Analysis of Burberry's Repositioning Strategy in the Fashion Market

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Report on Fashion Accessories
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Table of Contents
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? (40%)..............................................1
2.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 (30%).....................................2
3.Provide two methods which brands such as Burberry might use to achieve repositioning.
(30%)...........................................................................................................................................4
References....................................................................................................................................5
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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? (40%)
From the above article it can be concluded that for an organization like Burberry product and
brand positioning and reposition is very important. Positioning is effective in creating an
effective market plan for an organization like Burberry (Som, and Blanckaert,2015). The market
with the help of product positioning can effectively determined the best way to establish
effective communication with the customer regarding their products to the target customers
considering the needs and expectation of customers, mode of communication channels, and
competitive pressures. With the effective product positioning the marketers of the organization
can be ensured that the message of marketing for resonating with the target consumers of the
offered product to product purchasing.
On the other hand, repositioning is a similar concept as positioning that will be effective in
aligning the organisational products as per the current customer needs and demands. Currently
the product quality, economic markets and pricing factors need to be considered by an
organisation for attracting marketers towards the business activities and product offered.
Moreover, proper understanding regarding positioning is needed for proper identification of
market trends and demands for implementing effective approaches and strategies to gain
competitive benefits for raising the bars of profitability (Venkatesan, 2017). Burberry needs to
increase the present customer base, level of quality management and create balancing price so
that sustainable growth can be attained for the organisation in the competitive market.
Currently for attracting more customers and to increase the business revenue, Burberry need to
implement various strategies for enhancing product quality, market attraction, customer retention
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and price improvements. The organisation for achieving high rate of sales and profitability needs
to increasing brand position and customer base. The organisation can get empowerment with
strategies of expansion toward the presently developing markets like India, China and Japan
where the customers are attracted towards clothing product as well as accessories. Higher
marketers reach can also be effective in empowering the organisation offering its reliability for
promoting the product considering the current audience (Fletcher, 2013).
The organisation needs to identify the current market trends and capabilities for understanding
the customers and their demands for attaining business success. With additional up-markets in
various categories of product more number of customers can be attracted.
2.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 (30%).
The brand positioning of an organisation in the current UK market influences the overall
competitive edge. For getting a recognisable position in the market the organisation can opt to
implement various business strategies for attaining recognisable differences of product and
marketing strategies to attract more customers for gaining various competitive advances with
respect to its competitors. Presently being in the sector of fashion and due to its brand image the
organisation is having a huge customer base, however the organisation need to align effectively
with the currently changing marketing discernment and demands of the customers. The products
offered to the customers can be used by the organisation for promoting its business functionality
and brand capabilities. Burberry can utilise proper marketing communication for identifying the
current organisation position in the global market.
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The process of positioning will be supportive in changing the current brand positioning. For
instance, currently the organisation is having high product pricing for the high quality offered. In
case the positioning and repositioning process becomes successful, the organisation will be
capable of attracting more number of customers by serving them with quality products as a value
for the money paid. The organisational position in such case will support in raise the product
standards including high price and quality (Melewar, et al 2017). This is so because currently the
organisation can get various branding benefit including easy customer retention towards business
activities and products. High product price offered by the organisation can be effective in
attaining high competitive return on all the branding done and investment made. However,
standardisation in the product quality offered will be effective in encouraging the customers to
purchase fashion clothing from Burberry.
For an example, Gucci one of the leading organisation offering leather products like belts, bag
and other accessories has successfully reached various customers in the global level including
Japan, UK etc. The positioning gap between Gucci and Burberry indicates that the both the
organisations are at a competitive position with minimal differences. Thus, for managing the
current competitive difference between the organisations, Burberry need to essentially position
its product and brand name in the market (Nobbs, et al 2015.). Moreover, Burberry also has high
has competition with Primark due to its high product quality in low cost.
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Figure 1: Position map
3.Provide two methods which brands such as Burberry might use to achieve repositioning.
(30%).
The process of repositioning is required in an organization for evaluating the present established
position of various services, product, and brand image for altering its current positioning for
improving edge of competitiveness (de Jorge Moreno, and Carrasco, 2016). In case of Burberry,
the organization is presently emphasizing of implementing and integrating latest technological
trend in terms of various business processes including marketing and offering ecommerce’s
services. The reach more and more customers the organization has invested upon digital
technology and tools for fulfilling the current customers’ demand of preferring online purchasing
of product offered. To attract more customers and to gain competitive success Burberry in the
year 2017 has re-launched it mobile application that with highly attractive GUI allowing the
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customers to interact with the organisation through images using the ARK it function. Using this
application the users is capable of exporting and share their images present in their social media
account.
Burberry for repositioning it business standards uses various business strategies. Burberry being
a premium brand that target audience mainly for the upper-middle class. The organization offer
small gifts and giveaways of 40 pounds depending upon the intricate design to its customers. The
clothing offered to the customers from 200 pounds to 1000 pounds. Burberry is offering
differential pricing for attracting more customers (Kwak, and Kim, 2013). The organization is
presently is opting to adding new channels of market by merging with other departmental stores
and online websites like amazons. With digital strategies the organisation can minimise it
operational cost. The price differentiation aims to lower the previous brand recorded offering
global expansion and gaining competitive benefit for rising the standards of business economy
even it case of financial crisis experience by a country.
References
Kwak, M. and Kim, H., 2013. Market positioning of remanufactured products with optimal
planning for part upgrades. Journal of Mechanical Design, 135(1), p.011007.
de Jorge Moreno, J. and Carrasco, O.R., 2016. Efficiency, internationalization and market
positioning in textiles fast fashion: The Inditex case. International Journal of Retail &
Distribution Management, 44(4), pp.397-425.
Nobbs, K., Foong, K.M. and Baker, J., 2015. An exploration of fashion visual merchandising and
its role as a brand positioning device. Journal of Global Fashion Marketing, 6(1), pp.4-19.
Fletcher, K., 2013. Sustainable fashion and textiles: design journeys. Routledge
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Melewar, T.C., Foroudi, P., Gupta, S., Kitchen, P.J. and Foroudi, M.M., 2017. Integrating
identity, strategy and communications for trust, loyalty and commitment. European Journal of
Marketing, 51(3), pp.572-604x
Som, A. and Blanckaert, C., 2015. The road to luxury: The evolution, markets, and strategies of
luxury brand management. John Wiley & Sons.
Venkatesan, R., 2017. Executing on a customer engagement strategy.
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