Relevance and Importance of Positioning and Repositioning for Marketers

This article discusses the relevance and importance of positioning and repositioning for marketers. It explores the implications for business performance if such moves are successful. The article also provides insights on Burberry's brand positioning and how it will change as a result of the repositioning process. Additionally, it suggests two methods that brands like Burberry can use to achieve repositioning.

MARKETING MIX
Marketing Mix
Assignment 2
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Contents
Introduction.................................................................................................................................................2
Discussion...................................................................................................................................................4
1. Explain the relevance and importance of positioning and repositioning for marketers. What are
the implications for the performance of the business if such a move is successful?................................4
2. In the case of Burberry, demonstrate by means of a positioning map, how the positioning of the
brand will change as result of this process. In presenting map, also identify where on the map the
following brands would be located: Gucci and Primark..........................................................................5
3. Provide two methods which brands such as Burberry might use to achieve repositioning...............7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................8
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Introduction
There are number of approaches and strategies in marketing and businesses use a winning
combination of these tactics to reach out their products and/or services amidst as many
prospective customers who are willing to make purchase. Positioning of brands like Burberry
helps them to design their offerings and build a unique or distinctive image in the mind of target
consumers. Thus positioning of Burberry helps them to present their brand in a different manner
from their competitors and involves building brand associations within customer’s mind so that
they perceive the brand in a particular way. Whereas, repositioning focuses on changing
customers associations with a brand and involves changing brand’s promise or personality. Thus
repositioning of brands are done to refresh or reinforce the brand’s positioning. Like for
example, Burberry since the time it was established it is positioned as a prominent luxury brand
with original roots in British fashion. But with time Burberry has evolved its positioning and has
recently developed the image of being trendy and cool so as to reposition themselves amongst
younger customers. The key purpose of this report is to analyse positioning and repositioning of
Burberry .
Discussion
1. Explain the relevance and importance of positioning and repositioning for
marketers. What are the implications for the performance of the business if such a
move is successful?
Product positioning is perceived as a crucial tool to ensure that a marketing strategic planning is
effective. According to Lee, Kim and Won (2018) companies make use of positioning to create a
differentiated image in customers mind and to promote the key benefits of particular product or
service in the targeted markets from other similar alternatives. Positioning is important for
marketers owing to its contributions in identification of parity and differentiation points.
Example, positioning enables products/services of a company like Burberry to meet the market
standards and offer added value to their customers in terms of quality, innovation, price,
leadership and functionality. Also, positioning influences buying decision and helps buyer to
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choose best solution for a problem and when done effectively it ensures that marketing messages
of Burberry resonates with target consumers. As such, positioning urges customers to take
actions as well as makes them want to know more about products.
According to Millington and Ntounis (2017) companies mainly realise onset of change
implementation when their sales decline over time or during emergence of major developments.
This phase is termed as repositioning when status of brand changes in the market. Repositioning
is mainly done to meet the wants and needs of customers. Products, services and brands are
repositioned continuously once they are introduced into the market so as to keep up with
changing competition and market conditions. Consideration of repositioning is generally good
when there is need or opportunity for improving the demand for offerings. The implications for
successful positioning and repositioning of product/services can be seen in terms of stronger
competitive position, improved sales, clear target market performance, better line up with
prevailing market needs, accelerated business growth and potential media attention.
2. In the case of Burberry, demonstrate by means of a positioning map, how the
positioning of the brand will change as result of this process. In presenting map,
also identify where on the map the following brands would be located: Gucci and
Primark
For an effective marketing companies mainly identify a right positioning which gives greatest
advantage to the products in targeted markets. Hence, positioning maps are analysed to derive
insights and create planned positioning in market. For organizations like Burberry these insights
help its branding and marketing teams to gain sound knowledge and visualize the behaviour and
performance of products amid expectations of their customers. A positioning map giving the
relative positions of different brands with reference to customer perceptions of ‘basic’,
‘fashionable’, ‘low price’ and ‘high price’ is demonstrated below for the case of Burberry. Low
price and high price features along the x-axis of the graph while high quality (fashionable) and
low quality (basic) features along the y-axis.
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Fig: Burberry’s Brand Re-Positioning
Source: Author
In the above map, Burberry can be seen changing its positioning from high end luxury brand to
medium priced and fashionable brand as compared to other competitors like Mulberry, Gucci,
Primark. Mulberry holds its position between expensive, desirable and luxury but as it is
affordable to larger market as special occasion purchase, so in positioning map it is placed at
medium price and fashionable range. Whereas, Gucci’s positioning is associated with
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High Price
Low Price
FashionableBasic
Gucci
Burber
ry
Mulbe
rry
Prima
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affordability and medium fashion consciousness while Primark is associated as low priced and
basic in fashion. According to Urde and Koch (2014), the positioning map of a brand represents
its position, which is a culmination of consumers’ perceptions from a product in particular in
comparison to substitutes. In case of Burberry the positioning of the brand will eventually
change results by representation of its strengths and weaknesses with respect to certain attributes
that are important to customer. In addition, positioning will help Burberry in identifying the
market opportunities, areas of competitive advantage and dynamic market conditions so as to
ensure better exploitation of opportunities.
3. Provide two methods which brands such as Burberry might use to achieve
repositioning.
For achieving repositioning brands like Burberry may use various methods in terms of choosing
a strategy for determining the main focus of their new campaign. According to Carr, Muthsamy
and Owens (2012) the first method that can be used by Burberry is customer engagement which
can mainly focus on customers and public as people want to get involved with a brand and feel
belonged. To achieve this, Burberry needs to work towards products customization so as to meet
needs of customers. This can be done by being creative and figuring out wants of customers. For
example, to improve sales of products Burberry can benefit from the opportunity of working
with designers so as to meet the changing customer expectations with customised designs and
service offers. According to King (2017) Burberry can also create customised physical
merchandise to pair up with clothing lines of different designers, so as to re-position. This
method will help the company in building brands through engaging consumers. Furthermore, it
will be a win-win situation for both Burberry and customers. The second method which can be
used by Burberry for achieving repositioning is to add customer value through involvement of
humans. In recent years the popularity of telecommunication has increased manifold as the
market of automated software is booming. Although an incredible insight into the target markets
is given by big data but such automated communications decrease human interaction. As such
humans are getting fast replaced by automated and virtual machines. But customers always
appreciate human involvement and year for human contacts during and after purchases to make
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their experiences satisfactory. According to Robinson and Hsieh (2016) although virtually
everything is being automated, but magical things can happen when a brand like Burberry would
reach customers beyond digital jungle to establish connections on a human level. This method
will eventually contribute in enhancing loyalties of customers further giving them a feeling that
Burberry’s representatives are speaking to them more personally to add value. In addition, this
method will help Burberry in becoming a living element which is having the potential of
evolving with customers.
Conclusion
Thus it can be concluded that business world revolves around marketing and a critical role is
being played by it, along with marketing mix without which marketers could not have imagined
success. Also, consumers’ decision of purchasing or using a product or service is largely influenced
by factors of marketing mix, hence, businesses control these factors to a certain extent, with
strategic approaches to ensure desirable behaviour from target audiences.
References
Carr, A., Muthsamy, S. and Owens, C. (2012). Strategic repositioning of the service supply
chain. Organization Development Journal, [Online] 30(1), 63-78. Available:
https://search.proquest.com/docview/963777416?accountid=30552 Accessed on 12/3/2019
Dadzie, K. Q., Amponsah, D. K., Dadzie, C. A. and Winston, E. M. (2017). How firms
implement marketing strategies in emerging markets: An empirical assessment of the marketing
mix framework. Journal of Marketing Theory and Practice, [Online] 25(3), 234-256. Available:
http://dx.doi.org/10.1080/10696679.2017.1311220 Accessed on 12/3/2019
Jackson, G. and Ahuja, V. (2016). Dawn of the digital age and the evolution of the marketing
mix. Journal of Direct, Data and Digital Marketing Practice, [Online] 17(3), 170-186.
Available: http://dx.doi.org/10.1057/dddmp.2016.3 Accessed on 12/3/2019
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King, C. (2017). Brand management – standing out from the crowd. International Journal of
Contemporary Hospitality Management, [Online] 29(1), 115-140. Available:
http://dx.doi.org/10.1108/IJCHM-12-2015-0711 Accessed on 12/3/2019
Lee, J. L., Kim, Y. and Won, J. (2018). Brand positioning. International Journal of Marketing &
Sponsorship, [Online] 19(4), 450-471. Available: http://dx.doi.org/10.1108/IJSMS- 03-
2017-0018 Accessed on 12/3/2019
Millington, S. and Ntounis, N. (2017). Repositioning the high street: Evidence and reflection
from the UK. Journal of Place Management and Development, [Online]10(4), 364-379.
Available: http://dx.doi.org/10.1108/JPMD-08-2017-0077 Accessed on 12/3/2019
Robinson, P. K. and Hsieh, L. (2016). Reshoring: A strategic renewal of luxury clothing supply
chains. Operations Management Research, 9(3-4), 89-101. Available:
http://dx.doi.org/10.1007/s12063-016-0116-x
Urde, M. and Koch, C. (2014). Market and brand-oriented schools of positioning. The Journal of
Product and Brand Management, [Online]23(7), 478-490. Available:
https://search.proquest.com/docview/1633962113?accountid=30552 Accessed on 12/3/2019
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