerging; H&M has seen partnerships with Stella McCartney and Isabel Marant to name a few. The most recent saw Balmain partner with H&M for a collection, which “debuted [after] months of hype” (Allwood, 2015) and sold out almost instantly. #HMBalmaination, the hashtag created in the lead up to the release has been tagged in over 82,000 instagram posts alone. Each campaign has the potential to boost brand awareness, as the H&M X Balmain has demonstrated. Collaborations not only enhance the public perception of a brand, they also open up the existing consumer circle, and this is something that Burberry could consider reflecting on Mary Katrantzou’s success.
Fig 11: Mary Katrantzou s/s 14. FIG 12: MARY KATRANTZOU RESORT 15.
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BURBERRY SWOT ANALYSIS A term used as an abbreviation for strengths, weaknesses, opportunities & threats, which is used as a tool to consider the positive and negative aspects of a business.
From the swot analysis, please refer to appendix C; the emerging brand raises a list of strengths not shared by the established. The addition of “Mary Likes�, a collection of art and design that inspire Katrantzou’s pieces on the website, allows customers to understand the thought processes behind the clothing. It is a personal touch, something that Burberry does not offer to the same degree. There are weaknesses within both product ranges, for Burberry they offer little couture options, particularly once compared to Mary Katrantzou. There is also an opportunity for Katrantzou to introduce entry-level priced items to draw in further sales. Social media is a major strength for both brands, and there are opportunities to innovate this medium to ensure the interest of potential customers. Katrantzou for one example could resurrect her YouTube channel.
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Fig 13 & 14: Mary Katrantzou a/w 16.
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PEST ANALYSIS BURBERRY
A pest analysis is a tool used to understand both market growth and decline. The term itself is an acronym for Political, Economic, Social and Technological factors.
POLITICAL
ECONOMIC
SOCIal
Technology
Brexit has reduced the value of the pound to around 10% against the euro (Hoang, 2016); this now makes the luxury market in Britain the cheapest in the world. Although the full effects are yet to be seen, this has helped to “buoy British luxury labels at least in the short-term” according to Luca Solca (as cited in Hoang, 2016). So where this may boost Burberry’s sales amongst tourists as a quintessentially English brand, Mary Katrantzou’s may fall by the wayside. Additionally concerning Burberry, sales in the United States are not particularly strong, and matched with the new presidential election in the US which “could trigger global economic and political mayhem” (Saminather, 2016), the political influences could hinder American sales even further.
Burberry reported a 3% fall in underlying sales in July (Butler, 2016) as sales across Europe are floundering in light of the terror scares in France. This has led to a series of economic led-decisions including unifying lines under one label and increasing the price of their core items. Each of which may dampen sales in the short-term, however could boost profits in the near future. Plans to invest £5m in a new manufacturing and weaving facility in Leeds have also been paused due to the current weakness of the pound (Armstrong, 2015), a move that could impact the brands authenticity.
Burberry is very much a social brand, with over 8 million users currently following their Instagram account. Behind the Claridge’s 2015 Christmas tree and a contributor to the Harrod’s Christmas window display 2016, Burberry is an attractive brand to shoppers, particularly tourists who when in London are more inclined towards the British luxury labels. There is a cultural link between Burberry and Britain and this is something the brand continually use to their advantage.
E-commerce only represents 4% of luxury sales, however 40% of luxury purchases are in some way influenced by digital experience (McKinsey & Company, 2014). Burberry has attempted to merge the two, with the introduction of the customer 1-2-1 service in 2013. Running through an iPad application tool, it allows sales advisors to create visual wardrobes and saved shopping preferences for customers. Katrantzou however is not utilising technology in her advertising strategy, and using her YouTube channel could be a powerful promotional tool. Burberry posts regularly, however Katrantzou’s channel has been vacant for over a year. Taking into consideration that Katrantzou has limited print advertisements; videos could be a cost-effective method to pursue.
Fig 15: LILY JAMES in burberry for L’OFFICIEL MALAYSIA. 19
PEST ANALYSIS MARY KATRANTZOU
Fig 16 & 17: the charm dress from Mary Katrantzou a/w 16. 20
Political
So whereas Brexit may
benefit Burberry in some way, the same cannot be said for Mary Katrantzou, as it unlikely that the influx of tourists will be drawn to Katrantzou in the same manner as Burberry. With the opening of a potential new store, there are also political concerns that need to be addressed, these include the Sales of Goods Act 1979 and Supply of Goods and Services Act 1982. “it’s your business, you want to get it right, so you throw yourself at it.” -KATRANTZOU (Cited by Garcia, 2016).
Economic
SociAL
Technology
The weakening of the pound has serious implications for the economy. One of which directly applicable to Mary Katrantzou is the possible threat of losing funding. As the sole shareholder, Katrantzou is a brand that needs a financial push. The Centre for Fashion Enterprise supports emerging labels, including Katrantzou with EU funding, and since Britain has now left the EU it is questionable how the CFE will continue to function. The CFE has “funding of £5.3m secure for a new three-and-a-halfyear project supporting fashion and tech pioneers in the UK” (Porter, 2016). Once the funding has cleared it is uncertain how start-up brands, including Katrantzou will be able to evolve into sustainable businesses.
In a study of four fashion magazines, please refer to appendix D, Mary Katrantzou did not have any advertisements featured. This limits the awareness of the brand, which further impacts the brands social and cultural influence. 6 out of 10 people believe advertising determines what is relevant (Van den Bergh et al., 2013) and Katrantzou is not using this to her advantage. Dazed & Confused for example was the only magazine that displayed campaigns for emerging brands such as JW Anderson and Christopher Kane. This insinuates that using an alternative magazine, such as Dazed, could be the platform Katrantzou needs for an additional boost in the global luxury market. Bloggers have become embedded within the fashion culture, and the brand is correct in trying to align their advertising structure to reflect this. For the Fashion Show Awards 2016, a Katrantzou dress was sent to British blogger Tanya Burr. The vlog covering the event was accessible to over three million of Burr’s subscribers (Burr, 2016), and is invaluable exposure for any emerging brand. This is something that Katrantzou should continue to explore.
For Katrantzou social media is the main avenue of advertisement. Her instagram feed is a collaboration of press-shots and regrams from celebrities in the clothing, which coincides seamlessly with the website. The “backstage pass” element to the website allows potential buyers to discover the interactions behind the scenes, with runway, model and garment production images. This allows customers to engage even further within the brand, and is something that Burberry could easily incorporate into their strategy. Digital marketing has the potential to further enhance the Katrantzou brand; interactive displays as Burberry have demonstrated, create a buzz for a brand. Runway images could be matched with animation, so the designs are literally bouncing off the screen. The butterfly motif for example with the Charmdress, as a motion image would mirror the energy of the designs, as well as providing an outlet for customers to both engage with and get excited by. This could be an addition to bus stops and store windows of stockists, until the brand has a store of their own to explore digital advertising in full.
DISCUSSION
Both brands are impacted by similar factors, particularly those political and economic. However due to the relatively new nature of the Katrantzou brand this makes her more susceptible to the political and economic pressures. Although somewhat strong concerning their use of technology, there are still areas of improvement and addressing these would strengthen both brands in light of the other concerns.
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A model first introduced in 1979 by Michael Porter, Porter’s 5 is used by companies for industry and development analysis. PLEASE REFER TO APPENDIX E.
Fig 18 & 19: Edie Campbell for the Burberry A/W 16 campaign.
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PORTER’S 5FORCES
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Threat of New Entrants Due to Burberry’s heritage this threat is relatively low. However brand loyalty schemes incline customers to continue to buy from a label, this could also take the form of free shipping on birthdays or a personalised shopping service, where customers are invited to after-hours shopping with refreshments. Personalisation services also provide Burberry with a competitive edge. The addition of monogramming further contributes to the element of exclusivity within luxury, and is also something Katrantzou could integrate into her silk scarves. Katrantzou however has a limited product line, and although this reinforces the exclusivity, it may leave the brand vulnerable to a new entrant who covers a wider range.
THE BARGAINING POWER OF BUYERS For both Burberry and Mary Katrantzou this is relatively low. Customers are individual and will always be more loyal to designs over the brand itself. Burberry have also increased prices across their core lines, which may pose a potential sense of betrayal amongst customers, yet on the flip side this also enhances the exclusivity of the brand. Burberry customers also have access to a series of luxury items, something that Katrantzou’s as of yet do not. However the introduction of further accessible luxury items, beyond the current line of scarves, would be an opportunity for the brand to increase their customer base.
The Bargaining Power of Suppliers Burberry clothing is partly sourced and manufactured in-house. However the leather for example has to be responsibly derived externally from Italy which heightens both the costing and the bargaining power of the suppliers. Katrantzou although primarily manufactured in Britain, sources its knitwear also from Italy. Not to compromise on quality, the supply of external vendors for fabrics and leather further afield leaves the brands, more so Katrantzou, in a vulnerable position. Due to Burberry however ordering in greater quantities, this therefore allows them more flexibility in the bargaining process.
THREAT OF Substitutes Burberry has had a well-documented struggle against counterfeiting, however the enforcement of copyright laws has reduced this from a significant to minor issue. Posing an additional threat are Burberry’s competitors, which include Gucci and Louis Vuitton, and although similarly priced, these labels are regarded higher in the luxury market. For Katrantzou, she has evolved her product line to main a competitive edge. Peter Pilloto’s designs also involve digital printing, however in later collections Katrantzou has experimented with other mediums, such as metal mesh bonded to silk brocade to keep her collections innovative and exciting.
Fig 20: Mary Katrantzou feature in Heroine s/s 15.
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SHORT & LONG TERM FORECASTS Included in Burberry’s business strategy is a serious revamp of their retail operations, planned to “save at least a £100 million by 2019 (Armstrong, 2016). Unifying its 3 labels under one name and merging its menswear and womenswear into one runway show, are both changes planned to reduce expenditure. Marco Gobbetti will takeover as CEO in 2017, a move welcomed by retail experts to hopefully “help Burberry cope with falling profits due to flagging demand for luxury goods” (Davies, 2016). Both brands are reinventing their management teams for the long-term benefit. Under this new guidance Katrantzou is planning a full product line, which can then be launched in a store of her own. The brand should also look to Burberry for advertising inspiration, as campaigns included in magazines or even across social media boosts awareness in the short term, to then encourage sales in the long term.
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fig 21: Mary Katrantzou A/w 16.
CONCLUSION Burberry and Mary Katrantzou are both brands where the successes outweigh the potential failures. These are labels categorised by “exclusivity, premium prices, image and status” (Jackson, 2004), they are luxurious with their own unique selling points. However there are room for improvements. Burberry needs to secure their place in global markets both emerging and established. Sales in China have fallen by the way-side as consumers are no longer indulging in the luxury sector as much as they did previously, the market is however growing in India and Japan, so Burberry need to incorporate strategies that will salvage the established and nourish the emerging. Social media campaigns directed at that market combined with innovative lines, including a focus on accessories should help to boost sales. However it is still important to continue their core lines and reinvent this where possible.
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Burberry should also look to Katrantzou in regard to customer engagement. Katrantzou has allowed for customers to become involved with the brand on a personal level, with access to backstage fashion events and “Mary Likes”. Mary Katrantzou also needs to secure her spot in the global market place, and collating a senior management team is one step closer to that. Her product line should then be expanded, looking to Burberry to bring in entry-level priced items to open the market and draw in additional sales. Burberry also epitomises the impact retail can have on customer experience and Katrantzou should use Burberry as a model when designing a store of her own, particularly in regard to digital marketing. Despite the problems the global luxury market poses, there is also a great deal of promise. Taking into consideration these additional strategies both brands are capable of reaching their full potential.
REFERENCES Armstrong, A. (2015). Burberry Backs Britain by Opening New Trench Coat Factory in Leeds. Retrieved from http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11973538/Burberry-backs-Britain-by-opening-new-trench-coat-factory-in-Leeds.html. Armstrong, A. (2016). Burberry Embarks on £100m Cost-cutting Drive as Profits Fall. Retrieved from http://www.telegraph.co.uk/business/2016/05/18/burberrys-profits-fall-as-luxury-fashion-struggles-in-hong-kong/. Allwood, E.H. (2015). It’s Confirmed: Balmain x H&M was a Total Knockout. Retrieved from http://www.dazeddigital.com/fashion/article/28318/1/it-s-confirmed-hm-x-balmain-was-a-total-knockout. Bailey, Glenda. (2011) In the Trenches: Christopher Bailey. Retrieved from http://www.harpersbazaar.com/fashion/designers/a842/christopher-bailey-interview-1211/. Bain and Company. (2015). Luxury Goods Worldwide Market Study. Retrieved from http:// www.bain.com/Images/BAIN_REPORT_Global_Luxury_2015.pdf. Boyes, M. (2012). Mary Katrantzou. Retrieved from http://www.vogue.co.uk/article/mary-katrantzou. Burr, T. (2016, Dec 5). Christmas House Tour:Vlogmas Day 4 [Video file]. Retrieved from https://www.youtube.com/watch?v=sK4cxOvav8U Butler, S. (2016). Burberry’s Sales Fall as Export Markets Suffer. Retrieved from https://www. theguardian.com/business/2016/jul/13/burberrys-sales-fall-as-export-markets-suffer. Chiquoine, J. (2016 ). Why the Motivation for Going to a Retail Store has Changed. Retrieved from https://www.wgsn.com/blogs/changing-retail-store-consumer-relationship-glossy-digiday/. Davies, R. (2016). Burberry’s Christopher Bailey Makes Way for New CEO. Retrieved from https://www.theguardian.com/business/2016/jul/11/burberrys-christopher-bailey-new-ceo-celine-marco-gobbetti. Garcia, L. (2016). The Lenny Interview: Mary Katrantzou. Retrieved from http://www.lennyletter.com/style/interviews/a235/the-lenny-interview-mary-katrantzou/. Hoang, L. (2016). Britain Now World’s Cheapest Luxury Market. Retrieved from https://www. businessoffashion.com/articles/news-analysis/britain-worlds-cheapest-luxury-market. Jackson, T. (2004). A Contemporary Analysis of Global Luxury Brands. In M. Bruce , C. Moore, & G. Birtwistle (Eds.) International Retail Marketing: A Case Study Approach (pp. 155-168). Oxford: Butterworth - Heinemann. McKinsey & Company. (2014). Luxury Shopping in the Digital Age. Retrieved from http://www. mckinsey.com/industries/retail/our-insights/luxury-shopping-in-the-digital-age.
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Milligan, L. (2015). Katrantzou Wins Fashion Fund. Retrieved from http://www.vogue.co.uk/article/mary-katrantzou-winner-bfc-vogue-designer-fashion-fund. Okonkwo, U. (2007). Luxury Fashion Branding: Trends, Tactics, Techniques. New York: Palgrave Macmillan. Porter, C. (2016). After Brexit, Which Way for Fashion? Retrieved from https://www.ft.com/content/8f288762-3316-11e6-bda0-04585c31b153. Saminather , N. (2016). Investors See No Let Up in Market Bloodbath if Trump Wins Presidency. Retrieved from http://uk.reuters.com/article/usa-election-markets-idUKL4N1DA2H7. Van den Bergh, J. & Behrer, M. (2013). How Cool Brands Stay Hot: Branding to Generation Y (2nd ed.). London: Kogan Page Limited . Walker, H. (2013) Digging Trenchcoats: What Makes Burberry our Boldest Brand? Retrieved from http://www.independent.co.uk/life-style/fashion/features/digging-trenchcoats-what-makes-burberry-our-boldest-brand-8504034.html. Wiseman E. (2012). Prints and the Revolution: Fashion Designer Mary Katrantzou. Retrieved from https://www.theguardian.com/fashion/2012/feb/12/prints-fashion-designer-mary-katrantzou.
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FIG 22: BURBERRy A/W 14.
IMAGES Figure 1 Katrantzou, M. (2016). Spring Summer 2017: Backstage Pass. [Photograph]. Retrieved from https://www.marykatrantzou.com/collections/ready-to-wear/spring-summer-2017/backstage-pass. Figure 2 & 3 Testino, M. (2016). The September Collection. [Photograph]. Retrieved from http:// www.mariotestino.com/photography/latest-work/burberry-springsummer-2017/?selection=0. Figure 4 & 5 Katrantzou, M. (2015). Spring Summer 2015: Backstage Pass.[Photograph]. Retrieved from http://www.marykatrantzou.com/collections/ready-to-wear/spring-summer-2015/backstage-pass. Figure 6 Tsai, Y. (2016). A Tomboy Called Lily. [Photograph]. Retrieved from http://www. harpersbazaar.com.sg/61719/lily-aldridge-fashion-shoot-november-2016/?slide=0. Figure 7 & 8 Terrey, J. (2015) The Burberry Trench. [Photograph]. Retrieved from http://harperandharley.com/2015/07/the-burberry-trench/. Figure 9 Pospieszynska, A. (2016) Beside the Silver Sea. [ Photograph]. Retrieved from http:// www.harpersbazaar.co.uk/fashion/fashion-news/news/a37297/dont-miss-our-specialjuly-cover-starring-hollie-may-saker/. Figure 10 Ryan, J. (2012) Store Gallery: Burberry Regent Street - A Vision of Luxury Retail. [Photograph]. Retrieved from https://www.retail-week.com/stores/store-gallery-burberryregent-street-a-vision-of-luxury-retail/5040823.article. Figure 11 Katrantzou, M. (2014). Spring Summer 2014: Backstage Pass. [Photograph]. Retrieved from http://www.marykatrantzou.com/collections/ready-to-wear/spring-summer-2014/backstage-pass.
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FIG 23: burberry a/w 14.
Figure 12 Katrantzou, M. (2015). Resort 2015: The Collection. [Photograph]. Retrieved from http://www.marykatrantzou.com/collections/ready-to-wear/resort-2015/runway Figure 13 & 14 Katrantzou, M. (2016). Autumn Winter 2016: Backstage Pass. [Photograph]. Retrieved from http://www.marykatrantzou.com/collections/ready-to-wear/autumn-winter-2016/backstage-pass. Figure 15 Coiffait, L. (2016). Lily James [Photograph]. Retrieved from http://www.lofficielmalaysia.com/3808/exclusive-interview-actress-lily-james-burberry. Figure 16 & 17 Katrantzou, M. (2016). Autumn Winter 2016: Backstage Pass. [Photograph]. Retrieved from http://www.marykatrantzou.com/collections/ready-to-wear/autumn-winter-2016/backstage-pass. Figure 18 & 19 Testino, M. (2016). Burberry Autumn Winter 2016. [Photograph]. http://www.mariotestino.com/photography/latest-work/burberry-autumnwinter-2016/. Figure 20 Sheldon, D. (2015). Concept Jungle. [Photograph]. Retrieved from http://www. marykatrantzou.com/marys-world/news-and-events/2015-02-12-edited. Figure 21 Katrantzou , M. (2016). Autumn Winter 2016 Backstage Pass. [Photograph]. Retrieved from http://www.marykatrantzou.com/collections/ready-to-wear/autumn-winter-2016/backstage-pass. Figure 22 & 23 Colombo, L. (2014). Burberry Prorsum. [Photograph]. Retrieved from http://www. dazeddigital.com/fashion/gallery/17433/5/burberry-prorsum-aw14. Fig 24 & 25 Ryan, C. (2016). Observational Study of the Manchester Burberry Store. [ Photograph]. Retrieved from personal collection.
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APPENDICES Appendix A – Burberry Observational study New Cathedral Street 21 Cathedral Approach Manchester M1 1AD
fig 24 & 25: burberry store observations.
Appendix BBurberry Market Research To gain further information concerning Burberry’s relationship with its customers, I visited the Manchester standalone store to undertake an observational study. From this I monitored the number of purchases made and the
layout of the store.
BURBERRY sales
cashmere scarf
trench coat
accessories
beauty
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Appendix CSWOT ANALYSIS BURBERRY
Strengths Burberry has a strong brand image and their products are instantly recongnisable.
Weaknesses The collection includes limited couture.
Opportunities Digital advertising could be brought into the majority of Burberry stores for consistency.
Threats Despite the legislations to prevent counterfeiting it still remains a threat.
The label boasts an impressive social media following.
The slowing of the Chinese economy has damaged profits.
Loyalty schemes could see customers preview collections early.
An economic downturn would impact sales.
Celebrity connections such as Kate Moss and Lily James compliment the brand.
Working on productivity and efficiency to manage expenditure.
Accessible price points draw in a wider market.
Growth in new markets such as Japan could enhance profits.
Certain competitors, Louis Vuitton is one example, do not include a beauty range.
Expanding the current existing line is a possibility.
Burberry is an innovative brand, as the introduction of the “see now buy now model� and live streaming their fashion shows in 2010 emphasises. Burberry's key consumer is not gender specific, offering both menswear and womenswear options to appeal to both markets and draw in wider sales.
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Appendix CSWOT ANALYSIS MARY KATRANTZOu
Strengths The brand has an engaging social media presence.
Weaknesses A flagship store is yet to be opened.
Opportunities High profile collaborations are something the brand can continue to embark on.
Threats Without investment, the Katrantzou brand may struggle to fully reach their potential.
An online collection of art and design, “Mary Likes” displays the inspiration behind Katrantzou’s designs. This allows customers to both engage with the brand and understand the thought processes behind the collection, an element missing from Burberry’s strategy.
Advertising, particularly in print is limited.
Celebrity endorsements would be a beneficial addition to encourage extra sales.
Peter Pilloto offers similar alternatives and could pose a threat.
The number of awards collected displays the potential of the brand.
The number of entrylevel products could be increased.
The product line has potential to be developed.
The brand has little control over the customer service of third party stockists.
Technically advanced and innovative designs are a strong selling point.
Katrantzou’s designs have developed beyond her trademark prints.
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Mary Katrantzou targets women with a "liberated spirit and strong sense of style" (as citied in Boyes, 2016), so although the clothing resonate with the 18-35 age bracket, the collection is not exclusive to this market. However other labels that also provide menswear may pose a possible threat.
Appendix DFashion Magazine Study For this study I wanted to look into how well advertised the emerging brand, Mary Katrantzou was in comparison to the established brand Burberry. I chose four British fashion December monthlies, Vogue, Elle, Harpers Bazaar and Dazed & Confused to look for editorial campaigns and brand products, please see the results below.
Burberry Advertising Burberry Products Mary Katrantzou Advertising Mary Katrantzou Products
1 2 0 0
Vogue
0 4 0 0
Elle
0 4 0 0
Harpers Bazaar
1 0 0 0
Dazed & Confused
Appendix EPORTER’S 5 FORCES MODEL
THREAT OF NEW ENTRANTS
THE BARGAINING POWER OF SUPPLIERS
COMPETITIVE RIVALRY
THREAT OF SUBSTITUTES
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bargaining power of buyers
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