Question
We will have eight in-class discussions of Harvard Business School, Darden, and Ivey cases. These assignments provide the opportunity to analyze cases that are based on real-world business situations, make recommendations, and consider the implications of your decisions. In short, you will practice decision-making that is generalizable. All the students are expected to actively participate in the discussion, and to be ready to give your assessment when called upon.
You are required to turn in a total of two case write-ups (note: these are to be done individually, i.e., these are not group assignments). Cases are due at the beginning of lecture on the designated day for that case discussion, as indicated on the course schedule (at the end of this packet). Late cases will not be accepted.
I will provide you with a case analysis template (CAT) that you should use as the format for writing up your cases. You will need to highlight the relevant facts in the case, your assumptions, and your decisions on the various aspects of the communications program. Include an executive summary that communicates the essence of your analysis and recommendations. Your case write-up should be about 2 pages types single-spaced in length. The executive summary should be typed and not exceed ½ page single-spaced.
Make sure you make good use of the relevant data in the case. Be creative; make non-obvious inferences. Present specific, comprehensive, and practical plans. Make sure your paper is logically structured, clear, and concise. I will deduct points for poor writing (i.e., incorrect spelling, improper grammar or sentence structure, writing that is not concise, etc.). When you are on the job, your boss will make judgments about you based on your communication skills (among other things) – this is good practice.
Answer
Contents
Executive Summary
Burberry is a company that was founded in 1856 by Thomas Burberry. Since its formation, it has risen to become one of the leading brands in the fashion industry. In the case study “Burberry”, the author highlights a number of problems that have affected the company prior to the appointment of Rose Marie Bravo in the summer of 2003. When Bravo joined Burberry, her main goal was to transform the firm into a global giant in the fashion industry. The company had turned into a tired garment manufacturer. Rose Marie had a mission of transforming it into a luxury, lifestyle brand that would be stylish, aspirational, and brandish. The new chief executive has invested in strategies that have helped in revamping the fortunes of the company. The main aspects of the era of Rose Marie targeted the brand positioning in the market. Rose Marie changed the brand of the company from an outwear company to the luxury brand. Further recommendation for the company provided in this case study includes creating a luxury product line with slightly lowered prices to accommodate the young adults and attract more people from the middle class. The market positioning will allow the firm to tap into the young adults’ luxury markets who aspire for stylish and contemporary apparel but they do not have sufficient means to purchase such brands. Expanded segmentation will help expand the market opportunities for the firm.
The Problem (s)
Burberry is a company that was founded in 1856 by Thomas Burberry. Since its formation, it has risen to become one of the leading brands in the fashion industry. In the case study “Burberry”, the author highlights a number of problems that have affected the company prior to the appointment of Rose Marie Bravo in the summer of 2003. When Bravo joined Burberry, her main goal was to transform the firm into a global giant in the fashion industry. The company had turned into a tired garment manufacturer. Rose Marie had a mission of transforming it into a luxury, lifestyle brand that would be stylish, aspirational, and brandish. The firm had a problem of skills, knowledge, and experience among its staff members. Rose Marie was thus keen on bringing in a top management team that would help her in implementing her vision of transforming the fashion brand from an outwear manufacturer to a luxury brand. The new executive was thus interested in hiring people who had previously worked in stores, shops, and fitting rooms. The brand of the company had become worn out. Rose Marie understood the importance of having a good brand in the fashion market. The Chief Executive was also keen on changing the name, packaging, and the logo of the firm. The company name was thus changed from Burberry’s to Burberry and a new contemporary logo and packaging was introduced.
Situational Analysis
To assess the weaknesses and strengths of the company, a SWOT analysis of the company was conducted.
Strengths
The analysis revealed several strengths of the firm that are helpful in determining its position in the market. The analysis revealed that Burberry is an iconic fashion brand. The company had a long history in the fashion market thus making the Burberry brand to be synonymous with the British fashion industry. The company has had further expansion into other markets that include the Chinese market. The firm is known for producing garments that are of high quality and long-lasting. The company is also recognized for its customized services where shop assistants are provided with IPads that can be used to trace the history of a customer. The IPads are also helpful in establishing the state of the stock in the company. Customers can easily establish whether the item they are looking for is in stock or not. Another strength of the company is that it has a global footprint. The company has stores in over 50 countries with most of its revenue coming from the Asia Pacific region. The company has managed to receive royal warrant twice given by Queen Elizabeth II and Prince Charles. The association of the firm with the royal family has contributed to the creation of its big brand. The company has been in engagement with the community through the use of the social media. As a resulted, it has accumulated a lot of followers.
Weaknesses
The company uses premium range to price its products. The price of the products suggests the high quality of its apparels and clothing but the high price makes most of its products unaffordable to a huge population. Besides, most youth are unable to afford them despite them being the highest consumers of fashion brands. Burberry has invested in a limited line of products thus restricting its market capability. The company has specialized in luxury apparel, beauty products, and accessories. Lastly, the company is highly dependent on the Asian market. A significant part of its sales comes from the Asian market. It implies that a change in consumer taste or market policies in the area could to a significant loss of market for its products.
Analysis of Competition
The top competitors in the apparel industry for Burberry include Chanel, Christian Dior, Ralph Lauren, Gucci, Prada, Louis Vuitton, Versace, Hermes, and Coach. Burberry falls among the top ten global luxury goods players in the world. Among the luxury good players, Burberry ranks fourth according in market share by sales based on 2001 Merrill Lynch estimates. The position of other players is presented in the table below:
Source: Youngme Moon-Harvard Business Review
Target Market
The current target market for Burberry is the high end market who can afford the premium high price of its products. It targets middle-aged men and women from the upper class. The products of the firm are marketed as luxury items and the high price can only be afforded by a few customers. The company has branded itself by showing the quality of its products, style, as well as elegance. The company also displays the beautiful craftsmanship of its products. The company targets a market that appreciates smart and stylish classic style. As a result the company has a limited market compared to other brands that target both the middle-aged and young males and females. The highest consumers of fashion products are young adults. It is thus necessary for the firm to expand its market segment to accommodate the young adults. By expanding its market, it will tap into the high number of young adults who desire luxury brands but do not have the means. The firm could thus introduce a new line of apparel that is targeted at the young adults. The new line of clothing could focus strictly of fashion favored by the young adults but at a slightly reduced price compared to its premium products. The new line of clothes can be restricted to specific store in specific regions.
Communication Objectives
The current communicative objective of Burberry is the creation of awareness of the quality and benefits of its luxury products for the high end products. The firm has also opened new expanded its products to accommodate the youth. The current communication objective should be creating a memorable image for its products. The targeted market segment for the youth thrives on brands. Introducing the luxury brand for the young adults at a reduced price should be positioned through creation of an image that will attract them.
Message Strategy
The current message for the market segment outlines the luxury and the classic and iconic style of their brands. The message strategy only reverberates with the middle-aged segment. The current message strategy should aim at presenting the products as contemporary and stylish. Young adults prefer new styles as opposed to classic ones.
Creative Strategy
The message of the advertisement should present the sophistication of the clothes to portray the contemporary style that is preferred by the young adults. However, the advert should also incorporate some classic styles to retain the middle-aged market segment and attract more.
Media Strategy
Currently, the firm has focused on advertising on television and high end magazines. They should expand their media strategy to include the social media. The adverts should be placed on Facebook, Instagram, and YouTube among other media channels.
Budgeting
The budget allocated for the marketing communication program is sufficient. Advertising on social media sites is relatively cheap compared to other forms of advertising.
Research Strategy
The company is conducting surveys to establish the consumer tastes and preferences. The survey has established the need to expand the product line to accommodate the young adults. The survey has enabled the company to determine the gaps that need to be filled in the youth product line. The survey has also established the need to ower the prices to accommodate the young adults and the middle class