Burberry in 2014 Case Solution

Answer: 01

In 2006, Angela Ahrendts was elected as the CEO of Burberry. During this period, the company lost its uniqueness and central point in its product offering. She wanted to develop the strategy of innovation and centralized the design around Burberry core heritage product outwears. Moreover, she focuses on the following five strategies which are; (1) changing to the millennial generation (2) adopting the digital technological revolution, (3) modifying the production process and the structure of the organization design, (4) Strategic recruitment and (5) Brand re positioning. Moreover, the primary objective of Angela was to connect the history of the Burberry with the fashion conscious millennial generation. Meanwhile, the company implemented the Atlas program to increase the efficiency of the supply chain activities and also to improve the office system in order(or intending to) to generate more sales as well as to enhance the movement of the store merchandise. On the other hand, she focused on the strategy of maintaining a relationship with the customers and internal team members, which will help the company to improve its market position in the market.

Moreover, she also bought back all the licenses from other businesses that use the Burberry trade market. It is the most important thing that she needed to centralize Burberry into one company or in one brand.  Furthermore, in order to improve the sales of the company Ahrendts took the decision to offer the trench court to the market with unique style and innovative design which attract the young customers. As a result, the company increased its sales by 10% in one year and also improved the efficiency of the brand image. In addition to this, the company decided to invest in the digital routes. Burberry took advantage over its competitors, Louis Vuitton, and Prada, to communicate with the future customers. According to Angela Ahrendts, the market segmentation of the young generation is ignored by the competitors, therefore it is the right time for the company to target the new generation or increase the sales of the enterprise.

Angela Ahrendts also focused on the AIDA model, which includes; Attention, Interest, Desire, and Action. At the stage of attention and interest, the company fulfilled the demand of customers by providing awareness about the product and creating value for the customers. At the stage of desire, the company established Burberry Prorsum to become more like fashion design brand that merely serves to the mass media. The company also started the social media campaign and events to promote the brand in the market. In the last stage, the company limited its quantities and served its products to the well-off customer profile. The price of presuming ranged from 300 pounds to 10000 pounds. Under the partnership, the company earned a profit of 740 million pounds in 2006 and 2 billion pounds in 2013. On the other hand, the operating profit of the company also increased from 170 million pounds to 430 million pounds in 2013. The AIDA model below shows the actions of the Burberry group at each stage.

 Answer: 02

The strategies of Angela Ahrendts play a significant role in the development of the brand image of the enterprise. She made these plans to improve the market position of the business. The following five strategies (1) changing to the millennial generation (2) adopting the digital technological revolution, (3) improving the production process and the structure of the organization design, (4) Strategic recruitment and (5) Brand repositioning play a significant role in the establishment of the brand image. The company used these strategies for maximizing its profitability and sales ratio. In addition to this, the company used these strategies for maximizing the retention of its materials..................

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