Burberry Brand Repositioning Strategy: A Marketing Report

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INDIVIDUAL REPORT
BURBERRY

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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?
Importance of positioning and repositioning for marketers
Brand position is the process of directing all the branding and marketing activities towards the
targeted customers. The primary aim of the brand positioning is to provide a unique position to
the brand so that it can create a distinction among the competing brands. The brand
positioning is achieved by the marketers by emphasizing on the unique features of the product
or by creating a distinct image of the brand by the means of advertising campaigns (Sirianni et
al., 2013). A brand can position itself as a luxury, premium or inexpensive brand by the means
of pricing and marketing strategy.
Brand repositioning is a strategy which needs to be adopted by the company in order to face
the competitive forces in the market. It involves altering the current perception of the
customers regarding a brand so that the brand can compete more effectively in different
market segments. Brand repositioning is a difficult process as the perception of the target
customers need to be altered according to the new brand strategy.
There are a number of reasons which trigger the decision to reposition a brand. These reasons
may include the launch of an innovative product by the competitor which creates a threat of
making the present offering of the company obsolete. Changes in consumer confidence or the
changes in the market trends may also become a reason for the company to initiate a brand
repositioning exercise (Fuchs and Diamantopoulos, 2010). Changes in the international
environment such as changes in the organizational leadership can also trigger the brand
repositioning decision.
Implications for the performance of the business if such a move is successful
If the brand reposition strategy of Blueberry becomes successful it will help the company meet
the expectation of the customer and strengthen its sales figures in the domestic market. The
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repositioning strategy may also include introducing new designs of the clothes and accessories
and it can become s reason for increased sales for the company (Gammoh et al., 2011). Better
sales provide brand strength to the company which is helpful in increasing the consumer
confidence in the long term.
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2. In the case of Burberry, demonstrate by means of a positioning
map, how the positioning of the brand will change as a result of this
process
Figure1: Brand positioning map
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The figure above shows the brand positioning of Burberry with respect to its strongest
competitors Gucci and Primark. At present, the company is offering high-quality products at a
high price range. The closest competitor Gucci is also offering high-quality products but the
price range of Gucci is lower as compared to Burberry (Müller et al., 2013). Primark is offering
comparatively lower quality products in a lower price range which provide a greater volume of
sales to the company. The company has not been able to effectively reduce the price of its
products and this is the reason Burberry has registered weak growth in the domestic market
and there is an immediate need to boost its present sales.
Burberry wants to retain its young customers and to make this strategy successful there is a
need to reduce the prices of the products without compromising on the quality of products.
Some new design of the bags and other accessories also need to be launched to compete with
the strongest competitors like Gucci and Primark. The company has already started high
activities in making digital advertising and providing online facilities to its customers. The
company can leverage its current position further by making the design of the website more
users friendly and providing new discount offers for the customers.
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3. Provide two methods which brands such as Burberry might use to
achieve repositioning
BRAND REJUVENATION
It is the process of changing the look and the feel of the brand while keeping the basic structure
of the brand untouched. In this strategy, the visible features of the brand such as color scheme,
logo or website design can be changed so that the perception of the customers regarding the
brand can be changed.
Advantages
 This strategy can be advantageous for Burberry as it has an established brand in the
market and it is easy to peruse the rejuvenation plan (Kapferer, 2012).
 The current visual identity of Burberry has become out-dated and the strategy will help
the company reconnect with its existing customers.
Disadvantages
 The process of rejuvenation is bound to increase the budget of the company on brand
positioning in a newer way.
 It may also become a reason to alienate the existing customers of the company.
BRAND RELAUNCH
This involves launching a brand in a brand new manner. The purpose of this brand re-launch
exercise is to improve the market share and the profits of the brand. Blueberry can benefit from
this strategy by adding some additional features to the products before re-launching. A detailed
study of the market trends and the competitor offers is required before re-launching a brand.
The advertising campaign designed by the company plays an important role in making this
strategy successful.
Advantages
 Brand re-launch can attract new customers as the existing image and message become
stagnant after some time. Along with attracting new customer, the company can also
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benefit from rekindling the interest of the existing customers in the brand (Lucarelli, and
Hallin, 2015).
 Brand re-launch can also help the company shift its focus to achieve new goals. These
new goals are necessary to stay competitive in the business.
 When a brand is re-launched, a wave is started in the market and people start talking
about the product. This is a brilliant opportunity for the company to increase its sales.
Disadvantages
 This strategy may also become a reason for losing a few existing customers.
 The whole brand re-launching exercise causes extra expenses to the company (Müller et
al., 2013).
 Re-launching process may also become a reason for chaos as the customers get
confused about the current status of the brand; therefore, communication is necessary
by the means of different channels.
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REFERENCES
1. Fuchs, C. and Diamantopoulos, A., 2010. Evaluating the effectiveness of brand-
positioning strategies from a consumer perspective. European Journal of
Marketing, 44(11/12), pp.1763-1786.
2. Gammoh, B.S., Koh, A.C. and Okoroafo, S.C., 2011. Consumer culture brand positioning
strategies: an experimental investigation. Journal of Product & Brand Management,
20(1), pp.48-57.
3. Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and
strategic thinking. Kogan page publishers.
4. Lucarelli, A. and Hallin, A., 2015. Brand transformation: a performative approach to
brand regeneration. Journal of Marketing Management, 31(1-2), pp.84-106.
5. Müller, B., Kocher, B. and Crettaz, A., 2013. The effects of visual rejuvenation through
brand logos. Journal of Business Research, 66(1), pp.82-88.
6. Sirianni, N.J., Bitner, M.J., Brown, S.W. and Mandel, N., 2013. Branded service
encounters: Strategically aligning employee behavior with the brand positioning. Journal
of Marketing, 77(6), pp.108-123.
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