Burberry's Repositioning Strategy: A Market Positioning Analysis

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

Fashion Accessories in UK

Table of Contents
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?.....................................................................................................3
In the case of Burberry, demonstrate by means of 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
Provide two methods which brands such as Burberry might use to achieve repositioning.....................7
References...................................................................................................................................................8

LIST OF FIGURES
Figure 1: Facts and Financials of Burberry..................................................................................................4
Figure 2: Positioning map of competitive position of Burberry...................................................................6

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?
Burberry has positioned in the market as a functional luxury as it provides a wide range of
product lines. Market positioning is a process through which Burberry can establish a distinct
identity of the brand in the mindset of consumers so that the target market can be effectively
explored. Burberry has adopted its positioning strategy of product differentiation in which it is
using handbags and small leather bags (bridle and buckle bags) to market its brand (Akpoyomare
et al., 2013). The position strategy is relevant for the Burberry as it has helped to gain the
premium value on the products and services. In addition, it has made the organisational presence
strong in the fashion market. This has resulted in increased sales of bags by 16% at the end of
31st March 2017.
Figure 1: Facts and Financials of Burberry
Burberry desires to make competitive position among its rival in the fashion market and hence, it
is essential to attract market, improve quality, and design products as per the shoppers’
perception (Roslyn Frenz, 2017). In addition to enhance the brand recognition and market value
of the brand, a new strategically move is required for the organisation. Hence, Burberry intends
to reposition itself through a strategy in which the market price of leather products is enhanced
along with the reduction of sales to the retailers and wholesalers so that Burberry can directly
reach to the end customers.
Repositioning refers to a strategy through which an organisation changes the existence of its
brand. The correct positioning strategy of Burberry differentiates its products of handbags from

its rivals, like; if this repositioning strategy is adopted then it will benefit the organisation in
many ways. This will helps the organisation to earn a good amount of premium as customers
trust and rely on the quality and positioning brand of Burberry. In addition, this supports the
category claims regarding the buckle and bridle bags that help Burberry to strengthen its luxury
brand in the market (Armstrong et al., 2015). Along with the positioning strategy of Burberry,
the new strategy of repositioning will help the Burberry to improve its direct sales to the
customers, and it can better align with the current needs of the young generation. This strategy
will help the Burberry to effectively promote its luxury brand through media attention that leads
to an improved competitive position in the fashion market.

In the case of Burberry, demonstrate by means of 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
Burberry is adopting the positioning strategy by adding recognisable differences in its leather
products that bring competitive position in the market. The organisation is operating at a large
scale; however, it requires aligning its current business strategy with the changing consumer
perception (Richard A. D’Aveni, 2007).
Currently, Burberry is selling its leather products with the availability of high quality and high
price. If the position and repositioning process gets successful in the luxury fashion market, then
it will attract more customers in the fashion market. Hence, at this stage, the positioning map will
help the Burberry to strengthen its position in which it will shift to high price and high quality.
High price relates to the premium that customers are ready to pay for the recognisable brand and
products of Burberry. In addition, to retain the customers with the organisation, the maintenance
of good quality is essential to get a highly competitive position in the market (Ben Cohen, 2016).
Figure 2: Positioning map of competitive position of Burberry

The competitors of Burberry include Gucci and Primark in which Gucci is the leading brand of
leather bags and other products that offer quality products across the world. The above posting
map shows that there is a very little gap between the Gucci and Burberry that shows that there is
tough competition among them. On the other hand, Primark is positioned with low quality and
price that leads to the low customer base and brand recognition in the market.

Provide two methods which brands such as Burberry might use to achieve repositioning.
Burberry can strengthen its competitive position in the market with the help of following
methods of repositioning strategy:
Consumer Engagement: Burberry is required to involve its competitors in the repositioning
strategy so that a strong relationship can be effectively established. This develops the feeling of
belongingness among the customers towards the brand. Hence, customer engagement can be
possible for Burberry by working on customising leather bags that best satisfy the demands of
the customers. Creativity and innovation is an effective tool that helps the organisation to meet
out the demands of people in the fashion market (SIJUWOLA, 2014). For example, Burberry can
interact with the people through different online and offline channels by which all the details of
leather products can be shared effectively. In this area, social media is a big platform that aligns
organisational activities with customers' perceptions.
Brand Identity: This method can help the Burberry to present a distinct identity in the market
with the help of a slogan, logo, marketing materials, colour scheme, employees, etc. For
example, to develop a distinct identity in the fashion market, Burberry is required to approach an
innovative marketing strategy that assures quality products to the customers and effectively beat
the competition in the market.
Spirit of giving: Organisations that are socially and environmentally responsible are appreciated
by the world, as it develops a sense of trust and loyalty among them towards the organisation
(Peng and Chen, 2017). For example, Burberry can utilise this strategy by making charities from
their profitability that will create a good of the organisation portrait in the eyes of shoppers.

References
Books & Journals
 Akpoyomare, O.B., Adeosun, L.P.K. and Ganiyu, R.A., 2013. Approaches for generating
and evaluating product positioning strategy. International Journal of Business
Administration, 4(1), pp.46-52.
 Armstrong, G., Kotler, P., Buchwitz, L.A., Trifts, V. and Gaudet, D., 2015. Marketing: an
introduction.
 Peng, N. and Chen, A.H., 2017. Consumer Perspectives of Cultural Branding: The Case
of Burberry in Taiwan. In Advances in Chinese Brand Management (pp. 133-151).
Palgrave Macmillan, London.
 SIJUWOLA, F.O., 2014. A Comprehensive Analysis of Burberry’s Rebranding
Strategies; 1856-2014 (Doctoral dissertation, University of Bristol).

Online
 Ben Cohen, 2016 [Online] [Assessed through] <http://amaboston.org/blog/brand-
mapping-an-effective-and-efficient-tool-for-marketers/>, [Assessed on 12 march, 2019]
 Richard A. D’Aveni, 2007 [Online] [Assessed through] <
https://hbr.org/2007/11/mapping-your-competitive-position>, [Assessed on 12 march,
2019]
 Roslyn Frenz, 2017 [Online] [Assessed through] < https://bizfluent.com/info-8142091-
benefits-product-positioning.html>, [Assessed on 12 march, 2019]