Evaluation of Burberrys Market Position

Evaluation of Burberrys Market PositionCritically label Burberrys market position relative to that of its competitors. What has been the impact on their position in choosing Emma Watson for their latest advertising causal agencys ?Burberry Finds a position among the occur Ten sumptuosity App arl Brands and Emma Watson proves to be a catalyst .Burberry is a iconic send best cognise for its Britishness , in late(a) years has undergone a scope overhaul having been described as an outdated business with a carriage cachet of al close zero by leading demeanor analysts in 1998 (Finch and May, 1998). By 1997, the yearly profits of Burberry had gone to 25 million from 62 million (Moore, C., Birtwistle, G., 2004) . Over past a few(prenominal) years, Burberry has become in themselves the trace of reinventing and extending product lines to adapt to the taste of times. Our objective was to distil what the Burberry defacement stood for and destine how to make it relevant for todays c onsumer Bravo stated (Alderman, 2002). However, changes focused on marque repositioning turned grosss of 427.8 million in 2001 into 715.5 million in 2005 (Burberry Group, 2005).Burberry pick out a outline to create a market position to formulate its growth and extend the customer base by offering amicable Luxury when most early(a) swords were struggling to acquire a broader clientele. Burberry repositioned themselves and undefended a flagship gunstock on Bon Street in capital of the fall in Kingdom (Moore, C., Birtwistle, G., 2004) placing it store among Gucci, Versace, Prada and Chanel. Approximately, Burberry operates in the worldwide lavishness sector to about 145bn (Burberry Plc, 2009c). Jaeger recently bought Aquascutum and the annual turnover for both brands together was 300m. Whereas, Burberrys current capital is about 2.1bn. Burberry is considered among the outmatch ten luxury brands. Burberrys competitors differ through its categories and price ranges or air ing lines. Burberry is positioned between Polo Ralph Lauren and Armani considering app atomic number 18l and Coach and Gucci for Accessories. Giorgio Armani, Coach, Donna Karan, Escada, Gucci, Max Mara, Polo Ralph Lauren, Tods, Hermes, LVMH, PPR, Prada, Chanel and Richemont be a few among Burberrys competitors (Burberry Plc,2009c). However, even after the recession hit Burberry has achieved to add gross revenue up to 1,202m by 31st march 2009. In 2008/09 there was a gross sales profit through retail by 14%, 2% in wholesale and 9% decline in licensing which contributed to overall 7% revenue increase from the front year (Burberry Plc,2009a).Comparing with the market Burberry Prorsum debates with Armani Black Label, Gucci and Prada. Burberry capital of the United Kingdom Women is placed between Armani Collezioni and Ralph Lauren. Burberry capital of the United Kingdom Men is between the gap of Zegna and Ralph Lauren. Tommy Hilfiger, Armani Jeans and Polo Jeans are the competitors for Thomas Burberry. Most of the Japanese brands resembling Ozoc, Michel Klein are a cowling competition to Burberry Blue while Paul Smith competes with Burberry Black. In recent years Burberry has expanded its product lines which cooperateed to improve on brand rest and growth. Many other mould brands are following the same strategy to stand the competition like Armani extension into Armani Casa, Armani hotels etc.According to the stature 15 luxury brands listed by Interbrand (2009) Burberry is eleventh in the list and among glide by ten if plainly apparel brands are considered. Also, comparing the brand rate for the year 2008 and 2009, it can be concluded that competitors brand hold dears declined. scarce Hermes managed to get a 1% increase in their brand value AND Polo Ralph Lauren is not listed among top 15. Most of the brands managed to climb the ladder on spheric ranks, Burberry achieved 98th rank in top 100 global brands 2009.The market brand position of Burberr y in terms of valuation can be compared through below segments European Apparel Brandscompanies like Escada, Hugo Boss, HM and Benetton are competitors in terms of product mix and the business model. Though few companies counterfeit on lower price range, few brands are tough to compete in terms of the value they offer to consumers. US Apparel BrandsPolo Ralph Lauren, Tommy Hilfiger competes on basis of product mix and has more mature business. Luxury Goods Brandsbrands like Hermes, Coach, LVMH, Tods .Performing better than competitors and beating analyst expectations, Burberry sales rose by 4.6 % to 343m by September. Share price for Burberry doubled during the past year providing a good defense against competitors. Its market position is mainly in the agency oriented mature sectors focusing on ready to wear and approximately accessories peers. Burberry continually tries to consider the cost effectiveness in maintaining the quality and kindle the product while trying to achiev e competitive pricing and up efficiency in sourcing the goods. Even in recession it continues expansion in other markets, for instance the launching kidswear store in US. Also, tailoring the sell mix according to the climate to pull more customers, some products are breaked scarce in selected stores for instance, the New York store provides service for customized infringe coat, Beverley heap store contains light weight products etc.Comparing revenues below, 33% of non-apparel to 67% of apparel is a correct balance for a brand to dis work its products and innovations to provide their customers a wide variety. Where brands like Armani, Channel and Polo Ralph Lauren gain most revenues through apparel while others like Coach depend on the accessories.Burberry trench coats were worn by Hollywood stars like Humprey Bogart in Casablanca, instrument Sellers in The Pink Panther (capital of Mississippi and Shaw 2009, p.77).Burberry strongly believes that marketing and management are ve ry critical to its success hence, it focuses on coverage in Editorials, advertising, fashion shows both domestically and supranationally and has a website, twice yearly ad contracts focusing on leading lifestyle and fashion publications and fashion shows in Milan.In order to reflect the essence of the brand ,create brand consciousness and sustain brands aura, Luxury brands often feature models, celebrities or famous characters as they help wield an enormous power in fashion circles and help in making up or destroying a brand. Burberry uses a agglomerate of images of London to present it English lifestyle with a British celebrity. Burberry had renowned personalities like Stella Tenant, Rachel Weisz, Agyness Deyn, Lily Donaldson and Kate Moss endorsing the brand. Kate Moss was the most popular and high profile face Burberry had. While, other celebrities like Jerry Hall, Nicole Appleton, Jarvis Cocker and Beckhams likewise contributed.The beautiful, elegant Emma Watson the Harry Potter actress, a leading style icon is the new face of Burberry. Advertising campaign images of Burberry featuring Emma Watson as the face of Burberry were unveiled on 9th Jun 2009. Chistopher Bailey ( Burberrys Creative Director) who said Having known and admired the lovely Emma Watson for some time, she was the obvious choice for this campaign. Emma has a classic beauty, a great character and a modern edge. Her charm, soul and brilliant sense of fun made the whole shoot find out like a picnic on the Thames he added.( Craik, L. ,2009).The advertising campaign was shot by renowned fashion photographer Mario Testino in Westminster, underlying London which is the global Head hind end of Burberry and directed by Bailey who considered Watson to strong enough and came up with the idea of presenting only girl surrounded by the young chill British guys. The images in this campaign capture Watson wearing the classic trench coat looking winsome, accompanied by male models Tom Guinness, Charlie France and Douglas Booth. The images represent the rich history associated with the brand as well as the modernness of Burberry which emphasises on the beauty, timelessness and strength of the brand noteworthy at present.Emma Watson has been globally very popular due to her Harry hall porter movies for years now. Watsons popularity and appeal as a leading style icon she has a considerable fan following, which the brand uses to target a new young set of customer. Watsons high profile catwalk at the London fashion week in September 2009, helped the company to raise its profile in UK .It can also be assumed that the new ad campaign helped the brand to attract more customer base and resulting in sales increase which is diaphanous from the sales figures for 2009. Burberry mentioned the increase in the second quarter sales move up from 4.6pc to 343m.Finacial Analyst and business advisors have forecasted that the tax profits will increase towards 190m ( Hall, J. 2009)The lin kage of Emma Watson as the face of Burberry has also helped the brand to increase the sales of handbags and pull on scarves called snoods. The analysts were proposed rise in the profits due to the increase in sales which helped Burberry to beat the market expectations in second quarter of financial year .However, It seems to a bit risky decision for Burberry as she is bound to get a bit older.To conclude, Burberry is an example of complex dribble and distribution for luxury fashion ( Moore and Birtwistle, 2004 ) and proved its potential to be a tough competitor by making positive growth of brand value even when economic scenario is not very supportive. Burberrys decision of choosing Emma Watson for their ad Campaigns has proved beneficial for them to increase sales and profits, also, she reflects the same charm and personality as the brand. However, brand understands that the real task is to implement effective strategies in business that can develop and manage a brand. It is not o nly celebrity that brings success to the brands. 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