Company Analysis: Burberry
"The cachet of almost zero? the brand image had become old fashioned and the product the domain ?of middle aged, fashion conservative men?(2004). It was the successful positioning and segmentation of Burberry that kept it alive for over hundred and fifty years. However, Burberry's brand popularity started weakening from the 1960s due to the existence of less class conscious people living in the society that did not want to look or dress like the upper class. Nonetheless, after the tumultuous period of 1997 where annual profits decreased by 37 million pounds, Burberry's management did some hard thinking and got themselves a new Chief Executive Officer. The new CEO, American Rose Marie Bravo, recruited young blood in the company in the form of a new designer Roberto Menichetti, and together they gave Burberry a complete makeover, and within a couple of years Burberry was named as British classic design collection of the year in 1999, in its maiden visit to London Fashion Week. This was the period that took Burberry from going down and out to a complete turnaround, from plummeting sales and profits to steady increase and stability in the sales and profits.
The company also went through its initial public offering after this period, which was a success as it was oversubscribed. The company is now seen as a fashion and style symbol all over the globe, with keen from the high end customers, such as celebrities. Besides elegance and class the brand also portrays youthfulness in its products and has also become a popular symbol among the youth. Although, Bravo has long gone from the company but the company seems to be doing well from the perspective of sales as well as profits (GREAT BRITISH BRANDS: Burberry - Fashionable from the 1920s through to the 1960s, Burberry declined, 2002).
[...] Company Analysis: Burberry Abstract The paper analyses the company Burberry. It discusses its rich history and background of over 150 years. Moreover, the paper discusses how the company went from completely going down and out in the luxury goods industry to re- launching itself into one of the most prolific apparel and accessories brand of the 21st century. The paper also provides a detail SWOT analysis of the company. Furthermore, the paper also provides a detailed PEST analysis of the luxury goods industry in which the brand is positioned. [...]
[...] Conclusion Burberry has come a long way in its 150 years of history and class. From being down and out in 1999 to a complete re-launch of the brand. The company has witnessed harsh financial and market conditions, but is still strong and doing well as the world becomes a global village. The company has opened many new stores in the emerging markets of Asia and is doing quite well in attaining their consumers' attention. With growing profits the company looks a good prospect for more growth in the future. [...]
[...] The owner of the brand Burberry Great Universal Stores was pressurized to sell the brand and it went public in the early 2000s. Moreover, during that period, the advertising campaign that starred David Beckham, Prince William and Victoria Adams gave new life to otherwise forgotten brand, and the market saw a spectacular revival of the brand (Burberry earns independence 2000). The company recognized that the international market for luxury goods remained lucrative and profitable both from the product and placement point of view. [...]
[...] However, as the famous Burberry check loses its poise at the turn of the century. The company decided to switch designer from Menichetti to ex-Gucci designer, Christopher Bailey, who was asked to work towards redesigning the same old checkered design of Burberry, but reducing the checks so as to reduce the Chav Culture association of the brand, and link it more to the British society. Moreover, the company took its production line from Europe to China, which greatly reduced the cost of production resulting in higher profits for the company. [...]
[...] Moreover, the company also went public during the early parts of the 2000s which further excelled its financial position in the market. Despite the adverse economic conditions due to the recent financial turmoil, the luxury goods industry continued to experience growth. This is generally due to the GDP growth in the developing Asian markets. Moreover, the financial turmoil saw huge restructuring of the financial and banking system which enhanced the risk management with capital adequacy ratios going in the double digits for majority of the developing countries (Nick Mathiason, 2006). [...]