‘the Capital Asset Pricing Model (Capm) Is a Very Useful Model and It Is Used Widely in the Industry Even Though It Is Based on Very Strong Assumptions. Discuss in the Light of Recent Developments in the Area.’

http://hbr.org/2013/01/burberrys-ceo-on-turning-an-aging-british-icon-into-a-global-luxury-brand

The Burberry brand has an extended British history in making top class fashion for the wealthy consumer. However before 2006, it faces series of marking errors. With sale revenue growing at an eye-watering two percent per annual, product position was obvious not in place and it fail to interest the targeted customers.

Failing to build a mean to commutate with consumer has also led Burberry being isolated from the market. Under the twenty-three licensees around the world, various products were produce under the brand from cheap Dog cover-ups to an eye-watering Luxury Suit. Furthermore, to make matter worst each market had totally different price point, which destroys the consistency of the brand. In this assignment, I will discuss the reason why Burberry wasn’t doing as it could by using various marketing concept to explain the idea.

Licensing can destroy a brand’s unique strengths. Burberry fail to position it’s product in the market.

Before Angela Arendts’ time as the CEO of Burberry, the product range for Burberry from the licensing branch was a ‘branding disaster’, it produce from dog cover-ups to luxury suits, It was unable to create a sense of luxury and give impression that ‘the product it produce was for Sunday baseball training’ (Smith The Economist 2013). Here we can see how wrong positioning of product in the market, can go against its brand image. As (Doyle 1993) rightly point out to compete in the chosen segment with the chosen differtial is just as important as choosing one. This was later agree by (Brooksbank 1994) who suggested that to have a product in the right position, you need to understand how the marketing mix work and bring out the strategy instead of putting different element all in one brand. From this example it demonstrate the giving away long term interest in exchange of short term prosperity can be suicide for a brand. Moreover, the...