Recently, Burberry has adopted a new price strategy, which is that they do not discount their core products. It seems like they are very successful within the market during the last 3 months of 2010. This strategy is already adopted by other brands, like Channel, Gucci, Louis Vuitton. It has already been proved to be effective in promoting their luxury brand image, and this strategy never failed in the market. However, it is not easy to build on their brand value rapidly, such as creating value, which is key point of marketing. Once the brand name is settled in market, the price strategy, such as the one used by Burberry, can be very effective in building brand name stronger. This resulted in increasing revenue, like Burberry has been experiencing nowadays. As a result, people want to consume products that are shown to be a symbol of high quality. Only certain group of people can handle this price, and this fact can incur stronger satisfaction as price goes up.
http://www.bbc.co.uk/news/business-12214554
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