Burberry 6 Month Buying Plan

6 MONTH BUYING PLAN SPRING 2015

MISSION STATEMENT HISTORY & HERITAGE SIZE OF BUSINESS ANNUAL REVENUE TARGET CONSUMERS

4 6 8 10 12

CONSUMER BUYING HABITS CORE OF BUSINESS STRATEGIES

BUSINESS GROWTH

20 22 24

MILLENNIAL

GENERATION X INTERNATIONAL

MARKETING

TABLE OF CONTENTS 2

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TECHNOLOGY COMPETITORS TRENDS IN FASHION

TRAVEL POSTER PRINTS

30 32 42

SOCIAL TRENDS BUYING PLAN

CORPORATE PLAN

50 52

STATEMENT OF RISK

62

TEXTILES COLOR

CHICAGO, IL STORE PLAN CHARLOTTE, NC STORE PLAN ASSORTMENT PLAN

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MISSION STATEMENT 4

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Burberry is focused on providing quintessential luxury products to their consumer while remaining true to it’s heritage with their trademarks: the trench coat, the Burberry check and the equestrian knight. They offer products with attention to craftsmanship, innovation, and design.

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HERITAGE & TRADITION 6

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Thomas Burberry founded Burberry in 1962 with the creation of gabardine, a Waterproof breathable fabric. The brand started off providing outerwear for people who ventured out into extreme conditions The first people to wear Burberry were explorers and the British Army.

Today Christopher Bailey is the CEO and Creative Director of Burberry and is making sure the brand stays true to it’s English roots, while appealing to all genders and generations.

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SIZE OF BUSINESS 8

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Burberry directly operates 497 stores in 32 countries. In the US alone there are 63 stores. They also operate through E-commerce in 11 languages.

Additional revenue comes from wholesale and franchise accounts.

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ANNUAL REVENUE 10

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Annual Revenue 2010 - $1,924 M 2011 - $ 2,347 M 2012 - $3,016 M 2013 - $3,246 M 2014 - $3,784 M

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TARGET CONSUMER 12

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MILLENNIAL CONSUMER 14

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Name: Poppy

Age: 24 Hometown: London Salary: $50,000+ Lives in: SOHO, NYC Job: Graphic Designer Car: Bicycle or Uber Magazine: Vogue Music: Various genres CafĂŠ: Starbucks Nightlife: Clubs & Dinner Parties Hobbies: Blogging, Horseback Riding, Cycling Personality: Creative, Tech Savvy, Goal Independent

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BABY BOOMERS 16

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Name: Jamison Age: 55 Hometown: Boston, MA Lives in: Chicago, IL Job: Chairman of Bloomberg Salary: $215,000 Car: BMW Magazines: Men’s Journal & Bloomberg Market Brands: Burberry, Armani, Ralph Lauren Hobbies: Walking his dog, Casual Skiing Personality: Family Oriented, Business Savvy, Sophisticated

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INTERNATIONAL CONSUMER 18

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Name: Amanda Yang Age: 32 Hometown: Chengdu, China Job: Fashion Public Relations Salary: $91,000 Car: Porsche, Cayenne Magazine: Vogue, Harper Bazaar Personality: Analytical, PerfectionOriented Brands: Burberry, Givenchy, Céline, Chloé

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CONSUMER BUYING HABITS 20

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Today consumers are looking to companies with positive ethical standards.

They want the brands they wear to reflect their environmental consciousness.

In today’s fast paced society consumer are seeking instant gratification, which Burberry offers through their runway made-to-order, which allows customers to buy looks as soon as they hit the runway.

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Since the foundation of Burberry, outerwear has been the core of the business. They offer an assortment of product categories.

Women Men Children Accessories Beauty Burberry Prorsum Burberry London Burberry Brit

CORE OF BUSINESS 22

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STRATEGIES 24

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BUSINESS GROWTH 26

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As a global luxury brand, product excellence, craftsmanship, innovation, and design remains central to the business.

Strategies Burberry invests in under-penetrated markets by focusing on travel retail; developing inemerging markets; and elevating their wholesale presence in the Americas.

Burberry’s global assortment delivers brand consistency and operating efficiency.

Burberry accelerates retail led growth by investing in retail store development.

Strengths Burberry offers quality, craftsmanship products with a strong British heritage. They are innovative in their use of technology, which appeals to the millennial consumer.

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MARKETING 28

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Burberry is constantly looking to grow the brand and expand their market reach by focusing on marketing excellence and innovation. Burberry strives to create a seamless online and off-line experience for their customers.

The faces of Burberry, featuring trending models, appeal to the millennial consumer.

Their ad campaigns involve current British actors, musicians, and models to stay true to their English heritage.

Overall Burberry seeks to attract the rising millennial generation through their use of technology and involvement in social media.

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TECHNOLOGY 30

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A recent report released by market research company, Exane BNP Paribas, showed that Burberry is leading in digital luxury. Technological innovation is a key component of the Burberry mission. They use a variety of methods to integrate technology into the customer experience: LED Screens in stores for product knowledge iPad Customer 1-2-1 platform for seamless customer-brand relationship Apple iPhone 5s Spring 2014 Collaboration Twitter “buy button� during spring 2014 Runway Show M-commerce, including in-store purchase through mobile devices

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COMPETITORS 32

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RALPH LAUREN 34

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The Ralph Lauren customer is affluent, sophisticated, and classic. The Ralph Lauren Brand remains true to it’s American Heritage like Burberry they invest in innovation and technology. They are fully immersed in E-Commerce and approximately operate over 200 stores in the U.S.

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MONCLER 36

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Moncler offers quality, leisurely, products with a unique style. Their brand is trusted for their technical craftsmanship of winter sportswear. The Moncler customer believes in being active while staying fashionable. They don’t have a large retail presence; the majority of their business is done through wholesale accounts. They appeal to the millennial generation by doing collaborations with celebrities, such as Pharrell Williams.

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GUCCI 38

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The Gucci customer is sexy, chic, and trendy. Their aesthetic is a bold and glamorous fuse of history and modernity. They offer luxury products with strong Italian heritage and craftsmanship. Gucci has a long standing history of being innovative in design. They are one of the world’s most recognizable and desirable luxury brands. They have a fully operating E-commerce site and own over 50 U.S. retail stores.

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HERMÉS 40

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HermĂŠs offers quality, prestigious, luxury products. They take pride in their brand exclusivity. The HermĂŠs customer is status driven, affluent, and classic.

HermĂŠs operates exclusively in 25 U.S. stores. Though their e-commerce is very limited, it is very in interactive and innovative; they utilized fashion motion media to strengthened their brand personality and engage the target audience.

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TRENDS IN FASHION 42

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TRAVEL POSTER PRINTS 44

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For Spring 2015 we saw the use of bold, graphic prints throughout the collections. Burberry’s collection heavily featured prints inspired by global travel posters.

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TEXTILE TRENDS 46

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This season many designers were using textiles that aren’t commonly thought of for spring, like suede, shearling, and denim. This trend works very well with the outerwear product category, and many of Burberry’s outerwear for this season was done in these fabrics.

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COLOR TRENDS 48

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The colors this season were cooler mute tones. The nostalgic palette consist of dark greens, purples and blues. Burberry’s color scheme featured a lot of these hues which complimented the whimsical theme.

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SOCIAL TRENDS 50

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Burberry’s committed to driving positive social, cultural and environmental impacts globally, Consumers use social media platforms (twitter, instagram & facebook) to connect with brands.

Ethical Trading: Burberry is continuously working to improve workers employment and workplace conditions.

Environmental Sustainability: Burberry is committed to reducing the impact their products have on the environment.

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6 MONTH BUYING PLAN 52

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14.74% increase in net sales is base off of Burberry’s continual growth in outerwear. Also plans for increased sales due to outerwear being forecasted as a trend for spring.

Higher reductions plan for the risk that outerwear trending for spring may not sell well.

Turnover is planned at 2.15 because the flow of receipts in the first half of the season would be based on outerwear for cold weather, the later half would consists of seasonal fashion outerwear.

CORPORATE BUYING PLAN 54

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Initial Mark Up % was planned to cover cost of expenses while still meeting the planned sales increase.

Sales Distribution for February through April, is higher because there are cold weather coats being sold from last season. Also consumers are looking to purchase new coats for the remainder of the cold season. May through June sales are lower because there will be less purchases for utilitarian outerwear and more purchases for seasonal outerwear.

The average stock is distributed at a steady decrease to make room for new product; creating a steady flow of receipts.

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CHICAGO, IL STORE PLAN

633 N Michigan Ave, Chicago, IL 60611

56

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Chicago has a higher planned turnover rate because it’s a northern location and the weather is cold until April so a majority of the coats will still be in season. Also Chicago is a large store in a fashionable location allowing for higher sales of seasonal outerwear May through July.

The planned net sales for Chicago are higher than the average U.S. Burberry store due to the large size and urban location.

The distribution of sales mirrors the corporate buying plan because it follows the same seasonal trends.

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CHARLOTTE, NC STORE PLAN

4400 Sharon Rd, Charlotte, NC 28211`

58

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The Burberry store in Charlotte store has a slower turnover rate as a reflection of the smaller store and suburban area.

Sale are planned lower for Charlotte because of warmer climate. Consumers are less likely to buy coats, even in the earlier half of the season. As a result of the less fashionable community there will be less purchases in seasonal outerwear.

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Planned Purchases at Retail $212,300,000.00

ASSORTMENT PLAN 60

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For the Spring 2015 assortment plan we chose to focus on the styles and textiles used because we felt that those made up the key components of women’s outerwear. The combination of style and textile allows Burberry to maximize their full selling potential by combining styles that are classic and popular with textiles that are trending.

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STATEMENT OF RISK 62

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Although Burberry has seen an increase in annual revenue for the past several years, planning a sales increase partially based off a new trend is risky. Due to the fact that the consumer is divergent in the trends that they follow it is highly speculative that the trend of outerwear for spring will translate from the runway to street style. With the uncertainty of this trend a higher markdown percent has been built into the buying plan. The pressure to sustain a significant growth and pace during a time of sustained economic slowdown puts pressure on external and internal resources.

Even though there is a risk to this plan, it could be opportunistic for Burberry , in that their outerwear holds a strong presence in the market. Spring Summer 2014 Prorsum women’s collection out performed in sales, an encouraging sign for sales this season. Burberry affectively uses technology and social media to build a strong customer - brand relationship. This gives them the opportunity to set trends in their favor.

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www.burberry.com www.wgsn.com www.businessoffashion.com www.tumblr.com www.hermes.com www.gucci.com www.ralphlauren.com eng.moncler.com Burberry 2013-14 Annual Report

RESOURCES 64

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Buying Team: Christina Ripley, Oudulin Chen, Keleka Mobley

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