Burberry's Brand Repositioning: A Case Study on Strategic Marketing

This case study analyzes Burberry's strategic brand repositioning, focusing on its shift from an affordable fashion brand to a luxury brand within the UK market. The assignment explores the motivations behind this repositioning, including declining profits and increasing macro-environmental pressures, and its implications for existing and potential customers. It examines the company's current market position relative to competitors like Gucci and Primark, using perceptual maps to illustrate these relationships. The study then delves into two key methods for successful brand repositioning: customer engagement through digital media, emphasizing the use of social media platforms to promote a new brand image and gather customer feedback, and strategic alliances with premium brands to enhance brand reputation. The analysis incorporates references to academic sources to support the findings and strategies discussed.

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Case Study 1
Answer 1
The article clearly depicts that the company Burberry wants to grow in the target market by
repositioning its brand. The company is already placed in the fashion and clothing industry and
provide affordable accessories and clothes to people worldwide. However, with the decreasing
level of profits present in the industry, the company strategies to expand their level of profit in
the market by repositioning the brand from an affordable and fashionable brand to luxury brand
present in the market of UK (Villas-Boas 2018). The fact should be noted that an objective
initiated by the organization requires various changes in the business according to the activities
and programs. Resulting in which, the marketing of the business also changes, so according to
the change in the marketing plan, strategies and other objectives of the business it is important
for the management to relocate the brand in the right direction. If the marketing plan of the
business will not align to the strategic position of the company then the customers will get
confused and the brand will portray a wrong impression on them. Thus, it can be clearly
understood that it is important for a business to reposition then business depending upon the
market conditions and profitability as well (Zhang, Lin, and Newman 2016).
Further, looking at the actions of the company Burberry, it should be noted that the business
demanded repositioning of the brand because of declining profits of the company and increasing
macro-environmental pressure as well. It was important for the business to reposition the brand
for the marketer so as to depict a right image in the eyes of customers and earn revenue as well.
Repositioning can act as a good strategy for the company to expand its activities into new
diversities of the fashion market. Repositioning activity will provide a new brand identity to the
product that will attract more and more customers from the target segment which will
subsequently promote the brand in the international market as well (Lancaster, and Massingham
2017). Talking about the implications of the repositioning move of Burberry, it can be said that
the existing loyal customers of the company might feel detached from the functions of the
company. As the company is aiming to target a new segment of people, so the existing customers
might change their mind set about the products of the company. So, of this marketing activity
can negatively affect the interest of loyal customers of the company and make them shift towards
competitors as well (Insch, and Bowden 2016).

Case Study 2
Answer 2
Source: By Author
Fig. 1
Fig. 2
Primark
Gucci
Low Price High Price
Low
Quality
High Quality
Burberry
Primark

Case Study 3
The fact should be noted that the figure one explain the current position of the company Burberry
along with Gucci and Primark. This figure explains the current position of the company present
in the fashion industry. On the map where Burberry is positioned in the block of high quality and
high price product whereas Primark is positioned at low quality and low price product. And
finally Gucci is situated at the premium range segment. Further, the second figure explains the
position of Burberry before and after of repositioning phase occurred in the company (Blankson
2016.). The fact should be noted that earlier Burberry was situated in the range of low price
along with low specification and differentiation in the product. Later on, when the company
aimed to change the position of the brand, they repositioned Burberry at the exclusive price and
product orientation segment. Under this segment, the company targeted both middle and high
range customers present in the market and provided efficient quality and innovative products to
the customers (Gaustad, et. al., 2019).
It can also be said that earlier, the company Burberry used to compete with Primark and other
companies present in the same segment but soon after repositioning the brand the company
positioned itself between Primark and Gucci as the company do not provide products as high as
Gucci and do not serve as low as Primark products present in the market. The perpetual map
mentioned above clearly depicted the current position of all the three companies present in the
fashion industry (Robinson, and Hsieh 2016).
Answer 3
Two methods for repositioning the brand are discussed below:
Customer Engagement through Digital Media: digital media and customer engagement are two
most important tools that help a business in succeeding its activities in the target market. The
company aiming for repositioning their brand in the target market should appropriately make use
of digital media to grow. The company should initially circulate their new brand message in the
target market through digital media platforms. They should appropriately make use of social
media platforms like Facebook, Twitter, Instagram, YouTube etc. to promote their brand
message in the target market. In this way, the company appropriately reach to a wider segment
through digital media. Further, the company should also aim to engage the customers through
digital media. The business should seek suggestion and ask for the expectations of the customers

Case Study 4
from the new brand identified in the market. In this way, the company will easily interact with
the customers and promote the new image of the company in the target market using new and
innovative tools.
Alliance with Premium Brand: if a classic brand is aiming to reposition its brand into a premium
brand in the target market then they should go for forming alliance with premium brand so as to
grow and succeed in the market. By forming such alliance the business will be able to
successfully make use of the brand reputation of a premium brand which will subsequently help
them to upraise their brand reputation as well (Massara, Porcheddu, and Melara 2018). So, it
should be noted that if a business will successfully form alliance with another organization then
they will successfully share their reputation and resources to grow and remake their image in the
target market. This will subsequently help the company to grow without taking enough risks and
acquiring a backup as well.

Case Study 5
References
Blankson, C., 2016. Positioning a brand. The Routledge companion to contemporary brand
management, pp.164-185.
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.
Insch, A. and Bowden, B., 2016. Possibilities and limits of brand repositioning for a second-
ranked city: The case of Brisbane, Australia's “New World City”, 1979–2013. Cities, 56, pp.47-
54.
Lancaster, G. and Massingham, L., 2017. Markets and customers: market boundaries; target
marketing. In Essentials of Marketing Management (pp. 70-101). Routledge.
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.
Robinson, P.K. and Hsieh, L., 2016. Reshoring: a strategic renewal of luxury clothing supply
chains. Operations Management Research, 9(3-4), pp.89-101.
Villas-Boas, J.M., 2018. A Dynamic Model of Repositioning. Marketing Science, 37(2), pp.279-
293.
Zhang, C., Lin, Y.H. and Newman, D.G., 2016. Investigating the Effectiveness of Repositioning
Strategies: The Customers’ Perspective. Journal of Travel & Tourism Marketing, 33(9),
pp.1235-1250.