Strategies for Positioning and Repositioning of the Burberry Brand

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This report analyzes Burberry's marketing strategies, focusing on the relevance and importance of positioning and repositioning in the luxury fashion market. It explores how Burberry, aiming to go more up-market, can leverage these strategies to attract high-end customers. The report examines the implications of successful repositioning on business performance, particularly in terms of sales growth and brand identity. A positioning map is included to visually represent the brand's shift, comparing it with competitors like Gucci and Primark. The report also discusses two key methods Burberry might use to achieve repositioning: leveraging digital platforms and adapting product attributes to meet customer needs. The analysis draws on case studies and academic research to provide a comprehensive understanding of the challenges and opportunities in Burberry's strategic marketing approach.
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Running head: PROBLEMS RELATED WITH MARKETING
PROBLEMS RELATED WITH MARKETING
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1. The article tells us that Burberry intends to go more up-market. 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?
Advancement in the area of technology has increased both the competition and satisfaction
level of the customers. The main aim of the management of the business houses like Burberry is
to identify the best possible way to communicate with their target customers regarding the
attributes of the products that they are selling in the respective market place. This placing of the
product is called positioning, and helps to satisfy the needs and requirements of the customers
along with initiating the power to face the challenges from the rival business houses who are
present in that respective market places. Effective positioning of the products helps in assuring of
matching the messages related to marketing with the customers whom the companies has
targeted to sale their products. From the case study provided, it can be stated that the
management has successfully positioned their different segments of product in the market place
of the United Kingdom (Zozulya et al 2015). Accessories is the main segment from where they
earn most of their revenue, which includes handbags, small leather goods, bags and other
products. It can be stated in this context that the bags category are targeted by the management of
Burberry as the most potential segment which needs to be repositioned. Positioning is very
relevant in modern market scenario, as there are many competitors present in the global market
place who are selling similar kind of products. It helps to identify the offerings that are followed
by a particular company from their rivals, so that it will help the customers to identify their
product from others efficiently (Zahid and Raja 2014).
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2PROBLEMS RELATED WITH MARKETING
As the newly appointed Chief Executive Officer of Burberry is planning to reposition the
luxury segment of this globally reputed retail giant, which will help to attract fresh high-end
prospects from the British market place along with other places where they offer their wide array
of products and make them their customers (SIJUWOLA 2014). Repositioning will help this
company to make their competitiveness better and serve the people according to successful
identification of the market alterations as well as the changes in the requirements of the people.
If this move become successful, then the overall growth of the sales in the luxury sector of
Burberry will automatically increase, which is the main focus point of all the organizations who
are performing in this global business environment. This will also help to introduce any new
product from this segment easily and offer them to the customers of Burberry, and a separate
brand identity for that new product can be maintained, like that of the Monsoon Accessorize
mentioned in the case study. People will be easily attracted towards this product and the
management will be able to earn more money for reposition their luxury segment in the market
places where they perform (Nguyen and Bug 2016).
In the case of Burberry, demonstrate by means of a positioning map, 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.
Below is the positioning map where 3 reputed fashion retail brand has been positioned in
the global market place.
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3PROBLEMS RELATED WITH MARKETING
Fig 1: Positioning Map of Burberry
Source: Created by the Author
From the case study provided, it can be said that repositioning of Burberry in the luxury
segment will help them to attract fresh customers from all the market places where they will
offer their products, though there are challengers that the management are already facing, mainly
in the market of the United States (Chen and Wang 2015). The repositioning strategy that is
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identified by the newly appointed Chief Executive Officer will help to serve both their existing
as well as new customers, which will help Burberry to gain the competitive advantage over the
major rival business entities like Gucci, Primark, Mulberry, LVMH, Givenchy and others. Apart
from all these, launching of new Monsoon Accessorize will help to add fresh market channels for
this organization, and will be able to satisfy the ever-changing tastes and preferences of the
customers. It has been already discussed that accessories section of Burberry represented almost
37% of the overall revenue that has been earned in the first half of the year 2017. But, as there
are other reputed market players in the market, the repositioning strategy will help to fresh
position the brands that are sold in the accessories section of Burberry. This will help to re-
launch the old products along with inclusion of any fresh segment, may be in the form of
Monsoon Accessorize, into the market place. The positioning of the accessories segment of
Burberry will be look like a freshly launched division by a new company, and the people will be
able to connect the brand if they are their existing customers. New customers will also be able to
view the wide range of accessories that are sold by Burberry and become their customers, thus
helping to earn more revenue along with forming a healthy customer base for this retail fashion
giant (James 2014).
Provide two methods which brands such as Burberry might use to achieve repositioning.
Two methods through which the reputed brands like Burberry can achieve repositioning
is discussed as follows:
1. The first and foremost method that can be used by the management of Burberry is
using the digital or online platforms. As people are moving towards online shopping
in these days, repositioning of the products sold by Burberry in global market place.
People will be able to select the wide array of products that are sold by this fashion
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5PROBLEMS RELATED WITH MARKETING
giant and can get the selected products at their respective places. Advancement in
technology has changed the buying behaviour as well as the buying pattern of the
customers, and as a result, online shopping has become more popular when it comes
in the purchase of various accessories that are sold different business entities. So,
online shopping position can be a way to reposition the accessories segment of
Burberry (Chowdhury 2013).
2. Real positioning can also be used by the management of Burberry as a repositioning
method, where the attributes of the product can be changed to match the requirements
of the customers. This will also help to overcome the competitiveness that is
possessed by the rival business houses along with increasing the customer base by
attracting new customers towards them (Chungyalpa and Bora 2015). This
repositioning method will help Burberry to gain the competitive advantage in case of
launching of new product segment, like that of Monsoon Accessorize as thought by
the management of Burberry.
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6PROBLEMS RELATED WITH MARKETING
References
Chen, R. and Wang, M.H., 2015. Brand positioning map: a strategy tool for trademark
design. Journal of Management and Strategy, 6(1), pp.36-44.
Chowdhury, P.P., 2013. Key strategies and issues of positioning: A review of past
studies. American academic & scholarly research journal, 5(1), p.55.
Chungyalpa, W. and Bora, B., 2015. Towards Conceptualizing Business Strategies. International
Journal of Multidisciplinary Approach & Studies, 2(1).
James, M., 2014. Positioning theory and strategic communication: A new approach to public
relations research and practice. Routledge.
Nguyen, K.L. and Bug, P., 2016. Burberry: a model for successful technology integration.
SIJUWOLA, F.O., 2014. A Comprehensive Analysis of Burberry’s Rebranding Strategies; 1856-
2014 (Doctoral dissertation, University of Bristol).
Zahid, S. and Raja, N.S., 2014. Effect of rebranding and repositioning on brand equity
considering brand loyalty as a mediating variable. IOSR Journal of Business and
Management, 16(1), pp.58-63.
Zozulya, D., Radomski, D., Boey, E., Lozanoski, H., Nathani, A. and Sheppard, J., 2015.
Burberry Group PLC.
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Appendix
Fig 1: Positioning Map of Burberry
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