Burberry Company case analysis
Q.1
The positioning and reposition for marketers is a move that may impact the companies in the industry either positively or negatively. The market position refers to the perception of the consumers towards a product. Market position is, on the other hand, defined as the perception of the consumer in association with brands from other competitors (Gherghina, 2014). Repositioning refers to the process of altering the brand of a product and its place in the minds of the consumers. It is meant to change the perception or identity of a product in the minds of the consumers.
Positioning for marketers is relevant for various reasons. One of the ways through which positioning is relevant is to make the entire organization market-oriented. For the case of the companies which are planning to take the positioning will help them to make them market-oriented. Through product positioning, the marketers will be able to enhance the understanding as well as identification of the well-known features of products. Market positioning is also very important for coping with market changes. Through the positioning of a product, a marketer cancan constantly watch on the changes that might be experienced on the product. They can be able to identify challenges that are faced along the way. As a result, a manager or marketer is always active and alert o any change that a product in a stable state in a market may display (Gherghina, 2014).
Besides, the position enables a company to promote the c goodwill and loyalty of the consumers. Product positioning allows the company to reinforce its name as well as its brand in the market. Also, marketers are in an excellent position to come with promotional strategies to enhance the promotion of their products. Positioning enables companies to attract new customers. Some of the other benefits also include improving their ability and strength to sustain competition effectively (Gherghina, 2014). With proper positioning strategies, the brand of a company is secured. It hence provides them with an easy platform to introduce into the market alongside using the existing brand to improve the sales of the new products.
Repositioning also has its importance. For instance, it enhances the strength of the competitiveness of a company. Due to repositioning, the products of a company are renewed and enters the market in a new and unique way. Improved sales are also another advantage of the repositioning. The repositioning has also helped in attracting the media attention due to the uniqueness a product comes with it during the altering of the product perception in the minds of people. As a result, media attention helps in advertising and marketing of the products. With such strategies, there are implications for the performance of the business. In terms of sales, the sales of the business will improve due to repositioning (Zahid & Raja, 2014). There is also enhanced consumer satisfaction, which enhances a business’s customer base. Besides, the competitive edge of a company in the competition is attained, maintained, or even improved.
Low Quality
With the positioning of the brand, the process will change as the company’s brand will be transformed from a low price focused brand with quality products. This will be contributed by the various benefits of positioning that will be gained by the company as a result of such a step.
Q.4
Achieving successful repositioning is quite a challenging process. Hence it requires the integration of various factors as well as putting into consideration several factors. From the market analysis of the fashion and beauty industry, there are methods that Burberry can use to ensure their repositioning is achieved.
One of the methods is the brand relaunch method. From the research and market evaluation, it is realized that it comes to a point in time when a brand needs to relaunch. By relaunching, we refer to it be reworked or relaunched. This enables a brand to progress to another level. It is mostly applied for the brands that are showing poor performance in the industry.
Nevertheless, it is also applicable to the existing brands that are still performing well in markets. Although the strategy has been filled with a suggestion that is wrong to a rebrand or relaunching, from my more in-depth understanding, this is a good method. The reason behind doing a relaunch is because there is different evolution or transitioning stages that brands go through (Roy, 2020). As a result, it is justified for them to be restructured and repositioned, revitalized as well as be rejuvenated to promote their market base. Hence it helps in improving the market shares and profits of a company. For the case of Burberry, it can use this strategy as a way of promoting its brand that us performing poorly locally.
Moreover, brand rejuvenation is another method that can be used as well as brand proliferation. In brand rejuvenation, it considers what uniqueness the products bring to the consumers. Fr companies such as Burberry, they consider an added value to the product that will help to bring a new taste to the consumers. The main intention of such a strategy is to make a product look quite different from the way it appeared earlier on in the market (Zahid & Raja, 2014). Brand rejuvenating for companies such as Burberry is meant to add new taste or value to the existing product. However, it may also be a new product that comes into the market with a new value to style to meet specific consumer demands specially and differently. But in most cases, it used to improve the existing brand since repositioning is focused on the review of the existing brand.
For many companies such as Burberry, the rejuvenation process has helped to spur the growth of the grants, which were at risk of falling. Also, it has helped to maintain the healthy state of the existing brand. For the company’s brand that is still strong, it has been able to maintain such a level of success through brand rejuvenation. For the case of brand proliferation, it is meant to increase and bring new products into the market. As a result of the new products being added to the brand, they bring a new image due to their addiction to an existing brand. These are some of the strategies that have proved to be very effective for the marketing teams of various companies, including Burberry. Thee fashion and clothing industry have indeed been faced with competition. To sustain such a stiff competitive environment, such strategies such as repositioning are very necessary.
References
Gherghina, L. (2014). The importance of image and communication of a brand or trademark positioning. Analele Universitatii’Eftimie Murgu’Resita. Fascicola II. Studii Economice, 83-87.
Roy, A. (2020). Studying the positioning and repositioning of brands using multidimensional scaling. Journal of Education for Business, 95(1), 53-58.
Zahid, S., & Raja, N. S. (2014). Effect of rebranding and repositioning on brand equity considering brand loyalty as a mediating variable. IOSR Journal of Business and Management, 16(1), 58-63.