Burberry Market Location and Competitor Analysis


Burberry Market Placement and Competitor Analysis

Keywords: burberry competitor evaluation, burberry market analysis

Ans: Burberry’s target client is someone who wants high end while being practical. The brand’s point of difference with different luxury makes is that they may be luxury, aspirational, and practical. Burberry decided these were going to reach these consumers from Bravo identifying their specific niche market between labels of Polo Ralph Lauren and Giorgio Armani on the clothes side, and between Trainer and Gucci on the components end. The Burberry team priced the merchandise between these price items to reach consumers. Burberry wanted to create the picture of accessible luxury.

The characteristics of market are assessed through several models such as analysis of Porter’s five forces of rivals’ analysis. Right here, we view Burberry’s market positioning through its competitors analysis. Burberry’s goods include ‘continuity products’ which have a product life cycle of a couple of years, and ‘fashion products’ which are designed to respond to a fashion trend. Accordingly, the market positioning of the Burberry is exclusive and varies as it targets trendy in addition to classic buyers. Burberry targets all its clients through a common theme of ‘functional high class’. Burberry’s main rivals include Trainer, Armani, Gucci, and Polo, which are among top fashion brands in UK and globally. Mentor and Gucci, both will be more focused towards fashion accessories while Polo and Armani are more centered towards apparels; although all own a range of goods in both clothes and accessory categories.

Burberry features positioned its manufacturer in the thoughts of customers to be “functional extravagance.” Burberry maintains a product line with great width and depth comprising many products. Their products fall into one of two main categories: manner or continuity. Fashion items are made to be responsive to fashion trends and are released on a collection-by-collection basis. Continuity products have lifestyle cycles that are anticipated to last for a number of years. Burberry also has three primary selections: women’s put on, menswear, and add-ons. With so many different products offered in various collection and the fashion vs. continuity of Burberry products the product mix is quite great. This contributes to the positioning of the Burberry manufacturer. Burberry possesses received awards for the Modern day Design Collection of the Year and the Classic Style Collection of the entire year. This illustrates how various the Burberry brand is

Therefore, the market positioning for Burberry varies. Burberry can appeal to the hip 25-year-old gentleman or the conservative 65 year old man. However, many Burberry advertisings feature younger models. New Burberry advertising have featured from a British scenery with aristocratic looking designs to edger advertising with versions in bikinis. Taking all this into account, Burberry is usually targeted towards various different segments of the populace with one common motif, functional luxury.

Burberry has many opponents that include: Coach, Polo, Armani, and Gucci. In accordance with that of Burberry’s competitors, they possess positioned themselves perfectly in the thoughts of consumers. Coach major positioning is on shopping bags. While Coach as well carries other equipment that range from watches and boots and shoes to scarves and pup collars, Coach remains generally in the accessory end of vogue. Coach was also not even a player in the very best 10 luxury merchandise players. However, Coach placed 6% of the accessories share and in a price comparison was more on the reduced end of cost for accessories. This will not however reflect Coach’s advertising positioning. Coach is just simply less expensive and more accessible to the general population.

Polo’s marketing positioning is centered even more towards apparel. While Polo was lots two player in the most notable luxury makes they captured the virtually all market share for outfits, however, more affordable than Burberry. The Polo brand has great brand collateral annotated bibliogrpahy and is very more developed in the thoughts of consumers. Armani, another competitor or Burberry, put 8th in the top 10 global luxury merchandise. While Armani really only targets apparel the brand still maintains a solid luxury position available in the market. Gucci also located in the most notable 10 global luxury things. Gucci’s marketing location is towards luxury components. They captured 12% of the accessory market talk about and were the best priced brand for components.

Overall, Burberry’s competitive positioning is suitable over the future. While brand like Mentor and Gucci focus extra on gadgets and Armani and Polo target extra on the apparel marketplace, Burberry possesses succeeded in penetrating both accessory and apparel marketplace while remaining an extravagance good. Burberry in addition has succeeded can be positing itself between makes such as Polo Ralph Lauren and Armani in apparel, and between Coach and Gucci in components. Burberry also offers many several lines within the Burberry company. This allows for more high-end goods and goods that would be simple for purchase by the overall inhabitants. Burberry’s positioning of useful luxury is incredibly competitive and will sustain over the long-term.

Q2. Is certainly Burberry’s competitive position sustainable over a long term? Why?

Ans: Burberry, initially Burberry’s was popular between the British Royalty during the 1900’s because of its original designs and uncompromising quality. Thereby, the brand increasingly became a symbol of both extravagance and durability. However, during the mid-90s, the business started facing several strategic and structural problems. In spite being a successful business the earning quality was low. The brand came to be perceived as stodgy-searching and conservative, and skewed to a old customer-base.

However, reinvention of the manufacturer took place when Rose Marie Bravo came on board as the principle executive, with the essential motive to convert Burberry from a exhausted outwear manufacturer into a luxury lifestyle manufacturer that was inspirational, classy and innovative. The next measures were taken:

  • Recruiting persons, who were skilled and experienced in the field, therefore made a A-list sector talent team.
  • Changing the brand from Burberry’s to Burberry and a modern-day logo and packaging was introduced.
  • Repositioning the company between cutting-edge vogue and classics.
  • Burberry was positioned as a aspirational in addition to functional manufacturer and represented accessible luxury.
  • The products was improved and Burberry came up with three most important segments: Women’s use, Men’s wear and accessories.

Burberry expanded its portfolio in two segment: low priced labels incorporating Thomas Burberry (in Spain and Portugal) and Burberry Blue and Dark labels (in Japan) mainly to appeal younger, even more fashion conscious customers and the high-end label Burberry Prorsum to position itself in high-profile high end market.

Advertisement marketing campaign including Stella tenant, featuring a British aristocrat and style Kate Moss featuring the present day, fashion-oriented side.

The check prints were a fundamental element of Burberry design structure, and accounted almost 25 percent of company’s earnings from check products. It also launched Burberry Brit, a fresh perfume line having a check design bottle.

Thereby, Burberry positioned itself as a manufacturer between lifestyle and style brand. Thus Bravo’s staff brought Burberry from a shattered situation to a popularity stage. Thus, Burberry keeps a competitive edge and positioning available in the market.

This competitive placement for Burberry is definitely sustainable over the long-term due to several

reasons. Not only due to its particular price points, but Burberry’s intensive buyer surveying is also important. Burberry has consistently focused on “remaining true to their core brand values” and heritage to the Burberry brand.

Burberry’s market share in 2001 as rated against the top 100 luxury items players was 5.2%, putting them in 4th place overall. This compares with 14.4% market show for LVMH (1st), 9.1% for Polo Ralph Lauren (2nd), and 4.4% for the Gucci Group (5th).

Armani falls short with a small percentage (3.5%) of the market. Coach is much below these and does not appear at the top 10. If you compare by the kind of luxury good; in add-ons: Gucci reaches 12%, Coach at 6%, Polo at 4%, and Burberry at 4%. And for apparel factors: Polo reaches 9%, Burberry at 3%, Armani at 2%, and Gucci at 1%.

It is clear here these distinctions occur predicated on the depth and width of each company’s product line. Coach sells far more accessories (i.e. natural leather goods) than garments, and Polo sells far more clothing than accessories. Burberry is almost balanced, and sells the same amount of both, on the 2003 annual report Burberry shows nearly even profits from women’s wear (33.3%), menswear (27.4%), and equipment (28.6%).

For this purpose, Burberry’s competitive job is sustainable, because they have a good demand for both components and apparel.

Q3. Bravo’s team happens to be carrying out many initiatives including multiple collections, multiple stations and multiple licenses. What’s the role of every of the initiatives in Burberry’s overall business model?


  • Multiple Brands

Burberry created multiple makes (Prorsum, London, Blue and Dark, Thomas Burberry) to attract certain kind of customers whom these were not targeting initially and also to cater certain features of certain customers. This idea supports Bravo’s goal to achieve new customers along with retaining good old customers For instance, Burberry London was provided as a lower-costed label made to “appeal to a younger, more fashion-conscious customer.” Blue and Black is sold in Japan, for younger persons, and is a foreign product that diversifies the merchandise risk. Burberry’s Prorsum products was introduced to safeguarded their positioning in the specific niche market and luxury marketplace. It shows consumers that Burberry competes with the most recent fashions, and represents the best end of luxury products. Prorsum was used to show the Burberry company as luxurious and relating to Bravo, the Prorsum introduction was made to “tell persons that something fresh was happening at Burberry. The theory was to bring in a high-profile, high-end brand, and do it in a first-class approach, by placing it in the best stores on earth. The intended position for Burberry’s collections (Women’s wear, Menswear & Extras) was due to extensive consumer research to also help recruit a more recent consumer. The only way to do this was to update the product line to match the fashion-wishes of current and potential clients, and a way for Burberry to give a consistent look and feel across an array of products. Not merely did they keep creating products which were expected to have a lifespan of a number of years, but they also created different “fashion-oriented goods…designed to be responsive to fashion trends”, thus maintaining their flow with vogue evolutions. Burberry’s continuity goods (classic trench, duffle coats, handbags and scarves) include longer lifestyle cycles than that of its trend oriented products. Care must be used analyzing product life cycles. In conditions of women’s wear, menswear, and extras, each collection enables Burberry to compete with its key competition. A collection of accessories permits Burberry to adequately contend with larger accessory players such as Gucci and Coach.

  • Multiple Channels

Mass exposure was allowed to customers in wholesale and retails. The business had taken more control over its distribution by getting some distributors and severing ties with others. It experienced 3162 wholesale stores, 434 shops, and 2728 specialty retailers.

  • Multiple Licensees

Throughout the 1970s, when Burberry was owned by GUS, the Burberry manufacturer became certified on too wide of a wide range to maintain the true image and ideals of Burberry. With this came general turmoil when the pricing, designing, and top quality of Burberry goods became skewed across numerous markets which then led to the manufacturer having losing a lot of “its exclusivity and the Far East [accounting] for a disproportionate 75% of sales.” Because of this fact, Bravo determined and executed a plan where Burberry would now exercise “control over everything from design to sourcing, making, and distribution.” Eventually, devising this licensing strategy allowed for the elimination of cost, design and quality inconsistencies. Multiple licensees permits Burberry to introduce items in market segments their competition has got better hold of, and still share in some of the profit. These brand-new “collections” and makes serve to help expand Burberry’s new strategy and also to mitigate threat of alienating core customers.

Q4. Has Bravo’s team managed to elevate the overall status of the Burberry company?

Ans: Bravo’s workforce has were able to elevate the overall position of the Burberry company through a total transformation of the manufacturer from being truly a classic aristocratic manufacturer to a complete fashion oriented though being well-verse and sticking to its core brand ideals providing the customers both luxury and toughness, that it is known. The product was positioned as an “affordable luxury” company catering customers of all age groups and from distinct fronts of life.

The team rigorously worked to completely overhaul the how to write a descriptive essay prices, distribution, product, and promotion. Multiple products and brands were created and the business moved in a global direction. Burberry as well saw that by 2002, “gross margins were now 56% weighed against 47% in 2000.” Multiple makes like Burberry Prorsum, Thomas Burberry, Burberry Blue and Black color labels were released to cater every segment on the market place. In terms of distribution, by 2002 Bravo and her workforce had were able to create world-vast distribution of the Burberry product. According to the study, they had “3,162 wholesale doorways worldwide, including 434 department stores and 2,728 specialty stores,” and also more than “132 company-owned stores.”

Lastly, Bravo’s team challenged themselves in finally devising a plan to market the Burberry image. By using a famed advertising workforce, the Burberry advertising campaign executed. The first trip released in 1998 and presented Stella Tenant, a British Aristocrat and finally told a tale that could convey the brand values, custom, and heritage of the Burberry manufacturer. The following winter, in 1999, the team was able to maintain the “value” photograph of Burberry, but also introduced version Kate Moss to their ads to simultaneously convey Burberry’s more “modern, fashion-oriented side.” Inevitably, each challenge remained focused on Bravo’s original goal – to create Burberry a global company, while maintaining the core ideals and heritage of Burberry. Thus, Bravo and her crew brought Burberry at a status of most preferred, durable, luxury and also fashion oriented and available brand for all age category customers, thus redefining an elevated position of Burberry.