Digital Marketing Strategies for Burberry Brand Repositioning

Desklib provides past papers and solved assignments for students. This report analyzes Burberry's brand repositioning.

Digital Marketing
1

Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................5
Question 3........................................................................................................................................7
References........................................................................................................................................9
2

Question 1
Positioning is a process of marketing under which products and services offered by an
organization are differentiated from the products and services offered by competitors. In
positioning, the unique selling point of the organization is discovered and communicated in
relation to the competitors. Brand Repositioning is a process in which the status of a brand is
changed by the company in the market place (Heding, et.al., 2015). Typically, it includes
changes to the marketing mix, such as price, product, place, and promotion.
Importance of Positioning
There are various factors influenced by position. These factors include the following:
Market Differentiation: Positioning helps the organization to develop and communicate
something better, bigger and distinct about the products and services offered. With the help of
positioning, the company shall be able to make its products and services more attractive to a
particular target market. The distinct identity helps the organization in driving customers towards
the offerings of the company.
Market Segmentation: It is an activity under which an organization divides its existing or
potential customers into groups based on different characteristics. Every single category includes
customers who are more likely to respond to similar needs, interests, or locations (Da Silveira,
et.al., 2013). Brand positioning helps in reaching and communicating with the target market
effectively and efficiently.
Justifies Pricing Strategies: There are instances when the value of the product is known and yet
there is a need to justify the price. Here, brand positioning is important as it compares the brand
with competitors and their offerings and this informs the customer about whether the price is
justified and strategic or not.
Importance of Repositioning
Declining Sales: When the sales of a company drop, it must take a step back to identify the
reason for such a decline in sales. The reason could be that there is a need for refreshing the
3

brand. This will increase the value of the brand in the minds of customers, thereby increasing
sales.
Competitors: The competitors of an organization are its biggest threat. If a company makes no
effort to reposition itself, then, over time, the overtime its competitors will make it seem ordinary
and the company remains at risk of getting left behind.
Target Audience: When a company is at a phase where its target customers are not generating
much revenue for the company, then the company may have to changes its target market and this
will develop the need of repositioning (Hassan and Craft, 2012).
If the process of positioning and repositioning is successful, the company Burberry shall be able
to increase its sales both online and offline.
4

Question 2
Positioning Map is the diagram which is drawn to illustrate the perception of consumers about
the business offerings based on its quality, price, value or other benefits and such perception is
compared against the offering of customers (Ellickson, et.al., 2012).
The position of Burberry before Repositioning:
5

The position of Burberry after Repositioning
According to the positioning map, the brand Burberry positioned in the category of low sales and
high brand value before repositioning. However, after the company adopts the strategies of brand
repositioning through digital marketing, it will have a positive influence over the sales of the
organization and therefore the company shall be able to increase its sales. The impact of such
change on the positioning map is depicted in the diagram (Da Silveira, et.al., 2013). The
company shall be able to secure a position in the category of high sales and high brand value.
Therefore, as a result of repositioning, the sales of Burberry shall be increased.
Further, Gucci and Primark have high sales but they have comparatively less brand value than
Burberry. Therefore, it is placed between high sales and low brand value.
6

Question 3
The two methods that can be used by Burberry to reposition its brand includes the following:
Digital Marketing
In the present era, the online presence of an organization is highly significant. It can provide the
company with access to potentially vast data which can be used to reveal insights into the brand,
its audience, and online activity. Statistics of engagement with the profiles of the company on
social media can also be viewed and it can be used to draw analytical interfaces.
It can be used by the company to interact with its customers and reach the customers globally.
The customers can be greeted with targeted offers as and when they visit the website of the
company. The company shall also be able to create engaging campaigns and these campaigns
can be made successful with the use of rich media content (Taken Smith, 2012). The company
Burberry is planning to target the young customers and the millennials are the people most active
on the internet and social media platforms. The company can benefit from this information by
making its existence online and reaching its targeted customers. Therefore, digital marketing
could be the best strategy for the company to reach customers spread over a large geographical
area and to reposition its brand and products offered.
Communication Process
Communication is the most effective tool to indulge with the customers and reposition the brand.
It helps the marketer in building the image of the company and its products and services. For the
purpose, it is important for an organization to differentiate between communication and other
marketing strategies. The marketing strategies for an organization usually involve a one-way
process. Here, an example of advertisements can be referred to. The companies advertise their
products but it is only one-way communication(Ellickson, et.al., 2012). Through advertisements,
only the companies are able to communicate their message and the customers are not able to
present their opinions.
The companies are seen to invest most of their marketing budget in activities like sales
promotion and management, advertising and distribution. However, they fail to understand the
7

need of indulging in two-way communication with the customers. Using other marketing
strategies, the company shall be able to provide the customers with attractive offers but
communication can be used to ensure that the customers are loyal. It helps the company in
providing customers with personalised products and services and the customers shall also be able
to share their preferences. This will surely influence the position of brands in the market and
industry.
Therefore, the two methods that can be used by Burberry for repositioning are digital marketing
and communication.
8

References
 Da Silveira, C., Lages, C. and Simões, C., 2013. Reconceptualizing brand identity in a
dynamic environment. Journal of Business Research, 66(1), pp.28-36.
 Ellickson, P.B., Misra, S. and Nair, H.S., 2012. Repositioning dynamics and pricing
strategy. Journal of Marketing Research, 49(6), pp.750-772.
 Hassan, S.S. and Craft, S., 2012. Examining world market segmentation and brand
positioning strategies. Journal of Consumer Marketing, 29(5), pp.344-356.
 Heding, T., Knudtzen, C.F. and Bjerre, M., 2015. Brand management: Research, theory
and practice. Routledge.
 Taken Smith, K., 2012. Longitudinal study of digital marketing strategies targeting
Millennials. Journal of Consumer Marketing, 29(2), pp.86-92.
9