In the classification of new products, product repositioning is considered to be a new product task. There are a numerous challenges and benefits associated with product repositioning as discussed in the following article. Please refer to a separate article for the challenges of repositioning.
What is product repositioning?
Product repositioning is changing the overall positioning (that is, key product benefits, product use or competitive advantages) or changing the target market for the product. In some cases the product repositioning may coexist with a product improvement, or other times an existing product without change (except for packaging perhaps), will have a new image or target market constructed for it.
Potential benefits of product repositioning
- Stronger competitive position
- Improved sales
- Clearer target market
- Better aligned to current market needs
- Potential media attention
Stronger competitive position
One of the main goals of product repositioning is to improve the brand’s perceived positioned relative to competition. Therefore, a successful repositioning of a product should create an ongoing market advantage.
Probably the other main goal of repositioning is to generate additional sales through a more relevant offering, which is more effectively communicated, perhaps to a different target market.
Clearer target market
In some cases, product repositioning is undertaken to clarify or to change the brand’s target market. Repositioning is generally undertaken for products that are not performing to expectations. Sometimes the problem is that the initial target market was not appropriately defined, wrongly defined, or the needs of that target market and evolved.
Better aligned to current market needs
Repositioning allows the company to warrant effectively communicate the key benefits – and the current benefits – of a product. This will both help re-energize the product and help connect it to more contemporary consumer needs.
Potential media attention
In some cases, because repositioning products requires significant promotional support to be successful, it is likely that some well-known products/brands will receive a reasonable amount of media attention – which will help communicate and reinforce the product’s repositioning goals.