Feb 202015
 

What is repositioning?

Repositioning is the task of implementing a major change the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products.

Why repositioning is used?

  • Changes in consumer needs and lifestyles may reduce the relevancy of the product
  • New or stronger competition in their product’s positioning space
  • Lack of perceived differentiation (insufficient points-of-difference)
  • Under positioned product (positioning is too vague or weak)
  • Over positioned product (product is too narrowly defined)
  • Change in macro environment (economic conditions, technology, legislation)
  • To support an improved product
  • To correct a poor product launch
  • If a revised target market is selected
  • If the target market definition is being broaden or narrowed
  • To pursue a significant and uncontested market gap
  • If positioning drift has occurred

Challenges and risks in repositioning

  • Will lose existing product sales
  • Difficult to change perceptions
  • Competitors will react
  • Consumers are ‘disinterested’ in low-involvement purchases
  • Can be cost-prohibitive (a new brand might be a better solution)
  • Takes time and money

Alternative options to repositioning

  • Improve product
  • Launch new product (as a replacement)
  • Withdraw product (no replacement)
  • Do nothing; milk product
  • Improve other aspects of the marketing mix
  • Increase promotional spend
  • Discount (sales promotion) product