Burberry Case Essay

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1. Describe the evolution of Burberry’s positioning and customer base. As a brand with long history tracing back to the 1850s, Burberry has long been known for its luxury and durability. During the mid 1950’s, Burberry was one of the most promising fashion brands in the world. However, with mistakes in their business strategy, Burberry’s situation worsened. The primary problem was that they didn’t impose strict control over their licensees who had relatively high freedom in their operation. Thus, it was difficult to maintain the quality and design of products across markets and resulted in deteriorated brand image. Before Bravo’s era, Burberry was perceived as a “conservative” brand that was being used by older people. Bravo came in and repositioned the brand. In order to expand the customer base to include younger customers, while at the same time, retaining the core customer base, they repositioned themselves as “accessible luxury”. Burberry positioned themselves between being functional, which has long been its main value, and being aspirational, adding the fashion mechanism into the brand. Thus, they’ve managed to extend their customer base by retaining existing customers who seek luxury and functionality, and adding younger generations who seek aspiration. 2. 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? Apart from repositioning the brand, improving the operations is also very important to the company’s success. As mentioned in the first question, Burberry had problem with licensees who were given freedom. Burberry became much stricter in controlling the quality in sourcing and manufacturing. Whenever the products needs to utilize skills from outside the company, licensees were carefully selected to design, manufacture, and distribute product. The carefully selected

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