Repositioning: Explanation, Market Strategy, Example
Repositioning is about perception adjustment. Repositioning focuses on changing what customers associate with the brand. Unless you are creating an innovative new product, you need to reposition your product in the customer’s mind from where it is to where you want it to. Maybe you are launching a new product, maybe you have come through a merger or an acquisition, maybe you have recognized that the market has evolved and moved beyond where you are today. All of these are great situations to reposition your company or brand to make it relevant to your customers. Again, repositioning is the best way to take what makes your brand different and to use that difference to stay one step ahead in the competition.
So, we have put together a simple list of six things you need to know when you’re repositioning your company.
1. No wire here: Here repositioning your company isn’t about needing a new website or needing a new ad campaign. You just need to understand the challenge you are facing and why you’re undergoing this repositioning project and that will set the stage for success down the road.
2. Know where you’re headed: It sounds deceptively simple but set some realistic measurable goals right from the start so that you can measure your success at the end.
3. Know your brand: We believe that brands can’t be dictated from the top down. Get input from every level of the company so that all of your employees are equally invested in the brand that you are eventually going to put forward to your customers. This way when your employees represent your brand, they’re truly embodying everything that makes you different and unique in the marketplace.
4. Know your audience: Remember a branding project isn’t about you it’s about your audience and the problems that you can solve for them. Keep in mind as you go through your positioning project exactly what you can do for your customers at every step.
5. Know your competition: Take a look at the marketplace understand what your competitors are saying and how they’re solving some of the same challenges that you’re facing. This is the best way that you can find a unique position for your company.
6. Know your niche: Know what sets you apart from the competition and here’s a hint it’s not a product feature or another bullet point it’s more than why you do, what you do and how you deliver those benefits to your customers.
What is Brand Repositioning?
Brand repositioning is when a company changes a brand’s status in the market place. This typically includes changes to the marketing mix such as product, place, price, and promotion. Repositioning is done to keep up with consumer wants and needs.
Also Read: Brand Essence: Explanation, Importance, Examples
Brand repositioning market strategy
1. Image repositioning:
This takes place when both the product and the target market remain unchanged. The aim is to change the image of the product in its current target market. For e.g. ADIDAS
2. Market repositioning:
Here the product remains unchanged but it is repositioned to appeal to a new market segment. For e.g. Lucia-carbonated glucose drink
3. Product repositioning:
In this situation, the product is materially changed, but still aimed to appeal to the existing target market.
4. Total repositioning:
This option involves a change of both the target market and accompanying product modifications.
For e.g. Soda has managed under Volkswagen’s ownership to reposition itself totally.
5. Raising a brand’s profitability: If s brand is in a static or declining market and accompany judges that the brand has finite potential. Then it may be prudent to force the maximum profitability out of the product. For this to achieve, companies may raise the prices, cost cutting and cutting the brand products.
Cinthol: Cinthol reminds us of the ad in which Vinod Khanna appeared riding a horse. Hrithik Roshan, Shahrukh Khan, Imran Khan were all the brand ambassadors of Cinthol. The brand portrayed a macho mankind of an image targeting male consumers. In 2013, the brand got repositioned and relaunched with the tagline- “Alive is Awesome.” Earlier, the positioning of the brand was for male consumers and in the popular segment. One is the premium segment, the other is the popular segment which is the economy, medium segment. So, they shifted the positioning from the popular segment to the premium segment.
They targeted the Indian youth, trendy, who travel, wants to explore the world, who are open to newness, experimentation, adventure. Earlier they targeted only male consumers that shifted to a more unisex consumer. In their ads also they show many females. They made all these changes and launched it completely in a new way. They also launched products in categories other than soaps like Shower gels, deodorants, Talcs & also changed the product formulation to suit the new target audience.
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