Information Resource

In: Business and Management

Submitted By hzh17
Words 1447
Pages 6
Entrenched in the Digital World
Executive Summary: In 2009, British luxury brand Burberry, like its competitors, was still unsure of how to build a valuable presence in social media. This case study looks at how it eventually capitalised on the new medium - without eroding the exclusive, aspirational qualities that are core to the world of luxury.

In 2009, fashion house Burberry was feeling the pressure of the economic downturn, even though its financials had been strong over the past decade. Revenue growth dropped from 18 and 15 per cent in the previous two years to seven per cent that year, excluding the impact of foreign exchange rates, while operating profit margin shrank from about 15 per cent to 9.8 per cent. In this harsh retail environment, Burberry recognised the potential value of the digital media. In March 2009, with 175 million users on Facebook and 600,000 more joining it each day, Burberry began allocating marketing and public relations spend and dedicated personnel to pursue tech-age marketing. Building a social media presence seemed critical, but the question was, "how"?

Burberry was founded in 1856 when 21-year-old Thomas Burberry, a former draper's apprentice, opened his own outdoor apparel store in Basingstoke, Hampshire, England. Soon after, the company introduced the gabardine, a water-resistant but breathable fabric, and started producing the trench coats that would become famous in England and around the world. By the end of the 20th century the brand was going through difficult times, as the company's strategy had not been consistent with the Burberry brand identity. In 1997, Rose Marie Bravo, former president of Saks Fifth Avenue, was named CEO. She and her team initiated a series of changes that repositioned the brand, targeting a younger and higher-end audience, and raised it back to the top of the fashion world.

Burberry…...

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