Burberry: Market Positioning and Repositioning Strategies Report

This report provides a comprehensive analysis of Burberry's positioning and repositioning strategies. It begins by highlighting the importance of these strategies for business success, focusing on how they help gain a competitive advantage and adapt to market changes. The report includes a positioning map to visually represent Burberry's market position relative to competitors like Gucci and Primark, analyzing factors such as price and fashionability. It then delves into specific repositioning methods, including lifestyle repositioning, which focuses on aligning the brand with consumer trends, and price positioning, which involves strategies like price skimming. The report concludes by emphasizing the significance of these strategies for enhancing market share and profitability, supported by references to relevant literature and journals.

Burberry positioning and
repositioning

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Importance of positioning and repositioning and its implication on business.........................1
2. Positioning map ......................................................................................................................2
3. Methods of repositioning.........................................................................................................3
CONCLUSION ..............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Repositioning refers to changing position of brand when a brand name is being changed
by the company (Derval, 2018). Report will include importance of positioning and repositioning
for marketers. It will also include positioning map that will help in positioning brand and
presenting it in map. Furthermore, it will include methods of repositioning.
TASK
1. Importance of positioning and repositioning and its implication on business
Positioning is the process of defining position of product in the market by applying
different market strategies that will help in attracting more customers towards it. On the other
hand, repositioning refers to change in the position of brand as new product is being introduced
into the marketplace.
Product repositioning is important for Burberry to gain competitive advantage in the
market that will help in achieving goals of the company. This will also help in improving brand
name as if product is sustaining in the market for longer duration then it will benefit for the
company increase its market share (Zenk, 2017). By improving sales Burberry will reposition its
product easily as it gaining different market perspective. Through repositioning company knows
needs and wants of customer that will help in increasing productivity of company. For
repositioning product Burberry has to invest in promotional activities that will attracting more
consumers towards company. There are different marketing channels that will be bringing many
changes into company's operation.
In addition to it is also important for meeting expectation of buyers that will help in
developing competitive advantage as if consumers are satisfied then it will help in increasing
profit. For the purpose of introducing new product so that consumers are getting aware of
presence of product in the market (Lomer, Papatsiba and Naidoo, 2018). It is creating an image
of the company in minds of consumers and it will help in differentiated product that increases
more profit in the marketplace. Effective positioning will help in conveying message to
customers that will bring competitive advantage in the marketplace.
There are some implications that will lead to bring changes in the performance of
Burberry as through this positioning strategy company will be able to increase profits and
productivity (Massara, Porcheddu and Melara, 2019). Packaging of a product will also bring
efficiency in business as most of the consumers are influenced through packaging and designing
1

of a product so it will also enhance business for earning future profits. There are different
marketing tactics that will be able to cope up with current condition that will be occurring in the
marketplace. It is important for business to identified different strategies that will be providing
easy communication with consumers. This helps in bringing consistency in work that will be
helpful for the future course of action. It helps in understanding strength and weakness of the
company from the view of consumers by taking feedback from it.
2. Positioning map
It refers to technique that will be used in determining position of product in the
marketplace. This map is consisting of four quadrants that will help in analysing the position of
product that will be helpful for creating market segment. This also enhance in finding out
strength and weakness as compared from other brands in the market. Through this it will be
analysing competitive advantage (Steenkamp, 2017). In addition to it is important to know about
market condition as where product is being sold to customers for the purpose of increasing
customer satisfaction. Graph represents two motives one is fashionable and other one is
expensive. As Burberry is brand that after declining in the market focuses on high end consumers
for selling its product in the market.
According to this graph it can be interpreted that Gucci is the most expensive brand along
with fashionable that sells its product into the marketplace. Burberry is targeting high end
consumers nowadays that will be providing different approaches for the future. Primark is also
less expensive brand that is below Gucci and Burberry (Hougaard, 2016). They all are using
different strategies that will help in positioning product into the market for future purpose. This
will help in getting competitive advantage for the future. There are different ways that will help
in getting involved into different segments that benefit company as providing different concepts
that will be providing various concepts for analysing this map.
Market strategy that will be adopted by different companies are Gucci is adopting
product development strategy to expand its market in the future. Burberry is following market
development approach for earning more profit (Rovai, 2018). Lastly, Primark is adopting price
penetration strategy that will be providing different perspective for selling its product in the
market.
2

3. Methods of repositioning
There are two methods that will be used by Burberry in repositioning its product into the
market are as follows:-
Lifestyle repositioning:- This technique is being used by Burberry for increasing trends and
fashion into market that will provide quality product to its customers. This technique helps in
satisfying needs and wants of consumers by reposition its product into various segments that will
be beneficial for the future. This will help in providing idea regarding trends and fashion that
will be running into market (Atwal and Bryson, 2017). This approach will be more helpful in
selling product that will bringing different aspect as lifestyle is more important for consumers
they purchase product by seeing price as it is also essential for them to get idea regarding price of
product. This technique will help Burberry in expanding its market fort the future. Lifestyle plays
an important role while selling product to consumers as they are providing different perspective
for the company.
Price Positioning:- This refers to selling product by setting up a price for customers in the
market that help in providing different aspect so that it will be beneficial for the company. This
includes two strategies mainly price skimming, price penetration that will help Burberry selling
its product in the marketplace. Burberry is using price skimming strategy for selling its product
for the future (Arrigo, 2015). Through this technique there are different functions that will help
in providing price positioning that will be able to expand its market in the future. Through this
technique price will be decided and then product will be introduced so that it will go through
minds of customers.
CONCLUSION
As per above study it will be considered that repositioning is an important part of
increasing market share for the future purpose. Repositioning is important for every business to
expand it its market share as well as profitability. Positioning map is required to measure
position of product in the marketplace. Lifestyle and price repositioning is important that will
lead to bring different perspective in the company.
3

REFERENCES
Books and Journals
Arrigo, E., 2015. The role of the flagship store location in luxury branding. An international
exploratory study. International Journal of Retail & Distribution Management.43(6).
pp.518-537.
Atwal, G. and Bryson, D., 2017. Luxury Dilemmas. In Luxury Brands in China and India (pp.
13-42). Palgrave Macmillan, London.
Derval, D., 2018. Finding the Right Positioning. In Designing Luxury Brands (pp. 51-76).
Springer, Cham.
Hougaard, P., 2016. The Luxury Metamorphosis: Shift to Digitalization and Its Impact on
Sustainability Strategy(Doctoral dissertation).
Lomer, S., Papatsiba, V. and Naidoo, R., 2018. Constructing a national higher education brand
for the UK: Positional competition and promised capitals. Studies in Higher
Education.43(1). pp.134-153.
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.
Rovai, S., 2018. Luxury Branding and Digitalisation: The Case of European Brands in China.
In Contemporary Case Studies on Fashion Production, Marketing and Operations (pp.
89-104). Springer, Singapore.
Steenkamp, J.B., 2017. Customer Propositions for Global Brands. In Global Brand Strategy (pp.
45-73). Palgrave Macmillan, London.
Zenk, J., 2017. Successfully positioning & extending a young luxury fashion brand: Case: Kaviar
Gauche.
Online
4

[Online]. Available through : <>.
[Online]. Available through : <>.
5