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Burberry's Culture In Lebanon Essay

2116 words - 9 pages

Beirut Souks

“One Brand, One Company”
“The brand is not this kind of cold, static name outside a shop or outside a building or on a piece of clothing. There are values and a culture behind it."
Brand equity is a very valuable term to the British luxury brand Burberry: it lies in the famous checker pattern which is now Burberry’s trademark. Christopher Bailey’s wise words reflect the enterprise’s global strategy. But what did Burberry do to double its net income in just five years? Well, the secret is Britain’s most paid CEO, Angela Ahrendts. The hire of Angela in 2006 turned things around dramatically at Burberry’s headquarters: she understood Burberry’s core competences ...view middle of the document...

The first step was updating the brand’s picture through the change from Burberry’s to Burberry with a new logo and packaging. Second, Burberry allocated a huge part of its budget on advertisements using only British figures to appear on the ads. Third is represented by the opening of the London Flagship on the New Bond Street. It was vital since it situated Burberry next to other luxury brands. This attracted international media attention to the store. At the end, with these basic steps, Burberry’s uniqueness, reliability, credibility and extensions were re-established globally.
Burberry’s Global Strategy:
New international strategy: To focus on the most basic item Burberry had; the trench coat; but with a modern twist. Ahrendts knew that the web is what Burberry needed to grow. Therefore, she created the salesforce chatter, salesforce platform and the marketing cloud: Now customers can buy Burberry products wherever they are. Their objective was clear: a total integration between the brand, the customers, the company and the employees (SalesForce). In simple back: It’s all about connections and integration. This is what is defined as social currency. (BeetTv)
Today, the consumers and their behavior around social media and social networks have fundamentally changed. And Burberry recognized that by changing its entire value chain by putting the customer at the beginning. Through social currency, Burberry made their runway rehearsals in Paris and London available one hour before the actual show on face book. This allowed the collection to be shoppable globally because the customer will be able to connect with the brand or with others about the brand. Now Burberry produces what is being ordered only to be delivered directly to the customer or to one of its retail stores. This way, Burberry is producing all of its collections several times in a year with no inventory problems, no outlet stores, little financing, no more forecasting and no more mark downs at the end of the season. (BeetTv)
In addition, Consumers can reach Burberry’s products through retail (71%) (Including digital) and wholesale (24%) channels. It also has licensing agreements in Japan and globally (Burberry).Yet In Lebanon; it is represented with a franchise with the Aishti Group (largest luxury retailer in Lebanon).
Burberry’s target market:
“Burberry maintains a broad appeal across dual gender audience of ages 20s to 50s, with high spending levels. As Burberry is synonymous with quality, style and elegance where beautiful craftsmanship is contrasted with form and function, the brand appeals to people who appreciate the British clean, smart and timeless classic style. It exudes sophistication and elegance, and at the same time, maintains modern edginess and British sensibility.” (World Press, 2012)
Can Burberry compete in the Lebanese market according to its global strategy?
The MEA (including Lebanon) constitutes 2% of the global luxury market and it is always evolving....

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