Burberry's Digital Marketing Strategies: A Case Study

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Principles of Marketing and Communications in a Digital World
A case study of Burberry
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Table of Contents
Introduction......................................................................................................................................3
Significance and relevance of positioning and repositioning for the marketers..............................3
Implications for business performance............................................................................................4
Positioning map for Burberry..........................................................................................................4
Repositioning methods for Burberry...............................................................................................5
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
The report aims at analyzing the principles of marketing and communications in a digital world
using the case study of Burberry. It will identify the significance of positioning and repositioning
for marketers in the competitive digital world. It will signify the implications for business
performance after attaining successful move of going upscale market. It will present a
positioning map of Burberry achieved after the strategy of an upscale market. Apart from this, it
will suggest two repositioning strategies for Burberry to attain success in the luxury market.
Significance and relevance of positioning and repositioning for the marketers
Significance and relevance of Positioning
 Positioning is significant for the companies for attaining a greater position within the
competitive business market. The UK and global retail industry possess a vast number of
key players which develops a crowded market for Burberry. It becomes difficult for the
customers to choose the best among these retailers (Heinberg et al., 2017). Therefore,
with positioning, the marketers can create customer preference towards their brand and
products by developing a strong position.
 Market differentiation is one of the significant factors that enhance the need for brand
positioning in the market. Positioning may help in creating a difference between one
brand and others and sets apart from the overcrowded competition.
 Positioning makes it easier for the brand to enter into new markets (Huang et al., 2017).
When a brand already positions its image in customers' minds in a specific market, it
becomes convenient for the brand to attain success in new markets as well.
 Marketers need to focus on brand positioning strategy mainly as per the current market
situations. With positioning, marketers can easily communicate with customers regarding
what value the brand provides to customers. Also, pricing strategies adopted by the brand
can justify for customers through brand positioning strategies. Customers may come to
know why the specific brand offers products and services at a lower or higher price than
the competitors (Atwal and Williams, 2017).
Significance and relevance of Repositioning
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 In the case of poor brand performance, brands may use the repositioning strategy for
gaining the brand image with new aspects. It involves identifying the key points where
errors are occurred and finding solutions for regaining brand performance (Gaustad et al.,
2018).
 Repositioning is vital for marketers when there are new competitor firms or new products
developed. It helps in analyzing the competitors’ position with the specific market and
developing marketing strategies accordingly.
 Many times, brand extension proves a failure move by brands which directly affects the
brand image within the market (Zhang et al., 2016). Therefore, marketers use the
repositioning strategy as an anchor for protecting their brand image by generating new
customer perceptions.
Implications for business performance
 In case, Burberry becomes successful in entering the high-end luxury market through
leather goods and handbags; there will be a significant number of implications for
business performance as follows:
 Burberry would require adequate market research for maintaining business performance
within the high-end luxury market (John and Park, 2016). It is necessary to regularly
analyze the changing needs and expectations of customers and strategies for satisfying
these needs and expectations.
 The increased competition puts pressure on brands for enhancing promising benefits to
customers through products or services. It would be necessary for Burberry to avoid
overpromising benefits since it increases customer expectations, and when companies fail
to fulfil these expectations, the brand image gets destructed.
 Burberry developed a new positioning strategy for the high-end luxury market, and it
would shift the company's focus on a new market (Gengler and Mulvey, 2017). There
may be chances that it may lose the sales of existing markets, which makes it mandatory
for Burberry for concentrating on other markets as well.
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Positioning map for Burberry
A positioning map develops for analyzing the existing position of certain brands within the
market. It is done by using customer perceptions towards these brands on determined attributes
such as quality, price, availability or others. Following is the positioning map of Burberry using
Gucci and Primark based on price and fashion:
(Figure: Positioning map of Burberry)
(Source: By Author, 2019)
After entering into the up-scale luxury market, Burberry positioning will look as per the above
positioning map. As compared to Gucci and Primark, there will be higher exclusivity for
Burberry but at average prices since it will not desire to lose young customers. Gucci prices are
also high, but somewhere it lacks a higher level of exclusivity. Moreover, Primark believes in
mass marketing under which customers can avail its products from numerous places (Miralles et
al., 2016). It would help the company in maintaining a sustainable competitive position for its
new initiative. It can be said that Burberry can attain a better position than Gucci and Primark.
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However, too much exclusivity may result in adverse impact for Burberry due to high
competition.
Repositioning methods for Burberry
Burberry has decided to move the upscale market along with retaining young customers. It
requires adopting some methods for repositioning in the high-end luxury market. Burberry
should implement a repositioning strategy without losing existing customers or risking existing
sales. Repositioning may create new challenges for the company, but the marketers should
identify these issues and develop strategies as per the requirements (Putra and Zuhdi, 2018).
Repositioning of Burberry must also consider the prevalent competition in the market. Following
are the methods, Burberry can use for repositioning the brand in the high-end luxury industry:
Celebrity-oriented repositioning
It is a well-known and most used method for repositioning brand or products in the luxury
market. The main aim of this repositioning states to enhance brand awareness as well as
recognition in association with famous personalities. In this method, brands associate with
famous personalities or celebrities having a positive image among people for endorsing products
or services in a new market (Basil and Bassey, 2016). Due to familiar faces, the customers get
inspiration to buy the product or service since they have trust on these celebrities. People follow
these celebrities and desires to adopt their lifestyle. Although this process enhances the
probability of attracting a large number of customers, it is an expensive method.
Repositioning through exclusivity
This repositioning method is vital for developing a strong position in the high-end luxury market.
A brand is identified as a luxury when it integrates exclusivity in the marketing mix. Exclusivity
is the essence of luxury brands which should always be considered by Burberry while entering
the high-end luxury market. Burberry may reposition by limiting product supply that also
enhances the product value in the market. Many times, a limited edition of certain products may
use as a source for appealing to customers (Zenk, 2017). People are desired for possessing such
products and even wait for long to get these products. However, long waiting may lead to a
negative impact on customers as it may reduce the effect of a product when not received on time.
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Conclusion
Positioning and repositioning share almost similar meaning for brands operating in the business
world. For marketers, it is necessary for developing a strong position of brand or product in the
competitive business environment. Burberry decided for moving to an upscale market and for
this, the company should adopt repositioning through celebrity endorsement and exclusivity. The
positioning map of Burberry shows its competitive position through higher exclusivity and
average price levels.
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References
 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.
 Basil, G. and Bassey, E., 2016. Repositioning Nigeria: Application of Marketing
Communication Tools by Political Parties in Campaign Programs. International Journal
of Management Science and Business Administratio, 2(9), pp.20-28.
 Gaustad, T., Samuelsen, B.M., Warlop, L. and Fitzsimons, G.J., 2018. The perils of self‐
brand connections: Consumer response to changes in brand meaning. Psychology &
Marketing, 35(11), pp.818-829.
 Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning: Segmentation
via willingness-to-pay and means-end brand differentiators. Journal of Brand
Management, 24(3), pp.230-249.
 Heinberg, M., Ozkaya, H.E. and Taube, M., 2017. The influence of global and local
iconic brand positioning on advertising persuasion in an emerging market setting. Journal
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 Huang, K.P., Lo, S.C., Tung, J. and Wang, K.Y., 2017. Country-of-origin and Consumer
Ethnocentrism: Effect on Brand Image and Product Evaluation. Journal of Applied
Sciences.
 John, D.R. and Park, J.K., 2016. Mindsets matter: Implications for branding research and
practice. Journal of Consumer Psychology, 26(1), pp.153-160.
 Miralles, A.G., Rinaldi, R. and Bandinelli, R., 2016, April. Engagement as the Core of
Social and Digital Media Strategy in the Fashion Industry. In Workshop on Business
Models and ICT Technologies for the Fashion Supply Chain (pp. 283-292). Springer,
Cham.
 Putra, AG and Zuhdi, S., 2018. The Influence of Repositioning Strategies on Purchase
Intention Through Brand Personality and Brand Association. In THE INTERNATIONAL
CONFERENCE ON ACCOUNTING AND MANAGEMENT SCIENCE (p. 158).
 Zenk, J., 2017. Successfully positioning & extending a young luxury fashion brand: Case:
Kaviar Gauche.
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 Zhang, C., Lin, Y.H. and Newman, D.G., 2016. Investigating the effectiveness of
repositioning strategies: The customers’ perspective. Journal of Travel & Tourism
Marketing, 33(9), pp.1235-1250.
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