Brand Repositioning

As customer tastes and preferences change, some brands will need to go through a repositioning exercise. This will involve changing the target market, or changing the product features and benefits, or sometimes both. Using these two variables, we can analyse 4 different strategies for repositioning:

Image repositioning – the first option is to keep both the target market and the product unchanged, but to change the image of the brand or product. In this scenario marketers work on improving the image and perception of the product by its customers and not on its features.

Product repositioning – with this strategy, the product is changes while the target market remains the same. This may be as a result of technological advancements that make the original product less desirable.

Intangible repositioning – this strategy requires the company to target a different market with the same product. When marketers discover that their product appeals to a wider range of customers than the original market segment, this strategy will apply.

Tangible repositioning – the most drastic and risky pivot in an organisational positioning strategy is when both product and target market are changed. When a new product no longer appeals to the existing market, then tangible repositioning allows the company to appeal to new markets where this new product will be received better.