Burberry's Repositioning Strategy: A Marketing Report

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Principles of marketing
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Table of Contents
Assignment 2...................................................................................................................................3
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?.........................................................3
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................................................4
3. Provide two methods which brands such as Burberry might use to achieve repositioning.....6
Conclusion...................................................................................................................................6
Reference List..................................................................................................................................7
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Assignment 2
Introduction
Positioning and repositioning are important aspects of the marketing plan that are associated with
ensuring that brands like Burberry are able to understand their consumer segment and ensure
that there is effective use of marketing communication in order to move forward successfully
in the business . Burberry is a name in the clothing and accessory segment and it has a rich
history in catering to the demand and earning windfall profit.
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?
Positioning and repositioning are important aspects of marketing. Product positioning is related
to the entire process of communication that helps to communicate the various attributes of the
product in an excellent way so that the target customer is attracted to the product (Wirtz and
Lovelock, 2017). Repositioning aims at changing market perceptions by making changes in the
brand’s marketing mix. Repositioning strategy is taken up in order to make the brand more
competitive (Bhaduri, 2019).
The aim of the up scaling of the brand as a reflection of the strategy deployed by Mulberry has
been the initial strategy. In 2017, the products under Burberry that had done well are handbags
and small leather goods. There has been an increase of 16% in full priced bags in the new
products launched that are the Bridle and Buckle bags. The positioning strategy of Burberry is
associated with high quality; high price in the market. The positioning and the repositioning
strategies are all linked to catering to the importance of aligning the business objectives with the
market-oriented strategy. The brand value established has been of a luxury-based segment.
Burberry has been engaged with the communication strategy in the context of projecting a
prestige-oriented image of the brand (Corporate Website. 2019). However, in the changing times
there is the need of changing the positioning strategy in order to ensure that the brand is able to
reap benefits in the changing market dynamics. There is the need to ensure that repositioning of
the brand is done from time to time. Change in the market conditions are associated with brands
changing the way that they communicate to the potential audience, so that there is sustained
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growth. The repositioning strategy is associated with the concept of coping with the changing
times and ensuring that there is the need to adapt to changing consumer behavioural dynamics
(Armstrong et al., 2018). The repositioning strategy at the onset was associated with targeting
the high-end customers and through premium positioning the target of the firm is to ensure that
they have advantage that is more competitive in the Asia markets where owning luxury goods
have become the status symbol. The repositioning strategy has to focus on the various aspects of
competitive advantage as well. The implications of high-end priced products will lead to
ensuring that there will be revenue earned from a niche segment and there will be loss of the
segment of customers from the young age group as customers.
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
A positioning map is an effective tool that ensures that there is a visual representation of the
positioning strategy of the product based on price and quality (Chernev, 2018). Various
competitive factors that are considered and in order to stay competitive in the market there is the
need to re position the product communication as and when required. In the case of the initial
positioning map representing strategy, it is important that the visual representation is as follows:
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High Price
Low Price
Low
Quality
High
Quality
Figure 1: Before Re-positioning
(Source: Created by the learner)
The positioning map represents the earlier strategy of Burberry and its comparative relation with
Primark and Gucci. Based on the case study Burberry can attempt to go for the high-end niche
segments. The case study further reveals that Mulberry had attempted this and the entire strategic
positioning has misfired. There is the segment of the 16 to 24 old customers who are into
accessories and Burberry may entirely loose this segment if it aims at reaping revenue through
high price range. Brands like Prada and Michael Kors have done the same successfully.
However, in order to ensure that Burberry caters to the 16 to 24 age group segment, it needs to
reconsider its positioning strategy. The repositioning map is as follows:
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High Price
Low Price
Low
Quality
High
Quality
Figure 2: After Repositioning
(Source: Created by the learner)
The impact of the repositioning strategy will ensure that the company will be able to cater o the
need of the young customer segment and thus have much larger business volume than catering to
the niche segment only. As the repositioning strategy, the company needs to try to tap the
segment of 16 to 24 year olds that are linked to the ensuring that they are able to attract the
young adults.
3. Provide two methods which brands such as Burberry might use to achieve repositioning
Repositioning is essential in order to ensure that there is communication by the company
regarding the brand attributes. The most effective method associated with repositioning is
associated with ensuring that the perception of the customer can be changed with this objective
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that there will be a more young and vibrant range that shall be brought forward in order to
attract the age segment of 16 to 24 years. There is the need to ensure that there are low priced
products of the brand that are also available. The purchasing power of the largest growing
segment has to be considered by the company and accordingly shape the positioning strategy.
Effective brand communication is crucial and there is the need to align brand communication to
the new inclusion oriented brand image.
The other method that can be used is that there is the need to make positioning a product range
based game. There can be different product ranges that will be targeted at different target
segment and this will ensure that there will be effective handling of the different products and
there will be no loss of any segment of consumers. Serving multiple segments through effective
pricing and positioning strategies is crucial to the business.
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Conclusion
It can be concluded that through effective positioning strategies it is essential that solutions to
key problems of catering to the customer segment be met. The product positioning and its
attributes are associated with the fact that it helps in ensuring that challenges can be met in a
positive manner and ensure that there is the ability to earn revenue and help in the growth of
the business.
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Reference List
Armstrong, G.M., Kotler, P., Harker, M.J. and Brennan, R., 2018. Marketing: an introduction.
Pearson UK.
Bhaduri, S.K., 2019. Marketing Management.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Corporate Website. (2019). Strategy. [online] Available at:
https://www.burberryplc.com/en/company/strategy.html [Accessed 2 Jul. 2019].
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World Scientific.
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