Burberry Case Study

ID: 113021220                                        Burberry Case 

1. Burberrys market position is described as an accessible luxury brand as well as a functional brand offering a wide range of products.  In the apparel sector, Burberry is positioned in-between Polo and Armani. In the accessories sector, they are positioned in-between Coach and Gucci.

The Polo brand produces both mid ranged and luxury products, mostly apparel. It is thought of by consumers as being a lower level luxury brand ranked below brands such as Burberry or Armani but above Banana Republic. Polo’s sales made up 9% of the apparel market share in 2001, three times more than Burberry. Polo’s apparel prices are lower than that of Burberry and Polo frequently has promotions making it more accessible. I believe both brands have fairly good reputation values, being known for high quality products, but I believe Burberry has a much higher symbolic value. For example, customers would feel more elite if wearing a Burberry jacket over a Polo one. Armani is an extremely high priced and prestigious luxury brand producing mostly apparel. Unlike Burberry, Armani isn’t an accessible luxury brand but instead wants to be rarer and worn only by those at the top of the social latter.. Coach is a lower level luxury brand most known for purses and other leather accessories and who has a lower price tag compared to many other luxury brands. Although not as luxurious as Burberry, they did have an estimated market share by sales or 6%, 2% higher than Burberry. Coach accessories while just as functional as Burberry accessories, purses hold items, coach is much more common and not as aspirational.  On the other end of the luxury accessory spectrum lies Gucci. Gucci produces accessories that are even higher in price than Burberry yet had a higher estimated market share than even Coach. Gucci accessories have one of the highest reputations out of any of the accessory brands known for being the best quality as well as being unique and fashion forward. I believe Burberrys market position is sustainable and defendable over the long term.  Burberry position as accessible luxury as well as functional is a real competitive advantage. Offering classic pieces that will last for years, expands their customer base beyond the typical luxury high class customer. Burberry pieces are considered an investment and if someone is going to buy a coat regardless might as well pay a higher price tag for one that is not only going to work well but remain in style for years to come. Some items are also more affordable than others further expanding the potential of more customers. In addition, they also offer fashion oriented pieces and the Prorsum sector that will continue to attract high end or younger fashion savvy customers searching for the latest and greatest each seasons regardless of the price tag. Burberry also has a wide scope offering menswear, womenswear, and accessories. Few other brands reach the range of customers Burberry can.

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