Burberry - Marketing Plan by Rutuja Mahajan

Pr o fess o r Al e s s a n dro Ca n n at a

C o n t ri b u t o r s La u ra B o n n i n Na m i t ha Ac ha n di ra Ru t u j a Ma ha j a n

LX F M 7 3 0 : Mar k et i n g o f Lu x u r y Go o d s

EX E CU T I V E S U M M ARY EXECUTIVE SUMMARY Burberry is a leading luxury fashion house headquartered in London, United Kingdom. The brand boasts of a rich and glorious history with a heritage of over 160 years. Its product lines span from ready to wear outerwear, fashion accessories, sunglasses to beauty products and fragrances. Furthermore, the brandâ&#x20AC;&#x2122;s timelessness, elegance and craftsmanship has made it one of the most sought after brands in the world. Burberry being a luxury brand maintains a high pricing strategy which eliminates a lot of lower-end completion. The brand aims to offer great service and comfort to all their customers and focuses on keeping them happy and loyal to them. Burberry has always been a leader in innovation and retail technology when compared to its competitors. With various campaigns (The Art of the Trench, Burberry kisses, inventory sharing), the brand makes sure it stays connected to its customers as it considers digital technology a priority.A major risk for the brand would be an economic downfall. This could steer customers away from buying Burberry products which could put the brand in a financial risk at all times. In this report, an analysis of the brand, two decades from now is being considered. This report focuses on how Burberry can re-emerge itself after two decades, with technological advancements and an ever changing fashion industry. A promising brand extension proposal for this luxury house is being executed. 03

I . C OM PA NY OV E R V I E W H i sto r y

I I . PE R I OD OV E R V I E W Po l i ti c a l a n d E c o n o m i c

S o c i a l a n d Te c h n o l o g i c a l A rt a n d L i te ratu re

I I I . C U R R E NT STATU S

TABLE ON CONTEN T S

V. TA R G E T CO N S U M E R 06

VI . P R O D U CT S A N D VA L U E PROPOSITION

G o als an d Ob jec tives

B ra n d I d e n ti ty Pr i sm

B ra n d Strate g y

I V. M A R K E T A NA LYSI S

-S u sta i n a b i l i ty -Te c h n o l o g y

Ke y S u c c e ss Fa c to r s

Strateg y Ov erview

B ran d Po sitio n in g

U n iq u e Sellin g Pro p o sitio n

VI I . M I X L U X U RY I N G R E D I E N T S Pro d u c t

Pric in g

Pro mo tio n

P lac emen t Peo p le

M a r ke t O v e r v i e w

Co m p e ti ti v e L a n d sc a p e

B ra n d E q u i ty Py ra m i d

Persona

M i ssi o n State m e n t S WOT A n a l y si s

Lifestyle and Demographics

Pu rp o se

VI I I . CO N CL U S I O N

I X . R E F E R E N CE S

COMPA NY OVE RVI E W

HIS TO RY BU R B E R RY

Th e i n ven t i on of gabardi n e; a breat h abl e, w eat h er proof an d du rabl e f abr i c.

The c o mp a ny mo v e d i nt o i t s fi r s t s t o re i n Lo nd o n at 30 H a y ma r ke t .

B r i t i s h Ex p l o re r ; S i r Er ne s t S ha c k l e t o n w o re B ur b e r r y g a b a rd i ne fo r a n ex p e d i t i o n t o A nt a rc t i c a . Dur i ng t he Fi r s t Wo r l d Wa r, B ur b e r r y a d a p t e d i t s w eat he r p ro o f c o at s t o me e t t he ne e d s o f o ffi c e r s a nd s o t he ‘ t re nc h c o at ’ w a s b o r n.

1879

1891

1914-1918

B ur be r r y sponsore d a re cord- break ing f light f rom Croy don to Cape Tow n in an ae ro plane calle d ‘ The B ur be r r y ’ w he re the av iator s w ore B ur be r r y. 1937

B ur be r r y e nte r s a lice nsing agre e m e nt w ith Mitsui to m anuf acture lice nse d product f or the Japane se m ar ke t w ith S any o S hokai.

B ur be r r y w as liste d on the London Stock Exchange f ollow ing an initial public off e r ing. B ur be r r y bought its busine ss in A sia f rom third party distr ibutor s.

Opening o f 121 Regent Street, Lo ndo n, Burberry’s mo st digitallyadvanc ed brand experienc e, bringing every aspec t o f Burberry Wo rld (burberry. c o m) to life in a ph ysic al enviro nment fo r th e first time.

My Burberry fragranc e was launc h ed and th e brand’s ic o nic h isto ry was c elebrated th ro ugh Th e Heritage Trenc h Co at.

Th e brand launc h ed a new fragranc e; ‘Mr Burberry’ with a c ampaign by Osc ar and Turner priz e winner Steve Mc Queen.

1970

2002

2012

2014

2016

1856

1888

1909

1920

1964

2000

2004

2013

2015

The b ran d Bu rb erry was fou n ded by Thom as Burberry.

B u r ber r y got t h ei r gabardi n e pat en t ed. pat en t ed Gabardi n e.

-Burberry store in Paris at 8 Boulevard Malesherbes

The B ur be r r y ‘c he c k ’, w as re g i s t e red as a t ra d e m ar k , w hi c h w as i ni t i a l ly i nt ro d uc e d as a l i ni ng t o the t re nc h coat.

B ur be r r y w as the off icial oute r w ear supplie r f or the B r itish w om e n’s Oly m pic team w ho participate d in the Toky o Oly m pics. pate nte d Gabardine .

B ur be r r y ope ne d its f ir st store on B ond Stre e t, London, re f le cting the brand’s status as an iconic, global lux ur y brand.

B ur be r r y launche d its f irst transactional w e bsite in the Unite d State s. This w as f ollowed by the launch o f a UK w e bsite in 2006.

Th e Burberry Beauty Box o pened in Lo ndo n.

Burberry anno unc ed th e unific atio n o f th ree labels, Pro rsum, Lo ndo n and Brit under a single L abel: ‘Burberry’.

PER IOD OVE RVI E W

P O L I T ICA L & E CO N O M ICA L BU R B E R RY

POLITICAL AND ECONOMICAL Burberry was founded in the year 1856 and during that time, the economy and the political standpoint was very powerful in the United Kingdom. Queen Victoria ruled the country back then. Britain came to be known as the most powerful nation, and its status as the financial capital of the world secured the investment of inflows. Although the country stood at a very good place, it was also involved in a couple of conflicts with other countries. In the 1850’s, the country was going through ‘The Crimean War’. This war was fought mainly on the Crimean Peninsula between Russia and the British, French and Ottoman Turkish. The war arose from the conflict of great powers in the Middle East and was more directly caused by the Russian demands, to exercise protection over the Orthodox subjects of the Ottoman.

S OC I A L Th e m a i n o c c up ati o n b a c k i n th e d a y w a s a g ri c u l t u re . Th e re w a s a m a rke t p l a c e f ro m t h e 1 3 t h c e n t u ry at th e to w n h a l l (c ur rentl y W i l l i s M useum ), w h e re l o c a l s s o l d m eat , c h e e s e a n d m i l k . D u ri n g t h e m i d 19th c entur y, Br i ta i n w a s p ra c ti c a l l y r ul i ng t h e w o rl d . Th e y w e re t h e ri c h e s t a n d a ve ry p o w e rf u l n at i o n i n th e w o r l d . M a l ti ng w a s a no th er m a j o r i nd u s t ry. A l o t o f f a c t o ri e s w e re e m e rg i n g . A f a c t o ry c o n s i s t e d o f m o re th a n 50 w o r ker s, a l o ng w i th th e u s a g e o f m a c h i n e ry f o r t h e p ro d u c t i o n . I n c rea s e i n f a c t o ri e s resul ted i n m o re em p l o y m ent a nd th e b ett e rm e n t o f t h e l i ve s o f t h e m i d d l e - c l a s s p e o p l e , t o w a rd s t h e end o f th e 19th c entur y. So c i a l i ssues l i ke c h i l d l a b o r w a s o b s e rve d . Th e Fa c t o ry A c t w a s p a s s e d i n 1833 a nd 1848, w h i c h sa i d th at th e fa c to r i e s c a n n o t ru n f o r m o re t h a n 1 2 h o u rs a n d c h i l d re n b e l o w 1 0 y ea r s c a nno t w o r k. Besi d es th at, i t sa i d th at w o m e n a n d o l d e r c h i l d re n c o u l d w o rk f o r 1 0 h o u rs a d a y. TE C H N OLOGICA L

S OC I A L & T E C H N O LO GICA L BU R B E R RY

I n th e 19th c entur y, I nd ustr i a l rev o l uti o n i n B ri t a i n c a m e a l o n g w i t h m a n y t ra n s f o rm at i o n s . B ri t a i n w a s l ea d i ng i n eng i neer i ng a nd tec h no l o g y. A m a j o r i n ve n t i o n w a s t h e ra i l w a y ; w h i c h w a s a ve ry i m p o rt a n t fa c to r th at w a s o b ser v ed d ur i ng th e d ev e l o p m e n t . Ra i l w a y s h e l p e d i n i m p ro vi n g t ra n s p o rt at i o n a n d c o nnec ti v i ty. I t b ec a m e ea si er to tra nsp o rt ra w m at e ri a l s a n d t h e f i n i s h e d g o o d s t o va ri o u s o t h e r c i ti es, w h i l st i m p ro v i ng th e b usi ness a nd tra d e b e t w e e n m a j o r c i t i e s . Fa c t o ri e s s t a rt e d e m e rg i n g a n d a tra nsfo r m ati o n w a s o b ser v ed fro m ‘ m a ki ng g o o d s b y h a n d ’ t o ‘m a k i n g g o o d s u s i n g m a c h i n e s ’. S e w i n g m a c h i nes, tel ep h o ne, el ec tr i c b ul b, p h o t o g ra p h s , c a m e ra s e t c . w e re i n ve n t e d d u ri n g t h i s p e ri o d , resul ti ng i n th e g ro w th o f tra d e.

ART A N D L I T E R ATU R E BU R B E R RY

ARTS A N D LI TE R ATU R E W h en Bur b er r y w a s fo und ed , th e Vi c to r i a n e ra s a w a f u s i o n o f ro m a n t i c i s m a n d rea l i s m . I n t h e f i e l d o f l i terature, A l fred Lo rd Tenny so n a nd Ro b e rt B ro w n i n g w e re t h e t w o m a j o r n a m e s . Th e O ri g i n o f Sp ec i es w a s a g reat d i sc o v er y b y th e fath e r o f e vo l u t i o n , Ch a rl e s D a rw i n . I t d i d c reat e a c o n f l i c t a n d d eb ate o n h i s th eo r y. C h a r l es D i c kens; know n f o r h i s b o o ks l i ke t h e ‘G reat E x p e c t at i o n s ’ a n d ‘ Th e ta l e o f tw o c i ti es’ w a s a g reat no v el i st. Th e a rc h i t e c t u re d u ri n g t h i s p e ri o d w a s g reat l y i n f l u e n c e d b y th e G o th i c sty l e, esp ec i a l l y th e rel i g i o us b u i l d i n g s l i ke Ch u rc h e s . Th e A rt s a n d Cra ft m o ve m e n t c a rr i ed o ut b y W i l l i a m M o r r i s, w a s a n i m p o rta n t m o ve m e n t d u ri n g t h e 1 9 t h c e n t u ry f o r t h e p re s e rvat i o n a nd rev i v a l o f th e tra d i ti o na l Br i ti sh a rts. I m p re s s i o n i s m w a s o b s e rve d t o o, b e c a u s e o f t h e p e n e t ra ti o n o f th e Frenc h i m p ressi o ni st a rti st to Lo n d o n . 19

CUR R E NT S TATUS

M IS S IO N S TAT E M E N T BU R B E R RY

“Our b usi ness i s a b o ut m o re th a n w h at w e d o ; i t ’s a b o u t w h o w e a re . A t B u rb e rry, w e s e e o u r b u s i ness a s a v i b ra nt g l o b a l c o m m uni ty m a d e u p o f d i ve rs e i n d i vi d u a l s , w i t h va ri e d b a c k g ro u n d s c o n nec ted th ro ug h sh a red v a l ues w i th th e p ur p o s e o f p o s i t i o n i n g i t s e l f a s a B ri t i s h l u x u ry b ra n d w i t h a g l o b a l p resenc e. Our o rg a ni z ati o n i s uni q u e l y d i ve rs e a n d m u l t i - n at i o n a l , w i t h e m p l o y e e s o f a ro u n d 100 d i fferent nati o na l i ti es o p erati ng i n o v e r 3 0 c o u n t ri e s a c ro s s a l l re g i o n s . Th i s d i ve rs i t y c o n t i n u e s to enr i c h a nd streng th en o ur c o m p a ny ’s c u l t u re , d ri vi n g o u r s u c c e s s a s a l u x u ry b ra n d . O ur c o m m uni ty i s h i g h l y c o l l a b o rati v e a nd s i m u l t a n e o u s l y e m b ra c e s b o t h ; i n t u i t i ve a n d a n a l y t i c a l p er sp ec ti v es. We str i v e to a c h i ev e a p er fec t b a l a n c e b e t w e e n a rt a n d c o m m e rc e a n d c reat e a u n i q u e env i ro nm ent, i n w h i c h c ro ss-func ti o na l c o l l a b o rat i o n , a c ro s s t ra d i t i o n a l l y s e g re g at e d t ea m s , i s e m b ra c ed . I t i s th ese unc o nv enti o na l i ntera c t i o n s t h at f u e l i n n o vat i o n a n d h e l p d ri ve o u r s u c c e s s a s a g l o b a l o rg a ni z ati o n” 23

Burberry has a distinctive British sensibility and a strong heritage of 161 years.

The brand is easily accessible on shopping high streets. It has no focus on couture presence.

Targets dual-gender audience Burberryâ&#x20AC;&#x2122;s distinctive checkered pattern is synonymous with the brand The brand has a good global presence with over 500 stores in 50 countries Burberry has a wide global network of retail, wholesale and licensing channels

The younger generation who aspire their lifestyle cannot afford their products due to its high pricing. Burberry has limited product lines (apparel, beauty, accessories and fragrances)

Recipient of the Royal warrants; by Queen Elizabeth II and Prince Charles; the brand has the potential to advertise that they have supplied products to the royal family (Instyle, 2012).

S W O T A N A LY S IS

The brand uses celebrities for endorsements and advertises in high end fashion magazines like Vogue

BU R B E R RY

O Impactful advertising and marketing campaigns to elevate the brand image and visibility. The brand can expand into new product lines/services. Eg. home decor/ Burberry hotel Initiate more collaborations with luxury brands, in sectors other than fashion, like how the brand collaborated with Apple to create its channel. Collaborations could expand even further (For instance, into other sectors like automobiles, i.e. BMW/ Mercedes), in turn, bringing out a grand global expansion.

T Competitor brands like Dior, Gucci, Versace and the like, can be a major threat in terms of product price range and availability to the customers. Market share could be affected (reduced) due to the intense competition that Burberry faces. Sale of knock offs at a cheap price can damage the brandâ&#x20AC;&#x2122;s value & image.

BRAND PHYSIQUE

PERSONALITY

Logo, Iconic Checks, British heritage

Sophisticated, Classic, Innovative Structured

RELATIONSHIP MODE

BR AND IDENTITY

Trust, Innovation, Easily accessible

BU R B E R RY

CUSTOMER REFLECTED IMAGE Technology pioneering, high status

BURBERRY IDENTTIY PRISM

CULTURE Authentic British Heritage

SELF CONCEPT Confident, Influential, Elite

Brand Identity Prism, Kapferer

• B ritish H eritag e • C raftsman ship

E SSE NC E

• Tren c h Co at

• B u rb erry c hec ks • H ig h q u ality

• H ig h so c ial strata

B R A N D EQ U I T Y P Y R AM I D

• P latfo rms: Ru n way sho ws, marketin g in n o vatio n s,

BU R B E R RY

PI L L A R S

c amp aig n talen t o r mu sic an d u sin g d ig ital med ia • Exc lu siv e

• So p histic ated • In n o v ative

• Distin c tive g lo b al lu xu ry

PE R SONA L I TY

b ran d

B R A N D S T R AT E GY BU R B E R RY

UNIQUE REVELATION Burberry is a global British luxury brand with heritage in design, innovation and craftsmanship. With the invention of gabardine by Thomas Burberry more than 130 years ago outwear has been at the core of the business and remains so today – best expressed through the iconic Burberry trench coat. BELIEF SYSTEM - BURBERRY’S CULTURE Burberry is a global British luxury brand with a heritage of design, innovation and craftsmanship. With business model classified as a distinctive global luxury brand. Guided by its core values of protect, explore and inspire. Burberry is dedicated to first a distinct culture with a global team mindset and pioneering spirit, underpinned by a commitment to responsibility. BURBERRY STRATEGY: The Burberry strategy is composed of five main parts; Brand First, Customer Centric, Product Excellence, Productive and Responsible. The brand business is led by the brand, with decisions taken its best long-term interests. The customer is central to the company’s activities as Burberry aims to be sector leading in understanding, engaging and serving customer both online and offline. The other key theme is the product excellence is to commit to the creation of authentic and distinctive products and continuous innovation in design and manufacturing. The productive and responsible theme is the efficient ways of working are a priority across the organization, together with ensuring a culture of responsibility. 31

B R A N D S T R AT E GY BU R B E R RY BRAND RITUALS: Enhancing the English heritage Innovative Technology Celebrity endorsement Nurturing and rewarding talent Connecting and engaging teams globally Promoting fair and responsible employment practices Collaborations with artist Investing in communities Driving environmental sustainability DISTINCTIVE LEXICON: Burberry Checks Burberry Prorsum Checks Burberry Trench Coat Garbendine 33

MARKET OVERVIEW With the present trend direction inclining towards sustainability and organic products, and the increasing awareness amongst the people, the forecast for the year 2035 would be apparel brands working towards sustainable fashion. Besides that, the reduction in brick and mortar stores will continue to happen over the years. The customer shopping behavior is most likely to be driven by technology, considering the dependence on technology over the past few years. This progression will continue to grow in the future as well.

THE SIZE OF THE MARKET The market essentially consists of those who are the potential buyers. All technology savvy individuals, travelers, those who pay heed to sustainable fashion, individuals who prefer organic materials and apparel. Also, the competitors in the apparel sector who follow a similar strategy. Global sales of luxury goods (in 2016) is as follows:

MAR K ET A NA LY S IS

The net luxury goods sales = US $ 222 billion. US $ 191 million is the minimum sales required for luxury brands to make it to the “Top 100 luxury goods companies” list. The average luxury goods sales of top 100 luxury goods companies is US $ 2.2billion Composite return on assets =9% Composite net profit margin = 11.4 % The compound annual growth rate in luxury goods sales, 2012-2014 is 6.1% Therefore, the growth and sales show that, by 2035, Burberry will be a leading luxury brand.

GROWTH POTENTIAL AND OPPORTUNITIES: The brand sees a growth potential in creating a sustainable environment, by exploring organic materials. With the advancement of technology, there could be new means of manufacturing garments in lesser time than the traditional methods used today. Burberry being an innovator, will come up with a material that helps the wearer adapt to all weather conditions throughout the year. This product would be a traveler’s preferred choice and would excel in the ‘travel apparel’ category. With a lot of people travelling extensively, this is a good space to explore in the market. Burberry will retain its aesthetics and infuse wearable technology, targeting sustainability.

COMPETITIVE ADVANTAGE: Brands like Stella McCartney, â&#x20AC;&#x2DC;Honest byâ&#x20AC;&#x2122; by Bruno Pieters, Patagonia, Iris Van Herpen and Edun, deal with sustainable fashion and therefore become competitors. On the other hand, Gucci, Dior, Calvin Klein, Chanel, Ralph Lauren are the brands that are leading in technology. Burberry is going to emerge as a blend of sustainability and technology over these competitor brands. It will be the first brand to come up with a technology embedded, all-season garment for travelers. This garment would also be environmental friendly, requiring fewer washes and no iron, thus making it a sustainable product.

CO M P E T I T I V E L A N D S CA P E S U S TA I N A B I L I T Y

CO M P E T I T I V E L A N D S CA P E T E C H N O LO GY

KEY SUCCESS FACTORS

K E Y S U C C E S S FACTO R S BU R B E R RY

• • • • • • • • • • • •

Technology Innovation Sustainability Textile creation Customization Store location Runway shows Collaborations Excellent Quality Timeless design Craftsmanship Heritage

STRENGTHS • Stella Mccartney: Innovation Sustainability Excellent quality Design • Honest by: Transparency Sustainability Excellent quality Design • Gucci: Technology Design Quality Heritage

COMPETITIVE ADVANTAGES • Stella Mccartney: Innovation (natural fibers) • Honest by: Transparency • Gucci: Technology Collaborations Innovations • Ralph Lauren: Technology Extensive distribution

DIFFERENTIAL COMPETITIVE ADVANTAGES • Stella Mccartney: Innovation • Honest by: None • Gucci: Collaborations • Ralph Lauren: None

• Ralph Lauren: Technology Brand identity Design Extensive distribution

TAR G E T CO N S U M E R S BU R B E R RY

TARGET CONSUMERS Burberry’s target consumer will be a mix of both male and female, around the 30’s – 50’s years of age. The consumer will be an educated person, who is aware of the benefits of sustainability, and also appreciates a valuable heritage brand like Burberry. The focus of the Burberry luxury consumer will be integrated by the way they communicate throughout their campaigns and technological devices, in order to reach global consumers. The predictions are that, the target consumer will be both; emancipated and aspirational. The emancipated luxury consumer; because the brand has iconic pieces that consumers will be willing to pay for, in addition to the customization side of the brand. This will be based on the whole experience provided at the stores. The aspirational consumer; because of the lifestyle, this person bases his/her decisions, which will also be a good fit for Burberry; a star brand that concentrates on being considered a connoisseur brand , due to their excellence in service and products, for over 160 years. In conclusion, the customer will widely vary, due to the range of products offered and ever changing trends. However, a typical consumer will be a luxury native or an explorer, i.e. a 30-yearold woman. 43

Name: Alexandra Lives in Madrid Profession: Accountant Age: 32 Income: Middle Income Wealth: Financially Secure Time: Balanced Level of Knowledge: Luxury explorer Personal Preference: Superstar

TAR G E T CO N S U M E R S P E R S O N AS

Name: Robert Lives in Chicago Profession: Lawyer Age: 41 Income: High Flyer Wealth: Trust Fund Society Time: Work Obsessed Level of Knowledge: Luxury Native Personal Preference: Understated

PRODUCT S A ND VA LU E PR OPOS I T ION

GOA LS A N D O B J E CT I V E S BU R B E R RY

GOALS Burberry aims at being a connoisseur brand by focusing on technology and positioning itself as a sustainable brand amongst the heritage brands in the market. Over the years, the brand has always been a pioneer is using technology to promote themselves. In the future, they would be seen investing on technology to buy new machines that would create textiles/ fibers for the brand.

STRATEGY The strategy of the brand Burberry is to emerge as a luxury brand with a store lab in London. The store lab gives an opportunity to the customers to see the entire process of making ‘sustainable fabric’, in real time. The customers also have the luxury to customize their products with their preferred choices of fabric, from the swatch library offered at the store lab. This allows the customers to make an educated and informed choice. The purpose of this lab is to be able to communicate the key themes of the brand with an emphasis on customer centric innovative experience that focuses on technology, fashion and sustainability. OBJECTIVES

S T R AT E GY O V E R V I E W BU R B E R RY

OBJECTIVE 1: • Create five different sustainable textiles in the store lab, by the end of the year; 2051 • Have a research team that invest in textiles • Have data platforms to stay up-to-date with the trends • Choose a partner to collaborate with; for technological machines that can create textiles • Invest in a highly-qualified team in relation to fashion and sustainability • Patent the sustainable innovative fabrics OBJECTIVE 2: • The creation of the store lab • Choose an architect • Have an interior designer • Choose the latest technological equipment (machines, sound system, media screens, iPads) • Technological window display (British décor) OBJECTIVE 3: • Excellent store experience • Customer service • Serve the customers with British beverages • Provide brochures of the sustainable line OBJECTIVE 4: • Have successful marketing and advertising campaigns • Create innovative materials for social media platforms • Photoshoot of their sustainable line • Videos that cover ‘behind the scenes’ of the textile making process • Innovative graphic designers

U N I Q U E S E L L I N G P R O P O S I T IO N BU R B E R RY

A luxury brand with a heritage of a classic British style that focuses on innovation; in terms of technology and sustainability. Burberry’s ‘store lab’ in London, gives their global customers, the luxury to see the fabric making process and also customize their products in any store around the world.

BRAND POSITIONING Burberryâ&#x20AC;&#x2122;s positioning amongst its competitors, 35 years ahead in time, will be based on two key elements i.e. technology and sustainability. The competitors in terms of technology will be based on data and digital platforms. The direct competitors will be luxury brands like Gucci and Chanel, while the indirect competitors will be premium brands like Ralph Lauren and Calvin Klein. Based on the sustainability factor, their competitor in the luxury domain is Stella McCartney and amongst the premium priced brands is Patagonia. Both these brands have been leaders in developing sustainable fabrics in wearable apparel. High (Technology)

PERCEPTUAL MAP (TECHNOLOGY)

B R A N D P O S I T IO N I N G Low Price

High Price

BU R B E R RY High (Sustainability) Low (Technology)

Low Price

PERCEPTUAL MAP (SUSTAINABILITY)

High Price

Low (Sustainability) 55

M I X OF LU X U RY I N G R E D I E N T S

PRODUCT Burberryâ&#x20AC;&#x2122;s products in the future will have an aesthetic, functional and symbolic value. - The aesthetic value will be based on classic and elegant apparel style. - Their functional value will be the excellence of the fabric, based on durability and sustainability. - The symbolic value of the product will be the lab store because it will represent their core value as a connoisseur brand, by which the brand will be able to communicate its key elements.

M I X OF LU X U RY I N G R E D I E N T S P R IC I N G

PRICING Burberry’s pricing will be considered ‘extra’ as it will position itself as a connoisseur brand that focuses on sustainability and technology. Moreover, the pricing will have a positive elasticity as it will be based on the demands of the customers.

M I X OF LU X U RY I N G R E D I E N T S P L AC E M E N T

PLACEMENT Burberryâ&#x20AC;&#x2122;s global appearance will focus on its heritage and primary location where the store lab will be executed. Even though Burberry will focus more on the lab, it will retain its global appearance by having stores in key locations like Asia and the United States. In these stores, their customers will be able to have a poly sensual experience. Their magnificent location will translate their poly sensuality, by seeing their technology inside the store and the fibers of the apparel. They will also be able to feel the innovative fabrics created in the lab. In addition to that, the customers will be able to taste a British flavor in the tea or Gin. Furthermore, the customers will be able to listen to British music inside the store and smell the Burberry fragrances.

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PROMOTION For the future Burberrys promotion will be focused on different platforms but they will be highly concentrated in digital media platforms. The platforms will be similar for what is today Facebook, Snapchat, Twitter, Instagram, YouTube and Pinterest. Due to the focus on the company as they invest in digital programs it is clear that they will follow this type of platform that is offers a seamless and personalized experience. The promotion will also involve the celebrity endorsement and the special events and collaborations with the special artist of that period in time, as they will be trying to reach a specific luxury market, the connoisseur customer. 63

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PEOPLE Burberryâ&#x20AC;&#x2122;s external people will be both luxury explorers and native because of the aesthetic and symbolic value. They are primarily those who seek prestige, fashion conscious people, oriented towards sustainability and technology. The customers will be able to make an educated choice because of the transparency and openness of the brand. Internal people will include Burberryâ&#x20AC;&#x2122;s employees, designers and collaborators/partners that will enable the brand to translate their key elements by providing impeccable service and products. 65

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PURPOSE The purpose of the brand is to be a connoisseur brand leading in technology and sustainability, by achieving excellence through uniqueness and contributing to the society. Burberry will make responsible choices based on sustainability and ensure that the external and internal people are associated with the brand. For example; currently the brand has strategic collaborations like ‘Ethical Trading Initiative’ and ‘Living Wage Foundation’.

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CONCLUSION In conclusion this project is based on how will wearable technologies impact the fashion industry in 35 years but specifically on Burberry brand in a global geographical context. Because of Burberry focus and direction it looks like the end goal of Burberry is to become a connoisseur brand focusing on technology and positioning itself as sustainable brand among the heritage brands in the market. Over the evolution of the brand they have always been pioneers in the development of innovative technology which means that as the world is moving forward and embracing technology as it is this looks like the perfect opportunity for Burberry to step up its game and reach another level in the luxury fashion market industry. Due to the trends and the direction of the consumer of this market Burberry will lead the market by using the technology to create new sustainable fabrics which will allow the customer to customize their products. In addition the technology will be used as a channel for communicating its brand and its value throughout the different digital media platforms and to enhance the customer experience in the stores.

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Farmer, Chad, Bob Domenz, Irene Etzkorn, D&AD, and Miho Aishima. “Burberry, the Icon of Fashion Brands.” Brandingmag. Brandingmag | Narrating the Discussion, 04 Apr. 2017. Web. 29 May 2017. Global Powers Of Luxury Goods 2016. 1Contents (n.d.): n. pag. Web. “How Burberry Became the Top Digital Luxury Brand.” Digiday. N.p., 20 Mar. 2017. Web. 29 May 2017. “Ralph Lauren Corporation– Digitization in the Luxury Retail Business.” Technology and Operations Management. N.p., n.d. Web. 29 May 2017. States, Burberry United. “Burberry (United States) | Iconic British Luxury Brand Est. 1856.”Burberry. Burberry, n.d. Web. 29 May 2017. The Development Course of Burberry. N.p., n.d. Web. 29 May 2017. Three Tips for Successful Rebranding.” Sustainablebrands.com. N.p., n.d. Web. 29 May 2017. http://www.burberryplc.com/documents/ar-15-16/burberry_annual_report_2015-16.pdf http://www.bas-herit-soc.org/A_short_History_of_South_View.pdf https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/consumer-business/ch-en-cb-global-powers-of-luxurygoods-2016.pdf