Burberry Group PLC: How Much Can a Company Really Control Its Brand? (A), (B)
In the early 2000s, Burberry experienced brand perception problems through counterfeiting. Their staple Burberry plaid pattern was being worn by individuals associated with less-than-respectable reputations. Angela Ahrendts, named CEO in July 2006, restored the Burberry name through several actions before moving on to Apple Inc. to be its senior vice president of retail. This case study examines what can happen – and what can be done – when a company loses control over its brand.
- To highlight the conflict that arises when the brand image of a particular company suffers from damage by association
- To demonstrate the limited options available to a CEO when a particular demographic of customers (associated with an undesirable segment and not the brand’s targeted audience) choose to use the company’s products
- To provide an example of the risks and liabilities a company takes on when it chooses to license to third parties the rights to particular characteristics of the brand
- To encourage the analysis of strategies of brand promotion and brand protection vis-à-vis potential market segments/demographics
- To highlight the effectiveness of a strong leader and the uncertainty that arises from a transition of power