MINTEL Fashion Accessorize Report: Burberry, Gucci, Primark Analysis

This report analyzes the relevance and importance of positioning and repositioning for marketers, examining the implications of successful brand strategies on business performance. It uses the case of Burberry to illustrate how brand positioning will change and presents a positioning map identifying the locations of Gucci and Primark. The report further provides two methods, customer engagement and identity, that brands like Burberry can use to achieve repositioning in the fashion accessories market. It also discusses the impact of competition and changing market conditions on Burberry's brand image and strategies, drawing on relevant academic sources and MINTEL data to support its analysis and recommendations.

MINTEL Fashion Accessorize
report - UK - January 2018

Table of Contents
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?.............1
2) In the case of Burberry, how the positioning of the brand will change as result of this
process. In presenting map, also identify where on the map the following brands would be
located: Gucci and Primark.........................................................................................................1
3) Provide two methods which brands such as Burberry might use to achieve repositioning....2
REFERENCES................................................................................................................................3

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?
It is very important for company to position their products in such a way that it attract
people mind automatically (Importance of product positioning. 2016). Also, it enables in
creating a strong brand image in the market. Besides this, it benefit in distinguishing product
from competitors (Lei and Moon, 2015). Product positioning involves identifying points of
parity and points of differentiation that enable a company’s product to both meet market
standards while offering consumers additional value on key dimensions such as quality,
innovation, price, etc. In addition to this, positioning helps in conveying message that why
company product should be preferred over others of similar nature. Furthermore, it is useful in
communicating differentiated offering to identify niche market segments. Positioning enables in
successful implementation of marketing strategies. Similarly, repositioning reflects in
maintaining brand status in the market. It helps in conveying change in product features and
monitoring overall market conditions. Alongside it, delivering of specific message instantly hit
minds of people. With this, there occurs a shift in their needs. So, people start buying company
products again. It also enables in retaining lost brand equity.
It can be analyzed that if positioning is successful customer automatically gets attracted
towards products. It helps in reflecting a stronger brand image in the market which is identified
easily by customers. Also, effective brand positioning helps in ease in distinguishing products
from competitors (Neirotti, Raguseo and Paolucci, 2016). This results in rise in sales and profits.
Moreover, with change in marketing strategy company is able to determine customer’s needs and
produce products accordingly. However, it is easy for company to promote their products in
effective way. They do not have to make frequent changes in strategies or marketing channels. It
improves their market value and brand image. This results in enhancing business performance. A
rise in revenue helps in gaining competitive advantage in the market. The company builds a large
loyal customer base.
2) In the case of Burberry, how the positioning of the brand will change as result of this process.
In presenting map, also identify where on the map the following brands would be located: Gucci
and Primark
In positioning map there are basically four factors on basis of which companies are
categorised. They are high quality and price and low quality and price. Now, in present case it
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can be analysed that positioning of Burberry will change to a great extent (Iyer and et.al., 2018).
It will categorise company in between high price and quality. Moreover, this will create a strong
image in minds of people in term of luxury brand. It will completely shift company position in
market. Furthermore, people will get an insight about how Burberry goods differ from
competitors and what valuable features are included in it which fulfils their needs. Besides this,
positioning will lead to rise in competition. A distinct and unique image will be developed in
minds of people which will make it easy to recognise Burberry. Also, shifting towards high
quality and price will convey a message that company still prefers to target high class people. In
addition to it, positioning will benefit in retaining customers and attracting new one. Through it,
they will can generate value of product and change state of mind of people. Alongside it, shift in
positioning will differentiate features of products from competitors.
Now, companies like Gucci and Primark are rivals of Burberry. So, on positioning map
they will be positioned in column of high price and high quality. This is because they also
provide luxury products to people at high price (Gupta, Rodrigues and Mathew, 2018).
3) Provide two methods which brands such as Burberry might use to achieve repositioning
From case study, it has been analysed that Burberry brand image is getting degraded in
recent times due to new competitors and Sterling weakness. Thus, it has impacted on Burberry
positioning in the market. So, repositioning products will help company to change their brand
status. For this there are different methods which can be used. They are as follows :-
Customer engagement – This is an effective method through which brand repositioning can be
done. Here, Burberry can engage and involve with more and more customers so that their needs
can be identified. Also, it will help them to figure it out how customer feels will connected with
brand. With help of this, company can analyse data and reposition themselves in the market.
Perspiration based inspiration- In this Burberry can share journey of their product with
customers. This will enable in sharing success and failure of company. This will influence people
to engage with brand. It can be done by writing effective content on blogs, social; sites, etc. so, it
will be easy for customers to establish their own identity by involving with companies. Hence,
value of products can be created in market (Ruckman, Saraf and Sambamurthy, 2015). So, in
this way Burberry can reposition and retain their position.
Identity – It is another way through which Burberry can reposition them in the market. Here,
they can integrate all marketing components together such as slogan, logo, etc. which can be
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easily identified. By this, specific message can be delivered to customers. Thus, by developing
unique identity in luxury market company can reposition them.
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REFERENCES
Books and Journals
Gupta, V., Rodrigues, L.L. and Mathew, A.O., 2018. Identifying opportunities for wearable
technology for product development and market positioning. International Journal of
Product Development, 22(4), pp.247-275.
Iyer, P. and et.al., 2018. Market orientation, positioning strategy and brand
performance. Industrial Marketing Management.
Lei, N. and Moon, S.K., 2015. A Decision Support System for market-driven product positioning
and design. Decision Support Systems, 69, pp.82-91.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market
positioning. International Journal of Information Management, 36(6), pp.1133-1143.
Ruckman, K., Saraf, N. and Sambamurthy, V., 2015. Market positioning by IT service vendors
through imitation. Information Systems Research, 26(1), pp.100-126.
Online
Importance of product positioning. 2016. [Online] Available through : <
https://www.smstudy.com/article/the-importance-of-product-positioning-to-the-
marketing-strategic-planning >
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