Q1.

Compare Burberry’s market position relative to that of its competitors, including Coach, Armani, and
Gucci. Is Burberry’s competitive position sustainable over the long-term? Why or why not?

Ans:--

Bravo has been able to fix Burberry from being broken to a position right in the middle, between
lifestyle and fashion. If we compare the Burberry’s market shares with the likes of Armani and Gucci it
stands above them at 3% of the estimated market share, while they stand at 2% and 1% respectively in
apparel section. But in terms of accessories market it’s below Gucci and Coach at 4% whereas they stand
at 12% and 6% respectively. Since Burberry is wedged between lifestyle and fashion brands, its
competitive position is not stable in long term. It is in competition with practically everyone from Target
to Gucci, because now-a-day’s people shop at everywhere.

Q2. Because demand tends to be unpredictable in the world of fashion, the fashion business is
inherently risky. In this context, consider the various changes Bravo made upon her arrival at Burberry.
To what extent have these changes aggravated or mitigated Burberry’s risk profile?

Ans:--

Rosie Marie Bravo’s goal was to transform Burberry from being a tired outerwear manufacturer to a
luxury brand. She began that by bringing in a team of A-list industry talent who knew the ins and outs of
the retail industry. Some of bravos first most changes were cosmetic, like changing the name Burberry’s
to Burberry, changing the logo and packaging to a more contemporary one. Also they ended up making
a number of strategic decisions that saved the Burberry and transformed virtually every aspect of the
brand for good.

Q3. Bravo’s team is currently juggling a lot of things, including multiple brands (Prorsum, London, Blue
and Black, Thomas Burberry), multiple collections (womenswear, menswear, accessories), multiple
channels (wholesale, retail-including flagship and company owned stores), and multiple licensees. What
is the role of each of these elements in Burberry’s overall business model? For example, what is the role
of each of the sub-brands? What is the role of the company-owned stores? What is the role of licensing?

Ans:--

In 2003, a new product range was launched. The products were classified as either continuity or fashion
oriented. Continuity products were expected to last over a number of years whereas fashion oriented
products were responsive to the current fashion trends and were introduced on a collection to
collection basis. Burberry aimed to achieve broader appeal by evolving their women’s wear line. They
introduced 450-500 women’s apparel styles every season, keeping in mind their rough and tough
weather heritage and traditionally focused on autumn/winter season. But later it evolved more to
include apparel for warmer climates. Burberry addressed the needs of its male customer with tailored
suits, raincoats and shirts. Burberry wanted its clothing to appeal to a 25 year old and also at the same
time to a 60 year old making their collection cross generational.
Q4. The case notes that Bravo’s team has managed to elevate the overall status of the Burberry brand.
How has it managed to accomplish this?

Ans:--

Rosie Marie Bravo’s goal was to transform Burberry from being a tired outerwear manufacturer to a
luxury brand. She began that by bringing in a team of A-list industry talent who knew the ins and outs of
the retail industry. Someone who worked in stores, shop floors and in fitting rooms. Some of Bravos first
most changes were cosmetic, like changing the name Burberry’s to Burberry, changing the logo and
packaging to a more contemporary one. Also they ended up making a number of strategic decisions that
saved the Burberry and transformed virtually every aspect of the brand for good.

Q5. Should Burberry be aggressively transitioning to a more restrained use of the check? What effect
will this decision have on the long-term sustainability of the brand?

Ans:--

Over the past years it was estimated that 25% of all company revenue from merchandise featuring the
trademark check products. Bravo wanted to bring some soul into the checks by managing the
pervasiveness of the checks in a strategic way. She also advocated in constraining the use of checks and
believed that the company should start selling products with no checks at all. But on the other hand
many customers existed who bought Burberry for its checks only and refused to buy something from
Burberry without its signature plaids.

Q6. Describe Burberry’s customer base. Who is Burberry’s target customer? How could Burberry’s
popularity among non-target customers affect the brand? How should Burberry respond to this
popularity?

Ans:--

Burberry aims to very cross generational. They keep on reinventing themselves to keep themselves
popular among the teens as well as the matured age group. Burberry items became immensely popular,
both legitimate and counterfeits among the urban youths. Burberry was sported with many celebrities
and even a reality show contestant. Although this was taken a good sign that Burberry succeeded in
appealing the youths but it was feared that it could alienate the core customer base of the brand.

Q7. Should Burberry be launching Brit, the new perfume line? What other product categories should
Burberry be entering?

Ans:--

Brit, a perfume line developed by the house of Burberry is being launched. The fragrance is said to
surpass Chanel No.5 in terms of the fragrance and the impact. Other categories Burberry should be
looking in is kids wear and sportswear as there is a huge potential of Burberry that is still not being used
up to the mark. Kids wear has a huge market as there are very few luxury kids wear brands and burberry
has the potential and the popularity to enter the kids wear scenario and succeed in it.