Question

Burberry is pursuing a focused differentiation strategy aimed at high-end luxury customers. However, the company is also employing a segmentation strategy to separate customers within that focus. The strategy offers items at an entry-level price point for customers who desire to be like celebrities such as Sarah Jessica Parker as well as couture items for those richest and celebrity customers. Which strategy is Burberry pursuing?

Answer 1

Answer:

Burberry is pursuing an umbrella strategy

Explanation:

Companies can choose three different kinds of strategies based on their strategy to offer a standard or customized product to customers with different needs .

An umbrella branding strategy, is a marketing practice that involves many related products under a single brand name.

With the new items at an entry level, Burberry´s  pricing strategy is such that it does not compromise on the quality but it does offer products at different price levels to target a variety of customers.