Burberry Brand Repositioning Strategy: A Case Study Analysis

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BURBERRY
INDIVIDUAL ANALYSIS REPORT

Contents
INTRODUCTION...........................................................................................................................................2
BODY...........................................................................................................................................................3
POSITIONING OF BURBERRY....................................................................................................................3
REPOSITIONING OF BURBERRY................................................................................................................3
POSITIONING MAP OF BURBERRY, GUCCI AND PRIMARK.......................................................................4
METHODS USED TO ACHIEVE REPOSITIONING........................................................................................5
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................7
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INTRODUCTION
This report will show how positioning and repositioning method helps the company to increase
its market share. This case study will also identify several ways to increase positioning and
repositioning Burberry. The company is also known as British luxury fashion house and is mainly
famous for its high-end fashion clothes such as trench coats, accessories related to fashion,
fragrance and luxury cosmetics products (BPP, 2019). The report will also demonstrate the
means of positioning map and how it affects the company. The report will elaborate on two
methods which will help Burberry to achieve the repositioning in the market.
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BODY
One of the most important elements of a marketing plan is the positioning of the product. It is a
process used by the marketer to determine the best ways to communicate their products to
their target audience which is designed according to the need of the customer. Effective
product positioning will always ensure the marketer that the marketing message is resonating
with the target consumer of the company and will always compel the consumer to take action
(Lei and Moon, 2015).
POSITIONING OF BURBERRY
Burberry has already announced its plans to establish the company’s position firmly in the
luxury products. The company has sharpened its brand positioning techniques and also change
its approach of making the products. The use of London and Brit label helps the company to get
a wide range of pricing points than its luxury rivals such as Louis Vuitton or Gucci. The company
now understand the need for innovation and creativity in their luxury products (CPP, 2017). The
company is using effective product positioning in their market plan to weigh out competitive
pressures. The method also helps the company to identify how their product is different from
its competitor products. In the given case study it is already mentioned that Burberry is bringing
more and more innovation to its products and they are also focusing to increase their market
share in the UK (Richards, 2019).
REPOSITIONING OF BURBERRY
The term repositioning is defined as the changing of target markets or changing of differential
advantage. In product repositioning, the company redesign its existing product which makes
more appealing to its present target audience (Wang and Shaver, 2016). In this approach, the
company also targets various markets with the same type of product and try to find the need
for a similar kind of product. It is being evident from the given case study that the company
wants to focus more on its digital reach. So, for this Burberry is investing a lot of money on
developing its online website and also they are trying to make it a lot easier for their customer
to purchase their product online. Secondly, it can be seen from the report that the company is
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launching a more innovative product such as bridle and buckle bags to improve its brand
positioning.
If the move to improve its brand positioning will become successful for Burberry than it will
help the company to increase its market share and it will also increase the profit of the
company.
POSITIONING MAP OF BURBERRY, GUCCI AND PRIMARK
Figure 1: Positioning map of Burberry
Positioning maps are used by the companies to know about customer perception about their
product. The maps help the company to compare its price, quality and other benefits of the
products with their competitors (EC, 2019). The positioning maps help the marketer of the
company to make appropriate positioning strategy against its competitors. The diagram given
above explains the positioning map of Burberry and its two other competitors which is Gucci
and Primark. All the three companies present in the following positioning map deals in luxury
product. In the following map, it can be seen that Burberry is being placed between high quality
and high price mark which means the company that company provides only high-quality luxury
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product to the specific target market. On the other hand, it can be seen that Gucci also comes
in the same category as Burberry and Primark deals in low-quality low price product.
By carefully evaluating the positioning map of the Burberry it can be observed that the
company needs to make innovation in its products as the company is getting very stiff
competition from Gucci. It is also been observed in the case study that the company is trying to
increase its market share by bringing more and more novelty products.
METHODS USED TO ACHIEVE REPOSITIONING
The company is now trying to get the maximum market share in the luxury items industry. It is
also given in the case study also that the company is trying to make more and more profit in the
upcoming years. The company is using two methods to reposition itself in the market (Catrina,
2016).
Product development: The Burberry Company has again reinforced its British identity to
develop its new product offerings. The company are now focusing more on the British market
and they want to bring out more value from their product. The company is now planning to
launch its new products in the existing market. The company is now coming up with all new
range of accessories such as handbags, fragrances, scarfs and hats etc. The company is
designing the product according to the need of their customers. The new product launch by the
company is aimed at safeguarding its target market and maintains the brand identity and
uniqueness of the company (Stark, 2015).
Diversification: The Company is not just only focusing on product development but also now
the company is aiming to diversify its market as well as a product. The company is now aiming
to sell its new product in a new market with the help of acquisitions. Burberry is using services
like monogramming for the personalisation of its exclusive product range. The company is also
focussing on enhancing its online market through which the company will sell its runaway
collections and will also sell their fashion show product (Bowen et al., 2015).
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CONCLUSION
The given case study concluded that how by using the positioning and repositioning of the
products helps Burberry to regain its market share in the UK. The study also shows the position
of the Burberry and its two competitors Gucci and Primark in the positioning map. At last, it can
be seen that Burberry is trying to regain its market share in the UK and for doing so the
company is focusing more on its product development and diversification strategy.
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REFERENCES
BBP, 2019. Introduction about Burberry (Online) available at: https://www.burberryplc.com
(Accessed on 14 March, 2019).
Bowen, H.P., Baker, H.K. and Powell, G.E., 2015. Globalization and diversification strategy: A
managerial perspective. Scandinavian Journal of Management, 31(1), pp.25-39.
Catrina, A., 2016. Ansoff Matrix of Burberry (Online) available at:
https://culcferna113.wordpress.com (Accessed on 14 March, 2019).
CPP, 2017. Burberry product positioning. (Online) available at:
https://cpp-luxury.com/burberry-shifts-strategy-towards-ultra-luxury-positioning/ (Accessed on
13 March, 2019).
EC, 2019. Positioning map. (Online) available at:
https://www.enotes.com/homework-help/what-positioning-map-marketing-how-can-we-
create-137049 (Accessed on 13 March, 2019).
Gucci logo image (Online) available at: https://www.google.com/search?q=gucci+logo&rlz
(Accessed on 14 March, 2019).
Lei, N. and Moon, S.K., 2015. A Decision Support System for market-driven product positioning
and design. Decision Support Systems, 69, pp.82-91.
Primark logo image (Online) available at: https://www.google.com/search?rlz (Accessed on 14
March, 2019).
Richards, L., 2019. Product positioning (Online) available at: https://smallbusiness.chron.com
(Accessed on 13 March, 2019).
Stark, J., 2015. Product lifecycle management. In Product lifecycle management (Volume 1) (pp.
1-29). Springer, Cham.
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Wang, R.D. and Shaver, J.M., 2016. The multifaceted nature of competitive response:
Repositioning and new product launch as joint response to competition. Strategy Science, 1(3),
pp.148-162.
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