Introduction to Burberry

Burberry Group plc (LSE: BRBY) is a British luxury fashion house, manufacturing clothing, fragrance, and fashion accessories. Its distinctive tartan pattern has become one of its most widely copied trademarks. Burberry is most famous for its iconic trench coat, which was invented by founder Thomas Burberry. The company has branded stores and franchises around the world, and also sells through concessions in third-party stores. HM Queen Elizabeth II and HRH The Prince of Wales have granted the company Royal Warrants. The Chief Creative Officer is Christopher Bailey. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.

According to Business Weekly, Burberry is the 98th most valuable brand in the world. Burberry was founded in 1856 when 21-year-old Thomas Burberry, a former draper's apprentice, opened his own store in Basingstoke, Hampshire, England.

Burberry operates under 4 brands:

Burberry Prorsum - The most expensive of the brands. This is their luxurious, high end, runway brand.

Burberry London - The dressed up, more formal brand, than Brit. Cuts are usually slim and the quality is a bit more well worked.

Burberry Brit - The most known brand of them all. This is the brand that Burberry is built upon. Cuts vary from slim and formal to more loose and classic.

Burberry Sport - A sport inspired brand, pointed more towards the youth customer.

More recently, Burberry has added two regional brands:

Burberry Black Label, men (in Japan & Hong Kong, 2011 only) Burberry Blue Label, ladies (in Japan & Hong Kong, 2011 only)

Some of Burberry’s competitors would be Christian Dior, Hugo Boss, Coach, Miu Miu, Just Cavalli and D&G. All of these are luxury brands which cater to the premium market segment; the high society. For our analysis here I have picked its competitor Christian Dior for the study.

CHRISTIAN DIOR

(more commonly known as Dior) is a French company which owns the high-fashion clothing producer and retailer Christian Dior Couture, as well as holding 42% of LVMH Moët Hennessy • Louis Vuitton, the world's largest luxury goods firm.[3][4] Both Dior and LVMH are controlled and chaired by businessman Bernard Arnault. The Dior label is the namesake of designer Christian Dior who launched the haute couture empire in 1946. Christian Dior Couture, a division of the whole House of Dior, designs and produces some of the world's most coveted haute couture, as well as luxury ready-to-wear fashion, menswear and accessories. Today, Dior operates about 160 boutiques worldwide with plans to open more in the coming years.

The House of Dior was established on 16 December 1946, in "a private house" at 30 Avenue Montaigne Paris B. However, the current Dior corporation celebrates "1947" as the opening year. Dior was financially backed by wealthy businessman Marcel Boussac. The new couture house became a part of "a vertically integrated textile business" already operated by Boussac. Its capital was at FFr 6 million and workforce at 80 employees. The company was really a vanity project for Boussac and was a "majorly owned affiliate of Boussac Saint-Freres S.A. Nevertheless, Monsieur Dior was allowed a then-unusual great part in his namesake label (legal leadership, a non-controlling stake in the firm, and one-third of pretax profits) despite Boussac's reputation as a "control freak". Monsieur Dior's creativity also negotiated him a pleasant salary.

KAPFERER’S FRAMEWORK

The distinction between the two brands is done on the basis of Kapferer’s framework.

• Kapferer uses an identity prism to describe from sender perspective and reciever’s perspective in six dimensions .The left side of the prism is intended to project outward & externalize the brand. The right dimensions transfer in internalizing the brand. These six facets as well as the boundaries, defines the Identity of a brand. These facets are interrelated and form a well-structured entity.

• The context of one facet echoes that of another, since brands can only exist if they communicate, the prism concept derives from the assumption that brands have the gift of speech. The vertical division of the identity prism shows the internal and external expressions of the brand.

• The facets to the left – Physique, Relationship and Reflection are the social facets, which give the brand its outward expression. All three are visible facets. The facets to the right-

Personality, Culture and Self-Image which is incorporated with the brand itself, with in its spirit.

• Personality is the same as that of Aaker ,it answers “what happens to this brand when it becomes a person” consumers will choose brands they want to be seen and associated with.

• Culture symbolizes the organization, its country-of-origin and the values it stands for.

• Relationship is the handshake between the consumer and the organization.

• Reflection is the consumers perception of what the brands stands for.

• Self-Image is what the consumer thinks of himself relative to the brand. This is an inner reflection.

• The Strength of the Identity Prism is that the Six Facets give a Complete Picture of the Development of a Brand.

BURBERRY’S PRISM

BRITISH CULTURES AND VALUES.

ELITE, SOPHISTICATED, REFINED.

MODERN, CLASSIC CONSUMERS, HIP, FASHIONABLE YET NOT SO SNOOTY.

THE CLASSIC CHECKS AND TARTAN PATTERN ORIGINATED FROM BURBERRY. IT ALSO HAS AN EQUESTRIAN KNIGHT LOGO .

GOOD AND UPDATED RELATIONSHIP WITH CUSTOMERS. Eg. The ART OF TRENCH WEBSITE IT OPERATES.

SEEN BY CONSUMERS AS A HISTORIC BRAND WITH A BRITISH SENSIBILITY AND TASTE.

CHRISTIAN DIOR’S PRISM

FEMININE, CREATIVE, LEGEND AND ELITE.

FRENCH ORIGINS WITH FRENCH STYLES AND FASHION.

ITS CONSUMERS THINK OF THEMSELVES AS A CLASS APART, AND ELITE.

HIGH QUALITY, EXCLUSIVE AND LOGO SIMPLY SAYS “ DIOR”.

MAINTAINS RELATIONSHIP WITH CONSUMERS THROUGH SOCIAL NETWORKING SITES.

ULTIMATE FIGURE OF STYLE AND FRENCH FASHION.

PHYSICAL ATTRIBUTES

Burberry- is a British luxury fashion house that deals with manufacturing clothing, perfumes and accessories for Men, Women and Children. Its distinctive tartan pattern has become its most widely copied trademarks. It has a vast product line which offers Clothes, Accessories like Bags and Belts, Watches, Perfumes and also Shoes. It also offers a Home accessories and Gifts section. A winning factor in Burberry’s success recently has been the idea to feature all its lines under one store concept, instead of separating the different lines. It has 475 stores in 48 countries.

Burberry 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 adventurers who pioneered aviation and arctic exploration. Interestingly, the brand has also innovated the famous ‘trench coats’. In 1914 Burberry was commissioned by the War Office to adapt its officer's coat to suit the conditions of contemporary warfare, resulting in the trench coats. After the war, the trench coat became popular with civilians. The iconic Burberry check was created in the 1920s and used as a lining in its trench coats. Burberry’s 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 Royal Warrants as weatherproofers to both Her Majesty the Queen and the Prince of Wales.

In Perfumes, it has a collection of Burberry British, Burberry Sport, Burberry Body, Burberry Classic, Burberry Touch, Burberry Weekend.

The Burberry Checks is a very prominent and integral part of the historic brand. There are various forms of checks, like Haymarket, House, Nova, Supernova and Exploded. The Checks is synonyms with Burberry.

CHRITIAN DIOR couture on the other side is a French fashion house which designs and produces some of world’s most haute couture, as well as luxury ready to wear fashion for Men and Women. It operates around 160 boutiques in the world. Like all other luxury brands Dior products physical attributes too have been associated with creativity, exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. These product attributes give the consumers the satisfaction of not only owning expensive items but the extra added psychological benefits like esteem, prestige, and a sense of a high status that reminds them and others that the belong to an exclusive group who can afford these pricey items.

It has different divisions - like Christian Dior Parfums for perfumes and for Cosmetics – Christian Dior Cosmetics( Estb 1969), Dior Homme is the Menswear division. Unlike Burberry, Dior does not have a section for Children at all. It does not also offer a Home Gifts and Accessories section. It also does not have a division or label for Sports. Clearly Burberry has a vast product line to offer. It has more variety than Christian Dior.

PERSONALITY

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. There was a time, a few years back, when England seemed to be coated in a perpetual layer of Burberry check. It surfaced on everything - on coats and purses and scarves; on suitcases, handbags and skirts. When it rained, the streets erupted in a flurry of Burberry umbrellas. Burberry is an old, Historic brand; obviously with the coming of new age and an emergence of a whole new class of rich people because of economic, technological and social breakthroughs- there has been entry of a lot of other luxury brands in the market. The market share of Burberry due to this might have gone down for a few years but now its gaining recognition and space very fast again.

Once only catering to the high end elite sophisticated class; the paradox of Burberry and its two faces lies in the fact that now it also caters to an urban upper middle class individual, who wears it like a badge. It offers ‘Classics with a twist’, but nobody defines its personality better than Christopher Bailey (Chief Creative Officer of Burberry)- he says "The bit that we tried to work on was the image of heritage and classic, but young and modern, hip and fashionable," explains Bravo. "It's a thin line between being commercial and aesthetic, saleable yet refined. You are always walking that line between accessibility and inspiration." What he feels they have now achieved is a label that is "not so avant-garde, not so snooty" as many of the European fashion houses, but one that prides itself on being "sensible, but that has got class".

Burberry has maintained strong links with its ancestry - raincoats, he points out, are still the number one item on the runway, though they have evolved this masculine heritage, he says, "in a very feminine way". Burberry has a considerable market in Spain, America and Asia. They like the British lifestyle and what they think it stands for.

Burberry’s iconic trench coats are often seen worn by Kate Middleton, Duchess of Cambridge. And also by Sarah Jessica Parker, Kate Moss- who was also the face of Burberry last year.

CHRISTIAN DIOR PERSONALITY

CD - the logo of Christian Dior House is more than a trademark, it is a legend. For more than 50 years, the name “Christian Dior” spells seduction, creativity and femininity in luxury goods. From his first collection (launched 1947), trendsetters, celebrities and film stars like the Duchess of Windsor, Greta Garbo, Marlene Dietrich and their followers - everyone who desires modern design and top quality stick to Dior’s designs for good. Until now, everything that bears the Dior name expresses the sophisticated style, inventiveness, and delight resides to the legendary founder.

The brand personality is modern edginess merged with classic French elitism.

Designer Christian Dior launched his first collection in 1947, setting Paris ablaze and establishing a leading brand in the culture of couture. Affluent consumers developed an appetite for all things Dior, and eventually furs and designer fragrances were rolled out to feed them. Before his untimely demise in 1957, Christian Dior built a powerful brand of glamour, elegance and prestige, counting world class figures like Marlene Dietrich, Ava Gardner and Eva Peron as his biggest fans.

A Christian Dior store is an epitome of fashion faboulousness. It is tone of the high end brands that sets the trends in women and men clothing and accessories. It has premium prices which simply cannot be afforded by a middle class individual.

The advertisements have been headed by actresses like Natalie Portman and Gywneth Paltrow and Mila Kunis.as brand ambassadors for Dior.

Dior’s personality differs from Burberry in many ways like- Burberry has grown up to be a more wholesome brand which can cater to a target which is not exceptionally elite and sophisticated; it does have an edgy and a little basic collection to offer. On the other hand Dior is the haute couture of Fashion, with exclusivity as its primary missions. It has an extra ordinary mixture of romanticism, feminism and modernity.

RELATIONSHIP

Traditionally Christian Dior built relationships with customers through flagship stores, traditional public relations and advertising only. Now they’re building relationships through Facebook, user reviews and consummating the transaction [online]. Of course, the product remains paramount.

But company is now going way beyond simply posting pages on those sites. They’re building their own social networks, games, iPhone applications and cross-platform advertising campaigns, and partnering with third-party social sites focused on fashion, such as the search engine Shopstyle, the fashion social network and outfit-sharing site Chictopia, and the outfit-building site Polyvore. For several years, they have been reaching out to bloggers and writing their own blogs, which boosts their rank in searches. Macy’s, Urban Outfitters, Zappos and other retailers have found user reviews (and user-contributed photos and videos) increase sales. Saks Fifth Avenue, Urban Outfitters and others show which items are most popular among shoppers, which can push a popular item to selling out.

Latest designs and collections are updated on Twitter and Facebook also, to reduce the distance between the consumers and the brand. This way the brand looks more appealing, approachable and is very convenient for the customers.

Burberry too has Facebook and Twitter accounts for the modern generation. But probably the first thing to talk about Burberry’s relationship building should be its Art of Trench website and exhibitions which keep taking place throughout the world. In it snapshots of Celebrities and regular people wearing the iconic trench coat are displayed. It is indeed an excellent relationship building strategy by Burberry. It makes the consumers come closer to the brand, as they feel like a part of their work. Even Burberry displays its latest collection on its websites to make it more convenient and easy for the consumers.

BURBERRY’S SELF IMAGE

It offers ‘Classics with a twist’, Christopher Bailey (Chief Creative Officer of Burberry)- he says "The bit that we tried to work on was the image of heritage and classic, but young and modern, hip and fashionable," explains Bravo. "It's a thin line between being commercial and aesthetic, saleable yet refined. You are always walking that line between accessibility and inspiration." What he feels they have now achieved is a label that is "not so avant-garde, not so snooty" as many of the European fashion houses, but one that prides itself on being "sensible, but that has got class". It projects itself as a British 156 year old Global brand, synonymous with luxury, quality, innovation and timeless style, anchored by the iconic trench coat. Every aspect of the brand has evolved with a modern and pure expression that retains the original values and heritage of the house, founded in 1856. It has used ‘democratic repositioning’ as a factor to enhance its clientele. Another important factor for its revival is globalization and its success to reach such a vast multi racial audience. It wants to be seen as a brand that caters to all age groups and all types of people with a classic yet edgy taste.

CHRISTIAN DIOR SELF IMAGE

“I create so that each and every woman is the most beautiful“. Christian Dior.

Christian Dior was a visionary. Beginning with his first collection in 1947 he rewrote the rules of modern elegance and imposed his style on the entire world. He brought women his vision of beauty and happiness. He showed unprecedented creative originality. DIOR is the ultimate symbol of elegance, excellence and luxury. In the 21st Century, DIOR continues to define elegance and style with the same audacity that inspired Monsieur Dior when he launched his house. Dior does keep into consideration the modern day trends and fashion and designs its collection accordingly. “True Luxury requires genuine materials and the craftsman’s sincerity. It is only meaningful when it respects tradition“. Christian Dior.Dior clothes do get into extremism at times at the fashion shows, but it does keep a sense of reality and accessibility, however not so much like Burberry. It wants to project and see itself as a brand and innovator of fashion which is affordable only to the top high class consumers, who do not mind paying that kind of money.

Here lies a difference between Dior and Burberry where Burberry wants to keep a very global and yet classy image it has. Dior keeps it like a brand which is only for the elite fashionistas.

REFLECTION

Burberry is seen by the consumers as a historic brand which is worn by Prince Charles, Lady Diana, Kate Middleton and also celebrities like Sarah Jessica Parker. It also appeals to the urban upper middle class. It has various divisions like for Men, Women and also Infants. This gives it more variety perception by the consumers. It is seen as a brand with a distinctive British sensibility, strong international recognition and differentiating brand values that resonate across a multi-generational and dual-gender audience. Globally also it appeals to the people fascinated by British lifestyle and want to experience a slice of it. The visual image of Burberry is groups of middle aged men and women who love the elegant, yet modern spirit of Burberry London. It epitomizes the cosmopolitan London lifestyle with independence and relaxed confidence. The brand personality is modern edginess merged with classic British elitism.

Dior on the other side is seen as a class apart. There are two types of collection, one which is accessible, wearable and the other reaches extremism and can only be worn on ramps and red carpets. The masses see it as a brand of the elite class. It is reflected as a brand which is Chic and Classic. A high quality brand with likewise products. The company is undoubtedly one of the biggest hits of today’s fashion world. Christian Dior Couture had built its fame on women's fashions. But in 2001 the company gambled that it could become equally famous for its men's fashion. In that year the company hired Hedi Slimane, who, at age 32, had already gained famed as a designer for Yves Saint Laurent.

It is probably every woman's dream to be known all around as the ultimate figure of style, to find other women sighing wistfully because they are not anywhere near such epitome of perfection and all men turning around to follow her with their eyes. This dream is very possible to make true and is largely achieved through the right use of fashion. This fashion is also seen as Christian Dior. Fashion has been an important industry and cultural export of France since the seventeenth century, and modern haute couture originated in Paris in the 1860s. Paris is the fashion capital of the world. Dior being from France gives it a very aesthetic and complete package from the consumer’s eyes and perception. It gives a sense of Dior always getting the right trends at the right place, at the right time.

CULTURE

Burberry being a UK based brand has its roots and culture, style inspired by British fashion sense. As the UK is very much a western society - they wear very much the same as any other modern western society - ranging from Jeans and Tee shirts to full business suits for office work. Special clothes for the climate include heavy overcoats or anoraks for cold wintry weather to raincoats and umbrellas, for weather rain. Materials used cover every type and colour of fabric available, especially considering that Britain is a multi cultural society. Burberry caters and fits as a perfect example of British Culture and Heritage to British fashion.

Previously seen as the preserve of greying executives on golfing holidays, which became a favourite. But by the early 2000s the company’s distinctive camel-coloured check had become the uniform of the “chav”, the stereotypical white working-class delinquent looking for trouble. Bouncers and taxi drivers learned to turn away young men sporting Burberry baseball caps and jackets. The brand worked very hard to remove this stereotype and gain its reputation back.

Christian Dior, on the other hand has French origin. In 1947, Christian Dior put Paris back in the center of the fashion universe with his "New Look." The new style melded the best of the Belle Epoque with the most advanced styling techniques of the times. Poetic, romantic, and classical, Dior provided the world with a glamorous, modernized version of the Golden Age. Dior was the antithesis of Chanel. Where Chanel favored suits and slacks, Dior had a passion for long lines. Where military-inspired styles favored buttons and accessories, Dior's fashions sported pleats, flounces, and the embellishments of times past. The 1947 Dior collection shook the fashion world to its foundations and inspired people to pay attention to the wonders of fashion. Dior's genius is evident in the way he engineered a renaissance of classical styles and ideals. His designs occupied a fantasy realm. Fabric was lavishly and sensually draped around an idealized model of the feminine figure -- a figure that featured a high waist and a firmly molded bust. The new designs hid women's hips in a flare of fabric, but displayed their upper bodies with tightly fitting, form-revealing bodices. In following years, Dior returned to his original themes. In the 1951 collections -- Dior's personal favorites -- waistlines went higher but the continuous, flowing lines remained. In 1953, the designer introduced a floral motif, incorporating floral patterns and colors into his fabrics to stunning effect. In 1957, he finally began to move away from the cinched waist, instead favoring more relaxed, comfortable waistlines. The last Dior collection was full of promise; unfortunately, it was a promise that will remain forever unfulfilled. Dior died in 1958, leaving the control of his fashion house in the hands of the tremendously talented Yves Saint Laurent. Saint Laurent worked for years in Dior's house before moving on to establish his own fashion label. Five decades after Dior's death, the Christian Dior label remains synonymous with style, beauty, and class.

CONCLUSION

Burberry and Christian Dior are high end fashion brands which have similar target market and

consumers to cater to. Christian Dior does rest at a slightly higher pedestal than Burberry in its market

share, especially owing to Burberry’s consistent fall out into various controversies. Despite that they are

close competitors offering similar product lines. The brands have similar personalities and relationship

strategies for its consumers. The culture of the two brands, however differ. They compete against each

other in the European, Asian and American markets. Burberry Group plc is the UK's number one luxury

retailer by revenue. The firm designs, sources, manufactures and distributes luxury mens, womens and

childrenswear and non-apparel accessories globally through its own retail stores, concessions and

wholesale customers. In fiscal 2011, BRBY reported net sales of £1.28 billion and net income of £81.4

million.

Despite harsh economic conditions in Europe, where Burberry receives nearly half of net sales annually,

the firm continued to grow and prosper in fiscal 2010. The main driver for Burberry's success has been

its restructuring of its global business plan, such as opening more stores in the Asia Pacific region. In

addition to global restructuring, Burberry has focused on improving non-apparel (fashion accessories)

sales to have a more balanced product line.

Contents

Introduction to Burberry and Christian Dior. Kapferer’s Framework. Differentiation on the basis of Physical Attributes of Burberry and Christian

Dior. Differentiation on the basis of Personality of Burberry and Christian Dior. Differentiation on the basis of Relationship. Differentiation on the basis of Reflection. Differentiation on the basis of Self Image. Differentiation on the basis of Culture. Conclusion.

FASHION BRAND MANAGEMENT

COMPARITIVE ANALYSIS OF BURBERRY AND CHRISTIAN DIOR.

submitted by:

Divya patwari