Importance of Positioning and Repositioning for Marketers

This report discusses the relevance and importance of positioning and repositioning for marketers. It explores the implications for business performance and provides methods to achieve repositioning. The case study focuses on Burberry brand.

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Contents
Introduction......................................................................................................................................2
Importance of positioning and repositioning for marketers............................................................3
Positioning...................................................................................................................................3
Implications for performance of business....................................................................................4
Positioning map...............................................................................................................................4
Methods to achieve the repositioning..............................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The aim of the report is to produce a case study analysis that is related to the marketing problems
that are faced by the business. The report includes the analysis related to the case study questions
that have been explained. This includes the relevance and importance of positioning and
repositioning for marketers. It also shows the implication for the performance of business if that
move is considered as successful. The paper includes the positioning map of the company and its
related competitors that are present in the market. In the end, two methods which are used by
brand like Burberry for achieving the repositioning.

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Importance of positioning and repositioning for marketers
The article witnessed that Burberry brand is intended to go more up in the market because they
were not able to achieve effective revenue (Baker, 2014). Burberry in the UK found the double-
digit sales growth for six months to 30th September 2017. The company reported a decline in
global revenue to £2.8 billion for the year. The company positioning matters a lot for increasing
the sales of products.
Positioning
 Positioning refers to the place that the brand occupies in the mind of the customers and
how it varies from products of competitors.
 Brand repositioning occurs when a company bring changes in brand status at the
marketplace (Chernev, 2018).
Positioning is considered as one of the important element for the marketers of the company. The
product positioning is the process marketers that are used to identify the best to communicate
their products attributes to their customers who are targeted as it is based on the customer needs,
the pressure of competitors and available communication channels (David, 2011). Effective
communication about the products of the company helps the company to enhance its sales. Thus,
Burberry’s implemented an effective strategy of moving the brand more upscale echoes similar
to the other designer brands.
Repositioning is important for marketers as the market is dynamic in which companies are
performing their business operations due to which company need to consider the change in needs
of customers (Grant, 2016). Moreover, repositioning is important by marketers as through this

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they can deal with the competitors present in the market. In addition, the company make use of
positioning for the new and improved product. In the case study, this has been found that
repositioning of the company is important, as Burberry Company is not willing to make the same
mistake by losing the younger buyers who are extremely essential for the company in the present
luxury market. This is evident with the consumer research for Designer Fashion – the UK,
November 2017 that shows that people with 16-24 years are considered as the most active luxury
shoppers.
Implications for the performance of the business
The successful implication of the positioning of the company helps them in improving the
performance of the business. The sales of full bags increased by 16% for the year ended 31st
March 2017 that is driven by the new introduction as Bridle and Buckle bags in more styles. The
rise in growth of the bags category in the few years has become the central focus for Burberry.
Thus, this shows that the effective positioning of the brand either improve the sales of the
company.
Positioning map
In the case of Burberry, the positioning map is a way through which the marketers of the
company attempts with the motive to display the perceptions of the existing as well as the new
customers that are present in the market. The positioning of the brand will change as a result of
this process (Frynas and Mellahi, 2015). The positioning helps the company to respond and
perform the operations according to the needs of the customers. This helps them to meet the
expectations of the customers in terms of price, quality as well as the style. Most of the young

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customer wants stylish clothes due to which the company process gets affected, as they need to
get more information and resources.
The below-given positioning map shows the position of Burberry and its competitors that include
Gucci and Primak. This is very clear that the Burberry Company offer the products at the high
prices and they attract young customers. The major target audience of the company include the
youth customers because they can consider as the most active luxury shoppers. Comparing with
competitors, Gucci is considered as one of the companies who target youth by offering products
at affordable prices. On the other hand, the Primark company offer the products but at low
prices.
Mature
Customers
Young
Customers
Low Price
High price
Primark
Gucci
Burberry

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Methods to achieve the repositioning
The companies in the current market make use of different methods with the motive to achieve
the repositioning (Grant, 2016). The two methods, which are used by the company for
repositioning, include -
 The new strategies that can be implemented by the company for repositioning include
extending its price architecture as well as scaling back sales. In the case study, this is
clearly stated that Burberry’s company make use of this strategy as it helps to create the
new luxury leather goods as well as the accessories to grab the attention of the high-end
customers. The strategy of price architecture and scaling back sales majorly to the
wholesalers and retailers was taken by the newly appointed CEO Marco Gobbetti.
 Another strategy can be used by the companies include digital activity. This has been
found that Burberry is majorly focusing more on leveraging its digital reach and making
the investment so that they can make it easier for the customers to make the orders and to
meet their needs (Luca and Suggs, 2010). Burberry Company has implemented a strategy
in their business operations that are clearly witnessed as the company appealed to luxury
customers and has re-launched its mobile app with the effective use of the technology of
augmented reality app in the month of October 2017.

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Conclusion
In the end, this can be concluded that it is essential for the company to maintain good position
and to reposition itself in the competitive market. In addition to this, the successful positioning of
the company will help in enhancing the performance of the business. Further, the report includes
the positioning map of a company with its competitors that help in evaluating the position. In
addition, the methods, which are majorly used by the company, like Burberry’s for repositioning
them in the market.

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References
Baker, M. J. (2014) Marketing strategy and management. London: Palgrave Macmillan.
Chernev, A. (2018) Strategic marketing management. Chicago:Cerebellum Press.
David, F.R. (2011) Strategic management: Concepts and cases. India: Pearson/Prentice Hall.
Frynas, J.G. and Mellahi, K. (2015) Global strategic management. USA: Oxford University
Press.
Grant, R.M. (2016) Contemporary strategy analysis: Text and cases edition. New Jersey: John
Wiley & Sons.
Luca, N.R. and Suggs, L.S. (2010) Strategies for the social marketing mix: A systematic review.
Social Marketing Quarterly, 16(4), pp.122-149.