The Difficulties of Successfully Repositioning

Repositioning a brand or product is a complex and resource-intensive endeavor that requires careful planning and execution. Unlike minor adjustments to marketing strategies, repositioning involves a fundamental shift in how a brand is perceived by its target market. This often entails significant changes to the marketing mix, as well as a comprehensive communication strategy to reshape consumer perceptions. While repositioning can yield substantial benefits, such as revitalizing a struggling brand or expanding into new markets, it is not without its challenges.

The difficulties of repositioning arise from the need to balance multiple factors, including retaining existing customers while appealing to new ones, countering competitive responses, and ensuring that all elements of the marketing mix align with the new positioning. Additionally, the process requires re-educating consumers, which can be particularly challenging for low-involvement products where consumers are less engaged. For established brands, overcoming entrenched perceptions can take years and substantial investment, making repositioning a high-risk but potentially high-reward strategy.

The table below highlights the key challenges associated with repositioning and offers insights into the considerations firms must address to execute a successful repositioning strategy. These challenges emphasize the importance of strategic planning, consistent messaging, and long-term alignment with the firm’s goals and market dynamics to ensure the repositioning effort delivers its intended results.

Challenge	Repositioning Considerations
Lose existing sales	If a product is repositioned, it moves away from its current positioning. A significant proportion of existing customers may no longer find the product suitable, leading to a potential loss in sales.
Change perception	Repositioning requires the target market to alter their understanding of the product. Consumers must forget their existing perceptions and learn new aspects, which can be a complex and time-consuming process.
Competition reaction	Repositioning can provoke a competitive response, with competitors attempting to disrupt the new message. They may highlight the repositioning as a sign of weakness or emphasize their own superior offerings.
Low-involvement purchases	Repositioning is particularly challenging for low-involvement products, as consumers are generally less engaged and disinterested in changing their perceptions. Educating them requires additional effort and investment.
Cost versus new brand	Repositioning is often expensive, involving product modifications and significant communication costs. Firms must weigh whether introducing a new brand or product might be a more cost-effective alternative (learn more).
Cost and time	Repositioning takes time to shift consumer perceptions, often spanning years. The costs associated with this prolonged process—both financial and resource-based—need to be evaluated against potential benefits.
Marketing mix support	Effective repositioning requires alignment across the marketing mix. Changes to the product, pricing, distribution, and promotional strategies are likely necessary to support the new positioning (read more).
Risk of alienation	Repositioning can alienate loyal customers if the new positioning moves too far from what they value in the brand. Careful planning is needed to retain existing customers while attracting new ones.
Internal resistance	Organizational inertia or resistance from stakeholders, employees, or management can slow down or undermine repositioning efforts. Building internal alignment is critical for success.
Message clarity	The repositioning message must be clear and consistent across all communication channels. A poorly articulated message can confuse the target audience and dilute the repositioning effort.
Long-term viability	Repositioning must align with long-term brand strategy and market trends. A misaligned or short-sighted repositioning can result in wasted resources and further positioning challenges in the future.

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Examples of Brands Facing Repositioning Challenges

Repositioning is fraught with challenges that have tripped up even the most established brands. Below are real-world examples of companies that faced key difficulties outlined in the table, illustrating the complexities and risks involved in repositioning.

1. Losing Existing Sales

Example: Tropicana (2010)
Tropicana attempted to reposition itself with a packaging redesign that removed its iconic orange-with-a-straw visual. The change alienated loyal customers who no longer recognized the product on shelves, leading to a 20% sales drop within weeks. The company quickly reverted to the original design, learning the hard way that drastic repositioning can result in the loss of core customers.

2. Changing Consumer Perceptions

Example: McDonald’s (2000s)
In the early 2000s, McDonald’s attempted to reposition itself as a healthier brand in response to rising concerns about fast food’s role in obesity. Despite adding salads and other healthy options to the menu, the brand struggled to overcome its entrenched image as a source of indulgent, high-calorie meals. While the effort made incremental progress, it highlighted the challenge of changing deeply held consumer perceptions.

3. Competitive Reaction

Example: Pepsi’s Repositioning vs. Coca-Cola
Pepsi’s “Pepsi Refresh” campaign in 2010 attempted to reposition the brand as a socially conscious alternative to Coca-Cola by investing in community projects instead of Super Bowl ads. However, Coca-Cola leveraged the moment to double down on its traditional brand strengths, highlighting its heritage and refreshing appeal. Pepsi’s market share dropped as the repositioning failed to resonate, demonstrating how competitors can exploit repositioning efforts to their advantage.

4. Low-Involvement Purchases

Example: Colgate Kitchen Entrees
Colgate, a brand synonymous with oral hygiene, attempted to reposition itself in the frozen food market with “Colgate Kitchen Entrees.” Consumers found the association between toothpaste and food unappealing, making it difficult to re-educate them about the new product line. This example highlights how low-involvement products with strong category associations can make repositioning especially challenging.

5. Cost vs. New Brand

Example: Coca-Cola’s New Coke (1985)
Coca-Cola introduced “New Coke” in an effort to reposition itself as a modern, sweeter-tasting alternative to Pepsi. The move was met with widespread backlash, as loyal customers rejected the new formula. Coca-Cola ultimately brought back the original formula as “Coca-Cola Classic.” This misstep illustrates how repositioning efforts can be costly and alienate existing customers, raising questions about whether launching a new brand might have been a better approach.

6. Cost and Time

Example: JCPenney’s Failed Repositioning
JCPenney’s ambitious repositioning under CEO Ron Johnson aimed to transition the retailer into a more upscale, Apple Store-inspired brand. The effort required overhauling stores, pricing, and marketing strategies, resulting in a significant investment. However, the change alienated JCPenney’s core price-sensitive customers, and the repositioning failed before the vision could gain traction, illustrating the challenges of time and cost in such efforts.

7. Marketing Mix Support

Example: Ford Edsel (1957)
Ford’s Edsel was intended to fill a gap between its mainstream and luxury brands, but its marketing mix failed to align with the intended positioning. Poor product design, confusing pricing, and ineffective promotions contradicted the positioning as a sophisticated yet affordable car. The result was one of the most notable failures in automotive history, emphasizing the importance of aligning the marketing mix with repositioning goals.

8. Risk of Alienation

Example: Gap’s Logo Redesign (2010)
Gap’s attempt to modernize its logo as part of a repositioning effort led to a consumer backlash, with loyal customers rejecting the new design as unrecognizable and unnecessary. The rapid abandonment of the redesign after six days highlighted the risk of alienating loyal customers during repositioning.

9. Internal Resistance

Example: Kodak’s Shift to Digital
Kodak’s internal resistance to fully embracing digital photography delayed its repositioning efforts. The company’s entrenched focus on film products created friction in adapting to a digital-first strategy, ultimately allowing competitors like Canon and Sony to dominate the market. This illustrates how internal alignment is crucial for successful repositioning.

10. Message Clarity

Example: Starbucks’ Expansion into Alcohol
Starbucks tested offering alcohol in select stores as part of an effort to reposition itself as an evening destination. However, the move created confusion among consumers about the brand’s core identity as a coffee-focused establishment. The lack of clear messaging about this new direction contributed to the limited success of the initiative.

These examples demonstrate that repositioning is a double-edged sword. While it offers significant opportunities for growth and renewal, missteps in strategy, execution, or communication can lead to costly failures and long-term damage to brand equity. Firms must carefully evaluate the risks and challenges before embarking on repositioning efforts.

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