Strategic Analysis: Burberry Brand Positioning and Repositioning

This report provides a strategic analysis of Burberry's brand positioning and potential repositioning within the fashion accessories market. It begins with an introduction to marketing, emphasizing the significance of brand positioning and repositioning for business performance. The report delves into the relevance of these strategies for marketers, detailing how they influence consumer perceptions and market differentiation. A perceptual map is developed to compare Burberry with competitors like Gucci and Primark, offering insights into the brand's current market standing. The report then outlines two key methods Burberry could employ for repositioning: competitive and psychological repositioning. It explores how these strategies can help the brand adapt to changing consumer trends, gain a competitive advantage, and improve overall business performance. The conclusion reinforces the importance of effective positioning and repositioning for achieving market success.

Mintel Fashion Accessories report -
UK - January 2018

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Relevance and significance of positioning and repositioning for marketers and the
implications for performance of the business.........................................................................1
2. The way positioning of the brand will change as result of this process.............................2
3. Methods that brands such as Burberry might use to accomplish repositioning.................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing is defined as the process that employ by company to promote its products and services
in market and attract large number of customers towards the brand (Abtin and Pouramiri, 2016).
This report includes importance and relevance of positioning and repositioning of brand for
business. Moreover, a perceptual map is developed and two methods that company might use to
reposition itself are discussed in report.
MAIN BODY
1. Relevance and significance of positioning and repositioning for marketers and the implications
for performance of the business
Positioning is defined as the strategy that emphasize on making a strong position of brand
in minds of customers, which distinct it from its competitors. It is the way to influence
perceptions of consumers regarding the brand by positioned itself strongly in market. It is about
developing such an image of brand that people will consider whenever they purchase a particular
product or brand. Positioning a brand appropriately is important for marketers as it helps them in
determining the best way to communicate attributes of brand to customers on the basis of their
needs, available communication channels, competitive pressures and carefully created key
messages (Armstrong, Adam, Denize and Kotler, 2014). There are some reasons due to which
positioning is important for marketers. These includes:
Way of communication: By positioning the brand appropriately, Burberry can directly
communicate or interact with consumers and enable to understand their needs and preferences.
Market differentiation: By positioning itself distinctly to the competitors, Mulberry can
develop unique brand image by fulfilling all the needs of consumers.
Strong recognition in market: Appropriate positioning of a brand helps in getting
recognition in market and assist customer with easy shopping. The existing brands of Mulberry
must be positioned appropriately so that it can differentiate itself from competitors.
Repositioning is defined as changing the existing position or status of brand. It involves the
efforts made by marketers to move a brand or product to distinct place in the mind of target
audience (Kupec, 2015). It is important to make the brand more competitive in market. It is
significant and relevant to the marketers due to following reasons:
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Competition: When a new entrant enters into market, it brings which increases existing
competition. By repositioning itself in market appropriately, Burberry can gain competitive
advantage.
Consumer trends: In fashion industry, the needs and preferences of consumers are
changing very frequently. It is required by Burberry to understand needs of its consumer and
repositioned the brand appropriately to make them satisfied.
There are various implications of positioning and repositioning brand for the performance of
business (Leathers and Eaves, 2015). If such a move of firm is successful, the implications on the
performance of business are mentioned below:
 Strong brand positioning and repositioning of brands will provide competitive edge to
company over its rivals.
 Firm enable to generate high sales and profitability.
 The perception of consumers impacted positively regarding the brand or products which
are sold by company.
 One of the implication is improved brand image as well as goodwill of company. This
can be accomplishing by creating such a brand image in mind of consumers that
differentiate it from others.
2. The way positioning of the brand will change as result of this process
Positioning map is a visual tool that is utilised by marketers to compare their product with
the competitors. It helps in evaluating the market standing of a brand or product in terms of
brand image, demands, price and quality. At the time when the business entity is formulating
marketing strategies that will be executed to attract more number of customers, the perceptual
map plays vital role in assessing the position of market. Burberry offered luxurious products to
customers and is planning to further expand its business by introducing a segment of handbags.
Some added features and innovative design is included (Pavenkov and Rubtcova, 2019).
Moreover, price architecture will be transform as well as the strategies or approaches utilized by
the competitors of company including Mulberry, Cliché, Gucci, Primary, etc. will be evaluated
to gain positive outcomes.
Positioning map:
2

The positioning map of Burberry, Gucci and Primark is mentioned below. It depicts the position
of each brand in market. This comparison assists in understanding what the organisation is
required to do to gain long term sustainability in market and increase its sales and profitability in
luxury brands segment. Gucci is one of the well-known Italian brand that offers luxurious on
brands along with leather products (Swanson, 2019). This is a leading firm which has revenue of
around 4.2 billion pounds. Primark is also a fast fashion retailer which operates its business in
Dublin. The positioning map of Burberry and the position of Gucci and Primark in it are
mentioned below:
3. Methods that brands such as Burberry might use to accomplish repositioning
The firm is struggling in generating adequate sales and profits so the methods which might
be adopt by Burberry to achieve repositioning in market are mentioned below:
 Competitive depositing: This aspect is associated with changing the beliefs and
perceptions of customers regarding the products that is being offered by rivals. Burberry
can employ this strategy in order to make the customers dislike rival’s products by
developing such products that suits the needs of consumers (Leathers and Eaves, 2015).
 Psychological repositioning: This strategy is related to changing perceptions, opinions
and beliefs of customers regarding the brand. Those organisations which have been
questioned about product quality offered by it are utilize this strategy. The brand can be
repositioned by Burberry by utilizing this method and gain competitive advantage in
market by enhancing the quality of products that are being sold by it.
3

CONCLUSION
As per the above mentioned report, it has been concluded that it is very essential for
organisation to position itself appropriately in market in order to gain competitive advantage
over rivals. Apart from this, repositioning of brand effectively helps in changing the perceptions
of customers towards the brand.
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REFERENCES
Books and Journals
Abtin, A. and Pouramiri, M., 2016. The impact of relationship marketing on customer loyalty
enhancement (Case study: Kerman Iran insurance company). Marketing and Branding
Research, 3, pp.41-49.
Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson
Australia.
Kupec, V., 2015. Marketing Research of Digital Life of Bank Clients. Marketing Identity, 3(1/2),
pp.116-125.
Leathers, D.G. and Eaves, M., 2015. Successful nonverbal communication: Principles and
applications. Routledge.
Pavenkov, O. and Rubtcova, M., 2019, February. Theoretical and Methodological Basics of
Integrated Marketing Communication’s Investigation. In International Conference on
Sustainable Development ICSD.
Swanson, S.R., 2019. The defining dozen: undergraduate students preconceived views of
marketing. Marketing Education Review, 29(1), pp.3-16.
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