Fashion Accessories Report: Burberry's Repositioning Strategy

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Fashion Accessories Report, UK

TABLE OF CONTENTS
Task..............................................................................................................................................................1
1. 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?.....................................1
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.........................................................................2
3. Provide two methods which brands such as Burberry might use to achieve repositioning.................3
References....................................................................................................................................................5

Task
1. 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?
The products always need improvement in the high competitive trend to attract the new customers and
retain the present ones. For this purpose, it is significant to have product positioning and repositioning to
create the wider customer base. Burberry is the organization who has made repositioning in its leader
bag segment to attract the generation that comes between 16-24 years i.e. the younger ones. The
customer engagement and involvement is needed at each step as it give direction to the organization and
aware for repositioning. The organization can also tempt the new segment that increases the value of the
services and products (Shakhshir, 2014). However, the requirement of repositioning arises to bring the
integration in the product demand and customer expectation.
The product price, quality and new market segment can be considered as the main factors to be taken in
consideration by the marketers to attract the common targeted audience. The market trends prevailing in
the market area can be determined through the repositioning and thereafter the changes can be executed
for achieving greater profitability. The positioning is also important as it increase the market share of
Burberry through optimizing the investment return from it. The quality standards are raised which raises
the customer base that ensures that the firm is showing sustainability and better growth (Phillips, 2016).
Thus, for rise in figures of sales, the market trend alignment and needed amount of promotional
activities shall be made necessary to manage its repositioning.
The maintenance of several factors such as customer retentions, price improvement, product quality
management and market identification are highly needed in the business. If effectiveness is ensured
from these factors then firm can raises the profits level, brand rise and increase in customer base. Further
repositioning gives the better authority to the Burberry for consider the market development approach in
the country like Japan and China where audience are influenced for the products of clothing and lather
handbags. The development opportunity will increase the profit and increase performance on the success
path (Kotler et.al. 2015). The content promotions with time management and cost can be resulted to the
Burberry.
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However, determining and measuring the success helps the organization to expand the business. In
nutshell, positioning helps in improving the business practices and on other side, repositioning integrates
the other product segment that measures scalability.
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
The brand positioning in the UK market will bring the positive influence by meeting the edge over
competition. The positioning can be conducted which benefits in product differentiation and competitors
identification. It promotes functionalities and brand enhancement for encouraging the products to the
next level. Hence, for identifying the position in the market parlance the application of marketing
communication had been done (Moon and Kamakura, 2017).
The brand positioning can also be modified through the process of positioning and repositioning. For
example: Burberry has to give high quality and pricing. Through this, organization can influence the
market and offers them good quality. On this concern, firm positioning will be changed to high prices
and quality maintenance has to be ensured. The branding majorly benefits to the firm that gives long
term customer retention. Good pricing can support the business to move on the next level and ensuring
suitable investment returns. On next side, quality management encourages the base of customer to help
in business.
In leather bags and accessories, Gucci is the brand leader. This organization is well known recognised
and has big reach to the customers in every country including UK and Japan (Armstrong et.al. 2018).
The positioning map of Burberry and Gucci shows both the firms are in big competition and falls nearby
only. Because of this reason, the comparison is important in terms of product and market factors. While
on other side, the organization also seems to have high competition with the Primark with respect to low
pricing and quality terms.
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Figure 1: Positioning map
3. Provide two methods which brands such as Burberry might use to achieve repositioning
Customer involvement: The involvement of the customer is to be considered for having repositioning
brand value. Through this method, the customer interaction takes place through the channels of social
media or any other platform. It will directly influence the experience of the customer better to give
higher results to Burberry. The channels offline and online can be managed for customer engagement as
information of the products and services are offered appropriately so that purchases can be resulted
more. With the social media or blogs support, the organization has to communicate with the customers
targeted through which customer base can be increased appropriately (Vargo and Lusch, 2014). For
example: Burberry on social media or official website can place the feedback form in which questions
related to the business is asked to the audience. It will show the organization improvement areas by
involving customers in brand repositioning. It supports in brand reposition to have high competitive
surroundings for raising the sales of the business and revenue that ultimately supports in giving long
term sustainability.
Brand identification: Burberry can consider the approach of brand identification by which they needed
to use various ways to have identification in the market. The firm requires gathering all the components
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of brand and then creating the brand in such way that majorly influence the customers. To reflect the
brand image positively in the customer eyes, the use of differentiation strategy and quality servicing is
important to meet competition and to attract the target market for the advance services provided by firm
(Albert and Merunka, 2015). The brand designing is also required to be conducted to have brand
sharpening appropriately. This approach will be effective for having high competitive environment
benefits by offering greater experience to the customers.
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References
Books and Journals
 Albert, N. and Merunka, D., 2015. Role of brand love in consumer brand relationships.
In Consumer Brand Relationships (pp. 15-30). Palgrave Macmillan, London.
 Armstrong, G.M., Kotler, P., Harker, M.J. and Brennan, R., 2018. Marketing: an introduction.
Pearson UK.
 Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson
Higher Education AU.
 Moon, S. and Kamakura, W.A., 2017. A picture is worth a thousand words: Translating product
reviews into a product positioning map. International Journal of Research in Marketing, 34(1),
pp.265-285.
 Phillips, A., 2016. How books are positioned in the market: Reading the cover. In Judging a
Book by its Cover (pp. 41-52). Routledge.
 Shakhshir, G., 2014. Positioning strategies development. The Annals Of The University Of
Oradea, 977, pp.416-437.
 Vargo, S.L. and Lusch, R.F., 2014. Evolving to a new dominant logic for marketing. In The
Service-Dominant Logic of Marketing (pp. 21-46). Routledge.
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