Marketing Report: Positioning and Repositioning of Burberry

This report provides an analysis of Burberry's marketing strategies, focusing on the principles of positioning and repositioning. It explores the importance of these concepts in creating a strong brand image and adapting to market changes. The report includes a discussion of positioning maps and how they are used to compare a brand's market position with its competitors, such as Gucci and Primark. It further examines methods for repositioning a product, including psychological and competitive positioning. The report concludes that effective positioning and repositioning, along with the use of positioning maps, are crucial for meeting customer satisfaction and maintaining a competitive edge. The analysis highlights how Burberry can leverage these strategies to enhance its market presence and cater to evolving consumer preferences, particularly in the luxury segment.

Principles
of
Marketing
Table of Contents

INTRODUCTION...........................................................................................................................1
1. Importance of positioning and repositioning..........................................................................1
2. Demonstration of change in process through positioning map...............................................1
3. Methods that can be used to achieve repositioning a product.................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4
.........................................................................................................................................................4

INTRODUCTION
Marketing principles are ideas that an organization implement for effective marketing
strategy. These form the basis for all promotional tools and strategies and can be used for goods
or services. Company chosen for this report is Burberry. Further, the report covers importance of
STP, positioning map and methods used to repositioning the brand.
1. Importance of positioning and repositioning
Positioning of a product is done to change the perception of customers in favour of a
particular brand or product. In this, an entity attempts to create image or identity that will be
recognised by huge number of people (Hassan and Craft, 2012). Importance could range from
capturing broader market, easy to manage various changes in market, customers' expectations are
fulfilled and satisfaction level gets increased, helps in promoting goodwill, customers become
loyal and many other benefits. Repositioning refers to making core changes in the existing
position of brand or product. There could be many reasons such as reverse declining
performance or for changes in business environment. Relevance of it can be to survive in
competition, helps in changing diminishing sales, to target the best audience who will buy the
products, it help keeping the brand image fresh for a long time and customers trust is built to a
good level.
The above mentioned strategies, if successful, may impact a business in a significant
way. Burberry can sustain for a long run, along with this, customers needs are catered which
create a positive market position, performance is improved by focusing on designs and many
more. Further, desired outcomes of positioning or repositioning will help Burberry in retaining
its employees, as improved performance raise work-force's morale which ultimately result in
high level of commitment to the entity.
2. Demonstration of change in process through positioning map
Positioning map is used by companies to draw a comparison of marketing position for
its own products or services (Maarit Jalkala and Keränen, 2014). It is also called perpetual maps.
This shows the current position in the market in order to enable firm make decisions regarding
the place where it is targetting to see its products. It is based on customers' perception in order to
get a competitive position by creating an unique identity. Burberry can use positioning map for
existing handbags and in introducing brands in the luxury segment. Further, its competitors such
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as Gucci and Primark would also be a part in this map in order to get the exact market standing
among its rivals.
Figure 1. Positioning Map
The above map shows that Gucci is brand offering high quality products high price.
However, Primark is also doing better than Burberry, as has been able to increase its sales to a
great extent by strategies followed by it. On the other hand, Burberry, offers low quality at high
price resulting in need to revamp whole marketing strategies and position its brand in the market.
3. Methods that can be used to achieve repositioning a product
Repositioning is an necessary to get the desired outcomes. This may be for any of the
reasons as mentioned above. It is the responsibility of brand manager to reposition brand in the
market for attracting customer (Brand repositioning techniques, 2019). Marketing principles
provide various methods which can be used for this. It can be used as a marketing strategy to
cater to needs of customer for increasing their satisfaction. Burberry is a strong brand in UK
which has seen a hike in sales between 2016 and 2017. further, it is planning to expand its brand
by entering into luxurious segment of handbags and other items. For this it will target high end
customers who are willing to buy such products. Furthermore, it will be maintaining a balance in
prices so that desired results can be achieved. The will offer new products to younger customers
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High Quality
Low PriceHigh Price
Low Quality
Gucci
Burberr
y
Primark

which will increase its sales. Hence, the two methods that Burberry and other brands can use for
repositioning are as follows:
 Psychological repositioning: Under this method, companies adopts strategies and
tactics to alter perception and beliefs of potential prospective customers regarding key
attributes of its products or services. It is usually used when buyers have negative
opinions about the quality. Burberry can use this method to reposition itself in the
market. The goods that it will be offering in luxurious segment will be of high quality so
that customers needs and expectations are met. When a product is introduced under
luxurious label, customers tend to believe that it is a good product. Hence, in this way,
the opinions of buyers can be changed.
 Competitive Positioning: A company uses this method to create a value of brand in the
market. It done to differentiate products from all competitors. Entity fix competitive
prices by providing better quality to increase market share (Sirianni and et. al., 2013).
Earning high profits and gaining competitive position are the prime reasons for using
this approach. The analysis done by Burberry about various strategies including pricing
strategy suggests that it should not out-price its products as done by Mulberry to attract
customers. High prices will make it lose its customers. Further, a dilution of features
that it has been providing in the existing product portfolio. Further, a good investment in
digital market will provide easy way for customers to place their products online. It will
add more appeal customers towards luxurious handbags.
CONCLUSION
From the above report, it has been concluded that positioning and repositioning are two
important marketing approaches through which a company can become more competitive by
creating a strong brand/product image. Further, effective methods together with positioning map
must be used in order to meet meet customers' satisfaction and assess competitors' position and
strategies, respectively.
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REFERENCES
Books and Journals:
Hassan, S.S. and Craft, S., 2012. Examining world market segmentation and brand positioning
strategies. Journal of Consumer marketing. 25(5). pp.344-356.
Maarit Jalkala, A. and Keränen, J., 2014. Brand positioning strategies for industrial firms
providing customer solutions. Journal of Business & Industrial Marketing. 29(3).
pp.253-264.
Sirianni and et. al., 2013. Branded service encounters: Strategically aligning employee behavior
with the brand positioning. Journal of Marketing. 77(6). pp.108-123.
Online:
Brand repositioning techniques. 2019. available through:
<http://manualofmarketing.blogspot.com/2017/09/brand-repositioning-
techniques.html>.
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