Flower Marie Embravecido, CEO for Burberry via 1997 so far (2003). Improved company from " intensely reliant upon licensing and distribution ”(1997) to " leading extravagance brand”(2003) Revenue increase: £225 million in 2000 almost £600 million in the year 2003. She has had the opportunity to efficiently steer the corporation through an primary public offering of 22. 5% in 2002. History: Founded in 1856 by 21 year old Jones Burberry, who also opened a draper's shop and quickly invented impermeable, a waterproof and breathable fabric that was chosen to end up being official cover of United kingdom Army on planet War I. In 1920's Burberry check pattern – a buck, black, white and red plaid style was presented and it became registered brand. Celebrities (Humphrey Bogart and Ingrid Bergman in Casablanca, Peter Sellers in The Green Panther, and Audrey Hepburn in Breakfast at Tiffany's), expeditionists aiming to conquer the South Pole and Everest were generally seen in Burberry scarves " check”. Even English royalty, Ruler Edward VIII was seen to say: " Give me my own Burberry”, like a regular Burberry scarves wearer. In 1955, Great Universal Shops Plc. (GUS) – an english holding firm bought Burberry. In 1970 with first sale to Asia, company begun to realize license agreements around the world. By 1990s Burberry acquired limited control of licenses sold making it is brand selling price, design and quality fluctuate across market segments; " seite an seite trading” (sale of products in prices, programs and places without respect to manufacturer image) started to be common, specially in Asia. Organization was successful, but making quality was low; clients were mainly older men and Oriental tourists. It had lost their exclusivity and much East accounted for 75% of sales. The Rose Jessica Bravo Age: Bravo, a native Fresh Yorker with 25 years of experience in industry as president of Saks 5th Avenue joined Burberry in 1997 which has a goal to remodel Burberry coming from tired outwear manufacturer in luxury lifestyle manufacturer. She hired new crew of people who realized what it required succeed d a retail environment, who also knew what customers needed and exactly where gaps had been. She altered the name from Burberry's to Burberry, launched a contemporary brand and packaging. Transfering the brand: Embravecido started with surveying the industry and identifying the spaces to position themselves and determined there was a distinct segment for business between product labels as Bordo Ralph Lauren and Giorgio Armani in apparel and Coach and Gucci in accessories. Burberry scarves would be a functional, accessible, aspirational luxury manufacturer. Updating the merchandise collection: Bravo implemented the following changes in Burberry: * Lowered SKUs (stock-keeping unit) from 90, 000 to 24, 500 to eliminate obsolete designs 2. Hired fresh design group to renovate Burberry's traditional products and expand image to new products 5. 2 types of products: (1) continuity – life cycles expected to last over # of years (2) fashion-oriented-responsive to products, introduced in collection-by collection basis 2. 3 main collections:
(1) womenswear-450-500 styles each season wt focus on autumn/winter season; nevertheless 2000 spring/summer collection got enormously well-liked check sexy bikinis. Michele Smith, Head of Womenswear noted products being -sporty, functional, protective. (2) 330-350 models per period. Stan Tucker (formerly proved helpful for Saks Fifth Avenue), Head of Menswear explained aim consumers were cross-generational, from 25 yr old guy at first task to 70 yr outdated investment company. (3) Equipment – included both " soft” (scarves, shawls, ties) and " hard” (handbags, leather items, shoes, umbrellas, eyewear) ones with extensive price range. 5. Burberry gained more control of design, finding, manufacturing, and distribution. The moment specific expertise was needed company caused licenses wt rights to develop, manufacture and distribute underneath Burberry's term with 10% of firm revenues because license income. * Organization took tight control over circulation, reined a large number of licensing contracts to curb inconsistencies in...