Supply Chain

Management in Fashion
Industry
Mid Module Assessment
Submitted by:
Romisha Priyadarshini
Tarun Patel
Tushar Tumsarkar
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Founded in 1856, Burberry today remains quintessentially British, with
outerwear at its core. Digital luxury positioning and the optimization
across innovative mediums of the trench coat, trademark check and
Equestrian Knight Device heritage icons, make the brand purer, more
compelling and more relevant globally, across genders and generations.

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 History
Burberry was founded in 1856 when 21-year-old Thomas
Burberry, a former draper's apprentice, opened his own store
in Basingstoke, Hampshire, England.
By 1870, the business had established itself by focusing on
the development of outdoors attire.
In 1880, Burberry invented gabardine, a hardwearing,
water-resistant yet breathable fabric, in which the yarn is
waterproofed before weaving. The Gabardine was patented
in 1888.
Burberry was the original name, but then the company
soon switched to using the name Burberrys, after many
customers from around the world began calling it Burberrys
of London. This name is still visible on many older Burberry
products.

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 Burberry Company
 Burberry Group has been consistently trying to improve its product range by introducing new
products and services. The main attempts will be made by company to attract customers for
luxury fashion clothing. Hence innovative ideas are applied to develop new product range.
 The six pillars of Burberry Group strategy are identified by Burberry which include four revenue
drivers such has communication, product, distribution and digital. The rest two are the enablers
which include inspiring people and achieving operational efficiency.
 Burberry Group is also trying to improve its communication to the customers by using the
latest technological breakthrough offered by social media websites. The attempts will be made
towards changing the customer perception and apply such communication plans that will ensure
customer engagement and reinventing of the editorial contents.
 Burberry Group has plans to develop and expand its business process in new regions. Burberry
Group wants to open wholesale and retail door for business in the United States and EMEIA
region. On the other hand, the new establishments of Burberry Group’s retail store are on the
cards which will be effective in near future. Both the methods of retail and wholesale selling will
help Burberry Group in applying luxury distribution network and support.

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 The Burberry Check
 The black, tan, and red pattern known as
haymarket check or the "Burberry classic check"
was first used as a lining for the Burberry
trenchcoat in 1924.
It was not until 1967 that the Burberry Check,
now a registered trademark, was widely used on
its own for items including umbrellas, scarves,
and luggage.
The Novacheck was introduced for the younger
market, later altered by making it more
"exploded" (bigger) and slanted in a diamond or
"mitre" pattern. Christopher Bailey debuted the
"Housecheck", a more exploded version of the
Novacheck, during the runway show of S/S 06.

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Supply Chain Of Burberry

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 Burberry’s Supply Chain involves a complex network of retailers, distributors,
transporters, storage facilities and suppliers that participate in the sale, delivery and
production of the brand's unique, luxury product.
Instead of shipping merchandise from the central warehouse, Burberry delivers
product from factories directly to consumers, thanks to a much more efficient supply
chain.
This eliminates stock-out cost and improves service levels. Burberry’s back-end
capabilities are critically important in its success. The brand is adept at managing the
various options available in the Omni-channel retail world.

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Supply sourcing
locating a source of supplies not manufactured by the brand

Shipment tracking
This allows users to establish an account and obtain real-time information about cargo
shipments. They may also create and submit bills of lading, place a cargo order, analyze charges,
submit a freight claim, and carry out many other functions. In addition, customers can track
shipments down to the individual product and perform other supply chain management and
decision support functions. The application uses encryption technology to secure business
transactions.

Shipping notice
This automates the receiving process by electronically transmitting a packing list ahead of the
shipment. It also allows Burberry to record the relevant details of each pallet, parcel, and item
being shipped.

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Freight Auditing
This will ensure that each freight bill is efficiently reviewed for accuracy. The result is a greatly
reduced risk of overpayment, and the elimination of countless hours of paperwork, or the need for
a third-party auditing firm. By intercepting duplicate billings and incorrect charges, a significant
percent of shipping costs will be recovered. In addition, carrier comparison and assignment allows
for instant access to a database containing the latest rates, discounts, and allowances for most
major carriers, thus eliminating the need for unwieldy charts and tables.

Shipping Documentation and Labeling

Online Shipping Inquiry

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 Burberry Employs
the Following Programs

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 Value Added
Employment
Burberry’s business activities generate income and career development for employees

Customer Experience
They create beautiful and distinctive products of the highest quality, representing the best of
British fashion. To inspire and excite customers, They create opportunities to engage with
Burberry in innovative ways.

Operational Efficiency
Manage the business dynamically to achieve sustainable growth. This includes focusing on
operational efficiency, strategic initiatives and responsibility.

Company Value
There framework for long-term value creation centres around three major pillars, which are
revenue growth, operating margin accretion and capital efficiency. Shareholders benefit from the
growth of profits and cash returns.

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Segmentation, Targeting and Positioning (STP)

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The segmentation, targeting and positioning is done with the purpose to define customers
in different region, target them with appropriate strategy and position the products in the
market as per the needs of the customers.

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Waiting Time at Tills
“
 Burberry has made towards offering enhanced customer service under which they
won’t have to wait long at tills. The self-service checkouts are made by Burberry Group
inside the establishments wherein the customers who do not want to wait in queue
can directly approach the self service checkouts. There they can make bills by their
own self and initiate the required payment.
 This way the new idea of self service checkouts are applied by Burberry Group to
enhance the customer experience and save them from the long waiting in queue.

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 Market Positioning
 Burberry position itself as a well respectable brand in the market which are preferred by
customers around the world. Consistent efforts are made by Burberry Group to achieve
enhancement of sales.
 Burberry has been organizing various fashion shows at regular intervals to make the customers
aware of the latest trend and designs that are applied in the latest editions of Burberry Group.

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 Promotional
Mix Strategies
The promotional mix strategy is applied by Burberry from time to time attract and
impress customers.
Special offers
The Burberry store offers heavy discounts and special offers to the
customers specifically during holidays or festive season. This helps in
attracting more customers and enhances the sales of the business.
Special offers are made to the online as well as offline customers. The
customers could use the required code to cash or avail the latest
discount offer.
New launches
There are regular new launches that are made by Burberry with the
purpose to maintain interest of people in the business. Recently
company introduced its women perfume which was meant to attract
women customers to the retail stores. This way regular updates and
new product range are introduced by Burberry Group to offer variety
to the customers.

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Advertising campaign
“
The advertising campaigns are applied effectively by Burberry. Burberry Group uses
television, radio, billboard, internet, newspaper and various other methods for
promotion and advertising of company products and services.

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 Promotion Mix
Advertising: Burberry Group makes aggressive advertising on television and FM radio with the
purpose to reach out to target customers.
Personal selling: Burberry Group has deployed huge work force in the selling department who
support personal selling.
Sales promotion: Burberry Group applies various sales promotion techniques including discounts
and offers for the customers.
Public relations: The after sale service is provided by Burberry Group which help in developing
public relations.
Direct marketing: Burberry Group has sales man which supports the process of direct marketing.

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Retailer Applying Different Evaluation Method

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There are different evaluation tactics that are applied by Burberry Company. These
include AIDA:
AIDA initials stands for Attention, Interest, Desire and
Action. It actually reveals the hierarchy of effects in this
model. That is the customer passes through various stages
before the final decision of purchasing is made. Thus a linear
and a proper sequential methods are identified which are
followed before the purchase decision is made. This is a
widely used model in marketing and advertising, where in
efforts are made to frame out such strategies so that the
customer purchasing decision can be affected. This way
AIDA reveals the way that is followed to achieve brand
choice for customers. AIDA is applied by Burberry Company
in reaching out to the target customers and making their
mind for purchasing various products and services sold by
the business.
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Attention
At this first stage the customer attention is tried to be achieved. Burberry Company has
launched various advertising campaigns and fashion shows so that the attention of the
customers can be attracted. The customers in this stage are made aware of the category,
product or brand that is available with Burberry Group. Burberry offers clothing, perfumes,
accessories and cosmetics of high range and variety for sale to the customers. Therefore the
advertising programs and fashion shows helps in conveying the various products and services
sold by Burberry Group.

Interest
At this stage the interest of the customer is actually seek by showcasing the different benefits
and gains that can be retrieved through purchase of particular product or service sold by
Burberry Company. The customer is therefore made interested by revealing him the various
benefits and gains that could attained by making purchase of particular product. This way
product information, brand benefits and lifestyle upgrades are among the factors that are
revealed at this stage.

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Desire
At this stage the customer develops a desire to buy particular product or service sold by Burberry
Company. That is the inner most desire in which brand recognition is achieved and favorable
disposition is attained towards the brand are among the features of this stage. It is at this stage
that the customers look for the brand in the market.

Action
In this stage, the customer takes the action of buying particular product or service. After going
through the earlier stated stages, the customer at this point prepares mind to buy Burberry
company products and services. Hence the action of purchase is made and the desired goods and
services are delivered to the customer.

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Push and Pull Strategies

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 Push promotional strategy involves taking the product direct to the customer who is already
aware of that particular brand or product. This way the purchase decision is affected by showcasing
the product before the customers through various advertising methods. The trade shows,
exhibitions, direct selling, point of sale displays are among the various push tactics that are used to
display the product before the customers who are already aware of the brand name and product
benefits. This way the decision of purchase is affected by making the product available near the
doorsteps of the customer. In push strategy the products are brought near to the customer by
making involvement of the retailers who could place the product near to the customer.

 Pull strategy on the other hand, is a process in which the customer is motivated to seek out the
brand. That is the customer searches for the brand in the market after getting aware of the
associated benefits. The example of pull tactics includes advertising on mass media channels,
referrals, sales promotion and customer relationship management. All these methods help in
making the customer aware about the product and thereby the desire of purchasing that product is
raised. In pull strategy the customers are attracted towards the product by showcasing its features
and benefits and hence the purchase decision is affected under which the customer seek for the
particular branded product in the market

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Burberry Company applies both the push and pulls strategies. Under push strategy, Burberry
Group schedules various fashion shows and exhibitions at regular intervals so that the product
can be placed near the customer so that he could make purchase of it. On the other hand, pull
strategy is also used under which the customers are motivated to buy particular product and
service. The use of advertising on radio, television and internet are made so that the customers
can get aware of the latest offers, discounts and other promotional schemes. This way the
customer’s desire is raise to buy Burberry Group product or service. Push promotional strategy
involves taking the product direct to the customer who is already aware of that particular brand
or product. This way the purchase decision is affected by showcasing the product before the
customers through various advertising methods. Pull strategy on the other hand, is a process in
which the customer is motivated to seek out the brand. That is the customer searches for the
brand in the market after getting aware of the associated benefits

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 Above / Below the
Line
The above/below the line is the advertising strategy that is used to promote brand and reach out
to the target customers. Above the line (ATL) involves using the conventional methods of
advertising products through radio, television, newspaper, magazines, outdoor and press. This
way a simple approach is applied to reach out to the target customers through use of mass
media channels. Below the line (BTL) involves the advertising on one to one basis. The methods
involved under this advertising are distribution of pamphlets, hoardings on road, billboard,
brochures and demos to the customers. This way the attempts are made to reach out to
customer on one on one basis. The direct customer outreach therefore helps in achieving
customer interest in buying the products and services.

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Burberry company applies both ATL or above the line advertising as well as BTL or below the
line advertising methods.
Under ATL advertising the use of mass media campaigns are made to reach out to the target
customers.
Burberry Group applies advertising on television, radio and print and internet as means of
reaching out to the target customers.
The main purpose of ATL advertising is achieving customer rating, brand awareness and
reaches to the target customers.
On the other hand, the use of BTL advertising is also made by Burberry Group at regular
intervals under which fashion shows, exhibitions and sampling is done to reach out to the target
customers.
Even the use of contextual text advertising, vertical banner, email marketing and telemarketing
is also done to reach out to the target customers, affect the decision making and achieve their
purchase decision.
The main purpose behind BTL advertising is to achieve quantifiable leads, attract new
customers and achieve real metric.

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Case Study

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MISSION
 The mission of the Burberry Foundation is to help young people realise their dreams and
potential through the power of their creativity. The Burberry Foundation is committed to
dedicating its global resources to help young people build confidence, make connections in their
communities, and grasp opportunities to succeed. The aim of the Foundation is to empower
young people to use their intellectual creativity — that which will help them to imagine and
achieve their life goals.
VISION
The Burberry brand is anchored in the integrity of its outerwear, a tradition that began when
Thomas Burberry invented gabardine and continued by Burberry making the coats that would
keep Ernest Shackleton, among other adventurers, warm and dry regardless of the extremity of
their conquests. Since the beginning of the 20th century, aviators, cartographers, and mountain
climbers alike have worn Burberry to expand the boundaries of human experience.

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 The Burberry Foundation recognizes that while the nature of exploration has changed, the
horizons today’s young people seek to conquer are no less daunting than the South Pole was a
century ago. The twenty-first century requires new skills among young people who are looking
to become successful adults in today’s multicultural, diverse global community. They must be
educated well beyond their primary school years; they must be skilled in language and
relationships and be technologically and culturally fluent; and they must navigate difficult
decisions and locate trustworthy mentors to open doors to professional careers and
meaningful lives.
Just as Burberry has clothed and encouraged the adventurers of the past, the Burberry
Foundation will support the creative spirit and the ambition of the young people of today by
helping them to navigate the uncertain terrain of their age and of the complex world in which
we live.

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PROBLEMS
Problem Statement: Burberry has become increasingly popular over the past few years.
a) Is this position in the marketplace that Burberry has won sustainable?
b) How can they sustain this competitive market position overtime?
c) How do they continue to grow the brand without risking customer burnout?

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SOLUTION
Reposition the brand. The goal of this decision is to attract younger customers, while still
appealing to the current customer base.
Updating the product line and develop a consistent look throughout products. Also, weed out
out-of-date parts of the line and replace them with new products.
Create a line that is responsive to trend changes, and release them on collection-by- collection
basis.
Get rid of licensed products so they could control all aspects of the product lines and curb
inconsistencies in price, design and quality throughout markets.
Expand brand portfolio with a high fashion line and other product categories.
Give consumers the check-undercover. Put it there, just make it harder to find/recognize.

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References

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on FMCG Products. International Journal of Marketing, Financial Services & Management
Research
Burberry Plc. (2009) Annual Report 2008/2009 (online) Available from:
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(2010a) History. (online) Available from:
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(2010b) Overview (online) Available from:
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Burberry (2015). Strategic Report, 2014-2015. [Online. Accessed at:
http://www.burberryplc.com/documents/ar1415/burberry_strategic_report_2014-15.pdf,
February 6, 2016].

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Miller, L., 2018. Burberry launches new women's fragrance. [Online] Available at:
https://newsok.com/article/5612382/new-womens-fragrance-from-burberry [Accessed 29
October 2018].
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