Burberry Brand Repositioning Strategy: A Marketing Report

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

Digital Marketing
: Burberry
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TABLE OF CONTENTS
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?.............1
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................................................2
3. Provide two methods which brands such as Burberry might use to achieve repositioning.....3
References........................................................................................................................................5
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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?
Positioning can be defined as the specific place that is occupied by the brand as per the
perception of customers along within its distinctive qualities and characteristics in terms of their
product as compared to their competitors. The main motive of positioning is to create positive as
well as appealing image for leveraging unique strength of the brand. In context to Burberry,
marketers might create positioning statement for both individual products as well as business
organization (Fahy and Jobber, 2015). On the other hand brand repositioning is associated with
changes of the organization in terms of brand status within the marketplace. This might include
changes to its marketing mix elements such as product, promotion, place and price. By observing
the changes undertaken by the competitors of Burberry such as Gucci, Coach, etc, the
organization has made certain decisions related to positioning and repositioning of products for
the marketers.
From the article it has been identified that products like small leather goods and handbags
performed well that contribute towards increase of 16% of the total sales in the year 2017. This
increase was because of launch of new Bridle and Buckle bags along with novelty related to
established styles. Such type of bags in new category is one of its successful brands positioning
strategy and contributed to its business growth for the next of the few years. Its successful brand
positioning strategy further supported higher authorities to make decisions related repositioning
of firm towards the luxurious sector by focusing on extension of its pricing architecture. This
repositioning strategy will include development of new luxury leather products for attracting new
high end consumers in the market (Mark Ritson, 2017). In addition to this, the organization has
higher focus towards leveraging the digital reach so that products are easily available for online
customers. In this context Burberry has re launched its mobile application along with attractive
content for its luxury consumers?
If strategies of positioning and repositioning of brand becomes successful then it will put positive
influence on its competitive position in the market among the brands such as Monsoon
Accessorize, Gucci, etc. This will support the organization to drive higher margins and
sustainable growth in the market. Further the business will successfully be able to deliver higher
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returns to its shareholders. In addition to this, such changes will help the organization to expand
in the markets of China, Japan, etc which are more inclined towards the luxurious brands.
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
Brand positioning will positively influence the organization in terms of its competitive position
in the market. Burberry can successful differentiate itself in the market with respect to its
competitors such as Gucci and Primark. It has been identified that Burberry has experienced
extensive growth in past few years however with the changing market trend of the fashion
industry there is greater need for businesses to alter marketing practices to meet the demand of
customers. Burberry has successfully positioned the brand with the help of its new and
innovative products. Further marketing techniques can be utilised to determine the organizational
position of Burberry in the market.
Positioning map in this context effectively illustrates the perception of customers towards the
business which is based on product benefits, quality and price of the product and will also
compare the perception of customers associated with competitors (Villas-Boas, 2018). For an
instance, successful strategies of positioning and re positioning a brand have helped the
organization to exhibit higher prices with higher quality without any difficulty. This has further
contributes towards raised profit margins and has successfully gained the attraction of customers.
Higher price and higher quality will help to retain the luxurious customers in most effective
manner and quality factor will support business to retain the customers for longer period of time.
Gucci on the other hand deals with leather products and is well known for its larger customer
base in markets like Japan, UK, etc. However the gap between both the brands is not very
broader and faces tough competition in the market. Both the organizations have reworked in its
products to escalate their sales. On the other Primark is out of league on the positioning map
because of its lower price and quality of the product and it aims at serving customers from both
higher and lower income groups.
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Figure 1: Position Map
3. Provide two methods which brands such as Burberry might use to achieve repositioning
Consumer engagement: This is one of the most effective methods for attaining success of
repositioning of the brand in the market. For enhancing the customer engagement it is essential
for businesses like Burberry to customize the products as per the demand of customers. In
addition to this, organization can also make use of digital channels with some distinctive features
for communicating with customer. This will make customers feel valued towards the business.
Attractive and accurate description of products on the social media platforms will help the
organization to gain the advantage of higher customer base and to reposition the brand image as
compared to its competitors in the market (Brand Repositioning, 2019).
Brand identity: Development of brad identity is important for repositioning the brand.
Organization’s brand identity is related to its colour schemes, slogan, logos, employees,
marketing materials, etc. Burberry must focus on changing marketing strategies that must include
attractiveness of all the elements for attracting maximum of customers in the market. For an
example, the organization must include attractive features and slogan line for selling of its
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leather bags that make its distinct from its competitors like Gucci in the market. It must also
focus on adding features on their mobile app that provides distinct experience to its customers.
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References
Books and Journals
 Fahy, J. and Jobber, D., 2015. Foundations of marketing.
 Villas-Boas, J.M., 2018. A Dynamic Model of Repositioning. Marketing Science, 37(2),
pp.279-293.
Online references
 Brand Repositioning, 2019 [Online] [Assessed through] <
https://study.com/academy/lesson/brand-repositioning-definition-strategies-
examples.html >, [Assessed on 22nd March, 2019]
 Mark Ritson, 2017 [Online] [Assessed through] <
https://www.marketingweek.com/2017/11/15/mark-ritson-burberry-repositioning/ >,
[Assessed on 22nd March, 2019]
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