Burberry's Repositioning Strategy: A Market Positioning Analysis

Desklib provides past papers and solved assignments for students. This report analyzes Burberry's brand repositioning.

Individual Assignment
1

Table of Contents
Introduction......................................................................................................................................3
Task..................................................................................................................................................4
Conclusion.......................................................................................................................................7
Reference list...................................................................................................................................8
2

Introduction
Market positioning is an important tools used for developing an effective image of a product or
brand in the mind of the targeted customer. It is associated with improving the selling of that
particular product. Repositioning is another important feature of marketing, which is associated
with changing the brand’s status. Here the relevance of positioning and repositioning of the
company Burberry will be discussed.
3

Task
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?
Market positioning is the most significant feature of business strategy, which is defined as the
perception of customer for a product or brand. It is an important process, which is responsible for
establishing the image of a product or a brand in most significant way to the customer, which
helps to perceive the product in a specific way (Anker et al., 2015). Positioning is beneficial to
develop significant impression of that particular products or brands in the mind of targeted
audience. This is associated with increasing the rate of sale of that particular product and hence,
helps the organisation to gain more profit. Repositioning is a process, which is done when a
company decides to change the status of a particular brand or product in the market. These
changes include the price of the product, place and the promotion of the product.
The organisation Burberry is concerning with increasing their sales growth for maintaining
proper financial status of the organisation. Therefore, they focused on repositioning of products
for the market. Burberry used several methods for repositioning their products, which include
improvement in digital activity, up gradation in the design and style of the product, development
of strategies, which include several retail offering and renewing of brand appeal. Success of all
of these methods are associated with several implications, which include enhance their sales,
which will provide a positive impact on the financial status of the organisation and leading the
organisation to success. It is associated with improving the position of the brand and relative to
market competition. It helps to meet the need and wanting of customer in an effective way
(Zampella et al., 2015).
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
Positioning mapping is a diagrammatic tool, which is used by the market for displaying visually
for the perceptions of their customers. This map has several dimensions, which are used to
4

High Price
Low Price
Low QualityHigh Quality
recognise the gaps, which has occurred in the market along with clarifying the problems that has
occurred with a company product (Pedersen et al., 2018).
It has been shown that, Primark is associated with providing products of high quality with low
price and Burberry and Gucci are originated to produce high quality product with high price.
Customers are found to prefer the product of Primark due to the low price and high quality.
Therefore, it becomes essential for Gucci and Burberry to attract customers for promoting their
sale. Gucci is concerned about increasing sale by renewing their brand appeal, which helps the
organisation to attract new customers. It has shown that Burberry is focused to improve their
digital activity and improve designing of products to replace the old traditional approach. It helps
to meet the satisfaction level of the customer as well as it is associated with attracting the young
customers.
3. Provide two methods, which brands such as Burberry might use to achieve repositioning
Repositioning is an important event, which is referred to as the changes, which has been
significantly done in positioning for the brand or product to achieve repositioning. It is essential
5

to change the understanding of the product of the target market (Massara et al., 2018). It is
essential to promote the sale growth and hence Burberry should move for repositioning its brand
and product to achieve this kind of attribute. Thus, Burberry focuses on digital activity, which is
associated meeting the customer’s satisfaction level and their need by providing them an easy
access to buy products online comfortably from their home (BORSBOOM et al., 2018).
Digital activity:
 It is allied with developing online editorial content
 It is focused on introducing an augmented reality application
 This app allows every customer to superimpose digital illustrations on their own pictures
 Helps to increase brand loyalty
The most important implication of this method has relying on the fact that the targeted audience
are easily reached in a measurable and cost effective way (FERNIE and PERRY, 2018). On the
other hand, another important method, which is responsible to achieve repositioning, is an
improved positioning method of designer brand.
Designer brand:
 Help to attract younger customers.
 Increased rate of sale
 Development of new styles designs and models
The most significant implication of this method rely on the factor that it helps to replace the old
traditional style and help to attract the younger customers, which is coupled with repositioning of
the product.
6

Conclusion
It can be concluded that, positioning and repositioning of product and brand is a great approach
in market to improve the sales rate of organisation. The position mapping is the best way to
understand the perception of customer for the position and offering of products. Improvement in
digital activity and designing of new products and retail offering is the best suitable way of their
repositioning.
7

Reference list
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.
FERNIE, J. and PERRY, P., 2018. Luxury supply management chain. Logistics and Retail
Management: Emerging Issues and New Challenges in the Retail Supply Chain, p.149.
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.
Pedersen, E.R.G., Gwozdz, W. and Hvass, K.K., 2018. Exploring the relationship between
business model innovation, corporate sustainability, and organisational values within the fashion
industry. Journal of Business Ethics, 149(2), pp.267-284.
Zampella, F., Ruiz, A.R.J. and Granja, F.S., 2015. Indoor positioning using efficient map
matching, RSS measurements, and an improved motion model. IEEE Transactions on Vehicular
Technology, 64(4), pp.1304-1317.
8