Importance of Positioning and Repositioning in Marketing

This report discusses the importance of positioning and repositioning in marketing and how it can impact a brand's success. It explores the positioning map of Burberry and its current position. Additionally, it suggests methods that Burberry can use for repositioning.

Management
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1 ............................................................................................................................................1
1. Importance of positioning and reposition...............................................................................1
2. Positioning map and Burberry's position on it........................................................................2
3. Methods Burberry can use in repositioning............................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5
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INTRODUCTION
Burberry is British luxury fashion brand, mainly offering products like ready to wear
clothes, trench coats, accessories, sunglasses, handbags and cosmetics. Burberry was founded by
Thomas Burberry in 1856 and headquartered in London, England. It serves its goods worldwide
attracting mostly premium segment of society or amongst the population. Burberry is listed on
LSE (London Stock Exchange) and on FTSE (Financial Times Stock Exchange), it holds 73 rank
in inter brand's best Global Brands report along with Louis Vuitton and Prada(Moutinho and
Vargas-Sanchez, 2018).
This report is made on a given case study on Burberry which is concerned about
positioning of Burberry. This report consist basic concept of positioning and repositioning, also
positioning map of company is made. Two methods are also discussed which can be useful for
Burberry in repositioning.
TASK1
1. Importance of positioning and reposition
Positioning means where the products and services offered by company is standing in
marketplace in relation with other competitors and consumers. Its also an ability to change
buyers prospective about the company or goods they are serving. Its objective is to set up brands
image.
Repositioning is switching organisations status in relation with its competitor brand. It
mostly impacts on marketing mix if any changes occur in marketplace or external environment.
In other words, its a task conducted by company to implement major change in perception of
targeted segment about the products or brands keys elements.
Importance Understanding customer needs- Position requires clear views of buyers about the
company, so that correct communication can be done and important messages can be
delivered properly. Targeting communication channel- It also helps marketers to produce or consider correct
communication channels which are developed only to link up with targeted segment for
delivering appropriate message or knowledge to identified audience(Ardito and et. al.,
2019).
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 Weigh competitive pressure- Company should consider pressure created by rivals while
considering positioning or repositioning its brand or goods to increase effectiveness of its
plans. These effective plans will further defines productivity of organisations products or
services they are offering to public.
Implications of successful repositioning Increased performance- Repositioning results in better performance of Burberry's
operations. Performance level of company will enhance providing better outcomes,
satisfying needs of customers and also improves position of organisation in mind of
buyers and in marketplace(Shaw, 2016). Better profits- If repositioning is done effectively after researching market and proper
execution of plans, it will result in satisfying needs or wants of buyers means that
perceptions of people is changed and this will automatically provide better profits to
Burberry. Improved customer base- Another impact of successful repositioning is that the customer
base of Burberry will enhance, consumers will stick to Burberry and prefer it before any
other similar brand(Baker, 2016). This brings customer loyalty to company helping in
attaining predetermined objectives of Burberry.
2. Positioning map and Burberry's position on it
Positioning maps are tool which is drawn to show customers prospective about the
business. It helps marketers to come up with best position for their brand according to needs of
consumers and appropriate strategy which can be used to attain that position, also maintaining it.
For developing position map for organisation, marketer has do conduct research to
understand the requirement of public in which they are doing business. Generally it has four
quadrants, right product is arranged in related area in accordance with primary benefit of the
product and its price.
Positioning map of Burberry, Gucci and Primark
Every positioning map has four quadrants covering four different criteria or needs of
consumers. Burberry's positioning map also has four regions named as Prestige Price,
Exclusivity, Affordability and Mass Market.
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Burberry lies Prestige Price and Exclusivity quadrant as it adopted premium pricing
strategy and targeted high class customers. Burberry has seen good growth in sales of bags and
accessories therefore, its new CEO Marco Gobbetti has choose to reposition the company in
luxury section. Organisation will increase its pricing structure and reducing sales to small
retailers and wholesalers. They are also designing fresh leather bags and accessories to attract
high-end customers(Kotler and et. al., 2018)
On the other hand Gucci lies in Prestige Price and Mass Market quadrant. Gucci offers
expensive product to public but attract huge market. Gucci has its strategies set like that to attract
aggregated high level consumers with offering expensive goods. Primark lies in Mass Market
and Affordability section as it offers vast range of products in affordable prices gaining attention
of almost all class of consumers.
3. Methods Burberry can use in repositioning
Different methods or ways are used by brand for repositioning, two techniques used by
Burberry to reposition are as follows:
 Real repositioning- Through this process products are redesigned according to the
preferences, needs and wants of people. Burberry's CEO has recently decided to
reposition company's image as luxury goods provider and planning to develop new
designs for handbags using leather. This strategy is made after huge growth has been
seen in sales of handbags and accessories which helped company to reposition itself in
luxury goods with high prices for premium buyers.
 Psychological repositioning- This technique is used to alter or change minds of
consumers about the brand or company and products they are offering. Burberry this
strategy to reposition itself in mind of high-end buyers or premium segment of society.
They are reducing sales toward lower retailers and wholesalers to build good image
about the brand in eyes of people who prefer high rated goods as they works as status
symbol for them. Through this they acquire their attention increasing its image and make
better position in marketplace.
CONCLUSION
In above report positioning is talked about, its importance and relevance is notified and
how it is important for different organisation to alter its position in minds of people(Wood,
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2016). Another aspect covers the positioning map which shows positions of different companies
in appropriate regions. And at last some methods are highlighted which is used by organisations
to reposition itself in minds of people.
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REFERENCES
Books and Journals
Ardito, L., and et. al., 2019. Towards Industry 4.0: Mapping digital technologies for supply
chain management-marketing integration. Business Process Management Journal.
25(2). pp.323-346.
Baker, M.J., 2016. What is marketing?. In The Marketing Book. (pp. 25-42). Routledge.
Kotler, P., and et. al., 2018. Marketing management: an Asian perspective. Pearson.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Shaw, S., 2016. Airline marketing and management. Routledge.
Wood, D.A., 2016. Comparing the publication process in accounting, economics, finance,
management, marketing, psychology, and the natural sciences. Accounting Horizons.
30(3). pp.341-361.
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