Case Study Analysis: Burberry's Shift to Luxury Branding

This case study analyzes Burberry's brand repositioning strategy, exploring the shift from a premium to a luxury brand. It examines the importance of positioning and repositioning for marketers, delving into customer needs, competitive pressures, and communication channels. The study assesses the performance implications of this move, including increased profits and enhanced brand reputation, alongside the methods employed for brand repositioning, such as product and brand differentiation. The analysis highlights the challenges of transitioning brands, emphasizing the need for quality maintenance, innovation, and strategic marketing to compete in the luxury market, referencing concepts like product differentiation and brand differentiation. The conclusion summarizes the complexities of the transition and the necessity for consistent brand image and quality to succeed.

INDIVIDUAL CASE
STUDY ANALYSIS

Table of Contents
Introduction..........................................................................................................................................3
Task 2....................................................................................................................................................3
1.Importance of positioning and repositioning for marketers..........................................................3
2.The performance of the business if above move is successful.....................................................4
3.Methods to achieve brand repositioning.......................................................................................5
Conclusion............................................................................................................................................5
References............................................................................................................................................6

Introduction
Brand is a name, value, design or symbol that identifies or which act as an identification of a
company. Brands are mostly used in marketing of business and advertising. A good brand name can
give the company an extraordinary place in the world. Different clothing material have different
brands in it. For example, In shoes, Nike, Adidas etc. are normal brands but if we go in luxury shoes
brand then Gucci, Armani etc. are taken. In this study we analysed how a premium brand when
enters into luxury brand is affected. Burberry is a clothing brand headquartered in London,UK. It
was founded by Thomas Burberry in 1856 in England. The topics discussed the importance of
positioning and repositioning of marketers. It also discuss the positioning map of Burberry and how
it will change after the process. In last it discusses the methods of repositioning used by Burberry.
Task 2
1.Importance of positioning and repositioning for marketers.
1) Understanding Customer needs: product positioning requires understanding customers
properly so that right and correct communication channels can be used and key messages
will be given. The customer needs should be properly identified. For example, not only
women over 25 years age by also women of age 25 to 30 years likes to do physical
activities. The customer ned can be identified based on demographic and lifestyle of a
person(Atwal and Williams, 2017.)
2) Weigh competitive pressures: marketers must see the competitive pressures before
positioning elements of their marketing plan. Effective positioning convey to customer why
this company's product or service should be preferred over other competitors. Effective
marketing plan differentiate the company's product with its competitors product.
3) Targeting communication channels: Product positioning help marketers know that how their
offerings are different from others. Proper communication channels should be identified so
that good customer can be targeted. For example, Automobile manufacturers advertise their
product of position their products in television commercial in sporting events or how
cosmetic manufacturer run full colour advertising in women's magazines.

2.The performance of the business if above move is successful
1) The profits of the company will increase as the sale will increase. The people will buy more
of that product. As more and more people will but the product of Burberry so its goodwill
and reputation in the market will also increase(Blakeman, 2018.).
2) Firstly it was a premium brand and now it will be counted with all the luxury brands like
Gucci, Louis vuitton, Michele Kors etc.
3) The goodwill of the company will lead to the marketing of company and film stars can be
appointed to advertise the company. People are very much attracted with the name and
goodwill of the company.
4) If the company has to improve its image and give good competition in the international
market the n they have to increase their quality of product. The quality of company like
Gucci and Armani are very good and people face no problems after buying their products.
The company must act and their stores should be made like a luxury store and they should
be in prime locations in every country.
5) The company from time to time should bring innovation in their products so that they are
able to cope with the changes. Old products reduces the brand image of the company.
Burberry was previously marked at low price and medium quality when it was considered a
premium product. Premium product are those product on which less expenditure is done on quality
and price is also less so that more people can buy it from the market. The company;s aim was
increase in sales and profits when it was a premium brand. Now the aim of the company has

changed after becoming in the luxury sector(Urde, 2016).
The company is marked at high quality and high price in positioning map after going into luxury
sector. The company now do more investment on quality and looks after going into luxury sector.
People feel the need of more attractive bag when they purchase from the luxury brands. Louis
Vuitton and Gucci are placed in high quality and high price from a long time because of their same
quality. These brands have never degraded their quality as one mistake can affect their whole image
in the market. Burberry must maintain the quality of its product if it want to sustain in the market
and compete these international brands. Raw material should always be taken from good supplier.
Good services should be provided to its customer so that they become loyal to the brand. Loyal
customers are very important to a company as they purchase most of the products from a fixed
company. Attractive offers should be given to customers so that they are bound with the company
every time. Proper feedback should be taken from the customers so that the company can take
corrective measures for any problem(Blankson, 2016.).
3.Methods to achieve brand repositioning
1) product differentiation: product differentiation is the process of distinguishing a product
from other service or product. It can be done to to make the product attractive in the market.
Firm's product can be differentiated in various fields like in quality, price, design, looks etc.
different products have different quality and they are of different prices too. Product with
good quality and deign are usually less available and are expensive. Different products are
marketed differently too according to their use and demand(Heding and et.al., 2015).
2) Brand differentiation: Different brands are there in the world today. Each brand
manufactures different product. Brand can be divided on the basis of different prices, quality
and different names. Every brand gives a different experience and feel.
Conclusion
From the above study it is concluded that it is tough for a company to change from a premium
brand to luxury brand as it take time for customers to take it. Quality and prices of product increases
when a brand enters into luxury. Sales are less as compared to the previous ones. The company must
improve the brand name and image to be able to cope with the competition of the market.

References
Books and Journals
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.
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to implementation.
Rowman & Littlefield..
Blankson, C., 2016. Positioning a brand. The Routledge companion to contemporary brand management,
pp.164-185.
Heding, T. and et.al., 2015.Brand management: Research, theory and practice. Routledge.
Urde, M., 2016. The brand core and its management over time. Journal of product & brand
management.25(1). pp.26-42.