Relevance and Importance of Positioning and Repositioning for Marketers
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This case study explores the relevance and importance of positioning and repositioning for marketers. It discusses the implications for business performance and the methods of repositioning. The case study focuses on Mulberry, a UK-based luxury fashion company.
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 1. Explain the relevance or importance of positioning and repositioning for marketers.............1 2. Explain the implications for the performance of the business if move is successful..............2 TASK 2............................................................................................................................................2 1. Positioning map and how positioning of the brand change the result of this process.............2 TASK 3............................................................................................................................................3 1. Method of repositioning...........................................................................................................3 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................5
INTRODUCTION Positioning refer to the spot where brand filled in the consumer's mind and it is totally different from their competitors. If they achieve the strong position in the consumers mind then it is very difficult to change. It is the most effective marketing concept which every organization follow for impressive results(Bao and et.al., 2016). Repositioning is the process of change in the brand or product positioning. In order to reposition, management have to change their target market in order to understand the products. This report based on the case study of Mulberry which is UK based luxury fashion company founded in 1971 by Roger Saul. TASK 1 1. Explain the relevance or importance of positioning and repositioning for marketers Positioning and repositioning both are major strategies which by the companies in order to make their place in the consumer's mind. Accoutring to MINTEL fashion Accessories report of UK reported that many luxury brands that posted results in 2016 and first quarter of 2017. it increases in the tourist sector of the UK due to weak sterling referendum. Burberry reported the double digit sales growth after 30thSep 2017. But in Q2, it was reduces because of Sterling's weakness. Along with this company reported 10% decline in global revenue around £ 2.8 billion in 2017. on the other side, turnover of Mulberry company of UK increases around 8.6% for the year ended 31stmarch 2017. Around 60% of UK sales reported in the domestic market which is very impressive and all are possible with the help of marketing strategy of positioning or repositioning. It's important or relevancy mentioned below: Poisoning is very essential for the organization which helps them to understand the needs of consumers(Gokdogan, Oguz and Baran, 2017). So management make their strategies accordingly which maximise their demand as well as revenue. With the help of positioning marketers able to communicate all the attributes to the marketers which make them capable to target their customers accordingly. Repositioning help the marketers to provide strong competitive position in the market which make them able to achieve their business goals & objectives. It also helps in improving sales because they use various communication or promotional strategy in order to make people aware about repositioning of products. 1
2. Explain the implications for the performance of the business if move is successful In context of Burberry company, it is reported that revenue of the company reduces after September 2017. In order to face this issue, marketers find various solutions such as they reposition their brand in the premium market. To improve their sales as well as revenue, Burberry company follow reposition method where they reposition their product in the new market or target suitable customer for products. According to survey, 16-24s customers are the luxury shoppers and they are the frequent buyers. In the highly competitive market, Mulberry made a mistake where they increases the price of their products so Burberry does not wanted to repeat the same mistake(Huntley and et.al., 2015)). Burberry repositioning their brand where they planning for the digitalization or offer products online which is beneficial for customers to order goods directly from stores to home. It is the most beneficial move which taken by the company in order to maximise their sales as well as revenue which further helps in achieving business goals & objectives. TASK 2 1. Positioning map and how positioning of the brand change the result of this process Positioning map is the procedure of analysing company's success after implementing all the strategies which business used to maximise sales as well as revenue. With the help positioning business able to expand their market shares. In context of Burberry, they use digital media platform for this purpose and below mention positioning map shows the positing of three different companies such as Burberry, Gucci and Primark. 2
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Above mention positioning map shows that Burberry is in good position because it is not so expensive and provide high quality products (Positioning of Burberry,2018). Primark has low quality goods which is also very cheap ion comparison to other brands (Positioning of Primark, 2018). In addition, Gucci has low working capability in relation to Burberry and it is also very cheap in prices (Positioning of Gucci,2018). Burberry company achieve high position in the market because of their attractive strategy. TASK 3 1. Method of repositioning Repositioning is the method which used by the organization in order to increase their sales as well as revenue. It further helps the organization to maximise their market shares as well achieve the desired goals. There are various repositioning method such as perceptual mapping, 3
communicationprocess,repositioningthegoodsetc.But,onlytwomethodsrequiredto discussed which mentioned below: Perceptual mapping: It is the visual representation of the customers and regarding their attributes of an organization. This techniques used by the researchers as well as marker analysis in order to measure the behaviour of individual regarding their products. Burberry company use this method where they analyse the attributes of customers. Management formulate strategies for the betterment of the business operations(Wan and et.al., 2017). If organization stuck in the situation such as poor brand image or decline in market share. So repositioning method helps to capture market share as well as improve brand image as well as product image. Reposition product for the specific market: this method used to target specific market such as Burberry follow this methods. At the time of using this strategy, Burberry have to live their existing market because they are unable to fulfil demand of every types of customers. By using this method, business target the specific market for the repositioning. CONCLUSION From the above discussion it has been concluded that positioning or repositioning of product or brand help the businesses to increase their market share along with sales or revenue. There are various methods which organizations already follow or in order to repositioning they have to change their strategy which make them able to achieve desired goals or objectives. 4
REFERENCES Books & Journals Bao, T. and et.al., 2016. Systematic study on phytochemicals and antioxidant activity of some new and common mulberry cultivars in China.Journal of Functional Foods.25. pp.537-547. Gokdogan, O., Oguz, H. I. and Baran, M. F., 2017. Energy input-output analysis in organic mulberry(Morusspp.)productioninTurkey:acasestudyAdiyaman-Tut Region.Erwerbs-obstbau.59(4). pp.325-330. Huntley, J. and et.al., 2015. One colour,(at least) two minerals: a study of mulberry rock art pigmentandamulberrypigment‘quarry’fromtheKimberley,northern Australia.Archaeometry.57(1). pp.77-99. Wan, X. and et.al., 2017. Safe utilization of heavy-metal-contaminated farmland by mulberry tree cultivation and silk production.Science of the Total Environment.599.pp.1867- 1873. Online PositioningofGucci.2018.[Online].Availablethrough: <https://saintlaurentparisculc.wordpress.com/2015/05/18/saint-laurent-analysis-swot- architecture-positioning/> PositioningofBurberry.2018.[Online].Availablethrough: <https://sites.google.com/site/jacobmontagportfolio/burberry-brand-perception- analysis> PositioningofPrimark.2018.[Online].Availablethrough: <https://andrewgolden.wordpress.com/2012/09/21/ugh-a-post-about-primark/> 5