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
