Significance of Positioning and Repositioning

RUNNING HEAD: BUSINESS MARKETING
BUSINESS MARKETING
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Q1. The article tells us that Burberry intends to go more up-market. 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?
Significance of positioning and repositioning:
Product positioning plays an important role for marketers. This process is applied by the
marketers to let their target customers know about their products based on product features.
Product managers and the marketers of a business organisation has the responsibility to utilise
product positioning concept. Product positioning, an invisible bridge, is used to connect with the
target market segments (Lei and Moon 2015). To utilise the needs and attitude of the customer,
marketers utilise product positioning. Effective product positioning can help an organisation to
differentiate its product and services from its competitors. However, before conducting the
product positioning the marketers have to analyse the core market and identify what is most
significant for the consumers (Armstrong et al. 2018). For product positioning, targeting and
audience segmentation are necessary.
Product repositioning is either changing the target market for the services and goods or
changing the overall positioning of the organisation. The product repositioning process has
similarity with the product positioning process (Zahid and Raja 2014). However, there is a
difference, which is in this procedure marketers evaluate the established position of service,
products and brands and emphasizes on how to alter the positioning and market perceptions to
boost the competitiveness. The aim of the product repositioning is to change market perceptions

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in a different way. Product is repositioned in such a way so as to make it more attractive for the
group of the target audience (Villas-Boas 2018).
The implication of positioning and repositioning:
If the product positioning of a business organisation is successful then it will create a
positive impact on the performance of the organisation. By following this procedure, a business
organisation can get certain benefits. Product positioning can help a business organisation to gain
a competitive advantage to product differentiation. Appropriate product positioning can support
the overall marketing strategy of a business organisation. This process can help a business
organisation to boost the competitive strength of the company in the market. Customer loyalty
and thrills can be maximized by this procedure. Inaccurate product positioning can curtail price
sensitivity.
If the product repositioning procedure of a business organisation is successful, then that
organisation can accomplish certain benefits. By conducting an effective product repositioning, a
business organisation can create a stronger competitive position. To maximize sales, effective
product repositioning can be useful. This procedure helps a business organisation to target the
market more effectively. To achieve potential media attention the product repositioning
procedure can be helpful. To align with the present market need, this procedure can be helpful
for a company.

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Q2. In the case of Burberry, demonstrate by means of a positioning map, how
the positioning of the brand will change as a result of this process. In
presenting map, also identify where on the map the following brands would be
located: Gucci and Primark

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Positioning map:
This positioning map reflects that Gucci maintains high quality and high price for its
products. Also, Burberry maintains high quality and high prices for its products. However, in
comparison with Gucci, the price and product quality of Burberry is low. Primark Company
maintains low quality and low price for its product.
Marco Gobetti is the newly appointed CEO of Burberry company. The new CEO of this
organisation has developed a new strategy. As a result of this Burberry products will have an
opportunity to reposition itself in the family of the luxury sector. This can be done by extending
the price framework and tracing black sails to grassroots level retailers and wholesalers. Newly
appointed cm is interested to modify the price architecture of this company. By using market
positioning and repositioning procedures, this organisation is interested to maximize its market
share. By creating new luxury leather goods and accessories, the management team of Burberry

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will target the new high in customers. However, this organisation is also interested to attract
younger buyers. At present in the luxury market younger buyers play an extremely significant
role. The marketing team of organisation research to identify young buyers as a promising
market segment. According to the report of Consumer research for Designer Fashion-UK,
November 2017, young buyers between the ages of 16 to 24 years are the most active buyers of
luxury products. Young buyers are very much interested to purchase more accessible entry-level
products. This market segment is targeted by Blueberry Company.
Q3. Provide two methods which brands such as Burberry might use to achieve
repositioning.
To achieve the success of repositioning Burberry, which is a premium brand, can utilise
two methods which are market penetration and product development.
Market penetration:
This strategy can be useful to boost the market share of a specific product of Burberry
Company. By using this strategy, the marketing team of this organisation can determine the size
of the potential market (Alkasim et al. 2018). By using this method the marketing team of this
company can provide extra effort to dig deeper within the existing marketplace. So it can be said
that to get the benefits of repositioning the process this organisation has to provide extra effort to
dig deeper within the existing marketplace.
Besides that this company is expanding its digital reach. This initiative of this company
will help Burberry Company to improve the online platform of this company. Customers can
order products from stores through the online platform. Augmented reality application is
launched by this company to help the customer.

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Product development:
By following the product development process, Burberry Company can get the benefits
of product repositioning process. Product development is an activity that can create new products
or modify existing products (Stark 2015). To fulfil the current needs, wants and demands of the
customer, product development is necessary for a company. The newly appointed so is interested
to target the high-end market segment and young buyers as target market segments. That is the
reason for which this organisation has to prioritise the product development process.
Thus it can be concluded that the Burberry Company can take the benefits of product
positioning and product repositioning procedure by following by using certain methods like
market penetration and product development. This method will help this company to attract
potential customer with new products. Besides that this company is investing to improve its
online platform, which will help this company to provide customer satisfaction.

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References:
Alkasim, S.B., Hilman, H., Bohari, A.M.B., Abdullah, S.S. and Sallehddin, M.R., 2018. The
mediating effect of cost leadership on the relationship between market penetration, market
development, and firm performance. Journal of Business and Retail Management
Research, 12(3).
Armstrong, G.M., Kotler, P., Harker, M.J. and Brennan, R., 2018. Marketing: an introduction.
Pearson UK.
Lei, N. and Moon, S.K., 2015. A Decision Support System for market-driven product positioning
and design. Decision Support Systems, 69, pp.82-91.
Stark, J., 2015. Product lifecycle management. In Product lifecycle management (Volume 1) (pp.
1-29). Springer, Cham.
Villas-Boas, J.M., 2018. A dynamic model of repositioning. Marketing Science, 37(2), pp.279-
293.
Zahid, S. and Raja, N.S., 2014. Effect of rebranding and repositioning on brand equity
considering brand loyalty as a mediating variable. IOSR Journal of Business and
Management, 16(1), pp.58-63.

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