Burberry Brand Repositioning Strategies: A Marketing Report

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INDIVIDUAL ASSIGNMENT

Table of Contents
INTRODUCTION............................................................................................................................. 2
IMPORTANCE OF POSITIONING AND REPOSITIONING...................................................................3
THE IMPLICATIONS FOR THE PERFORMANCE OF THE BUSINESS IF SUCH A MOVE IS SUCCESSFUL
....................................................................................................................................................... 3
POSITION OF THE BRAND ON POSITIONING MAP.........................................................................4
METHODS TO ACHIEVE REPOSITIONING........................................................................................5
CONCLUSION................................................................................................................................. 6
REFERENCES...................................................................................................................................7
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INTRODUCTION
The prime objective of the organization is to create a better interpretation of luxury brands
such as Burberry, Primark, Gucci, Michael Kors, etc. Luxury brands such as Burberry have to
focus on the expansion of the brands and enhance the strategies of the organization in order to
compete with competitive brands. This report will assist in understanding the impacts of the
positioning and repositioning of the products and how it influences the organization. For
evaluating the performance of the organization in a practical manner, the position of the
brands will be exhibited on the map including different methods to achieve repositioning.
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IMPORTANCE OF POSITIONING AND REPOSITIONING
Positioning is a concept of the market which decides what an organization should do or not do
to market its product to the customers. Positioning helps an organization to influence the minds
of the customers by emphasizing the distinguishing features of their company or brands. It
possesses the ability to influence the perception of a customer of the brand in relation to its
rival brand. Repositioning of the market is implementing a major change in the current strategy
relative to the offering of competitive products. It involves understanding the market situation,
product, competition, demands of the customer, etc. and generates a new position for the
product and services of the brand (Slater, 2016). Burberry PLC is a fashion luxury brand which
focuses on fashion accessories, clothing, fragrances and cosmetics. It’s headquarter is situated
in London, England.
The growth of the Burberry was observed in 2017 but as the result of annualization of sterling’s
weakness the growth of the brand slowed down. 10% decline in global revenue to £2.8 billion
was observed. The current strategies of the Burberry were less effective and compelled the
organization to reposition them. As a part of repositioning, new CEO Marco Gobbetti was
appointed and will reposition the brand by increasing the price architecture and climbing back
the sales to lower end retailers and wholesalers in the luxury sector. Repositioning of the
strategies and decisions will help the organization in selecting the right communication
channels and understand the demands of regular customers (Richards, 2019).
THE IMPLICATIONS FOR THE PERFORMANCE OF THE BUSINESS IF SUCH A MOVE
IS SUCCESSFUL
If the positioning and repositioning of the products managed to be successful, the organization
will be benefitted in several ways such as:
1. IDENTIFY CUSTOMER NEEDS - the needs of the customers are likely to change over time.
Repositioning helps the organization to identify demands and fulfil them in order to achieve
the objective of the organization.
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2. SELECTING COMMUNICATION CHANNELS - It is important for an organization to select an
appropriate channel for the communication with the customers in order to target the area
of accurate customers. Repositioning will help the organization to connect with the targeted
audience (Slater, 2016).
3. IMPROVED SALES AND PROFIT - Repositioning will help the organization to fix the current
issues faced by the organization and will help the organization to generate sales by offering
various relevant offers to the general public.
4. POTENTIAL MEDIA ATTENTION - A specific support of the media will assist the organization
in order to be successful. Media attention will help the organization in communicating and
fortify the product’s repositioning goals (Slater, 2016).
POSITION OF THE BRAND ON POSITIONING MAP
Figure 1- Positioning Map
A position of the brand is the set of perceptions, ideas and impressions that a customer has
regarding the product of the company in comparison to other companies. Brand positioning of
the organization is a market tool which helps in giving information about the strength and
weakness of the organization with respect to the rival brands. In the case of Burberry, the
positioning of the organization on the positioning map will help the organization to determine
the impression of the offering of business on the basis of price, quality, etc. Burberry can
reposition the current position of the organization with the help of seeable figures and redesign
the current strategies (OS, 2016).
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Several benefits of positioning maps on Burberry include:
1. A better understanding of various market segments
2. Perception of Burberry in the marketplace
3. Monitor changes in customer preferences
4. Spot market gaps
5. Performance of recent marketing campaigns
6. Access the dynamic market position of rival brands
METHODS TO ACHIEVE REPOSITIONING
Repositioning means adjusting or altering the current strategy of the organization. Several
luxury brands adopt various techniques and methods in order to improve strategies and
enhance the performance of the organization. Various methods to improve and achieve
repositioning include:
PERCEPTUAL MAPPING - perceptual maps are also known as market maps which are used by
the organization that attempts visually identify market gaps and fix the errors faced by the
customers of the organization. This method of mapping will lend a helping hand to luxury
brands such as Burberry, Primark, Gucci, Michael Kors, Prada, Giorgio Armani, etc. in
positioning and repositioning the products and advance the strategies for the products offered
by the organization (Grimsley, 2019).
COMMUNICATION PROCESS - Advertising is a universal mode of transferring messages from
one place to another. It is also used to outspread general information about an organization to
a wide range of people. Burberry is a large organization for which communication is an essential
part as it enables the company to make public aware of the brand. The organization uses
several modes of communication such as poster campaigns and face to face interactions so as
to understand the preferences of the customers and repositioning the strategies accordingly.
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CONCLUSION
This has been observed from the above-given data that every organization has various types of
strategies which has to be positioned and repositioned at a point of time and how it influences
the performance of the organization. This report helps in understanding the different types of
benefits from the repositioning of the products. In addition to it, the benefits of positioning
map along with the methods to achieve repositioning has been discussed. Overall a brief
discussion about the luxury brands such as Burberry, Primark, Gucci, etc. has been followed.
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REFERENCES
Cohen, B., 2016. Brand mapping. (Online) Available at: http://amaboston.org/blog/brand-
mapping-an-effective-and-efficient-tool-for-marketers/ (Accessed on 15th March 2019).
Grimsley, S., 2019. Communication process. (Online) Available at:
https://study.com/academy/lesson/what-is-the-communication-process-definition-steps.html
(Accessed on 15th March 2019).
Grimsley, S., 2019. Perceptual Mapping. (Online) Available at:
https://study.com/academy/lesson/perceptual-mapping-in-marketing-definition-techniques-
examples.html (Accessed on 15th March 2019).
OS, 2016. Positioning maps. (Online) Available at: https://blog.outsource2india.com/why-use-a-
perceptual-map/ (Accessed on 15th March 2019).
Richards, L., 2019. Importance of product positioning. (Online) Available at:
https://smallbusiness.chron.com/importance-product-positioning-marketing-plan-24275.html
(Accessed on 15th March 2019).
Slater, J., 2016. Repositioning. (Online) Available at:
http://www.themarketingsage.com/repositioning/ (Accessed on 15th March 2019).
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