Burberry Marketing
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1. What was Burberry’s brand equity?
A brand is a name or symbol used to identify the source of a product. When developing a new product, branding is an important decision. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity. Brand equity is an intangible asset that depends on associations made by the consumer. There are three perspectives from which to view brand equity:
1. Financial – One way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay $100 more for a branded television over an unbranded television, the premium provides important information about the value of the brand. 2. Brand extensions – A successful brand can be used as a platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Appropriate brand extensions can enhance the core brand. 3. Consumer-based – A strong brand increases the consumer’s attitude strength toward the product associated with the brand. Attitude strength is built by experience with a product. The consumer’s awareness and associations lead to perceived quality, inferred attributes and eventually, brand loyalty. [i]’
The brand equity in the Burberry line of clothes clearly lies in its infamous checkered pattern. “The Burberry check pattern was introduced in the early 1920s as a lining to its signature trench coat, and became a registered trademark. Burberry’s trench coat was chosen to be the official coat of the British army in World War I.[ii]” Over the ensuing years, celebrities, politicians, socialites, movie stars, kings, and explorers all donned the checkered flag. “As a result, the brand increasingly became a symbol of both luxury and
1. What was Burberry’s brand equity?
A brand is a name or symbol used to identify the source of a product. When developing a new product, branding is an important decision. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity. Brand equity is an intangible asset that depends on associations made by the consumer. There are three perspectives from which to view brand equity:
1. Financial – One way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay $100 more for a branded television over an unbranded television, the premium provides important information about the value of the brand. 2. Brand extensions – A successful brand can be used as a platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Appropriate brand extensions can enhance the core brand. 3. Consumer-based – A strong brand increases the consumer’s attitude strength toward the product associated with the brand. Attitude strength is built by experience with a product. The consumer’s awareness and associations lead to perceived quality, inferred attributes and eventually, brand loyalty. [i]’
The brand equity in the Burberry line of clothes clearly lies in its infamous checkered pattern. “The Burberry check pattern was introduced in the early 1920s as a lining to its signature trench coat, and became a registered trademark. Burberry’s trench coat was chosen to be the official coat of the British army in World War I.[ii]” Over the ensuing years, celebrities, politicians, socialites, movie stars, kings, and explorers all donned the checkered flag. “As a result, the brand increasingly became a symbol of both luxury and