1.

Relevance and importance of positioning and repositioning for mar-

keters and implications for the performance of the business if such
a move is successful.

Positioning is one of the most important and challenging aspects of marketing. It aims to make
a brand distinctive and differentiate it in relation with competing brands in the mind of targeted
customer (Baines, Fill, and Rosengren, 2017). It is important and difficult marketing tactic as
consumers are constantly exposed to thousands of marketing messages per day. The key
challenge is to ensure that your brand or product occupies a meaningful and distinct place in
the customers’ mind and when they have a need, your brand is the first one that comes in mind
to satisfy that need. An efficient positioning strategy considers the competitors’ strengths and
weaknesses in order to identify a differential advantage and use it to satisfy customers’ need
(Fahy and Jobber, 2015). Failure to gain a position in consumer’s mind increases the probability
of failure of a business. Company needs to communicate in a way that resonate with the
customer and deliver the promised benefits or value through a product to keep a sustainable
position and competitive advantage. Marketers need to identify important tangible or intangible
attributes for consumers. Companies like Burberry compete on quality and intangible attributes
like reputation, prestige and brand value to build brand equity and to shape customers attitude
and decision-making behavior. Burberry products are associated with elite community, high
social status or with celebrities which are often seen to wear Burberry’s accessories or apparel
(Burberry, 2017).

Repositioning is a major change in positioning of a brand’s status in the marketplace.

Repositioning is a sort of positioning but with a different starting point and it is more complex
and difficult process as customers have already built an emotional connection with a brand. Its
main focus is how to alter established positioning and market perceptions. To successfully
implement new position major costs, efforts and investments are required to change targeted
market, brand vision and overall perception. Repositioning means new strategy and changed
marketing mix. Product, place, price and promotion should match the new segment of
customers. Burberry’s aim is to go more up-market in the luxury sector. This involves a new
approach to rich new audience and change their attitudes toward brand’s offer. Company needs
to add more value to product and to communicate about this value with targeted customers in
a distinctive manner to resonate with their wants and needs. This will change customer
perception and their engagement helping Burberry to establish a firm position in luxury
market and gain competitive advantage. A successful repositioning needs time and a consistent
strategy. Once done, it will support a revenue growth and higher margins as luxury brands
generate high margins and cash flows and are more resistant to downturns.

2. Burberry brand Positioning before and after repositioning

High price

Low quality
High quality

Low price

Figure 1: Burberry’s positioning before and after a successful repositioning in relation with
Gucci and Primark.
The above positioning map represents Burberry’s positioning before and after a successful
repositioning strategy. This will be reflected in increased perception of quality and higher
prices paid by customers for company’s offer.
 3. Methods to achieve repositioning

Four generic strategies for repositioning can be used by marketers as sown in the above
figure. Only two of them will be discussed below being appropriate for brands like Bur-
berry looking to move upmarket.

Product

Same Different

Image Product
repositioning repositioning
Same
Target market

Intangible Tangible
repositioning repositioning

Different

Figure 2: Repositioning strategies (Fahy and Jobber, 2015)

Intangible repositioning

This marketing strategy involves targeting a new segment of customers with the same product
or service (Jobber and Ellis-Chadwick, 2012). The company is targeting a new segment of
clients that have the same needs as the one they are serving. It involves changes in promotion
and communication mix in order to alter the perception about a brand or product value to appeal
to the new market segment. It could be done through new advertising, association with a
celebrity or highlighting some benefic outcomes of the product. Another possibility is to change
packaging or to revamp distribution channels and make the product available for more
consumers.
An good example for intangible repositioning is Old Spice. It was seen as a dull and stagnant
brand for old generations. A strong, funny advertising campaign using young athletic men
helped a traditional product appeal to a younger segment of customers even if physical
characteristics and price of it have not changed.

Tangible repositioning

It is a marketing strategy when both product and targeted segment are changed (Jobber and
Ellis-Chadwick, 2012). This marketing strategy involves development of a new product to
satisfy the needs of new segment of customers.

Tangible repositioning strategy must be supported by a consistent marketing mix. This requires
a close research of the market needs, trends and assessment of the company strength and
advantages in relation with competing brands in the new market. It will help to identify a niche
in the market where customers are ready to pay higher prices for expertise (Riley, 2018). To go
upmarket, a brand like Burberry needs to improve quality of the product, the way they present
themselves and communicate with customers, invest in design and advertising, enlarge product
range and improve distribution channels. A new brand appeal, reworked products and no
promotions and discounts policy will add value in the eyes of customers and will position a
brand higher in their minds giving them some extra reasons to buy and engage with company.
An example for tangible repositioning is Apple, in 1990s company was suffering from low
sales and decreased consumer interest, until Steve Jobs took over the company (DeMers, 2016).
With minimalist, modern and innovative products and some marketing and advertising
campaigns Apple attracted a new customer base, and still is a top player in tech industry.
References

Baines, P., Fill, C. and Rosengren, S. (2017). Marketing. 4th ed. Oxford University Press.

Burberry, (2017) BURBERRY TO ESTABLISH POSITION FIRMLY IN LUXURY AND

DELIVER SUSTAINABLE LONG-TERM VALUE. Available at:
https://www.burberryplc.com/en/news-and-media/press-releases/financial/2017/burberry-to-
establish-position-firmly-in-luxury-and-deliver-sust.html [Accessed on 21.03.2019].

DeMers, J. (2016). 5 Examples Of Rebranding Done Right. Forbes. Available at:

https://www.forbes.com/sites/jaysondemers/2016/07/07/5-examples-of-rebranding-done-
right/#343bf4b2385a [Accessed 22 Mar. 2019].

Fahy, J. and Jobber, D., (2015) Foundations of marketing. McGraw-Hill, London.

Jobber, D. and Ellis-Chadwick, F., (2012) Principles and practice of marketing. 7th ed.
McGraw-Hill Higher Education.

Riley, J. (2018) Niche Markets and Mass Markets.tutor2u. Available at: https://www.tu-
tor2u.net/business/reference/niche-markets-and-mass-markets [Accessed 28 Mar. 2019].