Case Study of Burberry Assignment

MINTEL Fashion Accessories report - UK

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1. Importance of positioning and repositioning..........................................................................3
Implication of such activities .....................................................................................................3
2. Positioning map ......................................................................................................................4
3. Methods which can be used to achieve repositioning ...........................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
The report is based on the case study of Burberry. Burberry is a established in year 1856.
it is a British luxury fashion house whose headquartered is located in London, England. The
company provides a wide range of products such as trench coats, fashion accessories, fragrances,
cosmetics and sunglasses(Rohani, Gingras, and Gruyer, 2015). The report will highlight the
concept of positioning and repositioning. And it will also cover that how this can help company
to achieve success. The report will also cover position map. And some methods in order to
achieve repositioning in market.
TASK
1. Importance of positioning and repositioning
Positioning can be defined as place which brand has occupied in minds of customers. The
company has to lay emphasis on differentiation of product if they want to attain a position in
market. There products should be such that which differentiate them from other brands in a
market(Al-Ali and Raths, Masimo Corporation, 2017). While if we talk or repositioning of
product, services or brand in market it means changing the strategies related to products price,
features or marketing activities with the change in market situation. There can be various
situation in market which result in repositioning of product and services. The reason may be
increased competition, change in consumer trends, change in internal environment of a
workplace such as change in leadership style, use of new technology, acquisition, introduction of
innovation etc(Brand repositioning, 2019).
Implication of such activities
Burberry wants to gain a large share in the luxury fashion sector. As the sector faces a
huge changes. Therefore it become necessary for the marketers to reposition the products in the
market. As the company has experienced decline by 10% in global revenue. The reason behind
this is challenging condition of US and Hong Kong. Therefore the repositioning strategy which
the company CEO Macro Gobbetti has made i.e., change in price architecture and selling back to
end retailers and wholesalers. Secondly the company is planning to create new luxury goods and
accessories which will help them to attract new market. These are some strategy which the
company has planned for repositioning. If this strategies prove successful than it will help
company to successfully gain position in market. It will help company to monitor the position of

current product and services. Reposition strategy will help company to move according to the
market situation.
2. Positioning map
The companies make use of perceptual or position map in order to develop marketing
strategies. The maps are made on the perception of their buyers therefore it is sometime known
as perceptual maps. It helps in analysing the current position of products and services in market.
It helps the company in two ways first either to fill gap in market and secondly to compete with
the competitors(Lovelock and Patterson, 2015).
In the Burberry group 37 % of its total revenue comes from accessories. The product of
company which has performed well in market are handbags and leather goods. The price of bags
has also been increased. It has been seen that the bags category has the growth potential in
future and it will continue be so in future. Therefore company is planning to pay more focus on
this category of product. As Burberry is planning for to reposition its product in market. The
company wants to gain large share in market and it aims to become the top luxury brands.

As the new pricing strategy company has planned to extent price structure and to create
leather goods which will help company to attract new customers. As a part of repositioning
strategy the company is also focusing on involving digital activities within the business which
will help customers of the company to buy products online.
This repositioning strategy will help company to attain the large market share. But as this
strategies will help company to move to the higher position. As a result of which company will
have to face competition from the brands such as dior, primark and Gucci.
3. Methods which can be used to achieve repositioning
In order to achieve successful repositioning, Burberry needs to make the appropriate plan
and strategies of marketing for the market. The below two strategies can help company to
successful reposition itself in market :
Analyse how the target market has grown :
It is essential for Burberry to analyse the market properly. The reason behind this is that
what might is good for company in 2017 may not so in 2018. for example the sell of handbags
was good in the year 2017 but it is not necessary that the same will happen in future. It might be
possible that due to entry of new entrant or adaptation of different strategy by marketer may
result in loss in sales(Chen, and Gesbert, 2017). Therefore it is necessary for a company to
analyse the market continuously.
Removing barrier :
The second most important method which company can use for repositioning its product
is use of technological tools. The company is providing its services online in order to provide
more convenience to customers. Similarly company can make use of big data analytics which
will help company to understand their customers as well as market in detail(3 powerful strategies
for repositioning, 2019). It will help company to provide the customer products and services
which they actually want. Use of big data analytics will help company to remove unnecessary
barriers between the company and customers.
CONCLUSION
Positioning as well as repositioning will help the company to achieve growth in market.
Positioning will help company to identify the aspects of product and then match it with
costumers. It helps to understand the needs of customers, to use proper communication channels,

to carefully craft message etc. While repositioning help company to make changes in the target
market. It helps company to reposition it in the market by make new strategies related to price,
place, promotion and to target new customer segment. Therefore repositioning is a good idea by
the Burberry as it will help the company to target new market and increase it share in market.

REFERENCES
Books and Journals
Al-Ali, A. and Raths, C., Masimo Corporation, 2017. Systems and methods to monitor
repositioning of a patient. U.S. Patent Application 15/253,482.
Chen, J. and Gesbert, D., 2017, May. Optimal positioning of flying relays for wireless networks:
A LOS map approach. In 2017 IEEE international conference on communications
(ICC).(pp. 1-6). IEEE.
Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.
Rohani, M., Gingras, D. and Gruyer, D., 2015. A novel approach for improved vehicular
positioning using cooperative map matching and dynamic base station DGPS
concept. IEEE Transactions on Intelligent Transportation Systems, 17(1). pp.230-239.
Online
Brand repositioning. 2019. [Online] Available through
<https://www.brandingstrategyinsider.com/brand-repositioning>
3 powerful strategies for repositioning. 2019. [Online] Available through
<http://customerthink.com/3-powerful-strategies-for-repositioning-your-brand-in-
2017/>