Burberry Harvard Case Solution & Analysis

Burberry

Introduction

The case had covered a tremendous detail about the Burberry and its progress year to year.The case is based on the detail related to brand positioning,upgrading of product line, expansion of brand portfolio, issues faced by Burberry,sustainability of brand positioning and some financial highlights of the company.Overall the company has been doing a tremendous job and earning some handsome profits.  The brand had been able to gain the confidence across the entire industry and market place. By the fiscal year 2000they have been able to earn revenues of around £225 million and as just in the next three years they grew their revenues by more than 50% and touched a mark of £600 million.

Burberry Group (Burberry) is in the global luxury sector by the year 1856. They work in the multiple phases which includes marketing, designing, and sourcing of women’s wear, men’s wear, non-apparel, outerwear and children’s wear categories. It distributes with the help of adiversified network of wholesale, retail and licensing channels across the globe. The company actually operates its business in three ways as per region wise, by product and by channel. Burberry distributes and market its products in Spain, Europe, Americas and Asia Pacific region through huge retail and wholesale channels and with very limited licensing arrangements. In addition, it gives licenseto third parties for manufacturing and distributing products across the entire globe using the Burberry registered trademarks.

Moreover, it also categorizes the business operations into 3 main segments namelyWholesale, Retail and Licensing. Burberry is actually headquartered in London and from there, the companyoperates their business globally. The case also gives a detailedoverview of the company from all major perspectives. This comprehensive SWOT analysis has also been conducted for BurberryGroup, which provides an in-depth highlights of the company’s multiplebusinesses and operations across the globe. The analysis has been conducted on the basis of available data and trends going on within the industry and Globe. This would directly help in getting a crystal clear and an unbiased assessment of the company’s key strengths and some weaknesses and the possible opportunities and expected threats. The case analysis will help in articulating the effective strategies that enhancethe overall businessoperations by enablingthe management to understand theviewpoints of partners, customers and competitors in a more optimistic manner. As far as financial aspects are concerned, they are quite well establish and can easily afford to adopt some new costly initiatives to gain more and more competitive advantage. Their revenues are constantly increasing and overall they are doing a fair bit of the job.

Problem

Rose Marie Bravo back in 2003 is debating about an expected situation that can somehow panic the company later on.  He was worried about maintaining the status of the brand across and within the border by targeting both the new and old customers.Moreover, he was also concerned about entering into the new product categories by expanding further distribution.  There is no doubt that brand has shown exceptional growth in the last five years across the world and currently counted among the world hottest luxury brands. They have been able to position their brand in an optimistic manner across the entire globe. Since Bravo is concern about the future of the brand therefore he was likely to take some key strategic and tactical decisions. Bravo was thinking about entering into new product category which could result in a potential opportunity for Burberry. Another concern was about dealing with the appropriation and assumption towards the brand by the non-targeted customers. Additionally, One of the issues which was addressed by Bravo was about using “Check” clothing pattern into adverting’s and promotions because he realized that 25% of the company revenues is derived from “Check” printed products, therefore she wished to use this opportunity on a strategic basis.

SWOT

Strength

  • An innovative culture
  • Established brand name
  • Unique and quality products
  • Exceptional Management
  • Financially Sound
  • State-of-the-art Products
  • Distributing product through retail, wholesale, licensing, distribution channels

There is no doubt that Burberry had been doing an excellent job. One of the reasons for achieving success is the sustainability of their strength.  There company culture is quite innovative and support the new ideas, findings and suggestions that can play an optimistic role in the success. There established brand name always help them to expand and gain trust of the market because they have been in the market since long and are quite successful in gain trust of the customers across the globe. These products are unique which includes both men and women wear with accessories. They offer a wide range of products to both and women to meet their needs and wants by maintaining exceptional quality.Their exceptional product range which can be counted as the counterpart of their strength includes outerwear, knitwear, casual wear, handbags, shoes, children’s wear, belts, wallets and many others....................

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In 2003, Rose Marie Bravo, CEO of Burberry, is discussing how to maintain the currency and the distinguishing mark of the brand through its broad customer base, while entering new product categories and the expansion of distribution. Over the past five years, the brand has become one of the top luxury brands in the world. Bravo but now faces a number of key decisions, including (1) new product categories to enter, (2) how to deal with the assignment of non-target brand customers, and (3) as a leading company of the famous "check" pattern must be in the advertising and clothing. Includes color exhibits.
To enhance their effectiveness, color cases should be printed in color. "Hide
on Youngme Moon Source: HBS Premier Case Collection 20 pages. Publication Date: 01 Oct 2003. Prod. #: 504048-PDF-ENG

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