Repositioning
This article covers meaning, importance & steps of Repositioning from marketing perspective.
What is Repositioning?
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. Repositioning 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.
Importance of Repositioning
Positioning is the creation of an image in the mind of the consumer which can be based on utility, benefit, emotional connect etc. A 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. Repositioning involves understanding the market, product, competition, customer etc again and communicating a new positioning statement for the product & service.
How to Reposition a Brand
When a company reposition's its brand it needs to alter the expectations of all its stakeholders, including shareholders, investors and employees along with the customers. A firm can undertake repositioning 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.
Steps for Repositioning
Positioning is done using the positioning process and a similar process can be used to reposition the brand in the market. Some steps are as follows:
1. 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.
2. 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.
3. Developing the repositioning strategy
The process will develop objectives, brand’s mission, vision and values that it offers to the customers.
Hence, this concludes the definition of Repositioning along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
Continue Reading:
