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Burberry

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Samantha Cutler

on 6 March 2013

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Transcript of Burberry

Erin Finnegan
Samantha Cutler
Katherine Barrick - Burberry is a 156-year-old company-Long legacy of being known for its gabardine-checked fabric.

Burberry functions through
Retail
Wholesale
Licensing businesses Product Categories The company sells within:
Men’s
Women’s
Children’s apparel
Accessories
Baby’s clothes
Blue jeans
Personal products Culture Burberry's culture functions to closely connect:
- Creative thinking
- Cross-functional cultural collaboration
- Encouragement

The culture is united by:
- Open communication
- Pure brand vision that is inspired by the company’s core values of protection, exploring, and inspiring QUESTION 1 Financial Analysis Burberry is a publicly traded company with 2012 financial results as follows:
-Sales of $2.97 billion
-Net income of $420.94 billion
-Gross profit of $2.08 billion
-For the year of 2012 the company also sustained a 1-year sales growth of 23.26% Retail Driven Financials Constant revenue growth each year since 2009.
- Focus on retail
-Focus on consumer perception
-Retail sales accounting for 68% of total revenues in 2012. Question 2 Licensing Ventures For the years 2011 and 2012 non-apparel retailing was Burberry's largest product division
Accounted for 39% of retail and wholesale revenue

This category also had a 22% increase as compared to previous years.

Non-apparel retailing includes:
Bags
Jewelry
Small accessories
Shoes
Luggage
Beauty products Licensing Agreements Burberry has three global licensing agreements which include:
Fragrance & Beauty: Inter Parfums
Watches: Fossil
Eye wear: Luxottica Inter Parfums Incorporated - Licensing business for over thirty years
- Global marker of perfumes and beauty products

Inter Parfums is responsible for producing and distributing fragrance products under licensing agreements with brand owners Additional Licensors Adapted from Inter Parfum Incorporated Investor Presentation Years of Experience Burberry Success Financial Success Burberry accounts for about 57% of Inter Parfums net sales.
Parfums had net sales of $654.1 million which was up 6.3% compared to 2011. Licensing Expansion July 2010 Burberry Beauty began a 100 SKU collection rollout to 30 major retail location globally

In December 2011, the Inter Parfum and Burberry Group started exploring ways to work closer together to understand the brand’s potential Burberry Fragrances Now Developing a new operating business plan for the Burberry fragrance and beauty business

Burberry's fragrances and beauty are strong product categories of the company with “Burberry Body” Fossil is a global retailer specializing in the design, innovation, and marketing of fashion lifestyle accessory products

Fossil designs, markets, and arranges for the manufacture of watches and accessories on behalf of the licensor Fossil Burberry Watches Now Currently Burberry has made progress towards aligning product and distribution of watches towards to companies luxury positioning Luxottica is a vertically integrated organization that produces and distributes prescription frames and sunglasses of high technical quality
- Distribution
- Retail operations
- Advertising
- Deep understanding of international markets Luxottica Group Additional Licensors Burberry Eye Wear Now Burberry Group has been licensing with Luxottica Group since 2005 with the first eye wear collection launch in October 2006
Currently Burberry has focused on eye wear development and distribution which has allowed for strong sales results with a strong platform for the future Question 3 Burberry designs, sources, and markets globally through a diversified network of retail including:
- Digital
- Wholesale
- Franchise channels
The company also licenses to different third party manufacturers that distribute merchandise using Burberry trademarks Retailing Within Burberry Stores and Sales Over 235 mainline stores and outlets
Over 200 department store concessions worldwide
Over 40 digital commerce outlets

Wholesale includes sales to:
Department stores,
Burberry stores,
Multi-brand specialty accounts
Travel Retail Visual Presentation Retailer Visited Date: Thursday, February 28th 2013
Location: Macy's Herald Square
Picture: Question 4 -Luxury
-Class
-Innovation and Technology
-British heritage through their trench coat
-Democratic luxury positioning -Innovation and technology
-Strong intuition and knowledge of customers
-Was used as practical work wear but now targets younger demographic with exclusivity and product differentiation -Trademark check and Prorsum logo
-Color pallet, both seasonal and classical
-Classic, sharp product
-The perfume bottles, sunglasses and watches all carry their logo, packaging and sleek classic finish
- The perfume bottles and make up are even tattooed with the check Question 5 Brand Positioning Map Licensed Product Positioning Map -Beige, black and gold
-Classic-Licenses products such as sunglasses have cases with the Burberry Check.
-Perfume box is a cardboard box with Burberry Check (variations depending on scent) -Specific merchandising outline used throughout all the stores
-The different collections are separated by look and color
-Some clothing intertwined with accessories, but in general visually separated -Prestige Pricing
-Perfume Ranges from $50-$100
-Bags range from $600-$10,000-Limited discounting within outlet stores -British Celebrity Emma Watson
-Burberry most recently named former BBC executive John Smith the chief operating officer, which was a big shake up in their top management. -Social Media; linkedin, facebook, twitter, foursquare, soundcloud, youtube
-Website and secondary website – artofthetrench.com
-TV
-Magazine
-Joint Promotions
-Sponsorship
-Celebrity Endorsement
-Fashion Shows -Clean and Clear
-Simple to navigate
-Black and grey -Link to watch their most recent fashion show online
-Becoming known for the innovative involvement of clients, buyers and industry professionals
-Ordering of products immediately following the show ““Burberry has been at the forefront of digital technology innovation in the luxury space, live-streaming its men’s and women’s fashions shows; allowing customers to order online immediately following the runway shows; launching an in-house social networking site, Art of the Trench, and seeking to fuse the online and brick-and-mortar shopping experiences” Question 6 “Fruity and Luxurious”
1.1 oz. bottle sells for $55
Rosie Huntington-Whiteley
Inter Parfums Burberry Body Miss Dior “Pure and Elegant”
1 oz. bottle sells for $70
Natalie Portman
Christian Dior Parfums Brand DNA Recent changes in DNA Visual Continuity across the Brand Packaging Store Presentation Price Point Advertising and promotion Increase Sales Increase Online
Conversation Grow in New
and Emerging
Markets Reinforce the
Heritage of the Brand and
Regain Trust Continue to Excel
as a Digital
Leader 5 marketing strategies Media Channels Website Presentation Integration of Technology: Burberry strives to have continuous “disciplined execution, constant evolution, and balance across channels and regions” (“Brand Business Culture).
Full transcript