Burberry must reposition its brand within the luxury market as it has been devalued by internal
business decisions such as opening factory outlets and providing significant discounts on some
items. Other designer brands such as Louis Vuitton and Gucci do not reduce or discount any of their
products whatsoever and are hence successful and highly desirable and sought after. However, in
Burberry’s case, their product range has decreased in desirability over the years as it has become
less exclusive and more accessible to everyone. Burberry has the means to close their factory outlets
and open new and revamped flagship stores in proximity of other luxury brands such as LV and
Gucci. This will in turn reinstate the luxury feel and perception of Burberry amongst consumers and
create a sense of exclusiveness. In addition, as Burberry has cut its cost it should create new and
trendy clothing, which is highly sought after in the market, whilst making limited quantities of each
product to increase demand for the brand and create a more exclusive experience. With the release
of limited quantities, it creates a scarce environment around the brand and sense of exclusiveness as
not everybody can purchase their items.
Furthermore, Burberry can propel their brand even further by having endorsements with high profile
celebrities and social media influencers which are regarded highly in the fashion industry. The
creation of new and trendy styles will work in tandem with endorsements from celebrities as they
have a wide reach to many potential consumers and influence many people to want to look like
them. Such endorsements will serve as a platform to show off the brands new and trendy items and
create awareness amongst consumers. When influencers and celebrities are wearing a brand
clothing it gains a lot of traction and talk about that brand, and many people become interested as
they believe that they must have that item as well. In addition, when famous people wear a product
or designer brand, the image of that brand becomes regarded highly and many people tend to want
to purchase it or aspire to have it. Similarly, Burberry can also release strictly limited collaborations
with other brands like LV and Supreme have done or Gucci and the North Face. This will in turn
create more awareness of the brand and increase demand, whilst alleviating the brands prior
misconceptions.
The first action plan for Burberry is to eliminate negative consumer perceptions about the brand in
relation to its lack of designer feel and exclusivity. The goal aimed for is ensuring Burberry is still
viewed as a designer brand with superior quality and has an exclusive feel. Burberry must redirect
their focus to alleviate the brand name, and the first step is by removing their factory outlets
completely to stop the over circulation and supply of their products as it devalues the brand. The
elasticity of supply and demand for designer items is relatively inelastic as consumers strive to
purchase such items for various purposes such as, exclusivity, quality, and status. New stores to
open should be located in the heart of central cities, such as George street in Sydney, Fifth avenue in
New York and Beverly Hills Rodeo Drive. For the opening of the new flagship stores, events should
be held to commemorate the brand and bring a crowd to gain publicity. within the next year
Burberry should try to achieve at least 1 flagship store in several states across the markets where
they excel, such as Asia, the United states and Europe.
Once Burberry has curated a list of people in important markets who will effectively expose their
brand, they will reach out. Offering a partnership with free Burberry clothes accompanied with
remuneration. These ambassadors should be held onto for a year, to consolidate the link between
the figure and Burberry. Throughout this period, Burberry will send new and exclusive products for
the ambassador to wear and post on social media.
