1. INNOVATIVE MARKETING &
COMMUNICATIONS AT BURBERRY

2. AUTHENTIC BRITISH
HERITAGE
“From its founding in 1856, Burberry has become the leading British luxury
brand globally.
The brand is defined by:
• Britishness
• Authentic outerwear heritage
• Historic icons: the trench coat, trademark check and Prorsum knight logo
• Democratic luxury positioning
• Innovation and intuition” (Burberryplc.com)
In 1914 Burberry ‘trench coat’ was born & the Burberry Check was introduced
as a lining 1920s. The trench coat and the Burberry check are now globally
recognised in line with their prorsum horse logo.

3. BRAND HERITAGE
Previously Currently
*Formal *Exclusive
*Limited ranges *Younger target market
*Work wear *Product differentiation

4. MARKETING
SUCCESS/FAILURES
FAILURES
• Brand “Hijacking”: SUCCESS
Association with hooligan
and “chavs” • Regaining control of the
• Counterfeits brand: buying back the
• Spanish operation business - Spain
• China & moving into
other emerging markets
– India/ Brazil
• Brand differentiation
• Innovative technology

5. FINANCIAL OVERVIEW
Burberryplc.com

6. CURRENT STRATEGY
Marketing Innovation
1. Launched new Burberry.com site
2. Extended luxury leadership position in social
media
3. Continued transformation of fashion shows
4. Further digitisation of the brand
Strategy & Mission, Burberry 2010/11, Burberry plc.com

7. CURRENT MARKET
• Increase of 5.4% in value of retail sales from last
year
• Increase of 0.9% in sales volumes from last year
• Average online weekly spend increased to £561.5
million in October 2011 compared with £518.7
million in September 2011
• Retail accounted for 64%
• 32% growth in retail
• 26 new stores open worldwide this year

8. COMPETITOR ANALYSIS
Competitor Market Strategy Target Market Strength Weakness
Ralph Lauren Magazines, Middle & Multiplex Lack of first rate
merchantainme upper brand design
nt, technology segment,
youth
Gucci Limited Middle & Established Instability in
quantity, upper class, brand image & management &
endorsement, hip international fashion base
expensive presence
Prada Exclusivity, Middle & High prices, High prices,
product upper brand loyalty, availability
differentiation, segment, brand quality
pioneers fashion

9. SWOT ANALYSIS
STRENGTHS WEAKNESSES
Prestigious brand name & heritage Overexposure of the brand – ‘chav’ perception & 3rd party
International presence distribution in 2005
Controlled distribution channels Rapid growth adding pressure to the supply chain &
Product design, quality & range resources
Digital leader Dependency on wholesale to department stores
Exclusive luxury market sector & pricing Dependency of ICT due to a large focus on social media
Celebrity endorsement Limited target market due to the brands price strategy
OPPORTUNITIES THREATS
Franchises, further stores/concessions Counterfeit goods
Sponsorships & celebrity endorsement Competitors
Investment & growth in emerging markets (China etc) Economic climate
& new markets (Eygpt, Armenia, Isreal, Mongolia). Operating in emerging volatile v markets
Further e-commerce & marketing development Consistency of standards (3rd parties/channels)
New product development (seasonal designs)

10. VALUE CHAIN ANALYSIS
• Primary activities
• Inbound logistics
• Operation: outside manufacturing, supply chain, retail network
• Outbound logistics: shops, online , joint ventures.
• Marketing and sales: 32%
• Service
• Secondary activities
• Firm’s infrastructure
• Technology development
• Human resource management
• Procurement

11. PORTERS 5 FORCES
• Buyers:
buyer power is not strong due to the substitution
• Substitute product:
competitor apply
• Suppliers:
distribution hub changed.
• New entrants:
capital investment, economies scale.
• Industry rivalry:
take over the market share for competitor

12. CRITIQUE OF PORTERS
5 FORCES
• Personal situation too complex
• Environment has changed
• Economic crisis
• Globalization and competitors
• Technology developed, internet shopping

13. PEST
POLITICAL ECONOMIC
Current global economic climate
Retail tax (VAT) economic cycle/ raise and fall in each country
Employment law – minimum wage, working Reduced disposable income of consumer
conditions, hours etc (Consumption capacity)
Manufacturing restrictions – CSR Global market – exchange rates
Trade restrictions CPI for target country
imports and exports rate –target country
SOCIAL TECHNOLOGICAL
demography / geography Social media
lower disposable income E-commerce/website
Varied fashion preference globally Online promotions
Various culture/value Digital market/innovate
British image/acceptability

14. BOSTON MATRIX
MARKET SHARE
High Low
High
Women’s wear Luxury Jewellery
MARKET
GROWTH
Low
Luxury Glasses Men’s Luxury Belts

15. BOSTON MATRIX
CRITIQUE
• Linkbetween market share and profitability is
questionable
• Ignores the potential of declining markets
• Assumes each business unit is independent of others
• Too simplistic
• Only one indicator and measure
Overall, it is too simplistic to be used on its own.
However, it does give an indication of whereabouts
products are in the market and the best ways to move
forward.

16. PRODUCT LIFE CYCLE

17. DIFFUSSION OF
INNOVATION
•London, Brit
• Perfume
•Fashion
• Purses
conscious
•Bespoke
trench &
children’s t-
shirts
• Prorsum
• Celebrities
• Stylists

18. MARKETING
OBJECTIVES
A design, marketing & retail led company (Angela Ahrendts, 2010):-
• Increase sales by 10%
• Increase online conversion by 15%
• 5% Growth in new & emerging markets
• Reinforce the heritage of the brand & regain trust
• Continue to excel as a digital leader

19. MARKETING &
COMPETITIVE
STRATEGY
Marketing Strategy - Ansoffs Matrix
Current Market – market penetration Product
• Digital Current New
• Celebrity endorsement
Market Product
New markets – Diversification Current Penetration Development
• Diversified growth
• NPD
• Enter new markets Market
Concentric diversification – same Market
brand, new market Development Diversification
Spreads risk - economy New
Strengthen financial position
Competitive Strategy
• Market leader – digital
• Market challenger - goods

20. FASHION INDUSTRY
PERCEPTUAL MAPPING

21. MARKET
SEGMENTATION
• Competitive industry from discount brands to haute couture
• Exclusive and luxury
• Historic icons
• Art of the trench website was a social media site launched in 2010
• Aimed at the younger audience
• Face of Burberry – Emma Watson
• Connection to British roots
• Appeal to a broad audience
• She appeals to a number of demographics

22. MARKET
SEGMENTATION
Palmer and Millier (2004) provided a framework for
the considerations of segmentation.
Who buys
• Lifestyle – Luxurious
• Fashion aware
• Sex – menswear expanded
• Stage of the family lifecycle – no children
What is bought and why
• Benefits to the customer
• Perceptions – how the brand is seen
• Customer loyalty
• Price sensitive – bespoke, luxury brand

23. TARGET MARKET
TRENCH
• Iconic piece
• Originally for Forces
• Reinvention
• Younger audience
• Celebrity endorsement
• artofthetrench.com
• Burberry Acoustic
Target
• Young professional 18 - 30
• Large amount of disposable income
• Fashion conscious

24. POSITIONING
• Consistent and positive regarding the product
Trench
artofthetrench.com, social media site
Burberry Bespoke
Outerwear heritage
Classic
Iconic luxury
Distinctively British

25. MARKETING MIX
Product
• Womenswear, menswear, Non
apparel, childrenswear, home
• Bespoke
Price
• High quality, exclusive luxury
• Physiological - Prestige pricing
• NPD – seasonal
• Limited discounting
• Burberry branding – logo/check Young, profes
• Exclusive - high GP
• Limited availability sional, exclusi
ve
luxury, classic Promotion
Place ally British • Digital – burberry.com & various
• Flagship stores & Concessions social media
• Short channel structure (P-C/P-R- • Competitive advertising
C) with full management • Advertising media – TV, Magazines
• Digital - Burberry.com & various • Joint promotions –Harrods
social media channels • Sponsorships – HOYS etc
• New store openings in new &
emerging markets

26. CRITIQUE OF THE 4 P’S
Waterschoot (1999) highlights a number of problems with the mix…
1. “it focuses on what marketers do to customers rather than for them”
2. “it is externally directed & ignores the internal market”
3. “it says nothing about interactions between the mix variables”
4. “it takes a mechanistic view about markets”
5. “ it assumes transactional exchange rather than a relationship”
(Baker, 2007)
In 1981 Booms and Bitner challenged the marketing mix, introducing the 7 P’s
(price, product, place, promotion, participants, physical evidence, process)
which is viewed as more comprehensive, defined and detailed than the 4Ps
model and provides a broader perspective including people (Rafiq &
Pervaiz, 1995).

27. CRITIQUE OF THE 4 P’S
Process
• Efficient standardised
sales process Physical evidence
• High quality customer
service (personal • Clean, modern, brand Participants/people
shopping) standard store layout
• Clear online across all retail avenues • Highly trained &
navigation, with timely • Changing knowledgeable
& efficient online sales facilities, mirrors to aid employees - added
transactions the sales process value
• Visual shortcuts to sales • Products to be as they • Fit brand – aesthetically
platforms appear online or in • After sales support –
• SAP order systems advertisements refunds/exchanges/
• Branded packaging & advice
receipts
• Logo on all POS

28. WHY DIGITAL?
There are FIVE main benefits of e-marketing:
1. Sales growth
2. Added value
3. Get closer to the customer
4. Save costs
5. Extend the brand online
Summarised as the 5 S’s – Sell, serve, speak, save & sizzle. (Caffey, 2008)
• Burberry Facebook has over 9 million likes with Facebook itself having
over 800 million users
• Burberry Twitter has over 600 thousand followers with 100 million
users
• There are 8 million viewers on YOUTUBE
• Burberry has 11 thousand 12 million people use LinkedIn

29. CURRENT DIGITAL
PRESENCE
artofthetrench.com

30. SOCIAL MEDIA
Social media provides a way
people can share ideas
content, thoughts & relationships
online (Scott, 2010)

31. SOCIAL MEDIA
?
artofthetrench.com

32. IMPORTANCE OF
SHARING
http://mashable.com/social-media/

33. LINKEDIN
• Burberry employees, job vacancies & those with interest in the
company
• Professionals & networkers
• Sponsored advertisement s & sharing facility
• Example sponsored ad - target high salaried, fashion sector who
follow the company, have job titles such as
director, corporate, manager etc. Share information from
website to LinkedIn hits target market – young professional’s

34. TWITTER
Information sharing, brand reinforcement & loyalty, affiliate marketing, promotion
@burberry - 643,221 @angelaahrendts – 7,183
Example 1 Example 2
@bbcapprentice - 78,295 @virginmedia – 29,733
@amsprop - 6 @virgin – 26,038
@virginamerica – 27,817
@lord_sugar – 1, 321, 142 @virginatlantic – 52,350
@RichardBranson - 1,548,294
Figures as on twitter.com 01/12/11

35. BURBBERY.COM &
ARTOFTHETRENCH.COM
• SEO, rich & varied content, design fits purpose, clear navigation, visual
shortcuts, interactive design process.
• Online exclusives, become more social RSS/twitter feeds (widgets), YouTube
sharing, blogs, data capture functionality, strategic & affiliate marketing, LinkedIn
sharing, mobile application
• Social media only works if people are using it & sharing information
• People who use social media applications on their phones are twice as active as
non users
• Application development will increase usage of artofthetrench.com
• Application development of Burberry.com will increase sales

36. OFFLINE
COMMUNICATIONS
• TV
• Magazines (sales promotion through samples),
• Joint promotions
• Sponsorships
• Celebrity Endorsement
• Fashion Shows

37. MEASUREMENT OF
OBJECTIVES
• Benchmark digital performance against the
competition & using analytics
• Top line sales
• Online sales & conversion
• Market share
• Brand perception & loyalty

38. RECOMENDATIONS
• Continue to invest in new & emerging markets in order to reduce
risk.
• Produce a mobile application for the artofthetrench.com to
increase awareness & burberry.com to increase sales. Also
targeting a young fashion conscious market.
• Link all digital marketing tools together to make sharing easier
across all platforms. Cover all social media channels in order to
remain a digital leader.
• Seasonal new product development & product diversification in
order to reach new markets & retain customer loyalty.

39. REFERENCES
Burberry Plc. (2011) Corporate profile – overview [online] cited 01/12/11, Available
from, http://www.burberryplc.com/bbry/corporateprofile/overview/
Burberry Plc. (2011) Strategy & Mission 2010/11 [online] cited 01/12/11, Available
from, http://www.burberryplc.com/bbry/corporateprofile/strmis/
Barnett, Emma (2011) Burberry, Angry Birds and Mumsnet launch first Google+ brand pages [online] cited
01/12/11, Available from,
http://www.telegraph.co.uk/technology/google/8874657/Burberry-Angry-Birds-and-Mumsnet-launch-first-Google-
brand-pages.html
Mohammed Rafiq, Pervaiz K. Ahmed, (1995) "Using the 7Ps as a generic marketing mix: an exploratory survey of UK and
European marketing academics", Marketing Intelligence & Planning, Vol. 13 Iss: 9, pp.4 – 15
Facebook (2011) Burberry [online] cited 01/12/11, Available from
http://www.facebook.com/profile.php?id=554295458&ref=tn_tnmn#!/burberry
Twitter (2011) Burberry [online] cited 01/12/11, Available
from, http://www.facebook.com/profile.php?id=554295458&ref=tn_tnmn#!/burberry
LinkedIn (2011) Burberry [online] cited 01/12/11, Available from
http://www.facebook.com/profile.php?id=554295458&ref=tn_tnmn#!/burberry
YouTube (2011) Burberry [online] cited 30/11/11, Available
from, http://www.youtube.com/user/Burberry?blend=1&ob=4

40. REFERENCES
Techland Times [online] cited 1/12/11. Available from:
http://techland.time.com/2011/09/09/twitter-reveals-active-user-number-how-many-actually-say-something/
Office of National Statistics [online] cited 1/12/11. Available from:
http://www.ons.gov.uk/ons/rel/rsi/retail-sales/october-2011/stb-october-2011.html
Burberry plc Finances [online] cited 1/12/11. Available from:
http://www.burberryplc.com/bbry/newsrel/finnews/2011/2011-11-15/2011-11-15.pdf

41. BIBLIOGRAPHY
Bunz, Mercedes (2009) Burberry checks out crowdsourcing with The Art of the Trench [online] cited 01/12/11, Available
from, http://www.guardian.co.uk/media/pda/2009/nov/09/burberry-art-of-the-trench
Bonnerville, K (2010) Burberry launches commerce-enabled iPad application, Luxury Daily [online] cited 04/12/11, Available
from http://www.luxurydaily.com/burberry-streams-fashion-week-live-enables-ecommerce-via-ipad-app/
OPPAPERS.COM Burberry Investigative Report And Competitors. [online] cited 20/11/11, Available from:
http://www.bing.com/search?q=burberry+competitors&src=IE-SearchBox&FORM=IE8SRC
Warc Burberry case study [online] cited 30/11/11, Available from: www.Warc.com
Burberry World strategy and mission [online] cited 28/11/11 Available from:
http://www.burberryplc.com/bbry/corporateprofile/strmis/
Max-Adler.net Critical review of Porter's five forces. [online] cited 28/11/11, Available from: http://www.max-
adler.net/porters-five-forces-critical-review.html
BBC News business Burberry fashion brand reports 40% profit rise. [online] cited 27/11/11 Available from:
http://www.bbc.co.uk/news/business-13557085
West D, Ford J, Ibrahim E. Strategic Marketing. Creating Competitive Advantage (2010). 2nd Edition. New York, Oxford
University Press.