Analysis of Burberry's Brand Repositioning Strategies in the UK (2018)

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INDIVIDUAL ASSIGNMENT
MINTEL FASHION ACCESSORIES REPORT – the UK – JANUARY – 2018
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Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK1..........................................................................................................................................................4
TASK2..........................................................................................................................................................6
TASK3........................................................................................................................................................12
CONCLUSION.............................................................................................................................................13
REFERENCES..............................................................................................................................................14
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INTRODUCTION
Brand positioning and brand repositioning are the marketing strategies which aim to make a
different position of the brand in the current market conditions as per the situations of market
and customers. Brand repositioning is required when the brand laps its prior condition in the
market and experience losses in the target market (Straker and Wrigley, 2016).
Burberry a luxury brand required brand repositioning because it experiences huge competition
in the UK market and arrives at the condition of failure due to huge competition and customers’
perception. Now Burberry is the global luxury brand in the World and competes with higher
brands such as Gucci (Straker and Wrigley, 2016). Burberry founded in 1856 by Thomas
Burberry in London. Burberry is well-known for clothes, accessories, shoes, and handbags of
man, woman and children. Now Burberry is serving in more than 80 countries in the World with
250 stores (Straker and Wrigley, 2016).
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TASK1
Brand positioning is the marketing strategy to make different identification of brand in the
market as per the needs and demands of customers and current market conditions (Weston,
2016).
Brand positioning is important for sustainable growth of the brand in the market. It helps to
focus on the target market, target customers, and provide specific identification in the
competitive environment. It is a technique to win more clients in the market and fuel for
efficient decision-making (Weston, 2016).
Figure1: Brand positioning
Brand repositioning is different from brand positioning. It refers to reposition the brand in the
current market condition through the change in the market segment, product quality,
marketing mix and other factors for completing the expectations of customers.
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Brand repositioning is important for reposition the brand image in the market through
different methods of repositioning such as total repositioning, product repositioning, market
repositioning, raising brand profitability, cutting the cost of products etc. (Weston, 2016).
Figure2: Brand repositioning
Improvement in the performance of the business of Burberry due to repositioning
Burberry repositioning increases the revenue of the organization day-by-day and Burberry
added more young customers and increase their revenue by 6% in the market (BORSBOOM et
al., 2018). Repositioning helps Burberry to increase its market share in the global market and
make the brand worldwide famous. After the successful repositioning Burberry able to change
the perception of customers and fulfilling the expectations of customers. Burberry retains its
old customers by giving them unique products and attracting young generation customers
between 16-24 by promoting the brand through successful social media marketing (BORSBOOM
et al., 2018).
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TASK2
Burberry repositioned itself through different tactics of marketing such as changes in the
overall products, modifications in old designs in new designs, social media platforms such as
Snapchat, Facebook, Instagram, Twitter and its own website (BORSBOOM et al., 2018). Burberry
promotes its products in very new and unique styles which was very much liked by young
generation customers and make again make Burberry a world-class brand. Burberry started
using innovative technique and very comfortable to show the creativeness in their promotions
whether online or offline (Som and Blanckaert, 2015). Different innovative campaigns and
promotional techniques are as follows:
OFFLINE REPOSITIONING
Burberry repositions itself through luxury innovation of its stores which attracts young
generation customers towards the luxury brand. Burberry stores are less with new innovative
technology such as touch screens, customers can operate that screens and find new designs of
accessories, clothes, shoes and other products of Burberry (Som and Blanckaert, 2015).
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Figure2: Burberry stores in London
ONLINE REPOSITIONING
Art of the trench campaign was started by the Burberry brand in the UK market. It was a very
huge campaign of a fashion brand in till today. In this campaign, customers posted pictures with
Burberry products and Burberry uses customer's pictures for promotion rather than celebrity
and model (Som and Blanckaert, 2015).
Figure3: Art of trench
Burberry Acoustic launched in 2010. Burberry promoted its products through young local
musician in the UK market and it resulted in greater traction across social media platforms and
makes Burberry products as a fashion statement in UK market (Wilson and Robson, 2019).
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Figure4: Burberry Acoustic
Burberry Tweetwalk campaign: Customers posted images in Burberry products on Twitter with
the #Burberry captions (Wilson and Robson, 2019).
Figure5: Burberry Tweetwalk
Burberry Kisses campaign started for promoting cosmetic products especially lipsticks. Anyone
can send a virtual kiss to their loved ones through Burberry Kisses campaign.
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Figure6: Burberry kisses campaign
Burberry Bespoke and Scarf campaign: In this campaign, customers can easily design their own
coat and scarf with given designs and shades with simple operations (Wilson and Robson,
2019).
Figure7: Burberry Bespoke and scarf bar campaign
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From 2006 to 2014 Burberry went through a historic transformation under the suggestions of
CEO, Angela Ahrendts. Burberry revenue increased with high rates from 743 million pounds to
2523 million pounds in 2015 (Hudson, 2017).
Burberry Christmas campaign in 2018 under BAZAR COVER STAR
Figure8: Burberry Christmas campaign
Positioning maps are such diagrams which are used to illustrate the perception of customers
and current market condition of the brand with respect to quality, price, and other related
benefits of brands (Hudson, 2017).
Positioning map of Burberry, Gucci and Primark brand in the market of UK
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Figure9: Positioning map of Burberry and GUCCI
Figure10: Positioning map of Primark
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TASK3
There are different methods of repositioning of luxury brands such as Burberry, Gucci and
others, which are as follows:
Figure11: Types of Brand repositioning
Two main methods for repositioning brand such as Burberry are as follows:
Total repositioning: This method includes an overall change in brands such as changes in the
target market segment and changes in the product through modification. Burberry used this
method of repositioning by changes in their target segments by more concerning young
customers through social media. Burberry also modified their products as per young customers’
needs (Wirtz and Lovelock, 2017).
Product repositioning: Burberry can use this method of repositioning in which only product
materialistically changes but not change in the target market. Burberry can modify its products
by using other material, designs in their product and can retain old customers as-well-as attract
new customers by small modifications (Wirtz and Lovelock, 2017).
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Product
repositioning
Total
repositioning
Market
repositioning
Image
repositioning
Cutting cost
repositioning