Case Study: Burberry Brand Positioning and Repositioning Strategies

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Case Study
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This case study analyzes Burberry's positioning and repositioning strategies within the luxury goods market. It explores the relevance and importance of these strategies, focusing on understanding customer needs and addressing competitive pressures. The analysis includes a positioning map to illustrate Burberry's current and desired market position, along with an examination of perceptual mapping and market positioning techniques. The report highlights Burberry's efforts to move into a higher-priced, high-quality segment, and discusses the methods the brand might employ to achieve this repositioning. The conclusion summarizes the company's progress and its aim to become more profitable through strategic market adjustments. References to academic sources support the analysis.
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CASE STUDY BURBERRY/ MULBERRY
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INTRODUCTION
Positioning is a concept being used by the marketers in order to know what should the
business must do so that they can maintain there market share in the marketplaces. In positioning,
the marketing department creates an image for the product based on its intended audience.
Repositioning marketing refer to a major change in the working of the company which is done so
that the firm can move up in the market.(Latif, Sibghatullah and Siddiqui, 2016)
MAIN BODY
TASK 1
Explain the relevance and importance of positioning and repositioning for marketers.
The marketer needs to position and reposition there product or services being provided to them in
order to maintain there market share. In the case study Burberry is trying to reposition its product to
maintain the competitive edge.(Roy, 2019)
Importance of positioning
Understanding customer need
There must be a clear understanding of the needs and wants of the customer so that exactly
the customized product can be designed in order to suit there customer. Burberry does not want to
out price there product as done by Mulberry as this will lead to some customer not able to purchase
the product because it becomes unaffordable for them. This mainly include the customer between
the age of 18 – 24 years. So Burberry is trying to understand the need of the whole market so that
they can increase there market share.
Weigh competitive pressure
Marketers needs to consider the pressure faced by there competitors which in the case of
Burberry includes LVMH's Celine and Givenchy as they are established brand with an excellent
brand image. Effectively positioning of the product is very important to may the consumer believe
that Burberry product is better than there competitors.(Luo, 2016)
Importance of repositioning
Internal environment
Repositioning is required when the company is changing there way of leading the
organisation. Burberry is trying to reposition itself in providing luxury product. The company is
going to increase there price of the product. Burberry is also creating new luxury leather goods and
accessories to attract new high-end customers. This will require them to reposition its operations,
leadership and strategy so that they can gain competitive advantage in the marketplaces.
Market environment
Burberry must look at the various market environment about how the economy is, the
change in the trends, change in the political factors and the stability of the politics in the country,
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after this they should plan accordingly to face these challenges.(Chik, 2015)
ACTIVITY 2
How the positioning of the brand will change as result of this process?
Positioning map
A positioning map is a graphical representation which helps in studying and analysing the position
of the product of the company. The position map have 4 quadrants which are low price low quality
the companies operating in this quadrant is very unlikely to succeed in the long run, low price high
quality the middle class people prefer these companies very much, the high price low quality which
are the least preferable and no company wants to operate in this quadrant and the last is high quality
high price people who prefer luxurious product purchases product of this quadrant. Burberry is
currently in the high quality low price quadrant, and the company wants to move to the high quality
high pricing quadrant. The company is considering to increase there prices so that there margins are
increased but they should remember that by doing this they will rule some customer out as they will
not be able to afford the luxury prices of Burberry.
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Gucci is in the high quality high price quadrant as there product are extremely expensive
and they only target the high class people only and Primark is in the low quality low price
quadrants they provide cheap product for the middle and low class people.
Two methods which brands such as Burberry might use to achieve positioning.
Perceptual mapping
This means that what the people think about the product and services of Burberry. It also
includes the customer thinking about the different individual of the organisation. Everyone knows
that how dynamic the environment is and that the changes are taking place at a fast pace then ever,
therefore the company like Burberry at time of positioning there product should consider the
consumer attitude toward them like the marketability of their product, brand image in the eyes of
the customer, substitute available for the customer etc. therefore time and again Burberry’s need to
position itself so that they do not face problems in the long term. Comprehensively it can be told
that the perceptual mapping include both the people of the organisation as well as the brand of the
organisation. (Appel, 2017)
Market positioning
This is a process for establishing and defending the position in the market. The positioning
encompasses the branding advertising promoting and pricing of the product so that the product is
marketable for sale in the market. For this Burberry need to identify target customer, recognize the
brand image etc.
CONCLUSION
From this report we have concluded that the company is currently trying to reposition its
marker position. The report is divided into 3 tasks in which the first task discussed the relevance
and importance of the positioning and repositioning of Burberry. Then the next task there is a
positioning map given and the explanation is discussing in which quadrant the company is and to
which quadrant the company wants to move. At last this report has the method of achieving
positioning in the market. Comprehensively the company is performing well and in process to
reposition in the market to become more profitable.
REFERENCES
Books and journals
Appel, S.and et.al., 2017. Efficacy of head repositioning in restoration of electrophysiological
signals during cervical spine procedures. Journal of Clinical Neurophysiology. 34(2).
pp.174-178.
Chik, A., 2015. Recreational language learning and digital practices: Positioning and repositioning.
In Discourse and Digital Practices (pp. 124-141). Routledge.
Latif, A., Sibghatullah, A. and Siddiqui, K., 2016. Repositioning Horlicks in Pakistan. Journal of
Marketing Management and Consumer Behavior. 1(2). pp.44-53.
Luo, H., and et.al., 2016. Dpdr-cpi, a server that predicts drug positioning and drug repositioning
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via chemical-protein interactome. Scientific reports. 6. p.35996.
Roy, A., 2019. Studying positioning and repositioning of brands using multidimensional scaling.
Journal of Education for Business, pp.1-6.
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