Burberry Brand Repositioning: A Marketing Strategy Analysis

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

MINTEL FASHION ACCESSORIES REPORT
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TABLE OF CONTENTS
TABLE OF FIGURES......................................................................................................................... 3
INTRODUCTION............................................................................................................................. 4
TASK1............................................................................................................................................. 5
IMPORTANCE AND SIGNIFICANCE OF REPOSITIONING AND POSITIONING FOR MARKETERS.. .5
TASK 2............................................................................................................................................ 9
HOW POSITIONING MAP WILL HELP BURBERRY TO CHANGE ITS POSITION IN THE MARKET....9
TASK 3.......................................................................................................................................... 10
TWO METHODS USED BY BURBERRY TO ATTAIN REPOSITIONING..........................................10
CONCLUSION............................................................................................................................... 11
REFERENCES.................................................................................................................................12
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TABLE OF FIGURES
FIGURE 1: POSITIONING.................................................................................................................5
FIGURE 2: REPOSITIONING BURBERRY’S PRODUCT.......................................................................7
FIGURE 3: BURBERRY’S REPOSITIONING THROUGH DIFFERENT METHODS.................................10
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INTRODUCTION
In this assignment report will be prepared based on the case study of Burberry and this
assignment will focus on explaining the importance of positioning and repositioning the brand
that will help the Burberry to gain its objectives. Various implications will also be discussed if
the move taken up by the Burberry in the market is successful.
In the next section, positioning map will be used to demonstrate the position of the product of
Burberry and thus at last two methods will be explained to reposition the brand such as
Burberry.
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TASK1
IMPORTANCE AND SIGNIFICANCE OF REPOSITIONING AND POSITIONING FOR
MARKETERS
POSITIONING
Positioning is the process in which marketers try to position their product in a very different
manner through which a customer could find out the usefulness of that product (Iyer et al.,
2018). Positioning can also be explained in other words that it is the perception of the
customers about the products and services.
FIGURE 1: POSITIONING
[Source: Iyer et al., 2018]
For example, the positioning of a brand can be explained here such that, a marketer wants to
position a soap then marketer will use the strategy to position the product in a manner so that
customer will be able to find-out its utility.
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Dove soap has position itself that it will make a customer younger and prettier; it makes your
skin glow and soft. If the customers do not find these attributes in soap they will not accept the
product. Thus in this manner, different brand positions themselves in the market to satisfy and
attract customers.
Significance or importance of brand positioning
 Brand positioning is important for Burberry because it will help in the decision-making
process of their product and it also makes things clear to the marketer
 Brand positioning also helps in bringing effectiveness and efficiency to Burberry’s
product and thus it can be said that positioning supports Burberry to make clear goals
and to focus on their target customers for achieving success (Heinberg et al., 2017)
 Brand positioning will also help Burberry to control the market, if Burberry’s product
has the best brand positioning then other competitors have to make strategies
according to its brands
 Burberry will be able to formulate strategies for promotion and marketing through
positioning (Heinberg et al., 2017)
 By giving a new positioning to the Burberry’s product it will be easier to satisfy the
needs of customers
 The market changes that are analyzed in the case study can be responded by
positioning products of Burberry (Heinberg et al., 2017)
Physical attributes
The physical attributes of the Burberry will be its functionality and its capability that can be
defined as, Burberry has positioned itself as a well-known brand for providing cosmetics,
fashion accessories, sunglasses, outerwear and fragrances (Belboula et al., 2018).
Marketing communications
The Burberry has communicated to its market by defining its target market and positioning and
the heritage of the company (Belboula et al., 2018). The target customers are the persons those
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who are more conscious about fashion, who have higher purchasing power and those who fall
under the age group of 18-30 years.
Repositioning
Repositioning can be defined as retargeting the market and changing the customer’s perception
again to respond to the changes in the market (Edwards, 2019).
In case of Burberry, the company has decided to reposition its brand by defining its products as
luxury products and also by increasing the price and they will also focus on selling their
products to wholesalers for achieving success in the market.
FIGURE 2: REPOSITIONING BURBERRY’S PRODUCT
IMPLICATIONS FOR THE SUCCESS OF REPOSITIONING
If the repositioning of the Burberry is successful it will give the following conclusions:
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 It will help the Burberry to create a better brand image
 Repositioning will attract new customers (Edwards, 2019)
 Profit and sales margin of Burberry can be increased
 Burberry will be able to give higher competition to other brands
 It will also help in responding to market changes
 Customers will be able to find brand value (Edwards, 2019)
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TASK 2
HOW POSITIONING MAP WILL HELP BURBERRY TO CHANGE ITS POSITION IN
THE MARKET
Positioning map
Positioning map can be defined as a process or a method, through which companies try to
redefine its products to customers in terms of price, quality, value etc. in this process Burberry,
will be positioning its products as luxury products by increasing its price (Moon and Kamakura,
2017).
Position map will help Burberry to attain its position in the market by comparing different
competitive brands in the same map and thus customer will have clear perception. The
different strategy and position of Burberry can automatically be understood to customers by
using a positioning map.
PRESENTING THE BRAND POSITIONS THROUGH POSITION OR PERCEPTUAL BRAND
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Price high
Quality low
Price low
Quality high
BURBERRY
GUCCI
PRIMARK

TASK 3
TWO METHODS USED BY BURBERRY TO ATTAIN REPOSITIONING
The two methods used by Burberry to reposition itself in the market are:
FIGURE 3: BURBERRY’S REPOSITIONING THROUGH DIFFERENT METHODS
Competitive repositioning
Burberry has decided to reposition its brand to respond to the other competitors in the market.
Burberry has decided to reposition itself by providing luxurious fashion accessories to
customers (Wang and Shaver, 2016). They have also decided to increase the price of the
products by improving product quality. By doing so, or by adopting this strategy Burberry has
changed its target market and thus now new customers of the company will be that person
who has more purchasing power.
Image repositioning
Burberry has changed its image repositioning by adopting digital activity for its brand, the
company has decided to introduce a mobile app. Burberry has decided to increase the reach of
the customers through digitalization (Gaustad et al., 2019). It has also focused on fulfilling
customer's needs through a digital platform by providing better pictures of fashion products
and also they have used social media to reach more customers to reposition their brand.
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CONCLUSION
Thus this is to be concluded that the famous fashion brand Burberry was facing several
problems due to higher competition in the market. It has been mentioned that the company
wants to reposition its brand to attract more customers and to increase their profit margin so
that they can achieve success. In the above report, the importance of positioning has been
explained along with the reasons for repositioning of Burberry. The perceptual map has been
used to compare the position of Gucci, Primark, and Burberry. And at last two methods has
been explained that Burberry can use to reposition itself. This report successfully represented
all the aspects that Burberry used to respond to market changes.
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REFERENCES
Belboula, I., Ackermann, C.L., Mathieu, J.P. and Cuny, C., 2018. Consumers’ responses to
product design: Using a Semantic Priming Task to assess automatic understanding of product
positioning. International Journal of Market Research, p.1470785318777429.
Edwards, R.A., 2019. How Organizations and Their Brands Leverage Marketing Partnerships to
Enhance Their Success: The Guidelines to Navigating Both Reaffirming and Repositioning
Strategic Partnerships.
Gaustad, T., Samuelsen, B.M., Warlop, L., and Fitzsimons, G.J., 2019. Too much of a good thing?
Consumer response to strategic changes in the brand image. International Journal of Research
in Marketing.
Heinberg, M., Ozkaya, H.E. and Taube, M., 2017. The influence of global and local iconic brand
positioning on advertising persuasion in an emerging market setting. Journal of International
Business Studies, 48(8), pp.1009-1022.
Iyer, P., Davari, A., Zolfagharian, M. and Paswan, A., 2018. Market orientation, positioning
strategy, and brand performance. Industrial Marketing Management.
Moon, S. and Kamakura, W.A., 2017. A picture is worth a thousand words: Translating product
reviews into a product positioning map. International Journal of Research in Marketing, 34(1),
pp.265-285.
Wang, R.D. and Shaver, J.M., 2016. The multifaceted nature of competitive response:
Repositioning and new product launch as a joint response to competition. Strategy Science,
1(3), pp.148-162.
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