Burberry's Market Repositioning: Strategies and Positioning Map

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Assignment 2
Individual Assignment
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Table of Contents
Introduction......................................................................................................................................3
Task..................................................................................................................................................4
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................8
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Introduction
Market positioning and repositioning is the most significant attribute of marketing. It is
associated with attracting more customers towards the business and increase the sale. Here, the
importance and relevance of positioning and repositioning of Burberry will be discussed along
with providing a positioning map. The methods will be discussed, which are essential to achieve
the repositioning successfully.
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Task
1. 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?
Market positioning is an important attribute of marketing. It is associated with influencing and
stimulating the perception of customer towards a particular products or brand. The main
importance of this approach is relying on the development of noteworthy impression in the mind
of targeted customer for a particular product or brand, which is associated with perceiving the
product in a significant way (De Jorge Moreno and Carrasco, 2016). This helps in increasing the
sale of a particular product in many folds. Market repositioning is another important tool of
business strategy, which is related with changing the status in market place in the favour of
increasing the sale of that particular brand or product. The most important relevance of market
repositioning is that it helps an organisation to achieve more success in any circumstances. The
case study has shown that Burberry experienced a reduced sale rate due to the Sterling’s
weakness. Hence, to maintain proper financial status, they focused on increasing their sale, to
achieve that it is concerning to develop proper planning of repositioning (Iyer et al., 2018).
Burberry is found to utilise various important method for the effective repositioning of their
product. These methods include renewing of brand appeal, innovation and improvement in style
and designing of products, various retail offering and improvement in digital activity. This type
of moves plays a significant positive role in achieving the repositioning successfully. Improving
in the designing and style of their product would help to replace the traditional fashion and
hence, help to attract various younger customer towards them. Increase in providing several
offering be related with influencing the customer for purchasing products from them due to the
discount offered by them. This is allied with increasing the sale of the organisation. Improvement
in digital activity is the most essential features that help to increase the sale (Villas-Boas, 2018).
As it provides significant facilities to the customer for accessing, the purchasing in way that is
more comfortable. It is an effective approach, which help to meet all the needs of customers in a
superior way.
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High Quality
Low Quality
Low PriceHigh Price
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
Positioning map is a visual diagram, which is designed to the understanding level of targeted
customer regarding the positioning of a particular product in the market place. It is an important
approach, which help to recognise the perception of the targeted customer in an effective way
(Capriello and Mastretta, 2016). It helps to identify the main problems regarding any product of
the market place and help to clarify it in way that is more significant.
It has been shown that, Gucci and Burberry are associated with providing high quality products
with high price, where as Primark is found to produce high quality product with low price.
Hence, Primark becomes more able to attract more customers as it is offering a high quality
product with low price, thus, it is seen that every customer prefers to purchase from the
company. As a result, Gucci and Burberry focused on attracting customer toward them to
promote and maintain their sale. They are associated with providing several offers and discount
to their customer to increase the selling rate. It is estimated that Burberry is concerned to develop
new brand appeal to improve their sale margin by replacing the old tradition of fashion to attract
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younger customer. They focused on improving digital activity to achieve the wanting and
satisfaction level of their customer in beneficial way.
3. Provide two methods, which brands such as Burberry might use to achieve repositioning
The most important two methods, which are associated with achieving successful repositioning,
are briefly discussed in below:
Development of new design: It is an important method that are utilised for proper repositioning.
It is associated with develop new fashion styles and design to develop various new fashionable
products. This helps to replace the traditional and old fashion by the new one, which is
associated attracting more customers especially who are belongs to the young generation
(Stourm et al., 2017). This help to carry out various designs according to the need of their
customer. This approach is more effective in meeting the satisfaction level of the customer in
proper way hence stimulate the sales growth of the organisation.
Retail offering: Burberry has experienced a tremendous reduction in their sale for the negative
effect of Sterling’s weakness hence they supposed to increase their sale for replacing their
economical losses. They focussed on producing product with high quality to achieve the trust
and reliability within the customers (Wheatley, 2015). They are found to offer significant
discount to their every product to increase their sale by attracting more customers. Another
important fact in this matter relies on the fact that they produce high quality product with high
price. This high price often related to decrease the customer volume, as not all customers are
willing to buy too expensive product, hence they are concerning to produce more offer and
discount to attract customer and their purchasing to increase their sale and profit.
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Conclusion
It can be concluded that to improve the sale and maintaining the constant sale margin of a
business organisation, it is essential to positioning and repositioning of products and brands in
marketplace. It has established that development of digital activity, renewing of brand appeal,
various retail offering and improve in design and style of products are associated with proper
repositioning.
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Reference list
Capriello, A. and Mastretta, I., 2016. 14 Product innovation for repositioning and destination
development marketing strategies. Automobile Heritage and Tourism, 39, p.209.
De Jorge Moreno, J. and Carrasco, O.R., 2016. Efficiency, internationalization and market
positioning in textiles fast fashion: The Inditex case. International Journal of Retail &
Distribution Management, 44(4), pp.397-425.
Iyer, P., Davari, A., Zolfagharian, M. and Paswan, A., 2018. Market orientation, positioning
strategy and brand performance. Industrial Marketing Management.
Stourm, V., Bradlow, E. and Fader, P., 2017. Market Positioning Using Cross-Reward Effects in
a Coalition Loyalty Program. HEC Paris Research Paper No. MKG-2017-1242.
Villas-Boas, J.M., 2018. A Dynamic Model of Repositioning. Marketing Science, 37(2), pp.279-
293.
Wheatley, E.W., 2015. Repositioning the Marketing Curriculum. In Proceedings of the 1985
Academy of Marketing Science (AMS) Annual Conference (pp. 137-140). Springer, Cham.
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