Burberry's Expansion into the Luxury Home Decor Market Assignment Sample

Exploring Burberry's Expansion into the Luxury Home Decor Market

Introduction

One of the main aims behind conducting this study is to look into the possibility of expanding the prestigious UK brand Burberry into the premium home décor industry in the United States. Burberry is a well-known brand with a substantial market presence in the high-end apparel sector (Bug, 2016). The luxury home décor business in the United States is enormous and has shown steady growth patterns. Recent Mintel surveys show rising consumer expenditure on furniture for the house. Burberry continued to hold a healthy market share of about 5% in the world's luxury apparel industry in 2023, further establishing its position as a leading British brand. The premium home décor business in the United States expanded significantly, topping £3.094 billion in sales (F2F, 2023). Notably, sales of high-end home décor items had a noteworthy increase of 12% in the same period.

Methodology

As part of this research process, a thorough analysis of data from a range of sources, including Mintel reports, trade publications, and market trends analysis. The study has investigated the top companies in the market for luxury home decor and their business practises. The study was able to comprehend customer preferences and new trends using observational study.

Findings

Existing brand and Brand Values

The renowned UK-based business Burberry has a unique place in the high-end fashion industry. An organization's identity, beliefs, and promises are represented through a multidimensional construct called a brand. A brand extension uses the equity of an existing brand to expand into new areas (Statista, 2023). The six components of brand identity are body, personality, culture, relationship, reflection, and self-image, according to Kapferer's Brand Identity Prism. These elements work together to influence how customers view a brand. The brand principles of Burberry include innovation, British history, and timeless elegance. These ideals are in line with its expansion into luxury home design, which enables customers to incorporate the brand's refinement into their living areas. This expansion makes use of Burberry's strong brand recognition and appeals to customers' wishes to match their interior decor with their unique tastes (Phan, 2021).

(Phan, 2021)

Description of the Target Market

The wealthy Americans who want to design chic living spaces make up the target market for Burberry's premium home décor expansion. According to Mintel data, people are increasingly buying upscale home furniture to express their status and aesthetic preferences. According to TGI statistics, the target market predominantly comprises of high-earners between the ages of 30 and 50, with a focus on homeowners and people who appreciate luxury goods. This approach is in line with the STP marketing planning process. The goal of segmentation is to determine the essential traits of the wealthy consumer segment. By focusing on the people most likely to identify with Burberry's brand values, targeting is accomplished. Positioning highlights how luxury fashion can be incorporated into domestic settings, allowing customers to express their unique sense of style beyond clothing. The brand extension is positioned to take a sizable chunk of the U.S. luxury home decor industry by comprehending and accommodating the tastes of this target demographic (Oe, 2020).

Analysis of the New Market, Including Trends

PESTLE

Political variables, like exchange arrangements, can influence import/product of extravagance things. Financial strength impacts purchaser spending on superfluous merchandise like home stylistic theme. Sociocultural patterns underline customized living spaces. Mechanical progressions influence internet business and customization choices. Legitimate contemplations include licensed innovation privileges and shopper insurance regulations. Natural worries advance maintainable and eco-accommodating plan decisions (Bastien, 2019).

Ansoff's Grid and Growth Strategy

Ansoff's Grid sorts development techniques into four quadrants: market penetration, market development, product development, and diversification. For this situation, Burberry's expansion into extravagance home style addresses an item improvement methodology, utilizing the brand's value in another item classification. The brand's current client base fills in as an establishment for market entrance. Market improvement is worked with by entering the U.S. extravagance home stylistic theme market. By benefiting from its standing for refinement, Burberry can effectively expand its portfolio, meeting developing buyer inclinations while lining up with the brand's guiding principle. This essential methodology limits risk while amplifying development possible in the new market (Heracleous, 2023).

An Explanation of the New Product

A variety of items are available in Burberry's premium home décor line to improve living areas. A foundation for comprehending this growth is provided by Tauber's Brand Extension Options. Line expansion entails the introduction of variants of already-available items while retaining brand coherence. This is consistent with Burberry's strategy, which includes providing goods like upscale dinnerware and luxury beds. With the use of the signature Burberry pattern and premium materials, packaging enhances perceived value while reflecting the elegance of the brand. The name of the company, "Burberry Home," denotes an expansion of the well-known brand into domestic settings. It takes use of Burberry's sophisticated reputation. Brand positioning places an emphasis on fusing fashion and interior design so that customers can showcase their personal style in their homes. Burberry successfully places itself in the market for luxury home design by utilising its considerable brand equity while maintaining its basic principles and clientele (Kareem, 2021).

Competition

Conclusion

Burberry's brand development into high-end home design has a lot of commercial potential. The expansion capitalises on the brand's core principles and market positioning by leveraging its well-known brand reputation and aligning with the rising trend towards curated living spaces to meet the needs of wealthy consumers for exquisite and personalised home settings.

References

• Bastien, V., 2019. The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands, s.l.: s.n.
• Bug, P., 2016. Burberry : a model for successful technology integration, s.l.: Hochschule Reutlingen.
• F2F, 2023. UK fashion house Burberry's revenue climbs to £3.094 bn in FY23. [Online]
  Available at: fibre2fashion.com/news/fashion-news/uk-fashion-house-burberry-s-revenue-climbs-to-3-094-bn-in-fy23-287666-newsdetails.htm
  [Accessed 19 August 2023].
• Heracleous, L., 2023. Strategy and Organization, s.l.: The University of Warwick.
• Kareem, A. T., 2021. The Intellectual Luxury in The Interior Design. Review of International Geographical Education Online, 11(2), pp. 92-104.
• Oe, H., 2020. A Discussion of a Luxury Apparel Brand Strategy in an Emerging Market: Conceptual Model with Network Perspectives, s.l.: Josai International University.
• Phan, M. C. T., 2021. Social Media and Luxury Brand Management: The Case of Burberry. Journal of Global Fashion Marketing, 2(4), pp. 213-222.
• Statista, 2023. Brand value of Burberry worldwide from 2010 to 2022. [Online]
  Available at: https://www.statista.com/statistics/985253/burberry-brand-value-worldwide/
  [Accessed 19 August 2023].