Final answer:
Burberry's market segmentation strategy involves price segmentation to cater to different customer segments within the high-end luxury market, providing both entry-level and couture items.
Step-by-step explanation:
Burberry is utilizing a market segmentation strategy that is often seen in the luxury retail sector. This strategy is a form of price segmentation, where the company targets different customer segments with a variety of price points. By offering entry-level luxury items, Burberry can attract aspirational purchasers who desire to own something from a high-end luxury brand. On the other end of the spectrum, the couture items cater to the wealthiest customers who are seeking exclusivity and customisation. This approach enables Burberry to cover a broader range of the luxury market while still maintaining its brand prestige.
Comparing this to another brand, Abercrombie & Fitch, which trademarked "casual luxury" to sell their products, shows a similar approach to segmentation. Abercrombie & Fitch used the imagery of the East Coast yacht club to create a specific lifestyle appeal, targeting customers who are interested in that particular way of life and who are willing to pay for the associated status.