Burberry's Marketing Challenges: Positioning and Repositioning Report

This report provides a comprehensive analysis of Burberry's marketing strategies, focusing on the concepts of positioning and repositioning within the luxury fashion market. The report begins by defining the value of these strategies and their impact on a brand's performance, particularly after successful implementation. It examines Burberry's use of digital technology, such as mobile applications, to enhance customer experience and brand positioning. The report includes a positioning map comparing Burberry to competitors like Primark and Gucci, illustrating its market position relative to price and perceived quality. Furthermore, it outlines two specific methods Burberry could employ to reposition itself within the luxury sector, such as focusing on quality improvements and promotional schemes. The report concludes by emphasizing the importance of marketing activities for a company's success, highlighting the significance of positioning and repositioning in enhancing market position and driving revenue growth. It references several academic sources to support its analysis.

ASSIGNMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Value of positioning & repositioning together with impacts over performance post its
success....................................................................................................................................3
2. Positioning map of Burberry with Primark & Gucci..........................................................4
3. Two methods Burberry could take into use to reposition...................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing can be referred to as a strategic course of action aimed at the development of
strong relation with customers all across the globe in order to influence their purchase behaviour
and making them buy goods sold by entity in market place (Massara, Porcheddu and Melara,
2019). The marketing issues that are found to emerge within the confines of corporate
functioning are essential to be resolved by making use of several strategic tactics and marketing
activities. In this regard, the most evident form of concern is found to be recognition of target
audience as well as markets. The present paper is conducted upon a luxurious fashion company
named Burberry and consists of ways to deal with marketing challenges.
1. Value of positioning & repositioning together with impacts over performance post its success
Positioning can be termed as the image of brand that is created in the minds of
consumers when they think about the offerings of respective organisation. This can be seen as
the way through which it can be ascertained, that how are the commodities offered by respective
company distinguished from those rendered by rival companies (Filieri, 2019). Across the globe,
it is considered as one among the most essential and significant elements of marketing. In
accordance with them, Burberry is a leading fashion brand which utilises digital technology to
position its offerings amidst people in the desired manner. This organisation has recently come
up with a mobile app which has the potential as well as capability to inflate the extent of good
experiences driven by people. With this, the respective organisation intends to retain the
customers for long time. The application which is launched is based upon AR and allows people
to directly export pictures they upload to social media within Burberry and easily do its sharing
across the national territory.
Importance: Through the execution of this aspect of marketing, the large fashion house
wants to reach to a larger base of population. The other points that stress upon its value are
described as follows:-
 This aids the corporation artist along with staff to denote their attention to market and
become market-centric. After this, planning of strategic action can be done to fulfil the
demands place by clients.
 Through précised positioning of offerings, the organisation can feasibly meet the needs of
consumers and satisfy them fully.

Repositioning is a process whereby a corporation executes modifications in positioning
of offerings of entity (Filieri, 2019). Usually, corporations carry this out when adverse brand
positioning or selection of poor distribution channels have already dampened the sales and
profits of entity in past times. Burberry intends to reposition within luxury sector. This is being
carried out by putting emphasis upon pricing strategies devised after taking into account rivals
and trends prevailing in global market. Also, they are introducing new range of luxury leather
items to gain attention of customers.
Importance: Through execution of this within Burberry, the products of company can be
placed in luxury sector and new leather range can be launched. Young individuals can be easily
attracted by entity with this strategy. The importance of this aspect of marketing is outlined
below:-
 This gives benefit to entity to create a strong name and position in market place across
the global territory (FERNIE and PERRY, 2018). This gives the respective entity a chance to enhance its present figures of revenue and
sales through selection of right target audience for the newly launched leather segment.
Influence over business performance post its success
For an instance: when business move of entity becomes successful, the respective entity
will have the opportunity to cater to a larger base of population in order to inflate its loyal
customer base. Through positioning of entity’s offerings by way of mobile app, consumers
would now be capable of setting relation with the artist of corporation and make enquiries for
any kind of advices needed. Repositioning of commodities is being executed through the launch
of leather items in luxury section and appealing to a huge base of people.
2. Positioning map of Burberry with Primark & Gucci
Positioning map is a diagrammatic presentation of customer’s perception about offerings
of respective entity (Derval, 2018). It is associated with pricing, quality and benefits of products
of company against rival firms. Burberry positions its offerings within market with digital
technology. The positioning map devised by Burberry inclusive of Primark and Gucci is
underneath:-

3. Two methods Burberry could take into use to reposition
Burberry aims at repositioning its offerings in luxury market by setting pricing of
offerings as per the market trends (BORSBOOM, CASE, and LAWSON, 2018). It is utilising
several methods to execute the same. The entity is making use of celebrities as well as coming up
with leather commodities. Another ways through which respective corporation can attain
repositioning, are:-
 The corporation can inflate quality to enhance worth of products. The main intention
hereby is to make customers see the value of offerings.
 This entity can launch fortnightly or daily scheme or discounts to appeal to large base of
customers and enhance its sales.
CONCLUSION
As per the data furnished above, it has been ascertained that marketing is an essential
activity for a company which shapes the foundation of success. In relation to this, it is recognised
that two of the most emerging and significant ways of carrying out marketing is through
positioning and repositioning. Furthermore, it has been acknowledged that with the help of both
of these strategies, the market positioning of company can be enhanced together with its
revenues and profits.
Illustration 1: Positioning map of Gucci and Primark

REFERENCES
Books and journals
Massara, F., Porcheddu, D. and Melara, R.D., 2019. Luxury brands pursuing lifestyle
positioning: effects on willingness to pay. Journal of Brand Management, 26(3),
pp.291-303.
BORSBOOM, L., CASE, B. and LAWSON, N., 2018. BURBERRY JOUSTING FOR
REDEMPTION. LBMG Corporate Brand Management and Reputation-Masters Case
Series.
Derval, D., 2018. Finding the Right Positioning. In Designing Luxury Brands (pp. 51-76).
Springer, Cham.
FERNIE, J. and PERRY, P., 2018. Luxury supply management chain. Logistics and Retail
Management: Emerging Issues and New Challenges in the Retail Supply Chain, p.149.
Massara, F., Scarpi, D. and Porcheddu, D., 2019. Can Your Advertisement Go Abstract Without
Affecting Willingness to Pay?: Product-Centered versus Lifestyle Content In Luxury
Brand Print Advertisements. Journal of Advertising Research, pp.JAR-2019.
Filieri, R., 2019. Implications of pricing decisions in the luxury sector: The mulberry case.
SAGE Publications: SAGE Business Cases Originals.