Repositioning is defined as altering the position of a brand or product in the minds of the customer relative to the offerings of the competitive product. It is a very subtle and difficult process as the brand needs to change the target market’s understanding of the product.
The brand positioning of any brand is based on the target market, the benefits to the customers and the market situation. The brand positioning for any brand should be unique and should set apart a brand from its competitors.
Reason for Repositioning
The company decides for the repositioning of the brand due to low or declining sales because of increased competition in the market, loss of the customers, retarded benefits, innovation or better technology. The actual reason for declining sales could be faulty brand positioning, poor distribution or poor promotional strategy.
How to Reposition
When a company reposition its brand it needs to alter the expectations of all its stakeholders, including shareholders, investors and employees along with the customers. A firm can reposition a product line, brand or an entire organisation while sticking to the values of the firm. It requires strong determination and dedication of all the stakeholders to survive a volatile change in the brand’s positioning.
- Analyse the current status of the brand
The history of the brand and the how the brand has evolved needs to be analysed. Now the company needs to look at the sales, market share, competition, challenges, benefits, customer behaviour, industry performance etc.
- Consumer perception
A market research should be conducted to get the insights about the loyalty, purchase behaviour and growth rate of the company. The survey can be conducted through mailers, questionnaires, email or interviews.
- Developing the repositioning strategy
The process will develop objectives, brand’s mission, vision and values that it offers to the customers.