Positioning and Repositioning Strategies for Business Entities

The provided document discusses the importance of positioning and repositioning for business entities, highlighting two key methods: perceptual mapping and repositioning products in a specific market segment. The assignment aims to understand how these strategies can help businesses achieve growth and predetermined goals.

Individual Project

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Relevance and importance of positioning and repositioning.......................................................1
Implication for the performance of the business if such a move is successful............................2
TASK 2............................................................................................................................................2
Positioning map showing Burberry, Gucci and Primark.............................................................2
TASK 3............................................................................................................................................3
Methods of repositioning.............................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Positioning and repositioning are the two main steps that are taken by business entities in
order to go up in the market. For all the organisations, it is very important to reposition its
products when profitability starts to decrease continuously (Chik, 2015). This project report is
based upon Burberry which is a British luxury fashion house and operating business all around
the world. Its headquarter is in London, United Kingdom. In this assignment various aspects
such as importance of positioning and repositioning, their implication for the performance of
business, positioning map and different methods that could be used by Burberry to reposition
itself have been discussed.
TASK 1
Relevance and importance of positioning and repositioning
Positioning and repositioning are the two main strategies that are adopted by business
entities in order to achieve growth and enhance profitability. The article states that luxury brands
posted strong results in 2016 and Q1 of year 2017 due to weak sterling following the EU.
Burberry have achieved double digit sales growth for the six months but after that period, a
decrement in the global revenues have been recorded. Now the organisation is planning to
reposition its self for the purpose to go more up market. Both the strategies are important for
Burberry and its marketers. These are connected with each other because when policies for
repositioning are formulated, then previously formed strategies for positioning are taken in to
consideration in order to ignore mistakes. The significance of positioning and repositioning for
marketers are as follows:
 Positioning helps the marketers to determine the way in which they can communicate
attributes of products to the targeted customers in best suitable manner.
 Positioning is very important for marketers as it guide them to understanding customer's
needs and requirements by establishing effective communication channels.
 Repositioning is also vital for marketers because it helps them to form strategic decisions
to keep the organisation on top.
 Marketers are required to focus on repositioning because it can help them to identify
opportunity to enhance demand of products that are sold by Burberry.
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Implication for the performance of the business if such a move is successful
As the revenues of Burberry started to decline after September 2017, then the markers
started to find solution for this problem and now they are willing to reposition the brand into
luxury market. They have selected a method to reposition itself which is repositioning the
products in the a specific market segment. They have analysed that 16-24s customers are the
most active luxury shoppers. The brand Mulberry has made a mistake in which it prices of the
products have been increased. This step affected the customers by out pricing them and Burberry
does not want to make the same mistake. For the purpose of repositioning, Burberry is planning
to become digital and started to offer the products online so that customers can get them at home
straight from the store (Siddiqui and Fahim, 2014). If this move becomes successful for the
company, then it may enhance its performance by increasing the market share and revenues for
the upcoming period. It will be beneficial for the organisation because it can help it to be on the
top of the industry.
TASK 2
Positioning map showing Burberry, Gucci and Primark
Positioning map is a tool which is used to measure the success of company after
implementing strategies to enhance market share and revenues. Burberry has planned to use
digital media for the same purpose. A positioning map below shows position of three different
companies Burberry, Gucci and Primark.
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The above map shows that Burberry is in a good situation as it is not very expensive and
its functionality is very high (Positioning of Gucci. 2018). Gucci has low functionality as
compare to Burberry and it is very cheap. Primark has low quality and it is very cheap as
compare to both of the other brands (Positioning of Primark, 2018). Burberry has achieved
higher position in the market due to its attractive strategies (Positioning of Burberry, 2018).
Positioning of the brand will change the result of repositioning because it may help to enhance
customer traffic online and market share.
TASK 3
Methods of repositioning
Repositioning is very important for the business entities as it helps to achieve growth by
increasing market share of the company. There are various types of methods that could be used
by organisations such as Burberry to reposition itself in market (Powers, 2016). These are
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perceptual mapping, repositioning the goods to a specific market place, communication process
and maps for repositioning. All of them are very beneficial for the enterprises but first two are
majorly used by entities for the purpose of repositioning. Both of them are described below in
detail:
Perceptual mapping: It is a technique which is used by marketers and researchers of the
organisations to study the behaviour and views of customers about the products and services that
are offered by the company. This method can be used by business entities such as Burberry to
achieve repositioning by analysing attitude of consumers regarding its products and services and
then using them to form strategic decisions for the betterment of the organisation. It helps the
companies to reposition themselves before they stuck in the problematic situations such as bad
brand image and decreased market share (Wang and Shaver, 2014).
Reposition a product to a specific market segment: It is a logical technique which can
be used by organisations such as Burberry by repositioning its products in a specific market
segment. While using this method the enterprises are required to sacrifice some of its existing
market segments because it is not possible to fulfil demand of all of them. In this option
organisations select a specific section and reposition the products there for the purpose of
attaining growth.
CONCLUSION
From the above project report it has been concluded that for all the business entities
positioning and repositioning is very important as it can help achieve growth and predetermined
goals. There are various types of methods which could be adopted by the large business entities.
These methods are perceptual mapping and reposition the products in a specific market
segment.Both of them may help firm to reposition the brand in appropriate manner.
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REFERENCES
Books and Journals:
Chik, A., 2015. Recreational language learning and digital practices: Positioning and
repositioning. In Discourse and Digital Practices (pp. 124-141). Routledge.
Powers, J., 2016. Two methods for turning and positioning and the effect on pressure ulcer
development: a comparison cohort study. Journal of Wound Ostomy & Continence
Nursing. 43(1). pp.46-50.
Siddiqui, K. and Fahim, S. M., 2014. Repositioning of DawnNews Channel to Mass
Market. Rev. Integr. Bus. Econ. Res, 3(1).
Wang, R. D. and Shaver, J. M., 2014. Competition‐driven repositioning. Strategic Management
Journal. 35(11). pp.1585-1604.
Online
Positioning of Gucci. 2018. [Online]. Available through:
<https://saintlaurentparisculc.wordpress.com/2015/05/18/saint-laurent-analysis-swot-
architecture-positioning/>
Positioning of Burberry. 2018. [Online]. Available through:
<https://sites.google.com/site/jacobmontagportfolio/burberry-brand-perception-
analysis>
Positioning of Primark. 2018. [Online]. Available through:
<https://andrewgolden.wordpress.com/2012/09/21/ugh-a-post-about-primark/>
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