Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Burberry

No description
by

Kayla Petty

on 2 March 2014

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Burberry

Burberry

Founded in 1856
by
Thomas Burberry
Motto -
Prorsum
Latin for 'forward'
Introduced
iconic waterproof
trench coat
Men's, women's
& children's wear
retailers
Macro-environmental Audit
Political
Socio-cultural
Economical
Technological
Porter's 5 Forces - The Industry
References
Ben-shabat, H., Moriarty, M., Rhim, H. and Salman, F. (2012). Global Retail Expansion: Keeps On Moving. (Online) Available at: http://www.atkearney.com/documents/10192/4799f4e6-b20b-4605-9aa8-3ef451098f8a. (Last accessed: 6 January 2014).

Chan, F, & Chan, H 2010, 'An AHP model for selection of suppliers in the fast changing fashion market', International Journal Of Advanced Manufacturing Technology, 51, 9-12, pp. 1195-1207, Academic Search Complete, EBSCOhost, viewed 7 January 2014.

Cova, B and Cova,V. (2002). the tribalisation of society and its impact on the conduct of marketing. The tribilisation of society. 36 (no. 5/6), 595-620.

Fashion Encyclopedia. (2013). Burberry. (Online) Available at: http://www.fashionencyclopedia.com/Bo-Ch/Burberry.html. Last accessed: 11 December 2013).

Gov.uk. 2013. EU Emissions Trading System (EU ETS). [online] Available at: https://www.gov.uk/government/policies/reducing-the-uk-s-greenhouse-gas-emissions-by-80-by-2050/supporting-pages/eu-emissions-trading-system-eu-ets [Accessed: 18 Dec 2013].

Keynote. 2013. Clothing Retailing Market Report 2013. [online] Available at: http://0-www.keynote.co.uk.emu.londonmet.ac.uk/market-intelligence/view/product/10792/clothing-retailing/chapter/9/current-issues?highlight=clothing%20industry [Accessed: 18 Dec 2013].

Lamb, R. (2010). Countering counterfeits: How luxury brands are challenging the knock-off culture. (Online) Available at: http://www.luxurydaily.com/piracy-and-counterfeit-an-ongoing-battle-for-luxury-brands/. (Last accessed: 6 January 2014).

Mansharamani A and Khanna.S. (2010). marketing of luxury brands. Available: http://ebookbrowsee.net/297-luxury-branding-india-pdf-d39081948. Last accessed 28th december 2013.

MarketLine. (2013). Global Apparel Retailing. (Online) Available at: http://www.academia.edu/4917165/Global_-Apparel_Retail_MarketLine_Industry_Profile_Global_Apparel_Retail_Publication_Date_February_2013. (Last accessed: 5 January 2014).

Moreau, R 2007, 'Retailing in the UK and Ireland', European Retail Digest, 56, pp. 25-28, Business Source Complete, EBSCOhost, viewed 7 January 2014.

Okonkwo, U. (2014). Redefining the Luxury Concept. (Online) Available at: http://www.brandchannel.com/papers_review.asp?sp_id=485. (Last accessed: 6 January 2014).











Recommendations
&
Strategy
Agenda
Introduction - Agenda
The company - Burberry
The external environment - PESTLE
The industry - Porter's 5 Forces
The consumers - Neo-tribal marketing
Recommendations
References

Fashion Encyclopedia, 2013
Competitive Rivalry
Evolving
Threat of New Entrants
Strong
Chinese and Indian retailers are making headway fast - increases the industries attractiveness

Possibility of others making similar designs but cutting the price by half

Appearance of luxury brands - affected the high entry barrier that the industry guarded for centuries - given luxury consumers more choice
Buyer Power
Low > Moderate
Strive for a relationship of ‘mutual independence’

Further weakened by their lack of diversity, which makes the apparel retail industry highly important to their business

Being flexible and adaptive is a key to survival
Supplier Power
Threat of Substitution
Weak
Need for individual and group identity makes luxury clothing essential to consumers

Counterfeit clothing can also be a significant threat to revenues and tarnished brand equity

Lots of choice available for consumers - competition increases greatly

Consumers unconsciously formed pedestal for fashion brands to stand with luxury brands
(Porter, 1984)
the profitability of the industry drives the profitability of the firm
Legal
Environmental
Positive Sales Growth
E-commerce markets allow consumers to buy online via mobile and web applications
Poor Economic Climate
UK has failed to stabalise its economy since the recent recession
Discourages consumer spending on non-essential items, such as clothing
Ethical Clothing
Increase in purchase of ethical and second-hand clothing
Innovation, digital e-commerce and advertising
Consumer Trends
Consumer values and tastes - society & culture
Consumer need for clothing
Fast Fashion Phenomenon
Rise in costs from international suppliers
Keynote, 2013
The Copyright Designs and Patents Act 1988
The Forecast Total UK Market for Clothing Retailing by Sector by Value at Current Prices (£m at rsp), 2013-2017
rsp - retail selling prices
The law protects against design infringement and unauthorized distribution of products or ideas
Counterfeit copies are a constant threat
(Government Legislation Website, 2012)
Emission Trading System (ETS)
Environmental legislation that aids government to keep clothing industry under control
Greenhouse gas emission allowances
GLOBAL & UK
MARKET
AS A WHOLE
UK
CLOTHING INDUSTRY
Charity shops are more attractive from a financial standpoint
Consumers are more conscious of the environmental aspects of 'throw-away fashion' and waste
Teenagers have more independence when it comes to purchase power
Social Media
Blogging
Video Advertising
YouTube - Live Streaming catwalks
Changing Fashion Trends
Changing fashion trends will continue to influence sales in the clothing industry
Target Men as an
Audience
This will help sales of menswear
Allows the company to have more choice when sourcing products
Burberry would benefit from employing local manufacturers in the UK.
Especially since the recent price rise in international suppliers
Government Policy
Legal changes
Taxation Policy
Import and Export duties
Foreign Trade Regulation
Licensing and Certification
Social Welfare Policies
Following guidelines and policies
NEO-TRIBALISM
Luxury Neo-Tribalism
The strongest brand tribes are the style groups with high levels of involvements and loyalty.

The brands inside the circle all are defined by a recognizable signature style and high media and branding profiles.


Brand Tribes
Burberry brand is associated with:
Sophistication e.g trenchcoat,
British heritage
Prestige status
(Oxford University Press,2007)
(Government Legislation Website, 2012)
(The Fair-Trade Foundation, 2011)
(Maltzahn, 2013)
(Ben-shabat, H. et al, 2011)
(Okonkwo, 2014)
(Lamb, 2010)
(Okonkwow, 2014)

Many luxury consumers are part of an affluent,
global élite that is increasingly educated and concerned with social and environmental issues.
These consumers use luxury products as a symbol of success (Mansharamani et al, 2010).

SRI Consulting Business Intelligence places luxury consumers in three groups:
3. Luxury is a reward
2. Luxury is indulgence
1.Luxury is functional
(Mansharamani A and Khanna.S, 2010)
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Well Developed Industry
Innovation & Technology
'Made in Britan' remains potent, internationally
UK known for 'high quality, luxury'
High dependency on far east manufacturers
Rising costs of raw materials such as cotton
Economic downturn, effecting survivability
Acquisition of closed companies
Continuous development of internet retailing- online market expanding
'Made in Britain' (unique selling point) - demand for high quality luxury remains high
(Moreau, 2007)
Counterfeit goods
Consumer spending withdrawal- economic crisis
Far east manufacturer remains cheaper, taking business from the UK
Competition from cheaper clothing industries
Ageing population- decrease in younger consumers with disposable income
(MarketLine, 2013)
(Keynote Report, 2011; Ethical Footprint,2010)
(Chan & Chan, 2010)
(Alkayat, Y., 13th March 2012, 'The Ecologist')
(Keynote Report, 2011; Supply Chain Management, 2000)
Burberry should continue to encourage current trends, releasing more items at a fast pace, ensuring there are always new products available for consumers to purchase.
This could eventually encourage the men’s clothing industry to keep up with the fast pace evident in the womenswear market
Younger male consumers will start to regard following trends as the norm
Burberry should focus on menswear trends
Minimum Wage - Amended in Oct 2010
Low > Moderate

Substitution creates a great choice for customers

Economic downfall and inflation causes Customers have less disposable income to spend on goods.

No switching costs are required and there is a demographic and psychological significance on retail therefore bargaining power of buyers is weak. (Keynote, 2012)

UK retailers face yet another year of tough trading as the economy continues to suffer from the
strains of the recession and global downturns.

Keynote (2013) identifies a high level of unemployment in the UK meaning there are far fewer consumers
currently purchasing ‘work clothes’,
(Keynote, 2012)



As there are numerous amounts of luxury brands
this creates an intense competitive rivalry.

From major labels - eg. Giorgio Armani, Gucci,
Prada and many others.

Economies of scale available to existing firms lower unit costs making it difficult for smaller new comers to break into the market and compete effectively.

New channels, such as the Internet, are providing consumers with more convenient alternatives to shopping in stores.


(Keynote, 2012)



- Older and wealthier consumers
- For superior functionality and quality
-Pre purchase research, logic more than impulsive/emotional.
- Younger consumers who use luxury goods as a status symbol
-Desire to be successful and demonstrate this to others
-Younger consumers,
mainly male
- lavish themselves in
self indulgence
Full transcript