The centralized brand management that happened under the watch of Angela Ahrendt

Question

The centralized brand management that happened under the watch of Angela Ahrendts was a strategic move that resulted in a better brand equity. Is this a move that should remain a staple of the company's brand strategy, or what decisions/strategies should Burberry be making moving forward? The centralized brand management that happened under the watch of Angela Ahrendts was a strategic move that resulted in a better brand equity. Is this a move that should remain a staple of the company's brand strategy, or what decisions/strategies should Burberry be making moving forward?

Explanation / Answer

Yes, this move initiated by Angela Ahrendts of having a centralized brand management should remain a staple of the company's brand strategy. Brand is very important for the future of Burberry. The centralized brand management strategy adopted by Ahrendts revolutionized Burberry to a profitable luxury venture. Before the brand management strategy, Burberry was largely a licensed business that was in the hands of distributors. As such, the luxury brand was losing revenue due to counterfeit goods and Ahrendts noticed the gap hindering profitability (Hill & Hult). She reorganized the Burberry around brand the as a beacon in which the company would serve. Branding has become a unifying factor for all Burberry products, online presence, public relations, and advertising.

The centralization strategy brought the organization together by buying and disclosing its distributorships. The un-profitable retailers and stores across Europe were closed driven by the desire for foreign market control. The future of Burberry looks promising with more brand innovations and expansion. The organization has invested a recent product dubbed Customer 360 intended to track all customers shopping trend so that the sales and marketing team can recommend other products to buy in its product line. With the adoption of RFID tags in the company’s stores, customers can flash products in front of interactive screens to show the detailed lining of handbags, raincoats and any other products. Customer satisfaction and loyalty are one of the future strategies the brand is exploring.

Thus if centralized brand management remains a staple of the company’s brand strategy then the company will be able to innovate more with regards to its brand. This will eventually shore up the brand equity of Burberry and will help in taking the brand from strength to strength in the future.

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