Brand Repositioning of Burberry: Importance, Methods, and Positioning Map
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This report explores the brand repositioning of Burberry, a British luxury organization. It discusses the importance of positioning and repositioning, methods of brand repositioning, and includes a positioning map. The repositioning aims to help Burberry gain a competitive advantage, enter new market segments, and create a new brand image.
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BURBERRY BRAND REPOSITIONING
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Table of Contents INTRODUCTION.......................................................................................................................................3 MAIN BODY..............................................................................................................................................3 Importance of positioning and repositioning...........................................................................................3 Positioning map.......................................................................................................................................4 Methods of brand repositioning...............................................................................................................5 CONCLUSION...........................................................................................................................................5 REFERENCES............................................................................................................................................6
INTRODUCTION Brand Repositioning is basically the process through which an organization changes its brand status within the marketplace. The main aim of this report is to study the brand repositioning of Burberry and analyze its effectiveness. Burberry is primarily the British luxury organization being established in 1856 by Thomas Burberry and headquartered in London, U.K. This report gives an overview of importance of positioning and repositioning, positioning map and methods of brand repositioning. MAIN BODY Importance of positioning and repositioning Positioning is basically the place which brand occupies within the minds of customers and the way in which it is mainly distinguished from other products of competitors. The major importance of positioning is that it enables the marketers to determine that how to communicate their product attributes to customers. Repositioning on the other hand, is altering and changing the position of brand as well as product within minds of customers relative to offering of competitive product. The main importance of repositioning is that it helps the marketers as well as organization to change the perception of customers about their brand and thus create a new image or the target market in order to increase the sales(Ceil, 2018). As Burberry intends to move up and grow in the market, if this repositioning within the luxury market become successful then it will help Burberry to high extent. Firstly, this repositioning will help the company to gain competitive advantage. As various luxury brands like Michael Kors, Prada have reduced their number of handbag designs thus in this view, if Burberry comes up with the innovative and new leather goods like handbag then it will at the end will help the company to gain an edge over the competitors. Secondly, this reposition will also help the company to enter new market segment and enlarge the customer base. The new move of the company to leverage the digital reach and making easier for customer to purchase online thus if this becomes successful then this will help company to enter the new market segment and attract the new and different customers. Along
with this, it will also help the company to create a new perception about their brand and create a different as well as innovative image(Gaustad and et.al.,2019). Positioning map Positioning map also known by the name perceptual map is basically the diagrammatic representation and tool used by marketers for visually displaying perception of customers. Within this positioning map, the current position of Burberry is between high price and moderate quality. Burberry is known for its luxury products having moderate quality as although it brings innovation in its product but in long period of time while company keeps its price of most of the products high. As company intends to move up-scale through repositioning thus this overall process will eventually change the perception of people towards the brand. The repositioning will increase the score of Burberry between the quadrant of high quality and high price. This will eventually help the company to attain competitive advantage(FERNIE and PERRY, 2018). Gucci is the another luxury brand which in the positioning map currently falls between high price and high quality. In terms of the quality, Gucci provides modern and edgy style of the products which have high price. Gucci frequently comes with the new and modern style to suit the modern and luxury personality of customers and thus charges high price due to high quality. Primark, on the other hand mainly targets customers of middle class group and thus their product are of low quality as well as of low price. Thus, the products of this company fall in the quadrant low price and low quality. Most of the products of Primark targets the customers having moderate income and thus due to this, Primark faces a tough competition from the other luxury brands(Nervino, 2018). Positioning map High quality/Low priceHigh Quality/high price Burberry Gucci Low price/low qualityHigh price/low quality Primark
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Methods of brand repositioning There are various strategies which Burberry can use in order to achieve the repositioning and change perception of customers. Brand rejuvenation This is one of the most effective strategy as well as tactic which can be used by Burberry. This is often by the name brand rejuvenation. It is basically the concept for adding new values as well as attributes within existing products for enhancing the overall appeal. Burberry can use this method for launching its brand in a totally different way. This brand rejuvenation will primarily help the company to refocus attention of the customers on existing brand. Besides this, along with the improvement Burberry can also add new prefix in its existing products like super, premium, new, strong etc. This will eventually help the company to establish a new position of itself within minds of customers(Mróz-Gorgoń, 2016). Changing distribution channel This is the another method as well as strategy which can be used by Burberry for achieving repositioning. This is considered as the most effective method of changing channel as well as distribution strategy. Burberry can change its distribution channel and shift its focus to more innovative one in order to grab the attraction of customers to high extent. Along with this, Burberry can improve the quality of its existing distribution channel as well as explore various suppliers for delivering its products to the new market segment. In addition to this, company can also rely on various advertising channels, like offline channels instead of just depending on the online channels like seminars, charitable events, direct marketing etc(Gaustad and et.al.,2019). CONCLUSION It has been summarized that reposition plays a great role within the marketing strategy. Repositioning enables the organizations to change the perception of customers towards the definite brand and product. The positioning map basically shows the position of a specific brand within the market.
REFERENCES Books & Journals Ceil, C., 2018. Burberry Case Study about Consumer Behavior.Available at SSRN 3520418. FERNIE, J. and PERRY, P., 2018. Luxury supply management chain.Logistics and Retail Management: Emerging Issues and New Challenges in the Retail Supply Chain.p.149. Gaustad, T and et.al.,2019. Too much of a good thing? Consumer response to strategic changes in brand image.International Journal of Research in Marketing.36(2). pp.264-280. Mróz-Gorgoń, B., 2016. CO-BRANDING AS A STRATEGY-FASHION MARKET PERSPECTIVE: PRESTIGE OR MASSTIGE?.International Journal of Sales, Retailing & Marketing.5(4). Nervino, E., 2018. Social media is the new black: a social semiotic analysis of luxury branding discourse.