Running head: BURBERRY`S POSITIONING AND REPOSITIONING 1

Burberry`s Positioning and Repositioning

Name

Institution
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Burberry`s positioning and repositioning

Introduction

Majority of the customers in a competitive market buy specific products based on their

perception towards the product, for instance, if they perceive the products as most innovative,

luxurious, and durable. The ability to make a product occupy a distinct place in the minds of

customers in relation to competitors offering the same products or services is called positioning

(Fuchs & Diamantopoulos, 2010). Companies can associate their brand with competitive pricing,

easy to use, and high beneficial value as compared to competitors` to create more appeal to

customers. Jalkala and Keränen (2014) report that a company should first identify the uniqueness

of its products or services identify its current market position, analyze the competitor`s

positioning, and finally develop its positioning strategy. This paper will examine the importance

of positioning and repositioning to Burberry, demonstrate using positioning map how the

positioning of Burberry will change as a result of going up-market, and provide methods in

which Burberry`s brands can use to achieve positioning.

Burberry Group Plc.

Burberry is a luxury fashion house that in specializes in development and distribution of

accessories, cosmetics, clothing, perfumes, and is located in London, England. The company

which was founded in 1856, initially focused on developing outwears but later shifted to

developing high fashion products. Burberry Group Plc. has stores in over 50 countries and its

current Chief Executive Officer is Marco Gobbetti (Burberry, 2017).

Importance of positioning and repositioning

Positioning and repositioning are critical to any business. According to Fuchs and

Diamantopoulos, positioning and repositioning assist the marketers in promoting customer

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goodwill and loyalty. Positioning popularizes products and brands. Many customers will want to

associate with the famous brand and unique brand in the market, therefore, promoting their

dedication and goodwill (Akpoyomare et al., 2013). Positioning and repositioning also help the

marketers to design promotional strategy. Without proper positioning, marketers will craft a plan

that does not appeal to many customers hence lose the market share ( Akpoyomare et al., 2013).

Product positioning helps the marketers to illustrate the benefits of a company`s product

compared to the products produced by the competitors. In doing this, for instance, by advertising,

the marketers can win the interests and attention of customers (Fuchs & Diamantopoulos, 2010).

Positioning and repositioning also help marketers to introduce a new product successfully. The

marketers can position the superior benefits of the product compared to the competitors` for

instance they can promote the durability, safety, and low price enabling the product to penetrate

the market easily (Fuchs & Diamantopoulos, 2010). Marketers can cope with new market

changes through positioning and repositioning. When there are new developments in the market

in terms of demand marketers can identify the unique features or recommend the development of

new features in the product to cope with the dynamic market ( Akpoyomare et al., 2013).

Burberry marketers, just like the other marketers, will reap the above benefits if they strategically

position their brand.

If the Burberry`s strategy is to go up-market is succeeds, the business should experience

the following benefits. Business sales and revenue will increase. When the potential customers

are attracted to a product due to its uniqueness, they are likely to purchase more hence increasing

the revenue (Fuchs & Diamantopoulos, 2010). The business will also have a soaring customer

base. When a company appeals to many customers on the benefit of their product, customers will

consider the item all the time in their purchasing plans. Burberry just like the other businesses,
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will have a growth surge if it effectively positions itself. The customer base will increase hence

sales and therefore leading to business growth and realizations of its goals and objectives.

Least Luxury

A positioning map is a representation of how customers perceive one company`s product

compared to other similar products. Gucci products have always been regarded as the most

luxurious as compared to Burberry. If Burberry increases the price of its products, there will be a

general perception that its quality has improved and therefore, its products are more luxurious.

However, it will be slightly below Gucci in public opinion since Gucci is miles away in the

public perception. Primark will remain as least luxurious compared to Gucci and Burberry, and

its price will be relatively lower. Zara will continue to be relatively expensive compared to

Primark due to the customers` perception.

Brand Positioning Methods

There are numerous methods in which brands can achieve positioning. According to

Jalkala and Keränen, companies can showcase their expertise, focus on competitive advantage,

segment markets, and use unique and value prepositions as methods to achieve positioning. For

brands like Burberry, they can handle high pricing, restricted distribution, and repositioning

through competitive advantage to make positioning and outperform competitors. In the high

pricing strategy, Burberry can advertise its products as having unique and superior benefits as

compared to the products offered by the other competitors to create the perception in the mind of

the customers. The company can then price its products comparatively higher than the customers

will buy since the majority of the customers perceive expensive as of high quality (Jalkala &

Keränen, 2014). By using competitive comparisons, the companies can how their products differ

from the others offered by competitors. In the case of Burberry, it can show how its handbags are
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strong and durable. This will justify any price that the company might charge for any product.

However, the company should first conduct a practical market analysis to determine what the

customers perceive as the qualities or weaknesses of the competitors` products or that it can

capitalize on the perceived shortcomings of the competitors` products.

Conclusion

Marketing position and repositioning are significant to any organization. It helps the

marketers to introduce new products successfully by showing customers the benefits of products

as compared to competitors`, helps markets and organizations to demonstrate the benefits of a

product, and assists businesses to cope with change in the market. Therefore, companies should

craft prepositioning strategy statements to influence customers` perception of the company`s

products or services.
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References

Akpoyomare, O. B., Adeosun, L. P. K., & Ganiyu, R. A. (2013). Approaches for generating and

evaluating product positioning strategy. International Journal of Business

Administration, 4(1), 46.

BURBERRY, S. (2017). MARKETING SUCCESS.

Fuchs, C., & Diamantopoulos, A. (2010). Evaluating the effectiveness of brand‐positioning

strategies from a consumer perspective. European Journal of Marketing.

Jalkala, A. M., & Keränen, J. (2014). Brand positioning strategies for industrial firms providing

customer solutions. Journal of Business & Industrial Marketing.