yu hsuan chien fashion branding report

Course: BA (Hons) Fashion MarketingUnit: Fashion Branding

Unit Leader: Dr Natascha Radclyffe-ThomasGroup Tutor: Liz Bunting

Group B4Georgia Elizabeth Willows (WIL14414367) Maiko Takama (TAK15442544) Yu-Hsuan Chien (CHI14433862) Soukaina Benjelloun (BEN13392926)

“I, Yu Hsuan Chien, certify that:

This is an original and individual piece of work and that no part of this has been writtenby anyone else;

I have acknowledged (appropriately referenced using the Harvard Ref-erencing system)all sources and citations;

No section of this essay/ reflective statement **has been plagiarised(*);

This work has not been submitted for any other assessment.”

Contents Executive Summary

This report identifies Burberry as a heritage British brand focusing on their innovative technological approach to luxury retail and marketing both in store and

online. It also identifies how that has made Burberry unique and helped contribute to their recent success within the market since their downturn in 2004.

Through secondary research into Burberry’s target customer and its already existing product width and depth and Taking into account micro and macro factors that are currently affecting Burberry Internationally. The product stretch of a Nail Lounge was chosen. Further market research of the beauty industry backed up the decision as it identified that the value of the beauty industry is forecast to increase in the coming years.

Primary research showed what Burberry’s target customer and existing nail salon goers would expect and enjoy from the service. Therefore, creating a luxury Nail Lounge experience with refreshments and the option of privacy.

As Burberry are focusing on targeting millennials, the option of a Nail Lounge targets younger, potential Burberry customers through offering a service that appeals to both younger and older customers. But is also a more attainable affordable Burberry product which widens the target customer base.

Through the marketing for the Lounge millennials shall continue to be the primary focus as the majority of the marketing activities shall be done through social media sites such as Snapchat and Instagram. Research has also shown that social media sites and blogs are the most effective way to promote Beauty products as women trust the opinions of bloggers and vloggers.

EXECUTIVE SUMMARY.........................................................................01

BRAND AUDIT............................................................................................02Brand Analysis...............................................................................................03Unique Selling Points....................................................................................04Target Customers...........................................................................................05Marketing Activities......................................................................................08Retail Environment........................................................................................10Visual Timeline..............................................................................................12Markrting Mix..............................................................................................14SWOT Analysis.............................................................................................16Competitors....................................................................................................20

MARKET RESEARCH..............................................................................22Hong Kong....................................................................................................23The UK.........................................................................................................26Beauty Market...............................................................................................29

MARKETING COMMUNICATION PLAN...........................................30Stretch Overview...........................................................................................31Unique Selling Point......................................................................................33Marketing Mix..............................................................................................36Promotion......................................................................................................41Customer Profile...........................................................................................44Nail Lounge Competitors..............................................................................46SWOT Analysis.............................................................................................47Pop-up Event.................................................................................................48GANTT Chart...............................................................................................56

BIBLIOGRAPHY.......................................................................................58

APPENDIX..................................................................................................63

01

BRANDAUDIT

Table 1. Burnett Identity Model

Brand Analysis

Core Values and Characteristics

Brand Identity

Functions

• Burberry is a British luxury fashion brand.

• It satisfi es customers’ needs for luxury goods.

• Burberry provides high quality products, exclusive fash-

ion designs and personal customer experiences.

Personality Images• People think Burberry has a lot of British heritage, is classic but

innovative and endorsed by celebrities.

• Burberry fashion shows often excite the public and shows people respect and embrace the brand. “Burberry ... accounted for 1.8% of all LFW tweets, over 7 times more than the second highest performing competitor.” (weareso-cial.com)

• Customers are perceived to be wealthy, successful, high-class, fi ne taste and tech-savvy people who adore the British classical look.

EssenceBritish, Heritage, Luxury, Customer, International and Innovation

Sources

• Burberry stands for Heritage, Innovation, British, Tailor-ing, Technology and Customer Service.

• Burberry’s aims are to develop younger international markets, leading technological innovation in the luxury industry, maintaining its current desirable reputation, searching and bringing in raw and new talents and focus-ing on creative marketing campaigns.

Diff erences• Burberry injects more British culture and heritage in its brand

than other British fashion companies.

• It is the leader of in-store and online technological innovation in fashion in dustry. “Burberry leads luxury brands in use of technol-ogy.” (Harvard Business School)

• Burberry provides much more personlised customer service. “Burb-erry has led the way for other retailers in how it has used its un-derstanding of its customers to shape its shopping experience.” (mycustomer.com)

• It provides consistent brand image across all touch points.

• Burberry’s optional product personalisation allows customer to con-nect with the brand.

The Burnett model explores Burberry’s identity and exclusive brand image. The analysis include five parts: Functions, Personality Images, Sources, Differences and Essece (Randall 2000).

Burberry is a design, marketing and retail led business with a global community. The brand is inspired by three Core Values - Protect, Explore, Inspire - rooted in the brand’s heritage. It is a quintessential British brand with outerwear at its core. Its iconic products include the trench coat and its trademark check ensure continued brand purity. Burberry is uniquely diverse and multi-national, with employees of more than 100 different nationalities operating all around the world (https://burberrycareers.com).

03

The Burberry Scarf Bar

Burberry introduced The Burberry Scarf Bar to celebrate the brand’s iconic cashmere scarves. It offers lightweight cashmere which all made in Scotland. Customers can create their own scarves by choosing from a wide range of colours and prints as well as a variety of thread colours.

The Thomas’s

Located in the flagship store on Regent street, the café operates all day, seven days a week. The menu has British classics from afternoon tea, to lobster with chips. Those dishes are cooked with finest food for each season from small farmers and artisan suppliers from around the UK.

Strong Digital Presence

Through collaborating with Apple Music, Snapchat, Line and WeChat, Burberry strongly presents their brand image online. This allows Burberry to connect with all generations globally by having a presence on all dominant social media sites.

Exclusive Gifts and Personalise Service

Including the Scarf Bar, the flagship operates The Gifting Area, which offers updated collections of gifts alongside an assortment of existing products. Customers can personalise the gifts in a variety of ways including embroidery, selection of exclusive printed and solid ribbons, and gift cards from paper embossing machines in the store.

Unique Selling Points

Image 1. Burberry Scarf Bar

Image 2. The Thomas’s

Image 3. Burberry Digital Presence

Image 4. Burberry Packaging

Target Customers

Burberry currently targets younger generations who are aged between 18 and 35. This is despite the company initially targeting older customers.

However, because Burberry is a luxury brand there has always been a focus on wealthy, fashion conscious individuals.

To explore the target customers in detail, Pen Portraits and customers segmentation, and a targeting and positioning process will be presented in the following pages.

“Most of us are very digital in our daily lives now. Burberry is a young team, and this is in-stinctive to us. To the younger generation who are coming into adulthood now, this is all they know.” - Christopher Bailey (Forbes 2014)

04 05

Target Customers

Segmentation and Targeting

Demographic

• Age: 15 - 35• Gender: Female and Male. Mostly Female• Family: Single, young couples, wealthy family• Income: Well above average wage.• Occupation: Young wealthy students, management and directing

positions, professional positions, popular artists and singers.

Geographic

• People who are mainly living in or originally from Asian Pacific, EMEIA and America. (Burberry Annual Report)

• People who are living in the urban area or the suburban places near big cities such as London and Hong Kong.

Social Classes

• Upper Middle Class: This social class often contains professionals, independent businessmen and businesswomen, along with corporate managers. People in this group believe in education, are joiners and highly civic minded whilst wanting the “better things in life”. (Kotler 2012. p.164)

• Middle Class: The middle class contains both blue and white collar workers whose income is Average-pay white- and blue-collar workers who live on “the better side of town”. They buy popular products to keep up with trends. Better living means owning a nice home in a nice neighbourhood with good school. (Kotler 2012. p.164)

Life Stages

• Cash Rich Catchments: Families and nesting couples in prime locations for good schools and jobs. Expensive financial portfolio. Luxury cars and the latest gadgets make their “on the go” lifestyle more comfortable. Downtime orientates around nice food, wine and culture, a hard earned holiday, dinner out and being sociable. (Personicx 2016)

• Established Elites: Successful families, living in large detached houses with children growing up. This is the most affluent segment who have a financial cushion of saving and investments. Time online is spent on practical tasks to enable them to enjoy the lifestyle they have created and their broad range of interests. Quality is important and this is reflected in the food, wine, clothes, holidays and cars they purchase.(Personicx 2016)

Table 2. Segmentation and Targeting

Target Customer Pen Portrait

Table 3. Pen Portrait for Burberry

Name and General information

Agnes is a 28 year old women. Her occupation is a senior creative editor of a popular fashion publication. Her income is around £30,000 per year.

Where do the customers live?

She rents a single bedroom flat in East Central London. Her monthly rent is £2,500.

Family Size and Background

Agnes is upper middle class. She believes in education and recieved a Bachelors degree in Fashion Journal-ism from Central Saint Martin.

Self Identity/ Group Identity

Agnes is not married, but has a stable relationship with a boyfriend.

Personality

Agnes is extremely sociable. She loves to be noticed and enjoys embracing the latest fashion trends. She is an explorer who loves to try new things and new experiences.

Interests/ Hobbies/ ActivitiesAgnes loves to shop and to watch films online. She is technologically savvy and occassionally drinks and goes clubbing with her friends.

Price SensitivityAgnes is willing to pay a high price to obtain luxury brands. She is always on the lookout for good quality products and is willing to pay a reasonable price for these items.

WardrobeAgnes loves classic, casual smart outwears. Almost all of her wardrobe comes from a famous brand.

SOC

IO-E

CO

NO

MIC

FAC

TORS

CO

NSU

MER

D

ECIS

ION

PSYC

HO

LOG

ICAL

FA

CTO

RS

06 07

Marketing Campaign

Burberry has been producing eye-catching marketing campaigns. To highlight that the brand is engaging with technology, Burberry has created innovative digital campaigns. For example, Burberry Kisses campaign was launched in 2013 (Campaign 2016), cooperating with Google in order to let everyone send virtual kisses to people anywhere at any anytime. In 2015, Burberry worked with DreamWorks Animation to launch its 3D scarf campaign (Mar-keting magazine 2016), enabling people explore Burberry’s scarf range on the curved screen at Piccadilly Circus by using their mobile devices. These examples indicate how digital campaigns

are important, since they provide opportunities to interact with existing and new customers directly.

In addition to the digital campaign, Burberry focuses on its seasonal, festive and product launching campaign regularly and these are noticed and embraced by the press and public. By looking at the fragrance MyBurberry Campaign and 2015 Christmas Campaign, it shows that celebrity endorsement is important to campaign representation. This is because celebrities help to create more eye-catching elements and attract existing and potential customers who engage with celebrity culture.

Digital Marketing

An interview with a Burberry employee (appen-dix A.) revealed that Burberry has its own CRM system, targeting its existing audience technologi-cally and precisely. Burberry also knows and cares for their customers- the company uses email marketing to connect with consumers and the seasonal newsletter is sent out regularly to everyone in the database. “Thank You” emails/cards are also sent by the sales associates in person if the value of the purchase is over 1K. Jones and Ryan(2012) once indicated that to create a good email, the content and the design of the email need to be consistent with the brand’s website design and the brand image. By observing the consistency of Burberry’s email and its brand image, Burberry is doing a great job of delivering the luxurious customer experience and exclusive product offers and information.

Social Media marketing has been a huge focus for the brand over the same period. Sharing pictures and interacting with online audiences on a daily basis gives Burberry a large number of followers on omni-channels. By looking at its social media platform, Burberry’s brand image is consistent with the image from the email marketing.

Marketing Activities

Image 5. Burberry Kisses

Image 6. Burberry Scarf Activities

Image 7. Burberry Email Marketing

Image 8. Burberry followers on Social Medias

08 09

Retail Environment

Burberry’s online retail environment is very strong, the design of its website emulates its brand image. This is very important for Burberry as it is one of the leading luxury brands in technological innovation. Also ‘as luxury consumers become increasingly mobile and global’, Burberry (has) continued to invest in digital commerce. Online and in-store innovations worked together to create a seamless experience wherever customers encountered the brand’ (Burberry PLC p34).

It has several unique features including ‘Art of the Trench’ and ‘Burberry Acoustic’. These both encourage customer engagement with the brand which helps develop brand loyalty. The ‘Our History’ section reflects that they are proud of their heritage and therefore justifies the price of the product.

Online

Image 9. Burberry Acoustic

Image 10. Art of the Trench

According to the primary sources, the conducted research shows that the Burberry flagship store uses digital products to make the customer experience unique. People who work in Burberry are all using sophisticated in-store technology like Ipads to capture customers’ attention (Dhar-mendra Pate, 2013). Customers can relax while they are paying for their items instead of queuing like in High Street stores. Music is also something that attracts consumers, which is why the playlist Burberry uses is influenced by current trends and

includes iconic artists. The store owns the world’s tallest retail screen, consisting of 550 hidden speakers that turn into mirrors when needed. (Dharmendra Pate, 2013).Burberry’s flagship store is huge compared to other retail luxury stores. In particular, there are three areas. The more affordable products are on the ground floor with the bags, the second floor is mainly for signature trench coats and the third floor is composed of the Runaway clothes which are the most expensive items.

In-Store

Image 11. Visual Display in Burberry (Author) Image 12. Visual Display in Burberry (Author)

Image 13. Visual Display in Burberry (Author)

Image 15. Customer using technology (Author)



10 11

Visual Timeline

2006CEO

ANGELA AHRENDTS

1970WOMENSWEARTRENCH COAT

1973WOMENSWEAR/ MENSWEARTRENCH COAT CAMPAIGN

1856 FIRST BURBERRYSTORE

1998PRORSUM COLLECTIONLAUNCHED

1947MENSWEARTRENCH COAT

FIRST LONDON STORE1891

2001DESIGN DIRECTORCHRISTOPHER BAILEY

2006150 YEARS CELEBRATION

2009LONDON BURBERRY GLOBAL HEADQUARTERS

2012 LONDONFLAGSHIP STORE

• 1856 - Thomas Burberry, a 21-year-old man, opened the first Burberry store in Hampshire • 1879 - Thomas Burberry invented gabardine - the breathable, weatherproof and hardwearing fabric. (http://

www.burberryplc.com)

• 1940 - During WWII, Burberry supplied the British Army with a range of military apparel and accessories, including the trench coat. (http://www.burberryplc.com)

• 1920 - Creation of Burberry Check.

• 2000 - Burberry opens its first store on Bond Street, London, reflecting the brand’s status as an iconic, global luxury brand. (http://www.burberryplc.com)

• 2001 - Christopher Bailey is appointed Design Director. (www.burberryplc.com)• 2002 - Burberry buys its business in Asia from third party distributors. (www.burberryplc.com)• 2004 - Burberry launches its first transactional website in the United States. This was followed by the

launch of a UK website in 2006. (http://www.burberryplc.com)

• 2004 - Danniella Westbrook dressed head-to-toe in the label, negatively leading to Burberry Chav image. Not until 2006 was this image eliminated by Angela Ahrendts

• 2009 - Christopher Bailey is appointed Chief Creative Officer. (www.burberryplc.com) - Launch of “ArtoftheTrench.com”, a social media website celebrating the iconic trench coat. - Burberry Launched its Facebook page. (https://parall.ax)

• 2010 - Burberry acquires its Chinese retail operations. (www.burberryplc.com) - Launch of Burberry Acoustic. (www.burberryplc.com)

• 2011 - “Burberry.com” launched. (www.burberryplc.com) - Burberry’s first Tweetwalk Show. (http://fashion.telegraph.co.uk/)

• 2006 - “Ahrendts immediately embraced the unique opportunities social media and the online world could offer Burberry, sparking a new realm of luxury innovation.” (http://www.forbes.com/)

• 2008 - The Burberry Foundation is launched, a philanthropic organisation dedicated to helping young peo-ple realise their dreams and potential through the power of their creativity. (www.burberryplc.com)

• 2012 - Beauty becomes Burberry’s fifth product division alongside mens, womens, childrens and accessories.

• 2013 - The Burberry Beauty Box opened in Covent Garden London. (www.burberryplc.com) - Burberry Kisses marketing campaign launched. (http://www.campaignlive.co.uk)

• 2014 - My Burberry Fragrance launched. (www.burberryplc.com) - Dream of London, Shanghai flagship store opened. (www.burberryplc.com)

• 2015 - Burberry launches festive campaign with an all-star British cast. (www.burberryplc.com)• 2016 - Burberry see-now-buy-now movement. (http://www.theguardian.com/)

12 13

Marketing Mix

ProcessThe transaction process enables employees to give customers a bespoke shopping experience. This process includes the option to introduce the latest seasonal pieces; to provide iPads to customers in order for them to check the availability of products they are interested in; to allow customers to fill out their detail online; and to tailor the packaging to the customers’ de-mands. Aftersale services enable the employees to contact the existing customers regularly, providing the latest information on events, products and discounted sales. (Appendix a.)

People

Burberry selects and trains its employees very well. According to the employee interview, it is found that after three steps of interviews, the employees get to attend the on boarding training week. After that, employees will receive ongoing in-store training once they are assigned to a particular branch. Sales associates become an important part of the brand. Burberry offers a thorough education on product knowledge, visual displays, customer service and alteration training. Image 17. Customer engages with product (Author)

Image 19. Visual Display in Burberry (Author)Image 18. Burberry employees (Author)

Product Price PlaceBurberry has three fashion lines: Brit, London and Prorsum.

The Brit is the casual collection with the lowest price point.

The London is the collection with the seasonal design and colours. The price point is in between Brit and Prorsum.

The Prorsum collection is showcased in London Fashion Week since it is the signature and the most luxurious line. Unsurprisingly, the price is the highest among all lines.

The product categories includes womenswear, menswear, childrenswear, beauty (makeup and fragrance) and accessories (scarves, bags, sunglasses, umbrellas, watch-es, jewelry, keychains..etc).

Accessories account for £892m in revenue, which is the largest portion, 36%, of retail sales among all categories for 2014/15 (Burb-erry Annual Report), followed by womenswear (£743m), menswear (£557m), beauty (£185m) and childrenswear (£78m).

The price of Burberry’s products differs depending on the category and the collection.

The Prorsum collection offers the highest price, reflecting the bespoke and exclusive designs. An alligator bag could cost up to £16,000 and a Prorsum trench coat could cost up to £4,495.

The London collection is slightly more affordable than Burberry’s most exclusive collection. A gabardine lace trench coat could cost up to £1,795 while a wool sweater could cost £350.

The Brit collection offers the most accessible price. A Brit trench coat could cost up to £595 and a Brit Polo shirt could cost £150.

Despite having many collections, Burberry’s products tend to cost more than similar products at others brands. This fact reflects the bespoke, exclusive designs on offer at Burberry.

However, in order to attract customers from different income backgrounds, Burberry has introduced its diffusion line to remain price competitive with other brands and to attract more potential customers.

Burberry operates in three regions. For 2014/15, Asia Pacific represented 38% of retail/wholesale revenue, Europe, Middle East, India and Africa (EMEIA) 35% and Americas 27%. (Burberry Annual Report) However, given the recent slowdown of sales is Asia, it is likely that these figures will be different for 2015/2016.

Promotion

See Marketing Activities.

14 15

Burberry SWOT Analysis

• Strong historical background.• Strong brand image: Britishness and Heritage• Consistent brand presentation throughout omni-channels.• Strong presence in London Fashion Week.• Collaboration with celebrities around the world. • Leading technological innovation in the luxury industry.• Positive social and environmental performance. (Burberry Annual Report 14/15)• Growing brand social media interaction.

STRENGTHS• Technological operational problems appear regularly. (Appendix a.)• Diversified product categories cause difficulties for consistent management. • Complex supply chain makes the controlling and examining process more

difficult and time-consuming. • Diffusion line could confuse the brand positioning in the highly competitive

luxury industry. For example, the price/image of the Brit collection is significantly different from the prices of the other collections.

WEAKNESSES

16 17

Burberry SWOT Analysis

• Existing loyal customers across many generations.• Online audiences are engaging more with celebrity culture. (Mintel 2015)• Exclusive brand culture attracts a lot of talented workers for Burberry.• Consumers on higher incomes tend to be those more likely to be trusting in their

attitude towards online luxury buying. (Mintel 2014)• Social media sites have become more influential than TV or films when it comes

to fashion among young women. (Mintel 2014)

OPPORTUNITIES• High competitive luxurious environment. • Unstable foreign exchange rates so uncertain revenues (in pound sterling). • Major incidents such as natural catastrophes, global pandemics or terrorist

attacks can happen.• The luxury retail market in Asia has slowed considerably in recent years due to

the Chinese government’s anti-extravagance campaign. (Mintel 2014)• Whilst operating across many countries, it can be difficult to present information

to various cultures using different marketing campaigns.

T H R E AT S

Fig 1. SWOT Analysis

18 19

Competitors - Perceptual Map

Fashion

Price (-)

Function

Price (+)

Fig 2. Perceptual Map

20 21

Macro Overview - Hong Kong

Political/ Legal

Hong Kong’s strict visa policy for Chinese visitors, which limits visitors from Shenzhen to one visit per week (www.cnbc.com), will negatively affect luxury sales. In particular, Chinese consumers make up about 80% of Burberry’s demand in Hong Kong.

However, the fact that Hong Kong government is reducing the retail rent (www.ft.com) encourages and attracts international brands import the stores into this area.

Economics

China’s economic slowdown has caused luxury rental prices to fall in Hong Kong. This could help firms in the luxury market improve profit margins and offset some of the falls in sales seen recently.

Retail only accounts for 5% of Hong Kong’s economy (www.ft.com). This shows that the Hong Kong luxury market could expand when people purchase more luxurious goods. As a result, sales may increase in the future.

However, the slowing Chinese economy could hurt luxury brands in Hong Kong. This is because, if Chinese visitors have less money to spend if their economy is struggling, sales may fall and companies will have to target other consumers.

Overall, there is still space for Hong Kong’s retail market to grow by attracting and connecting to Chinese tourists seamlessly.

“The open nature of Hong Kong’s open economy and its dependence on tourism left it exposed to the global economic slowdown, but its increasing integration with China, through trade, tourism, and financial links, has helped it recover more quickly than many observers anticipated.” (Mintel Report Asia-Pacific Retail Handbook, 2015).

Social

Local demand will represent a bigger share of total retail sales compared to tourist spending (www.worldpropertyjournal.com). This would help the luxury Hong Kong market by ensuring sales are not so affected by immigration policies and the health of foreign economies.

Negative attitudes caused by a series of high-profile mainlander protests in Hong Kong (www.ibtimes.com) could cause the luxury market to suffer in the short term. This is because foreign customers may not want to visit the country in case they are caught up in the protests.

MARKETRESEARCH

23

Technological

“Personalisation technology is intended to enhance the customer’s online experience and increase their loyalty.”(Chaffey and Ellis-Chadwick 2012: 139) To enhance the loyalty from the customer toward the brand, it is important for Burberry to think about how to interact with customer directly with the advanced technology, assessing the largest possible value from every existed and potential customer.

According to Burberry Strategic Report(2015: 23) “Key structural changes in digital commerce included mobile which was gaining market share and shortened delivery times which were creating competition with physical stores”. Digital commerce growth rates in Asia show that it is extremely important to shorten the supply chain cycle in order to create a more convenient and efficient luxurious shopping experience.

Environmental

Growing awareness for the importance of ethical production has caused many luxury brands to come under increased scrutiny. For example, in July 2015 a global initiative was launched called “Change your Shoes” to tackle the “systematic human rights abuses plaguing the shoe industry”. (Labour Behind the Label, Press release: Global Coalition launches Change Your Shoes, a campaign to transform the shoe industry)(http://labourbehindthelabel.org/) The impact of this awareness could be lower profits for luxury brands. For example, paying to undo the reputational damage of scandals by creating Ethical Committees increases costs. The scandals may also decrease demand for luxury brands’ items if consumers stop buying these items over concerns they were produced in factories that abuse workers’ rights. (http://www.aplf.com/)

Table 3. PESTEL Analysis for Hong Kong

Micro Overview - Hong Kong

Supply Chain

Burberry has committed to achieve zero discharge of hazardous chemicals by 2020 to 2025. They followed similar commitments made by other major fashion brands such as Levi’s, Zara and Uniqlo.

Collaborations with other international brands to underpin adherence from third party suppliers to its corporate social responsibility compliance standards.

Manufactures around two-thirds of total production in four EU countries: UK, Italy, Spain, and Portugal. There are no plans to manufacture garments in other EU countries.

PublicBurberry introduced its customer value management program, a loyalty and retention tool used globally to serve customers better. The program has been implemented over 300 stores worldwide.

Intermediaries

As the luxury market continues to become more complex and global, the brand continues to invest in digital commerce both in-store and online. For example, Burberry.com services 44 countries in 11 languages.

Burberry has established a relationship with third-party digital companies. In order to reach a wider customer audience, it partnered with Amazon and Tmall to provide a consistent brand experience. The collect-in-Store service will continue to be available in around 200 store worldwide across 24 countries (this accounts for over 20% of digital revenue.).

Burberry has agreed with the landlord of the Hong Kong flagship store to have access to the second story of its building in November, 2015.

Competition

Competitors in Hong Kong are mostly other international luxury brands such as Prada, Karen Millen and Michael Kors.

Sales in Hong Kong fell by 4.4% last year. Other international luxury brands’ sales also decreased, including Prada and Salvatore Ferragamo. Burberry operates 65 stores China, which accounts for about 14% of the company’s sales.

Customers

• Young adults in Hong Kong not in a hurry to move from family home. • Poor financial planning puts many middle youth at retirement risk. These factors indicate that young adults that are not leaving their family house might fail to be independent and learn financial management. As a result, this type of person is not expected to be Burberry’s customer in the future.

Chinese mainland consumers are no longer going to Hong Kong to purchase luxury goods.

Table 4. SPICC Analysis for Hong KongImage 20. Scene of Hong Kong

24 25

Macro Overview - the UK

Politics/ Legal

Due to an increase in tourism within the UK ‘councils will have the power to extend Sunday opening hours for retailers from this autumn’. This change is being implicated to enable retailers to compete with online retailers as consumers shopping habits are changing. (Retail week Feb 12, 2016: 4) Within the UK a large proportion of in-store customers are tourists, therefore the policy change will be beneficial for retailers as they are allowed to increase their opening hours to increase sales.

Economics

In the UK consumer spending has ‘grown 2.5%’ per year ‘faster than inflation over the past three years’ despite very small increases in the average wages. This is positive for Burberry because it shows that consumers are still willing to spend even though wage inflation is slow. So they are choosing to spend their disposable income rather than save it as they have confidence in the UK economy and feel they have job security. (http://www.pwc.co.uk/services/economics-policy/insights/uk-economic-outlook/uk-consumer-spending-nov-15.html)

‘The value of sales from British luxury industries reached £32.2 billion in 2013, valuing the sector at 2.2% of the UK’s GDP’. It is also predicted that ‘the British luxury sector will continue to grow rapidly in the medium term and forecasts the value of sales for 2019 to reach around £51.1 billion, with the industry set to employ 158,000 people’. This is also a positive sign for Burberry as sales are predicted to increase. (http://www.thewalpole.co.uk/walpole-economic-study)

Social

As Burberry’s main brand image is being British, their customers expect their products to be made within the UK. However, some products are made in China, Vietnam etc.Burberry is making an effort to fit to match its famous brand image with custom-ers’ expectations by ‘opening a new facility in Leeds dedicated to the production of its world-famous heritage trench coat’ (Telegraph 2015).

Table 5. PESTEL Analysis for the UK

Image 21. Scene of London

Image 22. Burberry Technology

Technological

Brands are globally immersing their retail environments both online and in-store with new technologies to try and generate attention from customers. Burberry is at the forefront of this innovation. Most recently Burberry ‘launched its first 24-hour fashion campaign via’ Snapchat. As the time available to view the campaign was limited it created ‘a sense of urgency and exclusivity’. (Retail Week Feb, 12 , 2016, page 16)

Burberry is also targeting millennials through their marketing by using technolo-gy and social media as their main marketing tools. This reflects the fact Burberry is a market leader in digital marketing for luxury fashion brands.

Environmental

“Burberry is strongly committed to reducing its environmental impact across the supply chain”.(Burberry.com 2016)

Burberry is now using raw materials and is more aware of its use of chemicals, energy and water. “All Burberry products are safe and fully adhere to international environmental and safety standards” ( Burberry.com 2016)

26 27

Micro Overview - the UK

Supply Chain

Burberry’s suppliers are governed by it’s ethical trading policy that is against child labor, low salary and irregular employment. They take into consideration the environment and is committed to reduce its environmental impact on the supply chain.

Public

Their media publics contributed to the Burberry’s success when they changed their marketing strategy. The Citizen action are a group that impact Burberry, by working together to focus on Burberry’s effect on the environment and their sustainability.

Intermediaries

From September, Burberry’s business will move to direct-to-consumer model. The collection that will be shown at the next London Fashion Week, will be available to buy immediately after the show. (Telegraph 2016)

HSBC Holdings had gathered the stake following a series of trades and not on behalf of a potential bidder for the business. However, Burberry has asked HSBC Holding to identify the person or people who have recently built up this 5% stake in the business. (Industry London 2016)

CompetitionBurberry is a brand that is functional but also luxury. Luxury brands that are competing with Burberry financially include Louis Vuitton, Hermes and Chanel (Morning star 2016)

Customers

The main audiences are younger people aged between 15 and 35 years old with a higher income or wealthy background. Burberry’s other customers include department stores, multi brand specialty, travel retail and franchises. (Burberry Annual Report)

Table 6. SPICC Analysis for the UK

Beauty Market

As shown in fig 3., the market value of the beauty industry is forecast to continue growing in the upcoming years. From £16.6bn to around £20bn. This shows that consumers are continuing to invest and buy beauty

products and services. Burberry ‘began developing its beauty business in-house’ in 2014 and want to continue to ‘further extend its (beauty) brand’ within the industry in the future (Mintel 2015). Therefore, by developing a Burberry Nail Lounge will encourage further sales of Burberry Beauty and justify the investment in the Beauty products.

The ability to book appointments online is influencing customers decisions for treatments. “This [technological] salon experimentation increases amongst young women who opt for more expensive treatments; 33% of women aged 16-24 are interested in doing this and 12% have done so already” (Mintel 2015) Therefore an online appointment booking system will be available for the Burberry Nail Lounge.

Fig 3. Beauty Market Value

28 29

MARKETINGCOMMUNICATION

PLAN

Stretch Overview

Burberry Nail Lounge was chosen for the product stretch because

Burberry already sell a wide range of goods. Burberry also has its own nail polish line which comes from the colours of the runway show pieces. Nail lounge becomes one of the ways to boost the sales of the nail polishes. Therefore a service that reflects Burberry’s luxury brand image and also promotes their nail polishes and beauty range seemed appropriate.

Image 23. Burberry Nail Polish

Image 24. Burberry Nail Lounge Logo

31

Why could Burberry Nail Lounge work?

Burberry provides not only the basic manicure and pedicure treatment but also exclusive Burberry nail art design. To explore the most innovative and exclusive nail designs inspired by Burberry’s runway show, and to search for raw talents that could become Burberry Nail Lounge’s brand ambassador, Burberry will hold a worldwide nail art competition. The theme of the competition will be “Burberry Seasonal Inspiration from Runway”.

Everyone is allowed to compete in the competition, but the scoring measurement will be based on the participants’ creativity, techniques and the followers on social media. This scoring system suggests that to become the brand ambassador, the winners are preferred to have an existing online audience that could help Burberry attract new customers and spread Burberry’s ideas quickly and effectively. The competition poster is made visually to show the idea.

Burberry Nail Competition

It is found that even if there are 64.3% of people who answer the questionnaire are not current Burberry customer, there is highly possible for them(74%) to become Burberry Nail Lounge’s customer if Burberry provide luxurious and exclusive customer services, which means Burberry Nail Lounge could attract more younger potential customers by providing relatively lower product price but consistent luxury shopping experience.

It is found that there are over half of the samples get their nails done in a salon at least one time per month (52%). And 84% of the samples are at the age from 19 to 25, which matches Burberry’s targeting market. This shows that nail treatment market has the potential to attract younger people and get to engage with them at least one time per month.

Fig 4. Important Findings from Questionnaire


Fig 5. the Poster for Burberry Nail Art Competition (Author)32 33

Technology

“The most successful brands often stand out by blending into people’s lives, because people measure the entire experience by how much it adds to their lives and how little it disrupts.”(Retail Asia: 7) Burberry wants to be embedded into people’s lives by using technology. From the pre-purchasing touch points to the in-store shopping process, Burberry’s technology provides an exclusive virtual experience to the existing and the potential customers.

Firstly, Burberry will install an online nail lounge booking system on the website (www.burberry.com) along with the virtual nail art and colours try-on platform. This encourages online audiences to sample the nail colours virtually and increases the chance for them to book the treatment session when they are browsing the Burberry website. Simultaneously, the collaboration with the beauty booking apps Treatwell is conducted because Mintel (2015) pointed out booking apps attract high-spending consumers with the right offers and have an impact on brand loyalty.

In addition, Burberry will provide the in-store iPads and RFID devices, enabling customers to try on the nail shades before the treatment and to shop for Burberry’s products when they are receiving the nail treatment. This hasn’t be seen at other nail salons such as Dior Beauty Boutique in Covent Garden while conducting primary research. Hence, this will allow Burberry to be innovative and trend setting within the luxury nail salon environment.

Luxury Environment

The luxury environment is one of the unique selling points for Burberry Nail Lounge. Burberry wants to create a quiet, comfortable and private space for every customer. To provide a private and quite space, the curtains will be used to separate each treatment seat and table. By visiting other nail salons like Dior Beauty Boutique and Cheeky Nails, it can be found that no brand is providing this exclusive environment even if they offer high price points for their products.


Image 25. Customer engages with Technology

Image 27. Customer engages with Technology

Image 26. Treatwell Logo


Image 28. Nail Lounge Inspiration Image 29. Nail Lounge Inspiration

Image 30. Nail Lounge Inspiration34 35

NAIL LOUNGEby

MANICURE £50

PEDICURE £60

MANI PEDI £90

BURBERRY NAIL ARTS £20+

(Treatment and Shaping are included)

Customer Service: 0800 279 4998Appointment Queries: please visit www.burberry.com

Marketing Mix: Product

The product from Burberry Nail Lounge will be the service of professional manicures

and treatments within a luxury environment, with refreshments included. There will also be existing Burberry nail polishes available to sell in the lounge, including colours for the current season that complement the current Burberry collections.

Apart from the basic nail manicure and treatment,

Burberry Nail Art will be the unique selling point for the product range. Inspired by the seasonal catwalk collection, Burberry Nail Art will feature the most trendy colours, patterns and styles. This can also increase the opportunity to link-sell the seasonal pieces such as handbags and accessories. Additionally, the patterned nails are more popular in the Asian market according to the questionnaire (Appendix B.) - 60% of respondents were from Asia.

Fig 6. Potential Patterns for Nail Art Design (Author)

Marketing Mix: Price

These prices were chosen based on the primary research in form of a survey (See

Appendix C.). This research considered the responses of individuals who visit nail salons regularly and who were also aware of Burberry’s luxury brand image. Secondary research informed us that similar services were offered at Chanel’s pop-up beauty event and they charged

£90 for an hour makeover with a professional makeup artists. (Telegraph 2015) Also, by visiting Dior beauty salon, it is found that an hour nail session costs £30 and there is only an option which is manicure.

Fig 7. Nail Lounge Menu and Price (Author)36 37

The Nail Lounge will be located within the flagship stores in Regent Street, London and The Pacific Place, Hong Kong.

This is to encourage existing and potential customers to visit the store increasing the opportunity of sales and Burberry’s footfall.

Marketing Mix: Place

Fig 8. Burberry Nail Lounge Location

Fig 9. Burberry Pacific Place in Hong Kong

Fig 10. Burberry Regent Street in London

Marketing Mix: Process/ People

The process of the treatment services will be consistent throughout every channel in Burberry, enabling employees to give customers a bespoke shopping experience. This experience will include introducing the latest styles via technology, providing the exclusive nail art techniques, creating sophisticated packaging for nail polishes and offering luxurious customer services such as supplying free champagne, hand massages and the in-store shopping platform.

Also, all the Burberry Nail Lounge customers will be included in Burberry CRM system. This will allow Burberry to target its customers from different product categories precisely.

The people who work for Burberry Nail Lounge are required to have selling skills and seasonal product knowledge like Burberry’s sales associates are expected to have. This enables the nail technicians to introduce the latest nail arts inspirations, and to link-sell the seasonal pieces from Burberry womenswear.

Process

People

Image 31. Burberry Beauty Product

Image 32. Burberry Nail Treatment

Image 33. Champagne will be provided

Image 34. Burberry CRM System38 39

Nail Lounge Design INSPIRATIONMarketing Mix: Physical Ambience

Fig 11. Burberry Nail Lounge Inspiration

These images evoke the desired luxury feel for the Burberry Nail Lounge. This will be created by using rich, luxurious materials and the option of privacy with drawable curtains.

Marketing Mix: Promotion

Direct Marketing

Personal Selling

Advertising

To reflect the same brand identity and services, Burberry Nail Lounge will conduct the same direct marketing methods for the customer. For example, sending thank you email and seasonal product offer to consistently connecting to customer.

The nail artists/ technicians who work for Burberry Nail Lounge will be carefully selected on their skillset such as communication, product knowledge, languages and nail painting skills. The nail artists are also required to have the skills on selling every category in Burberry due to the purpose of link-selling as one of Burberry’s marketing strategies.

According to Kotler, Armstrong, Wong and Saunders (2008) the marketing strategy is the marketing logic that helps the company to create the consumer value and achieve these profitable relationships. The strategy used to promote the nail lounge will be mainly digital marketing. This is due to Burberry’s target customer becoming younger. Therefore, the platforms that will be used to promote will be social media sites such as, Instagram, Twitter, Snapchat and Facebook as it is the most direct and efficient way to make the target customers aware of the new service.

For the launch event Burberry will have their own ‘Burberry Nail Lounge’ Snapchat story which will contain ‘snaps’ from celebrity guests and therefore help promote the Nail Lounge. Continuing on from the launch event, celebrities that are linked to the brand will be invited to visit the Nail Lounge for complimentary manicures to continue promotion through social media on their personal pages.

Image 35. Burberry Email Marketing

40 41

Sales Promotion

Public Relation

Through the pop up event, members of the public that post photographs of their nails using the the virtual try on technology, tagging @Burberry and using the hashtag #BurberryNailLounge will receive a coupon which makes them eligible to claim 10% off their first treatment at the Nail Lounge. In addition, If Burberry Nail Lounge customers spend over £90 they will receive a free Burberry nail polish of their choice.

Invitations for the launch event and the latest press release will be sent to Beauty Bloggers and YouTubers such as Tanya Burr, Estee LaLonde, Amelia Liana and Samantha Maria who have already collaborated with Burberry. This is to help maintain those relationships and increase the likeliness that they will blog and ‘vlog’ about the experience to boost awareness to the target customers that are interested in beauty. This method was chosen as research shows that ‘the internet is a growing influence in the beauty market… with a high proportion of women (using) … the internet to look for reviews and recommendations’ as they trust (blogger’s) opinion(s). (Mintel 2015)

DISCOUNTED COUPON10% OFF

THIS COUPON CAN BE USED IN BURBERRY NAIL LOUNGE IN LONDON FLAGSHIP STORE ON 121 REGENT ST, W1B 4TB

FOR ANY SERVICE IN STORE.

THIS COUPON IS VALID UNTIL 31TH MAY 2016

Fig 12. Burberry Discounted Coupon (Author)

For the UK beauty editors from publications such as Vogue, Elle, Tatler, Harpers Bazar etc will be invited to the launch event in the hopes of further promotion through those publications.

For Hong Kong publications such as HK Tatler, Elle HK, Vogue China, Marie Claire etc. Targeting mainstream publications in order to gain attention from potential and existed customers.

Fig 13. Burberry Targeted bloggers and Publications42 43

Customer Profile


Anna is a 32 years old women based in London. She works in a financial investment company as a senior manager. She earns much more than the UK average wage.


Anna owns and lives at a flat in West London.

Background

Anna is upper middle class. She believes in education and graduated from London School of Economics.


Anna is married for 2 years but has no children.

Personality

Anna is ambitious and hardworking. She cares about her look and perfers looking professional and fashionable at work.

Interests/ Hobbies/ ActivitiesAnna owns three mobile devices. She loves shopping and browsing beauty blogs online. She loves shopping in Burberry and is one of its loyal customers. She gets her nails done professionally every two weeks.

Price SensitivityAnna is willing to pay higher prices to obtain luxury brands. She cares about quality and the names of the brands.

Wardrobe/ Beauty BagAnna’s wardrobe is filled with classic, smart and trendy high-priced clothing. Her make up products are mostly from luxury brands.

SOC

IO-E

CO

NO

MIC

FAC

TORS

CO

NSU

MER

D

ECIS

ION

PSYC

HO

LOG

ICAL

FA

CTO

RS

Pen Portrait: London


Emma is a 22 year old women. She is a university student in Hong Kong. She comes from a wealthy family, but hasn’t started making money herself.


Emma’s family owns a house at The Peak, where is the most exclusive place to live in Hong Kong. (https://hongkong.xpat.life/districts)

Family Size

Emma is the only child in her family.


Emma is unmarried.

Personality

Emma is extremely sociable and outgoing. She loves to be noticed and enjoys looking good.

Interests/ Hobbies/ ActivitiesEmma is technology and beauty savvy. She loves shopping for luxury brands and regularly has her nails done professionally.

Price SensitivityEmma is willing to pay higher prices to obtain luxury brands. She cares about styles and trends, and, most importantly, the names of the brands.

Wardrobe/ Beauty BagEmma’s wardrobe is filled with luxury clothings. Limited editions and the runway colleciton can be seen as well. The beauty products are all from luxury brands.

SOC

IO-E

CO

NO

MIC

FAC

TORS

CO

NSU

MER

D

ECIS

ION

PSYC

HO

LOG

ICAL

FA

CTO

RS

Pen Portrait: Hong Kong

Customer Profile

Table 7. Hong Kong Customer Pen Portrait Table 8. London Customer Pen Portrait44 45

Nail Lounge Competitors

London

Hong Kong

Price (+)

Price (+)

Price (-)

Price (-)

Service (+)

Service (+)

Service (-)

Service (-)

SWOT Analysis

Strengths Weaknesses

• Lower price point, therefore a more attainable Burberry product.

• Online booking experience is available.

• Supported by strong brand name.

• Customers can shop and get beauty treatments in the same place.

• The artists needs to be well educated to maintain the luxury Burberry reputation.

• Lack of success and unsatisfactory standards within the lounge could harm the Burberry brand’s reputation.

• The price point could be seen as expensive compared to general (not luxury) nail lounges.

Opportunities Threats• Customers are investing more in beau-

ty and accessories.

• Nail art a current trend and can always be updated with new colour and pattern trends.

• It will increase publicity for Burberry the Nail Lounge and the Burberry brand through celebrity and blogger visits.

• Lots of competitors within the market.

• Unstable foreign exchange rates could affect Burberrys revenue.

Fig 14. Burberry Nail Lounge Perceptual Map

46 47

Guests will have the opportunity to experience the services of the Nail Lounge and a photobooth will be available for the guests to take photographs with their new manicures and share them to social media. On the day guests will be encouraged to add snapchat videos and photos to the Burberry Nail Lounge Snapchat story.

Pop-Up Event: Launch Day

Fig 15. The floor plan for the launch event is illustrated above. (Author)

RECEPTION

PH

OT

O B

OO

TH

FO

OD

& D

RIN

K B

AR

AC

OU

STIC

STA

GE

NAIL TREATMENT TABLE

VIRTUAL TRY-ON COUNTER

Burberry Nail Lounge launch event will be held on 23rd February right

after London Fashion Week in the flagship stores in Regent Street, London and Pacific Place, Hong Kong.

Around 200 people including press, celebrities and beauty blogger will be invited to this event.

The floor plan, the event’s highlight and the cost summary for the event will be illustrated in the following pages.

There will be an open bar and waiting staffs offering champagne to the guests.

The venue will have a entrance with a photo-booth section, so guests can be photographed and engage with social media upon arrival.

Image 36. Photobooth at Launch Event

Artists from Burberry Acoustic such as Todd Dorigo, Palace and Billie Marten will perform throughout the evening.

Image 37. Cocktail Bar at the event

Image 38. Burberry Acoustic

Fig 16. Experiences at the Launch Day

48 49

Launch Event Pricing

Category Quantity Numbers Price Total

Food Canapés 8 pp 200 guests £19.20 £3,840

Drink Open bar 3 drinks 200 guests £13.5 £2,700

Staff

Head Chef 1 6 hours £35 £210

Chefs 5 7 hours £25 £750

Mixologists 3 8 hours £30 £540

Waiting staff 20 9 hours £16.50 £1,980

Front of house 1 10 hours £25 £150

Lounge workers 7 6 hours £10 £378

Entertain-ment Acoustic Artists 5 4 hours £0 £0

Media KitPrint outs 4 200 guests £73/56 £275

Nail Polish 1 200 guests £15 £3,000

Technology iPads 8 £5,432

Total Cost: £19,253

Summary Cost for Launch

Guests will be encour-aged to try out the try on nail technology to try on the new nail colour from the collection with the op-tion to share them on their social media platforms alongside #BurberryNail Lounge.

Fig 17. Virtual Try-on Nail Polish System (Author)

Fig 18. Social Media Engagement (Author)

Table 9. Summary Cost for the Lauch Event50 51

Pop-Up Virtual Experience Event

After the launch events at flagship stores in Hong Kong and London, two pop-up technology venues will be set up for 30 days. Pop up event will be a promotional tool directed towards attracting the public to inform

them of the Nail Lounge and the services it provides. The technological innovation will be the primary focus of the pop up, as it will encourage the public to get involved and gain a sense of what an experience within the Burberry Nail Lounge would feel like. By doing this the pop up will target existing and potential customers.

The exterior of the Pop up venue (look at fig19.) will be a technological wall with the Burberry check pattern, inspired by the exterior of the Burberry Beauty Box. This will attract passers by and also reflects the use of technology within the pop up.

The materials will evoke a luxury feel, like within the Burberry stores. However the interior design theme (fig 21.) will reflect the most recent collection which included inspirations from David Bowie. The main materials will be dark including hard wooden flooring but with digital screens around the walls and at the virtual try-on counter which will add a brighter elements to the interior. Rock song from the selection of Burberry Acoustic artists will be played in the background.

The pop up venue in London will be located in Covent Garden, which is a destination of many beauty shops and according to professional make-up artist Sam Chapman, is becoming the ‘beauty hub’ of London (Pixiwoo 2016). It is also the location of Burberry’s beauty box. Covent Garden attracts a lot of footfall and has outdoor space where our pop up experience can be based. The Hong Kong pop-up store will be located on the ground floor of Pacific Place, which is Burberry Hong Kong flagship store’s location.

Store Location and Design

Fig 19. Burberry Pop-up in Covent Garden London (Author)

Fig . Burberry Po u in Pacific Place Hong Kong u or

Fig 21. Burberry Pop-up interior design (Author)

Fig 22. Burberry Pop-up Material (Author)52 53

Pop-Up Event: Press Release Pop-Up Event: Media Kit

WHO ARE WE?We are Burberry Nail Lounge. we are here to provide nail treament services with innovative technology.The Burberry Nail Lounge was chosen as the product stretch as Burberry already sell a wide and deep range of goods. It is also due to the rea-son that Burberry has its own nail polish line which comes from the colours of the runway show pieces. Nail lounge becomes one of the ways to boost the sales on the nail polishes. Therefore a service that refl ects Burberry’s luxury brand image and also promotes their nail polishes and beauty range seemed appropriate.

WHAT SERVICES DO WE PROVIDE?Service of professional manicures and treatment within a luxury environment, with refreshments included. Existing Burberry nail polishes, that include on trend colours for the current season and that complement the current Burberry col-lections. The process of the treatment services will be consistent throughout every channel in Burberry, enabling employees to give customers a bespoke shopping experience. From introducing the latest styles via technology, to providing the exclusive nail arts techniques and the luxurious customer services such as supply of free champagne, hand massage and in-store shopping platform.

WHERE CAN YOU FIND US?The Nail Lounge will be located within the fl agship stores in Regent Street, London and The Pacifi c Place, Hong Kong. This is to en-courage existing and potential customers to visit the store increasing the opportunity of sales and Burberry’s customer footfall.

PRESS RELEASE Burberry Nail Lounge

Launching Event

FOR IMMEDIATE RELEASE Burberry Nail Lounge Launching and pop up event announcement Covent Garden, London WC2E

Burberry is delighted to announce the launch of Burberry Nail Bar.

This is an innovative concept developed by Burberry in order to provide luxury nail treatment in Burberry exclusive environment. Burberry Nail Bar will be open on 23rd February 2016 in the flagship stores at Regent Street, London and the Pacific Place, Hong Kong.

To celebrate this, Burberry will hold a special launching event on 23rd February, 2016 at Covent Garden.

You are invited to celebrate our launching day at the pop-up venue in Covent Garden. This launching event is before the general visiting at pop-up venue for 30 days. The pop-up venue is the place where audiences can gain the insight of Burberry Nail Lounge’s general information, service, and Burberry nail styles collection. Burberry is kindly asking the attendees to engage with social media by hashtag #BurberryNailLounge when interacting with the technology installation and enjoying the luxury experience. Burberry appreciates all the support from the significant media and publication audiences.

The venue will include food and drinks, virtual nail polish try-on system, Burberry acoustic performance and opportunities to experience Burberry Nail Lounge’s services. In addition, all the attendees will be receiving Burberry Nail Lounge exclusive market kit at the (?)

“Fashion now is much more than a product. It’s about entertainment and people feeling a part of something.” -Christopher Bailey, Chief Creative and chief executive officer

For the further information please contact us without any hesitation.Burberry looks forward to welcoming you on the Launch Day.

Please Contact:Georgia Elizabeth Willows

(+44) 7647589304 [email protected]

Advertising and PR Director of the House of Burberry

"1

DISCOUNTED COUPON10% OFF

THIS COUPON CAN BE USED IN BURBERRY NAIL LOUNGE IN LONDON FLAGSHIP STORE ON 121 REGENT ST, W1B 4TB

FOR ANY SERVICE IN STORE.

THIS COUPON IS VALID UNTIL 31TH MAY 2016

10% Discounted Coupon

Polish Colour PaletteLatest Polish

Information Card

38874371

38874441

38874431

39986381

38991451

39885221

39695741

38874421

39330741

38874401

39272941

39213351

38874461

39006961

39213361

38874361

39272921

39330731 39920811

38874411

39213371

38991441

39272931

39006951

39885241

38874381

38874451

39458111

38928011

39920851

Fig 23. Burberry Media Kit (Author)

54 55

GANTT Chart

JANUARY FEBRUARY MARCHActivities WK 30th WK 4th WK 11th WK 18th WK 25th WK 1st WK 8th WK 15th WK 22nd WK 29th WK 7th WK 14th WK 21th WK 28th

PROMOTION-AL

MARKETING

Social Media

Instagram, Facebook, Twitter

Snapchat story for Launch

Direct Marketing Emails to customer database

In StoreThrough personal

selling within store and at beautybox

Sale Promotion Discounted Activity

Launch Day

Pop Up Event

PR

Press Release Send out press releases via Email

Blogger/ ‘YouTu-ber’ content

Publications

Competition Burberry Nail Art Award 206

Table 10. GANTT Chart

56 57

Bibliography

Acxim (2013) Personicx Pen Portraits Full. Available at: http://www.personicx.co.uk/docs/Personicx_Pen_Portraits_Full.pdf (Accessed: 04/03/16)

Bloomberg Business (2015) Burberry to Reduce Size of Hong Kong Flagship Store Aimd Slump. Available at: http://www.bloomberg.com/news/articles/2015-11-12/burberry-to-reduce-size-of-hong-kong-flagship-store-amid-slump (Accessed: 02/03/16)

Burberry (2016) Careers at Burberry. Available at: https://burberrycareers.com/content/brand/ (Accessed: 17/03/16)

Burberry (2016) Burberry Strategic. Available at: http://www.burberryplc.com/documents/ar-1415/burberry_strategic_report_2014-15.pdf (Accessed: 10/03/16)CNBC. (2015). New Hong Kong travel policies seen hurting luxury retailers. Available at:http://www.cnbc.com/2015/04/15/new-hong-kong-travel-policies-seen-hurting-luxury-retailers.html. (Accessed: 02/03/16).

Cirrus. (2013). What Will Burberry CEO Angela Ahrendts Bring to Apple. Available at: http://www.cirrus-connect.com/news/what-will-burberry-ceo-angela-ahrendts-bring-to-apple-5458. (Accessed: 02/03/16)

Chaffey, D. and Ellis-Chadwick, F. (2000) Digital Marketing: Strategy, Implementation and Practice (6th Edition), United Kingdom: Pearson Education Limited.

Davis S. (2014). Burberry’s Blurred Lines:The Integrated Customer Experience. Available at: http://www.forbes.com/sites/scottdavis/2014/03/27/burberrys-blurred-lines-the-integrated-customer-experience/#f10cf7422fcd. (Accessed 08/03/16).

Edie.Net (2016). Luxury brand Burberry commits to end hazardous chemical discharge. Available at: http://www.edie.net/news/4/Luxury-brand-Burberry-commits-to-end-hazardous-chemical-discharge/ (Accessed: 10/03/16)

Euromonitor International (2015). Consumer Lifestyle in Hong Kong, China. Available at: http://www.euromonitor.com/consumer-lifestyles-in-hong-kong-china/report (Accessed: 02/03/16)

FashionUnited (2015) After Prada & Burberry, Retailers Issue Profit Warning in China. Available at: https://fashionunited.uk/news/fashion/after-prada-burberry-retailers-issue-profit-warnings-in-china/2015081417347 (Accessed: 27/02/16)

Forbes (2014) Burberry’s Blurred Lines: The Integrated Customer Experience. Available at: http://www.forbes.com/sites/scottdavis/2014/03/27/burberrys-blurred-lines-the-integrated-customer-experience/#593ebf9222fc (Accessed: 08/03/16)

Forbes (2014) Retirement Risk: It All Starts With Longevity. Available at: http://www.forbes.com/sites/wadepfau/2014/03/18/retirement-risks-it-all-starts-with-longevity/#6892ad4512a5 (04/03/2016)

Forbes (2012). Burberry CEO Proves Tradition Doesn’t Prevent Innovation. Available at:http://www.forbes.com/sites/moiraforbes/2012/03/09/burberry-ceo-proves-tradition-doesnt-prevent-innovation/#47e0fa0a5a62. (Accessed: 02/03/16).

FNA. (2015). Environment - Burberry wants to ‘reduce environmental impact’ of leather. Available: http://www.aplf.com/?TabID=106&language=en-US&WEBONID=7829&CATTYPE=Headline. (Accessed: 10/03/ 2016)

Kotler, Philip; Armstrong Gray. (2012). Principles of Marketing (14th Edition), Boston: Pearson Education Lmmited

Kotler,P Armstrong,G Wong,V Saunders,J (2008). Principles of Marketing. 5th ed. England: Pearson Education Limited. 156.

Harvard Business School (2015). Burberry: Leader in Retail Tech. Available at:https://digit.hbs.org/submission/burberry-leader-in-retail-tech/. (Accessed: 02/03/16).

Industry London (2016) Burberry’s mystery shareholder is HSBC, not potential buyer. Available at: https://www.theindustrylondon.com/burberrys-mystery-shareholder-is-hsbc/. (Accessed: 14/03/16)

International Business Times (2015). China Slowdown: Hong Kong Luxury Retailers Feel Pinch As Mainlanders Travel Less Frequently, Spend Less. Available at:http://www.ibtimes.com/china-slowdown-hong-kong-luxury-retailers-feel-pinch-mainlanders-travel-less-2070723. (Accessed: 02/03/16).

Lauretta Roberts (2016) Burberry’s Mystery Shareholder is HSBC, not a Potential Buyer. Available at: https://www.theindustrylondon.com/burberrys-mystery-shareholder-is-hsbc/ (Accessed: 16/03/16)

Marketing. (2015). Burberry 3D scarf campaign lets consumers interact with giant Piccadilly Circus screen. Available at: http://www.marketingmagazine.co.uk/article/1376743/burberry-3d-scarf-campaign-lets-consumers-interact-giant-piccadilly-circus-screen. (Accessed: 02/03/16).

58 59

Mintel. (2015). In-salon Hair Services - UK - August 2015. Available at: http://academic.mintel.com.arts.idm.oclc.org/display/745820/?highlight (Accessed: 15/03/16)

Mintel (2015). Luxury Goods Retailing- International- August 2015. Available at:http://academic.mintel.com.arts.idm.oclc.org/display/718275/?highlight. (Accessed: 08/03/2016).

Mintel. (2014). Luxury Retailing: China. Available at: http://academic.mintel.com.arts.idm.oclc.org/display/718637/?highlight. (Accessed: 08/03/16).

Mintel. (2015). Mature Beauty- UK- December- 2015. Available at: http://academic.mintel.com.arts.idm.oclc.org/display/757086/?highlight. (Accessed: 11/03/16)

Mintel. (2015). Social Networking: UK. Available at: http://academic.mintel.com.arts.idm.oclc.org/display/715830/?highlight (Accessed: 08/03/16).

Mintel. (2014). Youth Fashion: UK. Available at: http://academic.mintel.com.arts.idm.oclc.org/display/725127/?highlight#hit1. (Accessed: 08/03/16).

Morning star (2016) Burberry Group PLC: Industry Peers. Available at: http://financials.morningstar.com/competitors/industry-peer.action?t=BRBY&region=gbr&culture=en-US. (Accessed:16/03/16)

MYcustomer. (2013)Customer experience lessons from luxury retailers. Available at:http://www.mycustomer.com/experience/engagement/customer-experience-lessons-from-luxury-retailers. (Accessed 02/03/16).

PWC (2015) UK Economic Outlook November 2015: UK consumer spending. Available at: http://www.pwc.co.uk/services/economics-policy/insights/uk-economic-outlook/uk-consumer-spending-nov-15.html. (Accessed: 10/03/16).

Pestana R. (2016). Living in the ‘Age of You’: The impact on retail brands. Retail Asia. 48:7.

Randall, D, (2000). The Universal Journalist. 2nd ed. London: Pluto Press.

Ryan, D, & Jones, C. (2012). Understanding Digital Marketing : Marketing Strategies for Engaging the Digital Generation (2nd Edition). London: Kogan Page Ltd. Available from: ProQuest ebrary. (Accessed: 28/02/16)

Bibliography

Royce-Greensill S. (2015) Chanel’s Covent Garden Christmas pop-up. Available at: http://www.telegraph.co.uk/luxury/womens-style/94464/chanel-christmas-at-covent-garden-opens.html. (Accessed: 11/03/16)

Telegraph (2015) Burberry backs Britain by opening new trench coat factory in Leeds. Available at: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11973538/Burberry-backs-Britain-by-opening-new-trench-coat-factory-in-Leeds.html. (Accessed: 10/03/16)

Telegraph (2016) Covetable, wearable, beautiful: Burberry AW16 collection steals the show at London Fashion Week. Available at: http://www.telegraph.co.uk/fashion/london-fashion-week/covetable-wearable-beautiful-burberry-aw16-collection-steals-the/. (Accessed: 14/03/16)thegardian. (2016). Burberry ready to modernise fashion without delay. Available at:http://www.theguardian.com/fashion/2016/feb/22/burberry-ready-modernise-fashion-without-delay. (Accessed: 01/03/16)

Victoria Moss (2016) Covetable, wearable, beautiful: Burberry AW16 collection steals the show at London Fashion Week. Available at: http://www.telegraph.co.uk/fashion/london-fashion-week/covetable-wearable-beautiful-burberry-aw16-collection-steals-the/ (Accessed: 15/03/16)

Winterstein I.. (2015). Press Release: Global coalition launches Change Your Shoes, a campaign to transform the shoe industry. Available at: http://labourbehindthelabel.org/press-release-global-coalition-launches-change-your-shoes-a-campaign-to-transform-the-shoe-industry/. (Accessed: 10/03/16).

WeAreSocial. (2015) London Fashion Week Steals the Show. Available at:http://wearesocial.com/uk/blog/2015/09/london-fashion-week-steals-show. (Accessed: 02/03/16).

World Property Journal (2015). Hong Kong Luxury Retail Market Hurt by Chinese Government Anti-Corruption Measures. Available at: http://www.worldpropertyjournal.com/real-estate-news/hong-kong/hong-kong-retail-report-2015-chinese-government-anti-corruption-measures-hong-kong-luxury-retail-sales-data-cbre-joe-lin-slowing-china-gdp-china-stock-market-crash-9365.php. (Accessed: 28/02/16).

Xpat.Life. (2016). Popular Expat Residential Areas in Hong Kong. Available at: https://hongkong.xpat.life/districts. (Accessed: 08/03/16).

60 61

Image Reference List

Image 1.: www.senatus.netImage 2.: redvelvetlondon.comImage 3.: blog.360fashion.netImage 4.: www.shopspec.comImage 5.: www.retail-week.comImage 6.: www.digitalartsonline.co.ukImage 9.: www.burberry.comImage 10.: www.burberry.comImage 11.: The image is taken by the author.Image 12.: The image is taken by the author.Image 13.: The image is taken by the author.Image 14.: The image is taken by the author.Image 15.: The image is taken by the author.Image 16.: The image is taken by the author.Image 17.: The image is taken by the author.Image 18.: The image is taken by the author.Image 19.: The image is taken by the author.Image 20.: shafir.info.comImage 21.: www.swaffsphotography.co.ukImage 22.: blog.360fashion.netImage 24.: The image is made by the author.Image 25.: pinterest.comImage 26.: pinterest.comImage 27.: luxurysociety.comImage 28.: pinterest.comImage 29.: pinterest.comImage 30.: pinterest.comImage 31.: viviansvoice.wordpress.comImage 32.: www.thebeautyroomiow.co.ukImage 33.: raredelights.comImage 34.: fashionologyuk.wordpress.comImage 35.: www.thememo.comImage 36.: www.handsomemomento.co.ukImage 37.: www.e-architect.co.ukImage 38.: www.burberry.com

Table 1.: • www.burberry.com

Table 3.: • http://www.elle.com• http://www.hurford-salvi-carr.co.uk/• www.lipsticklifestyle.com• www.blog.lee.com

Table 7.:• www.4j4j.cn• www.woodsbagot.com• www.senatus.net• www.tumblr.com

Table 8.:• pinterest.com• www.digitalspy.com• lerablog.org• stylistanur.com

Appendix A. Employee Interview

Q1: Some of our second hand research has indicated that Burberry has tried to change its target customer. How do you feel that the in store experience has reflected that?

A1: Burberry always have their own heritage trench coat collections. But now they have expanded their colour options from 3 to 5. Also other than heritage trench coats there is an option of season trench coats made from different materials, patterns and textures. This is to try and attract and target a wider audience.

Q2: Please describe your average customers?

A2: 40% are Chinese in store, Regent street more tourists. Lots of European customers but locals less than 20%. Their age, Chinese students. European customers are older.

There is a CRM data base to generate a customer relationship and keep in contact and encourage them to come back, costumer loyalty. The messages are very personal to the customers.

Q3: Known for its classic items such as the cashmere scarf and the trench coat, do you think these items still stand strong after years of being on the market?

A3: Yes, they are still very strong, they are best selling items within stores. This is because the items are continually innovates e.g. scarf bar and creating new designs for the trench coat so the desire for those items will continue.

Q4: Burberry recently launched its Scarf Bar and also lets customers personalise their initials onto the scarf. How do you think this will help the brand?

A4: Because of the monogram services it encourages customers to purchase them as gifts, so they became a very popular item during the festive period. This creates a closer relationship between the brand and customer which increases customer satisfaction.

Q5: Burberry as a brand stands for British heritage more than anything, do you think this has any affect when foreigners shop from the brand?

A5: Yes, because of being an iconic British brand it has become and extremely popular shopping destination for tourism. Also because tourists can claim back their tax which makes the product less expensive than it would be in their home country.

Images Images in theTable

62 63

Q6: What do you think about the organisation in Burberry Bond Street?

A6: Our in-store management team is really organised. We have at least two supervisors on every shop floor, managing and solving every problem that employee or customer has from the purchasing process. We also have well-trained people work in the extremely complex stockroom, compiling and organising a large amount of products from different categories. In overall, the team is huge but well-organised.

Q7: Do you like working with a lot of technology? Why?

A7: I think technology is the main thing that differentiates Burberry and others. Every sale associate has his/her own device, and it allows us to check the stock, to connect to customer immediately and to receive the training on product and display knowledge. I personally really enjoy working with this technologies. However, some of my colleagues are annoyed about the devices since the techniques’ problems always happen.

Appendix A. Employee Interview Appendix B. Questionnaire

64 65

Appendix C. Questionnaire Result

66 67

Appendix D. Moodboards

Brand Moodboard

70 71

Appendix D. Moodboards Appendix D. Moodboards

Burberry Nail Lounge Customer MoodboardBurberry Nail Lounge Moodboard

72 73

Team Agreement

74 75

yu hsuan chien fashion branding report

Documents