Burberry Case Study

1892 words 8 pages
Rose Marie Bravo, CEO for Burberry from 1997 until now (2003). Changed company from “heavily reliant on licensing and distribution ”(1997) to “leading luxury brand”(2003)
Revenue increase: £225 million in 2000 almost £600 million in 2003. She has been able to successfully steer the company through an initial public offering of 22.5% in 2002.
History: Founded in 1856 by 21 year old Thomas Burberry, who opened a draper’s shop and soon invented gabardine, a waterproof and breathable fabric that was chosen to be official coat of British Army in World War I.
In 1920’s Burberry check pattern – a camel, black, red and white plaid design was introduced and it became registered trademark. Celebrities (Humphrey Bogart and
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Having previously won “Classic Design Collection of the Year” award, company also received “Contemporary Design Collection of the Year” award and became one of very few luxury to be considered both classic and contemporary.
Bravo was named Time magazine’s Fashion CEO of the year in 2002, for two years topped the list of Wall Street Journal Europe’s Annual Women in Business awards and was honoured by the Council of Fashion Designers of America in 2003.
Bravo believed over next 5 years, company had to be taken to the next level. Issues:
(1) Launch Burberry Brith, perfume with the check design for woman in her 30s, English and charismatic (hoped for similar impact as Chanel N5)
(2) developing childrenswear line
(3) Expand footwear and Thomas Burberry brand
(4) Burberry achieved status among youth, hip-hop musicians but there was concern of alienating core customers. (5) Role of the Check – about 60% of apparel sales always featured Burberry check on them; in accessories 60-70% used checks. Estimately 25% of all revenues were derived from prominent check products. Bravo wanted to minimize the use of check, using “check under cover” philosophy and at the same time understood some customers bought Burberry specifically for the check. (6) Competition – Burberry as wedged between lifestyle represented by Ralph Lauren and fashion, represented by Gucci and had to compete with both lifestyle and fashion brands. Also, as Eugenia Ulasewicz,


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