Burberry's Brand Positioning: Strategies for Growth and Market Share

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BRAND POSITIONING
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Contents
LIST OF FIGURES..........................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................5
TASK 2..........................................................................................................................................................6
TASK 3..........................................................................................................................................................8
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10
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LIST OF FIGURES
Figure 1: Burberry Logo...............................................................................................................................4
Figure 2: Positioning Map............................................................................................................................6
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INTRODUCTION
Positioning is a strategy adopted by the organizations to create a unique identity of its brand in the
minds of the customers (Kratchman, 2017). In this report, the importance and relevance of positioning
and repositioning for marketers of Burberry have been studied. Burberry is a luxury fashion brand which
was established in the year 1856 by Thomas Burberry. The firm is headquartered in London and has its
presence in about 498 locations worldwide (Burberry, 2019). The report also covers the impact of
various strategies and methods of repositioning and with the assistance of the positioning map; the
result of the process has also been studied.
Figure 1: Burberry Logo
[Source: Burberry, 2019]
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TASK 1
In the context of the given case, Burberry is required to adopt the process of positioning and
repositioning. Positioning is a process that can be utilized by Burberry to create a differentiation
between the products offered by the organization from that of its competitors (Harré, 2015).
Repositioning, on the other hand, focuses on the creation of a separate identity of the existing product,
to gain a competitive advantage in the market. Positioning and repositioning can assist Burberry in
various ways, some of which are as follows:
1. Creating Market Differentiation
Burberry can utilize positioning to create a unique position of its established unique styles to
create a distinctive image from its competitors like Mulberry, Givenchy, Gucci, etc. (Okonkwo,
2016).
2. Improving Sales
With the implication of positioning and repositioning, Burberry can increase its sales by
targeting over the young generation by providing them a blend of latest styles of handbags and
other fashion accessories (Atwal and Williams, 2017).
3. Gaining New Customers
Though Burberry has already been established as a popular brand in fashion, positioning of its
brand can assist the organization in gaining new customers through understanding their needs
through positioning their products accordingly.
4. Increasing Value of Money for Customers
Positioning products through reworking in their product offering can also provide a higher value
of money to the customers and as a result, would generate higher preference by the customers.
Through the application of positioning and repositioning, Burberry can stand up to the increase in
competition in the market and develop a creative process of decision making through improvising its
product chain and giving them a unique identity in the minds of the customers (Massara et al., 2018).
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TASK 2
Positioning maps are the diagrammatic illustrations used by the marketers for the development of
suitable positioning strategy. Through the positioning maps, Burberry can understand the perception
held by the customers regarding its brand (Okonkwo, 2016). The positioning maps can assist Burberry in
understanding where the existing products are positioned in the market. The map involves four grids
through which Burberry can position its products. The firm has satisfactory products for almost all
generations and has managed to establish itself as a luxury fashion brand against other competitors.
In the fashion market, the biggest competitors of Burberry are Gucci, Primark, Louis Vuitton, etc. where
the products offered by Gucci are highly influenced by the latest trends. Gucci has strategized in keeping
its brand as rare and exclusive and thus is able to charge a high price for its products (Pham et al., 2018).
On the other hand, Primark has been seen adapting positioning strategies similar to Burberry and offers
the product at a lower cost than Burberry. Following is the positioning map representing Burberry,
Gucci, and Primark positioning in the market:
Figure 2: Positioning Map
[Source: Okonkwo, 2016]
Burberry has established itself as a luxury fashion brand. However, due to its late delivery of latest
fashionable products, it is not able to cope up to Gucci in the context of positioning. Gucci has priced its
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products premium and provides high quality to its customers. Therefore, the perception of Gucci in the
minds of the customers is as a premium brand and is positioned higher than that of the others. Also, the
customers of Gucci are not much affected by the quality provided by the firm due to its high-end
positioning in the market. Primark provides a wide range of products to its customers but has priced its
products lower than Gucci and Burberry. It has positioned itself as a leading retailer and relishes a huge
consumer base by providing lower prices (Quan and Shen, 2017). Burberry has priced its products
between the premiums pricing to low-cost products by a thorough evaluation of the market. Also, with
the use of digital platforms, Burberry has increased its access to customers which has increased its
consumer base and is positioned as a high-quality brand in the market.
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TASK 3
Repositioning refers to changing the existing positioning of a brand in the market and developing a new
strategy to compete with the competitors (Villas, 2018). Burberry is required to reposition its product to
eliminate the decline in its sales and generate and sustain a higher customer base. With the change in
preferences of customers over time, the firm can adopt the following repositioning strategies:
 Using Up-Market Technology
Burberry is required to position itself using the up-market technology, i.e. providing major
fashion services online and easily accessible to the customers (Dubois, 2017). With the rise in
technology over the years, the firm can utilize the technology awareness in increasing its reach
to the customers can enhance its luxury services by using high technology which would result in
higher customer satisfaction.
 Image-Oriented Repositioning
Burberry is required to change the image that it has created in the minds of the customers and
develop a separate ultra-luxury image as the fashion industry has been constantly changing and
the preferences of customers have been demanding higher luxury brands than valuable brands
(Derval, 2018). Through repositioning the brand into a higher luxury brand, Burberry can relish
higher market share and consumer base.
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CONCLUSION
Hereby, it can be concluded that positioning stands of huge importance in a fashion giant like Burberry.
It has also been studied that positioning and repositioning hold a major impact on the fashion industry
and with the use of various techniques like positioning maps, the positioning of the product in the
market can be determined. At the end of the report, various repositioning strategies that can be
adopted by Burberry are recommended through which the firm can cope up with the decline in its sales
and capture a higher market share.
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REFERENCES
1. Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!. In
Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
2. Burberry, 2019, Company, online available at https://www.burberryplc.com/en/company.html
last accessed on 21st March 2019.
3. Derval, D., 2018. Finding the Right Positioning. In Designing Luxury Brands (pp. 51-76). Springer,
Cham.
4. Dubois, D., 2017. Digital and Social Strategies for Luxury Brands. In Luxusmarkenmanagement
(pp. 327-337). Springer Gabler, Wiesbaden.
5. Harré, R., 2015. Positioning theory. The International Encyclopedia of Language and Social
Interaction, pp.1-9.
6. Kratchman, S. and Kim, S., 2017. Positioning. Microsurgery in Endodontics, pp.221-226.
7. Massara, F., Porcheddu, D. and Melara, R.D., 2018. Luxury brands pursuing lifestyle positioning:
effects on willingness to pay. Journal of Brand Management, pp.1-13.
8. Okonkwo, U., 2016. Luxury fashion branding: trends, tactics, techniques. Springer.
9. Pham, M., Valette Florence, P. and Vigneron, F., 2018. Luxury brand desirability and fashion‐
equity: The joint moderating effect on consumers’ commitment toward luxury brands.
Psychology & Marketing, 35(12), pp.902-912.
10. Quan, V. and Shen, B., 2017. Evolution of luxury fashion brands. In Luxury Fashion Retail
Management (pp. 11-18). Springer, Singapore.
11. Villas-Boas, J.M., 2018. A Dynamic Model of Repositioning. Marketing Science, 37(2), pp.279-
293.
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