Principles of Marketing Communication - Analysis of Burberry's Repositioning Strategy

Running head: PRINCIPLES OF MARKETING COMMUNICATION
Principles of Marketing Communication
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PRINCIPLES OF MARKETING COMMUNICATION1
Introduction
Background of the company
Burberry is a luxury brand that is based in UK and have operations in several countries in
Middle East, Europe, and Africa as well as in China. The organization has a rapidly growing
market in China, Hong Kong and Japan where demand for luxury products have increased
significantly. To address this, the CEO of the company (Marco Gobbets) has decided to
reposition the brand in the luxury circle.
Aim of the study
The aim of the study is to produce an analysis of the case study in relation to the marketing
problems faced by the business in context to the repositioning of the brand.
Discussion
Part 1
Relevance and importance of positioning and repositioning for marketers
Brand positioning and repositioning refers to the process of orienting or reorienting the target
consumers to purchase from a particular brand and is guided by the common aim of
improving brand value and image. The approaches of positioning can help a brand to create
an identity or image in the minds of the customers for its products, the brand or the
organization (Insch and Bowden 2016). Repositioning, on the other hand focuses on
changing an already established identity for the product in relation to the identity of
competing products within the target market. Brand repositioning can help to achieve an
increase in the influx of new customers. Support an increase in the value for the company,
improve alignment and clarity of the business processes, enable a slow increase in sales and
ensure business sustainability (Blažek 2015). The importance of brand repositioning can be

PRINCIPLES OF MARKETING COMMUNICATION2
further supported by the ability of the strategies to improve the competitive position of the
brand, improve sales, capture the target market more successfully, align the business
activities to the current market needs and also draw attention from potential media (Ren et al.
2018).
Implications for performance of the business when the move is successful
When the repositioning strategies utilized by a business is successful it helps to achieve the
following outcomes for the business:
 Provide a competitive advantage to the brand: if the repositioning of the brand is
successful, it can help to gain a better competitive position within the market by
successfully outlining a positive change within the marketing approaches that are
favorable within the target customer segment.
 Increase sales: the rebranding strategy can support an increase in sales by addressing
the needs, expectations and demands of the customer by producing those products and
services that comply with those requirements (Putra and Zuhdi 2018).
 Change existing marketing and branding strategies: the rebranding essentially allows
to create changes in the strategies of marketing and branding that is adopted by the
organization and thereby shift its paradigm and change the brand image within the
target consumer segment.
 Address changes in the market needs: in the dynamically changing market, rebranding
can help and organization to adapt to the change and respond more appropriately by
developing products and services that addresses the current market trends and
changes.
 Change brand image: The repositioning strategy can open the doors to create a new
brand image which in care of Burberry would be the development of its image in the
market as a luxury goods producer (Ponnam et al. 2015).