Why repositioning is used?
Repositioning is a strategic decision that companies make to adapt their products or brands to changing market conditions, evolving consumer preferences, or competitive pressures. It is often undertaken when a brand’s current positioning no longer aligns with market needs or when opportunities arise to better differentiate the product and improve its relevance. Repositioning can breathe new life into struggling brands, expand market reach, or align with broader organizational goals.
The reasons for repositioning vary widely, from addressing competitive threats to targeting new markets or adjusting to macroeconomic shifts. A successful repositioning effort often requires substantial investment, clear communication, and a cohesive strategy that aligns the marketing mix with the new positioning. While challenging, repositioning can deliver significant rewards when it helps the brand regain competitiveness, improve sales, and solidify its market presence.
The table below outlines common reasons why firms might consider repositioning. Each reason highlights a potential challenge or opportunity that can prompt a repositioning effort, demonstrating how businesses can adapt to maintain relevance and achieve sustainable growth in dynamic markets. These scenarios reflect the strategic value of repositioning in ensuring a brand stays aligned with its target market and competitive environment.
| Major Reason | Why Reposition? |
|---|---|
| Change in consumer needs | Over time (e.g., 10-20 years), changes in consumer needs and lifestyles, as younger generations emerge, may render the product’s key benefits less relevant to its target market. |
| New/strong competition | A product may face challenges from a new or stronger competitor in its positioning space, prompting repositioning to avoid direct competition and target a less saturated area. |
| Lack of perceived differentiation | A firm may find its product blending in with competitors due to too many points-of-parity and insufficient points-of-differentiation, necessitating repositioning to highlight unique advantages. |
| Under or over-positioned | Under-positioned products have vague or weak positioning, while over-positioned products are perceived as too narrowly defined. Both scenarios require repositioning to better align with market needs. (Learn more) |
| Change in macro environment | Significant shifts in the macro environment, such as economic downturns, technological advancements, or new regulations, may necessitate repositioning to adapt to these external changes. |
| Improved product | When a firm makes substantial improvements to a product, repositioning can highlight the added benefits and competitive advantages to better appeal to the market. |
| Poor product launch | If a product’s initial launch fails to meet expectations, repositioning and relaunching with a new strategy can help salvage its potential. |
| New target market | Repositioning may be necessary if the firm identifies a more attractive target market that better aligns with the product’s potential. |
| Broader/smaller target market | Firms may choose to either broaden or narrow their target market selection, requiring revised positioning to appeal to a new or adjusted audience size. |
| Clear market gap | Perceptual mapping may reveal a lucrative and uncontested market gap that is more profitable than the current positioning, prompting repositioning to fill that space. (Learn more) |
| Positioning drift | Poorly managed or unsupported positioning efforts may result in “positioning drift,” where the market perception strays from the intended message, necessitating repositioning to realign the brand. |
| Shift in cultural trends | Changes in cultural or social norms (e.g., sustainability, health consciousness) may require repositioning to better align the product with these evolving values and expectations. |
| Emerging market opportunities | Repositioning can help a brand capitalize on emerging trends or market segments, such as new technologies or growing consumer demand in specific categories. |
| Brand fatigue | A long-established brand may experience declining relevance due to overfamiliarity. Repositioning can refresh the brand and attract new interest by modernizing its image. |
| Reputation recovery | If a brand suffers from negative publicity or a damaged reputation, repositioning can help restore trust and reshape consumer perceptions. |
Examples of Good and Poor Repositioning
Below are some examples of brands that have successfully repositioned or struggled to achieve their objectives, mapped to the reasons for repositioning.
1. Change in Consumer Needs
- Good Example: Vinegar
Originally positioned as a food product, vinegar was repositioned as an effective, eco-friendly household cleaner. This strategic shift allowed the product to tap into sustainability trends and broaden its appeal. - Poor Example: Kmart
Kmart attempted to reposition itself as a low-cost, quality alternative to Walmart but failed to connect with evolving consumer expectations around convenience and value. Its inconsistent marketing mix and unclear messaging led to confusion and decline.
2. New/Strong Competition
- Good Example: Pepsi
Facing Coca-Cola’s dominance, Pepsi repositioned itself as “The Choice of a New Generation,” appealing to younger consumers with trend-focused marketing and differentiating itself as modern and youthful. - Poor Example: BlackBerry
BlackBerry failed to reposition effectively against the rise of iPhones and Android devices. Its attempts to market itself as a high-security smartphone option for professionals did not resonate broadly in an evolving consumer-driven market.
3. Lack of Perceived Differentiation
- Good Example: Domino’s Pizza
Domino’s addressed its lack of differentiation by improving its recipes and repositioning itself as a company focused on quality and transparency. Its “We Changed Everything” campaign helped rebuild trust and increase sales. - Poor Example: Yahoo!
Yahoo’s lack of clear differentiation in search and content services allowed competitors like Google to dominate. Attempts to reposition the brand lacked focus and failed to regain relevance.
4. Under or Over-Positioned
- Good Example: Old Spice
Once perceived as a dated brand for older men, Old Spice successfully repositioned itself with humorous, youth-oriented advertising. This broadened its appeal to a younger demographic without alienating its existing customer base. - Poor Example: Gap
Gap’s attempt to reposition as a premium fashion brand alienated its core customers while failing to attract new ones. A poorly received logo change symbolized the disconnect, forcing the brand to backtrack.
5. Change in Macro Environment
- Good Example: Netflix
Initially positioned as a DVD rental service, Netflix successfully repositioned itself as a streaming platform in response to technological advances and changing media consumption habits. This shift allowed it to dominate the digital entertainment market. - Poor Example: Kodak
Kodak failed to adapt to the digital photography revolution. While it eventually attempted to reposition itself as a digital imaging company, its delayed response allowed competitors to seize the market.
6. Improved Product
- Good Example: Apple iPod
Apple repositioned the iPod as more than a music player by integrating features like podcasts and iTunes. This strategy emphasized its multifunctionality and ecosystem integration, ensuring continued relevance. - Poor Example: Microsoft Zune
Despite product improvements, Microsoft’s Zune failed to reposition itself effectively against the iPod. Poor marketing and lack of differentiation left it struggling to gain market share.
7. Poor Product Launch
- Good Example: Taco Bell’s Doritos Locos Tacos
After initial skepticism about its unusual concept, Taco Bell repositioned the product as a fun, bold offering aligned with its brand identity, leading to massive success. - Poor Example: Crystal Pepsi
Pepsi launched Crystal Pepsi as a “clear” cola alternative but failed to communicate its benefits effectively. Misaligned messaging and consumer confusion led to its failure despite a repositioning attempt.
8. New Target Market
- Good Example: Barbie
Mattel repositioned Barbie to focus on diversity and empowerment, introducing dolls of different ethnicities, body types, and careers. This repositioning resonated with modern parents and children. - Poor Example: JCPenney
JCPenney tried to reposition itself to target a younger, more affluent audience but alienated its loyal, price-sensitive customers without winning over the new demographic.
9. Broader/Smaller Target Market
- Good Example: Nike
Originally focused on elite athletes, Nike broadened its target market to include everyday fitness enthusiasts, positioning itself as a brand for all levels of athleticism with campaigns like “Just Do It.” - Poor Example: Sears
Sears attempted to target a broader audience while diluting its original positioning as a department store for middle-income families, resulting in an identity crisis and declining sales.
10. Clear Market Gap
- Good Example: Tesla
Tesla identified a gap in the electric vehicle market for luxury, high-performance cars and repositioned EVs as aspirational rather than utilitarian, capturing significant market share. - Poor Example: Burger King’s Satisfries
Burger King introduced “Satisfries” to tap into the health-conscious market but failed to reposition effectively. The product confused consumers and didn’t align with the brand’s indulgent fast-food positioning.
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