Burberry's Upmarket Positioning: A Marketing Case Study

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Principles of marketing
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Contents
Introduction.................................................................................................................................................3
Task.............................................................................................................................................................4
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?......................................................................4
2. In the case of Burberry, demonstrate using a positioning map, how the positioning of the brand will
change as a result of this process. In presenting the map, also identify where on the map the following
brands would be located: Gucci and Primark...........................................................................................5
3. Provide two methods which brands such as Burberry might use to achieve repositioning..................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
In this case study, the discussion is all about the Burberry fashion brand. Headquarters of
Burberry is in London and has been established in 1857 by Thomas Burberry. Firstly the
discussion will be about the positioning and the repositioning of the product. Secondly, the
positioning map of Burberry, Gucci and Primark will be focused. At last, the discussion is about
the methods which can be used to repositioning.
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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?
Product positioning plays a vital role in the marketing plan. The marketing manager should use
the best strategies to communicate the targeted customer so that the customer will get to know
about the benefits and the need for the product (Marina, 2014). Effective product positioning will
help the manager to reach the targeted customer and will also assist in increasing the profit. The
importance of positioning and repositioning for the marketers are:
 Targeting communication network: product positioning helps the marketer to know
how their product and the way of presenting the product is different from other brands
which attract the customer (Gherghina, 2014). The marketer should communicate about
the product to the targeted customer. For effective communication, the marketer uses
different types of communication channel like television, social media, newspaper etc.
which will help in reaching the targeted customer.
 Understanding customer requirements: for the useful product positioning the marketer
should firstly know about the needs of the customer as understanding the customer
requirement will help in selecting the communication channel. The first step of the
product position is to identify the needs of the customer. The marketer should know the
need of the customer regarding their product as it will help in doing the marketing.
 Increase sale: the repositioning of the product helps in making an extra sale through
applicable offering which is a different customer.
 Clearer target market: repositioning of the product is done to change the targeted
market. As sometimes things cannot become upon the expectation and will lead non-
achievement of the target. The more precise target market will help in generating more
profit with the help of product repositioning the marketer to identify the market and make
the changes accordingly.
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2. In the case of Burberry, demonstrate using a positioning map, how the positioning of the
brand will change as a result of this process. In presenting the map, also identify where on
the map the following brands would be located: Gucci and Primark.
The diagram which is drawn to know the perception of the customer regarding the business
which is based on the price, quality and the other benefits regarding the product and the
compression of the knowledge of other competitors is known as the positioning map.
Burberry Company
Source: (Chow, 2018)
The products of Burberry is of high quality, it is most expensive as well as most fashionable in
the market which is availing growth opportunity to it in the competitive market.
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Primark Company
Source: (Armstrong, 2015)
The positioning map helps in developing the benefits of competition. Positioning map helps to
identify the position of the brand. The followers and affordability of the company are very high
as per the presented graph.
Gucci Company
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Source: (Paul, 2018)
The company has a mass market along with this the prices also set high. As per the positioning
map, it can be understood that the firm is at a very good position in the elite market.
The components of these positioning maps are:
 Prestige price: in this the cost of the product like jewellery, the car is higher than the
normal price.
 Mass market: the consumers are of different age groups, and there taste and preferences
are different from each other according to their lifestyle. The company produces the
product which can be useful for the various age groups can be known as mass market.
 Exclusivity: the product which can be used by the limited people or a luxury product.
 Affordability: the price through which anyone can buy the product or an affordable
price.
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3. Provide two methods which brands such as Burberry might use to achieve repositioning.
In the first half of 2017, the sale of Burberry is increased by 10%. Small leather items and
handbags are the products which performed well (Choumwong, et. al., 2013.). The two methods
which the Burberry should use to achieve repositioning are:
 Increase actual value: increase in the actual value of the products will lead to increase in
the investment of the business, but with this then they can improve the products and also
help in increasing the profit as the customer loves the improvement in the products as the
quality of the products will also increase. In the business, the addition of the actual value
can be done anytime to improve the view of the customer regarding the product. The
company will use more leather than cloth, and it will lead to an increase in the cost of
manufacturing. This will help in improving the sale.
 Increase in perceived value: an increase in the perceived value is more profitable as
compared to the rise in the actual value as the company do not have to spend a lot of
money. The customer will buy the product whose packing is excellent and attractive and
will also pay high (Chironi and Ingrassia, 2013). The company do not have to spend more
money on the packaging as it can be done by using different font style and size and by
using a dark colour. This will make the product of higher quality; however, inside the
packing, the product is cheaper. It is all about the perception of the customer as the
customer like attractive things more. Relations will help in boosting the perceived value
and will also assist in increasing the profit and the sale.
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Conclusion
In the above case study, the discussion is made about the Burberry. It is being concluded that
how the product positioning and repositioning will help in reaching the targeted customer and the
channels through which the marketer can communicate with the customer about the product. And
also discuss the positioning maps of Gucci and Primark. It is also being concluded about
different methods that can be useful in product repositioning.
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References
 Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V., and Gaudet, D., 2015. Marketing:
an introduction.
 Chironi, S. and Ingrassia, M., 2013, October. Study of the importance of emotional
factors connected to the colors of fresh-cut cactus pear fruits in consumer purchase
choices for a marketing positioning strategy. In VIII International Congress on Cactus
Pear and Cochineal 1067 (pp. 209-215).
 Choumwong, S., Maliwong, S. and Pitakkotchawong, S., Western Digital (Fremont)
LLC, 2013. Systems and methods for repositioning row bars used for manufacturing
magnetic heads. U.S. Patent 8,545,164.
 Chow, P.S., Chiu, C.H., Yip, A.C. and Tang, A.K. eds., 2018. Contemporary Case
Studies on Fashion Production, Marketing, and Operations. Springer Singapore.
 Gherghina, L., 2014. The importance of image and communication of a brand or
trademark positioning. Analele Universitatii'Eftimie Murgu'Resita. Fascicola II. Studii
Economice, pp.83-87.
 Marina, K., 2014. Capturing meaning through Brand value and Green
marketing. Управленческие науки, (1 (10).
 Paul, J., 2018. Masstige model and measure for brand management. European
Management Journal.
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