Burberry Reinventing the Brand

Better Essays
STUDENT NUMBER | SURNAME | OTHER NAME (S) | SEMINAR PAPER NUMBER | 1136310 | PRATT | EBO PANYIN | 5 |

Kotler and keller (2009), suggests that brand extension is the introduction of new products into a market by a company, under an already existing strong brand. This could be an extension of the brand or may not have anything to do with the existing brand. An existing brand that gives rise to the brand being extended is known as the parent brand. There are advantages and disadvantages involved in brand extensions.

David A. Aaker though limits brand extension to “the use of a brand name established in one product class to enter another product class”.
Jim Riley looks at brand extension as the introduction or re-lunch of products through an existing successful brand name in the same market, and also companies enter markets, come up with new brands and product categories through successful brands. He also talks about brand stretching which is introducing branding in unrelated markets. An example Giorgio Armani, a cloth production company or designer entering into fragrances, Starbucks, a coffee house entering into ice cream and the production of liquor.
Brand extensions has its own advantages and disadvantages, with some of the advantages being facilitate new-products acceptance, provide positive feedback to parent brand and company, reduces risks, reduce costs of introductory lunch campaign, packaging cost is cut down too, serves as basis for other extensions and acceptance of new products are made easier. On the other hand, these advantages have its corresponding disadvantages being; brand line extension can cause a parent brand to loose its identity, brand dilution, confusion among costumers, loss of reliability, damage to company’s integrity, spurious linkages, and if the brand extension has no advantage over its competitive brands in the new category, it will fail.
Facilitate new-product acceptance, due to the brand name and goodwill of parent brand costumers



References: 1: kotler,P and keller,k (2009). Marketing Management. 13th ed. New Jersey: pearson education,inc . p298-p300. 2: Belsky, G. (2012). The 10 Best Brand Extensions Ever. Available: http://business.time.com/2012/03/14/the-10-best-brand-extensions-ever-according-to-me/slide/rolls-royce-aircraft-engines/. Last accessed 04th Nov 2012. 3: David A. Aaker, Managing Brand Equity, The Free Press, NY, 1991, pg. 208 4: Riley, J. (2012). Brand Extension & Brand Stretching. Available: http://www.tutor2u.net/business/marketing/brands_extension_stretching.asp. Last accessed 4th Dec 2012. 5: Halve, A. (2012). brand extension:good or bad?. Available: http://www.business-standard.com/india/news/brand-extension-good-or-bad/461868/. Last accessed 7th Dec 2012.

You May Also Find These Documents Helpful

  • Powerful Essays

    Brand and Burberry

    • 3335 Words
    • 14 Pages

    Summary Burberry, founded in 1856, is a leading international luxury brand. Burberry designs, manufactures and licenses apparel and accessories for distribution through its own stores and network of prestige retailers worldwide. In early 1998, the new management team at Burberry set out its strategy to reposition and revitalise the brand, which resulted in significantly improved results and strengthened the base to build the business. With continuous growth since last five years, Burberry has faced…

    • 3335 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Burberry

    • 803 Words
    • 3 Pages

    Burberry Burberry has positioned itself well among its competitors as a result of focusing on “functional luxury”. By augmenting its product line to include both fashion and continuity products, Burberry can meet the needs of a wider range of customers. The fashion component addresses the latest trends while continuity products maintain the integrity of the timeless and very classic Burberry “feel”. While many of its competitors do offer a complete product line of apparel and accessories, some…

    • 803 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Burberry

    • 693 Words
    • 3 Pages

    Burberry case http://laurenmjacobson.wordpress.com/case-studies/burberry-case-study/ TARGET Who is Burberry’s target customer? Burberry’s target customer is someone who wants luxury while being functional. The brand’s point of difference with other luxury brands is that they could be luxury, aspirational, and functional. Burberry decided they were going to reach these customers from Bravo identifying their niche betweens labels of Polo Ralph Lauren and Giorgio Armani on the apparel side…

    • 693 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Burberry

    • 1079 Words
    • 5 Pages

    1. Introduction 1.1 Burberry was founded in 1856; originally focusing on producing ‘innovative functional outwear.’ Over the years Burberry has adapted to changing trends and tastes to suit the consumers wants and needs. Additionally the extension of their product portfolio, for example their perfume and accessories range, is a response to competition from leading brands such as Ralph Lauren and others. Burberry set out to create a luxury, premium brand image, however in recent years in Britain…

    • 1079 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Burberry

    • 493 Words
    • 2 Pages

    Burberry Introduction Burberry is a UK fashion brand that under the helm of creative director Christopher Bailey has defied the recessions in both the UK and US and global spending slowdowns to become one of the top 100 most valuable brands in the world with a vast product range, and an impressive portfolio of worldwide stores. In 2012 it ranked 51st in the FTSE 100 and had a market capitalisation of over 6.5 billion. Burberry’s main competitors are Armani, Coach, Polo and Gucci, their positioning…

    • 493 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Burberry

    • 1247 Words
    • 5 Pages

    When it comes to Burberry, it is widely believed that this brand is extremely well-known. Burberry is a great corporation with a glorious history. It was established in a small town named Basingstoke in UK by a twenty-one-year-old boy. At the very beginning it was just a small-scale tailor shop. By the year 1870, that tailor shop had grown to a large-scale general merchandise store because of its creation and high-quality products. An important year for Burberry was 1891, when the firm was formally…

    • 1247 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Burberry Case

    • 2746 Words
    • 11 Pages

    Marketing strategy Case 3 – Burberry: reinventing the brand [pic] M2 AEI, CAI. Année 2010-2011 Le groupe est composé de : Sandrine MONTEIRO 20704637 Hang TRAN THI THU 20411867 Tony TRAN 20809641 Saysavath VANISOUVONG 20808838 How were the clothes bearing the Burberry name augmented to create a brand before the 1980s? Mix marketing (before 1980s) Product: • In 1856, Thomas Burberry proposed gentlemen’s outfitters (men’s clothes) with high quality clothes. • After that…

    • 2746 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Reinventing

    • 4976 Words
    • 20 Pages

    Reinventing Your Business Model by Mark W. Johnson, Clayton M. Christensen, and Henning Kagermann In 2003, Apple introduced the iPod with the iTunes store, revolutionizing portable entertainment, creating a new market, and transforming the company. In just three years, the iPod/iTunes combination became a nearly $10 billion product, accounting for almost 50% of Apple’s revenue. Apple’s market capitalization catapulted from around $1 billion in early 2003 to over $150 billion by late 2007. This…

    • 4976 Words
    • 20 Pages
    Powerful Essays
  • Good Essays

    Burberry Swot

    • 498 Words
    • 2 Pages

    perfumes, beauty products. Burberry is Interbrand’s top 100 global Brands this year and has been heralded as one of the most innovative brands in recent times, taking deep strides in the digital world. Its record sales are further testament to its strong branding. * * Diversified network Burberry distributes its products through retail, wholesale, e-commerce and licensing distribution channels. This balanced mix diversifies distribution and reduces risk. Burberry sells its products to the…

    • 498 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Burberry Case

    • 1940 Words
    • 8 Pages

    Burberry-Case Write up André Costa – student 894, Class TB, Marketing in a Dynamic World 19-09-2011 Burberry represents nowadays one of the most successful fashion brands across the world. Founded in 1856, the company’s expansion and growth was the result of an accurate management planning and a recent winner marketing strategy that will be explored below in this article. The focus on this case study is based on the challenge of repositioning in the market the brand Burberry, which by the…

    • 1940 Words
    • 8 Pages
    Good Essays