Marketing Report: Burberry's Repositioning Strategy

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Marketing

Table of Contents
Introduction...................................................................................................................... 3
Task 1...............................................................................................................................4
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?....4
2. In the case of Burberry, demonstrate using a positioning map, how the positioning
of the brand will change as a result of this process. In presenting map, also identify
on the map the following brands would be located: Gucci and Primark........................5
3. Provide two methods which brands such as Burberry might use to achieve
repositioning................................................................................................................. 6
Conclusion....................................................................................................................... 7

Introduction
Brands in the market are producing significant competition which is resulting in lowering
image of brands. Various practices are used for overcoming this and positioning and
repositioning are such practices. Importance of these practices and their influence is
explained in the following report taking Burberry as an example. Burberry is performing
well in handbags and leather products but in luxury products, the entity is not achieving
profit. Thus, repositioning of these luxury brands is elaborated. Positioning map is
highlighted in the report and its impact on the brand is also explained. Two methods are
referred to in the last part of the report that Sainsbury should use for repositioning of the
brand.

Task 1
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?
For making an image of the product in market various practices are adopted by firms.
Positioning is such a practice which is used for building the image of a brand or product
in the market. The survey is conducted to analyze the condition of the product in the
market (Shakhshir, 2014). After this survey, the image of the product is determined by
the firm. The positioning of the product in the market is conducted by this practice. 37%
of Burberrys revenue is collected by its accessories. Burberry when practised
positioning, they observed an increase of 10% in terms of revenue and this increase
has been achieved due to handbags and various leather products they manufacture in
their industry. At the end of March, this increase due to leather products reached up to
16%.
During this positioning, Burberry observed that the value of their luxury products is
decreasing. Thus they decided to make repositioning of their luxury brands.
Repositioning is a practice in which changes are done according to the demand of
customers and the market. This practice is beneficial as it fulfils the demand of
customers and makes the firm achieve suitable outcomes (Siddiqui and Fahim, 2014).
Importance of positioning and repositioning for marketers are:
 It makes the strong competitive position of the organization in the market.
Burberry can achieve this because the company is efficient in making suitable
changes required. Innovative changes can be applied by the firm from this
practice.

 Supply of products is increased by performing positioning. This occurs because
changes are applied according to the demand of customers thus, customers are
attracted towards these changes and demand is increased.
 The market assessment performed while positioning helps in assessing the
condition of the market. This condition of the market is important to determine the
changes required for the strengthening of the brand.
If the move by Sainsbury became successful then it will create opportunities for growth
of the firm. Customers for the firm will be increased and the image of the company in
the market became strong. The practice is so effective if successful and can lead to an
increase in profits and revenue of the company (Lei and Moon, 2015). Hence, it is
important to practice these moves efficiently.

2. In the case of Burberry, demonstrate using a positioning map, how the
positioning of the brand will change as a result of this process. In presenting
map, also identify on the map the following brands would be located: Gucci
and Primark.
Condition of product or brand in the market can be determined by positioning map. For
determining the image of the product in the market, this map can be very effective
(Wang and Shaver, 2014). Positioning will be high if brands image is strong in the
marker and firm is achieving suitable outcomes due to it. The positioning will be low if
the brand is giving suitable outcomes for the firm. The brand is influenced due to this as
the image is affected by the brand due to positioning maps.
Low
 Gucci
High
High
Primark
Low
Low
High
High
Low
Positioning Map

Positioning map presenting Primark and Gucci is located on the positioning map given
above.

3. Provide two methods which brands such as Burberry might use to achieve
repositioning.
For repositioning of the product, the methods that can be used by Burberry to achieve
outcomes are:
Making Quality of the Products: The quality of the product can be enhanced by
Burberry for achieving outcomes. The main demand of customers for any product is to
have a good quality of the products (Siddiqui and Fahim, 2014). If quality is increased
then significant customers can be attracted towards the firm. They should make their
luxury brands long-lasting and more attractive. Their staff members should contribute to
this and the market analysis should be performed for achieving this.
Recognising Product: Burberry should hold, market assessment and the changes in
the brand should be identified by analyzing the needs of the customer. If the products
are manufactured according to the demand of customers then they will be satisfied by
the firm and company can achieve outcomes due to it. They should make changes in
the quality of their luxury bags after determining the demand of market and customers.
The survey should be done properly for achieving this and changes should be made
very carefully based on the survey only. Changes, if not required, should not be
practised (Latif, et. al., 2016).

Conclusion
For making business stable in the market and to enhance the image of the brand,
positioning and repositioning are the practices that should be practised. A brand can be
more productive for the company if this practice is performed effectively. For
determining brands image map is used which is known as positioning mapping. This
map helps in analyzing the image of the brand in the market. The position is low if the
brand is not producing significant outputs and if the brand is making sufficient outcomes
then it will be placed high in the positioning map. For effective repositioning of Burberry,
the repositioning methods which have been used are, making quality products for
customers and regular assessment of market and brand.

References
 Latif, A., Sibghatullah, A. and Siddiqui, K., 2016. Repositioning Horlicks in
Pakistan. Journal of Marketing Management and Consumer Behavior, 1(2),
pp.44-53.
 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.
 Shakhshir, G., 2014. Positioning strategies development. The Annals Of The
University Of Oradea, 977, pp.416-437.
 Siddiqui, K. and Fahim, S.M., 2014. Repositioning of DawnNews Channel to
Mass Market. Rev. Integr. Bus. Econ. Res, 3(1).
 Wang, R.D. and Shaver, J.M., 2014. Competition‐driven repositioning. Strategic
Management Journal, 35(11), pp.1585-1604.