Financial Acquisitions of Burberry Group PLCIntroductionIn finance, acquisition and mergers are transactions in which ownership of a particular business is transferred to another business entity and the operating units; in corporate finance, when a company purchases most shares of another business entity, usually more than 50 percent of the claims. Specific considerations have to take place for a company to acquire another company, which generally lies in its advantages. The reason for acquisitions includes seeking synergies, economies of scale, operating costs, and new niche offerings.Burberry Group PLC is a British fashion house dealing with the design of luxurious ready-to-wear products. Some of the Companys unique products include leather jackets, trench coats, footwear, eyewear, and other fashion accessories. The Company is considered well-performing due to its net revenue of 2.63 billion as of 2020 (Statista, 2021). The Company is also listed on the London stock exchange, and in 2015 it ranked…...
mlaReferences
Araguas, S.A., 2021. Should Synergy Alone be Accepted as Justification for Premia Paid in M&A?.
Gartenberg, C.M. and Yiu, S., 2021. Corporate Purpose and Acquisitions. Available at SSRN 3811690.
Kim, T., Cho, S.H., Larson, E.R. and Armsworth, P.R., 2014. Protected area acquisition costs show economies of scale with the area. Ecological Economics, 107, pp.122-132.
Burberry
According to the Boston Consulting Group, Burberry had settled into a position somewhere in between a cash cow and a dog. The market for fashion, particularly in the UK, was in a state of maturity and slow growth. The Burberry brand was successful, a trait of a cash cow, but had also grown tired, a dog trait. Thus, the brand was beginning to move in the wrong direction. The response on the part of management was to reposition in the brand so that the brand would grow, no matter what the state of the market in the UK was like.
The Ansoff Matrix breaks down a company in terms of how it can grow, with a combination of existing or new markets and existing products and new products. At Burberry, the company decided to grow using both new products and new markets, but without ignoring the traditional success of the company.…...
mlaWorks Cited:
MindTools. (2012). Porter's generic strategies. MindTools.com. Retrieved May 15, 2012 from http://www.mindtools.com/pages/article/newSTR_82.htm
NetMBA. (2010). BCG Growth-Share Matrix. NetMBA. Retrieved May 15, 2012 from http://www.netmba.com/strategy/matrix/bcg/
QuickMBA. (2010). Ansoff matrix. QuickMBA. Retrieved May 15, 2012 from www.quickmba.com/strategy/matrix/ansoff/
Bubey Page |
Case Study- Bubey
CASE OVERVIEW
Bubey, a band known fo its quality, luxuious and oyal association was confonted with stategic issues of style, poduct conventional look and tageted to olde custome segment. The company was not only having concens with thei poduct line but they wee lacking unified copoate vision and stategy. Due to which they stated having loophole in thei luxuious goods maket discipline. Stategic concen fo the company was how does the band image cascade down in the taget maket and how does it ejuvenate itself is a management lesson.
Bubey founded by a young lad of 21-yea of age, Thomas Bubey when he stated the wok by opening a dape's shop in Basingstoke, England. Bubey had captued the maket and builds its band image initially among the Bitish Amy, politician, enowned adventues and celebities with the intoduction of gabadine, a watepoof beathable fabic. The poduct and band development…...
mlareferences would be different from each other. Therefore, it adopted a pricing strategy that builds up the brand which speaks about the company's vision and creating the brand credibility unanimously.
Product Placement strategy:
To attract young and fashion oriented customers company also promoted their product with lower prices in such segments. In the broader perspective it expanded its brand portfolio in the luxury market with the label called Prorsum. The concept behind Prorsum was the introduction of high profile and a high-end brand which was not meant for masses but some elite group authentically interested in fashion and was only displayed in the best stores of the world so the company has limited their distribution for the products under this category.
Promotional Strategy:
For the purpose of promoting company's new brand image it decided to run an advertising campaign with the millions of budget by hiring professional photographer from the industry. The objective behind it was to replace the brand image of old conventional design images with the new fashion oriented outlook. The campaign featured British aristocrats who were fashion icons and shot in the outdoor locations so they could be tailored according to changing seasonal patterns and their product offerings.
Burberry
It is my opinion that Burberry does not meet the spirit of Section C. The company highlights the risks that it faces on pp.54-56 in the 2011 Annual eport. The company presents, however, only generic risks. Twelve risks are highlighted in total, including the loss of key management team members, IT issues, global catastrophes, risk associated with emerging markets, ethics, regulatory compliance, supply chain issues (twice), licensed business risk, economic downturn and unauthorized trademark use.
The problem with Burberry's discussion of these risks is that it is shallow. The company describes the impact, but in a superficial fashion. For example, economic downturn could "lead to a reduction in demand" and failure to adhere to ethical standards could result in "penalties, adverse press coverage, and reputational damage." There is basically nothing in these statements that provides any insight. The investor is already able to draw the line between, say, a problem with…...
mlaReferences:
Burberry 2011 Annual Report. Retrieved April 4, 2012 from http://201011.annualreport.burberry.com/projet/multimedia/files/Full_annual_report.pdf
Burberry's Progress In The 1997-2007 Era -- Case Study nalysis
While Burberry has been renowned as a luxury brand for the last few decades, the company's condition during the nineties proves that the masses are likely to ignore such a firm as long as it fails to raise public awareness through its personality. Being exclusivist can have drawbacks and Rose Marie Bravo actions as a CEO addressed this issue in particular. Bravo basically emphasized the need to reach out to the general public and interact with a market that was already accustomed to purchasing luxury products. The fact that Burberry was already established in this industry alongside of Bravo's ambition made it possible for the company to experience rapid progress during the 2000s, as these two factors provided the general public with the opportunity to observe the institution's values.
Burberry certainly proved that it has the capabilities to occupy a significant position…...
mlaAlthough it has lost part of its identity over the recent decade, Burberry continues to thrive as a result of increasing its customer base. The company previously made products likely to sell in particular markets. However, things have changed during the last few years, as it seems that middle income markets have started to show interest in the company. While individuals in these markets are limited by their buying power, the fact that they outnumber previous customers by far makes it possible for the company to maintain its steady progress. As Bravo puts it, "now the task is to manage the popularity of the brand in a way that lays the foundation for long-term growth. The last thing we want is to be the victim of our own success." (Bravo in Moon, 8) This makes it possible to comprehend the way that success involves risks -- the company's increasing customer database could make people feel less privileged as a consequence of wearing a Burberry product.
One of Burberry's biggest problems in the contemporary society is keeping its traditional customer base. Even though numerous influential individuals like rappers have shown interest in the company, conventional customers might feel that the brand has become more vulgar and that it is no longer providing them with the somber appearance that they were looking for. While it is difficult to determine whether this is true (due to the company's reluctance to discuss with regard to this aspect), it would be safe to say that Burberry has reached a point where it is not quite developed yet. It intends to keep its customer base, but it would be difficult and almost impossible for it not to take advantage of the fact that the masses seem to acknowledge the values the brand brings.
Burberry is currently one of the most important brands aimed at luxury markets, with the company introducing ideas that make it possible for customer to identify with it and to express interest in purchasing its products. With Rose Marie Bravo in charge during the 1997-2005 era, the company has experienced impressive progress while also expanding its customer base to have styles that were previously not associated with the brand.
Placement is another area in which American Eagle can make a change. They can open new stores that offer a slightly less intense shopping experience, and position those stores in a more urban setting than their current suburban base. American Eagle's repositioning should not come at the expense of its current positioning as a relatively fashion-forward mass marketer. The new target market will respond to this, especially the members who have already been shopping at AE. With respect to price, marketing to consumers that have now entered the workforce will give AE the opportunity to move into higher price points. The production costs on the new goods will not likely be significantly higher, so the result will be improved margins.
The advertising will be key to reaching this group. American Eagle currently only reaches this target market incidentally, as their marketing occasionally reaches members of this demographic. The company will…...
Marketing Mix: Promotion Strategies
Assume that you are the newly hired promotion manager for Brooks Brothers and that the VP of Marketing wants you to prepare a report on how the designer's/brand's product/good is currently marketed and to begin to think about what changes, if any, you might want to see made in the promotion of that designer's/brand's products/goods.
What promotion makes the designer's/brand's products different from its competitors?
Brooks Brothers is one of the most famous marketers of classic clothing for men and women in the world. Its generations-old name and reputation for quality distinguishes it from its more recently-arrived competitors. Unlike the classic British fashion house Burberry, it has not tried to brand itself as a more trendy fashion line for the young, and showcased streaming podcasts of its fashion shows and crowd-sourced photographs and fashion advice. Brooks Brothers specializes in simple, clean lines and its current marketing mix is…...
mlaReferences
Spiffing up Brooks Brothers. (2001). Business Week. Retrieved May 17, 2011 at http://www.businessweek.com/magazine/content/01_51/b3762103.htm
Werdigier, Julia, (2009, November 11). Burberry looks online. The New York Times.
Retrieved May 17, 2011 at http://www.nytimes.com/2009/11/10/business/global/10burberry.html
Although the general public is not likely to know what semiotics is the concepts that have been used by the cultural study known as semiotics have been used by advertising and marketing professionals for a number of years. Through the use of semiotics such professionals have successfully used the information and techniques suggested through semiotics to manipulate the consumer culture so that certain products are now considered to represent style, success, and power in modern society. Semiotics, which is simply, the study of signs and their impact on life, is not a recognized science but incorporates many of the same techniques in defining its studies and recommendations. egardless of its acceptance as a legitimate educational discipline, semiotics has successfully transformed modern culture through its use by advertisers and marketers. It has allowed manufacturers such as Burberry and Gucci to become not only leading clothing manufacturers but also cultural icons. Cultural…...
mlaReferences
Ahuvia, A.C. (1998). Social criticism of advertising: on the role of literary theory and the use of data. Journal of Advertising .
Beasley, R. (2002). Persuasive Signs: The Semiotics of Advertising. Berlin: Mouton De Gruyter.
Fox, I. (2010, September 15). British fashion industry now worth nearly 21 Billion Dollars a year. Retrieved August 28, 2011, from Guardian.co.uk: http://www.guardian.co.uk/lifeandstyle/2010/sep/15/british-fashion-industry-report-business
Gers, D. (2009, October 14). Social Climbing: Luxury Fashion Brands Must Embrace Social Media. Forbes .
ALDO SHOES' SOCIAL MEDIA STATEGY
Business Communication Class
MEMOAUDUM
Analysis of the ALDO Shoes' Social Media Strategy
However, as Douglas Bensadoun, VP marketing and creative director has been quoted as saying, "fashion retailing is relentless, it's a beast that needs to constantly be fed" (Surridge, 2012). esearch has identified many of the current best practices and innovative strategies that are being used in the industry and compiled the top three social media focal points that are suggest over the coming year. These mediums include:
Facebook
eddit
Pinterest
MEMOAUDUM
ALDO SHOES' SOCIAL MEDIA PLATTEFOM ANALYSIS
Fashion on Social Media
#1 -- Facebook
#2 -- eddit
#3 -- Pinterest
eferences
LIST OF FIGUES
Figure 1 - Aldo's Official Social Media Channels (Aldo, N.d.)
Figure 2 - Social Media Traffic Statistics for Top Fashion Brands (Boland, 2015)
Figure 3 - Boland (2015) esearch Findings
Figure 4 - Burberry Social Media Ad (Sharma, 2015) 10
Figure 5 - Levis Storytelling Campaign (Sharma, 2015) 10
Figure 6 - Facebook Post of Instagram Campaign (Stampler, 2012)…...
mlaReferences
Aldo. (N.d.). Homepage/Main Landing Page U.S.. Retrieved from Aldo: http://www.aldoshoes.com/us/en_US
ALDO Shoes. (2016, March 23). ALDO Shoes. Retrieved from Pinterest: https://www.pinterest.com/aldoshoes/
Boland, G. (2015, November). Which Brand Sectors are Building the Biggest Social Channels? Retrieved from NewsWhip: https://www.newswhip.com/2015/11/which-brand-sectors-are-building-the-biggest-social-channels/
Cao, L. (2014). Business Model Transformation in Moving to a Cross-Channel Retail Strategy: A Case Study. International Journal of Electronic Commerce, 69-96.
Direct Selling
A lot of companies are resorting to marketing one-to-one or concentrating on a narrow niche. For this reason, the respective corporations find it preferable to make use of direct communication with their clients who are typically a small targeted group that are considered after much thought. Direct communication helps the companies in obtaining a quick feedback from the clients that quickens the pace of their decision making. Over the years, the paradigm of direct communication has come a long way because of the dramatic evolutions in technologies and because of the introduction of new marketing media, particularly the usage of Internet.
Direct mailing and electronic catalogs, facilitated by Internet technologies have allowed for the implementation of models related to direct marketing (Jonker, Piersma, & Potharst, 2006; Liao & Chen, 2004; 2011). esearchers in the past have made use of direct communication as a model of complete business or as a…...
mlaReferences
Bolton, Ruth N., P.K. Kannan, and Matthew D. Bramlett (2000), Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value, Journal of the Academy of Marketing Science, 28 (Winter), 95 -- 108.
Bowman, Douglas and Das Narayandas (2001), Managing Customer-Initiated Contacts with Manufacturers: The Impact on Share of Category Requirements and Word-of-Mouth Behavior, Journal of Marketing Research, 38 (August), 281 -- 97.
Coughlan, A.T., & Grayson, K. (1998). Network marketing organizations: Compensation plans, retail network growth, and profitability. International Journal of Research in Marketing, 15(5), 401 -- 426.
De Wulf, Kristof, Gaby Odekerken-Schroder, and Dawn Iacobucci (2001), Investments in Consumer Relationships: A CrossCountry and Cross-Industry Exploration, Journal of Marketing, 65 (October), 33 -- 50.
Additionally, participating teachers will be drawn from public schools in the same state to mitigate the possibility that geographic factors will intervene to too great a degree. That said, consideration will be made to distinguish the specific school districts, socioeconomic conditions and racial factors present in different schools. Without making any preemptive deductions, these preliminary details may be used to help yield evidence of connections which might be used for future study.
The Likert Scale model of survey will be distributed through the email listserv at participating schools, requesting respondents to rate on a scale of 1 to 5 to what extent they agree or disagree with statements provided in the survey. These statements will primarily concern the presence or absence of sufficient outdoor recreational opportunities and the connection between said opportunities and academic performance.
This would be considered a true experimental quantitative study, where a control and experimental group would…...
mlaReferences
Brown, P.; Sutterby, J.A. & Thornton, C.D. (2002). Dramatic play in outdoor play environments. Parent Teacher Organization Today.
Burberry, J. & Learoyd, B. (2005). Leeds Childhood Obesity Prevention and Weight Management Strategy. Leeds Children & Young People. Online at .
Montessori, M. (1986). The Discovery of the Child. 4th. New York: Ballantine Books.
Office of Communications (Ofcom). (2004). Children's food choices, parents' understanding and influence, and the role of food promotions. Office of Communications. Online at http://www.ofcom.org.uk/research/tv/reports/food_ads/ .
Luxury Brand
The business idea is to start a luxury brand. The concept of luxury is difficult to pin down, because it is relative. Marketers have misused the term commonly, but despite this, and the emergence of a substantial grey area, the category of luxury brand is still understood fairly well by consumers. Theoretically, luxury falls at one end of a luxury-necessity axis. A luxury brand, therefore, implies that the product's benefits fall almost entirely towards the luxury end of this spectrum (Heine, 2014). Any given product has a certain intrinsic value -- a car is a means of transportation. But luxury implies that the intrinsic value is a relatively small portion of the total value. Most of the value in a Bugatti Veyron lies far beyond its utility as a transportation machine. The same can be said for any luxury brand -- very little value in a Hermes scarf has…...
mlaReferences
Heine, K. (2014). The concept of luxury brands. Concept of Luxury.com. Retrieved November 24, 2014 from http://www.conceptofluxury.com/concept/Heine_TheConceptofLuxuryBrands.pdf
Roberts, A. (2013). Louis Vuitton loses ground as world's most valuable luxury brand. Bloomberg. Retrieved November 24, 2014 from http://www.bloomberg.com/news/2013-05-20/louis-vuitton-loses-ground-as-world-s-most-valuable-luxury-brand.html
Roberts, A. (2014). Luxury brands can't avoid the Internet any longer. Business Week. Retrieved November 24, 2014 from http://www.businessweek.com/articles/2014-11-06/luxury-brands-seek-online-sales-as-china-growth-slows
Shea, E. (2014). Future of fashion brands depends on millennial brand affinity. Luxury Daily. Retrieved November 24, 2014 from http://www.luxurydaily.com/millennials-are-a-crucial-target-for-luxury-fashion-marketers/
com, p.2). But unlike a corporation, which has many investor-owners in the form of shareholders, an LLC is not considered separate from its owners for tax purposes and thus the owner is not taxed twice, upon his earnings as an individual and what he or she earns from the LLC. In contrast, a corporation is considered a fictive person under U.S. law ("LLC," 2007, Nolo.com, p.2). Also, shareholders have control over the operations of the corporation, while the owners of the LLC have as much control over the business as a sole proprietor.
hat is all this about the different things that determines cash flow?
Cash flow, quite simply, is how much money goes in and goes out of the organization. Cash flow 'out' includes wages, expenditures on equipment, supplies, and maintenance, and must be tracked on a monthly basis. Also, cash flow may vary from year to year and season to…...
mlaWorks Cited
L.L.C."(2007). Nolo.com. Retrieved 22 Oct 2007 at http://www.nolo.com/article.cfm/pg/3/objectId/D7043E4E-91CB-4B29-B8DC0DDA10AD4B3B/catId/BAAE1B67-F54A-41B4-91943A51F56C3F79/111/182/245/ART/
Sole Proprietor." (2007). Nolo.com. Retrieved 22 Oct 2007 at http://www.nolo.com/article.cfm/objectID/3FD19141-DB91-4FCA-BDB93416A4D05479/111/182/147/ART
Based on the attributes of luxury brand, the luxury brand requires special marketing strategy to achieve brand objectives. The strategy assists in developing global brand reputation as well as forming brand awareness within the global competitive environment. (Moore and Birtwistle 2005).
In the contemporary marketing environment, experiential marketing has become a cornerstone of marketing, and retailing for luxury brand. Experiential marketing is the technique of viewing consumer as an emotional and rational being who aims to achieve pleasurable experiences. (Atwal et al. 2008). Typically, experiential marketing offers customer memorable experiences in order to achieve customer satisfaction and competitive market advantages. The experiential marketing uses different tools to create the memorable experiences for customers. For example, experiential marketing organizes entertainment for customers in order to educate them, allow them to escape the reality, as well as giving them aesthetic objects or places to see. Experiential marketers use different tools to create experience…...
mlaReferences
Atkin, D. (2004). The Culting of Brands: When Customers Become True Believers. New York: Portfolio.
Atwal, G. & Williams, a. (2008). Luxury brand marketing -- the experience is everything! Brand Management .16 (5/6):338 -- 346.
Belch, G.E. & Belch, M.A. (2003). Advertising and Promotion, an Integrated Marketing Communication Perspective (Sixth Edition). The McGraw-Hill Companies.
Bruce, M . And Kratz, C .(2007). Competitive Marketing Strategies in Luxury Fashion Companies. in: T. Hines and M. Bruce (eds.) Fashion Marketing: Contemporary Issues, 2nd edn., New York: Elsevier / Butterworth-Heinemann.
Louis Vuitton Marketing
"Louis Vuitton in Japan" explores the history, heritage and phenomena that the LV brand is today and how it expanded globally to widen its reach to all consumers of luxury. Through strategic extension of its network throughout the world, Louis Vuitton built itself from one city in France to a vast system of inter-related, complex actors that serve the avid, fashion lover. Special emphasis is on the Japanese sector as it contributes an immense magnitude in terms of turnover and profit to annual ones. (Paul, Ferroul, 2010)
Incorporated in the year of 1854 under the name of "Louis Vuitton: Malletier a Paris," Louis Vuitton, the founder, pioneered flat bottom trunks which were an innovation for its early time. The luggage items advocated lightness and superior storage volume. Thirty years later, it increased its geographical scope to London, England at a premium location (Oxford Street). By 1888, it had created…...
mlaReferences
Feroul, C. And Paul, J. 2010. Louis Vuitton in Japan, case study, Richard Ivey School of Business.
Exhibit 7, Louis Vuitton in Japan, 2010, case study, Richard Ivey School of Business
The Foundation, Louis Vuitton in Japan, case study, Richard Ivey School of Business
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