Burberry Brand Repositioning Strategy: A Case Study Analysis

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CASE STUDY ANALYSIS - REPORT (MERIT)
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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 by means of a positioning map, how the positioning of
the brand will change as a result of this process. In presenting map, also identify where on the
map the following brands would be located: Gucci and Primark................................................6
3. Provide two methods which brands such as Burberry might use to achieve repositioning.....8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
This report is based on the case study of Burberry which is founded in the year 1856. The
founder of this company is Thomas Burberry. The Aim of this report is the market positioning of
the company for making suitable recommendations. The first store was opened in Basingstoke;
England. The company started its business by manufacturing clothes, perfumes, hardwearing, t-
shirts, bags etc. This is a public limited company which deals in fashion products. This company
has expanded its business worldwide and is having a good brand value in the market. At present,
it is on 73rd ranked company worldwide as per the global brand report.
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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?
Market position means customer observation and perception of a brand or product with context
to the same product of another brand. It is a process of establishing a picture or uniqueness of a
brand.
A market position plays an important role in establishing an identity of the product in the market.
Like other brands such as mulberry, LVMH'S Celine and Givenchy. Burberry is also using the
tools of marketing for increasing the sales of the company. Burberry is adopting a market
strategy to enhance its product and to avoid any mistake which can have a negative impact on the
brand image of the company. This will help in understanding the needs of the customers and also
help in weighing the competitive pressure. With the help of brand positioning, there is an
increase in sales of the company by 10% in the year 2017. Company is focussing more on
handbags and small leather goods. Company is launching different other kind of bags like bridle
and buckle bags to increase the sales of the company. This helps in promoting loyalty and
goodwill. This also helps in winning the attention of customers and helps in facing competitors
(Okanga, 2018)
Market repositioning is processes of making a change in the product so that the company can
control the decline of sale and can overcome from such situations. Repositioning means trying to
change the customer's mind by making some alteration in the product. In the year 2017, the
company faces some issues in US market regarding the design of the product. The company
focuses on manufacturing the goods as per the demand of the people between 16 to 24years as
they are the young consumers of the product. This helps in better aligned to current market needs
and also helps in clearing the target market for the company. This also helps in attaining
potential media attention(Okanga, 2018).
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Company is focussing on manufacturing a more tenable product which is more accessible.
Company is also looking forward to increasing the sales of the company by launching monsoon
accessories.Company is also focussing on using digital research so that the company can expand
its business easily. Company is offering its products on different online website so that company
easily increase its sales (Gaustad, et. al., 2018)
The implication of this on the performance of the business is that it helps in increasing the sale of
the company by 10% and also helps in the revenue growth of the company. The company is also
using a different website to increase its sales and to expand its digital business(Gaustad, et. al.,
2018).
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2. 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 map, also identify where
on the map the following brands would be located: Gucci and Primark
Positioning helps in increasing the sales of the company and also help in creating good brand
value for the company among its competitors. The positioning of the brand is divided according
to the product, price, promotion and distribution of the products. By using the methods of
positioning, the company can change the sales and the revenue as compared to its revenue from
the last few years. As a result of this process, there will be an improvement in the quality of the
product and the ways of promotion of the product so that the company can easily increase its
sales(Malhotra and Bhattacharyya, 2018). Company is using different ways of distribution also
to increase the sales of the company.
Figure: 1
(Source: Author)
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High quality
High price
Low quality
Low price
Burberry
Gucci
Primark

In the above map, there is a comparison of the three companies on the basis of the quality and
price. There is a comparison of Burberry with Gucci and Primark. This image clearly shows that
Burberry is having a high price and high quality of products as compared to the other two
companies. Primark is having a high quality of product at a low price as compared to the other
two companies (Malhotra and Bhattacharyya, 2018)
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3. Provide two methods which brands such as Burberry might use to achieve repositioning.
Burberry is using market repositioning so that the company can capture the market and the
company can expand its business in different parts of the world. Repositioning helps in improved
sales of the company.
The two methods which the company will use for achieving repositioning are as follows:
Real repositioning: In this process the attribute of the product to match the customer processes.
In this process, the product is modified as per the needs and requirements of the customers, so
that the company can increase sales and can earn revenue. This process helps in the growth and
expansion of the company by way of changing the product as per the demand of customers (Li,
et. al., 2018)..
Psychological repositioning: In this, customer’s beliefs are altered so that the customer can
change their beliefs regarding the product and product. This technique helps in increasing the
sales of the company by changing the belief so that customers can have faith and trust towards
the product (Li, et. al., 2018).
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Conclusion
In this report, there is a discussion on the market positioning of Burberry. This company is using
positioning and repositioning for expanding its business and for finding the recommendation to
improve the sales of the company. Company is launching different products as per the needs and
requirements of the customers. They are manufacturing the goods as per market trends and as per
the demand of the product. Company is also allowing digital methods to increase the sales of the
company. With the help on e-tractions Company can easily expand its business anywhere in the
world. Company is having a lot of competitors in the market and the company is using different
methods of repositioning to capture the target market.
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References
 Gaustad, T., Samuelsen, B.M., Warlop, L. and Fitzsimons, G.J., 2018. The perils of self‐
brand connections: Consumer response to changes in brand meaning. Psychology &
Marketing, 35(11), pp.818-829.
 Li, Z., Zhao, X. and Liang, H., 2018, May. Automatic construction of radio maps by
crowdsourcing pdr traces for indoor positioning. In 2018 IEEE International Conference
on Communications (ICC) (pp. 1-6). IEEE.
 Malhotra, P. and Bhattacharyya, S., 2018, June. Large Scale Online Brand Networks to
Study Brand Effects. In Workshops at the Thirty-Second AAAI Conference on Artificial
Intelligence.
 Okanga, B., 2018. Using experiential marketing to leverage the small and medium-sized
enterprises’ brand repositioning and revitalisation. The Southern African Journal of
Entrepreneurship and Small Business Management, 10(1), pp.1-20.
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