Brand & Corporate Culture: The Burberry Example

/Founder & CEO of Vivaldi/

Erich Joachimsthaler, Ph.D.

Berlin / October 5th, 2016

BRAND & CORPORATE CULTURE:THE BURBERRY EXAMPLE

BURBERRY IN 2006 WAS OVEREXPOSED

2

BURBERRY STANDS FOR TRADITION AND BRITISH HERITAGE

3

•Over 150+ heritage

•Trench coat

•Performance 8% versus Luxury

Sector of 14%

•Sub-scale (LVMH is 12 times

larger)

CAN YOU BRAND CULTURE?

4

“We’re British. They’re not. How do we exploit that heritage?”Angela Ahrendts /CEO - Burberry/

THE BRAND STRATEGY (PART 1 OF STRATEGIC PLAN)

5SOURCE: HELIXA 2013

FOCUS ON MILLENNIALS (PART 2 OF STRATEGIC PLAN)

6

“We didn’t found the company,Thomas Burberry did—at the age of 21. He was young. He was innovative. … His spirit lives on”Angela Ahrendts /CEO - Burberry/

“I grew up in a physical world, and I speak English. The next generation is growing up in a digital world, and they speak social.”

Angela Ahrendts /CEO - Burberry/

7

TECHNOLOGY (PART 3 OF STRATEGIC PLAN)

8

“We want to be the first company that’s fully digital”


HUNKER DOWN OR OPEN UP?

9

“The experience would be for the customers to have total access to Burberry across any device, anywhere, anytime.”Angela Ahrendts /CEO - Burberry/

BECOMING A DIGITALLY CONNECTED ENTERPRISE

10

TWITTERBurberry made Twitter a central part of their plan early on. Burberry had its first “Tweet-Walk” in September 2011, tweeting images of models just before they hit the runway. They also were the first to utilize Twitter’s “buy now” button

FACEBOOKThe Brand launched its site in 2009, before many other luxury brands ever entered social media. They immediately started using the site for exclusive activities - such as giving away perfume samples prior to launch.

SAPThey co-developed an app with SAP to make customer and product data available to all sales associates, seamlessly integrating the sales experience.

SALESFORCE.COMThey integrated Salesforce in multiple ways, including a capability to track social media buzz

Sketch created by Salesforce.com CEO Marc Benioff on a napkin at a 2006

meeting with Angela Ahrendts in NYC, mapping out the customer-centric

technology ecosystem of “Burberry World”

SOURCE: HELIXA 2013

CHANGING PROCESSES

11

“I needed (the CIO) to move from the back of the bus, where IT traditionally sits, to the front of the bus”Angela Ahrendts /CEO - Burberry/

THREE NEW FUNCTIONS:

•Social Media Department

•Mobile Department

• Insights & Analytics Department

NEW REPORTING RELATIONSHIPS:

•Marketing, IT, and Creative Media

report under one P&L

“It’s not just to create a great brand, but a great company.”


• Monthly webcasts from the

leadership for the workforce

• Streaming of all conference

appearances to all employees

• Weekly internal communication

videos

• Previews of ads to employees

before anyone else sees them.

BUILDING THE CULTURE

EXECUTING OVER TIME

13

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Launch “Art of the Trench”

digital campaign &

site

Launch of Burberry

Facebook page

Livestream of Burberry fashion

show

Instagramannounces

Instagram for video

Burberry posts video during Instagram

announcement

Twitter launches

“Buy now” button in

July

Burberry incorporates

“Buy now” button on

their Twitter profile in

September –as one of the first brands

to do so

Launch “Burberry Acoustic”

Burberry “Tweetwalk”

2016

Announce “See Now, Buy Now” Revolution

Launch“See Now, Buy Now”

Launch Apple TV Channel

Launch SnapchatDiscover Channel

LaunchBurberry “Kisses”

Launch of Burberry “Bespoke”

online

Re-opening of London Flagship

Store

Periscope Livestreamof Fashion

Show

App partnership

with WeChatAngela Ahrendts

joins as CEO

Announcement of Strategic Plan

Instagramlaunches

CONNECTING THE CUSTOMER WITH THE BRAND

14

“We didn’t do Burberry Bespoke to make money. We didn’t do Burberry Acoustic to make money. We didn’t do Art of the Trench, our social media platform to make money. We did all of that to have the customer engage with the brand.”

/C. Bailey/

SOURCE: HELIXA 2013

130

Million

App

downloads

13 Million

registered

developers

+2 Million

developers

in 2015

alone

BNP PARIBAS DIGITAL COMPETITIVE MAP: JANUARY 2016

SOCIAL MEDIA PERFORMANCE

16

Burberry Ralph Lauren Hugo Boss

17,131,788 8,592,160 7,718,815

7,700,000 4,500,000 1,500,000

7,070,000 1,890,000 620,000

271,201 33,721 47,993

32,172,989 15,015,881 9,886,808

REVENUES AND GROWTH

17

Burberry Revenue

In Million GBP

Global luxury

industry revenues in

Million Euros

CAGR: +5.06%

CAGR: +12.1%

2006 2007 2008 2009 2010 2011 2012 2013 2014 20152005

147000159000

170000 167000

153000

173000

192000

212000218000

224000

253000

716 743850

995

12021280

1501

1857

1999

2330

2523

CHANGING HOW THE INDUSTRY WORKS = CHANGING CUSTOMER EXPECTATIONS

18

September 19, 2016

• Burberry presents its new collection called

September and makes it available in stores

and online same day

• Other fashion houses show Spring-Summer

2017 collections

Christopher Bailey Begins Burberry’s See-Now-Buy-Now Revolution

Burberry Aligns Runway and Retail Calendar in Game-Changing Shift

Burberry Aligns Runway and Retail Calendar in Game-Changing Shift

“We look back on this time as like the great industrial revolution because it is. Our lives are changing so dramatically.”

/Christopher Bailey/

HOW DOES TECHNOLOGY AFFECT CULTURAL TRANSFORMATION?

19

BURBERRYCULTURE

Customer Experience

Processes

Organization

Infrastructure

Business Model

Leadership

Capabilities

REVENUES AND GROWTH

20

21

0

20

40

60

80

100

0 20 40 60 80 100Linear Exponential

Intensity of Transformation

Cu

sto

me

r E

xp

ec

tati

on

sTransform

Meet

2006

2016

BURBERRY STOCK PERFORMANCE RELATIVE TO FTSE

22

Thank you!

@ejoachimsthaler

e j@ vivaldigroup .com

Erich Joachimsthaler, Ph.D./ Founder & CEO of Vivaldi /