Chapter 11: Developing and Managing Products

  Due to the fact that Burberry is a high end luxury fashion company their products are usually made once and kept like that for a while. What i mean by this is that if Burberry creates a dress that is for the runway shows which will ultimately be sold in stores they will keep it that way. The only thing changed by them would be the size. Burberry comes out with new lines throughout the year showing the customer the latest hot items. Unlike most companies who are constantly changing specs and details of products, Burberry tries to stick to its original state. What Burberry does do is create a product development process. They take all the steps necessary from new product strategy to actually having that new product out. Burberry has employees to take over these jobs.

  Burberry does not deal with distributors a lot because they are not so big in wholesale. The same goes with vendors, most burberry products are sold in Burberry stores or even a department store or two. Burberrys competition is usually on the same pace as them when it comes to creating new products. To become ahead of the game Burberrys products developers must think of new ideas quick so they can reach out to customers quicker. With fashion, once a great product comes out most of the other companies copy this product but put their own spin on it. An example of this is the trench coat. Burberry was one of the first companies in the world to introduce the trench coat. Today you can see that all of their competitors sell this product.  Burberry is very good at the step of Commercialization.
This is where they have an advantage over their competitors. Burberry markets their product in a great way that can reach the potential customer in a better way then other companies. EX: social media

Saint Laurent Trench Coat

Burberry Trench Coat

Burberry innovates in a lot of ways. Whether its showing a new line to important people in the fashion world or using different ways of digital marketing. Burberrry does not have any competitors that can potentially bring them out of business and this is a very good thing. For example the DVR set has been basically extinct due to that fact of DVD's and netflix.

Chapter 18: Social Media and Marketing

  Burberry is emerging as one of the number one high fashion companies in the world that use social media. Their last CEO Angela Ahrendts was the biggest motivator for this change. A lot of people would think it would be hard for the 156 year old company to be so interactive and up to date with the current fashion world but they defied odds and did so. Burberry won the digital innovation award which celebrates the leaders in online initiatives and communications in fashion. Not only have they won awards for their success in social media and online marketing, their profits have rose as well. Burberry has millions of fans on their Facebook site and this is going to continue to grow. On their Facebook timeline it shows pictures of new Burberry products coming out. The same goes for twitter, their main account holds 2.3 million followers. Most of their tweets feature pictures of fashion shows or new products coming out.

  Burberry also markets to the people who like to view videos of products. Burberry has a separate page directed towards this where they show videos of fashion shows and products.  Not to mention Burberry also has a google+ account with 1.9 million followers as well. One of the most popular products that Burberry has is the famous Clutch. This product has been like 49,000 times on Facebook, and counting.

  Burberry also launches something called Burberry Acoustic . What this does is that it streams Britains favorite musicians songs and performances on to a site where everyone could enjoy it. Burberry also streams 3d online videos of their concerts all around the world. This is a very interactive way to show potential customers the newest clothing lines about to come out.  Burberry came out with something called BUrberry kisses. They collaborated with Google on this one. Burberry kisses shows a journey brought to life in which a person can send a "kiss" to someone across the world.  Below is the video showing it. Ever since burberry has been starting to engage in social media their E-Commerce has went up 50 percent in Europe and 30 percent in the U.S. This will only continue to grow as the company looks for every way to engage a great relationship with their followers and fans.

chapter 10- product concepts

 Burberry has many products that they produce to sell to the consumers. However, all of their products are consumer products and not industrial or business products. All of the stuff the company creates are intended to satisfy the customers needs and not bought to resell. usually Burberrys products are classifies as either a shopping product or a specialty product, depending on the availability of the actual product. today most burberry shoppers appear to be women so one of the best sellers that the company has is a tote bag with the Burberry stitching and logo on the front. This product sells for 895$ dollars at a retail or department store. Another best seller is the Burberry trench

Dutchess Kate Middleton wearing trench coat from Burberry

coat. This coat has elegance and style and many people wear it in london.







   Burberry often creates product lines to show their target markets so everyone could get a product that they desire. Burberry also creates different lines for different stores, depending on which country the store is located in. If Burberry sees that in china the Accessory market is growing they will create a separate line for the stores in China to boost customer relations and make their target market happy. Burberry is very successful at product modification. The company came so far from when they started just selling trench coats to the men in the army. As time went on Burberry wanted a piece of the fashion mania and decided to expand there product mix.

Granddaughter of Duke and Dutchesss of Devonshire

 By the 1990s Burberry was selling everything from coats, bags, perfumes, and even dresses. Burberry also uses Ads to relate to their target markets. These ads are successful because they feature the royal men or women in them. The people of london like this because its showing them that people in their city are of importance.  The burberry brand name has positioned itself to one of the top luxury brands in the world. With their elegance and modern sense of style they are one of the most successful clothing companies in the world today. Burberry has a high brand equity and people all around the world know of this company. Burberry is also a global brand. They have stores all over the world and 1/3rd of their earnings are obtained from outside its main home.

 Burberry is definitely familiar with Brand loyalty. If someone is going to spend a large sum of money on a product they are most likely going to come back. If this statement was not true Burberry wouldn't be in business. Usually people who buy their products are usually set to come back for some more.
Burberry has a trademark on their company and no one is allowed to use their famous check or copy their products. 2 years ago there was a case of trademark infringement against Burberry and they ended up receiving 100 million because people were copying the products they were selling. Burberry is looking out for this type of stuff so that they won't become a generic product name. Packaging is an important part to how a company does business. Depending on the product Burberry has a few different way of packaging their products. Burberry also gives Warranties on their products showing the customer that they have belief that they will enjoy the product.

chapter 17- personal selling and sales management

  Burberry uses personal selling a lot in their company. The sales person has to get a customer to buy a product that is very expensive in relating to other stores. The customer must have enough liking in the expensive product to be willing to part with his money and buy it. Burberrys salesman are very good at promoting and getting the customer to buy the product and eventually come back for more. If Burberrys sales people were not good at this they would not be a successful company, so they must be doing something right. Burberry cares about every single one of their customers and wants them to keep on coming back to the store. Burberry is not often involved with campaign management because they don't usually change prices for people and make it more attractive for customers. Burberry does not often have sales due to the fact that they want to keep a steady price so people will see their company means business.

Burberry sales women showing products

  Burberry has personal shoppers in their stores and this is a very good way of selling goods. A personal shopper/salesman is someone who would exclusively go with one customer and dress them and pick out what clothes they think would look good on the customer. This is a very personal experience that can lead to many success in the future.  Once a customer has a good experience with a personal shopper they would want to come back because they feel like someone actually cares about them and what they wear.

  Burberry doesn't give a sales role to any person they must have certain characteristics.

They must be very good at creating relationships with customers and lead by example so that the other sales people can look after them.

Burberry uses technology to promote their products and to bring people to the store to ultimately make a sale. Burberry is very in touch with the customer and what they would like to see. Unlike their competitors burberry is the leading brand in E- Busines.

Burberry E- business example