Transcript burberry.ppt

Burberry
Pennies for Prestige
Because of the perceived added
value of the Burberry brand they
can charge $996 for a trench
coat.
 However, at an outlet store for
Burberry you can find this same
coat for $305, which is a savings
of 69%.

Outlets, Not Worth Cost

However, given the fact that owning
products from Burberry is quite
exclusive. People are willing to pay the
full retail price.
Burberry really has no reason to
continue the use of outlet stores
because of this.
 http://www.youtube.com/watch?v=Ae3p
MrJMoxA&feature=related

Spare Change
Burberry saw little change
overall in sales even after
withdrawing support from there
outlet stores.
 Even seeing a growth increase
in the third quarter of 22%
 Overall sales in retail stores
remain strong, and this saves
the company money.

Questions
How many people have spent money on
a luxury product when another one
would have sufficed?
 What motivated you to spend more
money on these brands?
 Do you feel that the product was worth
the extra money?

References
http://www.burberryoutletonlinesale.net/burberry-men-trench-coat-003p-228.html
http://www.youtube.com/watch?v=Ae3pMr
JMoxA&feature=related
http://www.ivpressonline.com/business/sns
-rt-us-burberrytre80g0cq20120116,0,2715763.story