Burberry Market Position and Competitor Analysis

Burberry Market Position and Competitor AnalysisAns Burberrys target customer is someone who wants opulence while be functional. The brands point of difference with other luxury brands is that they could be luxury, aspirational, and functional. Burberry decided they were going to reach these customers from bravo identifying their niche in the midst of sound outs of Polo Ralph Lauren and Giorgio Armani on the snip side, and between Coach and Gucci on the accessories end. The Burberry team priced the products between these price points to reach consumers. Burberry wanted to create the depiction of reachable luxury.The characteristics of a market are assessed by dint of with(predicate) various models such as analysis of Porters five forces of competitors analysis. Here, we view Burberrys market authoritying through its competitors analysis. Burberrys products include continuity products which conduct a product vitality cycle of a few years, and sort products which are desig ned to respond to a fashion trend. Therefore, the market positioning of the Burberry is unique and varies as it targets trendy as well as classic customers. Burberry targets all its customers through a common theme of functional luxury. Burberrys main competitors include Coach, Armani, Gucci, and Polo, all of which are among top fashion brands in UK and world(a)ly. Coach and Gucci, some(prenominal) are more focused towards fashion accessories while Polo and Armani are more focused towards apparels although all have a revolve of products in both apparel and colleague categories.Burberry has positioned its brand in the minds of consumers to be functional luxury. Burberry maintains a product line with great width and depth consisting of some(prenominal) products. Their products fall into one of two main categories fashion or continuity. Fashion products are designed to be responsive to fashion trends and are introduced on a battle array-by-collection basis. Continuity products ha ve life cycles that are expected to last for a number of years. Burberry excessively has three patriarchal collections womens wear, menswear, and accessories. With so legion(predicate) several(predicate) products offered in several(predicate) collection and the fashion vs. continuity of Burberry products the product mix is very great. This contributes to the positioning of the Burberry brand. Burberry has received awards for the Contemporary soma Collection of the Year and the Classic Design Collection of the Year. This illustrates how diverse the Burberry brand isTherefore, the market positioning for Burberry varies. Burberry can appeal to the hip 25-year-old man or the conservative 65 year old man. However, many Burberry ads feature younger models. Recent Burberry ads have featured everything from a British landscape with aristocratic looking models to edger ads with models in bikinis. Taking all of this into account, Burberry is targeted towards many different segments of t he population with one common theme, functional luxury.Burberry has many competitors that include Coach, Polo, Armani, and Gucci. Relative to that of Burberrys competitors, they have positioned themselves very well in the minds of consumers. Coach primary positioning is on handbags. While Coach in addition carries other accessories that range from watches and shoes to scarves and dog collars, Coach remains primarily in the accessory end of fashion. Coach was too not even a player in the top 10 luxury goods players. However, Coach held 6% of the accessories share and in a price equivalence was more on the low end of cost for accessories. This does not however reflect Coachs marketing positioning. Coach is just simply more affordable and more accessible to the general population.Polos marketing positioning is centered more towards habiliments. While Polo was a number two player in the top luxury brands they captured the close market share for apparel, however, lower priced than B urberry. The Polo brand has great brand equity and is very well established in the minds of consumers. Armani, another competitor or Burberry, lay 8th in the top 10 global luxury goods. While Armani really only focuses on apparel the brand still maintains a real luxury position in the market. Gucci also placed in the top 10 global luxury goods. Guccis marketing position is towards luxury accessories. They captured 12% of the accessory market share and were the highest priced brand for accessories.Overall, Burberrys competitive positioning is suitable over the long term. While brand like Coach and Gucci focus more on accessories and Armani and Polo focus more on the apparel market, Burberry has succeeded in penetrating both the accessory and apparel market while remaining a luxury good. Burberry has also succeeded is positing itself between brands such as Polo Ralph Lauren and Armani in apparel, and between Coach and Gucci in accessories. Burberry also has many different lines with in the Burberry brand. This allows for more high-end goods and goods that would be feasible for grease ones palms by the general population. Burberrys positioning of functional luxury is extremely competitive and will sustain over the long-term.Q2. Is Burberrys competitive position sustainable over a long term? Why?Ans Burberry, initially Burberrys was popular amongst the British Royalty during the 1900s for its original designs and uncompromising quality. Thereby, the brand increasingly became a symbol of both luxury and durability. However, during the mid-90s, the company started facing several strategic and structural issues. In spite being a profitable strain the earning quality was low. The brand came to be perceived as stodgy-looking and conservative, and skewed to a older customer-base.However, reinvention of the brand took place when Rose Marie Bravo came on board as the chief executive, with the basic motor to transform Burberry from a tired outwear manufacturer into a l uxury lifestyle brand that was inspirational, stylish and innovative. The following measures were takenRecruiting people, who were experienced and skilled in the field, thereby made a A-list industry talent team.Changing the name from Burberrys to Burberry and a contemporary logo and packaging was introduced.Repositioning the brand between van fashion and classics.Burberry was positioned as a aspirational as well as functional brand and represented accessible luxury.The product line was upgraded and Burberry came up with three primary segments Womens wear, Mens wear and accessories.Burberry expanded its portfolio in two segment low priced labels including Thomas Burberry (in Spain and Portugal) and Burberry Blue and morose labels (in Japan) mainly to appeal younger, more fashion conscious customers and the high-end label Burberry Prorsum to position itself in high-profile luxury market.Advertisement campaign including Stella tenant, featuring a British aristocrat and model Kate Mo ss featuring the modern, fashion-oriented side.The check prints were an integral part of Burberry design pattern, and accounted almost 25 percent of companys revenue from check products. It also launched Burberry Brit, a new perfume line featuring a check design bottle.Thereby, Burberry positioned itself as a brand between lifestyle and fashion brand. Thus Bravos team brought Burberry from a broken position to a popularity stage. Thus, Burberry holds a competitive edge and positioning in the market.This competitive position for Burberry is sustainable over the long term due to several reasons. Not only due to its particular price points, but Burberrys intensive consumer surveying is also important. Burberry has consistently focused on remaining true to their core brand values and heritage to the Burberry brand.Burberrys market share in 2001 as rated against the top carbon luxury goods players was 5.2%, putting them in 4th place overall. This compares with 14.4% market share for LVM H (1st), 9.1% for Polo Ralph Lauren (2nd), and 4.4% for the Gucci Group (5th).Armani falls short with a smaller percentage (3.5%) of the market. Coach is farther below these and does not appear on the top 10. If you compare by the type of luxury good in accessories Gucci is at 12%, Coach at 6%, Polo at 4%, and Burberry at 4%. And for apparel considerations Polo is at 9%, Burberry at 3%, Armani at 2%, and Gucci at 1%.It is exculpated here that these distinctions occur based on the depth and width of each companys product line. Coach sells far more accessories (i.e. leather goods) than clothing, and Polo sells far more clothing than accessories. Burberry is almost balanced, and sells an equal amount of both, on their 2003 annual report Burberry shows almost even income from womens wear (33.3%), menswear (27.4%), and accessories (28.6%).For this reason, Burberrys competitive position is sustainable, as they have a congruous demand for both accessories and apparel.Q3. Bravos team is currently carrying out several initiatives including multiple collections, multiple channels and multiple licenses. What is the role of each of these initiatives in Burberrys overall business model?Ans duplex BrandsBurberry created multiple brands (Prorsum, London, Blue and Black, Thomas Burberry) to attract certain kind of customers whom they were not targeting initially and to cater certain characteristics of certain customers. This root word supports Bravos goal to attain new customers along with retaining old customers For example, Burberry London was offered as a lower-priced label designed to appeal to a younger, more fashion-conscious customer. Blue and Black is sold in Japan, for younger individuals, and is a foreign product that diversifies the product risk. Burberrys Prorsum product line was introduced to secure their positioning in the niche and luxury market. It shows consumers that Burberry competes with the in style(p) fashions, and represents the highest end of luxu ry items. Prorsum was used to show the Burberry brand as luxurious and according to Bravo, the Prorsum introduction was created to tell people that something new was happening at Burberry. The intellection was to introduce a high-profile, high-end brand, and do it in a first-class way, by putting it in the best stores in the world. The intended role for Burberrys collections (Womens wear, Menswear Accessories) was due to broad consumer research to also help recruit a newer consumer. The only way to do this was to update the product line to fit the fashion-desires of current and potential customers, and a way for Burberry to give a consistent look and feel across an array of products. Not only did they maintain creating products that were expected to have a lifespan of a number of years, but they also created other fashion-oriented productsdesigned to be responsive to fashion trends, thus maintaining their flow with fashion evolutions. Burberrys continuity products (classic trenc h, duffle coats, handbags and scarves) have longer life cycles than that of its fashion oriented products. Care must be taken in analyzing product life cycles. In terms of womens wear, menswear, and accessories, each collection allows Burberry to compete with its major competition. A collection of accessories allows Burberry to adequately compete with larger accessory players such as Gucci and Coach. septuple ChannelsMass exposure was allowed to customers in wholesale and retails. The company had taken more control over its distribution by purchasing some distributors and severing ties with others. It had 3162 wholesale stores, 434 department stores, and 2728 specialty stores.Multiple LicenseesThroughout the 1970s, when Burberry was owned by GUS, the Burberry brand became licensed on too broad of an array to maintain the true image and values of Burberry. With this came overall fervor when the pricing, designing, and quality of Burberry products became skewed across numerous market s which then resulted in the brand having losing much of its exclusivity and the Far East accounting for a disproportionate 75% of sales. Due to this fact, Bravo determined and executed a plan where Burberry would now exercise control over everything from design to sourcing, manufacturing, and distribution. Ultimately, devising this licensing strategy allowed for the elimination of price, design and quality inconsistencies. Multiple licensees allows Burberry to introduce products in markets their competition has better hold of, and still share in some of the profit. These new collections and brands serve to further Burberrys new strategy and to lessen risk of alienating core customers.Q4. Has Bravos team managed to elevate the overall status of the Burberry brand?Ans Bravos team has managed to elevate the overall status of the Burberry brand through a complete transformation of the brand from being a classic aristocratic brand to a complete fashion oriented though being well-verse and sticking to its core brand values providing the customers both luxury and durability, for which it is known. The product was positioned as an affordable luxury brand catering customers of all age groups and from different fronts of life.The team rigorously worked to completely overhaul the pricing, distribution, product, and promotion. Multiple product lines and brands were created and the company moved in a global direction. Burberry also saw that by 2002, crude(a) margins were now 56% compared with 47% in 2000. Multiple brands like Burberry Prorsum, Thomas Burberry, Burberry Blue and Black labels were launched to cater every segment in the market place. In terms of distribution, by 2002 Bravo and her team had managed to create world-wide distribution of the Burberry product. According to the study, they had 3,162 wholesale doors worldwide, including 434 department stores and 2,728 specialty stores, and also more than 132 company-owned stores.Lastly, Bravos team challenged the mselves in in the long run devising a plan to promote the Burberry image. With the help of a famed advertising team, the Burberry campaign executed. The first flight launched in 1998 and featured Stella Tenant, a British Aristocrat and ultimately told a story that was able to convey the brand values, tradition, and heritage of the Burberry brand. The following winter, in 1999, the team was able to maintain the value image of Burberry, but also introduced model Kate Moss into their ads to simultaneously convey Burberrys more modern, fashion-oriented side. Ultimately, each challenge remained focused on Bravos original goal to make Burberry a global brand, while maintaining the core values and heritage of Burberry. Thereby, Bravo and her team brought Burberry at a status of most preferred, durable, luxury and also fashion oriented and accessible brand for all age category customers, thereby redefining an elevated status of Burberry.