BURBERRYThe Digital Evolution of Luxury

Cassie, Chessy, & Chia-Mei

Burberry: A History➢ Established in London in 1856 by

dressmaker, Thomas Burberry.➢ It all began with the Burberry Trench.

Made famous by stars of the 50’s and 60’s, the trench became an iconic piece coveted by millions.

➢ Aspired to become the “leading, globally-relevant, luxury British brand”

“For everybody who is anybody…”

A New Audience for Luxury...➢ Following the Millennium, Burberry made a decision to shift their overall

marketing strategy by targeting Millennials

“The decision was not without controversy: we were choosing to aim squarely at a generation that had no current knowledge of Burberry’s core product.” - Angela Ahrendts, Former Burberry CEO

● “All of our competitors - what they are not targeting is a young consumer.”● 60% of the world’s population is under 30

➢ To communicate with a millennial audience, you need to speak their language- through digital and social media.

➢ Burberry was repositioned as affordable luxury, with an eye to becoming an industry leader on trends, fashion, music, and beauty.

...And A New Digital Marketing Strategy➢ Began in 2006➢ Today, 60% of the brand’s marketing budget going towards digital➢ Strategy: Digital + Personalization➢ In its 2014/2015 strategy report, Burberry states “blurring physical and digital”

as a top priority, reaching for a seamless experience online, on mobile, and in stores.○ Learn instantly about what is popular among customers○ Have better control of production cost

➢ Since 2009, Burberry has been ranked #1 by LuxuryLab’s Digital IQ Index for Fashion, which evaluates the digital competence of 64 brands based on their websites, digital marketing, social media, and mobile initiatives.

...And It’s SuccessFrom 2006-2015, Burberry underwent a massive brand transformation, to become of the world’s most beloved and valuable luxury brands.

Burberry has tripled its sales in the last five years, moving from a $1.318 billion revenue in 2006 to $3.2 billion in 2014. Company stock prices have also increased from $6 to $26.

Today, Burberry is the fastest growing luxury brand in the world, with revenue continuing to grow at a rate of 7.8% per annum.

Burberry’s Evolving Business Strategies (2015)➢ Inspire with the Brand➢ Realize Product Potential➢ Optimize channels➢ Unlock market opportunity➢ Pursue operational excellence➢ Build our culture

http://www.youtube.com/watch?v=d09_AJpjzd0

Digital Burberry: Agenda➢ Web➢ E-Commerce➢ SEO➢ Paid Search➢ Email Marketing➢ Mobile/Video➢ Content Marketing➢ Social Media➢ Conclusion

Mobile and Tablet Optimized

Web SWOTStrengths

➢ Beautifully designed➢ Visually appealing, simple images➢ Clear navigation➢ Clear calls-to-action➢ No ads or bloated headers➢ Simple, focused viewing frame➢ Multiple device optimization➢ Great analytic strength and reputability

Weaknesses

➢ Validator.W3 118 HTML code errors➢ 66%, D, on YSlow➢ Not optimized for all web browsers➢ Multiple content delivery network errors➢ No social widgets

Opportunities

➢ Code improvement➢ Browser Optimization➢ Scrolling navigation➢ Burberry Foundation focus➢ Social widgets

Threats

➢ Evolving web browsers➢ Mobile-site conversion rate

Main Web TakeawayUpon first glance, Burberry’s site is visually awesome, well-organized, and easy to use. It really makes us want to make a purchase. On deeper exploration, Burberry could do more to correct its browser optimization, HTML code, and content delivery systems.

Next Up: E-Commerce

E-Commerce

E-Commerce

E-Commerce SWOTStrengths

➢ Great visibility of breadth of products➢ Strong product and cart navigation; clear

search function➢ Easy payment options; no hidden costs➢ Security➢ Free shipping, next-day-delivery➢ Collect-in-store; “Does it fit?”

Weaknesses

➢ Technical Issues➢ Page Not Found; Error pages➢ No product reviews➢ No incentives or follow-up

Opportunities

➢ M-Commerce➢ Loyalty/reward points➢ Personalization (Initials, etc.)

Threats

➢ Low mobile conversion rate➢ Cart-abandonment➢ Bloomingdales; Neiman Marcus

Main E-Commerce Takeaway

Burberry’s check-out process has strong features and helpful options, which transfer seamlessly to their mobile site. Though Burberry makes it easy for consumers to purchase, they don’t go beyond this to offer incentives or follow-ups that could help drive conversions.

Next Up: SEO

SEOWhere do burberry.com’s visitors come from?

Which sites did people visit immediately before Burberry.com?

Site Percent of Unique Visits

1. google.com 11.6%

2. facebook.com 4.9%

3. google.co.uk 4.2%

4. google.it 2.9%

5. google.com.tr 1.5%

SEO SWOT Strengths

➢ Strong with Branded Keywords➢ Mobile-Friendly

Weaknesses

➢ Poor Performance on Non-Branded Keywords➢ Lack of Use of Extensions➢ No way for consumers to share content on

social media platforms

Opportunities

➢ Traffic from Facebook or other social media platforms

➢ Short-Tail Non-Branded Keywords➢ People unfamiliar with the brand name➢ Encourage Purchase

Threats

➢ Retailers

Main SEO TakeawaysMost traffic to Burberry.com comes from Google. This embodies the good brand awareness of the company. However, Burberry should work more on the relevant keywords related to its products to improve sales and get more people to learn about the brand.

Next Up: Paid Search

Paid Search- Google AdWords

Desktop

Mobile

2013: Five of the Best Personal Luxury Brands Spent approximately $22 Million on Paid Search in Google AdWords

Paid Search SWOT Strengths

➢ Bidding on Branded Short-Tail Keywords➢ Almost always shown on top when searching

“Burberry”➢ Appropriate Landing Page

Weaknesses

➢ Poor Performance on Non-Branded Keywords ➢ The headline of the website could be more

effective➢ Use of Extensions

Opportunities

➢ Non-branded keywords related to Burberry’s hit products

➢ Effective Use of Extensions

Threats

➢ Retailers

Main Paid Search TakeawaysPaid Search performs well mostly when the entered keywords are associated with the brand name. However, Burberry still needs to work on short-tail keywords related to its products.

Next Up: E-Mail Marketing

E-mail

➢ Make it RecognizableA simple, streamlined and easily recognized design

➢ Video-Enhanced Email

➢ One Message per Mail

Make it Recognizable

➢ Filled with pictures➢ Showcasing their brand’s iconic

trench coat and reinforcing brand awareness

➢ Achieve instant recognition because of the tan color palette and diverse shots of the signature coat

➢ The consistent grid lets the reader follow the visual story very easily

One Message per Mail

Video-Enhanced Email➢ Likely to increase views of the video

E-Mail Marketing SWOTStrengths

➢ Help establish brand awareness and loyalty➢ Mobile-Friendly➢ Links to social media platforms and the site➢ Most emails focus on one single message➢ Great visuals➢ Reposting Campaigns➢ Encourage E-Commerce

Weaknesses

➢ Time of day: every two days, 9am.-1pm.➢ Spotlight the store on Regent St.

Opportunities

➢ Localization➢ Personalization

Threats

Main E-Mail TakeawayWith e-mail visuals focused on the brand image, Burberry is able to foster campaigns and strengthen customers’ brand loyalty.

Next Up: Mobile & Video

Mobile

➢ Burberry's mobile penetration tripled in the past year

➢ Top priority: “blurring physical and digital”

➢ Seamless integration of offline and online

➢ Eye-catching visuals➢ Responsive, adaptive design

Mobile

Burberry and LINE➢ Partnership with the

Japanese social platform LINE in order to deliver users creative content

➢ Live-stream fashion shows

➢ Creation of a series of digital stickers dressed in Burberry and offered exclusively to LINE users

Mobile Ads➢ Interactive banner ads➢ Using banner

advertisements to connect with consumers on British Vogue and W Magazine’s mobile-optimized websites

➢ Inspires consumers to visit the brand’s website

Apple Music➢ Partnership with Apple➢ First fashion brand to have a

dedicated channel on Apple Music

➢ Also feature a series of exclusive videos

➢ Strengthens Burberry’s relationship with British music

Video“PowerPoint doesn’t work, video does” - Angela Ahrendts, CEO of Burberry, London

➢ Video plays central role➢ Burberry shoots video for almost

everything it does➢ Video will account for 79 percent of

all online traffic by 2018 (when there will be 4B Internet users)

➢ Distributed across YouTube, social and website

YouTube➢ Links back to website➢ Exposes brand to a

larger audience➢ Includes useful content

like makeup tutorials➢ Emphasis on music➢ Frequent videos: some

receive millions of views and others only get a few thousand views

From London With Love➢ Brand story content: tells the

tale of a young couple falling in love

➢ Creates an emotional connection

➢ High production value paired with a holiday tone works just right for long-form brand story videos that are popular on YouTube, especially among luxury brands

Burberry Brights Sunglasses➢ Instead of a standard YouTube

video, Burberry engaged consumers with full-screen interaction

➢ Shows how the glasses can be folded at the temple and again at the bridge between the lenses. Users can change the color of the frames to see how they look.

➢ Linked the video via its website, Facebook and Twitter accounts

The “Scarf Bar” Video➢ Launching online and in

stores, the "Scarf Bar" allows shoppers to design a classic cashmere scarf, completely personalized to their own specifications.

Mobile/Video SWOTStrengths

➢ Responsive design➢ High-quality images➢ Consistent aesthetics➢ Video positions Burberry as a fashion expert

and leader➢ Unique regularly updated content➢ Integrated into larger marketing strategy➢ Optimized for SEO➢ Shareable➢ Link Backs➢ Encourages subscribing

Weaknesses

➢ Mobile ads: not focused enough on converting potential customers into customers

➢ Video: could use longer descriptions and tags for better overall search ranking

Opportunities

➢ Mobile Ads: can be more directly linked to a purchasing page

➢ Mobile app (ex: Gucci Style)

Threats

➢ Over-saturation

Main Mobile/Video TakeawaysIt’s clear that both mobile and video play an integral role in Burberry’s overall initiatives. This is where their target audience spends the most time. However, while there is a ton of focus on brand awareness and engagement, there can be more mobile and video content that has a more direct link to sales.

Next Up: Content Marketing

Content MarketingBurberry’s commitment to innovative content marketing and social media engagement has earned the fashion label a place among the online sphere’s most exciting and popular luxury brands. More than 60 percent of the brand’s marketing budget is going towards digital.

Art of the Trench Campaign➢ Focus on user-

generated content➢ Great testament to

the power of transforming your fans into a loyal community of supporters

Burberry Acoustic➢ Short film series

features emerging British musicians performing acoustic versions of their work against countryside settings

➢ Engages consumers with the wider culture of the brand

Kisses Campaign➢ Campaign meant to highlight the

brand’s expanding makeup collection

➢ Partnership with Google➢ Takes a photo of users lips and

allows them to send letters that are sealed with a virtual kiss to anyone in the world

➢ Searchable, Shareable, Snackable

Content Marketing SWOTStrengths

➢ Curated, engaging focused on the interests and passions of consumers

➢ High-quality content ➢ User-generated content engages audience➢ Content is appropriate for platform➢ Seamless integration of brand across multiple

platforms➢ Searchable, Shareable, Snackable

Weaknesses

➢ Not all content has a call to action or is generating leads

Opportunities

➢ Burberry blog➢ More content further down in the purchase

funnel

Threats

➢ More competitors doing content marketing: 86 percent of B2B and B2C marketers now include content marketing in their marketing mix.

Main Content Marketing TakeawaysBurberry consistently delivers seamless, on-point experiences to their fans and potential customers; and while not everybody may be able to afford that iconic trench, the point is that everyone knows it’s iconic. However, it’s unclear whether engagement with content is translating into sales.

Next Up: Social Media

Social Media

I

➢ Almost 17 Million Likes

➢ More sales focused than other social media platforms.

➢ Fewer “lifestyle & culture” posts than other channels.

➢ Set up similarly to Pinterest, with e-commerce front of mind.

Social SWOT Strengths

➢ Innovative, constantly evolving➢ Tapping into real-time marketing trend➢ Use of @mentions and geo-tagging➢ Use of celebrity influencers➢ Breadth/depth of streamlined content➢ Methods match the brand➢ Direct link to product

Weaknesses

➢ Could do more to drive to purchase➢ Lack of conversation

Opportunities

➢ More UGC➢ Differentiated content➢ Social advertising➢ Relationship-building through conversation

Threats

➢ Mobile-dependent = low conversions➢ Over-saturation

Main Social Media TakeawaysBurberry leads the pack in its social media strategy, which aligns seamlessly with the company’s broader digital & business strategies, in particularly with their 2015 focus on Building our Culture.

Next Up: Conclusion

Burberry’s Digital Presence: Concluding SWOTStrengths

➢ Consumer experience➢ Building relationships & brand culture➢ Content integration➢ Identifying innovative opportunities (i.e.

Targeting Millennials)➢ Visionary

Weaknesses

➢ Driving conversions➢ Digital details ➢ Audience exclusion➢ Rewarding loyalty & informal brand

ambassadors

Opportunities

➢ Take advantage of Paid Search➢ Native Advertising➢ Greater CSR visibility for Burberry Foundation➢ Personalization & connection

Threats

➢ Other innovative luxury fashion brands - i.e. Gucci

ConclusionIn 2015, Burberry has focused on a new strategy, “Building Our Culture”. While the strategy has certainly benefitted the brand in many ways, positioning it as an industry leader in digital marketing innovation and building strong consumer relationships, it has perhaps drowned out the focus on driving consumers to purchase, as well as obscured the need to address the ‘digital details’, including browser optimization, keyword buys, e-commerce, & paid search.

If Burberry focused on correcting a few of these basic weaknesses with the same vigor they allocate to consumer experience, the brand could better realize its full potential.

Thank You!

Happy Holidays!