Burberry's Market Positioning and Competitive Analysis

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MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................4
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

INTRODUCTION
The rapid increase in competition has been observed in various organizations. Brands and
products of various organizations are facing many issues due to this. To overcome situation the
following case study introduces many procedures like brands positioning and repositioning.
These procedures are highlighted in the given case study. Burberry is the organization selected
for better understanding of the concept. Positioning map is also explained which determines the
position of the brand in the market.

Task 1
Importance of Positioning and Repositioning for marketers and its implications on business
if the business is successful.
The positioning of products is the practice in which the image of the product is maintained. The
image is maintained in such a way that it reflects better than that of its competitors. This practice
includes the survey of products image in the market. After this survey, the position and condition
of the product in the market are determined. Burberry has observed an increase in revenue by
10%. This revenue has mainly increased due to handbags and small leather goods. In the end,
16% increase was observed due to handbags. Thus the CEO of Burberry decided to reposition
the company in the luxury sector (Palia and De Ryck, 2013). In the positioning of products, the
company works in such a way that all the needs of customers are fulfilled and the company
achieves outcomes. For the positioning of products, various steps are involved –
 Present Status of product.
 Changes required in a product.
 Determination of products reaction in the market.
 Steps to be determined for positioning of the market.
 Expectations of stakeholders should be determined.
 Expectations of employees and investors should also be determined.
Positioning and repositioning are very important for marketers. Main benefits that it can possess
for Burberry is –
1. Stronger Competitive Position – The positioning of the products leads to make the company
more strong in the competition. It is due to the reason the innovative changes were applied to the
particular product or brand and expectations of the customer is fulfilled.
2. Improved Sales – The sales were improved of the company if repositioning practice is
implemented properly. Burberry has adopted the repositioning process so that sales could be
increased.
3. Clarifies Target Market – The changes required for the particular product helps in determining
the targets of the company. As in Burberry, the company decided to adopt the practice after
determining changes required in a particular sector and product. In this way target to be achieved
is determined.
4. Identifies the current needs of the market – This procedure helps in determining the current
needs of the market. Burberry has decided for positioning in the market because it has
determined the current state of the market and then applied suitable changes for it.

The positioning of the brand, if become successful leads to the strengthening of Brand. More
outcomes can be achieved by the organization (Shakhshir, 2014). Revenue and profit are
increased at a rapid rate. In Burberry, if repositioning became successful then it contributes to
making it's luxury brand more stable and successful in the organization.

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. In presenting map, also identify where on
the map the following brands would be located: Gucci and Primark (30%).
The positioning of the map determines the place where the brand or service of the company
stands. The positioning of the brand will change according to its condition in the market. If the
brand is achieving suitable outcomes then the positioning of the brand will be high. But if the
value of the brand has been decreased then its value will be low in the positioning of maps.
High
Burberry
Low High
Gucci and Primark
Low

3. Provide two methods which brands such as Burberry might use to achieve repositioning.
Two methods through which Burberry can achieve repositioning are –
Quality – If Burberry serves the customers with its best quality products, then it is possible that a
number of customers are attracted towards the company. Best quality products attract a number
of customers. The quality should be such that it is better than other products (Gherghina, 2014).
Recognition of products – It is very important that a brand should be identified in the market.
Burberry should use any symbol or name so that its products can be identified in the market. The
recognition should be such that it is more attractive and effective than other brands.

Conclusion
Above case study concluded that positioning and repositioning play an essential role in making a
business stable and successful. It leads to the strengthening of brands image in the market.
Positioning map is used for determining the image of the product in the market. High and low are
two measures used in this positioning. Making quality products and giving recognition to brands
plays an essential role in the positioning of products.

References
 Gherghina, L., 2014. The importance of image and communication of a brand or
trademark positioning. Analele Universitatii'Eftimie Murgu'Resita. Fascicola II. Studii
Economice, pp.83-87.
 Palia, A.P. and De Ryck, J., 2013. Repositioning Brands with the Web-Based Product
Positioning Map Graphics Package. In Developments in Business Simulation and
Experiential Learning: Proceedings of the Annual ABSEL conference (Vol. 40).
 Shakhshir, G., 2014. Positioning strategies development. The Annals Of The University
Of Oradea, 977, pp.416-437.
 Sibghatullah, A., Kamran, A. and Siddiqui, K., 2016. Repositioning the Virtual
University of Pakistan. Developing Country Studies, 6(5), pp.2225-0565.