Product Positioning Strategies

The assignment discusses the importance of product positioning in marketing, highlighting three methods: quality or pricing positioning, product category positioning, and competitor-based positioning. It concludes that positioning plays a crucial role for marketers to remain stable in the market.

Principles of marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.Importance of positioning and repositioning...........................................................................1
2. Positioning map ......................................................................................................................2
3.Methods of repositioning.........................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Marketing is the process of buying and selling of the product. It includes advertising,
promotion, personal selling and door to door marketing etc.
Present will be based on the Burberry company it is a British luxury fashion house. It was
founded by Thomas Burberry in 1856. It focuses on distributing the trench coats that are ready to
wear.
Report will include importance of positioning and repositioning for marketers. Further
more it will include positioning map and methods of repositioning(Baker, 2016).
TASK 1
1.Importance of positioning and repositioning.
Positioning is the process that is used by marketers to setting up a brand image of the
product in the minds of the customers. Positioning plays an important role in satisfying the needs
of the consumers. As Burberry is the fashion brand its main focus is no digital marketing and
investing money in selling products online to the customers by fulfilling the order from stores.
For gaining product positioning in the market Burberry launched its mobile app that allow
customers to operate digital so that larger consumer get attracted and the positioning of the
product is increased. As Burberry wants to follow the strategy used by the mulberry as to
increase the positioning in the market but Burberry later on realize that it does not want to lose
the younger buyers that are more important in luxury market. Thus, Burberry expands its
positioning by increasing the sales in bag. Positioning is important for every marketer as it create
communication channels and increase the sale of the product(Kotler and Armstrong, 2015).
Repositioning means changing the brand of the product by comparing the other brands
in the market. Repositioning is done by the marketer to either increase the quality of the product
or to lower down the price so that it can beat its competitors easily in the market. As Burberry
reposition its product in the luxury sector by increasing the price and reducing the scale or
providing fixed proportion to the retailers and wholesalers. It also creates new luxury leather
goods and accessories to attract new customers. Repositioning helps in re-development of the
product again from the starting and develop a new product in the market. Repositioning plays an
important part for marketer as following only one strategy the consumer did not accept and
always want something new in the market. So, for satisfying their needs repositioning is done by
the companies(Harré, 2015).
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Implications of positioning and repositioning
If positioning and repositioning is successful for Burberry company then it will impact on
the performance of Burberry. Repositioning helps the Burberry to increase its sales and attract
new consumers by providing good quality products to the customer. Through this the sale of
leather products also increases. By focusing on digital activity also it attracts the consumers to
buy its products(Tasker, 2016).
2. Positioning map
Positioning map helps in showing the position of existing product in the market. It is
represented through a diagram that depict the price and quality among that the position of the
product lies in the market. Positioning of the brand will change this process as this positioning
map also create a gap between the high price low quality goods. Similarly, low price high quality
box is empty in the positioning map it is difficult to give high quality product at cheaper rates.
Positioning helps in place the right product at the right category on the diagram depend on its
price and quality. Positioning of the brand will change by the perception of the consumer
regarding the product. The customer's thinking regarding product may cannot match the actual
product available in the market. By positioning the product in positioning map it will fill the gap
in the market otherwise have to compete with the other competitors. Positioning of the brand will
also change the price and quality of the product(Molloy and Axhausen, 2017).
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Above positioning map represent the position of Gucci and Primark. As the map shows the two
different axis x-axis and y-axis. The x-axis represent left to right and the y-axis represent bottom
to top of the positioning map. The x-axis denotes the price and the y-axis denotes the quality of
the product. As Gucci and Primark both are the known brands that have high quality and high
brand in the market. So, in the positioning map both the company's product lie in the first
quadrant that means high quality and high price product. This positioning map helps in identify
the position of the product in the market(Mooreand Cowman, 2015).
3.Methods of repositioning
There are several methods of repositioning as follows:
 Quality or pricing positioning: This strategy of positioning states that there is
relationship between price and quality. Price of the product is set according to the quality
and keeping the higher position of the product in customers mind. Burberry can use this
strategy to achieve repositioning in the market by increasing the quality of the product
through which customers get attracted to but the product.
 Product category positioning: This means to categories the product according to their
durability in the market. The product that is regular use are put on the first position in the
market so that product is easily available to the consumer. Burberry can use this strategy
by putting the product category wise so that it is easily available to the customers(Glaser,
Fiss and Kennedy, 2016).
 Competitor based positioning: This means that differentiation between our product and
the other products in the market that will create value in the market. Burberry can use this
strategy of positioning as it has to give better services to its customers as compared from
its competitors such as Mulberry, Givenchy(Importance of product positioning,2019).
CONCLUSION
From the above study it can be concluded that positioning of a product plays an important
role for the marketer to remain stable in the market. Positioning refers to the setting up the
position of the product in the market. Positioning helps in increasing the quality and price of the
product. Positioning map is also an important part of filling the gap in the market. From the
above study it can be observed that positioning and repositioning are the two main strategies for
the marketers.
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REFERENCES
Books and Journals
Armstrong, G and et. al., 2015. Marketing: an introduction.
Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Glaser, V.L., Fiss, P.C. and Kennedy, M.T., 2016. Making snowflakes like stocks: Stretching,
bending, and positioning to make financial market analogies work in online
advertising. Organization Science.27(4). pp.1029-1048.
Harré, R., 2015. Positioning theory. The International Encyclopedia of Language and Social
Interaction, pp.1-9.
Kotler, P. and Armstrong, G., 2015. Principles of Marketing-Global Edition. Pearson.
Molloy, J. and Axhausen, K.W., 2017. Using high resolution passive mobile positioning data in
transport models-Aims, challenges and current progress. In Workshop on data processing and
analytics of smartphone and GPS data, Mobility Lab, University of Tartu.
Moore, Z.E. and Cowman, S., 2015. Repositioning for treating pressure ulcers. Cochrane
Database of Systematic Reviews, (1).
Tasker, R.C., 2016. Positioning the breathing but unresponsive patient: what is the evidence?.
Online
Importance of product positioning.2019.[Online].Available
through<https://smallbusiness.chron.com/importance-product-positioning-marketing-plan-
24275.html>
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