FURNITURE Brand Extension
Lenore, Tj, Emerson, Adeline
1
Table of Contents
Introduction/History...........................................3 Current Products.................................................4 Ownership..........................................................5 Revenue..............................................................6 Channels of Distribution......................................7 Market Size.........................................................8 SWOT Analysis....................................................9 Key Competitors...............................................10 Target Customer................................................11 Products............................................................12 Pricing Strategy.................................................18 Placement Strategy...........................................19 Promotion........................................................20 People..............................................................26 Sources............................................................27 Burberry, Pre-Fall 2019
2
Introduction and History Burberry Group PLC is a British luxury fashion house headquartered in London, England. Established in 1856 by Thomas Burberry, originally focusing on the development of outdoor attire, the fashion house has moved into the high fashion market, developing a first of its kind fabric called Gabardine, which is completely breathable and waterproof, and exclusively made for the brand. Their pattern-based scarves, trench coats, and other fashion accessories are unique. The first shop opened in the Haymarket, London, in 1891. Burberry was an independent family-controlled company until 1955, when it was reincorporated. In 2005, it completed its demerger from GUS plc, the company’s former majority shareholder.
Burberry, Spring 2001 3
Current Products Burberry’s main fashion house focuses on and distributes trench coats ready-to-wear outerwear fashion accessories fragrances sunglasses cosmetics
Burberry, Website
4
Current Ownership Burberry Group PLC Is a public limited company Structure: 79.85%- institutional ownership 18.64%- by the general public .21%- private companies
Riccardo Tisci,Burberry
Riccardo Tisci- Creative Director Dr.Gerry Murphy- Chairman Marco Gobbetti- Chief executive officer Julie Brown- Chief operating and financial officer Fabiola Arredondo- non-executive director Ian Carter- non-executive director Jeremey Darroch- Senior independent director Ron Frasch- non-executive director Stephanie George- non-executive director Matthew Key- non-executive director Same Carolyn McCall- non-executive director Orna Nichionna- non-executive director
5
Current Revenue 2,733m as of 2018 2,766m- 2017 2,515m- 2016 2,523m- 2015 2,330m- 2014
Burberry Monogram Campaign
6
Channels of Distribution Retail = 2,177b (2,861b USD) 81.84% Wholesale= 453m (595m USD) 17.03% Licensing= 30m (51m UDS) 1.12% Mobile Transactions= 40% (1.09b GBP, 1.43b USD) 70% of sales influenced by digital marketing
# of stores -240 155- Concessions (64.58%) 54-Outlets (22.5%) 46- Franchise stores (19.16%)
Riccardo Tisci, First Burberry Campaign 7
Luxury Furniture Market Share(%), By Geography
Channels of Distribution Size of the marketThe size of the Luxury furniture market is now around 25 billion As of 2017, it was 23.05 billion It is expected to be at 31 billion by 2024 North America holds the largest percentage of market shares
North America
8
Europe
Asia-Pacific
South America
Middle East & Africa
SWOT Analysis Strengths:
Long history (since 1856) - The long history of the brand gives them a good reputation. Recent logo change to appeal to a younger audience - Wider range of customers and opportunities to sell to younger audiences. Highly recognisable pattern- The pattern is self marketing because it is recognizable. Digital presence (40% of all sales were mobile transactions, 70% influenced by digital marketing) - More marketing opportunities through highly populated digital channels.
Weaknesses: High prices- Only a certain demographic have access to the products. New to the furniture industry - No established reputation in furniture compared to other high end furniture brands.
Opportunity:
Threats:
Expanding product lines - Wider range of products will increase sales. High demand for luxury for social media - Rise in demand for luxury goods, especially with recognizable logos. Selling in new countries - Larger demographic and more sales opportunities. Other high end furniture lines with more experience - Luxury brands with an established reputation in the furniture will threaten sales. Counterfeit copies - Fakes will threaten the sales and exclusivity of the line. Quickly moving trends - Larger likelihood for items going out of style and becoming irrelevant.
Burberry Campaign 9
Key Competitors
10
Target Consumer Gender: Female Age: 30 Income: 200,000 Education: Yale University graduate Lifestyle: Brunch, Tennis, Golf, Boating, Fashion Work: Surgeon Belief: Labels are important to her , the more expensive the better, gives into the hype, does it for the insta, likes to flex Car: 2019 Mercedes-Benz G-Class Social Media: Instagram, Snapchat, Facebook Shop: Luxury Brands, Hyped items
11
Products
Couch 1
12
Color Way 1
Color Way 3
Color Way 2
Color Way 4
Products
Couch 2
Color Way 1
Color Way 2
Color Way 3
13
Products
Coffee Table 1
14
Products
Dresser 1
15
Rug 1
16
Rug 2
Products
Lamp 1
Lamp 2
Products
17
Pricing Strategy
18
Couch 1
$12,000
Couch 2
$16,000
Coffee Table 1
$7,000
Dresser 1
$9,000
Rug 1
$6,000
Rug 2
$6,000
Lamp 1
$3,000
Lamp 2
$2,500
Placement Strategy Where and how it will be sold
In Burberry stores and online, customizable, made to order
Justification
ThomasBurberryMonogram projected onto Global Harbor, Shanghai
The Burberry home line will only be available in specific locations to uphold the exclusive reputation of the brand
Positioning
Exclusive, high end
Brand Fit
The exclusivity fits the existing brand identity
Established Relationships
Customers already loyal to the Burberry brand
19
Promotion Strategy How will the consumer know about the product? The line will be advertised through social media posts, print ads, displayed in-store, celebrity ambassadors, and the Burberry room.
In-store signage
Digital ads in store Products will be displayed in store
Social media marketing
Photos of products will be posted and also shown in living room settings Instagram- stories, posts Snapchat Filter
Webpage
New tab/section for Burberry home Advertising the new line on the home screen
Window Display
Furniture set up in the window “Living room” set up- replicating the “ Burberry room” 20
Website WOMEN
MEN
CHILDREN BAGS RUNWAY
HOME ARTICLES THE TRENCH COAT
HOME SHOP NOW
21
In-Store
22
In-Store
23
Ad
HOME
24
Instargram
25
People The Beckham family and Gigi Hadid will both be the brand ambassadors for the extension line. Romeo Beckham has been a Burberry model in the past and Gigi has recently started modeling for the company, so it will be a nice combination of the old and new Burberry, appealing to both audiences.
26
Sources https://www.grandviewresearch.com/indushttps://www.burberryplc.com/en/company/ try-analysis/furniture-market board-of-directors/board-of-directors.html https://www.worldfurnitureonline.com/PDF/ https://www.statista.com/statistics/263885/ press-release/W0_July17_PR.pdf burberrys-worldwide-revenue/ https://www.burberryplc.com/content/dam/ https://www.globenewswire.com/news-reburberry/corporate/Investors/Results_Release/2018/04/30/1489819/0/en/Global-Luxuryports/2018/Burberry_AnnualReport_FY17-18. Furniture-Market-Will-Reach-USD-30-28-Billionpdf https://www.burberryplc.com/content/ by-2023-Zion-Market-Research.html dam/burberry/corporate/Investors/Results_Reports/2018/Prelims%20May%202018%20-%20 https://www.imarcgroup.com/luxury-furniFINAL.pdf.downloadasset.pdf ture-market https://www.statista.com/statistics/439144/ https://us.burberry.com/the-monogram-uniglobal-revenue-of-burberry-by-channel/ verse/ https://www.statista.com/statistics/263885/ https://www.gq.com/gallery/david-beckhamburberrys-worldwide-revenue/ style-look-book-outfits https://www.versace.com/us/en-us/home-colhttps://www.google.com/search?rlz=1C1Glection/versace-lifestyle/for-your-home/ CEU_enUS850US850&biw=1920&bih=920&tbhttps://www.roveconcepts.com/modern-lightm=isch&sa=1&ei=Qt7qXMPaAYLM_AbHtJfIing.html?sort=p.sell_price|DESC DA&q=burberry+shanghai&oq=burberry+s&gs_ https://vipp.com/en/shop/furniture l=img.1.0.35i39l
27