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TABLE OF CONTENTS
Introduction Company Overview Market Analysis Target Consumer Products & Value Proposition
INTRODUCING...
Take a step 32 years into the future with the iconic and historic luxury brand, Burberry. Since Burberry’s inception in 1856, the brand has provided quality products to some of the world’s most distinguished people. Known for their sand colored trench coats and red, brown, and black check, Burberry has stood the test of time. Burberry’s marketing strategy in the year 2050 will aim to intertwine their almost 200 year history with cutting edge technology of the time. The new strategy will take into consideration the brand’s rich heritage and find a way weave that into new products for their 2050 customer. The overall goal of this marketing strategy is to expand upon Burberry’s brand awareness and brand loyalty. This new strategy is broken down into three main themes; customization, fabrics, and technology. These three specific themes have been developed specifically with the needs of the 2050 Burberry customer in mind and will ensure Burberry’s success and relevance 30 years down the line. Pushing boundaries, incorporating the latest technology, while staying true to their heritage encompasses what Burberry 2050 is all about. Welcome to Burberry, in the year 2050.
to implement the next phase of its transformation. By re-energising our product and customer experience to establish our position firmly in luxury, we will play in the most rewarding, enduring segment of the market. We have the foundations to build on and the team to execute our plans. This will enable us to drive sustainable growth
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Now is the right time for Burberry
and higher margins over time, whilst continuing to deliver attractive returns to shareholders.
- Marco Gobbetti, Chief Executive Officer
COMPANY OVERVIEW
HISTORY OF BURBERRY
In 1835, Thomas Burberry was born in Brockham Green, Surrey. Burberry worked as an apprentice draper until he founded the authentic British brand, Burberry, in 1856, which specialized in outerwear. Thomas Burberry identified his community’s needs through observation and acknowledged that his consumers desired products that were suitable for various outdoor activities, such as horseback riding, hunting, and fishing. Consequently, Burberry decided to research and develop weatherproof fabrics. After years of experimentation, Burberry invented gabardine, a weatherproof, breathable, ventilated, light-weight, twill fabric composed of cotton or wool, in 1879. By 1891, the heritage brand opened its first store in Haymarket, London. Before long, the brand expanded into locations in Winchester, Reading, Liverpool, and Manchester. Both, agents and wholesale channels were also distributing its products. As Burberry’s popularity grew, the brand decided to create the Equestrian Knight logo to signify its movement forward.
led to the creation of the Tielocken, the precursor of the trench coat, which was designed to purpose the Armed Forces during World War I. Many high profile members of society have appraised Burberry, including royalty. In 1919, HM King George V appointed the brand as a Royal Tailor. In 1955, HM Queen Elizabeth II allowed the brand to be the Royal Weatherproofer. Also, in 1990, Burberry was also appointed the outfitter of the HRH Prince of Wales. On top of this, various record breakers and explorers, such as Claude Grahame-White and Roald Amundsen, have worn the brand’s innovative garments during their endeavors.
After Thomas Burberry retired from his empire, the brand became public. It was not until the year 2000 that the company announced its luxury status by opening a store on Bond Street in London. Since then, the iconic British brand has launched a worldwide website, formed three joint ventures, launched the Burberry Foundation, joined the Ethical Trading Initiative, and opened a digitally-advanced location focused on the consumer Years later, the gabardine invention experience.
TIMELINE OF BURBERRY
1856 Burberry was founded as an outerwear company by Thomas Burberry
1879 Thomas Burberry invented gabardine.
1891
1920
1919
Company went public on the London Stock Exchange
High profile societal members and royalty praised Burberry
Opened first store in Haymarket, London
1901
1941
The Equestrian Knight logo was created to signify the company’s movement forward
The Tielocken was used during WWI
COMPANY F O U N D AT I O N POLITICAL The iconic trench, otherwise known as the “Tielocken,” tells the political story of Britain. When the founder Thomas Burberry invented the waterresistant trench coats with a breathable waterproof fabric coining the term “gabardine,” the trench quickly became a trusted coat that became a British standard for officers during World War I, hence the name “trench coat.” During WWI, the Allies and opposition German forces dug deep defensive lines from the North Sea to the Swiss border. Soldiers in the trenches wore long heavy grey overcoats which had been the regulation for British forces garments since the Crimean War of the 1850’s but proved to be unsuitable for the desperate conditions. The lighter, shorter, waterproof coats showed to have practical benefits; epaulettes displayed an officer’s rank while a gun flap buttoned at the chest provided
additional protection during combat, equipment such as map cases and others attached to D-rings on the belt and the covered upper back acted as a storm shield, enabling water to run off the coat. The khaki color also had an important role, so that the soldiers did not stand out. Khaki, the Hindi word for dust, proved advantageous over the previously brightly colored European uniforms that were associated with honor made soldiers stand out as targets. After the time of the Indian Mutiny in 1857, the attitude towards the uniform changed from honor of the country to pragmatism, functionality and less decorative features. With the appeal of the qualities embodied by the armed forces, the trench coat became popular with both men and women as a unisex item that was connected to the idea of heroism and patriotism.
COMPANY F O U N D AT I O N SOCIAL Burberry had another breakthrough in the 1920’s with the creation if its iconic check that tells a story of class, Britain and “luxury,” based on the UK’s various social strata. The check is a Scottish tartan design with a base in beige that is accented by black, red, and white. Originally, the check was only used as lining on coats and took more than forty years from the origin to become a fashion statement. Created in 1967, the Burberry scarf was a result of an accident by the manager of Burberry Paris store showing the “house check” pattern by wanting more color to the trench coat displays. The check became a hit with customers selling out several hundred umbrellas before the cashmere scarf took off. The Burberry check became popular among the British elite and a status symbol. In the late 70’s and 80’s the “Sloane Ranger,” a style regarding a set of hip, upper crust Londoners around the area of Chelsea had prominence, taking on a more traditional style that reveled in class and status; men wore suits, and women wore pearls. The style became ubiquitous among the upper class, and Burberry was among their favorites luxury brands. However, as luxury brands became synonymous with financial success, lower classes desired luxury logos, whether the product was authentic or counterfeit. During the 90’s “logo wave,” the Burberry check was among “chav” culture. Brands such as Gucci, Chanel and Burberry were on the rise during this period and sought-after among lower income and international customers, diluting the brand’s luxury reputation and becoming a cultural staple. In Britain, the embrace of a luxury brand by popular culture is substandard. This overexposure was eventually turned by previous creative director Chris Bailey and executive Angela Ahrends by buying back licenses and thus establishing the check once again as a more exclusive design.
COMPANY F O U N D AT I O N
ECONOMIC
B R I TA I N ’ S I N D U S T R I A L R E V O L U T I O N
Besides woolens, cotton silk and linen cloth, manufacturing became important after 1600, with iron and coal that lead the Industrial revolution. During the 1770s to the 1820s, Britain experienced an economic change that transformed an agrarian economy into the world’s first industrial economy. Great Britain provided the legal and cultural foundations that enabled entrepreneurs to pioneer the industrial revolution. A previously manual labor and draft animal-based economy changed towards machine based starting with the mechanism of the textile industries, and development of iron-making techniques and use of refined coal. Trade was enabled by canals, improved roads and railways. Factories employed in high productivity urban jobs. Steam power, water wheels and powered machinery in textile manufacturing underpinned increases in production capacity. The development of all-metal machine tools facilitated the manufacturing of production machines for industries. The Industrial Revolution we could discern was the precursor to the birthing of luxury goods such as Burberry. Water powered mills were constructed in rural locations near streams or rivers in Scotland.
ECONOMIC
A SMALL VICTORIAN OUTFITTER’S SHOP Originally established as a Victorian outfitters shop in Basingstoke, Hampshire, Burberry Group PLC is now a leading global fashion brand that sells womenswear, menswear, non-apparel and children’s wear. In 2009 the company’s luxury goods market estimated a retail value over 150 billion Euros. The founder, Thomas Burberry was born in 1835 in Brockham Green Surrey with parents that were grocers and farmers. Opening his own shop after an apprenticeship at a local draper’s shop, Burberry had already identified the needs of the local community, and the farmers; by 1861 he was already employing 7 men, 3 boys and 7 females in a small country town that had a population of around 4,500 people. Whilst researching and experimenting with materials to produce weatherproof fabrics for outdoors sports such as fishing, hunting, and riding, by 1871, he had employed 70 people, and moved to a house in Basingstok of 160 acres. In 1891, the company expanded after the result of the Gabardine, opening shops in Haymarket, London, Reading, Manchester, Liverpool, and Windchester selling Burberry products through thousands of agencies exporting to Paris, New York and Buenos Aires. Burberry products were endorsed by the rich and famous as well as celebrities, and used for Arctic, and Antarctic explorers, as well as the armed forces. Thomas Burberry retired in 1917, and the company went public on the London Stock exchange in 1920.
COMPANY F O U N D AT I O N
TECH
Machine technology and the human component are relied upon to create Burberry coats and scarves. Traditional and modern techniques together are combined to create the signature gabardine made at the Burberry textile mill near Keighley, England. Before being colored and spun into super-strong yarn, cotton fibres are chosen for length and fineness. 127 processes are involved in the making of a single Burbery trench coat and takes almost a year for the specialist tailor to learn the stitching of the collar which is the most intricate part of the trench coat’s construction comprising of more than 180 stitches to create a fluid curve for the collar to sit perfectly on the neck. All classic trench coats that carry the Burberry Established label are made in England. There are four key features to the tailoring of the coat; a hand-sewn collar, inverted wedge pleat, Burberry check lining and the under-collar check – as well as the classic epaulettes, throat latch, black rain shield, gun patch/storm flap, cuff wrists, trench belt, d-rings and raglan sleeve. The original function of the Burberry trench coat was to protect the military during the First World War. 500,000 coats were reported to be worn by officers. Burberry also provided for several polar explorers including Sir Ernest Shackleton who wore the Burberry gabardine for three expeditions in the early 20th century. In 30 different steps, cashmere scarves are woven in a traditional loom in Elgin, Scotland, in one of only two remaining vertical mills at a 200-year-old family run mill. The fibers are brushed by natural teasels, then washed in the local River Lossie, removing the leftover oil from weaving then hand-finished and hand-checked for quality. The fringes of the scarf are created on a complex machine that twists each thread together from a back-and-forth movement.
ART & LIT
Before shades are blended together, cashmere is dyed for up to six hours creating rich and vivid colors, then teased to open up the fibers and combed on carding machines into individual strands. Cashmere threads are spun into yarns of a specified weight, twist and strength, then woven on complex looms individually set up for each pattern change. Besides being the coat of choice on trenches and battlefields, the trench coat started to gain a celebrity status in period between World Wars, Burberry had been a silent influence in Hollywood films. The golden age of Hollywood paid homage to the trench coat was seen in various films worn by stars. Many characters wore the iconic garments such as detectives, gangsters, femme fatales, and leading men (and women). In the 1941 movie, The Maltese Falcon, Humphrey Bogart wears an Aquascutum Kingsway trench, as well as in infamous scenes in 1942’s Casablanca, delivering the classic “here’s looking at you kid” line and 1946’s The Big Sleep. Marlene Dietrich and Audrey Hepburn have also adorned the coats, in Breakfast at Tiffany’s as Holly Golightly looks for “Cat” and has a climatic kiss. Actresses such as Marilyn Monroe in Let’s Make Love has also sported the coat. Powerful roles made the trench coat an even more covetable item as they were effortlessly cool and carried the persona of the powerful, fearless, brave, and mysterious.
To maintain the integrity and vitality of the brand, at the same time, continue to develop the
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MISSION S TAT E M E N T
business which remains relevant to the evolving markets and consumer tastes.
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• Iconic, well known brand globally • Recognizable products, such as their distinctive check pattern and trench coat • Global Presence and wide distribution, Burberry has more than 500 stores in 50 countries • Large associations with international celebrities and British royalty • Seamless integration and branding between retail and online shops
• High operating cost, production in the UK is expensive and the brand has been working recently to find new ways to find cheaper production facilities while still creating high-quality products • Single brand strategy • Low inventory turnover making it harder for consumer to buy their desired product because things are often sold out
• Expansion of product lines such as skincare • Increasing demand for premium products in developing markets • Developing emerging markets such as the Middle East and South Asian Countries
• Counterfeits and imitation of products that can affect the brand equity overtime • Chinese luxury industry slowdown which could lead to a smaller amount of Chinese consumption of Burberry • Rising raw material cost that could affect Burberry’s overall profitability
O T
BRAND IDENTITY PRISM
PHYSICAL
PERSONALITY
Signature Burberry Tartan Print
Quality Oriented
Trench Coat
Creative but Classic
City Clothing, specifically rainy London
Rugged City Aesthetic
Signature Horse Emblem
RELATIONSHIP Uniqueness Relatable to Everyday Needs Practical
CULTURE Culturally Diverse Valuable Environmental Conscious
Expensive
REFLECTION Timeless Youthful Classic
SELF-IMAGE Quality-Oriented Traditional Cross-Cultural
Internalization
Externalization
Heritage (British)
BRAND IDENTITY M AT R I X
BURBERRY AS A...
PRODUCT
ORGANIZATION Global Refined Heritage Culturally Inclusive Classic
PERSON Edgy Cultured Well Traveled Trendy Sophisticated
SYMBOL
KELLER’S PYRAMID Resonance
Loyal Customer Base, Strong Engagement with Customers, Dependable, Conscious of Social Issues
Judgments
One of the Top Luxury Brands in the world, Easily recognizable, Strong and Loyal Customer Base, Superior Quality, High Priced
Feelings
Classic, Heritage, Innovative, Sleek, Luxury
Performance
Iconic Tartan Print, Edgy Designs, Classic, Distinct Horse logo, Signature Colors (Tan & Gold), Aspirational and Absolute Customer Base, Wide Range of Product Offerings, Quality Products
Imagery
For the youthful and successful customer, that wants to add a level of sophistication to their everyday wardrobe, in the board and outside of the boardroom. Burberry features a wide range of prices and product offerings, with most items leaning towards the higher price end Although, the items are high priced, Burberry strives for quality, superb customer experiences and environmentally friendly practices.
Salience
Burberry is a luxury brand that focuses on luxury everyday offerings for men and women, ages 20-47. Burberry focuses on exceptional quality, innovation and exceptional customer service.
RESONANCE
JUDGEMENTS
FEELINGS
PERFORMANCE SALIENCE
IMAGERY
MARKET ANALYSIS
MARKET OVERVIEW
The overall luxury goods market encompasses not only luxury goods but luxury experiences as well. Luxury experiences have shown to be an emerging market with very strong growth that is supported by the sales of high-end food, wine as well as the significant increase in the luxury cruise industry. Solidifying the growth, Europe continues to support the luxury personal good market as consumers in the European nation continue to demand luxury goods. There is a very positive economic outlook for the European market and this accompanied by high worth individuals that live and visit Europe drive the demand. The UK is forecasted to grow significantly in 2018 along with the other four top markets being Italy, France, Germany and Russia. The luxury industry has a rich heritage so change is a difficult area to address. Luxury brands have recognized they must market and sell online in order to reach the current consumer, however the role of the store is also being altered to create a new and engaging experience. Winning brands are tailoring their strategies to specific categories and creating an ecosystem where every
interaction with the customer has an impact in telling the brand story. Currently, the three fastest growing categories this year are shoes, jewelry and handbags, although apparel, beauty and watches still account for the bulk of the market. The main growth of the luxury market is a generational shift with 85% of the luxury growth in 2017 fueled by generation Y and generation Z. The future of the luxury market currently shows a positive rate of growth with an estimated 4 to 5% of annual growth for the next three years. It is estimated that the market for personal luxury goods will reach 295-305 billion by 2020. Statistics show that nearly â…” of luxury brands experienced growth in 2017 which is up from 50% in 2016. Specific to Burberry, the growth has secured the brand to be one of the most valuable luxury brands world wide with over two billion GBP in annual revenue worldwide. Burberry generates a large portion of their revenue through the sale of accessories and they currently operate a total of 255 concessions and 46 franchise stores worldwide.
SIZE OF THE MARKET The overall luxury market showed a healthy growth in 2017 reaching a high of 262 billion Euros in 2017 after a year of stagnation in 2016. The year of growth can be partially attributed to the robust consumption, strong tourist purchases, as well as a healthy boost by a return of Chinese buying luxury goods in China as well as abroad (Bain & Co). The retail channel specifically grew 8% in 2017. Breaking down the retail growth, 3% of that growth can be tightly tied to new store locations while the other 5% came from like-for-like sales growth (Bain & Co). Analyzing the opposite site of luxury distribution, online sales continued grow and grew by another 24% from 2016. The US market makes up almost half of those online sales equalling 23 billion Euros in total (Bain & Co). Accessories remain the top category of luxury goods sold online throughout 2017 (Bain & Co). Looking specifically at Burberry, the brand holds 3% of the luxury goods industry in India and China with a wide geographical presence in other areas as well. By comparison, LVMH, multinational luxury goods conglomerate, held 9% of the US market in 2014, and 14% in China.
GROWTH POTENTIAL & OPPORTUNITIES Burberry increased and maintained each of their markets and predict to see the strongest growth in value between 2015-2020. Much of this predicted growth is driven by the recovering consumer demands in developed markets in the US and UK as well as the rise in middle class incomes in markets like China and India. In 2014, Asia Pacific generated 44% of Burberry’s value sales. Two factors leading to the company’s core opportunity to move forward are the scale of the regional consumer base as well as its forecast dynamism. China being a key market for Burberry as well as Asia Pacific will continue to be a strategic development for the company despite the anti-corruption measures against gift-giving that are affecting sales. North America accounting for 26% of 2014 sales, is the second largest regional market and is seeing increasing mainstream demand for luxury brands that are driven by high-visibility celebrity use and recovery in income levels. Other areas of opportunity for the brand include Latin America, the Middle East, and Africa. All of these regions offer potential as Burberry is relatively unknown in some of the smaller parts of these regions. Luxury goods in the Middle East are becoming increasingly popular, so this area in particular offers a great opportunity for expansion in big cities such as Dubai and Abu Dhabi. The brand currently has 9 retail locations spanning the region however, there is further opportunity to expand as the brand gains awareness in the region. To celebrate their growth opportunity in the Middle East, Burberry launched a regionspecific campaign in Fall of 2015 titled Art of the Trench. They shot 37 recognizable women from the regions from all different sectors of life as well as different parts of the region and allowed them to style the classic trench as they wish.
Art of the Trench Campaign Photo
COMPETITIVE LANDSCAPE The luxury fashion and lifestyle markets today are more competitive than they’ve ever been. With rapid urbanization and industrialization across the globe, the amount of disposable income a luxury consumer has has risen. While we have also seen a large part of the middle class citizens in BRICS countries slowly move out of middle class into the upper class leading to an increased spending on luxury brands (Business Wire). The market for luxury goods has become increasingly competitive as more and more countries modernize and their citizens start to demand it. Regions such as the Middle East and China have become huge opportunities for the luxury markets as their citizens are becoming a larger and larger portion of their sales (Business Wire). The competitive landscape for the market industry has seen a large shift. While most luxury companies previously targeted customers in North America and Europe, today Chinese luxury consumers spend more on luxury goods then North America and Western Europe alone (Business Wire). Large luxury conglomerates such as LVMH lead the luxury goods category. While Burberry is a large player in the luxury industry, today the competitive market is becoming increasingly concentrated as 34% global values in were generated by 10 players in 2014 (Euromonitor). While the luxury goods business getting increasingly competitive, outperformed the market in 2009-2014, the geographic location and the product narrowness may become a problem further down the road as they start to compete with some large players (Euromonitor). Today, Burberry pursues a single brand strategy. While this may make it harder to compete with large luxury conglomerates that are made up of many brands, it allows Burberry to focus only on their brand exclusively. In comparison with the largest other luxury brands, Burberry ranks 10th, just below Prada (Euromonitor).
This graph shows where Burberry lies in comparison to some of their biggest competitors by comparing value share.
CORE COMPETENCIES Burberry’s core competencies, elements combined which allows the brand to compete without being intimidated, include heritage, branding, craftsmanship, and resources. The company’s unique British foundation dates back to 1856, and its extensive, quality-ensured, techniques have had the chance to be refined over time. The English culture is highly recognizable by society, and Burberry uses this as a branding advantage. Since the beginning, Burberry has been able to combine its resources and unmatched craftsmanship to create innovations that appeal to their consumers. The delivery of authentic and distinctive products align with the ethnocentric brand’s image and heritage, allowing Burberry to compete in the designer fashion industry today.
Burberry is well respected for its distinctive British identity and its distinguished weatherproof fabric contributions. The brand has made a mark on the industry by mixing its traditional English style with a contemporary aesthetic. By the year 2050, the brand will have sustained 194 years, nearly two centuries, of business. Its reign of creative expertise will continue to influence the market.
IDENTIFIABLE PRODUCTS
HERITAGE
KEY SUCCESS FACTORS
Burberry offers accessories, womenswear, menswear, childrenswear, and beauty. Burberry’s identifiable products are one of a kind, and they further ignite the flame of storytelling associated with the brand’s heritage. In fact, Burberry products are so recognizable that the brand has encountered various counterfeit issues regarding the checked pattern. However, the brand has made changes to logo and monogram, which was inspired by Burberry’s archive, to re-energize the brand. (Burberry Rebrands). The most identifiable product is, arguably, the trench coat, which also has been updated with the brand’s modern techniques.
CRAFTSMANSHIP
QUALITY
Burberry’s products have been granted royal warrantsfor tailoring, outfitting, and weatherproofing-which positively re-enforces its quality. The materials and techniques used are of a high standard to achieve product sustainability. Burberry’s current responsibility goals aim to pioneer “creative research to develop tomorrow’s materials” and “drive demand for sustainable raw materials” (Founded 1856).
To reach Burberry’s standard of quality, the company’s artisans and their work must be defined. For example, the brand’s recognizable cashmere check scarves are created in a 200-yearold mill in Elgin, Scotland. Every scarf is passed through 30 production processes, 18 artisans, and finished with a wash in the River Lossie’s spring water (The Heritage). The creation process of the iconic trench is also extensive and requires 127 processes. Burberry creates its gabardine in its textile mill located near Keighley, England, where long, fine cotton fibers are selected and spun. In fact, tailoring specialists have to go through a year-long workshop to learn the stitching process for the collar which has a fluid curve and 180 stitches (Burberry United States). Burberry’s craftsmanship has uniqueness woven into its technique and is influenced by knowledge, purpose, timelessness.
TARGET MARKET
DEMOGRAPHICS Gender Men and Women are the target demographic groups. In the 2017 strategic report, Men and Women only had a 161 M difference between sales in the two genders, and Burberry aims to equally appeal to both. Age Consumers between the ages of 22-37 years old. This group of consumers, considered Millennials will make up the majority of the luxury fashion market sales in coming years. Income The ideal customer would be considered middle upper class to upper class and would have an income range of $100,000-$350,000 or greater. Education The education of this group would have a minimum of a college education, with some pursuing and already completing graduate degrees and doctorates.
LIFESTYLE & PSYCHOGRAPHICS Geography The consumer lives mostly in Asia Pacific, accounting for $1,018 M of Burberry’s annual revenue; followed by consumers living in Europe, Middle East and Africa coming in at $938M and followed by the American consumers at $611M of Burberry’s annual revenue. Work and Leisure activities • Customers in professional jobs that require a “business” wardrobe. • Works in finance, marketing or entrepreneurship • The customer is up to date on current events and trends in fashion. • This customer enjoys art, music and is heavily engaged in social media. • Interested in new culinary experiences • Enjoys traveling and experiencing new places
OPINIONS & BELIEFS • This customer follows the trends, and is heavily influenced by others opinions about what is considered “cool” • Others opinions affect what they decide to purchase • Believes in brand loyalty and uses clothing to define their personality • This customer believes that sustainability, personalization and creativity is key to their lives.
BURBERRY 2050 PRODUCTS & VALUE PROPOSITION
GOALS & OBJECTIVES The Burberry 2050 marketing strategy will comprise of 3 main goals with specific objectives under each goal. These specific goals and ideas were all written with the intent to continue to grow Burberry’s overall brand awareness and brand loyalty in the year 2050. 1. Customization Goal: By 2050 Burberry aims to have cutting edge technology integrated into their retail storefronts to offer customized pieces for customers. Objectives: • Incorporate 3D printers that can print customized trench coats in-store • Create customized Burberry plaids in-store for customers • Incorporate augmented reality to take precise measurements of the customer to create customized in-store printed trench coats
GOALS & OBJECTIVES 2. Fabrics Goal: In 2050 Burberry will incorporate technology forward and innovative fabrics into their key pieces. Objectives: • Incorporate bacteria resistant fabrics into outerwear • Incorporate UPF 50+ fabrics into dresses, outerwear, and swimwear 3. Technology Goal: In 2050 Burberry aims to create a better in-store experience for customers by incorporating the latest technology as well as incorporating cutting-edge technology into their products. Objectives: • Intertwine the RFID technology within Burberry’s handbags and wallets • Introduce augmented reality in Burberry’s retail locations to take customized measurements of customers to provide them with perfectly fitted garments
BURBERRY 2050
C U S TO M I Z AT I O N Fast-forward 32 years and step into a Burberry storefront. 3D printers will be printing customized trench coats made specifically to fit the customer with customized plaid, all there, in the store.
would the 3D printing method allow pieces of clothing to be printed in your exact size with customized elements such as color, but it would also cut down on the amount of waste produced per garment.
The Manus x Machina Met exhibit from Spring 2016 proves that this vision could quickly become a reality for the fashion industry in the span of the next few decades. Andrew Bolton, the exhibit’s curator, reported that the use of 3D printing for apparel manufacturing “could be as revolutionary as the sewing machine.” Not only
Burberry’s use of 3D printing in the store will give their customer a new kind of retail technological experience that is on the cutting edge of technology. Printing Burberry’s iconic trench coats in stores will give the customer a way to make specifications to their coat and have it made precisely to their measurements.
BURBERRY 2050
FABRICS Stepping out into a technology forward 2050 in your iconic plaid-lined, tan, Burberry trench coat, you will be able to expect a lot more than just warmth from this garment. Burberry’s outerwear will live up to your 2050 needs by using new kinds of technology to use produce fabrics that are bacteria resistant and UPF 50+ protected. Bacteria resistant fabrics will be used in all of Burberry’s outerwear by the year 2050 and will lessen the chance of sickness or infection for the Burberry customer. Ideal for travelers, this fabric will be entirely sterile using scientifically tested enzymes that adhere antimicrobial
particles into textiles helping eliminate infectious bacteria. This antibacterial fabric has the capability of killing E.Coli and other infectious bacteria within 10 minutes of contact with the fabric. The use of Ultraviolet Protection Factor (UPF) 50+ fabric will also be incorporated by the year 2050 into Burberry’s dresses, outerwear, and swimwear. A colorless dye will be finely woven into the material and will be integrated into the manufacturing process to help protect the customer from the sun’s harmful rays and give the customer greater UV exposure control.
BURBERRY 2050
TECHNOLOGY Staying on the cutting edge of innovation and incorporating the newest technologies seamlessly into Burberry’s products and storefronts will be the norm for Burberry 2050. Burberry will integrate Radio Frequency Identification (RFID) technology into all of their handbags and wallets to offer protection against RFID skimming. RFID technology is a short-distance electromagnetic method that uses electromagnetic fields to insulate wallets and bags from electronic pickpocketing.
Just as many other retail stores navigate integrating augmented reality into their businesses, Burberry will be in the first wave of luxury brands to incorporate AR into their storefronts. Burberry plans to initially use AR in correlation with their 3D printer to use the technology to scan and provide exact measurements of their customers to their 3D printers to create custom pieces. Portions of AR will also be used in mirrors to provide customers with an easier fitting session.
S T R AT E G Y OVERVIEW
Burberry in 2050 will continue to be the British luxury brand that consumers know and love today, however they continue to dominate the market by intertwining their almost 200 year history with modern technology. In order to stay competitive and retain their position in the market, Burberry will execute their key goals and objectives to continue to build their brand awareness and brand loyalty with consumers. These goals and objectives will help the brand strike a balance between staying true to their heritage while incorporating modern elements to keep it relevant within the market and in the consumer’s eyes.
In 2050, Burberry’s consumer has evolved and the brand will now be targeting generation Z and some millennials. With this in mind, it’s important the strategy for Burberry 2050 will cater to these customers. With a generation who has never known a world without a small computer in their pockets and on their wrist at all times, this strategy will cater to that and fulfill their specific needs. While Burberry in 2050 will still focus on craftsmanship, quality, and their overall experience this strategy will help Burberry continue to grow and stay competitive in the luxury market.
UNIQUE SELLING PROPOSITION Burberry’s Unique Selling Propositions for 2050, regarding the whole brand, is their focus on Technology and their British roots both of which will be shown through their iconic products such as their trench coats and plaid fabric. Technology and Burberry will be intertwined, the brand will continue to master the omni-channel approach needed to sustain a luxury brand, and they will continue to stay ahead of the competition by continuing to cater to the customer’s needs. Secondly, Burberry will continue to focus on their iconic trench and usage of their signature tartan plaid fabric as USP’s for the brand. Burberry is noted for their signature plaid print and trench coat that has graced the shoulders of everyone from queens to entrepreneurs. It is a staple in men and women’s closets alike that Burberry plans to continue to evolve and improve through technology.
BRAND POSITIONING Over the last 161 years, Burberry has evolved from equipping explorers more than a century ago to becoming one of the world’s most valuable global luxury brands that has a distinctive British perspective.
To appeal to the changing consumer in 2050 Burberry will have a sharper brand positioning that is built on their strong foundation (of heritage, excellence, and craftsmanship). The company will continue to establish Burberry has experienced strong their position firmly in luxury category growth by expanding its retail and deliver sustainable long-term footprint, building leadership in their value products. digital department, and by developing strength across many categories. The six pillars of the Burberry’s current Burberry will continue to do this strategy consist of four revenue in the year 2050 and will continue drivers – product, communication, to cater to luxury consumers who distribution and digital, and two are looking for innovation, curation, enablers – operational excellence and excitement and creativity. “Burberry inspired people. These pillars will still 2050” is a re-energized version of their be the foundation of Burberry 2050 original brand paired with modern and the new branding position will technology and products that offer build onto these original pillars. what the consumer of 2050 needs.
In 2050, the Burberry brand will be fully re-energized with innovative technologies incorporated into clothing, handbags and accessories. Durable and lasting materials, time-proof, weatherproof, bacteria proof, sun proof, timelessness, relevant modernity and classical elegance are all symbols of the Burberry product. Technological aspects will not delocalize and remain in Britain as well as production, research, and development. Customers will have the opportunity to directly see the manufacturing processes in select retail boutiques. Main product categories will remain the same and Burberry will continue to heavily focus on their heritage products such as their trenchcoats.
PRICING
PRODUCT
MIX OF LUXURY INGREDIENTS
Burberry is about timelessness, quality and durability. When a customer selects Burberry it is an investment for life. With this in mind, Burberry in 2050 will have an equal or higher price point depending on the economy as well as availability of resources, and also to maintain an above luxury level. To upkeep the new technological research as well as innovations, there will be a margin dedicated to this area. Prices will reflect the relevant work and time invested in each product and will be matched accordingly. Naturally, the price will follow Jean-Noel Kapferer’s anti-law of the luxury markets continuous rise in pricing, as well as higher value the deeper root in history as more time goes by.
PLACEMENT
In 2050, Burberry will have a new luxury strategy that will increase brand exclusivity by closing accessible retail stores and elevating the look and prestige of the selected poly sensual boutiques where customization and personalization will be available. The selected stores expand on the current status of technology and will have distinct functions where customers can visually see the unique manufacturing processes of digital printing and digital augmentation, bringing an experience highly like no other. E-commerce will remain accessible due to the demands of evolving consumer behavior of Generation Z, as well as millenials.
Burberry uses the pull strategy to motivate its consumers through the use of communication and the management of customer relationships. In 2050, Burberry’s communication strategy will be influenced by products and will embody the new energy established to positively impact customer perception. The brand will aim to further enhance its customer service through the use of consumer insights and refurbish its retail stores with integrations of technological advancements.
PEOPLE
PROMOTION
MIX OF LUXURY INGREDIENTS From Burberry’s view, Burberry will remain a brand that values itself on heritage and innovation. We will continue to inject new ways to recreate our iconic pieces and ways to reimagine our brand year after year. We will continue after Ricardo Tisci, the current chief designer, to push the boundaries of society and remain conscience of social issues, while voicing our opinions through the fabrics and threads of our clothing. From Burberry customer’s perspective, Burberry clothing will remain one of the quintessential brands in a forward thinking, entrepreneur’s closet. Burberry will continue to give the experience of innovation, creativity, and a luxury bespoke quality to our clothing. In the year 2050, Burberry will remain at the forefront of innovation through our technological advances and will remain a leader in omni-channel retailing and customer service.
PURPOSE
In 2050, Burberry will embody both, uniqueness and excellence. Every revolutionary innovation and reimaginedarchive inspired design acts as evidence that uniqueness deeply intertwines with the roots of the company. Burberry’s extensive experimentations with new resources and combinations will result in the development of authentic content, products, and creations for its customers. Excellence will be displayed through the production of highquality, sustainable products composed of the best fabrics, materials, finishes, techniques, and technology. The purpose of excellence will inspire the creation of the “best in class, desirable collections” (Business).
WORKS CITED
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WORKS CITED
Çıkın, Zeynep. “Kapferer Brand Identity Prism.” LinkedIn SlideShare, 10 Mar. 2014, www. slideshare.net/Zeynepkn/kapferer-brand-identity-prism. “#1: Brand Identity.” On Burberry..., 18 Oct. 2011, brandburberry.wordpress.com/assignment1-brand-identity/. “Bacteria-Resistant Hospital Fabrics That Actively Fight Microbes.” SciTechDaily, 15 Nov. 2012, scitechdaily.com/bacteria-resistant-hospital-sheets-that-actively-fight-microbes/. Baird, Nikki. “The Measurement Gap: Augmented Reality In Retail.” Forbes, Forbes Magazine, 19 Mar. 2018, www.forbes.com/sites/nikkibaird/2018/03/19/the-measurement-gapaugmented-reality-in-retail/. Blackboard Learn, elearning.scad.edu/webapps/scad-contentserver-BBLEARN/ CourseWorkLink.jsp?course_id=_69787_1&mode=view. Burberry Annual Report. Burberry Annual Report, www.burberryplc.com/content/dam/ burberry/corporate/Investors/Results_Reports/2018/Burberry_AnnualReport_FY17-18.pdf. “Business.” History - Burberry, www.burberryplc.com/en/company/business.html. “Burberry Ltd. - Company Profile, Information, Business Description, History, Background Information on Burberry Ltd.” Reference for Business, www.referenceforbusiness.com/ history2/22/Burberry-Ltd.html. Lavars, Nick. “New Antibacterial Fabric Kills Infectious Bacteria within 10 Minutes.” New Atlas - New Technology & Science News, New Atlas, 6 May 2014, newatlas.com/antibacterial-fabricinfectious-bacteria-10-minutes/31922/. “Press Release.” History - Burberry, www.burberryplc.com/en/news-and-media/pressreleases/financial/2017/burberry-to-establish-position-firmly-in-luxury-and-deliver-sust.html. Ritson, Mark, et al. “Mark Ritson: Burberry’s Luxury Repositioning Won’t Work, It’s Not in the Brand DNA.” Marketing Week, 15 Nov. 2017, www.marketingweek.com/2017/11/15/markritson-burberry-repositioning/. “Soon You May Be Able to 3D Print Clothing in Your Own Home.” NBCNews.com, NBCUniversal News Group, www.nbcnews.com/mach/science/soon-you-may-be-able-3dprint-clothing-your-own-ncna848646. Tarmy, James. “The Future of Fashion Is 3D Printing Clothes at Home.” Bloomberg.com, Bloomberg, 15 Apr. 2016, www.bloomberg.com/news/articles/2016-04-15/3d-printing-ispoised-to-bring-haute-couture-into-the-home. “UPF Fabric vs. Ordinary Fabric.” Luminora, 3 Oct. 2017, www.luminora.com/upf-fabric-vsordinary-fabric/.
GROUP CONTRIBUTIONS NA’KAYLA REFLECTION This course has been eye-opening in various ways. First and foremost, I believe that this online course has prepared us for free-lance opportunities in the future. I’ve learned how to communicate effectively with my mobile team. I enjoyed learning about the history of Burberry and the brand’s strategy. I’m happy that we selected a brand that is changing because it gave us the opportunity to view the assignment from a different angle. I appreciate all of the constructive criticism provided by our professor and classmates. CONTRIBUTIONS I have attended each group meeting and have provided constructive feedback based on course materials. I have also given my opinion on specific aspects of our work, submitted assigned portions on time, and helped grammatically edit each of our submissions.
CRYSTAL REFLECTION Some things I have learned from this course are the diverse concepts of luxury as well as meta-luxury, and a deep intellectual encounter with the luxury brand Burberry. This experience was not only beneficial in understanding the brand Burberry, but will act as a model to analyze other luxury brands and their marketing strategies. Along with academical research, I have learned the essential processes in working together as a collaboration with my other team members, and successfully executing project deadlines, remotely. During this process, our team members have used various ways to communicate, and relied on each other’s efforts to achieve our results. I am pleased that to had the opportunity to work with talented scholars. CONTRIBUTIONS Some of my contributions include attending group meetings and submitting assigned portions. Furthermore, I have provided images as well as watercolor sketches as visuals for our process book, as well as worked on the editing of presentation for the final video, as well as narratives.
SHANNON REFLECTION Throughout 730 I have thoroughly enjoyed getting the opportunity of learning and exploring so much about one brand, in our case, Burberry. It was exciting to get to know the brand so well and then based off of our research, come up with new ideas and brainstorm how they could improve in the year 2050. I enjoyed getting to be creative with some of the ideas that we felt like could be incorporated into a luxury brand in 2050. I also learned how to work with a team remotely and how to keep constant communication between the four of us to ensure our best work. Outside of our course project I felt like some of the discussion posts allowed me to think about luxury marketing in a new ways. CONTRIBUTIONS The final course project was a group effort that required frequent communication and delegation. I contributed my part of the writing and also attended all group meetings. I also put all the final documents together and designed all of our presentations. Our Google drive with multiple folders was separated by part and helped us stay organized throughout the whole process. It also ensured that we didn’t loose anything and helped us to write this project as a group rather than 4 individuals.
MALIA REFLECTION In this course, I have learned how effective marketing and branding is essential for the success of luxury brands and the impact meta-luxury on our daily lives. This course has done a great job in preparing students for understanding the intricacies of the business world and fashion. I believe through choosing to focus on Burberry, I have learned how to effectively re-brand a company, that has been around for over a century, and how formulating a good strategy will help a company in many years to come. Additionally, I have learned how to communicate within a group of people with differing ideas and different time zones. It takes the dedication of all members, the drive of perfection, and the listening and understanding of everyone to execute something great. CONTRIBUTIONS Throughout the LXFM 730 course, I have provided my assigned portions of the project to my group and attending group meetings. I have helped edit the various presentation’s grammar, provided my feedback, and images for the submissions.