Final Report: Brand Audit Project for Burberry (FTM 382, Spring 2012)

This brand audit report evaluates Burberry's industry presence and provides recommendations to enhance its market share. The report includes an executive summary, company history, and objectives. It delves into industry analysis, product market analysis, financial analysis, SWOT analysis, and competitor analysis. The brand inventory section covers target markets, marketing programs, brand architecture, personality, and elements. Brand exploratory market observation focuses on awareness and associations. Recommendations address branding strategies, marketing programs, secondary associations, and an IMC proposal. The audit highlights Burberry's strengths in product mix, marketing campaigns, and consumer reach, while suggesting improvements in marketing effectiveness and brand presentation, including a new approach to brand hangtags.

Brand Audit Project
Final Report
Company: Burberry
Group: Jasmine Roscoe,
Jessica Johnson, Mardrea
Jones, Sierra Lowery
FTM 382
Spring 2012
Instructor: Dr. Xu
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Table Of Contents
A. Executive Summary
B. Company History & Background
C. Objective
D. Industry Analysis
Product Market Analysis 4
Financial Analysis 5
SWOT Analysis 6
Competitors 7
E. Brand Inventory
Target Markets 8
Marketing Program 8
Brand Architecture 9
Brand Personality, Elements, and Mantra 11
Competitor Analysis 12
Brand Inventory Assessment 13
F. Brand Exploratory
Market Observation 14
Brand Awareness and Association Assessment 14
G. Reccomendations
Branding Strategies 16
Brand Marketing Programs 17
Secondary Associations and IMC Proposal 19
References 22
Appendix 24
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A. Executive Summary
This brand audit evaluates the industry presence of Burberry and provides reco
in order for the company to increase it’s market share. The objectives of this au
-to identify current place industry
-to evaluate current marketing procedures in place
-to observe consumer sentiment
-to recommend ways for Burberry to enhance it’s current position
In this analysis the marketing and product mix are heavily analyzed. Burberry o
variety of product and different price points, as well as conducts intense marke
campaigns. The findings of the effectiveness of these were very high, but there
for improvement. The company does an amazing job reaching inside and outside
customer base. The hope of the company is to be on the mind of those who can
afford the products, because those who can will buy and those who can’t will as
prestige with the company and when they can afford the product they will shop
Recommendations made were generally dealing with how to increase marketing
effectiveness and relevance when dealing with their target market. Other recom
were made dealing with the evaluative approach the company uses as well as o
modern but timeless look to their brand hangtags.
B. Company History & Background
Burberry was founded by Thomas Burberry in 1856, in Basingstoke, Hampshire,
the time Burberry worked as a draper’s apprentice and was only twenty one yea
1870 the small shop started by Burberry had grown into an “emporium” that fo
outdoors attire. In 1879 Burberry invented garbardine, a fabric that is waterpro
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durable but breathable. A patent was taken out on the fabric in 1888. In 1891 t
opened a store in the west end of London and in 1895 developed the Tielocken
precursor to the trench coat. In 1901 the trademark Equestrian Knight accompa
work “prorsum” first appeared. In 1914 the creation of the iconic trench coat oc
has been the staple of the Burberry brand ever since. In the 1920’s the Burberry
introduced to the brand. From 1856 to 1955 Burberry was an independent comp
it was taken over by Great Universal Stores. The company flourished and in 200
initially introduced to the London Stock Exchange.
C. Objective
The purpose of brand audit is to utilize the select evaluative tools learned
the course to analyze Burberry’s industry presence in comparison to its co
The goal is to uncover the strengths, weaknesses, opportunities and threa
provide suggestions to increase the brand’s market position.
D. Industry Analysis
Product Market Analysis
Burberry is a leading luxury brand in the world market. Due to it’s wide product
Burberry is able to cater to a number of markets. Outerwear remains the core o
Burberry apparel business, from timeless iconic pieces to innovative contempor
Outerwear accounted for over half of their retail apparel sales during the year.
2006-2007 Burberry historically licensed the first full in-house global menswear
This first collection reported growth of 31 percent in menswear. Building childre
remains a key focus for the company. Childrenswear integrated into the global c
2010, with the division now located in the company London headquarters. Non-a
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remains the main growth of the company contributing 40 percent of retail and w
sales during the year. Large leather good are a high seller of the Burberry non-a
business, representing about 50 percent of revenues in its category. Men’s acce
amongst the strongest performing categories. Women’s shoes represent an imp
opportunity for Burberry reaching 7 percent of mainline sales in 2011. Boots, pe
particularly strongly (www.burberryplc.com).
In June 2010, Burberry launched its first cosmetics line, Burberry Beauty. B
focus of attention on natural, effortless beauty. Burberry Beauty first introduced
format through a limited number of wholesale partners globally and to custome
burberry.com. Burberry Beauty supported by Burberry advertisement campaign
shows, experienced a strong early response from consumers and press as it app
first year anniversary. Burberry has three global licensing agreements with frag
timepieces, and eyewear (www.burberryplc.com).
The Burberry store is a luxury brand with a distinctive British sensibility, s
international recognition and differentiating brand values that resonate across
generational and duel-gender audiences. Since its founding in England in 1856,
has been known for quality, innovation and style (www.beverlycenter.com).
Financial Analysis
Burberry’s revenue has increased steadily over the past four years. In the
ending in March 2011, Burberry reported revenues of approximately $2,336.2 m
Monitor, 2011). In comparison to the previous fiscal year, this was a total increa
25%. The group's operating profit was $465.1 million in fiscal 2011, and the net
$324.3 million (Data Monitor, 2011). Burberry generates revenue through retail
including e-commerce), wholesale and licensing. For the 2010-2011 year, retail
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for approximately 64% of revenue, wholesale 29% and licensing 7% (Data Monit
The products that generated the most revenue in 2011 were non-apparel items
leather goods and the Burberry Body fragrance. Women and men apparel produ
in second and third place respectively. Children’s wear generated the least amo
revenue in 2011.
SWOT Analysis
Burberry has a goal of continuing to hold “great brands [that] project a pu
consistent experience across all channels in order to standout in today’s clutter
arena.” (Data Monitor, 2011) The “pure and consistent experience” is maintaine
authenticity and integrity that allows all consumers to trust the heritage brand
to shop their products. In addition to consistent and trustworthy products, Bur
on investing in their team culture by reinforcing company values. The company
the principle that the Burberry brand is “the touchstone against which all activi
measured” (Data Monitor, 2011).
In addition to upholding brand integrity, Burberry has focuses on operating und
quality standards through an ethical supply chain and other responsible operati
focuses on Corporate Responsibility. Since 1856, Burberry has operated under t
“to be a great brand you also need to be a great company” (Burberry plc, 2011)
they tackle “issues related to climate change; and efforts to inspire employees
ethical trade, environmental sustainability and community investment” (Burber
2011).
While the heritage and consistency is a strength within the company, it ha
be an issue in modern times. In the past decade, the company began “revitalizin
Burberry [by addressing] inconsistencies with the modern democratic luxury po
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remain” (Data Monitor, 2011). This was achieved by closing outlet stores that w
appropriately aligned with the brand” (Data Monitor, 2011). In the Spring/Summ
season, Burberry “completed the local-to-global product transition in Spain” wh
significant impact on cost to earnings. The company will continue with similar a
purify brand presence in the seasons ahead” (Data Monitor, 2011).
The success of the company can be successfully affected by extending the
relationship with the brand; specifically through new technologies. The compan
that digital technologies have the capabilities to improve the emotive brand exp
allow consumers to express their opinions, give them greater access and allow f
increased transparency consumers expect in the current market (Data Monitor,
With a luxury heritage brand such as Burberry, one of the biggest threats
increase in counterfeits. While any successful retailer is faced with this threat, i
especially high for companies like Burberry and its competitors Hermès and Lou
Recently, these companies won a legal decision in Canada that “awarded CA$ 2
damages to Louis Vuitton and Burberry in what is reported to be Canada's singl
trade mark and copyright counterfeit case” (Ireland & Ritson, 2011). Unfortuna
the market, specifically in the United States, counterfeits will continue to be an
issue as most consumers cannot afford to purchase the original luxury brands.
Competitors
Two competitors to Burberry are Emporio Armani and Dolce & Gabbana. W
asked, the general consensus is that Dolce & Gabanna is catered more towards
handbags. Burberry targets unisex outerwear such as scarfs and trench coats.
seems to be geared more towards Mens clothing and colognes. All three of thes
have similar product line divisions, but the most commonly known were pointed
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E. Brand Inventory
Target Market
The brand maintains a broad appeal across dual gender audience of ages from 1
55 and older, however Burberry’s primary target market consists of women in th
thirties to early sixties. These women are financially stable, in the workplace, ne
or have families. They choose Burberry because they want to be on the leading
fashion, but don’t necessarily have time to spend searching. Burberry stays true
by putting a modern flair on traditional fashions, “juxtaposing young, modern fa
tradition and history is what I do at Burberry.” (Christopher Bailey, nymag.com)
lifestyle of the typical Burberry customer varies greatly. The brand is sold in tw
countries and has an online worldwide retail store front as well. By being so acc
brand has allowed itself to be worn by people from all walks of life, religion, and
Although the customers differ greatly they all have one thing in mind and that i
timeless fashion. Burberry’s target customer’s income range is from $75,000 an
Affluent buyers may have one or two pieces that they invest in from Burberry, w
income level customers where Burberry for everyday wear.
Marketing Program
Burberry LLC, has been focusing their efforts on more innovative marketin
techniques and have thus far been very successful. They have implemented a ne
website that is available in six languages and forty-five countries. According to
“The site, known as Burberry World, is the ultimate expression of the Burberry
allowing customers globally – in many cases for the first time – to connect with a
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aspects, from heritage, to music and video, to the full product offer.” (Burberry
addition to a new website the company has also expanded their social media pr
having Facebook, Twitter, Instagram, and Youtube campaigns. Their twitter ac
country specific in order to better target customers in various global locations.
have implemented the use of apps such as Instagram to show photos from ad ca
fashion shows. A unique aspect to the Burberry social media drive is the develo
their own social media website ArtoftheTrench.com. According to Burberry PLC
Group’s own social media site, artofthetrench.com, continued to inspire people
world and across generations to share their experiences of the iconic trench coa
of the year, the site had received more than 11 million page views since its laun
November 2009.” (BurberryPLC.com) Burberry also markets different lines in or
reach multiple price points. The hope is to attract customers to their lower price
order to have them continue to shop Burberry as they grow financially. Also the
buy multiple pieces at the lower price points and match with one or two items fr
higher price points.
Brand Architecture
Aside from clothing and accessories for men, women and children; Burberr
products include timepieces, eyewear, fragrances, handbags, shoes, umbrellas,
scarves beauty items and home gifts. Burberry operates under four different lab
Prorsum, Burberry London, Burberry Brit, and Burberry Sport for both men and
number of labels is relatively low in comparison to other established, lifestyle b
Fragrances, beauty items and home gifts are not housed under specific labels.
Burberry Prorsum
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Burberry Prorsum is the anchor and power brand within Burberry’s brand p
is the most exclusive and expensive of the all brands. Some of the womenswear
include the dresses, skirts, blouses, and the infamous trench coat. Menswear pr
include eveningwear. This is the only brand in the portfolio to offer handbags/m
accessories and shoes for both men and women. Due to the higher price and run
the Prorsum label is the face of the entire Burberry brand. Prorsum embodies th
both the consumer and company. This label also accounts for the most revenue
portfolio.
Burberry London
While Burberry Prorsum is the power brand, Burberry London is the second
successful label. The success can be attributed to the product mix similarity bet
labels. While the products are similar, the fabrics and silhouettes are slightly di
Prorsum is the runway label, London offers more classic, neutral items. This diff
helps reduce consumer confusion between the labels and allows for both to attr
consumer through different aspects.
Burberry Brit
The Brit label offers more casual, everyday products that are tailored towa
younger target demographic. As a result of the more casual product mix, this br
less popular compared than Prorsum and London. As Burberry strives to further
lifestyle status, the more casual Brit label is necessary. However, the same mar
techniques used for Prorsum and London are not effective for this line. To revita
brand, different marketing strategies (or outlets) should be employed. The new
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should be consistent with the affluent, luxury values of the consumer but focus
younger consumers
Burberry Sport
Burberry Sport is by far the least successful in the portfolio as indicated b
product mix. While Burberry is undoubtedly a lifestyle brand, sportswear is not
associated with luxury brands. The small product mix also implies that the comp
value this label as much as the others. Therefore, consumers feel the same way
large issue with this label is the lack of the infamous trench coat. Practically, it
within an active wear line, but it also dramatically cuts down on consumer inter
Burberry’s consumers enjoy the feeling of exclusivity, and buying general athle
that lacks the easily identifiable Burberry trademarks is a huge drawback. One w
can be revitalized is by only offering clothing for sports attached with the afflue
community such as equestrian and lacrosse instead of the general athletic gear
wears.
Brand Personality, Elements, and Mantra
Although Burberry has a large target market and four labels, it does not ha
multiple personalities. Having multiple brand personalities can confuse the cons
brand has a distinct image that keeps it in good standing with wealthy consume
personalities could make the brand fall from their luxury standing. Burberry is s
and classic across all brand extensions and products. The brand is exciting beca
always in style and continues to update products to fit with the current market.
always stays true to the classic look opposed to the more outrageous and fleeti
general image is that Burberry is reliable and is known for quality products. Con
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would never describe Burberry as rugged; it is always upper class and sophistic
elements that stay consistent within Burberry are the Equestrian Knight “Prorsu
the Burberry check fabric, and the classic trenchcoat. According to the company
is defined by:Britishness, Authentic outerwear heritage, Historic icons: the tren
trademark check and Prorsum knight logo, Democratic luxury positioning, Innov
intuition” (Burberryplc.com)
Competitor Analysis
As previously mentioned in The Giorgio Armani company owned and run by
founder designer Giorgio Armani has earned the much hallowed space in the fas
through its superior design, relevant themes and trends appealing to the curren
customers and by maintaining the aura of a real luxury brand. Dolce&Gabbana i
luxury, authentic and unconventional. A style that expresses new forms of elega
presenting itself as a modern classicism, based on superior sartorial content an
creativity.The strong identity of the Dolce&Gabbana brand has evolved over the
without ever forgetting its roots. An unmistakable style, which, season after sea
strong innovation with the Mediterranean flavour of its origins. A brand whose e
in its contrasting features. Burberry aims to maintain the integrity and vitality o
while continuing to develop a business which remains relevant to ever-changing
consumer tastes. It uses a five-pronged approach strategy; namely “Leveraging
franchise”; “Intensifying the non-apparel development”; “Accelerating retail-le
“Investing in under-penetrated markets”; and “Pursuing operational excellence
parity and points of difference can be seen in the table below:
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