Marketing Strategies: Burberry's Positioning and Repositioning

This report provides a comprehensive analysis of Burberry's marketing strategies, focusing on its intended move up-market. It explains the significance of product positioning and repositioning for marketers, highlighting its impact on business performance. The report demonstrates how Burberry's brand positioning will change using a positioning map, comparing its position with Gucci and Primark. Furthermore, it identifies two key methods, product development and market penetration, that Burberry could use to achieve successful repositioning, detailing the advantages of each. The analysis includes references to support the findings, offering a thorough understanding of Burberry's strategic marketing initiatives.

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Q1. 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?
The positioning of a product is a procedure which contains the marketing of a specific
product and services in a specific way to create an image of the brand in the customer’s mind
(Imene et al. 2019). By using this method, a business organisation can communicate its value.
The value which is offered by the company can be modified through this process. It will help the
company to satisfy customer needs. Brand positioning helps a business organisation to clarify its
specific value. The repositioning of a brand or product is a procedure which changes its place in
the consumer’s mind. Product repositioning or brand repositioning refers to the major change in
positioning for a specific product or a brand (Utarsih 2017). An effective product or brand
repositioning can help a company to change the understanding of the target market segment
about the brand or the product. To manage the underperformance of a product or a brand, a
business organisation uses this procedure. To fulfil the needs, and demands of the customer, the
management team of a business organisation conduct this procedure.
If the management team of a company can conduct a successful product positioning, then
that company get certain advantages which will be analysed here. I will help the company to
become market-oriented. To cope with market changes, a company can use this process. To fulfil
the expectation of the targeted customers. This process helps a company to promote consumer
goodwill. To create a loyal customer this process can be used. To gain the interest of the
customer this process can be used (Wang et al. 2016). A business organisation can use this

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method to manage competition in the market. To develop the promotional strategy of a company
this process can be useful. If a business organisation can conduct a successful product
repositioning then that organisation can get certain advantages which will be identified in this
part. A successful product repositioning can boost the perceived position of the brand to
competition. This process can help the company to maximise its sales. To attract potential
customer, a business organisation can use this method. While pursuing a new audience, a
business organisation can use this process. To change the attitude of the business organisation
towards the market, the management team of a business organisation can use this method (Coate
& Ulrick 2016). This process is helpful for a business organisation to control internal change. To
adjust competitive forces, a business organisation can use this procedure.
Q2. In the case of Burberry, demonstrate by means of a positioning map, how
the positioning of the brand will change as a result of this process. In
presenting map, also identify where on the map the following brands would be
located: Gucci and Primark

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From the above-given positioning map, it is very clear that Gucci takes into consideration
not only high price but also high quality for their products. But when seen in comparison to
Burberry, Gucci costs much higher while Burberry seems to be more affordable. On the other
hand, the third company that is Primark makes its products both with low quality and low price.
Marco Gobetti has recently joined the office as the new CEO of Burberry company and
has come up with a fresh strategy. According to this strategy, the products produced by this
company will have a chance to join the luxury sector. In order to do so, the company has decided
to extend the price and prioritise the lower level retailers and wholesalers. The CEO of the
company has also decided to make changes in the price structure of the products. So that the
market shares can be maximized, the company is using procedures such as positioning and
repositioning. With the help of the freshly manufactured luxury products, the officials of this
organization will try to target a new bunch of customers. Again, the company also desires to
draw young buyers towards them as it is these young buyers who play a crucial role in the luxury
market. Also, as per the research done by the marketing department of the company, the results
show that young buyers seem to be a promising lot that can definitely benefit the company.
Customer research for Designer Fashion-UK in the year 2017 found that it is the age group
between 16-24 years, who act as the active buyers of the costly luxury products. It is this bunch
of buyers that the Blueberry Company wants to target.
Q3. Provide two methods which brands such as Burberry might use to achieve
repositioning.
In order to achieve success through repositioning Burberry can implement two methods,
first product development and second market penetration.

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Product Development:
This is another method by following which the company can benefit through product
repositioning. Through this activity, a business organisation can make new products as well as
amend current products (Chaudhuri & Boer 2016). Product development is essential for the
company to know the current demands of their customers. Since the new CEO is much
concerned to focus on the young buyers and high-end consumers in the market, so it is essential
for the company to prioritize this procedure.
Market penetration:
This strategy is used when there is a need to enhance the market share of a product,
something that Burberry wants to do (Sidi Bello et al. 2018). The officials of the company can
use this method to find the size of the target market. They can also make efforts and find facts
about the current marketplace.
The company is also making efforts to expand itself digitally. When the company will be
available online customers will be able to place orders through that platform. The company has
also brought in augmented reality application to help customers.
Hence it can be concluded that the Blueberry Company can benefit from market
penetration and product development through product positioning and repositioning. These
methods will allow the company to draw new customers towards them. Also, since the company
is bringing in an online platform, they can not only accept online orders but also provide
customers with proper satisfaction.

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References:
Chaudhuri, A. & Boer, H. 2016, "The impact of product-process complexity and new product
development order winners on new product development performance: The mediating role of
collaborative competence: JET-M JET-M", Journal of Engineering and Technology
Management, vol. 42, pp. 65.
Coate, M.B. & Ulrick, S.W. 2016, "Unilateral Effects Analysis in Differentiated Product
Markets: Guidelines, Policy, and Change", Review of Industrial Organization, vol. 48, no. 1, pp.
45-68.
Imene, B., Ackermann Claire-Lise, Mathieu Jean-Pierre & Cuny, C. 2019, "Consumers’
responses to product design: Using a Semantic Priming Task to assess automatic understanding
of product positioning: The Journal of the Market Research Society", International Journal of
Market Research, vol. 61, no. 2, pp. 140-156.
Sidi Bello Alkasim, Haim Hilman, Abdul Manaf bin Bohari, Shahmir Sivaraj Abdullah,
Mohd,Rashdan Sallehddin 2018, "The mediating effect of cost leadership on the relationship
between market penetration, market development, and firm performance", Journal of Business
and Retail Management Research, vol. 12, no. 3.
Utarsih, H. 2017, "The Effects of Product Development and Quality on Brand
Repositioning", Journal of Economic & Management Perspectives, vol. 11, no. 4, pp. 369-374.

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Wang, X., Xie, Y., Jagpal, H.S. & Yeniyurt, S. 2016, "Coordinating R&D, Product Positioning,
and Pricing Strategy: A Duopoly Model", Customer Needs and Solutions, vol. 3, no. 2, pp. 104-
114.