Burberry's Brand Repositioning: A Marketing Strategy Analysis

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BUSINESS MARKETING
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Table of Contents
Introduction................................................................................................................................3
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
Q2. 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........................................5
Q3. Provide two methods, which brands such as Burberry might use to achieve repositioning.
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Conclusion..................................................................................................................................8
Reference List............................................................................................................................9
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Introduction
Brand positioning and repositioning plays a vital role in marketing the brand of the
organisation. Brand positioning is a business strategy that is applied by company to increase
the growth of organisation’s business. Brand repositioning is a strategy that is incorporated
by management of organisation to resolve the issues responsible for failure in its business. In
this discussion, relevancy of positioning and repositioning of marketer has been analysed in
the business context of Burberry.
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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?
Relevance and importance of marketer in the context of positioning and repositioning
Positioning of brand and product is a strategy applied by organisation to create an impression
for its product and services in market. Location of business, price of product and promotion
of product are few components those play a vital role in positioning (Trivellas et al., 2017). A
repositioning is a process of modifying the mentioned components of positioning by
organisation in this context in achieve the target set in business.
In the context of Koch and Gyrd, (2019), the positioning and repositioning of product and its
brand has relevant effect on the business of Burberry. Burberry usually put its prices higher
for its luxuries and leather bags because Burberry provide best quality product to its customer
in the market. Therefore, people of age from 40 to 60 are target customer for Burberry to
whom organisation believes to give service (excerpted from case study). Therefore, Burberry
already has accomplished to position of its product, price and location. A repositioning in the
context of Burberry business, company can lower the price of its product so that it can attract
the customers of young age. Customer would prefer to purchase the product according to
their financial status and quality of product. Therefore, customer age ranging from 24 to 40
will attract toward the accessories of Burberry.
Implication of performance due to repositioning of brand and image
A successful repositioning of products and accessories of Burberry would develop a new
market and new customer for the organisation. As repositioning of Burberry targeting the
young age customer, therefore customer base will be increasing. This helps to gain the
competitive advantage for organisation. Product repositioning also include location, therefore
the stores of Burberry will increase in UK (John and Park, 2016). A repositioning of brand
and product would influence the revenue generation of Burberry in a positive way. In the
organisational context, repositioning creates a vision in Burberry management to make
business strategy for younger generation customer.
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Q2. 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
Before brand repositioning of Burberry, this organisation has generated 37% of revenue by
increasing its sales. Before repositioning, the organisation targets the customer those can
spend high price over Burberry products. Burberry has achieved the positioning of its brand
through selling of its luxurious and leather bags. Leather bags have been modified by
Burberry to attract its target customer in UK market. Burberry achieves brand repositioning
by targeting young customer whose age ranging from 18 to 28.
Figure1: Presentation map before applying brand reposition
(Source: Jun, S.P. and Park, 2017)
The above presentation map includes three brands Gucci, Primark and Burberry where the
scenario before Burberry brand repositioning has been analysed. In this case, Gucci has
highest customer demand and effective brand image considering the market of UK.
Burberry comes after Gucci followed by Primark before brand repositioning where quality of
product and price rate of product is high.
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Figure2: Presentation map after brand repositioning
(Source: Utarsih, 2017)
The presentation map after brand repositioning of Burberry shows the shifting of quadrant in
the map. The low price and high quality of product presents a business strategy of Burberry
that target the young customer.
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Q3. Provide two methods, which brands such as Burberry might use to achieve
repositioning.
Psychological Repositioning
According to the scenario provided, it is clear that Burberry has done brand repositioning due
to decreasing sales volume of its product in the UK market. Therefore, Burberry changed
different factors related to its product such as price, target customer. The psychological
repositioning is the shifting of belief of customer toward the brand image. This affects the old
opinion of customer toward the product and services of organisation. Thus, Burberry changes
the perception of its target customer by implementing repositioning where different kinds of
strategic promotions are conducted.
Real Repositioning
Real repositioning is a business strategy that Burberry followed to reposition its brand image
in the real time basis. Therefore, company redesign the product according to the requirement
of customer. Real repositioning of brand make the management of Burberry understand the
requirement of customer and redesigning of product become a productive approach for the
organisation. In this way, this repositioning fulfils the demands of customer. Furthermore,
Burberry targets the young customer of age group 18 to 28 years for expanding its customer
base. Therefore, real repositioning of brand involves the analysis of young customer
preferences regarding Burberry product and services.
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Conclusion
From the above discussion, it has been understood that brand repositioning is a business
strategy that organisation implement in its business process to compensate losses happened in
sales of a product. The relevancy and importance of repositioning of brand image has been
aligned with the business scenario provided for Burberry. Brand or product positioning shows
the establishment of business of an organisation and repositioning is modification of existing
business strategy. This shifting of perception in business strategy changes the external factors
like product quality, customer segment in order to compensate the loss happened in business.
In the last section, real repositioning and psychological repositioning are two methods
selected to analyse the concept of brand repositioning and its effect on customer.
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Reference List
John, D.R. and Park, J.K., 2016. Mindsets matter: Implications for branding research and
practice. Journal of Consumer Psychology, 26(1), pp.153-160.
Jun, S.P. and Park, D.H., 2017. Visualization of brand positioning based on consumer web
search information: using social network analysis. Internet Research, 27(2), pp.381-407.
Koch, C.H. and Gyrd-Jones, R.I., 2019. Corporate brand positioning in complex industrial
firms: Introducing a dynamic, process approach to positioning. Industrial Marketing
Management.
Trivellas, P., Kakkos, N., Vasiliadis, L. and Belias, D., 2017. Sustainability, social marketing
and host attitudes about Tourism in the city of Larissa. In Strategic Innovative Marketing (pp.
89-95). Springer, Cham.
Utarsih, H., 2017. The Effects of Product Development and Quality on Brand
Repositioning. Journal of Economic & Management Perspectives, 11(4), pp.369-374.
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