Bur Berry 2

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HISTORYFounded 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 peoples 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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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.

BURBERRYSBRAND


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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 companys actions.


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BURBERRYS

ORGANIZATIONThe 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 theAnnual General Meeting.


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The Company communicates with its investors frequently andregularly. The Board is kept abreast of the views of major

shareholders by briefings. The Companys non-executive

directors are available to meet with any of the Companys major

Shareholders to discuss iusses of importance to them should ameeting 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 hasadopted 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 theyre at the heart of things,

not at the periphery.


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CASE STUDY

IkeaIkea is a family store that offers many shopping opportunities andpersonalizes 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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BURBERRYS

QUALITYBurberry 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 adventurerswho pioneered aviation and arctic exploration.

Burberrys 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 RoyalWarrants 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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CASE STUDY

Caferoma

Caferoma is a famous brand producing coffee. The main offices

are in Turin.

It is top quality but its main problem is price. In fact it is more

expensive than other brands in the supermarket.


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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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BURBERRYS

ADVERTISINGThe main kind of Burberrys 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 thatindividual 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 conversionsare 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 ofBurberrysadvertising on line


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CASE STUDY

NikeThe three factors which have led to the great growth of Nikesince the early 1980s are: endorsement, product design andadvertising. In fact Nike produced advertising with athleticsfeaturing, like Carl Lewis on the track, Ronaldo and the Braziliannational football team, etc.Mr. Knight became successful because he is original, daring andconsistent in his advertising campaigns. Original because heinvented a new approach to advertising, daring because he use

different methods and athletes, and consistent because he stick tohis idea.There is also the long relationship with the agency Wieden andKennedy which is one of the worlds 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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BURBERRYS

COMPETITIONIn competition with Burberry there are a lot of companies like

Coach or Gucci.

But in the three years since Burberrys 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 inE

urope

In Asia many consumers prefer to buy European made goods

although they are more expensive, because they think they arebetter.

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 Nokiaand 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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BURBERRYS

ETHICSThe 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 customers 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 Sitedirectly to anyone who we know to be under the age of 18.


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CASE STUDY

No hiding place for theirresponsible business

The issue is now moving towards social conditions, workingconditions 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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Pacillo Francesca

Peretti Pamela

A.a. 2005/2006

Documents

Bur Berry 2