By: Marija Pejkovic
Table of Contents Company Mission Statement ................................................................... Pg 3 Vision Statement ...................................................................................... Pg 4 Social Responsibility Partnership ............................................................. Pg 5 Customer Profile-‐ Broad Synopsis……………………………………………………....Pg 17 Customer Narrative-‐ One Customer ...................................................... Pg 18 Assortment/Classification Plan .............................................................. Pg 19 Assortment-‐ Master Page ...................................................................... Pg 20 Brand Identity/Competitive Edge ........................................................... Pg 21 Retail Partner/Distribution ..................................................................... Pg 22 Seasonal Sales Projection by Item .......................................................... Pg 23 Control Methods & Market Budget ........................................................ Pg 26 Floor Plans .............................................................................................. Pg 27 Marketing Plan (Objective/Strategy/Tactic/Control Method) ............... Pg 30 Press Kit .................................................................................................. Pg 32
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Company Mission Statement Core Purpose: Protect, explore, inspire ________________________________________________________________
Core Purpose: Protect, explore, inspire, create, innovate
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Vision Statement Leveraging the franchise _________________________________________________________
Intensifying development _________________________________________________________
Accelerating retail-‐led growth _________________________________________________________
Investing in under-‐penetrated markets _________________________________________________________
Operational excellence
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Social Responsibility Partnership EXCELLENCE IN PEOPLE Seizing the energy of our brand and the passion of our people, we lead the evolution of an agile, connected Burberry, creating the talent of today and tomorrow. Burberry is part of an extended community made up of both employees and external partners, with the twin aims of being a great brand, as well as a great company to work for and do business with. Evolving the organization, across regions and functions, is a natural part of the business and has become second nature. This year we have established a number of cross-‐functional strategic decision councils that enable us to stay closely connected and make timely decisions about business priorities that support our five key business strategies. Each strategic council is chaired and co-‐chaired by a member of the Executive Strategic Council and individuals from cross-‐ sections of the business are invited to connect and collaborate based on their expertise. Examples of these councils include a Strategic Customer Council, Strategic Innovation Council and Strategic Responsibility Council. A more robust process to identify talent and potential was also implemented during the year, to feed effective succession and workforce planning, and elevate our existing Leadership Development program and bi-‐annual Talent Reviews. Every employee in the company is now eligible to participate in the Group’s free share plans and is in a performance based incentive scheme. Diversity A commitment to diversity remains one of our principal values. Our diverse employee population continues to enrich and strengthen our company culture, driving our success as a luxury brand.
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After continued expansion into emerging markets and the opening of new regional head office locations in Asia and the Middle East, our global workforce continues to diversify and grow. Burberry now employs nationals of 95 countries across all continents. We continuously open our doors to new and developing talent and we are focused in providing opportunities for employees across the organization to realize their full potential. We are committed to promoting gender equality and equal opportunities at every level of the organization. Our global management team is evenly split by gender. In the 2010 Opportunity Now Awards, Burberry was awarded the ‘Female FTSE 100 Award’ which is presented to the UK business with the most women on its board. This was in addition to receiving the ‘FTSE Executive Women Award’ which is given to the UK business that employs the most female executives as listed in the FTSE 100 index. Health, safety and wellbeing Burberry is committed to providing a safe and healthy working environment for its employees, customers and third party contractors. Burberry uses a third party to undertake audits at its locations throughout the world. The audit framework requires stores and offices to be audited at least once every three years, and distribution centers or manufacturing sites annually. A governance framework is in place to ensure audit recommendations are addressed in appropriate timeframes, and ultimate ownership sits with the Global Health & Safety Committee, which is chaired by a Board member. Burberry launched a wellbeing program in 2010/2011, which was designed to encourage staff to lead healthier lifestyles. Research identified that staff had found that the program had increased their awareness of how to live a healthier lifestyle, and reduced the amount of sick leave. In the UK this reduced dramatically to 0.8% days per employee compared to the 2010 Chartered Institute of Personnel and Development retail and wholesale rate of 2.6%. The multi-‐channel customer experience In response to an increasingly multi-‐channel customer, the Burberry Experience sales and service program has evolved to cover all customer interactions across all channels – in-‐store, online, and by phone-‐to-‐deliver an exceptional, consistent and differentiated service. 6
In store, the roll out of the Burberry Experience began in Emerging Markets and China, after previous successful implementation in the Americas, Asia and Europe. Consistent sales and service training is now provided across all stores globally. The program continues to evolve in order to enhance further the customer experience, and the first in-‐store pilots of multi-‐channel digital initiatives have been completed. Service standards have been developed and evolved through guidelines and policies that ensure all customer-‐facing channels offer an elevated and globally consistent service. The implementation of global repair centers and an International Return Policy have enhanced the after sale service, ensuring a personalized experience at every interaction with the brand. There has been investment in improving customer service contact and this year a global in-‐ house Customer Service team has been established. This team provides 24/7 support to customers in 14 languages. They engage with customers by phone, email and through ‘Click to Chat’ and ‘Click to Call’ on burberry.com. Client Services, which provides a personalized luxury service to Burberry VICs (Very Important Clients) worldwide, continues to expand across all regions and to reinforce customer loyalty globally. Specialist Client Services Consultants are now available in 30 flagship locations across the world, speaking 20 languages. VICs also have access to Client Service Consultants online and by phone to enhance the luxury experience. Underpinning these activities has been an initial focus on the analysis of cross-‐channel business activity, generating customer insight to increase retail productivity. OPERATING RESPONSIBLY Since its foundation in 1856, Burberry has sought to achieve the very highest quality standards. Corporate Responsibility is at the heart of Burberry business practices, reinforcing the heritage and authenticity of the brand. Burberry believes that to be a great brand you also need to be a great company. This belief is reflected in its continued pursuit of improved Corporate Responsibility (CR) performance; its tackling of issues related to climate change; and efforts to inspire employees on issues of ethical trade, environmental sustainability and community investment. 7
Burberry is a member of the UN Global Compact and uses the Compact’s Ten Principles to guide its CR activities. The company is also listed on the FTSE4Good Index, achieved the Carbon Trust Standard and is an active member of both the Ethical Trading Initiative and Business for Social Responsibility. The following sections outline Burberry’s approach to tackling important social and environmental challenges, including some key achievements in 2010/11. Overall highlights of the year • • • •
•
Increased the number of factories with worker hotlines by 54% to a total of 33 Joined the Ethical Trading Initiative – the first luxury brand to do so Launched a Sustainability Digital Film to employees globally to raise awareness of corporate sustainability initiatives Committed to increase the proportion of the Group’s UK electricity purchased from combined heat and power sources from 29% to 100% to drive demand for renewable in the UK The Burberry Foundation distributed over 2,500 iconic trench coats to partner charities in London, New York City, Hong Kong and Seoul, all working with disadvantaged youth
CR governance Michael Mahony, Senior Vice President Commercial Affairs & General Counsel, is accountable for CR matters on behalf of Burberry and the Board. He chairs the CR Committee, which formally reports to the Group Risk Committee. The CR Committee held three meetings during the year. Two supplementary committees, the Global Sustainability Committee and Supply Chain Risk Committee met three times respectively. In 2010/11 the Group strengthened its CR team to a total of 16 members globally.
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Ethical supply chain
Burberry believes that its products should be made only in factories that comply with local labor and environmental laws and by workers who work fair but not excessive hours, are provided with a safe, hygienic work environment, and who can exercise their right to freedom of association as well as collective bargaining. The majority of Burberry products are manufactured in Europe through third party suppliers. All Burberry suppliers are governed by the Group’s Ethical Trading Policy, which sets clear expectations regarding the management of labor standards. Four new policies were added to this during the year, covering Bribery and Corruption, Foreign Contract Labor, Unauthorized Sub-‐Contracting and Animal Welfare. Ten Burberry team members are charged with ensuring the implementation of the policy throughout the supply chain as their sole responsibility, working in partnership with third-‐party auditors and NGOs as appropriate to approve and assess the activities of suppliers. The team conducted over 700 audits, capacity building and hotline interventions in 2010/11. To complement its auditing program, Burberry has trained workers in confidential worker hotline services in select factories to provide an effective whistle-‐blowing mechanism and counseling service. To achieve long-‐term improvements in labor conditions, Burberry provides support and resources to suppliers to empower them to take responsibility for their factory and subcontractor conditions. The CR team delivers supplier training covering the Group’s ethical trading expectations, management systems and counsel on transparency and standards for subcontractors. The full Burberry Ethical Trading Code of Conduct is available here and more information on Burberry's ethical trading process can be found here. Stakeholder engagement Burberry understands that it cannot solve supply chain labor issues alone and maintains an open dialogue with suppliers, other brands, NGOs and trade unions to bring collective action to bear across the supply chain. 9
To increase engagement with ethical trade stakeholders, Burberry joined the Ethical Trading Initiative (ETI) in June 2010. The ETI is a tripartite alliance of companies, trade unions and voluntary organizations that work collaboratively to improve the lives of workers worldwide. The work of the Business for Social Responsibility Sustainable Luxury Working Group, of which Burberry was a founding member, also continued this year, focusing on animal welfare guidelines and the exotic skins supply chain. As a result, the release of a common Animal Welfare Policy by the Group was communicated to Burberry suppliers, detailing its high expectations in respect of welfare standards. Burberry is also a member of the Leather Working Group, supporting its efforts to improve transparency in the leather industry. Fur As a luxury brand with a strong outerwear heritage, there will be occasions where Burberry design teams or consumer tastes expect the use of natural hides in Burberry collections. Burberry will not use fur if there is any concern that it has been produced using the unacceptable treatment of animals. Burberry safeguards the correct ethical standards and traceability in all fur sourcing. Specifically, it sources fur from furriers who want to uphold high standards of ethical treatment of animals and who share its concerns about animal welfare. Burberry publicly supported the Truth in Fur Labeling Act in the US in 2010. Sandblasting Burberry does not utilize sandblasting on any of its products manufactured by or on behalf of the Group. Burberry requires its suppliers to use hand brushing to distress denim products, and use all appropriate Personal Protective Equipment to ensure that workers’ health is protected during the process. 10
Audits, training programs, factory management follow-‐up visits and hotline programs (Year to March)
Environmental sustainability
Burberry is committed to finding innovative ways to minimize environmental impacts from the production, distribution and sales of its products, and to reducing its environmental footprint throughout its global operations. In order to embed sustainability further this year Burberry strengthened its Global Sustainability Committee to include representatives from a wider variety of functions within the business. The members are designated Sustainability Leaders, responsible for embedding sustainable business practices throughout the Group’s operations. In support of the Sustainability Leaders’ work, Burberry engaged all employees globally via targeted digital communications encouraging them to continue to inspire and challenge each other towards new ways of operating. The full Burberry Global Environmental Policy is available here. 2010/11 environmental performance results Carbon Trust: •
In April 2010, Burberry was awarded the Carbon Trust Standard for its UK operations
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Energy: •
Committed to purchasing solar energy to power our distribution centre in Vineland, USA
•
Inductive motor optimization panels were trialed in all UK manufacturing sites to reduce energy consumption
Business travel: •
Due in part to executing the Group’s under-‐penetrated markets strategy, air travel for UK employees increased by 52% per £1,000 of turnover
Waste: • •
There was a renewed focus on diverting waste from landfill. In Horseferry House there was a 54% increase in waste recycled during the year The closed loop textile recycling system launched in the UK last year has been expanded to Europe. Since April 2010, Burberry’s recycling partner has converted over 130 tones of sample and raw material waste into car door insulation
Logistics transport emissions: •
An unprecedented rise in sales coupled with the shift from seasonal to monthly deliveries impacted the Group’s ability to ship goods by sea. To address this, a number of key initiatives have been introduced, including centralized logistics decision making, shortening of critical path and increasing strategic raw materials pre-‐buys in order to accommodate sea transportation lead times.
Performance disclosure Burberry makes annual disclosures to the Carbon Disclosure Project and Forest Footprint Disclosure. 12
Global building energy CO2 (Year to March) (CO2 kg per £1,000 of turnover) (Data excludes discontinued Spanish operations)
Burberry acquired its Chinese operations with effect from 1 September 2010. (On a like-‐for-‐like basis, excluding both the discontinued operations in Spain and acquired business in China in 2010/11, our CO2 emissions per £1,000 turnover were 20.5 CO2). Restatement of 2008 and 2009 data to include sites in Asia and Emerging Markets. Primary transport shipped by sea (%) (Year to March) (Based on a sea vs. air freight comparison; road data has been excluded)
Air travel CO2 (Year to March) (CO2 kg per £1,000 of turnover, based on UK Employees)
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The data in these graphs comes from a combination of automated and manual internal processes. The majority is based on actual data, supplemented, when necessary, by approximations. Defra 2010 conversion factors have been used throughout. Community investment Investing and engaging in the communities where Burberry operates remains a key element of the Burberry CR strategy. In 2010/11, Burberry dedicated a total of £3m, or 1% of profits before tax, to charitable causes around the globe, a twofold increase on 2009/10. The majority of this giving was a donation to the Burberry Foundation. Burberry Foundation The establishment of the Burberry Foundation in 2008 (UK registered charity number 1123102) marked the creation of a strategic philanthropic platform, which enabled the Company to refine, focus and accelerate its community engagement efforts. The Foundation’s mission is an embodiment of company founder Thomas Burberry’s core values: to protect, explore and inspire. Specifically, it is dedicated to helping disadvantaged young people to realize their dreams and potential through the power of their creativity. The Burberry Foundation supports innovative organizations and programs that leverage Burberry assets, combining financial support with the knowledge, creativity and dedication of Burberry employees. The Foundation receives donations from Burberry and other benefactors, which enable it to award strategic grants and make targeted donations of in-‐kind gifts. In 2010/11, the Foundation received £2.3m in cash and more than £260,000 in-‐kind donations from Burberry. This enabled the Foundation to support thousands of young people in Boston, Chicago, Hong Kong, London, Los Angeles, New York, San Francisco and Seoul, via key partnerships with 17 charity organizations.
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Employee engagement
As part of the Company’s employee engagement program, Burberry employees are encouraged to dedicate up to four hours of paid leave per month in support of the Foundation’s charity partners. Employees provide critical one-‐off assistance to hundreds of young people, as well as long-‐term support via one-‐on-‐one mentoring and weekly help with school homework. In 2010/11 over 25% of employees located in cities where the Foundation is active offered their personal talents and business skills to help disadvantaged young people work towards realizing their full potential. In total, over 3,700 hours or 490 working days were dedicated to volunteering. A significant proportion of employee engagement efforts are dedicated to increasing the employability of disadvantaged young people in London, New York City and Hong Kong. Over the past three years, 126 young people were brought into corporate offices and retail stores for job training and hands on work experience, ranging from two to ten weeks. Beginning with a week of intensive training designed and delivered by Burberry volunteers, the entire experience provides participants with the opportunity to explore their own creativity and talents whilst developing the skills and confidence needed to succeed in today’s complex business world. Successful program graduates receive an iconic Burberry coat to further boost their confidence as they look to enter the job market armed with new skills and experiences. This year alone, more than 200 employees dedicated over 1,500 hours to help change the lives of 65 young people through the job training program. In-‐kind donations Burberry regularly donates products to the Burberry Foundation for strategic distribution through partner charities. Donations range from one-‐off gifts of non-‐trademark fabric and materials for art and design courses, to a large scale annual Christmas Coat Donation program. In 2010/11, a record number of coats were distributed in London, New York City, Hong Kong, and Seoul, to charities working with disadvantaged young people to help them access employment or re-‐enter education. 31 organizations matched the coats with recipients for size 15
and need, with testimonials from recipients confirming that, far from being just a gift of warmth, a Burberry coat is a gift of confidence and inspiration that will last for years to come. Corporate donations An ongoing part of doing business is to selectively support customer and supplier related events and charitable causes. Each regional office has a discretionary charity budget which is managed and approved locally. Disaster relief Burberry supported relief efforts following two catastrophic events this past year. In support of relief efforts after devastating flooding in Pakistan, Burberry contributed to the Disasters Emergency Committee, an umbrella organization for 13 humanitarian aid agencies. In response to the earthquake and tsunami in Japan in March, Burberry and its employees contributed to Save the Children and British Red Cross to assist with relief and reconstruction efforts. Community donations (£m) (Year to March) Direct donations are contributions made by the Company. Indirect donations are donations from third parties that have been facilitated by Burberry.
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Customer Profile-‐ Broad Synopsis Segmentation Types/Bases
Illustrative Categories
Geographic Segmentation Demographic Segmentation
Region City Size Population Density Climate
North-‐East 2,695,598 Urban Temperate
Sociocultural Segmentation
Age Gender Household Size Income Occupation Education
30+ Female, Male 1 or more persons $250 K+ Professional College Graduate
Culture Sub Culture Religion National Origin Race Social Class Marital Status Psychographics Effective and Cognitive Segmentation
European, Asian, American
Behavioral Segmentation
Degree of Knowledge Benefits Sought Attitude
Expert Convenience, prestige Positive, Outgoing
Brand Loyalty Store Loyalty Usage Rate User Status Payment Method Media Usage Usage Situation
Divided Loyalty Divided Loyalty Medium, Heavy Current user, Potential User Cash, Credit Card Magazines, TV, Newspapers, Internet Work, Home
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Catholic, Orthodox, Christian English, Chinese, Greek Oriental, White Upper-‐class, upper-‐middle-‐class single, married achievers, strivers
Customer Narrative-‐ One Customer Every morning Marie wakes up in her Gold Coast condominium to kiss her husband goodbye as he leaves for work, to his modeling agency. Shortly after, she is woken up by her beautiful son, who is a year old. Since Brigitte has the luxury to be a stay at home mom, she does not have to worry about having anyone else raise her beautiful little boy Max. As soon as Max eats, they get bundled up for the cold Chicago weather and she puts him in his Bugaboo stroller. They start their morning by taking a nice walk around town; right after Marie gets her daily fix of Starbucks coffee. After returning home from their morning walk, she puts her son down for a nap. Now Marie has some time for herself, she starts to get ready for her lunch date with her friend Alexandra who has a two month old newborn. Marie likes to use her Nars makeup whenever going out. She throws on a pair of Seven For All Mankind jeans and a Marc Jacobs top with her Burberry Grainy Leather handbag. By the time she’s ready; Max wakes up from his nap. She puts Max in her Mercedes SUV for their drive to the suburbs to meet Alexandra. They meet her at Capital Grille in Elmhurst. After lunch, they all take a stroll to Oakbrook Mall. After picking up some new arrivals for the kids and themselves, they head their separate ways. Driving back home from the suburbs, Marie calls her husband to confirm what he would like for her to make for dinner. Max and Marie finally arrive back home and she puts him down for a nap. She does her daily yoga routine with her yoga instructor that comes to her home and then she starts to make dinner. Her husband comes home and Max wakes up from his nap. They all have dinner and spend some time catching up on how their days went. Now it’s time for bed, then Marie and Max’s routine starts all over again, enjoying each other’s company out on the town.
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Assortment/Classification Plan Burberry Home Collection 1 Year 2 Season 3 Class 4 Sub Class 5 Types of Check
Part 1 1 2 3 A B C D 1 1 Sheets 2 Comforters 3 Pillow Cases 1 2
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2013 2014 2015 Spring Summer Fall Winter Bedding 1 Fitted Sheet Set 2 Flat Sheet Set 1 Comforter 2 Duvet Cover 1 Standard Pillow Case 2 Queen Pillow Case 3 King Pillow Case 4 Euro Pillow Case 5 Decorative Pillow Case House Check Nova Check
Assortment-‐ Master Page CATEGORIES STYLE NAME
STYLE NUMBER DESCRIPTION
COLOR
Bedding
Sheets
Abelard Sheet Set
1A1111
Fitted Sheet Set
House Check
Abelard Sheet Set
1A1112
Fitted Sheet Set
Nova Check
Faegan Sheet Set
1A1122
Flat Sheet Set
Nova Check
Faegan Sheet Set
1A1121
Flat Sheet Set
House Check
Comforters
Ladbroc Duvet Cover 1A1221
Duvet Cover
House Check
Ladbroc Duvet Cover 1A1212
Duvet Cover
Nova Check
Packston Comforter
1A1211
Comforter
House Check
Packston Comforter
1A1212
Comforter
Nova Check
Pillow Cases
Nacien Pillow
1A1311
Standard Pillow Case
House Check
Nacien Pillow
1A1312
Standard Pillow Case
Nova Check
Caddaham Pillow
1A1321
Queen Pillow Case
House Check
Caddaham Pillow
1A1322
Queen Pillow Case
Nova Check
Tabor Pillow
1A1331
King Pillow Case
House Check
Tabor Pillow
1A1332
King Pillow Case
Nova Check
Naldo Pillow
1A1341
Euro Pillow Case
House Check
Naldo Pillow
1A1342
Euro Pillow Case
Nova Check
Oakden Pillow
1A1351
Decorative Pillow Case House Check
Oakden Pillow
1A1352
Decorative Pillow Case Nova Check
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Brand Identity/Competitive Edge Brand Identity
Burberry: Protect.Explore.Inspire.
Selling Appeal Burberry is synonymous with quality, excellence and heritage of its product. All of our products are made from the finest textiles in the world. Every aspect is taken into consideration when creating a Burberry product. We pay attention to every detail that goes into one of our pieces even producing some aspects by hand. Having been around since 1856, we are known for inventing waterproof clothing and being the first to use gabardine in the original trench coat ever made. Our trench coats were worn by the British arm and part of their formal uniforms, which were designed for the conditions of trench warfare. -‐Quality
-‐Excellence
-‐Heritage
Distinct Characteristics Our bedding collection has a distinct British flare that is unique from all the rest. The collection is distinguishable by our House and Nova Check patterns shown throughout all of our products. We construct all of our products with fine Egyptian cotton in Italy, where most of our production processes take place. -‐
British Flare -‐Nova Check -‐House Check
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Retail Partner/Distribution Retailer
Our bedding collection will only be carried at Bloomingdales Home Store.
Geographic Locations
Our bedding collection will be rolled out in these select store locations:
Beverly Center 8500 Beverly Boulevard Los Angeles, CA 90048 310-360-2700
The Falls 8778 SW 136th Street Miami, FL 33176 305-252-6300
th
59 Street 1000 Third Avenue New York, NY 10022 212-705-2000
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North Michigan Avenue 900 North Michigan Avenue Chicago, IL 60611 312-440-4460
Seasonal Sales Projection by Item Introduction -‐ 4 wks Product Sheets Covers Pillow Cases
Units 68 68 58
Total
194
-‐ 4 wks Maintenance
Product Sheets Covers Pillow Cases Total
Units 34 34 29 0 0 0 0 97
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Sold On H and 34 34 34 34 29 29 0 0 0 0 97
97
Sold On H and 20 14 20 14 18 11 0 0 0 0 58 39
Clearance -‐ 2wks Product Sheets Covers Pillow Cases
Units 14 14 11 0 0 0 0
Total
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Clearance -‐ 2wks Product Sheets Covers Pillow Cases
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Brand
Sales Projection Units Sold On H and 2 2 0 14 7 7 11 5 6 0 0 0 0 0 0 0 0
Total
27
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13
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Sold On H and 12 2 14 11 0 0 0 0
Replenishment Product Sheets Covers Pillow Cases Total
Units 0 0 0 0 7 6 0 13
25
Sold On H and 68 68 68 68 58 58 0 7 6 0 194 207
Control Methods
Introduction: Free gift with purchase if you spend $500 or more on the new Spring 2013 collection.
Maintenance: With the purchase of bed sheets, receive 15% off one set of pillow case covers.
Clearance: 30% off of the Spring 2013 home collection.
Marketing Budget $23,670x4=$94,680 94,680x 25%= $23,670-‐ Budget $23,670x30%=$7,101-‐ Introduction $23,670x50%=$11,835-‐ Maintenance $23,670x20%=$4,734-‐ Clearance
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Floor Plans
Introduction
27
Maintenance
28
Clearance
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Marketing Plan (Objective/Strategy/Tactic/Control Method) Introduction
Objective-‐ Introduce a home collection for Spring 2013.
Strategy-‐ Examine the type of merchandise void within the marketplace for luxury home collections. Tactic-‐ Conduct marketing research by surveying women and men, thirty years or older to find what kind of home collection items need to be offered for their age group. Then, surveys would need to be sent to existing Burberry customers to see if they or their family members would escalate and purchase our home collection items if it was offered. We would then hire designers experienced in designing home collections for the age of thirty and up, to design our home collection. Following the design of our home collection, we would report what styles of houseware need to be offered to the new designers so they could design according to the consumers wants. We would then hire reputable manufactures that work closely with Burberry‘s existing manufactures to make the collection. The collection would then be shipped from the manufactures to Burberry’s warehouse. The collection would then be distributed to the five top doo Bloomingdales stores. We would follow up to make sure each store received the home collection by Spring 2013. 30
Maintenance
Objective-‐ Create an ad campaign targeted to thirty plus year old men and women to launch in September 2012 and begin the process of exposing this campaign. Strategy-‐ Set a theme for the ad campaign that will attract the thirty plus year old men and women market group. Tactic-‐ First we would work with the designer to find out what inspired them to create the home collection. We would incorporate the lifestyle of a Burberry man and woman in the ad campaign. Advertise in appropriate mediums to fit to the Burberry lifestyle. As well, advertise in Vogue with print ads located towards the beginning of the magazine on a thicket cardstock paper that stands out from the rest of the ads. Also advertising will be done through direct mail campaign to Burberry top clients. Introduction will also be made through online ad banners on websites such as wwd.com and vogue.com Clearance Objective-‐ Launch a home collection by Spring 2013 that will go to clearance, bringing in profit of twenty percent. Strategy-‐ Collaborate with manufactures that create Burberry’s home collection to set the home collection at fifty percent of the wholesale price. Tactic-‐ Look for designers with similar lifestyles, price points and designs that correspond with Burberrys lifestyle to design the home collection. Then, set an annual salary for the designer that cannot be adjusted. Purchase similarly priced textiles for the merchandise that is to be made. Have the home collection manufactured in the same country as the apparel collection is made. Monitor the progress being made until the merchandise is received to the warehouse so that no additional charges are made to the company’s budget.
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Press Kit Spring 2013 News Release Contact: Burberry Public Relations and communications Telephone: 594-‐521-‐5569 publicrelations@burberry.com Fax: 594-‐521-‐5600 For Immediate Release Monday, August 19, 2013 Launch Parties for Burberry’s Spring 2013 Home Collection are a big hit Burberry is proud to introduce the Spring 2013 Collection for 2013 with their first launch parties at their anchor wholesale Bloomingdales Stores in New York and Los Angeles. The collection excludes Burberrys original House and Nova Check patterns that are their key trademark check patterns. The launches are set to be a blow-‐out with high profile names and eye-‐catching designs.
A fashion bonanza will take place at the Bloomingdales Burberry shop-‐in-‐shop in Los Angeles, 8500
Beverly Boulevard; and in New York, 1000 Third Avenue. Burberry will launch the new Spring 2013 Home Collection in New York with a bang. The launch will begin at 7:00 pm with the designer of the collection. The designs take a new, innovative and intuitive approach to luxury home collections. The designs reflect a history of Burberry with the classic Nova and House Check.
“We are excited to shift Burberry by creating a home collection that focuses on our multi-‐category
competency.” Notes the Design Chief of Burberry Home, “We thought of where the core customer spends their free time, in their home. This gave us the great idea of offering a home collection in bedding to support the lifestyle of all Burberry customers.” Britishness is very prominent in viewing the collection. End PRESS and STORE BUYERS, please e-‐mail for accreditation. Include name(s) and title(s) of attendees, company name, telephone and e-‐mail address. We will confirm be return to e-‐mail. info@burberrylaunch.com or fax 594-‐ 521-‐5600. EDITIORS: Hi-‐res photos are available upon request.
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Christopher Bailey-‐Designer Biography With a penchant for heart-‐rending music at his shows and the prettiest of people in his ad campaigns (we're talking Lily Donaldson as a flower pot girl for spring/summer 2009, Sam Riley and Rosie Huntington-‐Whiteley embraced for autumn/winter 2008-‐9 and Kate Moss, Stella Tennant and Sophie Dahl shot by Mario Testino for spring/summer 2007), Christopher Bailey has well and truly put his sartorial stamp on the quintessentially British brand Burberry since becoming creative director in 2001. Responsible for the design of all Burberry collections and product lines including Burberry Prorsum, Burberry London, Thomas Burberry and all Burberry licensed products globally, Yorkshire-‐born Bailey is also responsible for the company's overall image including all advertising, corporate art direction and store design. • •
•
Bailey joined Burberry in May 2001. Prior to his appointment at Burberry, Bailey was the senior designer of womenswear at Gucci from 1996 to 2001. From 1994 to 1996 he was the womenswear designer at Donna Karan.
Since joining Burberry, Bailey has won numerous awards and accolades: • • • •
In 2003, he received an Honorary Fellowship from the Royal College of Art, from where he graduated in 1994. He won Designer of the Year at the British Fashion Awards in 2005. In 2006, Bailey was awarded an Honorary Doctorate from the University of Westminster, from where he graduated in 1990. He was named Menswear Designer of the Year at the British Fashion Awards in 2007 and, the same year, also received an Honorary Doctorate of Science from the University of Huddersfield, Yorkshire. 34
• • •
In 2008 he scooped Menswear Designer of the Year at the British Fashion Awards. In the November 2008 issue of Vogue, Sarah Harris documented the diary of Bailey's Burberry Prorsum feather dress. In 2009 Burberry shows at London Fashion Week for the first time.
Previous Press: Burberry Group Plc (BRBY), the U.K.’s largest luxury-‐goods maker, reported fiscal fourth-‐quarter sales that trailed analysts’ estimates and said it remains vigilant as growth slows in Europe. Revenue from continuing operations rose 16 percent to 453 million pounds ($719 million) in the three months ended March 31, the London-‐based company said today in a statement. The average of four analysts’ estimates compiled by Bloomberg was 459.8 million pounds. The stock fell as much as 4.9 percent. Burberry contrasts with LVMH Moet Hennessy Louis Vuitton SA (MC), which said this month that demand is accelerating even as economic growth slows in China and Europe’s debt crisis weighs on consumer spending. The trench coat maker’s quarterly revenue gain was driven by the U.K., France and Greater China and follows a 21 percent increase in the last three months of 2011 on an underlying basis. “We remain vigilant about the external environment,” Chief Executive Officer Angela Ahrendts said in the statement. “Our global teams continue to focus on optimizing our core brand, digital and cultural initiatives, while investing to drive sustainable, profitable growth.” Sales gained 15 percent excluding currency swings. Revenue growth slowed in Europe due to a shift in the timing of wholesale deliveries, while sales in the Americas were affected by the closure of some third-‐party accounts, Burberry said. New Stores Burberry shares fell 4.2 percent to 1,519 pence at 8:32 a.m. in London trading, giving the company a market value of 6.6 billion pounds.
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Retail sales rose 23 percent in the quarter. In Europe, they were “modestly better” in the fourth quarter compared to the third, Chief Financial Officer Stacey Cartwright said on a call with reporters. Wholesale revenue fell 2 percent and licensing revenue dropped 1 percent, the company said. Wholesale revenue growth matched Burberry’s forecast in the fiscal second half. Sales rose the most in the Asia-‐Pacific region, the company said. Burberry is “relatively well positioned in either a benign economic outlook or under more testing economic conditions,” Helen Brand, an analyst at Barclays Capital in London, wrote in a report last month. She has an overweight recommendation on the stock. The company said it plans a 12 percent to 14 percent increase in average selling space in the year ended March 31 2013, opening about 15 mainline stores, mostly in emerging markets and cities with high tourist flows. It also expects mid-‐ single digit percentage growth in wholesale revenue for the first half, while full-‐year licensing revenue should be “broadly unchanged.” Discussions continue between Burberry and Interparfums regarding the potential establishment of a new operating model for the fragrance and beauty business, Burberry said. To contact the reporter on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net
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