Burberry Analysis

Strategic Marketing: Burberry case study

CHAPITRE 2 DU KOTLER

Question 1: When you look at the value chain, which steps were problematic before 1997?

Activités de base

* Inbound logistics : /

* Manufacturing : licensing of the brand in Japan (Mitsui and Sanyo) -> limited control (variation of the product quality)

* Outbound logistics: growth worldwide through additional licensing and distribution agreements -> parallel trading (wholesales sold to unauthorized distributors: they sold products at price, channels and locations without respect to the brand image) + outdated design in stock (problem in outbound logistic, too much old-fashioned pieces in stock)

* Marketing and sales: problem in distribution => inconsistent environment with its quality position

* Brand image image Columbo/viellie à cause du changement de cible

* Target (males and Asian tourists) problem de ciblage

* Quality standards

* Margin = low (low earning quality)

* Problème de contrefaçon important

* Service: service non adapté au standing de la marque dans la plupart des points de vente/ qualité variable des produits à cause des licences

Activités de soutien

* Firm infrastructure : /

* HRM: lack of skills in management team: not enough experienced with retail stores and clothes industry.

* R&D: no innovation -> repositioning the brand -> check management / classic luxury - contemporary

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Question 2: Which growth opportunities were detected by BRAVO?

!! voir réponse Loic Peters & Thomas Pire !!

1) Intensive growth:

- PRORSUM : product development, idea = introduction of a high-profile, high-end brand in a first-class way.

* Thomas Burberry, Burberry Blue And Black: lower price label to appeal younger.(diversification?) ils visent les jeunes !

* Updating the product line (market penetration): collection (menswear,...