Introduction to Management: Burberry's Repositioning Strategy

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Introduction to Management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task..................................................................................................................................................2
1. 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?.............2
2. Demonstrate by means of a positioning map, how the positioning of the brand will change
as result of this process................................................................................................................4
3. Provide two methods which brands such as Burberry might use to achieve repositioning.....6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

LIST OF FIGURES
Figure 1: Burberry market position.................................................................................................3
Figure 2: Burberry positioning map................................................................................................5

Introduction
Burberry is the luxury brand from Britain that manufactures the fashion and cloths accessorise.
The main mission of the organization is to maintain the vitality and integrity of their brand as
well as also contribute in developing a business growth at the same time that remains relevant
evolving the consumer and markets tastes. The main vision of the organization is to fully digital
and build social enterprise worldwide. The report will also discuss the repositioning for the
marketer importance along with also discuss the implications of business performance towards
moving to success. Also, the report will also highlight the brand positioning that changes the
entire process result. Lastly, two methods will reflect in the report that organization use in
gaining the repositioning in a market.
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Task
1. 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 repositioning and positioning for a marketer are one of the important elements in a
marketing plan. The positioning is a process which the marketer use in determining the best
method of a communication channel to attribute their products to target consumer as per on their
demand. The brand positioning is important as it boosts the firm’s visibility which also helps in
shutting out the competition. Burberry itself is positioned in the luxurious brand which is
innovative, stylish and inspirational brand (Massara et al., 2018). Also, the organization has
targeted its brand mainly to attract the consumer along with the customer skewed base,
conservative and traditional stodgy looking towards the older generation. However, Burberry has
now become the brand symbolizing for both purpose either durability or luxury.
Also, the organization is focusing on the niche segment in between various brands like Giorgio
Armani and Polo Ralph Lauren and between Gucci and Coach in the accessories. It is analysed
that Burberry has a specific point of the price and for this, it has a particular segment of price.
The main differences which made the Burberry unique in it were based on its functionality that
determined that products should have the purpose. As Burberry brand traditions gradually fell in
the public association with the old fashionable garments, in which the management saw the
opportunities in reviving the tradition of the Burberry success (BORSBOOM et al., 2018). The
matrix of the refurbished design, tactical placement of product and celebrity endorsement
alongside that is known as a luxury brand like Gucci which renewed the customer acceptances
successfully.
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Figure 1: Burberry market position
(Source: www.slideshare.net, 2019).
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2. Demonstrate by means of a positioning map, how the positioning of the brand will change as
result of this process.
Burberry announced the plans in establishing its firm position into the luxury to play a most
rewarding in order to endure the market segment. Burberry thinks that if to win the heart of the
customer then they have to sharpen their brand positioning as well as change their approach to
the product, customer experience and communication method if to change the process result. The
consolidation of the firm of the London in the power of the Burberry that has left with a wider
price range points than that of luxury rivals such as Gucci or Louis Vuitton.
To change the existing process result, Burberry has focused mainly on how consumer demand as
change and how sector change in excitement and innovation from the brand and how creativity is
turned on every turn. The market positioning of Burberry is determined by its competitor’s
analysis (Zenk, 2017). The competitive positioning of the Burberry is more suitable for the
longer term. The brand such as Gucci and Coach is focusing more on the Armani and accessories
as well as Polo is also focusing more on an apparel market to change the existing result. The
Burberry has achieved success to penetrate both the apparel and accessory market of remaining
the good as luxurious. Also, Burberry has successes in itself positioning between the various
brand like Armani and Polo Ralph Lauren in the apparel market and between the Gucci and
Coach in the accessories. In the brand of the Burberry, there are different lines in one. It will
allow in more high ended products, and this product is feasible to purchase from the general
public. The positioning of Burberry of the functional luxury is competitive extremely and it will
further sustain on a longer basis (Anker et al., 2015).
4

Figure 2: Burberry positioning map
(Source: sites.google.com, 2019)
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3. Provide two methods which brands such as Burberry might use to achieve repositioning.
Currently, the luxury brand is slow down and the largest brand such as Burberry, Mulberry and
Prada feeling a pinch. With a change in the behaviour of consumption the luxury brand has to
reposition itself during transition brand. Burberry has used the cost rationalization and
diversifying method to achieve the repositioning in its brand.
Cost rationalization: It is mainly an organization restructure in terms of increasing its operating
performances and efficiency to achieve repositioning in the market. The reorganization leads to
the reduction and expansion in the organizational size, change of the policy or strategy
alternation that is retaining to the specific products which an organization is offering to the
consumer (Kim et al., 2018).
Diversifying: The expansion is horizontally undertaken in the various traditional luxury
categories. Like for example, the Louis Vuitton has expanded in the high watches, jewellery and
high fashion. The coach has also explored the options of the lower price to the consumer by
providing them with a wide range of an accessible product. The other brand likes Burberry is
expanded in the several new ways to reach with a mass of the customer at one time by online
sales, mobile advertisement etc in terms of achieving the repositioning in the market.
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Conclusion
Based on the above analysis it has been concluded that Burberry has been positioned as the
staple for functionality and luxury brand. It has also mentioned from the above report that
Burberry has maintained the line of product with the great depth and width that is consisting of
several products. The Burberry competitive positioning is more suitable for longer which has
analysed in the report. The positioning and the repositioning of the marketer relevance along
with the implication of business performances when moving towards success has also discussed
in the report. Further, the two methods that an organization has used in achieving a repositioning
in a market have also been highlighted in a report.
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References
Books and Journals
 Anker, T.B., Sparks, L., Moutinho, L. and Grönroos, C., 2015. Consumer dominant value
creation: A theoretical response to the recent call for a consumer dominant logic for
marketing. European Journal of Marketing, 49(3/4), pp.532-560.
 BORSBOOM, L., CASE, B. and LAWSON, N., 2018. BURBERRY JOUSTING FOR
REDEMPTION. LBMG Corporate Brand Management and Reputation-Masters Case
Series.
 Kim, P., Vaidyanathan, R., Chang, H. and Stoel, L., 2018. Using brand alliances with
artists to expand retail brand personality. Journal of Business Research, 85, pp.424-433.
 Massara, F., Porcheddu, D. and Melara, R.D., 2018. Luxury brands pursuing lifestyle
positioning: effects on willingness to pay. Journal of Brand Management, pp.1-13.
 Zenk, J., 2017. Successfully positioning & extending a young luxury fashion brand: Case:
Kaviar Gauche.
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