Strategies for Maintaining Customer Loyalty towards Burberry's Luxury Trench Coats

Inside the customers mind

Table of Contents
INTRODUCTION...........................................................................................................................3
Background of study...................................................................................................................3
Research Aim..............................................................................................................................4
Research objectives.....................................................................................................................4
Research Questions.....................................................................................................................4
Significance of research..............................................................................................................4
LITERATURE REVIEW................................................................................................................5
Factors that drives customer's motivations for purchasing luxury trench coats..........................5
Issues that customers have found in trench coats of Burberry....................................................6
Strategies used by Burberry to maintain brand loyalty of customers towards its luxury trench
coats.............................................................................................................................................7
METHODS......................................................................................................................................7
RESULTS........................................................................................................................................8
RECOMMENDATION ..................................................................................................................8
CONCLUSION................................................................................................................................8
APPENDIX......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Customers are the important part of a business entity that highly contributes in its
success. In order to gain competitive advantage in market, understanding the behaviour of
customers is highly essential. Proper knowledge about beliefs, needs and preferences of
consumers will helps companies in unlocking fresh insights that leads business towards success
(Azizi, Ghytasivand and Fakharmanesh, 2012). This research is based on Burberry Group Plc
which is a luxury fashion retailer that deals in fashion clothing, accessories, cosmetics,
fragrances, trench coats, sunglasses and ready to wear outwears. The company was founded in
1856 and is headquartered in London, UK. This research report is based on the topic consumer
behaviour and insights and its aim is to analyse the strategies that Burberry used to maintain
customer's loyalty towards its a luxury trench coats. The research mainly emphasize on the issues
that customers have found in trench coats of Burberry and the way company overcome those
issues and maintain brand loyalty of consumers towards its products. A literature review section
is also included that consist of information regarding various themes. Apart from this, methods
use in research, results, recommendations and conclusion are also covered in the report.
Problem Identification:
Burberry is a very famous brand dealing in accessories, clothing etc. There has been a
new launch in category of coats which includes trench coats. Burberry is willing to make new
strategies for marketing of their products. Digital media as a tool is being used for attracting of
customers. The problem associated with this brand is there is not much variety being offered and
limitation is leading to less choices. Other similar brands having more variety are preferred by
their target customers. Present research will help Burberry in increasing their present profitability
level and also in attracting customers from different segment of market if they are able to find
effective solution for problem their customers are facing. This research is based on identification
of problems or issues of customers and drawing of results for solving such problems so that there
is no negative impact on established image of Burberry.

Background of study
Consumers are the key part of business as its growth and success majorly rely on these.
Proper understanding of needs and requirements of customers helps companies in retaining
customers and maintain their loyalty towards brand for longer term (Breazeale and Ponder,
2013). Consumer retention and loyalty are very crucial aspects that requires to be consider by
business entities which are operating in fashion industry as their needs and preferences are
changing very frequently and their chances of switching the brand is very high. So, for gaining
competitive advantage in market, it is necessary for company to maintain loyalty of customers
towards brand. In fashion retail industry of UK, there are around 555,000 people employed in
sector. Many fashion companies are operation in industry such as Marks & Spencer, ASOS, Next
plc, Mulberry etc. which offers variety of fashion products to customers. Customer expenditure
on clothing is 56,048 millions GBP in United Kingdom. Burberry Group plc is one of the leading
luxury fashion house of Britain which offers ready to wear outwears, trench coats, fragrances,
cosmetics, sunglasses and fashion accessories (Caperello, Kurani and TyreeHageman, 2013).
The company was established in year 1856, around 163 years ago and its headquarters is located
in London, United Kingdom. The founder of business entity was Thomas Burberry and operating
in around 500 locations. The company mainly emphasizing on creation of outdoor attire and has
moved in high fashion market by developing Gabardine which is its first kind fabric that is
completely waterproof and breathable and made exclusively for brand. It is the largest firm on
the basis of its market capitalization. It is valued over $10 billion and had revenue of around 3.8
billion dollars in year 2017 (UK fashion industry statistics, 2019). Company sells its products via
wholesale and retail channels and around 77% revenues are generated from retail sales. This
research is based on the aim to analyse the strategies that company used to maintain loyalty of
customers for brand's luxury Trench Coats (Lukas, Whitwell and Heide, 2013). The objectives
and questions associated with the aim are mentioned below:
Research Aim
“To analyse the techniques that company used to maintain loyalty of customers for
brand's luxury Trench Coats. A case study on Burberry.”
Research objectives
 To determine the factors that drives customer's motivations for purchasing luxury trench
coats of Burberry.