Individual Case Study Analysis: Burberry's Marketing Strategy

Verified

Added on  2023/01/10

|8
|1363
|25
Case Study
AI Summary
This case study analyzes Burberry's marketing strategies, focusing on brand positioning and repositioning in the luxury market. The analysis explores the company's shift towards ultra-luxury positioning, its competitive landscape, and the use of a positioning map to illustrate customer perceptions. It examines the impact of repositioning on sales and profitability, including customer retention. The study further delves into methods of brand repositioning, such as brand portfolio rationalization, brand rejuvenation, and changes in distribution and channel strategy. The document also provides a brief comparison with competitors like Gucci and Primark, offering insights into Burberry's strategic choices and their implications.
Document Page
Running head: INDIVIDUAL CASE STUDY ANALYSIS
Individual case study analysis
Name of the Student
Name of the University
Author Note
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
INDIVIDUAL CASE STUDY ANALYSIS
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
Answer to question 3:.................................................................................................................2
Document Page
INDIVIDUAL CASE STUDY ANALYSIS
Answer to question 1:
One of the important tools for effective strategic marketing plan is positioning that is
intended to create an image of the product in the mind of customers so that they are able to
differentiate from other products by highlight the differentiating features. Positioning helps
marketers in maintaining long-term sustainability and are able to analyze the future scenario
of markets as such strategy is relevant to the variants of products. Using the strategy of
positioning, company is able to tailor its product so that it stands out from the products of
competitors. Burberry is the company that has positioned itself as luxury brand and has
developed a design with innovation in place and distinctive artisanship. It has positioned
itself as a brand that carries a rich heritage of creativity and culture of Britain. Marketers
using this strategy are able to determine how their offerings create differentiation to
customers compared to their competitors. Positioning is a part of effective marketing plan
that conveys why the customer should prefer their products to the products of competitors
(Blankson 2016).
Repositioning on other hand is an effort taken by organization to move the product to
create a different image in the mind of customers. It helps in shifting the perception of market
in a manner that is intended to improve the demand of products by increasing its appeal. This
particular strategy helps the product to compete more effectively in the target-segmented
markets. Marketers or companies using the repositioning strategy helps the management to
justify the pricing strategy used for marketing their products. Repositioning of the brand is
done in such a way that the factors of class and quality are showcased properly to the target
customers (Massara et al. 2018). In addition to this, strong repositioning helps in strategically
and tactfully highlighting the core values, unique selling propositions, attributes and strength
Document Page
INDIVIDUAL CASE STUDY ANALYSIS
of the products. All such features help marketers to enjoy the facets of competitive advantage
that results in achievement of the respective objectives.
In the recent years in the light of slow down in the profits, Burberry has adopted the strategy
of shifting towards ultra luxury positioning and thereby changing their approach towards to
communication, product and experience of customers. Such strategy helped the company in
competing against some of the well-established luxury brands. Adoption of repositioning
strategy resulted in increasing the total volume of sales. There were further rise in the
adjusted operating margin and adjusted operating profit (burberryplc.com 2019).
If the strategy of positioning of company is successful, it has a significance influence
on the profitability and long-term performance. Such strategy has implication in terms of the
customer retention, as a success strategy would usually satisfy the customers with the
innovative and high quality products and thereby increasing the profitability and sales.
Answer to question 2:
Positioning map is the diagrammatic illustration of the perception of customers about
the offerings of business based on quality, price and other benefits of the products. The
repositioning strategy of Burberry has been done by scaling back sales to wholesaler and
lower end retailers and extending its price architecture. In order to attract new high-end
customers, the brand has also created new accessories and luxury leather goods (Gaustad et
al. 2018).
The location of the competitive brands of Burberry can be done by using positioning
map.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
High price
Low quality
High quality
Gucci
Burberry
Primark
INDIVIDUAL CASE STUDY ANALYSIS
Position map of Burberry:
(Source: created by author)
The sales revenue of Gucci has increased as they are doing lot more in the way of
promotion and have recently launched the museo. Such increase in sales has also been driven
by renewing of brand appeal, which was successful in attracting younger customers with new
styles (Iyer et al. 2018). In addition to this, the new aesthetic has replaced older style of
products in all categories. Therefore, it can be inferred that Gucci can be considered a bug
threat to Burberry. Primark on other hand do not pose threat to Burberry and it is situated at
low level in the positioning map.
Low price
Document Page
INDIVIDUAL CASE STUDY ANALYSIS
Answer to question 3:
Some of the methods of brand repositioning that can be used by luxury brands such as
Burberry include rationalization of brand portfolio, brand rejuvenation and changing the
distribution and channel strategy.
Brand portfolio rationalization- The line of products become longer with the
growth in business as more and more brands are accumulated under it. After certain point of
time, it might be recognized by the company that their efforts and resources are constrained.
Shedding some of the brands would help the company in having manageable portfolios of
brand (Gaustad et al. 2019). It would help company in making the other brands stronger by
concentrating on the inputs.
Brand rejuvenation- This method of repositioning helps in enhancing the overall
appeal of the product by adding attributes and new value to the existing products. The
intention of using this strategy is to refocus the customer attention on the existing brand. The
company because of increasing competition that requires refinement and reformulation of the
products from time to time might adopt such strategy (Nobbs et al. 2015).
Changing the channel and strategy of distribution and revamping of marketing mix-
The brand can be relaunched by changing the distribution and channel strategy. It is
certainly possible that the distribution channel will be ineffective due to their ineffective
marketing and trade margins strategy. Furthermore, the luxury brand can also relaunch its
brand that helps in revamping every elements of marketing mix comprising of product
ingredients, brand name, pricing so that a new refined concept is brought due to new price,
promotion and place (Steenkamp 2017).
Document Page
INDIVIDUAL CASE STUDY ANALYSIS
References list:
Blankson, C., 2016. Positioning a brand. The Routledge companion to contemporary brand
management, pp.164-185.
burberry Corporate Website., 2017. Burberry to establish position firmly in luxury and
deliver sustainable long-term value. [online] Available at:
https://www.burberryplc.com/en/news-and-media/press-releases/financial/2017/burberry-to-
establish-position-firmly-in-luxury-and-deliver-sust.html [Accessed 30 Mar. 2019].
Cpp-luxury.com., 2019. Burberry shifts strategy towards ultra-luxury positioning. [online]
Available at: https://cpp-luxury.com/burberry-shifts-strategy-towards-ultra-luxury-
positioning/ [Accessed 30 Mar. 2019].
Gaustad, T., Samuelsen, B.M., Warlop, L. and Fitzsimons, G.J., 2019. Too much of a good
thing? Consumer response to strategic changes in brand image. International Journal of
Research in Marketing.
Iyer, P., Davari, A., Zolfagharian, M. and Paswan, A., 2018. Market orientation, positioning
strategy and brand performance. Industrial Marketing Management.
Massara, F., Porcheddu, D. and Melara, R.D., 2018. Luxury brands pursuing lifestyle
positioning: effects on willingness to pay. Journal of Brand Management, pp.1-13.
Nobbs, K., Foong, K.M. and Baker, J., 2015. An exploration of fashion visual merchandising
and its role as a brand positioning device. Journal of Global Fashion Marketing, 6(1), pp.4-
19.
Steenkamp, J.B., 2017. Customer Propositions for Global Brands. In Global Brand
Strategy (pp. 45-73). Palgrave Macmillan, London.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
INDIVIDUAL CASE STUDY ANALYSIS
chevron_up_icon
1 out of 8
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]