•Hitesh Punjani for MIMR…

HISTORY
Founded in 1856 by Thomas Burberry, he began his distinguished
retail career when he was only 21. After expanding the business
and taking on his two sons, he built his own mills to produce his
specialized piece goods and clothing. After developing a sturdy,
waterproof fabric called gabardine in 1879, he created the first
Burberry raincoat at the turn of the century. It became regulation
style in 1914, during the First World War, due to its functional D-
rings, epaulettes and straps, and was therefore named The Trench
Coat. The famous Burberry signature check pattern, done in camel,
black, and red, was first introduced in 1924 as a lining for
rainwear.

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 BRANDS
- A brand is a symbol that distinguishes a product made by one
firm from the others. A label, a logo is the distinguishing trade
mark of a brand.
- Quality, safety, design, status symbol, fashion is normally
associated with brands in people’s minds.
- A classic brand is a brand that belongs to the past, to tradition, a
brand with a history.
- A luxury brand is an expensive brand, an elite brand.

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 BURBERRY’S BRAND
From a simple raincoat to a global brand, Burberry has become
one of the world's most successful luxury brands today for men,
women, and children, encompassing not only outerwear, but
clothing, fragrances, accessories and items for the home. Today
Burberry has become an icon. It is a brand with a distinctive
British sensibility, strong international recognition and
differentiating brand values that resonate across a multi-
generational and dual-gender audience.

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 ORGANIZATION

Limited company is the useful form of business for the most

important company.
Limited company is a form of business where the capital is
divided into shares. The shareholders of the company have a
limited liability to the company’s actions.

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 BURBERRY’S
ORGANIZATION
The board consists of a Chairman, a Chief Executive plus two
other executive directors and four non-executive directors. The
Board supports the principles of corporate governance advocated
by the Revised Combined Code published in July 2003. Burberry
is a Limited Company. The Company recognizes the importance
of communicating with its Shareholders and does its through its
Annual and Interim Reports, quarterly trading updates and at the
Annual General Meeting.

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The Company communicates with its investors frequently and
regularly. The Board is kept abreast of the views of major
shareholders by briefings. The Company’s non-executive
directors are available to meet with any of the Company’s major
Shareholders to discuss iusses of importance to them should a
meeting be requested.

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 CASE STUDY
Dirty business, bright ideas
SOL is a cleaning and garbage disposal company in Helsinki. In
1995 Lisa Joronen transforms the traditional company into an
unique organization. SOL is a traditional company which has
adopted new methods. For example:
- she abolished the rules of conventional corporate life;
- workers can choose their hours and the optimal place to work;
- worker training is important, etc…

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 LEADERSHIP
Leaders are people who seized opportunity and take risks.
Leadership then seems to be a matter of personality and
character.
Good leaders make people feel that they’re at the heart of things,
not at the periphery.

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 BURBERRY’S
LEADERSHIP
Burberry’s competitive strengths and attributes are as follows:
 distinctive luxury brand with international recognition and
broad appeal;
 unique history and positioning as the authentic British lifestyle
brand;
 highly successful merchandising and marketing strategy across
both apparel and accessories;
 diversified distribution channels and geographic profile;
 proven international management team; and
 strong business momentum with multiple growth opportunities.

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 CASE STUDY
Ikea
Ikea is a family store that offers many shopping opportunities and
personalizes the store with a photo of the store manager and a
woman to ask questions to. The secret of the success of this
company is that it makes well designed furniture at reasonable
prices.
Mr. Kamprand is the owner and the founder. He has a very
informal approach which also shows in the way he dresses. He
likes to talk to people at all levels of the company. He values the
choice of the right people to run his business.

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 QUALITY
Quality can be defined in many ways:
- reliability
- value for money: - cheap ( very low price and poor quality)
- expensive ( high price and good quality)
- a bargain ( fairly low price and good quality)
- durability
- authenticity
- function and design
- hand made versus mass produced

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 BURBERRY’S QUALITY
Burberry has been synonymous with quality, as defined by the
endurance, classicism and functionality that characterized its
history as the outfitter of choice for the explorers and adventurers
who pioneered aviation and arctic exploration.
Burberry’s development of the trench coat at the turn of the last
century rewrote the history of outerwear, when an article of
clothing that was designed as practical military gear became an
enduring icon of fashion and earned Burberry two Royal
Warrants as weatherproofers to both Her Majesty the Queen and
the Prince of Wales.

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 CASE STUDY
Miele

Miele is a German manufacturer of high quality domestic

appliances, commercial equipment and fitted kitchens.
Components made locally increase prices but at the same time
ensure quality and durability.
This policy results in customer loyalty.

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 ADVERTISING
Advertising is very important for the companies. Generally
companies have four main kind of ad that are television, new
papers, advertising poster and internet.
“Now there is the enthusiasm for ‘digital signage’. It show a
constantly rotating series of advertisements, mixed with news
and entertainment. The screens are placed in busy parts of shops,
and the advertisements they show can be updated at will via
satellite or internet links.” (The Economist, March 2006)

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 BURBERRY’S
ADVERTISING
The main kind of Burberry’s advertising is on line and it is
contextual-based advertising which is when an ad is placed on a
Web page, in real time, based on the specific content of that
individual Web page.
Contextual-based advertising is expected to grow rapidly as more
publishers and advertisers adopt this performance based
advertising option over traditional banners. Those in the industry
advocate cost per click because the price is low and conversions
are high.

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Advantages:
• Performance based advertising;
• Text and image ads supported;
• Placement is automated and more relevant to users than run-of-
site wide placement;
• Ads are placed on a wide range of sites not just search engines;
• Cost effective for international banner and text ad campaigns.
Disadvantages:
• Ads are only displayed if relevant and popular, limiting
branding opportunities;
• Still in its early days, some inventory is limited.

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Examples of Burberry’s advertising on
line
 CASE STUDY
Nike
The three factors which have led to the great growth of Nike
since the early 1980s are: endorsement, product design and
advertising. In fact Nike produced advertising with athletics
featuring, like Carl Lewis on the track, Ronaldo and the Brazilian
national football team, etc.
Mr. Knight became successful because he is original, daring and
consistent in his advertising campaigns. Original because he
invented a new approach to advertising, daring because he use
different methods and athletes, and consistent because he stick to
his idea.
There is also the long relationship with the agency Wieden and
Kennedy which is one of the world’s best ad agencies.

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 COMPETITION

Competition is the act of competing, as for profit or a prize. It is

the rivalry between two or more businesses striving for the same
customer or market. It is also a test of skill or ability.
The managed competition is a theory of health care delivery
services that holds that the quality and efficiency of such services
would improve if, in a market controlled by the federal
government, independent groups had to compete for health care
consumers.

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 BURBERRY’S
COMPETITION
In competition with Burberry there are a lot of companies like
Coach or Gucci.
But in the three years since Burberry’s floatation on the London
Stock Exchange in 2002, the Company has enjoyed exceptional
growth, with revenues growing over 40% and operating profits
increasing in excess of 80%. Looking to the future, Burberry is
committed to build upon this momentum in order to continue to
generate shareholder value over the long term.

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 CASE STUDY
Made in Europe

In Asia many consumers prefer to buy European made goods

although they are more expensive, because they think they are
better.
On the other hand many European companies move their
production to Asia because it is cheaper.
Customers are very attentive to the origin of products. Luxury
brand in particular must be very careful to preserve their image.

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 CASE STUDY
Competition between Nokia and
Samsung

Nokia today has a large share of the mobile phone market, but it
is being threatened by its competitor Samsung.
The comparison between Nokia and Samsung concerns substance
as well as design.
Nokia has concentrated its efforts on design, forgetting that
function is more important.
Design includes size. Samsung has exploited technology and
produced increasingly small handsets.
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 ETHICS

Recently the problem has become more serious and BSR

(Business for Social Responsibility) is facing an increasing
demand for assistant from top multinationals. Even companies
that had not been touched by scandal are becoming the object of
attention, and non financial reports are focusing on social and
ethical issues as well as on the environment. The role of
governments is crucial.

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 BURBERRY’S ETHICS
The Company has established a Secure Shopping Guarantee for
every transaction that the customer makes.
It does not share with others any personal information except
with customer’s consent.
Burberry will cover the liability of purchases made through its
web site only if the unauthorized use of credit card resulted
through no fault.
It does not sell or ship any items ordered through the Web Site
directly to anyone who we know to be under the age of 18.

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 CASE STUDY
No hiding place for the
irresponsible business
The issue is now moving towards social conditions, working
conditions in companies producing equipment for computers.
In the financial world loans have been given to projects which
were not environmentally and socially sound. In Companies have
to observe a code otherwise they are subject to inquest.
However some sectors like hotels and leisure, software and
computer services are very difficult to control. Many cases
company unethical behaviour is punished by consumers.

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